Question 1

Which of the following is an advantage of enterprise resource planning (ERP)systems?

Accepted Answer

A) It is inexpensive to implement. 
B) It provides financial benefits only to small corporations. 
C) It replaces separate software systems,such as sales and payroll. 
D) Its implementation requires a small commitment of time and people. 
A) It is inexpensive to implement. 
B) It provides financial benefits only to small corporations. 
C) It replaces separate software systems,such as sales and payroll. 
D) Its implementation requires a small commitment of time and people.

Question 2

Silver Corporation had the following transactions:
 $$\begin{array} { | l | l | } 
\hline \text{Jan 4} & \text { Issued check no. } 430 \text { to purchase equipment for cash, } \$ 2,200 . \
\hline 9 & \text { Purchased merchandise inventory for cash, } \$ 400 , \text { issuing check no. } 431 . \
\hline 19 & \text { Paid Kale Co. amount owed, } \$ 1,025 , \text { less } \$ 60 \text { discount. Issued check no. } 432 . \
\hline 27& \text { Issued check no. } 433 \text { to pay utilities, } \$ 210 . \text { The bill was just received, and there is no } \
&\text{liability recorded}\
\hline
\end{array}$$ Use the following cash payments journal to record the preceding transactions.The company uses the perpetual inventory system.
Cash Payments Journal$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~$Page 8
$\begin{array}{|r|c|l|r|r|r|r|r|}
\hline \textbf { Date } & \begin{array}{c}
\textbf { Ck. } \
\textbf { No. }
\end{array} & \textbf { Account Debited } & \begin{array}{c}
\textbf { Post. } \
\textbf { Ref. }
\end{array} & \begin{array}{c}
\textbf { Other } \
\textbf { Accounts } \
\textbf { DR }
\end{array} & \begin{array}{c}
\textbf { Accounts } \
\textbf{ Payable } \
\textbf { DR }
\end{array} & \begin{array}{l}
\textbf { Merchandise } \
\textbf { Inventory CR }
\end{array} & \textbf { Cash CR } \
\hline \
\hline  \
\hline\
\hline\
\hline
\end{array}$

Accepted Answer

Cash Payme

Question 3

Which of the following is true of an accounts receivable subsidiary ledger?

Accepted Answer

A) It does not include a receivable account for each customer,but includes a cumulative account for all customers. 
B) It contains information about the amount each customer purchased on credit,but excludes the customer name. 
C) The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts receivable balance in the general ledger. 
D) Companies keep an accounts payable subsidiary ledger that is entirely different from the accounts receivable subsidiary ledger. 
A) It does not include a receivable account for each customer,but includes a cumulative account for all customers. 
B) It contains information about the amount each customer purchased on credit,but excludes the customer name. 
C) The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts receivable balance in the general ledger. 
D) Companies keep an accounts payable subsidiary ledger that is entirely different from the accounts receivable subsidiary ledger.

Question 4

When using QuickBooks,the software automatically transfers the amounts from the general ledger to Excel.The accountant can then prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 5

List and briefly discuss the three basic components of an accounting information system.

Accepted Answer

1.Source documents and input devices: So

Question 6

The purchase of three computers for the sales staff,on account,is recorded in the ________ journal.

Accepted Answer

A) general 
B) purchases 
C) cash payments 
D) equipment 
A) general 
B) purchases 
C) cash payments 
D) equipment

Question 7

Bronze Corporation had the following transactions:
 $\begin{array}{|l|l|}
\hline \text { Jun. } 6 & \text { Sold merchandise inventory for cash, } \$ 2,200 . \text { Cost of goods, } \$ 1,400 \
\hline 9 & \text { Collected interest revenue of } \$ 2,350 . \
\hline 15 & \text { Received cash from Jim Rhodes, } \$ 1,100, \text { on account. There was no discount. } \
\hline27&\text { Received } \$ 5,400 \text { from Steve McNeil representing } \$ 5,292 \text { he owed plus } \$ 108 \text { sales discount }\&\text { forfeited. }\
\hline
\end{array}$ Use the following cash receipts journal to record the preceding transactions.The company uses the perpetual inventory system.
Cash Receipts Journal$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~$Page 3
$\begin{array}{|c|c|c|c|c|c|c|c|c|}
\hline \textbf{ Date } & \begin{array}{l}
\textbf{ Accounts } \
\textbf{ Credited }
\end{array} & \begin{array}{l}
\textbf{ Post } \
\textbf{ Ref. }
\end{array} & \begin{array}{l}
\textbf{ Cash } \
\textbf{ DR }
\end{array} & \begin{array}{c}
\textbf{ Accounts } \
\textbf{ Receivable } \
\textbf{ CR }
\end{array} & \begin{array}{c}
\textbf{ Sales } \
\textbf{ Revenue } \
\textbf{ CR }
\end{array} & \begin{array}{c}
\textbf{ Sales } \
\textbf{ Discounts } \
\textbf{ Forfeited } \
\textbf{ CR } \
\end{array} & \begin{array}{c}
\textbf{ Other } \
\textbf{ Accounts } \
\textbf{ CR }
\end{array} & \begin{array}{c}
\textbf{ Cost of Goods } \
\textbf{ Sold DR } \
\textbf{ Merchandise } \
\textbf{ Inventory CR } \
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}$

Accepted Answer

Cash Recei

Question 8

Which of the following is true of data processing and storage in a computerized information system?

Accepted Answer

A) In a computerized accounting information system,processing includes manually journalizing transactions and posting to the accounts. 
B) In a computerized accounting information system,there will be a main centralized computer where data is stored,which cannot be accessed from any other computers. 
C) In both computerized and manual systems,all data are contained in paper documents and are often stored in filing cabinets and off-site document warehouses. 
D) In a computerized accounting information system,companies are spending increasingly large amounts of cash to ensure that their data and information are secure. 
A) In a computerized accounting information system,processing includes manually journalizing transactions and posting to the accounts. 
B) In a computerized accounting information system,there will be a main centralized computer where data is stored,which cannot be accessed from any other computers. 
C) In both computerized and manual systems,all data are contained in paper documents and are often stored in filing cabinets and off-site document warehouses. 
D) In a computerized accounting information system,companies are spending increasingly large amounts of cash to ensure that their data and information are secure.

Question 9

Copper Corporation had the following transactions:
 $\begin{array}{|l|l|}\hline
\text{Mar. 3} &\text{Sold merchandise inventory on account to L. Navarro, issuing invoice no. 501 for \$ 1,100 (cost, \$ 890)}\\hline
22&\text{Purchased merchandise inventory on credit terms of 3/10 , n/30 from Circus Co., \$800.}\\hline
27&\text{Returned damaged merchandise inventory to Circus Co., issuing a debit memo for \$800.}\
31&\text{Recorded March depreciation of \$ 2,400.}\\hline
\end{array}$ Journalize the above transactions that should be recorded in the general journal.If a transaction should not be recorded in the general journal,identify the special journal that should be used.Assume the company uses the perpetual inventory system.

Accepted Answer

General Journal
 Mar 27 Accounts Payable

Question 10

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a column in a purchases journal?

Accepted Answer

A) Cost of Goods Sold CR 
B) Accounts Payable CR 
C) Sales Revenue DR 
D) Other Accounts CR 
A) Cost of Goods Sold CR 
B) Accounts Payable CR 
C) Sales Revenue DR 
D) Other Accounts CR

Question 12

For each of the following business transactions,list two examples of related accounting information system (AIS)activities:
 $$\begin{array} { | l | l | } 
\hline \text { Business Transactions } & \text { Accounting Information System Activities } \
\hline \text { Sell merchandise inventory } & \
\hline \text { Purchase of goods or } & \
\text { services } & \
\hline \text { Payroll } & \
\hline
\end{array}$$

Accepted Answer

None

Question 13

The ________ is a set of programs or instructions that drive the computer to perform the work desired.

Accepted Answer

A) network 
B) hardware 
C) software 
D) router 
A) network 
B) hardware 
C) software 
D) router

Question 14

If there is cash involved in a business transaction,the transaction should be recorded in either the ________.

Accepted Answer

A) cash payments journal or cash receipts journal 
B) cash payments journal or general journal 
C) cash payments journal or cash receipts journal and in general journal 
D) sales journal or purchases journal 
A) cash payments journal or cash receipts journal 
B) cash payments journal or general journal 
C) cash payments journal or cash receipts journal and in general journal 
D) sales journal or purchases journal

Question 15

Which of the following is an example of a source document in a computerized accounting information system?

Accepted Answer

A) purchase invoices 
B) balance sheet 
C) cash payments journal 
D) income statement 
A) purchase invoices 
B) balance sheet 
C) cash payments journal 
D) income statement

Question 16

An accounting information system is said to have good flexibility,if it ________.

Accepted Answer

A) works smoothly with the business's employees and organizational structure 
B) safeguards a business's assets and reduces the likelihood of fraud and errors 
C) provides information that will improve decision making and reduce uncertainty 
D) accommodates changes in the business over time 
A) works smoothly with the business's employees and organizational structure 
B) safeguards a business's assets and reduces the likelihood of fraud and errors 
C) provides information that will improve decision making and reduce uncertainty 
D) accommodates changes in the business over time

Question 17

A disadvantage of a typical enterprise resource planning system is that it cannot be offered through cloud computing.

Accepted Answer

A) True 
 B)False

Question 18

The purchases journal of a business that uses the periodic inventory system will include a column titled ________.

Accepted Answer

A) Cost of Goods Sold DR 
B) Purchases DR 
C) Accounts Payable DR 
D) Merchandise Inventory DR 
A) Cost of Goods Sold DR 
B) Purchases DR 
C) Accounts Payable DR 
D) Merchandise Inventory DR

Question 19

The cash receipts journal is a special journal used to record business transactions involving cash receipts and credit sales.

Accepted Answer

A) True 
 B)False

Question 20

A business must invest only in an accounting information system in which the benefits received outweigh the cost of the system.

Accepted Answer

A) True 
 B)False

Which of the following is an advantage of enterprise resource planning (ERP)systems?

Which of the following is true of an accounts receivable subsidiary ledger?

When using QuickBooks,the software automatically transfers the amounts from the general ledger to Excel.The accountant can then prepare the financial statements.

List and briefly discuss the three basic components of an accounting information system.

The purchase of three computers for the sales staff,on account,is recorded in the ________ journal.

Which of the following is true of data processing and storage in a computerized information system?

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

Which of the following is a column in a purchases journal?

For each of the following business transactions,list two examples of related accounting information system (AIS)activities: Business Transactions Accounting Information System Activities Sell merchandise inventory Purchase of goods or services Payroll

The ________ is a set of programs or instructions that drive the computer to perform the work desired.

If there is cash involved in a business transaction,the transaction should be recorded in either the ________.

Which of the following is an example of a source document in a computerized accounting information system?

An accounting information system is said to have good flexibility,if it ________.

A disadvantage of a typical enterprise resource planning system is that it cannot be offered through cloud computing.

The purchases journal of a business that uses the periodic inventory system will include a column titled ________.

The cash receipts journal is a special journal used to record business transactions involving cash receipts and credit sales.

A business must invest only in an accounting information system in which the benefits received outweigh the cost of the system.

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 15: Accounting Information Systems

Which of the following is an advantage of enterprise resource planning (ERP)systems?

Which of the following is true of an accounts receivable subsidiary ledger?

When using QuickBooks,the software automatically transfers the amounts from the general ledger to Excel.The accountant can then prepare the financial statements.

List and briefly discuss the three basic components of an accounting information system.

The purchase of three computers for the sales staff,on account,is recorded in the ________ journal.

Which of the following is true of data processing and storage in a computerized information system?

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

Which of the following is a column in a purchases journal?

For each of the following business transactions,list two examples of related accounting information system (AIS)activities: Business Transactions Accounting Information System Activities Sell merchandise inventory Purchase of goods or services Payroll

The ________ is a set of programs or instructions that drive the computer to perform the work desired.

If there is cash involved in a business transaction,the transaction should be recorded in either the ________.

Which of the following is an example of a source document in a computerized accounting information system?

An accounting information system is said to have good flexibility,if it ________.

A disadvantage of a typical enterprise resource planning system is that it cannot be offered through cloud computing.

The purchases journal of a business that uses the periodic inventory system will include a column titled ________.

The cash receipts journal is a special journal used to record business transactions involving cash receipts and credit sales.

A business must invest only in an accounting information system in which the benefits received outweigh the cost of the system.

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters