Question 1

Which of the following is a benefit of using a computerized accounting information system?

Accepted Answer

A) The software can accurately measure the intrinsic value of the firm using the built-in simulation techniques. 
B) There is no need to review the financial statements for accuracy. 
C) The software is easy to use and thus no training or financial statement review is necessary. 
D) The software automatically transfers the amounts from the general ledger to the financial statements. 
A) The software can accurately measure the intrinsic value of the firm using the built-in simulation techniques. 
B) There is no need to review the financial statements for accuracy. 
C) The software is easy to use and thus no training or financial statement review is necessary. 
D) The software automatically transfers the amounts from the general ledger to the financial statements.

Question 2

In a perpetual inventory system,when cash sales are recorded,________.

Accepted Answer

A) merchandise inventory decreases and cost of goods sold decreases 
B) sales revenue increases and cash decreases 
C) sales revenue increases and cost of goods sold decreases 
D) merchandise inventory decreases and cost of goods sold increases 
A) merchandise inventory decreases and cost of goods sold decreases 
B) sales revenue increases and cash decreases 
C) sales revenue increases and cost of goods sold decreases 
D) merchandise inventory decreases and cost of goods sold increases

Question 3

The sales journal is used for all sales of merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 4

In a perpetual inventory system,the credit columns of a typical cash payments journal are ________.

Accepted Answer

A) Merchandise Inventory column and Cash column 
B) Other Accounts column and Accounts Payable column 
C) Merchandise Inventory column and Accounts Payable column 
D) Other Accounts column and Cash column 
A) Merchandise Inventory column and Cash column 
B) Other Accounts column and Accounts Payable column 
C) Merchandise Inventory column and Accounts Payable column 
D) Other Accounts column and Cash column

Question 5

Entries in the cash payments journal are posted daily to the accounts payable subsidiary ledger and monthly to the general ledger.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an entry-level software package for accounting information systems?

Accepted Answer

A) Microsoft Word 
B) QuickBooks 
C) Cloud Computing 
D) Oracle 
A) Microsoft Word 
B) QuickBooks 
C) Cloud Computing 
D) Oracle

Question 7

A computerized system uses software to process transactions.Thus employees are no longer required to manually journalize and post transactions to the accounts.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an input device in an accounting information system?

Accepted Answer

A) keyboard 
B) Internet protocol 
C) printer 
D) router 
A) keyboard 
B) Internet protocol 
C) printer 
D) router

Question 9

When using a computerized accounting information system,transactions do not need to be recorded in a debit and credit format.

Accepted Answer

A) True 
 B)False

Question 10

In a computerized accounting information system,all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following will be recorded in the general journal when using a manual accounting information system?

Accepted Answer

A) adjusting and closing entries 
B) payment of accounts payable 
C) purchase of merchandise inventory on account 
D) sale of merchandise inventory on account 
A) adjusting and closing entries 
B) payment of accounts payable 
C) purchase of merchandise inventory on account 
D) sale of merchandise inventory on account

Question 12

The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 13

On May 31,a retail firm pays rent of $2700 for the month of May.When this transaction is recorded in the cash payments journal,________.

Accepted Answer

A) assets and equity will increase by $2700 
B) assets and liabilities will decrease by $2700 
C) assets and equity will decrease by $2700 
D) liabilities and equity will increase by $2700 
A) assets and equity will increase by $2700 
B) assets and liabilities will decrease by $2700 
C) assets and equity will decrease by $2700 
D) liabilities and equity will increase by $2700

Question 14

Which of the following will be recorded in the Other Accounts CR column of the cash receipts journal?

Accepted Answer

A) cash sales 
B) receipt of interest revenue 
C) receipt of accounts receivable 
D) sales discounts forfeited 
A) cash sales 
B) receipt of interest revenue 
C) receipt of accounts receivable 
D) sales discounts forfeited

Question 15

Which of the following is not typically shown as a separate column in a cash receipts journal that uses the perpetual inventory system?

Accepted Answer

A) Interest Revenue CR column 
B) Cost of Goods Sold DR,Merchandise Inventory CR column 
C) Sales Revenue CR column 
D) Sales Discounts Forfeited CR column 
A) Interest Revenue CR column 
B) Cost of Goods Sold DR,Merchandise Inventory CR column 
C) Sales Revenue CR column 
D) Sales Discounts Forfeited CR column

Question 16

The cash payments journal has two debit columns - one for Accounts Payable and one for Merchandise Inventory.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of posting entries from a cash payments journal?

Accepted Answer

A) Entries in the cash payments journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger. 
B) The postings of accounts payable are credits and increase the balance in the individual accounts payable account. 
C) After posting the payment of accounts payable,a check mark is entered in the cash payments journal and the posting reference is printed in the subsidiary ledger. 
D) At the end of the month,each column is totaled and the totals,including the Other Accounts DR column,are posted to the specific general ledger accounts. 
A) Entries in the cash payments journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger. 
B) The postings of accounts payable are credits and increase the balance in the individual accounts payable account. 
C) After posting the payment of accounts payable,a check mark is entered in the cash payments journal and the posting reference is printed in the subsidiary ledger. 
D) At the end of the month,each column is totaled and the totals,including the Other Accounts DR column,are posted to the specific general ledger accounts.

Question 18

In an accounting information system,outputs are the reports used for decision making,which include the financial statements.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an output device in an accounting information system?

Accepted Answer

A) keyboard 
B) Internet protocol 
C) printer 
D) mouse 
A) keyboard 
B) Internet protocol 
C) printer 
D) mouse

Which of the following is a benefit of using a computerized accounting information system?

In a perpetual inventory system,when cash sales are recorded,________.

The sales journal is used for all sales of merchandise inventory.

In a perpetual inventory system,the credit columns of a typical cash payments journal are ________.

Entries in the cash payments journal are posted daily to the accounts payable subsidiary ledger and monthly to the general ledger.

Which of the following is an entry-level software package for accounting information systems?

A computerized system uses software to process transactions.Thus employees are no longer required to manually journalize and post transactions to the accounts.

Which of the following is an input device in an accounting information system?

When using a computerized accounting information system,transactions do not need to be recorded in a debit and credit format.

In a computerized accounting information system,all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses.

Which of the following will be recorded in the general journal when using a manual accounting information system?

The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts in the accounts receivable subsidiary ledger.

On May 31,a retail firm pays rent of $2700 for the month of May.When this transaction is recorded in the cash payments journal,________.

Which of the following will be recorded in the Other Accounts CR column of the cash receipts journal?

Which of the following is not typically shown as a separate column in a cash receipts journal that uses the perpetual inventory system?

The cash payments journal has two debit columns - one for Accounts Payable and one for Merchandise Inventory.

Which of the following is true of posting entries from a cash payments journal?

In an accounting information system,outputs are the reports used for decision making,which include the financial statements.

Which of the following is an output device in an accounting information 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 a benefit of using a computerized accounting information system?

In a perpetual inventory system,when cash sales are recorded,________.

The sales journal is used for all sales of merchandise inventory.

In a perpetual inventory system,the credit columns of a typical cash payments journal are ________.

Entries in the cash payments journal are posted daily to the accounts payable subsidiary ledger and monthly to the general ledger.

Which of the following is an entry-level software package for accounting information systems?

A computerized system uses software to process transactions.Thus employees are no longer required to manually journalize and post transactions to the accounts.

Which of the following is an input device in an accounting information system?

When using a computerized accounting information system,transactions do not need to be recorded in a debit and credit format.

In a computerized accounting information system,all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses.

Which of the following will be recorded in the general journal when using a manual accounting information system?

The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts in the accounts receivable subsidiary ledger.

On May 31,a retail firm pays rent of $2700 for the month of May.When this transaction is recorded in the cash payments journal,________.

Which of the following will be recorded in the Other Accounts CR column of the cash receipts journal?

Which of the following is not typically shown as a separate column in a cash receipts journal that uses the perpetual inventory system?

The cash payments journal has two debit columns - one for Accounts Payable and one for Merchandise Inventory.

Which of the following is true of posting entries from a cash payments journal?

In an accounting information system,outputs are the reports used for decision making,which include the financial statements.

Which of the following is an output device in an accounting information 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