Question 1

Tangent Corporation makes a $1,200 purchase of merchandise inventory on account.This transaction will be recorded in the ________.

Accepted Answer

A) cash payments journal 
B) sales journal 
C) cash receipts journal 
D) purchases journal 
A) cash payments journal 
B) sales journal 
C) cash receipts journal 
D) purchases journal D

Question 2

Which of the following is true of a purchases journal?

Accepted Answer

A) In a purchase journal,the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR for a periodic inventory system. 
B) Cash purchases are recorded in the purchases journal. 
C) A purchases journal is not used for a perpetual inventory system. 
D) In a purchases journal,the Other Accounts DR columns are used for purchases on account of items other than merchandise inventory and office supplies. 
A) In a purchase journal,the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR for a periodic inventory system. 
B) Cash purchases are recorded in the purchases journal. 
C) A purchases journal is not used for a perpetual inventory system. 
D) In a purchases journal,the Other Accounts DR columns are used for purchases on account of items other than merchandise inventory and office supplies. D

Question 3

Deal Corporation sells a product for $500 on account to Liza Masters.This transaction will be recorded in the ________.

Accepted Answer

A) cash payments journal 
B) sales journal 
C) cash receipts journal 
D) purchase journal 
A) cash payments journal 
B) sales journal 
C) cash receipts journal 
D) purchase journal B

Question 4

A cash payments journal is a special journal used to record ________.

Accepted Answer

A) only the cash payments by currency 
B) the net of the cash payments and cash receipts by currency 
C) cash payments by check and currency 
D) the net of cash payments and cash receipts by check and currency 
A) only the cash payments by currency 
B) the net of the cash payments and cash receipts by currency 
C) cash payments by check and currency 
D) the net of cash payments and cash receipts by check and currency

Question 5

An automobile company purchases spark plugs,on account,for the production of its vehicles.When using a manual accounting information system,the company will record this transaction in the ________.

Accepted Answer

A) purchases journal 
B) general journal 
C) cash payments journal 
D) sales journal 
A) purchases journal 
B) general journal 
C) cash payments journal 
D) sales journal

Question 6

Every transaction recorded in the cash receipt journal includes a ________.

Accepted Answer

A) credit to cash 
B) debit to Accounts Receivable 
C) credit to Accounts Receivable 
D) debit to cash 
A) credit to cash 
B) debit to Accounts Receivable 
C) credit to Accounts Receivable 
D) debit to cash

Question 7

If there is no cash involved in a particular business transaction,then the transaction should be recorded in ________.

Accepted Answer

A) either cash receipts journal or general journal 
B) either sales journal or purchases journal 
C) only general journal 
D) sales journal,purchases journal,or general journal 
A) either cash receipts journal or general journal 
B) either sales journal or purchases journal 
C) only general journal 
D) sales journal,purchases journal,or general journal

Question 8

Generally,all transactions are recorded in a special journal as well as the general journal.

Accepted Answer

A) True 
 B)False

Question 9

The purchases journal is a special journal used to record ________.

Accepted Answer

A) cash receipts,interest rate payments,and purchases 
B) credit sales of assets that occur infrequently such as buildings,property,and equipment 
C) credit sales of inventory 
D) merchandise inventory,office supplies,and other assets purchased on account 
A) cash receipts,interest rate payments,and purchases 
B) credit sales of assets that occur infrequently such as buildings,property,and equipment 
C) credit sales of inventory 
D) merchandise inventory,office supplies,and other assets purchased on account

Question 10

The main computer where data is stored,which can be accessed from many different computers,is known as software.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of posting entries from a cash payment journal to a general ledger?

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,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,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 12

Which of the following is true of a sales journal prepared under the perpetual inventory system?

Accepted Answer

A) It includes a Cost of Goods Sold DR,Merchandise Inventory CR column. 
B) It records both cash and credit sales transactions. 
C) All transactions recorded in a sales journal are also entered in the general journal. 
D) It cannot be used with a perpetual inventory system. 
A) It includes a Cost of Goods Sold DR,Merchandise Inventory CR column. 
B) It records both cash and credit sales transactions. 
C) All transactions recorded in a sales journal are also entered in the general journal. 
D) It cannot be used with a perpetual inventory system.

Question 13

A computerized system uses software to process transactions and it allows businesses to process transactions without actually requiring employees to journalize and post to the accounts.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Which of the following transactions is recorded in the "Receive Payments" function of QuickBooks?

Accepted Answer

A) electricity bill payments 
B) merchandise inventory sold on account to a customer 
C) products sold for cash to a customer 
D) coupon payments to the bondholders 
A) electricity bill payments 
B) merchandise inventory sold on account to a customer 
C) products sold for cash to a customer 
D) coupon payments to the bondholders

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Deal Corporation sells a product for $500 cash to Liza Masters.This transaction will be recorded in the ________.

Accepted Answer

A) cash payments journal 
B) sales journal 
C) cash receipts journal 
D) purchase journal 
A) cash payments journal 
B) sales journal 
C) cash receipts journal 
D) purchase journal

Question 18

A general ledger is an accounting journal designed to record one specific type of transaction.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of posting entries from a purchases journal to the general ledger?

Accepted Answer

A) The posting references are not mentioned in the subsidiary ledger. 
B) The Accounts Payable balance in the general ledger should be less than the sum of the individual vendor balances in the subsidiary ledger. 
C) The amounts in the Other Accounts DR column are posted individually to the specific accounts. 
D) It is done on a daily basis for all the accounts. 
A) The posting references are not mentioned in the subsidiary ledger. 
B) The Accounts Payable balance in the general ledger should be less than the sum of the individual vendor balances in the subsidiary ledger. 
C) The amounts in the Other Accounts DR column are posted individually to the specific accounts. 
D) It is done on a daily basis for all the accounts.

Question 20

Which of the following is not included in the purchases journal?

Accepted Answer

A) purchases of Merchandise Inventory for cash 
B) purchase of Merchandise Inventory on account 
C) purchase of Office Supplies on credit 
D) purchase of Capital Assets on account 
A) purchases of Merchandise Inventory for cash 
B) purchase of Merchandise Inventory on account 
C) purchase of Office Supplies on credit 
D) purchase of Capital Assets on account

Exam 27: Accounting Information Systems

Tangent Corporation makes a $1,200 purchase of merchandise inventory on account.This transaction will be recorded in the ________.

Which of the following is true of a purchases journal?

Deal Corporation sells a product for $500 on account to Liza Masters.This transaction will be recorded in the ________.

A cash payments journal is a special journal used to record ________.

An automobile company purchases spark plugs,on account,for the production of its vehicles.When using a manual accounting information system,the company will record this transaction in the ________.

Every transaction recorded in the cash receipt journal includes a ________.

If there is no cash involved in a particular business transaction,then the transaction should be recorded in ________.

Generally,all transactions are recorded in a special journal as well as the general journal.

The purchases journal is a special journal used to record ________.

The main computer where data is stored,which can be accessed from many different computers,is known as software.

Which of the following is true of posting entries from a cash payment journal to a general ledger?

Which of the following is true of a sales journal prepared under the perpetual inventory system?

A computerized system uses software to process transactions and it allows businesses to process transactions without actually requiring employees to journalize and post to the accounts.

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

Which of the following transactions is recorded in the "Receive Payments" function of QuickBooks?

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

Deal Corporation sells a product for $500 cash to Liza Masters.This transaction will be recorded in the ________.

A general ledger is an accounting journal designed to record one specific type of transaction.

Which of the following is true of posting entries from a purchases journal to the general ledger?

Which of the following is not included in the purchases journal?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

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

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