Question 1

Which of the following is true of a cash receipts journal?

Accepted Answer

A) In a cash receipts journal,cash sales are recorded in the Accounts Receivable CR column and the Cash DR column. 
B) In a cash receipts journal,collections on account are recorded in the Accounts Receivable DR column and the Cash DR column. 
C) In a cash receipts journal,the miscellaneous cash receipt transactions are ignored. 
D) In a cash receipts journal,the sales for cash will have entries in the Sales Revenue CR column. 
A) In a cash receipts journal,cash sales are recorded in the Accounts Receivable CR column and the Cash DR column. 
B) In a cash receipts journal,collections on account are recorded in the Accounts Receivable DR column and the Cash DR column. 
C) In a cash receipts journal,the miscellaneous cash receipt transactions are ignored. 
D) In a cash receipts journal,the sales for cash will have entries in the Sales Revenue CR column.

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

Question 3

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) statement of cash flows 
B) balance sheet 
C) bank checks 
D) general ledger 
A) statement of cash flows 
B) balance sheet 
C) bank checks 
D) general ledger

Question 5

A set of programs or instructions that drive the computer to perform the work desired is known as ________.

Accepted Answer

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

Question 6

An accounting information system is said to be relevant,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 7

If there is cash involved in a particular business transaction,then 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 8

A CR.5 posting reference in a subsidiary ledger indicates that the ________.

Accepted Answer

A) posting is transferred from the cash receipts journal,page 5. 
B) transaction in page number 5 is credited 
C) amount credited is after a 5% discount 
D) sales on credit is expected to be paid within 5 days 
A) posting is transferred from the cash receipts journal,page 5. 
B) transaction in page number 5 is credited 
C) amount credited is after a 5% discount 
D) sales on credit is expected to be paid within 5 days

Question 9

A special journal is ________.

Accepted Answer

A) an accounting journal designed to record a specific type of transaction 
B) an accounting journal that holds individual accounts that support a specific general ledger account 
C) a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account 
D) a created list of the accounts used by a business entity to define each class of items for which cash is spent or received 
A) an accounting journal designed to record a specific type of transaction 
B) an accounting journal that holds individual accounts that support a specific general ledger account 
C) a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account 
D) a created list of the accounts used by a business entity to define each class of items for which cash is spent or received

Question 10

An automobile company purchases spark plugs,for cash.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 11

Which of the following is an example of a storage device in an accounting information system?

Accepted Answer

A) monitor 
B) network 
C) printer 
D) server 
A) monitor 
B) network 
C) printer 
D) server

Question 12

Mercury Corporation receives a landscaping bill on January 15 and is required to pay it before February 15.In which of the following functions of QuickBooks will this transaction be recorded on the date of payment of the bill?

Accepted Answer

A) Receive Payments 
B) Enter Bills 
C) Invoices 
D) Pay Bills 
A) Receive Payments 
B) Enter Bills 
C) Invoices 
D) Pay Bills

Question 13

Which of the following are the debit columns of a typical cash payments journal?

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 14

When a sales journal is posted to the general ledger at the end of the month,the accountant totals the Accounts Receivable DR,Sales Revenue CR and Cost of Goods Sold DR,Merchandise Inventory CR columns.This process is commonly called ________.

Accepted Answer

A) scalping 
B) ticking 
C) footing 
D) framing 
A) scalping 
B) ticking 
C) footing 
D) framing

Question 15

Which of the following is true of a typical computerized accounting information system?

Accepted Answer

A) The transactions are recorded in debit and credit format. 
B) By creating the invoice,the software knows automatically to record a debit or a credit. 
C) The business has to manually post the transaction. 
D) It cannot create financial statements. 
A) The transactions are recorded in debit and credit format. 
B) By creating the invoice,the software knows automatically to record a debit or a credit. 
C) The business has to manually post the transaction. 
D) It cannot create financial statements.

Question 16

Which of the following is true of an accounting software system?

Accepted Answer

A) It is categorized as hardware electronic equipment. 
B) It cannot save any transaction data. 
C) It can read,edit,and store transaction data. 
D) It cannot be customized for different types of businesses. 
A) It is categorized as hardware electronic equipment. 
B) It cannot save any transaction data. 
C) It can read,edit,and store transaction data. 
D) It cannot be customized for different types of businesses.

Question 17

A subsidiary ledger is ________.

Accepted Answer

A) an accounting journal designed to record a specific type of transaction 
B) a created list of accounts used by a business entity to define each class of items for which cash is spent or received 
C) a complete record of business transactions recorded in a ledger over the life of a company 
D) a record of accounts that provide supporting details on individual balances,the total of which appears in a general ledger account 
A) an accounting journal designed to record a specific type of transaction 
B) a created list of accounts used by a business entity to define each class of items for which cash is spent or received 
C) a complete record of business transactions recorded in a ledger over the life of a company 
D) a record of accounts that provide supporting details on individual balances,the total of which appears in a general ledger account

Question 18

An accounting information system is said to have good compatibility,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 19

Posting from the cash payments journal is similar to posting from the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 20

An accounting information system is said to have good control characteristics,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

Exam 27: Accounting Information Systems

Which of the following is true of a cash receipts journal?

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

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

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

A set of programs or instructions that drive the computer to perform the work desired is known as ________.

An accounting information system is said to be relevant,if it ________.

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

A CR.5 posting reference in a subsidiary ledger indicates that the ________.

A special journal is ________.

An automobile company purchases spark plugs,for cash.When using a manual accounting information system,the company will record this transaction in the ________.

Which of the following is an example of a storage device in an accounting information system?

Mercury Corporation receives a landscaping bill on January 15 and is required to pay it before February 15.In which of the following functions of QuickBooks will this transaction be recorded on the date of payment of the bill?

Which of the following are the debit columns of a typical cash payments journal?

When a sales journal is posted to the general ledger at the end of the month,the accountant totals the Accounts Receivable DR,Sales Revenue CR and Cost of Goods Sold DR,Merchandise Inventory CR columns.This process is commonly called ________.

Which of the following is true of a typical computerized accounting information system?

Which of the following is true of an accounting software system?

A subsidiary ledger is ________.

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

Posting from the cash payments journal is similar to posting from the cash receipts journal.

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

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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