Question 1

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 2

Which of the following is true of the general journal?

Accepted Answer

A) All transactions recorded in one of the special journals are also recorded in the general journal. 
B) Manual accounting information systems do not need the general journal. 
C) The adjusting entries and the closing entries are recorded in the general journal. 
D) Non-routine transactions are generally not recorded in the general journal. 
A) All transactions recorded in one of the special journals are also recorded in the general journal. 
B) Manual accounting information systems do not need the general journal. 
C) The adjusting entries and the closing entries are recorded in the general journal. 
D) Non-routine transactions are generally not recorded in the general journal.

Question 3

When recording in a purchases journal with a periodic inventory system,the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following activities is handled in the Money In section of QuickBooks?

Accepted Answer

A) entering sales receipts 
B) entering bills 
C) entering depreciation expense 
D) entering LIFO to FIFO adjustments 
A) entering sales receipts 
B) entering bills 
C) entering depreciation expense 
D) entering LIFO to FIFO adjustments

Question 5

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 receipt of the bill?

Accepted Answer

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

Question 6

The credit sales of assets that occur infrequently,such as buildings,are recorded in the ________.

Accepted Answer

A) sales journal 
B) cash receipts journal 
C) accounts receivable journal 
D) general journal 
A) sales journal 
B) cash receipts journal 
C) accounts receivable journal 
D) general journal

Question 7

An effective accounting information system that provides relevant information ________.

Accepted Answer

A) increases the likelihood of fraud and errors 
B) reduces the cost of employing an accounting information system 
C) improves decision making and reduces uncertainty 
D) improves the accuracy of data entry when manual 
A) increases the likelihood of fraud and errors 
B) reduces the cost of employing an accounting information system 
C) improves decision making and reduces uncertainty 
D) improves the accuracy of data entry when manual

Question 8

The purchases journal of a business that uses 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 9

One of the advantages of a computerized accounting information system,as compared to a manual one,is that it does not cost to ensure that the firm's data and information are secure.

Accepted Answer

A) True 
 B)False

Question 10

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A company has four vendors and the accounts payable subsidiary ledger shows the following balances. $$\begin{array} { | l | r | } 
\hline \text { Alpha } & \$ 275,821 \
\hline \text { Beta } & 143,474 \
\hline \text { Gamma } & 78,943 \
\hline \text { Delta } & 34,187 \
\hline
\end{array}$$ Calculate the accounts payable balance in the general ledger.

Accepted Answer

A) $419,295 
B) $532,425 
C) $275,821 
D) $256,604 
A) $419,295 
B) $532,425 
C) $275,821 
D) $256,604

Question 13

Pre-numbered source documents provide necessary control in a system by automatically assigning a sequential number to each new transaction.

Accepted Answer

A) True 
 B)False

Question 14

The sale of merchandise inventory for cash is recorded in the ________.

Accepted Answer

A) general journal 
B) cash receipts journal 
C) sales journal 
D) accounts receivable journal 
A) general journal 
B) cash receipts journal 
C) sales journal 
D) accounts receivable journal

Question 15

Adjusting entries are recorded in the ________.

Accepted Answer

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

Question 16

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

Accepted Answer

A) Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger. 
B) Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger. 
C) Though the sales journal is posted monthly to the subsidiary ledger,it is a reliable record of the amount receivable from each customer. 
D) Under a perpetual inventory system,the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column. 
A) Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger. 
B) Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger. 
C) Though the sales journal is posted monthly to the subsidiary ledger,it is a reliable record of the amount receivable from each customer. 
D) Under a perpetual inventory system,the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column.

Question 17

Which of the following is true of the comparison between a manual and a computerized accounting information system?

Accepted Answer

A) In both manual and computerized systems,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate financial reports instantaneously that can never be manipulated. 
C) In a manual system,data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses; whereas in a computerized system,data are stored on a main computer called a server. 
D) In both manual and computerized systems,processing data includes manually journalizing transactions and posting to the accounts. 
A) In both manual and computerized systems,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate financial reports instantaneously that can never be manipulated. 
C) In a manual system,data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses; whereas in a computerized system,data are stored on a main computer called a server. 
D) In both manual and computerized systems,processing data includes manually journalizing transactions and posting to the accounts.

Question 18

In an accounting information system,source documents are the documents which ________.

Accepted Answer

A) are audited and presented to the Securities Exchange Commission 
B) detail the strategic planning of the business 
C) have complete information about the financial statements 
D) provide the evidence for accounting transactions 
A) are audited and presented to the Securities Exchange Commission 
B) detail the strategic planning of the business 
C) have complete information about the financial statements 
D) provide the evidence for accounting transactions

Question 19

Credit purchases are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 20

As both small and large companies require a big accounting information system,the cost of employing an accounting information system for either is the same.

Accepted Answer

A) True 
 B)False

Exam 27: Accounting Information Systems

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

Which of the following is true of the general journal?

When recording in a purchases journal with a periodic inventory system,the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR.

Which of the following activities is handled in the Money In section of QuickBooks?

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 receipt of the bill?

The credit sales of assets that occur infrequently,such as buildings,are recorded in the ________.

An effective accounting information system that provides relevant information ________.

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

One of the advantages of a computerized accounting information system,as compared to a manual one,is that it does not cost to ensure that the firm's data and information are secure.

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

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

A company has four vendors and the accounts payable subsidiary ledger shows the following balances. Alpha \ 275,821 Beta 143,474 Gamma 78,943 Delta 34,187 Calculate the accounts payable balance in the general ledger.

Pre-numbered source documents provide necessary control in a system by automatically assigning a sequential number to each new transaction.

The sale of merchandise inventory for cash is recorded in the ________.

Adjusting entries are recorded in the ________.

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

Which of the following is true of the comparison between a manual and a computerized accounting information system?

In an accounting information system,source documents are the documents which ________.

Credit purchases are recorded in the purchases journal.

As both small and large companies require a big accounting information system,the cost of employing an accounting information system for either is the same.

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

Filters