Question 1

Cash disbursement journals are also known as ________.

Accepted Answer

A) sales journals 
B) purchases journals 
C) cash receipt journals 
D) cash payments journals 
A) sales journals 
B) purchases journals 
C) cash receipt journals 
D) cash payments journals

Question 2

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

Accepted Answer

A) True 
 B)False

Question 3

In cloud computing,the software and data are stored on the company's server instead of a third-party server.

Accepted Answer

A) True 
 B)False

Question 4

Depreciation of fixed assets is recorded in a ________.

Accepted Answer

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

Question 5

Which of the following is true of source documents in an accounting information system?

Accepted Answer

A) All journal entries can be considered as source documents in an accounting information system. 
B) Source documents provide control and reliability in an accounting information system. 
C) A manual document cannot be considered as a source document in an accounting information system. 
D) In a manual accounting information system,source documents refer to financial statements. 
A) All journal entries can be considered as source documents in an accounting information system. 
B) Source documents provide control and reliability in an accounting information system. 
C) A manual document cannot be considered as a source document in an accounting information system. 
D) In a manual accounting information system,source documents refer to financial statements.

Question 6

An effective accounting information system with adequate internal controls can safeguard a business's assets and reduce the likelihood of fraud and errors.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Cash purchases are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 9

In a manual accounting information system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of a control account?

Accepted Answer

A) It is a valuation account from which balances are added to another account. 
B) Its balance equals the sum of the balances in a group of related accounts in a subsidiary ledger. 
C) It is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm's financial statements. 
D) It holds individual accounts that support a general ledger account. 
A) It is a valuation account from which balances are added to another account. 
B) Its balance equals the sum of the balances in a group of related accounts in a subsidiary ledger. 
C) It is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm's financial statements. 
D) It holds individual accounts that support a general ledger account.

Question 11

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 12

Examples of source documents in an accounting information system include the statement of cash flows and sales journal.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) Microsoft Word 
B) QuickBooks 
C) Minitab 
D) Router 
A) Microsoft Word 
B) QuickBooks 
C) Minitab 
D) Router

Question 14

Cash purchases are generally recorded in the ________.

Accepted Answer

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

Question 15

In a computerized accounting information system,the business does not have to record the transaction in debit and credit format.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a disadvantage of enterprise resource planning (ERP)systems?

Accepted Answer

A) It is not beneficial to large corporations. 
B) It is not supported by cloud computing. 
C) Its implementation requires a large commitment of time and people. 
D) It uses separate software systems,such as sales and payroll. 
A) It is not beneficial to large corporations. 
B) It is not supported by cloud computing. 
C) Its implementation requires a large commitment of time and people. 
D) It uses separate software systems,such as sales and payroll.

Question 17

Which of the following is true of a network?

Accepted Answer

A) It connects a computer's hardware to the software. 
B) It does not link computers. 
C) It is the same as software. 
D) It allows different computers to share the same information. 
A) It connects a computer's hardware to the software. 
B) It does not link computers. 
C) It is the same as software. 
D) It allows different computers to share the same information.

Question 18

Which of the following is true of outputs in an accounting information system?

Accepted Answer

A) In a manual system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate reports instantaneously that can never be manipulated. 
C) Examples of outputs in an accounting information system include purchase invoices,bank checks,and sales invoices. 
D) Since the output in an accounting information system are audited and error-free,it provides the evidence and data for accounting transactions. 
A) In a manual system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate reports instantaneously that can never be manipulated. 
C) Examples of outputs in an accounting information system include purchase invoices,bank checks,and sales invoices. 
D) Since the output in an accounting information system are audited and error-free,it provides the evidence and data for accounting transactions.

Question 19

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

Accepted Answer

A) depreciation on equipment 
B) payment of accounts payable 
C) purchase of merchandise inventory on account 
D) receipt of cash from a debtor 
A) depreciation on equipment 
B) payment of accounts payable 
C) purchase of merchandise inventory on account 
D) receipt of cash from a debtor

Question 20

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

Accepted Answer

A) It can accurately measure the intrinsic value of the firm using the built-in simulation techniques. 
B) The accountant,who inputs data,is not required to review the financial statements for accuracy. 
C) The accountant,who inputs data,need not set the correct time period. 
D) It automatically transfers the amounts from the general ledger to the financial statements. 
A) It can accurately measure the intrinsic value of the firm using the built-in simulation techniques. 
B) The accountant,who inputs data,is not required to review the financial statements for accuracy. 
C) The accountant,who inputs data,need not set the correct time period. 
D) It automatically transfers the amounts from the general ledger to the financial statements.

Exam 27: Accounting Information Systems

Cash disbursement journals are also known as ________.

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

In cloud computing,the software and data are stored on the company's server instead of a third-party server.

Depreciation of fixed assets is recorded in a ________.

Which of the following is true of source documents in an accounting information system?

An effective accounting information system with adequate internal controls can safeguard a business's assets and reduce the likelihood of fraud and errors.

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

Cash purchases are recorded in the purchases journal.

In a manual accounting information system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint.

Which of the following is true of a control account?

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

Examples of source documents in an accounting information system include the statement of cash flows and sales journal.

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

Cash purchases are generally recorded in the ________.

In a computerized accounting information system,the business does not have to record the transaction in debit and credit format.

Which of the following is a disadvantage of enterprise resource planning (ERP)systems?

Which of the following is true of a network?

Which of the following is true of outputs in an accounting information system?

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

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

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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