Question 1

Which of the following is true of an accounts payable subsidiary ledger?

Accepted Answer

A) It does not indicate the amount owed to each vendor. 
B) It shows only a single total for the amount owed on account. 
C) It lists vendors in alphabetical order,along with amounts paid to the vendors and the remaining amounts owed to them. 
D) Its format is entirely different from an accounts receivable subsidiary ledger. 
A) It does not indicate the amount owed to each vendor. 
B) It shows only a single total for the amount owed on account. 
C) It lists vendors in alphabetical order,along with amounts paid to the vendors and the remaining amounts owed to them. 
D) Its format is entirely different from an accounts receivable subsidiary ledger.

Question 2

Unlike the sales journal,entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

Accepted Answer

A) True 
 B)False

Question 3

BM Corporation makes a sale for cash to Roger Downing.In which of the following functions of QuickBooks will this transaction be recorded?

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 4

Which of the following is an advantage of enterprise resource planning (ERP)systems?

Accepted Answer

A) It is inexpensive to implement. 
B) It provides financial benefits to only to small corporations not large corporations. 
C) It replaces separate software systems,such as sales and payroll. 
D) Its implementation requires a little commitment of time and people. 
A) It is inexpensive to implement. 
B) It provides financial benefits to only to small corporations not large corporations. 
C) It replaces separate software systems,such as sales and payroll. 
D) Its implementation requires a little commitment of time and people.

Question 5

In a purchases journal,the total of the ________ column is not posted to the general ledger.

Accepted Answer

A) Merchandise Inventory DR 
B) Other Accounts DR,Amount 
C) Accounts Payable CR 
D) Office Supplies DR 
A) Merchandise Inventory DR 
B) Other Accounts DR,Amount 
C) Accounts Payable CR 
D) Office Supplies DR

Question 6

What are the two basic components of a computerized accounting information system?

Accepted Answer

A) sales journal and purchase journal 
B) hardware and software 
C) cash payment journal and cash receipt journal 
D) network and cloud computing 
A) sales journal and purchase journal 
B) hardware and software 
C) cash payment journal and cash receipt journal 
D) network and cloud computing

Question 7

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

Accepted Answer

A) a firm paying $2,500 electricity bill 
B) a firm writing down the value of an impaired asset 
C) a firm making a sale on account to a customer 
D) a firm making accounting adjustments to depreciation expense 
A) a firm paying $2,500 electricity bill 
B) a firm writing down the value of an impaired asset 
C) a firm making a sale on account to a customer 
D) a firm making accounting adjustments to depreciation expense

Question 8

BM Corporation makes a sale on account to Roger Downing.In which of the following functions of QuickBooks will this transaction be recorded?

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 9

Which of the following serves as the "journal of last resort?"

Accepted Answer

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

Question 10

The purchases journal is a special journal used to record all purchases of merchandise inventory,office supplies,and other assets on account.

Accepted Answer

A) True 
 B)False

Question 11

Hardware is electronic equipment that includes computers,monitors,printers,and the network that connects them.

Accepted Answer

A) True 
 B)False

Question 12

If a business uses the periodic inventory system,the sales journal will ________.

Accepted Answer

A) record both the cash and credit sales 
B) include a Purchase DR and Account Receivable CR column 
C) exclude the Accounts Receivable DR and Sales Revenue CR column 
D) exclude the Cost of Goods Sold DR and Merchandise Inventory CR column 
A) record both the cash and credit sales 
B) include a Purchase DR and Account Receivable CR column 
C) exclude the Accounts Receivable DR and Sales Revenue CR column 
D) exclude the Cost of Goods Sold DR and Merchandise Inventory CR column

Question 13

Entries from the purchases journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following transactions will be recorded in the purchases journal?

Accepted Answer

A) purchase of furniture on account 
B) purchase of merchandise inventory for cash 
C) sale of a product on account 
D) sales of a product for cash 
A) purchase of furniture on account 
B) purchase of merchandise inventory for cash 
C) sale of a product on account 
D) sales of a product for cash

Question 15

A source document provides the evidence and data for accounting transactions.

Accepted Answer

A) True 
 B)False

Question 16

Cash receipts journal is a special journal used to record business transactions of all cash receipts and credit sales.

Accepted Answer

A) True 
 B)False

Question 17

An accounting information system (AIS)collects,records,stores,and processes accounting data to produce information that is useful for decision makers.

Accepted Answer

A) True 
 B)False

Exam 27: Accounting Information Systems

Which of the following is true of an accounts payable subsidiary ledger?

Unlike the sales journal,entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

BM Corporation makes a sale for cash to Roger Downing.In which of the following functions of QuickBooks will this transaction be recorded?

Which of the following is an advantage of enterprise resource planning (ERP)systems?

In a purchases journal,the total of the ________ column is not posted to the general ledger.

What are the two basic components of a computerized accounting information system?

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

BM Corporation makes a sale on account to Roger Downing.In which of the following functions of QuickBooks will this transaction be recorded?

Which of the following serves as the "journal of last resort?"

The purchases journal is a special journal used to record all purchases of merchandise inventory,office supplies,and other assets on account.

Hardware is electronic equipment that includes computers,monitors,printers,and the network that connects them.

If a business uses the periodic inventory system,the sales journal will ________.

Entries from the purchases journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger.

Which of the following transactions will be recorded in the purchases journal?

A source document provides the evidence and data for accounting transactions.

Cash receipts journal is a special journal used to record business transactions of all cash receipts and credit sales.

An accounting information system (AIS)collects,records,stores,and processes accounting data to produce information that is useful for decision makers.

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