Exam 27: Understanding Accounting Information Systems and their Components

Ocean Corporation sells a product for $500 on account to Great Atlantic Sales. This transaction will be recorded in the ________.

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(Multiple Choice)

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Question 1

Correct Answer:

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Match the benefit of an effective accounting information system with the definition. -Flexibility

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

A disadvantage of a typical enterprise resource planning system is that it cannot be offered through cloud computing.

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(True/False)

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Question 3

Correct Answer:

Verified

False

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

(True/False)

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Question 4

Bronze Corporation had the following transactions: Jun. 6 Sold merchandise inventory for cash, \ 2,200 . Cost of goods, \ 1,400. 9 Collected interest revenue of \ 2,350. 15 Received cash from Jim Rhodes, \ 1,100 , on account. There was no discount. 27 Received \ 5,400 from Steve McNeil representing \ 5,292 he owed plus \ 108 sales discount forfeited. Use the following cash receipts journal to record the preceding transactions. The company uses the perpetual inventory system. $Bronze Corporation had the following transactions: \begin{array} { | l | l | } \hline \text { Jun. } 6 & \text { Sold merchandise inventory for cash, } \$ 2,200 \text {. Cost of goods, } \$ 1,400 . \\ \hline 9 & \text { Collected interest revenue of } \$ 2,350 . \\ \hline 15 & \text { Received cash from Jim Rhodes, } \$ 1,100 \text {, on account. There was no discount. } \\ \hline 27& \begin{array} { l } \text { Received } \$ 5,400 \text { from Steve McNeil representing } \$ 5,292 \text { he owed plus } \$ 108 \text { sales discount } \\ \text { forfeited. } \end{array} \\ \hline \end{array} Use the following cash receipts journal to record the preceding transactions. The company uses the perpetual inventory system.$

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Question 5

Entry-level accounting software ________.

(Multiple Choice)

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Question 6

In the cash receipts journal, the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns) of the cash receipts journal.

(True/False)

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Question 7

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

(Multiple Choice)

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Question 8

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

(Multiple Choice)

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Question 9

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

(True/False)

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Question 10

The cash disbursements journal is also called the check register.

(True/False)

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Question 11

The accounting is the same regardless of whether a business uses a manual or a computerized accounting information system.

(True/False)

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Question 12

Which of the following is an input device in an accounting information system?

(Multiple Choice)

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Question 13

The cash payments journal has two debit columns - one for Accounts Payable and one for Merchandise Inventory.

(True/False)

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Question 14

A subsidiary ledger is ________.

(Multiple Choice)

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Question 15

Which of the following transactions is recorded in the purchases journal?

(Multiple Choice)

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Question 16

The cash payments journal is a special journal used to record cash payments by currency but not by check.

(True/False)

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Question 17

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.

(True/False)

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Question 18

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

(True/False)

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Question 19

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

(Multiple Choice)

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Question 20

Showing 1 - 20 of 164

Exam 27: Understanding Accounting Information Systems and their Components

Ocean Corporation sells a product for $500 on account to Great Atlantic Sales. This transaction will be recorded in the ________.

Match the benefit of an effective accounting information system with the definition. -Flexibility

A disadvantage of a typical enterprise resource planning system is that it cannot be offered through cloud computing.

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

Entry-level accounting software ________.

In the cash receipts journal, the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns) of the cash receipts journal.

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

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

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

The cash disbursements journal is also called the check register.

The accounting is the same regardless of whether a business uses a manual or a computerized accounting information system.

Which of the following is an input device in an accounting information system?

The cash payments journal has two debit columns - one for Accounts Payable and one for Merchandise Inventory.

A subsidiary ledger is ________.

Which of the following transactions is recorded in the purchases journal?

The cash payments journal is a special journal used to record cash payments by currency but not by check.

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.

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

An accounting information system is said to be relevant, 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

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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