Question 1

Every transaction recorded in the cash receipts journal includes a ________.

Accepted Answer

A)  credit to Cash 
B)  debit to Accounts Receivable 
C)  credit to Accounts Receivable 
D)  debit to Cash 
A)  credit to Cash 
B)  debit to Accounts Receivable 
C)  credit to Accounts Receivable 
D)  debit to Cash

Question 2

For each of the following business transactions, list two examples of related accounting information system (AIS) activities:
 $$\begin{array} { | l | l | } 
\hline \text { Business Transactions } & \text { Accounting Information System Activities } \
\hline \text { Sell merchandise inventory } & \
\hline \text { Purchase of goods or } & \
\text { services } & \
\hline \text { Payroll } & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following business transactions,...

Question 3

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 4

Cash purchases are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  adjusting and closing entries 
B)  payment of accounts payable 
C)  purchase of merchandise inventory on account 
D)  sale of merchandise inventory on account 
A)  adjusting and closing entries 
B)  payment of accounts payable 
C)  purchase of merchandise inventory on account 
D)  sale of merchandise inventory on account

Question 6

Most small businesses have computerized all of their accounting.

Accepted Answer

A) True 
 B)False

Question 7

The accounts payable subsidiary ledger ________.

Accepted Answer

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

Question 8

A cash payments journal is a special journal that ________.

Accepted Answer

A)  differs from the cash disbursements journal 
B)  eliminates the need to perform a bank reconciliation 
C)  is used to record cash payments by check and currency 
D)  is used to record the net of cash payments and cash receipts by check and currency 
A)  differs from the cash disbursements journal 
B)  eliminates the need to perform a bank reconciliation 
C)  is used to record cash payments by check and currency 
D)  is used to record the net of cash payments and cash receipts by check and currency

Question 9

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

Accepted Answer

A)  are not needed if a computerized system is used 
B)  detail the strategic planning of the business 
C)  have complete information about the financial statements 
D)  provide the evidence and data for accounting transactions 
A)  are not needed if a computerized system is used 
B)  detail the strategic planning of the business 
C)  have complete information about the financial statements 
D)  provide the evidence and data for accounting transactions

Question 10

Companies are now spending less amounts of cash to ensure that their data and information are secure.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

A sales journal is ________.

Accepted Answer

A)  a special journal used to record all the cash sales 
B)  used to record the sales of assets other than merchandise inventory 
C)  a special journal used to record credit sales 
D)  a general journal used to record the adjustments in revenue account 
A)  a special journal used to record all the cash sales 
B)  used to record the sales of assets other than merchandise inventory 
C)  a special journal used to record credit sales 
D)  a general journal used to record the adjustments in revenue account

Question 13

List and briefly discuss the two basic components of a computerized accounting information system.

Accepted Answer

Hardware is the electronic equipment tha

Question 14

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

Accepted Answer

A)  approval of new employees 
B)  receipt of customer payment 
C)  processing of vendor invoices 
D)  payment for goods or services 
A)  approval of new employees 
B)  receipt of customer payment 
C)  processing of vendor invoices 
D)  payment for goods or services

Question 15

Credit sales of assets other than merchandise inventory occur infrequently and 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 16

For each of the following transactions, state which special journal should be used to record the transaction. In addition, state which columns will be used.
Transaction 1: Freeworld Co. paid $1,500 for monthly utilities, on the date the bill was received.
Which special journal?
Which columns are used to record the transaction?
Transaction 2: Wideworld Co. purchased office supplies on account.
Which special journal?
Which columns are used to record the transaction?
Transaction 3: Wonderworld Co. sold $5,000 of merchandise inventory to A. Allen, on account. The cost of the merchandise inventory was $3,200. The company uses a perpetual inventory system.
Which special journal?
Which columns are used to record the transaction?
Transaction 4: Oneworld Co. borrowed $10,000 from World National Bank.
Which special journal?
Which columns are used to record the transaction?

Accepted Answer

Transaction 1: Freeworld Co. paid $1,500

Question 17

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

Question 18

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 19

Depreciation expense 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 20

List and describe two features of an effective accounting information system.

Accepted Answer

The features of an effective accounting

Exam 27: Understanding Accounting Information Systems and their Components

Every transaction recorded in the cash receipts journal includes a ________.

For each of the following business transactions, list two examples of related accounting information system (AIS) activities: Business Transactions Accounting Information System Activities Sell merchandise inventory Purchase of goods or services Payroll

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

Cash purchases are recorded in the purchases journal.

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

Most small businesses have computerized all of their accounting.

The accounts payable subsidiary ledger ________.

A cash payments journal is a special journal that ________.

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

Companies are now spending less amounts of cash to ensure that their data and information are secure.

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

A sales journal is ________.

List and briefly discuss the two basic components of a computerized accounting information system.

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

Credit sales of assets other than merchandise inventory occur infrequently and are recorded in the ________.

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

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

Depreciation expense is recorded in a ________.

List and describe two features of an effective 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

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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