Question 1

Two popular entry-level software packages for accounting information systems are QuickBooks and Excel.

Accepted Answer

A) True 
 B)False

Question 2

Match the benefit of an effective accounting information system with the definition.
-Positive cost/benefit relationship

Accepted Answer

A) Provides information that will improve decision making and reduce uncertainty. 
B) Benefits received outweigh the cost of the system. 
C) Works smoothly with the business's employees and organization structure. 
D) Can accommodate changes in the business over time. 
E) Provides safeguards for a business's assets and reduces the likelihood of fraud and errors. 
A) Provides information that will improve decision making and reduce uncertainty. 
B) Benefits received outweigh the cost of the system. 
C) Works smoothly with the business's employees and organization structure. 
D) Can accommodate changes in the business over time. 
E) Provides safeguards for a business's assets and reduces the likelihood of fraud and errors.

Question 3

Define enterprise resource planning (ERP) systems and state one advantage and one disadvantage of ERP systems.

Accepted Answer

Enterprise resource planning systems int

Question 4

Prenumbered 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 5

Cash disbursement journals also are known as ________.

Accepted Answer

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

Question 6

A special journal is ________.

Accepted Answer

A)  an accounting journal designed to record one specific type of transaction 
B)  an accounting journal that holds individual accounts that support a specific general ledger account 
C)  a record of accounts that provides supporting details on individual balances, the total of which appears in a general ledger account 
D)  a created list of the accounts used by a business entity to define each class of items for which cash is spent or received 
A)  an accounting journal designed to record one specific type of transaction 
B)  an accounting journal that holds individual accounts that support a specific general ledger account 
C)  a record of accounts that provides supporting details on individual balances, the total of which appears in a general ledger account 
D)  a created list of the accounts used by a business entity to define each class of items for which cash is spent or received

Question 7

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 8

Entry-level software packages for accounting information systems are difficult to use and require a complete knowledge of GAAP.

Accepted Answer

A) True 
 B)False

Question 9

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 10

In a perpetual inventory system, the credit columns of a typical cash payments journal are ________.

Accepted Answer

A)  Merchandise Inventory column and Cash column 
B)  Other Accounts column and Accounts Payable column 
C)  Merchandise Inventory column and Accounts Payable column 
D)  Other Accounts column and Cash column 
A)  Merchandise Inventory column and Cash column 
B)  Other Accounts column and Accounts Payable column 
C)  Merchandise Inventory column and Accounts Payable column 
D)  Other Accounts column and Cash column

Question 11

Silver Corporation had the following transactions:
 $\begin{array}{|l|l|}
\hline \text {Jan } 4 & \text { Issued check no, } 430 \text { to purchase equipment for cash, } \$ 2,200 . \
\hline 9 & \text { Purchased merchandise inventory for cash, } \$ 400, \text { issuing check no, } 431 . \
\hline 19 & \text { Paid Kale Co. amount owed, } \$ 1,025, \text { less } \$ 60 \text { discount. Issued check no, } 432 . \
\hline 27 & \begin{array}{l}
\text { Issued check no. } 433 \text { to pay utilities, } \$ 210 . \text { The bill was just received, and there is no } \
\text { liability recorded. }
\end{array} \
\hline
\end{array}$
 Use the following cash payments journal to record the preceding transactions. The company uses the perpetual inventory system.

Accepted Answer

The answer of Silver Corporation had the following transactions:
 \(\begin{array}{|l|l|}
\hline...

Question 12

When posting entries from a purchases journal to the general ledger, ________.

Accepted Answer

A)  posting references are not shown in the subsidiary ledger 
B)  the Accounts Payable balance in the general ledger will be less than the sum of the individual vendor balances in the subsidiary ledger 
C)  the amounts in the Other Accounts DR column are posted individually to the specific accounts 
D)  entries are posted on a daily basis for all the accounts 
A)  posting references are not shown in the subsidiary ledger 
B)  the Accounts Payable balance in the general ledger will be less than the sum of the individual vendor balances in the subsidiary ledger 
C)  the amounts in the Other Accounts DR column are posted individually to the specific accounts 
D)  entries are posted on a daily basis for all the accounts

Question 13

When using QuickBooks, the Vendors tab is used to record a bill that has been received.

Accepted Answer

A) True 
 B)False

Question 14

Australia Corporation sells a product for $500 cash to Martin and Lewis Enterprises. This transaction will be recorded in the ________.

Accepted Answer

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

Question 15

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

Accepted Answer

A)  Microsoft Word 
B)  QuickBooks 
C)  Cloud Computing 
D)  Oracle 
A)  Microsoft Word 
B)  QuickBooks 
C)  Cloud Computing 
D)  Oracle

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

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)  Even though the sales journal is posted monthly to the subsidiary ledger, it is a reliable record of the amount received 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)  Even though the sales journal is posted monthly to the subsidiary ledger, it is a reliable record of the amount received 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 19

Midwest Enterprises uses special journals. The company borrowed $10,000 from First State Bank. This transaction is recorded in the ________.

Accepted Answer

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

Question 20

Dakota Company has four customers: A, B, C, and D. The accounts receivable balance in the general ledger is $8683 and the accounts receivable subsidiary ledger of customers A, C, and D have $1346, $3296, and $3340, respectively. Calculate the amount in the accounts receivable subsidiary ledger account of customer B.

Accepted Answer

A)  $7982 
B)  $2047 
C)  $1291 
D)  $701 
A)  $7982 
B)  $2047 
C)  $1291 
D)  $701

Exam 27: Understanding Accounting Information Systems and their Components

Two popular entry-level software packages for accounting information systems are QuickBooks and Excel.

Match the benefit of an effective accounting information system with the definition. -Positive cost/benefit relationship

Define enterprise resource planning (ERP) systems and state one advantage and one disadvantage of ERP systems.

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

Cash disbursement journals also are known as ________.

A special journal is ________.

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

Entry-level software packages for accounting information systems are difficult to use and require a complete knowledge of GAAP.

Adjusting entries are recorded in the ________.

In a perpetual inventory system, the credit columns of a typical cash payments journal are ________.

When posting entries from a purchases journal to the general ledger, ________.

When using QuickBooks, the Vendors tab is used to record a bill that has been received.

Australia Corporation sells a product for $500 cash to Martin and Lewis Enterprises. This transaction will be recorded in the ________.

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

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

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

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

Midwest Enterprises uses special journals. The company borrowed $10,000 from First State Bank. This transaction is recorded in the ________.

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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