Question 1

If there is cash involved in a business transaction,the transaction should be recorded in either the ________.

Accepted Answer

A) cash payments journal or cash receipts journal 
B) cash payments journal or general journal 
C) cash payments journal or cash receipts journal and in general journal 
D) sales journal or purchases journal 
A) cash payments journal or cash receipts journal 
B) cash payments journal or general journal 
C) cash payments journal or cash receipts journal and in general journal 
D) sales journal or purchases journal A

Question 2

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

Accepted Answer

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

Question 3

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  False

Question 4

An automobile parts retailer purchases merchandise inventory for cash.When using a manual accounting information system,this transaction is recorded in the ________.

Accepted Answer

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

Question 5

The 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 6

Sales on account are recorded in a cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 7

An automobile parts retailer purchases merchandise inventory on account.When using a manual accounting information system,this transaction is recorded in the ________.

Accepted Answer

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

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

Hexagon Corporation sold a product on credit for $2,235 to Merin Lynch.The cost of goods sold was $1,324.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $2,235 in the ________.

Accepted Answer

A) Accounts Receivable CR,Sales Revenue DR column 
B) Cost of Goods Sold DR,Merchandise Inventory CR column 
C) Merchandise Inventory DR,Cost of Goods Sold CR column 
D) Accounts Receivable DR,Sales Revenue CR column 
A) Accounts Receivable CR,Sales Revenue DR column 
B) Cost of Goods Sold DR,Merchandise Inventory CR column 
C) Merchandise Inventory DR,Cost of Goods Sold CR column 
D) Accounts Receivable DR,Sales Revenue CR column

Question 13

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

Accepted Answer

A) Cost of Goods Sold DR 
B) Purchases DR 
C) Accounts Payable DR 
D) Merchandise Inventory DR 
A) Cost of Goods Sold DR 
B) Purchases DR 
C) Accounts Payable DR 
D) Merchandise Inventory DR

Question 14

Which of the following is true of an effective accounting information system?

Accepted Answer

A) It has little influence in improving a company's internal control activities. 
B) The cost of using an accounting information system is the same for both small and large businesses. 
C) A compatible accounting information system works smoothly with the business's employees and organizational structure. 
D) Large private companies prefer a manual accounting information system since their financial statements are not audited. 
A) It has little influence in improving a company's internal control activities. 
B) The cost of using an accounting information system is the same for both small and large businesses. 
C) A compatible accounting information system works smoothly with the business's employees and organizational structure. 
D) Large private companies prefer a manual accounting information system since their financial statements are not audited.

Question 15

An accounting information system creates the structure to encourage adherence to management policies.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

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

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

Enterprise resource planning systems are software systems that can integrate all of a company's functions,departments,and data into a single system.

Accepted Answer

A) True 
 B)False

Exam 27: Accounting Information Systems

If there is cash involved in a business transaction,the transaction should be recorded in either the ________.

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

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

An automobile parts retailer purchases merchandise inventory for cash.When using a manual accounting information system,this transaction is recorded in the ________.

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

Sales on account are recorded in a cash receipts journal.

An automobile parts retailer purchases merchandise inventory on account.When using a manual accounting information system,this transaction is recorded in the ________.

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

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

Cash disbursement journals also are known as ________.

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

Hexagon Corporation sold a product on credit for $2,235 to Merin Lynch.The cost of goods sold was $1,324.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $2,235 in the ________.

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

Which of the following is true of an effective accounting information system?

An accounting information system creates the structure to encourage adherence to management policies.

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

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

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

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

Enterprise resource planning systems are software systems that can integrate all of a company's functions,departments,and data into a single 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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