Question 1

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 2

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

Accepted Answer

A) keyboard 
B) internet protocol 
C) printer 
D) router 
A) keyboard 
B) internet protocol 
C) printer 
D) router

Question 3

Tangent Corporation sold a product for $7,150 to Michael Cardon on credit.The cost of goods sold is $5,650.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $5,650 in the ________.

Accepted Answer

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

Question 4

A special journal is ________.

Accepted Answer

A) an accounting journal designed to record a 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 a 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 5

An accounting information system is said to be relevant,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 6

Which of the following is not included in the purchases journal?

Accepted Answer

A) purchases of merchandise inventory for cash 
B) purchase of merchandise inventory on account 
C) purchase of office supplies on credit 
D) purchase of equipment on account 
A) purchases of merchandise inventory for cash 
B) purchase of merchandise inventory on account 
C) purchase of office supplies on credit 
D) purchase of equipment on account

Question 7

A subsidiary ledger is a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account.

Accepted Answer

A) True 
 B)False

Question 8

In a networked system,the server stores the program and the data.

Accepted Answer

A) True 
 B)False

Question 9

Describe the transactions recorded in the cash payments journal.

Accepted Answer

The cash payments jo

Question 10

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 11

On May 31,a retail firm pays rent of $2,700 for the month of May.When this transaction is recorded in the cash payments journal,________.

Accepted Answer

A) assets and equity will increase by $2,700 
B) assets and liabilities will decrease by $2,700 
C) assets and equity will decrease by $2,700 
D) liabilities and equity will increase by $2,700 
A) assets and equity will increase by $2,700 
B) assets and liabilities will decrease by $2,700 
C) assets and equity will decrease by $2,700 
D) liabilities and equity will increase by $2,700

Question 12

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

Accepted Answer

Enterprise resource planning systems int

Question 13

In an accounting information system,outputs are the reports used for decision making,which include the financial statements.

Accepted Answer

A) True 
 B)False

Question 14

MultiMet Corporation sold merchandise for $4,450 to Simpsons,Inc.on account.The cost of goods sold was $1,185.MultiMet uses a perpetual inventory system and special journals.The $4,450 is recorded as ________.

Accepted Answer

A) an entry in the general journal 
B) Accounts Receivable DR,Sales Revenue CR column of the sales journal 
C) Merchandise Inventory DR column of the purchases journal 
D) Accounts Receivable CR column of cash receipts journal 
A) an entry in the general journal 
B) Accounts Receivable DR,Sales Revenue CR column of the sales journal 
C) Merchandise Inventory DR column of the purchases journal 
D) Accounts Receivable CR column of cash receipts journal

Question 15

The sales journal is used for all sales of merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A) keyboard 
B) internet protocol 
C) printer 
D) mouse 
A) keyboard 
B) internet protocol 
C) printer 
D) mouse

Question 18

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 19

The main computer where data are stored,which can be accessed from many different computers,is known as software.

Accepted Answer

A) True 
 B)False

Question 20

A company has four vendors and the accounts payable subsidiary ledger shows the following balances. $$\begin{array} { | l | r | } 
\hline \text { Alpha } & \$ 278,821 \
\hline \text { Beta } & 157,474 \
\hline \text { Gamma } & 83,943 \
\hline \text { Delta } & 44,187 \
\hline
\end{array}$$ Calculate the accounts payable balance in the general ledger.

Accepted Answer

A) $436,295 
B) $564,425 
C) $278,821 
D) $285,604 
A) $436,295 
B) $564,425 
C) $278,821 
D) $285,604

Exam 27: Accounting Information Systems

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

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

Tangent Corporation sold a product for $7,150 to Michael Cardon on credit.The cost of goods sold is $5,650.Assuming the firm is following a perpetual inventory system and using a sales journal,it will record $5,650 in the ________.

A special journal is ________.

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

Which of the following is not included in the purchases journal?

A subsidiary ledger is a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account.

In a networked system,the server stores the program and the data.

Describe the transactions recorded in the cash payments journal.

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

On May 31,a retail firm pays rent of $2,700 for the month of May.When this transaction is recorded in the cash payments journal,________.

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

In an accounting information system,outputs are the reports used for decision making,which include the financial statements.

MultiMet Corporation sold merchandise for $4,450 to Simpsons,Inc.on account.The cost of goods sold was $1,185.MultiMet uses a perpetual inventory system and special journals.The $4,450 is recorded as ________.

The sales journal is used for all sales of merchandise inventory.

A sales journal is ________.

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

Depreciation expense is recorded in a ________.

The main computer where data are stored,which can be accessed from many different computers,is known as software.

A company has four vendors and the accounts payable subsidiary ledger shows the following balances. Alpha \ 278,821 Beta 157,474 Gamma 83,943 Delta 44,187 Calculate the accounts payable balance in the general ledger.

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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