Question 1

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 2

Which of the following is true of a purchases journal?

Accepted Answer

A) For a periodic inventory system,the Merchandise Inventory DR column is replaced with a column titled Cost of Goods Sold DR. 
B) Cash purchases are recorded in the purchases journal. 
C) For a perpetual inventory system,a column titled Purchases DR is needed. 
D) The Other Accounts DR column is used for purchases on account of items other than merchandise inventory and office supplies. 
A) For a periodic inventory system,the Merchandise Inventory DR column is replaced with a column titled Cost of Goods Sold DR. 
B) Cash purchases are recorded in the purchases journal. 
C) For a perpetual inventory system,a column titled Purchases DR is needed. 
D) The Other Accounts DR column is used for purchases on account of items other than merchandise inventory and office supplies.

Question 3

To safeguard a business's assets and reduce the likelihood of fraud and errors,its accounting information system ________.

Accepted Answer

A) should be manual 
B) must be flexible to accommodate changes in a business over time 
C) should work smoothly with the business's employees 
D) must provide adequate controls of a business's assets and data 
A) should be manual 
B) must be flexible to accommodate changes in a business over time 
C) should work smoothly with the business's employees 
D) must provide adequate controls of a business's assets and data

Question 4

The purchases journal is a special journal that ________.

Accepted Answer

A) has special columns for credits to merchandise inventory 
B) is used to record all purchases of merchandise inventory 
C) has a special column for debits to accounts payable 
D) is used to record merchandise inventory,office supplies,and other assets purchased on account 
A) has special columns for credits to merchandise inventory 
B) is used to record all purchases of merchandise inventory 
C) has a special column for debits to accounts payable 
D) is used to record merchandise inventory,office supplies,and other assets purchased on account

Question 5

Which of the following is true of the general journal?

Accepted Answer

A) All transactions recorded in one of the special journals also are recorded in the general journal. 
B) Manual accounting information systems do not need the general journal. 
C) The adjusting entries and the closing entries are recorded in the general journal. 
D) Non-routine transactions are generally not recorded in the general journal. 
A) All transactions recorded in one of the special journals also are recorded in the general journal. 
B) Manual accounting information systems do not need the general journal. 
C) The adjusting entries and the closing entries are recorded in the general journal. 
D) Non-routine transactions are generally not recorded in the general journal.

Question 6

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 7

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 8

Describe the transactions recorded in the purchases journal.

Accepted Answer

The purchases journal is used

Question 9

Centium Corporation sold goods to John Dunn for $1,000 on account.Cost of goods sold was $745.Centium uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

Accepted Answer

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

Question 10

In a typical computerized accounting information system,________.

Accepted Answer

A) transactions must be recorded in debit and credit format 
B) the software automatically knows to record a debit or a credit 
C) transactions are posted manually 
D) spreadsheets must be used to produce financial statements 
A) transactions must be recorded in debit and credit format 
B) the software automatically knows to record a debit or a credit 
C) transactions are posted manually 
D) spreadsheets must be used to produce financial statements

Question 11

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 12

An effective accounting information system that provides relevant information ________.

Accepted Answer

A) increases the likelihood of fraud and errors 
B) reduces the cost of employing an accounting information system 
C) improves decision making and reduces uncertainty 
D) improves the accuracy of data entry when manual 
A) increases the likelihood of fraud and errors 
B) reduces the cost of employing an accounting information system 
C) improves decision making and reduces uncertainty 
D) improves the accuracy of data entry when manual

Question 13

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 14

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

Accepted Answer

A) In a manual system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate reports instantaneously that can never be manipulated. 
C) Examples of outputs in an accounting information system include purchase invoices,bank checks,and sales invoices. 
D) Since the output in an accounting information system is audited and error-free,it provides the evidence and data for accounting transactions. 
A) In a manual system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate reports instantaneously that can never be manipulated. 
C) Examples of outputs in an accounting information system include purchase invoices,bank checks,and sales invoices. 
D) Since the output in an accounting information system is audited and error-free,it provides the evidence and data for accounting transactions.

Question 15

The collection of time records is an accounting information system activity that is classified as a business transaction involving the sale of merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 16

When using a periodic inventory system,the Merchandise Inventory DR column,in the purchases journal,is replaced with a column titled Cost of Goods Sold DR.

Accepted Answer

A) True 
 B)False

Question 17

A source document provides the evidence and data for accounting transactions.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true of an accounts receivable subsidiary ledger?

Accepted Answer

A) It does not include a receivable account for each customer,but includes a cumulative account for all customers. 
B) It contains information about the amount each customer purchased on credit,but excludes the customer name. 
C) The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts receivable balance in the general ledger. 
D) Companies keep an accounts payable subsidiary ledger that is entirely different from the accounts receivable subsidiary ledger. 
A) It does not include a receivable account for each customer,but includes a cumulative account for all customers. 
B) It contains information about the amount each customer purchased on credit,but excludes the customer name. 
C) The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts receivable balance in the general ledger. 
D) Companies keep an accounts payable subsidiary ledger that is entirely different from the accounts receivable subsidiary ledger.

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Exam 27: Accounting Information Systems

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

Which of the following is true of a purchases journal?

To safeguard a business's assets and reduce the likelihood of fraud and errors,its accounting information system ________.

The purchases journal is a special journal that ________.

Which of the following is true of the general journal?

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

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

Describe the transactions recorded in the purchases journal.

Centium Corporation sold goods to John Dunn for $1,000 on account.Cost of goods sold was $745.Centium uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

In a typical computerized accounting information system,________.

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

An effective accounting information system that provides relevant information ________.

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

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

The collection of time records is an accounting information system activity that is classified as a business transaction involving the sale of merchandise inventory.

When using a periodic inventory system,the Merchandise Inventory DR column,in the purchases journal,is replaced with a column titled Cost of Goods Sold DR.

A source document provides the evidence and data for accounting transactions.

Which of the following is true of an accounts receivable subsidiary ledger?

The accounts payable subsidiary ledger ________.

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

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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