Question 1

In a cash receipts journal,________.

Accepted Answer

A) cash sales are recorded in the Accounts Receivable CR column and the Cash DR column 
B) collections on account are recorded in the Accounts Receivable DR column and the Cash DR column 
C) the miscellaneous cash receipt transactions are ignored 
D) the cash sales are recorded in the Sales Revenue CR column 
A) cash sales are recorded in the Accounts Receivable CR column and the Cash DR column 
B) collections on account are recorded in the Accounts Receivable DR column and the Cash DR column 
C) the miscellaneous cash receipt transactions are ignored 
D) the cash sales are recorded in the Sales Revenue CR column

Question 2

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 3

A subsidiary ledger is ________.

Accepted Answer

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

Question 4

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

None

Question 5

Purchases on account are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 6

All transactions are recorded in either one of the special journals or in the general journal,but not both.

Accepted Answer

A) True 
 B)False

Question 7

The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.

Accepted Answer

A) True 
 B)False

Question 8

In a computerized accounting information system,all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true of the comparison between a manual and a computerized accounting information system?

Accepted Answer

A) In both manual and computerized systems,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate financial reports instantaneously that can never be manipulated. 
C) In a manual system,data are contained in paper documents,which are often stored in filing cabinets and off-site document warehouses; whereas in a computerized system,data are stored on a main computer called a server. 
D) In both manual and computerized systems,processing data includes manually journalizing transactions and posting to the accounts. 
A) In both manual and computerized systems,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint. 
B) In a computerized system,the software can generate financial reports instantaneously that can never be manipulated. 
C) In a manual system,data are contained in paper documents,which are often stored in filing cabinets and off-site document warehouses; whereas in a computerized system,data are stored on a main computer called a server. 
D) In both manual and computerized systems,processing data includes manually journalizing transactions and posting to the accounts.

Question 10

Which of the following is true of a sales journal prepared under the perpetual inventory system?

Accepted Answer

A) It includes a Cost of Goods Sold DR,Merchandise Inventory CR column. 
B) It records both cash and credit sales transactions. 
C) All transactions recorded in a sales journal also are entered in the general journal. 
D) It cannot be used with a perpetual inventory system. 
A) It includes a Cost of Goods Sold DR,Merchandise Inventory CR column. 
B) It records both cash and credit sales transactions. 
C) All transactions recorded in a sales journal also are entered in the general journal. 
D) It cannot be used with a perpetual inventory system.

Question 11

Which of the following is a disadvantage of enterprise resource planning (ERP)systems?

Accepted Answer

A) It is not beneficial to large corporations. 
B) It is not supported by cloud computing. 
C) Its implementation requires a large commitment of time and people. 
D) It uses separate software systems,such as sales and payroll. 
A) It is not beneficial to large corporations. 
B) It is not supported by cloud computing. 
C) Its implementation requires a large commitment of time and people. 
D) It uses separate software systems,such as sales and payroll.

Question 12

On July 10,a hardware retailer purchased merchandise inventory on account for $1,700.The company plans to pay $900 the following week and the remaining amount the week after.Which of the following is the correct entry to record this transaction in a purchases journal? Assume a perpetual inventory system is used.

Accepted Answer

A) $850 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column. 
B) $2,600 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column. 
C) $1,700 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column. 
D) $1,700 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column. 
A) $850 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column. 
B) $2,600 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column. 
C) $1,700 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column. 
D) $1,700 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column.

Question 13

The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 14

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

Accepted Answer

A) True 
 B)False

Question 15

Because of the risk of fraud,electronic invoices and electronic receiving reports are seldom used in accounting information systems.

Accepted Answer

A) True 
 B)False

Question 16

After posting entries in a sales journal to the general ledger,the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 17

The sale of merchandise inventory for cash is recorded in the ________.

Accepted Answer

A) general journal 
B) cash receipts journal 
C) sales journal 
D) accounts receivable journal 
A) general journal 
B) cash receipts journal 
C) sales journal 
D) accounts receivable journal

Question 18

In the cash receipts journal,the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns)of the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 19

Journalize the above transactions that should be recorded in the general journal.If a transaction should not be recorded in the general journal,identify the special journal that should be used.Assume the company uses the perpetual inventory system.

Accepted Answer

\[\begin{array} { | c | l | r | r | } 
\

Question 20

A business must only invest in an accounting information system in which the benefits received outweigh the cost of the system.

Accepted Answer

A) True 
 B)False

Exam 27: Accounting Information Systems

In a cash receipts journal,________.

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

A subsidiary ledger is ________.

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

Purchases on account are recorded in the purchases journal.

All transactions are recorded in either one of the special journals or in the general journal,but not both.

The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.

In a computerized accounting information system,all data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses.

Which of the following is true of the comparison between a manual and a computerized accounting information system?

Which of the following is true of a sales journal prepared under the perpetual inventory system?

Which of the following is a disadvantage of enterprise resource planning (ERP)systems?

The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts in the accounts receivable subsidiary ledger.

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

Because of the risk of fraud,electronic invoices and electronic receiving reports are seldom used in accounting information systems.

After posting entries in a sales journal to the general ledger,the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

The sale of merchandise inventory for cash is recorded in the ________.

In the cash receipts journal,the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns)of the cash receipts journal.

Journalize the above transactions that should be recorded in the general journal.If a transaction should not be recorded in the general journal,identify the special journal that should be used.Assume the company uses the perpetual inventory system.

A business must only invest in an accounting information system in which the benefits received outweigh the cost of the 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

Filters