Question 1

Which of the following is a column in a purchases journal?

Accepted Answer

A) Cost of Goods Sold CR 
B) Accounts Payable CR 
C) Sales Revenue DR 
D) Interest Revenue CR 
A) Cost of Goods Sold CR 
B) Accounts Payable CR 
C) Sales Revenue DR 
D) Interest Revenue CR

Question 2

Which of the following is an example of a source document in a computerized accounting information system?

Accepted Answer

A) statement of cash flows 
B) balance sheet 
C) bank checks 
D) general ledger 
A) statement of cash flows 
B) balance sheet 
C) bank checks 
D) general ledger

Question 3

In an accounting information system,source documents are the documents which ________.

Accepted Answer

A) are audited and presented to the Securities and Exchange Commission 
B) detail the strategic planning of the business 
C) have complete information about the financial statements 
D) provide the evidence for accounting transactions 
A) are audited and presented to the Securities and Exchange Commission 
B) detail the strategic planning of the business 
C) have complete information about the financial statements 
D) provide the evidence for accounting transactions

Question 4

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 5

Which of the following is an advantage of enterprise resource planning (ERP)systems?

Accepted Answer

A) It is inexpensive to implement. 
B) It provides financial benefits only to small corporations. 
C) It replaces separate software systems,such as sales and payroll. 
D) Its implementation requires smaller commitment of time and people. 
A) It is inexpensive to implement. 
B) It provides financial benefits only to small corporations. 
C) It replaces separate software systems,such as sales and payroll. 
D) Its implementation requires smaller commitment of time and people.

Question 6

Which of the following is true of posting entries from a cash payments journal?

Accepted Answer

A) Entries in the cash payments journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger. 
B) The postings of accounts payable are credits and increase the balance in the individual accounts payable account. 
C) After posting the payment of accounts payable,a checkmark is entered in the cash payments journal and the posting reference is printed in the subsidiary ledger. 
D) At the end of the month,each column is totaled and the totals,including the Other Accounts DR column,are posted to the specific general ledger accounts. 
A) Entries in the cash payments journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger. 
B) The postings of accounts payable are credits and increase the balance in the individual accounts payable account. 
C) After posting the payment of accounts payable,a checkmark is entered in the cash payments journal and the posting reference is printed in the subsidiary ledger. 
D) At the end of the month,each column is totaled and the totals,including the Other Accounts DR column,are posted to the specific general ledger accounts.

Question 7

On April 1,a hardware retailer purchases inventory on account for $1,500.Which of the following correctly describes the effect of this transaction? Assume a perpetual inventory system is used.

Accepted Answer

A) Merchandise Inventory decreases by $1,500 and Accounts Receivable decreases by $1,500. 
B) Merchandise Inventory decreases by $1,500 and Accounts Receivable increases by $1,500. 
C) Merchandise Inventory increases by $1,500 and Accounts Payable decreases by $1,500. 
D) Merchandise Inventory increases by $1,500 and Accounts Payable increases by $1,500. 
A) Merchandise Inventory decreases by $1,500 and Accounts Receivable decreases by $1,500. 
B) Merchandise Inventory decreases by $1,500 and Accounts Receivable increases by $1,500. 
C) Merchandise Inventory increases by $1,500 and Accounts Payable decreases by $1,500. 
D) Merchandise Inventory increases by $1,500 and Accounts Payable increases by $1,500.

Question 8

The main computer where data is stored,which can be accessed from many different computers is known as a(n)________.

Accepted Answer

A) internet protocol 
B) RAM 
C) server 
D) router 
A) internet protocol 
B) RAM 
C) server 
D) router

Question 9

Unlike the sales journal,entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

Accepted Answer

A) approval of new employees 
B) receipt of customer payment 
C) processing of vendor invoices 
D) payment for goods or services 
A) approval of new employees 
B) receipt of customer payment 
C) processing of vendor invoices 
D) payment for goods or services

Question 11

State the purpose of a subsidiary ledger? What is included in the accounts receivable subsidiary ledger?

Accepted Answer

A subsidiary ledger is a record of accou

Question 12

$$\begin{array} { | l | l | } 
\hline \text { oct } 1 & \text { Purchased merchandise inventory on account with credit terms of } 1 / 10 , \mathrm { n } / 30 \text { from Rice } \
& \text { Co., } \$ 2,100 . \
\hline 10 & \text { Purchased office supplies on account from MET Co., } \$ 250 \text {. Terms were n/EOM. } \
\hline 26 & \text { Purchased furniture on account with credit terms of } 2 / 10 , \mathrm { n } / 60 \text { from Ocean Co., } \$ 1,700 \
\hline & \
\hline
\end{array}$$ Use the following purchases journal to record the preceding transactions.

Accepted Answer

The answer of \[\begin{array} { | l | l |...

Question 13

Which of the following is an example of a source document in a computerized accounting information system?

Accepted Answer

A) purchase invoices 
B) balance sheet 
C) cash payments journal 
D) income statement 
A) purchase invoices 
B) balance sheet 
C) cash payments journal 
D) income statement

Question 14

Use the following cash receipts journal to record the preceding transactions.
 $$\begin{array}{l}
\text { Cris Rereipts Jaurazl }\
\begin{array} { l | c | c | c | c | c | c | c | c } 
\hline \text { Date } & \begin{array} { c } 
\text { Accounts } \
\text { Credited }
\end{array} & \begin{array} { c } 
\text { Post } \
\text { Ref. }
\end{array} & \begin{array} { c } 
\text { Cash } \
\text { DR }
\end{array} & \begin{array} { c } 
\text { Sales } \
\text { Discounts } \
\text { DR }
\end{array} & \begin{array} { c } 
\text { Accounts } \
\text { Receivable } \
\text { CR }
\end{array} & \begin{array} { c } 
\text { Sales } \
\text { Revenue } \
\text { CR }
\end{array} & \begin{array} { c } 
\text { Other } \
\text { Accounts } \
\text { CR }
\end{array} & \begin{array} { c } 
\text { Cost of Goods } \
\text { Sold DR } \
\text { Merchandise } \
\text { Inventory CR }
\end{array} \
\hline & & & & & & & & \
\hline & & & & & & & & \
\hline
\end{array}
\end{array}$$

Accepted Answer

The answer of   Use the following cash receipts...

Question 15

Cash purchases are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 16

List and briefly discuss the two basic components of a computerized accounting information system.

Accepted Answer

Hardware is the electronic equipment tha

Question 17

In cloud computing,the software and data are stored on the company's server instead of a third-party server.

Accepted Answer

A) True 
 B)False

Question 18

Cash purchases are generally recorded in the ________.

Accepted Answer

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

Question 19

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 20

When using a computerized accounting information system,transactions do not need to be recorded in a debit and credit format.

Accepted Answer

A) True 
 B)False

Exam 27: Accounting Information Systems

Which of the following is a column in a purchases journal?

Which of the following is an example of a source document in a computerized accounting information system?

In an accounting information system,source documents are the documents which ________.

Adjusting entries are recorded in the ________.

Which of the following is an advantage of enterprise resource planning (ERP)systems?

Which of the following is true of posting entries from a cash payments journal?

On April 1,a hardware retailer purchases inventory on account for $1,500.Which of the following correctly describes the effect of this transaction? Assume a perpetual inventory system is used.

The main computer where data is stored,which can be accessed from many different computers is known as a(n)________.

Unlike the sales journal,entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

State the purpose of a subsidiary ledger? What is included in the accounts receivable subsidiary ledger?

Which of the following is an example of a source document in a computerized accounting information system?

Use the following cash receipts journal to record the preceding transactions. Cris Rereipts Jaurazl Date Accounts Credited Post Ref. Cash DR Sales Discounts DR Accounts Receivable CR Sales Revenue CR Other Accounts CR Cost of Goods Sold DR Merchandise Inventory CR

Cash purchases are recorded in the purchases journal.

List and briefly discuss the two basic components of a computerized accounting information system.

In cloud computing,the software and data are stored on the company's server instead of a third-party server.

Cash purchases are generally recorded in the ________.

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

When using a computerized accounting information system,transactions do not need to be recorded in a debit and credit format.

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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