Question 1

Because accounting information systems are so accurate, decision makers in practice do not need to have a basic knowledge of how the systems work.

Accepted Answer

A) True 
 B)False

Question 2

A subsidiary ledger that contains a separate account for each party that grants credit on account to the business is called a(n)

Accepted Answer

A)  Controlling account 
B)  Accounts Receivable Ledger 
C)  Accounts Payable Ledger 
D)  Merchandise Inventory Ledger 
E)  Accounts Payable

Question 3

Trekking Company uses a perpetual inventory system and four special journals: Purchases, Sales, Cash Receipts, and Cash Disbursements. The following transactions were incurred during August:
  Record the above transactions in the appropriate journals that follow. Ignore any transactions that should not be posted to the journals provided.

Accepted Answer

The answer of Trekking Company uses a perpetual inventory system...

Question 4

A special journal is an all-purpose journal where we can record any other transactions not captured in special journals.

Accepted Answer

A) True 
 B)False

Question 5

Your neighbor runs a retail business and needs some advice. Her business is improving and she has several more financial transactions happening in the company. She discussed this situation with her accountant and he advised her to adopt special journals to make transaction recording more efficient. She is concerned that this creates a new learning curve for her bookkeeper who is already very busy. Your neighbor knows you are studying accounting and asks you what you know about the benefits of using special journals. How would you respond?

Accepted Answer

The answer of Your neighbor runs a retail business and...

Question 6

The ledger that contains the financial statement accounts of a business is the

Accepted Answer

A)  General Ledger 
B)  General Journal 
C)  Special Ledger 
D)  Special Journal 
E)  Column balance ledger

Question 7

An example of a specialty component of an AIS is

Accepted Answer

A)  Subsidiary ledger 
B)  Sales Journal 
C)  Property, plant and equipment 
D)  Cheque Register 
E)  Voucher

Question 8

In general, subsidiary ledgers are not needed in perpetual systems because the accounting system captures sufficient details to support analyses that decision makers need.

Accepted Answer

A) True 
 B)False

Question 9

The following transactions were completed by Augsburg Company during the month of May:
  Prepare a Cash Receipts Journal for Augsburg and record the appropriate transactions, assuming a perpetual inventory system is used.

Accepted Answer

The answer of The following transactions were completed by Augsburg...

Question 10

What are the primary components within an accounting information system?

Accepted Answer

The answer of What are the primary components within an...

Question 11

Elk Lake Adventure Co. uses special journals to record its transactions and a perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for May:
   Record the above transactions in the following journals.

Accepted Answer

The answer of Elk Lake Adventure Co. uses special journals...

Question 12

The Accounts Payable ledger has a controlling account in the General Ledger and a separate subsidiary account for each creditor in the Accounts Payable ledger.

Accepted Answer

A) True 
 B)False

Question 13

Enterprise-application software is a stand-alone program not commonly used in North America.

Accepted Answer

A) True 
 B)False

Question 14

The special journals under the perpetual inventory system

Accepted Answer

A)  Include an additional sales tax payable journal 
B)  Include the sales journal, cash receipts journal, purchases journal, and cash disbursements journal 
C)  Include an additional inventory journal 
D)  Include an additional cost of goods sold journal 
E)  Include both an additional inventory journal and an additional cost of goods sold journal

Question 15

Match between columns
                        Premises: Recorded cash sales of $14,700.
Paid $45,000 in wages and salaries.
Purchased merchandise on account, $2,700.
Paid a utility bill for $3,400.
Accrued wages, $2,900.
Purchased equipment on account for $24,700.
Sold $5,000 worth of inventory on account.
Recorded an adjustment to unearned revenue, $4,000.
A customer returned a $250 item purchased on account.
Purchased $1,590 of supplies on account.

Accepted Answer

The Answer of General Journal and Cash Disbursements Journal and is...

Question 16

Explain the goals and uses of special journals.

Accepted Answer

The answer of Explain the goals and uses of special...

Question 17

The periodic system does not record the increase in cost of goods sold and decrease in inventory at the time of sale.

Accepted Answer

A) True 
 B)False

Question 18

Accounting information systems collect and process data about transactions and events, organize them in useful forms, and communicate results to decision makers.

Accepted Answer

A) True 
 B)False

Question 19

The ledger that contains the financial statement accounts of a business is the

Accepted Answer

A)  Columnar journal 
B)  Accounts payable ledger 
C)  General journal 
D)  General ledger 
E)  Subsidiary ledger

Question 20

The Accounts Payable ledger is used for storing transaction data regarding individual customers.

Accepted Answer

A) True 
 B)False

Exam 11: Accounting Information Systems

Because accounting information systems are so accurate, decision makers in practice do not need to have a basic knowledge of how the systems work.

A subsidiary ledger that contains a separate account for each party that grants credit on account to the business is called a(n)

A special journal is an all-purpose journal where we can record any other transactions not captured in special journals.

The ledger that contains the financial statement accounts of a business is the

An example of a specialty component of an AIS is

In general, subsidiary ledgers are not needed in perpetual systems because the accounting system captures sufficient details to support analyses that decision makers need.

The following transactions were completed by Augsburg Company during the month of May: Prepare a Cash Receipts Journal for Augsburg and record the appropriate transactions, assuming a perpetual inventory system is used.

What are the primary components within an accounting information system?

Elk Lake Adventure Co. uses special journals to record its transactions and a perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for May: Record the above transactions in the following journals.

The Accounts Payable ledger has a controlling account in the General Ledger and a separate subsidiary account for each creditor in the Accounts Payable ledger.

Enterprise-application software is a stand-alone program not commonly used in North America.

The special journals under the perpetual inventory system

Wilchand Unlimited has the following transactions. Match each transaction with the appropriate journal.

Explain the goals and uses of special journals.

The periodic system does not record the increase in cost of goods sold and decrease in inventory at the time of sale.

Accounting information systems collect and process data about transactions and events, organize them in useful forms, and communicate results to decision makers.

The ledger that contains the financial statement accounts of a business is the

The Accounts Payable ledger is used for storing transaction data regarding individual customers.