Question 1

If the total balance of the accounts payable ledger equals the total of the controlling Accounts Payable account, then the accounts are presumed to be correct.

Accepted Answer

A) True 
 B)False

Question 2

Barrier Scuba Equipment purchased supplies costing $3,000 on credit. Identify the journal the transaction would be recorded in:

Accepted Answer

A)  General journal. 
B)  Cash receipts journal. 
C)  Cash disbursements journal. 
D)  Purchases journal. 
E)  Sales journal.

Question 3

The ________ principle requires that the benefits from an activity in an accounting information system outweigh the costs of that activity.

Accepted Answer

The answer of The ________ principle requires that the benefits...

Question 4

Equipment, inventory, and investments are other accounts that can include detailed information in a subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 5

Match between columns
                        Premises:  Computer keyboard
 Computer hard drive
 Journal entries
 Journals
 Financial statements
 Invoice from suppliers
 Employee paychecks
 Computer monitor
 Software
 Electronic files

Accepted Answer

The Answer of Source documents and Input devices and Information is...

Question 6

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

Accepted Answer

The answer of What are controlling accounts and subsidiary ledgers?...

Question 7

Alani's Hawaiian segment had revenues of $2,075 million, operating income of $1,500 million, and average assets of $1,450 million. The Hawaiian segment return on assets is:

Accepted Answer

A)  138.3% 
B)  69.9% 
C)  96.7% 
D)  72.3% 
E)  103.4%

Question 8

The ________ principle requires that an accounting information system conforms with a company's activities, personnel, and structure, and must adapt to a company's unique characteristics.

Accepted Answer

The answer of The ________ principle requires that an accounting...

Question 9

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

Accepted Answer

A) True 
 B)False

Question 10

When posting the sales journal's activity at the end of the month, its totals are:

Accepted Answer

A)  Debited to Sales and credited to Accounts Receivable. 
B)  Debited to Accounts Receivable and credited to Sales. 
C)  Debited to Accounts Receivable and credited to Cash. 
D)  Debited to Cash and credited to Accounts Receivable. 
E)  Debited to Cash and credited to Sales.

Question 11

Match between columns
                        Premises:  The special journal used to record all receipts of cash.
 A journal with more than one column for recording data.
 A record of the separate accounts of each credit customer that is controlled by a general ledger account.
 A journal used to record all purchases on credit.
 A journal used to record sales of merchandise on credit.
 A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets.
 A special journal used to record all payments of cash.
 Any journal used for recording and posting transactions of a similar type.
 A general ledger account, the balance of which, after posting, equals the sum of the balances of the accounts in its related subsidiary ledger.
 A list of each customer from the accounts payable ledger with their balances and the total.

Accepted Answer

The Answer of Sales journal and Controlling account and Accounts is...

Question 12

Match the following terms with the appropriate definitions.
a. Sales journal
b. Controlling account
c. Accounts receivable ledger
d. Cash disbursements journal
e. Cash receipts journal
f. Schedule of accounts payable
g. Segment return on assets
h. Columnar journal
i. Special journal
j. Purchases journal
_____ 1. The special journal used to record all receipts of cash.
_____ 2. A journal with more than one column for recording data.
_____ 3. A record of the separate accounts of each credit customer that is controlled by a general
ledger account.
_____ 4. A journal used to record all purchases on credit.
_____ 5. A journal used to record sales of merchandise on credit.
6. A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets.
7. A special journal used to record all payments of cash.
_____ 8. Any journal used for recording and posting transactions of a similar type.
_____ 9. A general ledger account, the balance of which, after posting, equals the sum of the balances of the accounts in its related subsidiary ledger.
_____ 10. A list of each customer from the accounts payable ledger with their balances and the total.

Accepted Answer

The answer of Match the following terms with the appropriate...

Question 13

Segment return on assets is calculated by dividing segment average assets by segment operating income.

Accepted Answer

A) True 
 B)False

Question 14

Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $9,300. Three days later, the company returned $1,100 of the merchandise. When recording the return transaction, the company would record:

Accepted Answer

A)  Debit Cash $1,100 and credit Inventory $1,100 in the general journal. 
B)  $1,100 in the Accounts Payable Dr. column and $1,100 in the Cash Cr. column of the cash disbursements journal. 
C)  $1,100 in the Accounts Payable Cr. column and $1,100 in the Inventory Dr. column of the purchases journal. 
D)  $1,100 in the Cash Cr. column and $1,100 in the Inventory Cr. column in the cash disbursements journal. 
E)  Debit Accounts Payable $1,100 and credit Inventory $1,100 in the general journal.

Question 15

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

Accepted Answer

A)  When the creditors receive their payments. 
B)  When the sum of the vendor accounts does not equal the balance in the Purchases journal. 
C)  When the purchases journal is posted to the general ledger. 
D)  When the financial statements are prepared. 
E)  When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account.

Question 16

The following information is available for Soda Station, Inc. (all amounts are in millions):
 $$\begin{array} { | l | r | r | r | } 
\hline & \text { U.S. } & \text { Canada } & \text { Mexico } \
\hline \text { Segment sales } & \$ 6,300 & \$ 5,200 & \$ 3,800 \
\hline \text { Segment operating income } & 2,120 & 2,240 & 1,200 \
\hline \text { Segment average assets } & 3 , 8 0 0& 4,200 & 2,800 \
\hline
\end{array}$$ a. Determine the segment return on assets for each geographic segment.

b. What measures could be taken to improve segment return?

Accepted Answer

The answer of The following information is available for Soda...

Question 17

List the five basic principles of accounting information systems.

Accepted Answer

The answer of List the five basic principles of accounting...

Question 18

A schedule of accounts receivable is a listing of all customer accounts and account balances.

Accepted Answer

A) True 
 B)False

Question 19

Information processors are systems that:

Accepted Answer

A)  Keep data in an accessible form. 
B)  Interpret, transform, and summarize information for use in analysis and reporting. 
C)  Capture information from source documents. 
D)  Eliminate the need for professional judgment due to their accuracy. 
E)  Are the means to make information available to users.

Question 20

What is the segment return on assets ratio? What is it used for?

Accepted Answer

The answer of What is the segment return on assets...

Exam 7: Accounting Information Systems

If the total balance of the accounts payable ledger equals the total of the controlling Accounts Payable account, then the accounts are presumed to be correct.

Barrier Scuba Equipment purchased supplies costing $3,000 on credit. Identify the journal the transaction would be recorded in:

The ________ principle requires that the benefits from an activity in an accounting information system outweigh the costs of that activity.

Equipment, inventory, and investments are other accounts that can include detailed information in a subsidiary ledger.

Match the following items with their related accounting system components

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

Alani's Hawaiian segment had revenues of $2,075 million, operating income of $1,500 million, and average assets of $1,450 million. The Hawaiian segment return on assets is:

The ________ principle requires that an accounting information system conforms with a company's activities, personnel, and structure, and must adapt to a company's unique characteristics.

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

When posting the sales journal's activity at the end of the month, its totals are:

Match the following definitions with the appropriate term

Segment return on assets is calculated by dividing segment average assets by segment operating income.

Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $9,300. Three days later, the company returned $1,100 of the merchandise. When recording the return transaction, the company would record:

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

List the five basic principles of accounting information systems.

A schedule of accounts receivable is a listing of all customer accounts and account balances.

Information processors are systems that:

What is the segment return on assets ratio? What is it used for?