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Match the Following Terms with the Appropriate Definitions

Question 28

Matching

Match the following terms with the appropriate definitions:

Premises:
An information system principle requiring that an accounting information system conform with a company's activities, personnel and structure
A journal used to record all purchases on credit
A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets
An information system principle requiring that the benefits from an activity in an accounting information system outweigh the costs of that activity
Any journal used for recording and posting transactions of a similar type
A journal used to record sales of merchandise on credit
The special journal that is used to record all receipts of cash
The component of an accounting system that keeps data in a form accessible to information processors
A general ledger account, the balance of which (after posting) equals the sum of the balances of the accounts in a related subsidiary ledger
A list of each customer from the accounts receivable ledger with their balances and the total
Responses:
Cost-benefit principle
Controlling account
Sales journal
Special journal
Cash receipts journal
Schedule of accounts receivable
Purchases journal
Information storage
Segment margin
Compatibility principle

Correct Answer:

An information system principle requiring that an accounting information system conform with a company's activities, personnel and structure
A journal used to record all purchases on credit
A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets
An information system principle requiring that the benefits from an activity in an accounting information system outweigh the costs of that activity
Any journal used for recording and posting transactions of a similar type
A journal used to record sales of merchandise on credit
The special journal that is used to record all receipts of cash
The component of an accounting system that keeps data in a form accessible to information processors
A general ledger account, the balance of which (after posting) equals the sum of the balances of the accounts in a related subsidiary ledger
A list of each customer from the accounts receivable ledger with their balances and the total
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