Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The purchases journal is used to record cash purchases of merchandise.

Accepted Answer

A) True 
 B)False

Question 3

Input devices are the means to make accounting information available to users.

Accepted Answer

A) True 
 B)False

Question 4

Enterprise resource planning software packages include the programs that manage a company's vital operations.

Accepted Answer

A) True 
 B)False

Question 5

For a retailer required to collect sales taxes from customers, all of the following adaptations would be made to the sales journal except:

Accepted Answer

A)   Column totals would continue to be posted as usual.
B)   A Sales Taxes Payable credit column would be added.
C)   There would be a separate Accounts Receivable debit column.
D)   A Sales Taxes Payable debit column would be added.
E)   There would be a separate Sales credit column.F) B) and D)
G) C) and D)

Question 6

Lester Company uses special journals to record transactions. All of the companies listed below supply inventory to Lester except Harry Co. that supplies equipment. Use the purchases journal given below to answer the following questions:
a. Foot and crossfoot the journal for accuracy.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> b. Identify the error and indicate how ...

Question 7

A company records its transactions and events in four special journals and a general journal. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Accepted Answer

The answer of A company records its transactions and events...

Question 8

A company issued a check for $7,900 in payment of merchandise. Identify the journal the transaction would be recorded in.

Accepted Answer

A)   Cash disbursements journal.
B)   Sales journal.
C)   Cash receipts journal.
D)   Purchases journal.
E)   General journal.F) C) and D)
G) All of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

Accepted Answer

A) True 
 B)False

Question 11

An accounts receivable ledger is:

Accepted Answer

A)   A subsidiary ledger that contains an account for each credit customer.
B)   A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding.
C)   A book of original entry that is designed and used for recording only a specified type of transaction.
D)   The ledger that contains the financial statement accounts of a business.
E)   A subsidiary ledger that contains a separate account for each creditor (supplier)  to the company.F) C) and D)
G) A) and B)

Question 12

What are the five basic components of accounting information systems

Accepted Answer

The five basic components of a...

Question 13

A __________________ is an all-purpose journal that can record any transaction.

Accepted Answer

The answer of A __________________ is an all-purpose journal that...

Question 14

Input devices include:

Accepted Answer

A)   Bar-code readers.
B)   Printers.
C)   Software.
D)   Ledgers.
E)   Information processors.F) C) and E)
G) B) and E)

Question 15

A company received payment of $9,800 from a customer within the discount period. Identify the journal the transaction would be recorded in.

Accepted Answer

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

Question 16

The segment return on assets:

Accepted Answer

A)   Can only be determined for international companies.
B)   Reflects the profitability of a segment.
C)   Is difficult to calculate because companies with traded stock are not required to report segment information.
D)   Is calculated as segment average assets divided by segment operating income.
E)   Is calculated as segment sales divided by segment average assets.F) B) and E)
G) C) and E)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

___________________ processing enters and processes data as soon as source documents are available.

Accepted Answer

The answer of ___________________ processing enters and processes data as...

Question 19

Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May:  Record these transactions in the following journals.

Accepted Answer

The answer of Renton Co. uses special journals to record...

Question 20

Input devices include journal entries, keyboards, scanners, and modems.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

A __________________ is an all-purpose journal that can record any transaction.

Correct AnswerverifiedShow Answer

Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May: Record these transactions in the following journals.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the five basic components of accounting information systems

Correct AnswerverifiedThe five basic components of a...View AnswerShow Answer

Input devices include journal entries, keyboards, scanners, and modems.

Correct AnswerverifiedShow Answer

The purchases journal is used to record cash purchases of merchandise.

Correct AnswerverifiedShow Answer

A company received payment of $9,800 from a customer within the discount period. Identify the journal the transaction would be recorded in.

Correct AnswerverifiedShow Answer

Input devices are the means to make accounting information available to users.

Correct AnswerverifiedShow Answer

Lester Company uses special journals to record transactions. All of the companies listed below supply inventory to Lester except Harry Co. that supplies equipment. Use the purchases journal given below to answer the following questions: a. Foot and crossfoot the journal for accuracy.

Correct Answerverified b. Identify the error and indicate how ...View AnswerShow Answer

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

Correct AnswerverifiedShow Answer

Enterprise resource planning software packages include the programs that manage a company's vital operations.

Correct AnswerverifiedShow Answer

Input devices include:

Correct AnswerverifiedShow Answer

___________________ processing enters and processes data as soon as source documents are available.

Correct AnswerverifiedShow Answer

A company records its transactions and events in four special journals and a general journal. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Correct AnswerverifiedShow Answer

The segment return on assets:

Correct AnswerverifiedShow Answer

A company issued a check for $7,900 in payment of merchandise. Identify the journal the transaction would be recorded in.

Correct AnswerverifiedShow Answer

An accounts receivable ledger is:

Correct AnswerverifiedShow Answer

For a retailer required to collect sales taxes from customers, all of the following adaptations would be made to the sales journal except:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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The five basic components of a...
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b. Identify the error and indicate how ...
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