Question 1

A trial balance is completed after posting but before proving the subsidiary ledger by preparing a schedule of the controlling account.

Accepted Answer

A) True 
 B)False

Question 2

Flavor Ice Cream received a payment of $7,800 from a credit customer within the discount period. Identify the journal the transaction would be recorded in:

Accepted Answer

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

Question 3

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.F) B) and D)
G) A) and D)

Question 4

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

Question 5

Enterprise resource planning software is primarily used for recording journal entries.

Accepted Answer

A) True 
 B)False

Question 6

Accounting information processes are structured to eliminate the need for professional judgment.

Accepted Answer

A) True 
 B)False

Question 7

Three transactions that would be recorded in the sales journal are: (1)recording sales taxes (2)recording sales returns and allowances and (3)recording purchases discounts.

Accepted Answer

A) True 
 B)False

Question 8

The sales journals of companies using the perpetual and periodic inventory systems differ in that under the perpetual system a column is used to record cost of goods sold and inventory amounts for each sale but not the periodic system.

Accepted Answer

A) True 
 B)False

Question 9

When posting from special journals, each individual debit and credit entry of similar transactions is entered in the general ledger.

Accepted Answer

A) True 
 B)False

Question 10

Control, competency, compatibility, flexibility and cost-benefit are the five basic principles of accounting information systems.

Accepted Answer

A) True 
 B)False

Question 11

An accounts receivable ledger is a:

Accepted Answer

A)  List of the separate accounts that show the balances outstanding from credit customers.
B)  Book of original entry that is designed and used for recording only sales on credit.
C)  Ledger that contains all financial statement accounts of a business.
D)  Subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company.
E)  Subsidiary ledger that contains an account for each supplier (creditor) .F) A) and B)
G) A) and C)

Question 12

A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n) :

Accepted Answer

A)  Controlling account.
B)  Special journal.
C)  Accounts receivable ledger.
D)  General ledger.
E)  Accounts payable ledger.F) B) and D)
G) A) and C)

Question 13

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Accepted Answer

A) True 
 B)False

Question 14

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

Accepted Answer

A) True 
 B)False

Question 15

An advantage of online processing is that databases are updated in batches.

Accepted Answer

A) True 
 B)False

Question 16

The control principle for accounting information systems requires that the:

Accepted Answer

A)  System report useful, understandable, timely, and pertinent information for effective decision making.
B)  System be able to adjust to changes in the company, business environment, and needs of decision makers.
C)  System conforms to a company's activities, personnel, and structure.
D)  Benefits from an activity outweigh the costs of the activity.
E)  System must have methods and procedures allowing managers to control and monitor business activities.F) A) and B)
G) A) and C)

Question 17

The accounts receivable ledger is used for storing transactions data regarding individual customers.

Accepted Answer

A) True 
 B)False

Question 18

A company that reports segment information had average total assets of $1,522,450 and total net income of $590,700. Segment A had average total assets of $927,800 and segment operating income of $298,300. Segment B had average assets of $594,650 and segment operating income of $292,400. The segment return on assets for Segment B is:

Accepted Answer

A)  60.9%.
B)  50.5%.
C)  32.2%.
D)  38.8%.
E)  49.2%.F) A) and B)
G) D) and E)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The five fundamental principles of accounting information systems are:

Accepted Answer

A)  Historical cost, relevance, compatibility, flexibility, and cost-benefit.
B)  Control, relevance, compatibility, flexibility, and safety.
C)  Historical cost, relevance, compatibility, timeliness, and cost-benefit.
D)  Control, accountability, relevance, compatibility, and flexibility.
E)  Control, relevance, compatibility, flexibility, and cost-benefit.F) None of the above
G) C) and D)

Exam 7: Accounting Information Systems

A trial balance is completed after posting but before proving the subsidiary ledger by preparing a schedule of the controlling account.

Correct Answer
verified

The five fundamental principles of accounting information systems are:

Correct Answer
verified

An accounts receivable ledger is a:

Correct Answer
verified

The accounts receivable ledger is used for storing transactions data regarding individual customers.

Correct Answer
verified

Control, competency, compatibility, flexibility and cost-benefit are the five basic principles of accounting information systems.

Correct Answer
verified

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

Correct Answer
verified

The control principle for accounting information systems requires that the:

Correct Answer
verified

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

Correct Answer
verified

Accounting information processes are structured to eliminate the need for professional judgment.

Correct Answer
verified

Three transactions that would be recorded in the sales journal are: (1)recording sales taxes (2)recording sales returns and allowances and (3)recording purchases discounts.

Correct Answer
verified

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

Correct Answer
verified

Enterprise resource planning software is primarily used for recording journal entries.

Correct Answer
verified

The sales journals of companies using the perpetual and periodic inventory systems differ in that under the perpetual system a column is used to record cost of goods sold and inventory amounts for each sale but not the periodic system.

Correct Answer
verified

A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n) :

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

When posting from special journals, each individual debit and credit entry of similar transactions is entered in the general ledger.

Correct Answer
verified

Flavor Ice Cream received a payment of $7,800 from a credit customer within the discount period. Identify the journal the transaction would be recorded in:

Correct Answer
verified

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Correct Answer
verified

An advantage of online processing is that databases are updated in batches.

Correct Answer
verified

Exam 7: Accounting Information Systems

A trial balance is completed after posting but before proving the subsidiary ledger by preparing a schedule of the controlling account.

Correct AnswerverifiedShow Answer

The five fundamental principles of accounting information systems are:

Correct AnswerverifiedShow Answer

An accounts receivable ledger is a:

Correct AnswerverifiedShow Answer

The accounts receivable ledger is used for storing transactions data regarding individual customers.

Correct AnswerverifiedShow Answer

Control, competency, compatibility, flexibility and cost-benefit are the five basic principles of accounting information systems.

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

The control principle for accounting information systems requires that the:

Correct AnswerverifiedShow Answer

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

Correct AnswerverifiedShow Answer

Accounting information processes are structured to eliminate the need for professional judgment.

Correct AnswerverifiedShow Answer

Three transactions that would be recorded in the sales journal are: (1)recording sales taxes (2)recording sales returns and allowances and (3)recording purchases discounts.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Enterprise resource planning software is primarily used for recording journal entries.

Correct AnswerverifiedShow Answer

The sales journals of companies using the perpetual and periodic inventory systems differ in that under the perpetual system a column is used to record cost of goods sold and inventory amounts for each sale but not the periodic system.

Correct AnswerverifiedShow Answer

A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When posting from special journals, each individual debit and credit entry of similar transactions is entered in the general ledger.

Correct AnswerverifiedShow Answer

Flavor Ice Cream received a payment of $7,800 from a credit customer within the discount period. Identify the journal the transaction would be recorded in:

Correct AnswerverifiedShow Answer

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Correct AnswerverifiedShow Answer

An advantage of online processing is that databases are updated in batches.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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