FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Accounting Information Systems

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

The control principle for accounting information systems requires that the:

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) C) and D)
G) A) and C)

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

External users of financial statements are generally interested in segment information to understand a company's business activities.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

Essay

Review LaterAdd Note

Discuss how technology based information systems affect accounting.

Output devices include journal entries, keyboards and scanners.

The accounts receivable ledger:

All of the following statements regarding source documents are true except:

Match the following accounting system components a-e with their related items 1-10 by placing the correct letter next to each item. a. Source documents b. Input devices c. Information processor d. Information storage e. Output devices _____ 1. Computer keyboard 2. Computer hard drive _____ 3. Journal entries _____ 4. Journals _____ 5. Financial statements _____ 6. Invoice from suppliers _____ 7. Employee paychecks _____ 8. Computer monitor _____ 9. Software _____ 10. Electronic files

Alex Reagent, owner of Delectable Candy Company, understands that accounting systems are important for success. Explain how Alex can use the accounting system to assess business operations.

Computer networks are links among computers giving different users and different computers access to common databases, programs, and hardware.

The five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.

______________are the part of the accounting information system that interprets, transforms, and summarizes information for use in analysis and reporting.

The following information is available for Napa, Inc. (all amounts are in millions): $\begin{array} { | l | r | r | r | } \hline& \text { U.s. } & \text { Canada. } & \text { Europe } \\\hline \text { Segment sales } & \$ 7,745 & \$ 8,940 & \$ 4.780 \\\hline \text { Segment operating income } & 2,320 & 2,455 & 595 \\\hline \text { Segment average assets } & 5,590 &8 . 7 5 0 & 1,480 \\\hline\end{array}$ a. Determine the segment return on assets for each geographic segment. b. Comment on the results. How do the segments compare with respect to profitability?

A______________ is an all-purpose journal that can record any type of transaction.

Individual transactions in the purchases journal are regularly posted to creditor accounts in the accounts payable ledger.

If a company issues a check for $2,900 in payment of merchandise, identify the journal the transaction would be recorded in:

The ________ ratio is a measure of a segment's profitability and is calculated as segment operating income divided by segment average assets.

Which of the following journals would a company use to record a merchandise return?

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.

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

Two common subsidiary ledgers are cash receipts and cash disbursements.