Question 1

What is footing and crossfooting of the column totals in special journals? What is the purpose?

Accepted Answer

To foot a column of numbers is to add it...

Question 2

Subsidiary ledgers do all of the following except:

Accepted Answer

A)   Help with division of labor (recordkeeping tasks) .
B)   Aid in error identification for individual accounts.
C)   Eliminate the need for individual postings to the customer or supplier accounts.
D)   Remove excessive detail from the general ledger.
E)   Provide up-to-date information on customer or other specific account balances.F) A) and E)
G) A) and B)

Question 3

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 A is:

Accepted Answer

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

Question 4

Chandler Company sold merchandise on credit to Jamie Morgan for $700 and the cost of the merchandise was $290. Chandler would record this sale in the:

Accepted Answer

A)   General journal.
B)   Accounts Receivable controlling account.
C)   General ledger.
D)   Sales journal.
E)   Cash receipts journal.F) A) and D)
G) None of the above

Question 5

Which of the following statements regarding accounting information systems is not true?

Accepted Answer

A)   Accounting information systems cannot improve on a company's competitive edge.
B)   Accounting information systems are designed to capture information about a company's transactions.
C)   Accounting information systems are more important than ever to decision makers.
D)   Accounting information systems consist of people, records, methods, and equipment.
E)   Accounting information systems are designed to provide output including financial, managerial, and tax reports.F) A) and B)
G) A) and D)

Question 6

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) C) and D)

Question 7

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) B) and D)
G) A) and B)

Question 8

Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decision makers.

Accepted Answer

A) True 
 B)False

Question 9

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) All of the above
G) None of the above

Question 10

Decision makers in practice do not need a basic knowledge of how accounting information systems work because they can be relied upon to be accurate.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

Enterprise resource planning software packages include the programs that manage a company's vital operations such as accounting, order taking, and manufacturing.

Accepted Answer

A) True 
 B)False

Question 14

Describe the posting process for special journals.

Accepted Answer

Posting to special journals is a three-s...

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The ________ principle requires that an accounting information system must be able to adapt to changes in the company, business environment, and needs of decision makers.

Accepted Answer

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

Question 17

Special journals allow an efficient division of labor, which is also an effective control procedure.

Accepted Answer

A) True 
 B)False

Question 18

Chandler Company purchased merchandise on credit from Lighting Supply for $5,600. Chandler would record this sale in the:

Accepted Answer

A)   Purchases journal.
B)   Cash receipts journal.
C)   General journal.
D)   Cash disbursements journal.
E)   Accounts Payable controlling account.F) A) and B)
G) B) and D)

Question 19

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:

Accepted Answer

A)   $2,600 in the Cash Dr. column. $2,600 in the Sales Cr. column, and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.
B)   $2,574 in the Cash Dr. column, $26 in the Sales Discount Dr. column and $2,600 in the Accounts Receivable Cr. column.
C)   $2,574 in the Cash Dr. column and $2,574 in the Accounts Receivable Cr. column.
D)   $2,600 in the Cash Dr. column and $2,600 in the Accounts Receivable Cr. column.
E)   $2,600 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cash Cr. column.F) B) and D)
G) C) and D)

Question 20

Explain how the amounts in the subsidiary ledgers are proved (or reviewed) for accuracy.

Accepted Answer

First, a trial balance of the general le...

Exam 7: Accounting Information Systems

Correct Answer
verified

What is footing and crossfooting of the column totals in special journals? What is the purpose?

Correct Answer
verified
To foot a column of numbers is to add it...
View Answer

Correct Answer
verified

Subsidiary ledgers do all of the following except:

Correct Answer
verified

Chandler Company purchased merchandise on credit from Lighting Supply for $5,600. Chandler would record this sale in the:

Correct Answer
verified

Which of the following statements regarding accounting information systems is not true?

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

Enterprise resource planning software packages include the programs that manage a company's vital operations such as accounting, order taking, and manufacturing.

Correct Answer
verified

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

Correct Answer
verified

Special journals allow an efficient division of labor, which is also an effective control procedure.

Correct Answer
verified

Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decision makers.

Correct Answer
verified

The ________ principle requires that an accounting information system must be able to adapt to changes in the company, business environment, and needs of decision makers.

Correct Answer
verified

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:

Correct Answer
verified

Chandler Company sold merchandise on credit to Jamie Morgan for $700 and the cost of the merchandise was $290. Chandler would record this sale in 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

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

Correct Answer
verified

Decision makers in practice do not need a basic knowledge of how accounting information systems work because they can be relied upon to be accurate.

Correct Answer
verified

The five fundamental principles of accounting information systems are:

Correct Answer
verified

Explain how the amounts in the subsidiary ledgers are proved (or reviewed) for accuracy.

Correct Answer
verified
First, a trial balance of the general le...
View Answer

Describe the posting process for special journals.

Correct Answer
verified
Posting to special journals is a three-s...
View Answer

Exam 7: Accounting Information Systems

Correct AnswerverifiedShow Answer

What is footing and crossfooting of the column totals in special journals? What is the purpose?

Correct AnswerverifiedTo foot a column of numbers is to add it...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Subsidiary ledgers do all of the following except:

Correct AnswerverifiedShow Answer

Chandler Company purchased merchandise on credit from Lighting Supply for $5,600. Chandler would record this sale in the:

Correct AnswerverifiedShow Answer

Which of the following statements regarding accounting information systems is not true?

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

Enterprise resource planning software packages include the programs that manage a company's vital operations such as accounting, order taking, and manufacturing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Special journals allow an efficient division of labor, which is also an effective control procedure.

Correct AnswerverifiedShow Answer

Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decision makers.

Correct AnswerverifiedShow Answer

The ________ principle requires that an accounting information system must be able to adapt to changes in the company, business environment, and needs of decision makers.

Correct AnswerverifiedShow Answer

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:

Correct AnswerverifiedShow Answer

Chandler Company sold merchandise on credit to Jamie Morgan for $700 and the cost of the merchandise was $290. Chandler would record this sale in 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

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

Correct AnswerverifiedShow Answer

Decision makers in practice do not need a basic knowledge of how accounting information systems work because they can be relied upon to be accurate.

Correct AnswerverifiedShow Answer

The five fundamental principles of accounting information systems are:

Correct AnswerverifiedShow Answer

Explain how the amounts in the subsidiary ledgers are proved (or reviewed) for accuracy.

Correct AnswerverifiedFirst, a trial balance of the general le...View AnswerShow Answer

Describe the posting process for special journals.

Correct AnswerverifiedPosting to special journals is a three-s...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
To foot a column of numbers is to add it...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
First, a trial balance of the general le...
View Answer

Correct Answer
verified
Posting to special journals is a three-s...
View Answer