Question 1

Source documents:

Accepted Answer

A)  Convert information to the system's processing component.
B)  Are input devices.
C)  Cannot be electronic files or web communications.
D)  Store processed information for future use.
E)  Provide the basic information processed by an accounting system.F) A) and C)
G) A) and B)

Question 2

Segment return on assets is calculated by dividing segment average assets by segment operating income.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

Most companies use online processing instead of batch processing because online processing immediately updates databases.

Accepted Answer

A) True 
 B)False

Question 5

A company makes a cash sale of $24,000. The cost of the merchandise is $13,000. Identify the journal the transaction would be recorded in:

Accepted Answer

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

Question 6

The process of adding the Debit column totals, then the credit column totals of a journal and comparing the two sums for equality is an example of:

Accepted Answer

A)  Reconciling.
B)  Journalizing.
C)  Footing.
D)  Crossfooting.
E)  Posting.F) A) and B)
G) C) and E)

Question 7

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) B) and C)
G) None of the above

Question 8

A list of all the accounts in the accounts receivable ledger with their balances and the total is a:

Accepted Answer

A)  Schedule of accounts receivable.
B)  Controlling account.
C)  Subsidiary ledger.
D)  Special journal.
E)  Schedule of accounts.F) B) and C)
G) A) and E)

Question 9

The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries.

Accepted Answer

A) True 
 B)False

Question 10

Explain the purposes, types, and uses of special journals.

Accepted Answer

Special journals are used for recording ...

Question 11

Posting debits from the Sales journal to Accounts Receivable twice-once to the general ledger account Accounts Receivable and once to the customer's subsidiary account-violates the accounting equation of debits equal credits.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a feature of special journals?

Accepted Answer

A)  They produce an efficient division of labor.
B)  They eliminate the need for a general journal.
C)  Good system design could collapse sales and cash receipts into one journal to better suit a business.
D)  They allow posting of amounts as column totals rather than as individual amounts.
E)  They are efficient tools in helping journalize and post transactions.F) A) and D)
G) A) and C)

Question 13

Which of the following is not a special journal:

Accepted Answer

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

Question 14

A columnar journal is any journal with only one column.

Accepted Answer

A) True 
 B)False

Question 15

Information processors are systems that:

Accepted Answer

A)  Keep data in an accessible form.
B)  Interpret, transform, and summarize information for use in analysis and reporting.
C)  Capture information from source documents.
D)  Eliminate the need for professional judgment due to their accuracy.
E)  Are the means to make information available to users.F) A) and C)
G) A) and B)

Question 16

Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter:

Accepted Answer

A)  $14,994 in the Inventory Dr. column and $14,994 in the Accounts Payable Cr. column.
B)  $15,300 in the Accounts Payable Cr. column and $15,300 in the Inventory Dr. column.
C)  $15,300 in the Accounts Payable Cr. column and $15,300 in the Supplies Dr. column.
D)  $15,300 in the Other Accounts Dr. column and $15,000 in the Inventory Cr. column.
E)  $15,300 in the Inventory Dr. column, $14,994 in the Accounts Payable Cr. column, and $306 in the Purchase Discount Cr. column.F) C) and D)
G) C) and E)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

Accepted Answer

A) True 
 B)False

Question 20

The Accounts Payable controlling account:

Accepted Answer

A)  Equals the sum of all balances of supplier accounts.
B)  Reduces the number of entries in the general journals.
C)  Increases the number of columns in the journals.
D)  Stores the transaction data of individual supplies.
E)  Is not included in a company's chart of accounts.F) A) and B)
G) A) and D)

Exam 7: Accounting Information Systems

A company makes a cash sale of $24,000. The cost of the merchandise is $13,000. Identify the journal the transaction would be recorded in:

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

Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter:

Correct AnswerverifiedShow Answer

The Accounts Payable controlling account:

Correct AnswerverifiedShow Answer

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

Correct AnswerverifiedShow Answer

Most companies use online processing instead of batch processing because online processing immediately updates databases.

Correct AnswerverifiedShow Answer

The general journal is used for transactions not covered by special journals and for adjusting, closing, and correcting entries.

Correct AnswerverifiedShow Answer

A columnar journal is any journal with only one column.

Correct AnswerverifiedShow Answer

The process of adding the Debit column totals, then the credit column totals of a journal and comparing the two sums for equality is an example of:

Correct AnswerverifiedShow Answer

A list of all the accounts in the accounts receivable ledger with their balances and the total is a:

Correct AnswerverifiedShow Answer

Source documents:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the purposes, types, and uses of special journals.

Correct AnswerverifiedSpecial journals are used for recording ...View AnswerShow Answer

Information processors are systems that:

Correct AnswerverifiedShow Answer

Which of the following is not a feature of special journals?

Correct AnswerverifiedShow Answer

Which of the following is not a special journal:

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

Posting debits from the Sales journal to Accounts Receivable twice-once to the general ledger account Accounts Receivable and once to the customer's subsidiary account-violates the accounting equation of debits equal credits.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Segment return on assets is calculated by dividing segment average assets by segment operating income.

Correct AnswerverifiedShow Answer

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Special journals are used for recording ...
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