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Exam 7: Accounting Information Systems

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Question 21

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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) True
B) False

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Question 22

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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?

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a. U.S. = $2,320/$5,590 = 41.5%
Canada =...

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Question 23

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

Discuss how technology based information systems affect accounting.

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

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

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

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

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

The control principle for accounting information systems requires that the:

The accounts receivable ledger:

Output devices include journal entries, keyboards and scanners.

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

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

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

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

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

Two common subsidiary ledgers are cash receipts and cash disbursements.

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.

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