Question 1

Cash disbursement journals also are known as ________.

Accepted Answer

A)  sales journals
B)  purchases journals
C)  cash receipts journals
D)  cash payments journalsE) A) and B)
F) A) and C)

Question 2

Examples of source documents in an accounting information system include the statement of cash flows and sales journal.

Accepted Answer

A) True 
 B)False

Question 3

In a manual accounting information system,cash purchases are generally recorded in the ________.

Accepted Answer

A)  sales journal
B)  cash receipts journal
C)  cash payments journal
D)  purchases journalE) A) and C)
F) A) and D)

Question 4

All transactions are recorded in either one of the special journals or in the general journal,but not both.

Accepted Answer

A) True 
 B)False

Question 5

Because companies use special journals,the use of the General Journal is optional.

Accepted Answer

A) True 
 B)False

Question 6

Define enterprise resource planning (ERP)systems and state one advantage and one disadvantage of ERP systems.

Accepted Answer

Enterprise resource planning systems int...

Question 7

Entries from the purchases journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger.

Accepted Answer

A) True 
 B)False

Question 8

When using a periodic inventory system,the Merchandise Inventory DR column,in the purchases journal,is replaced with a column titled Cost of Goods Sold DR.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following transactions is recorded in the purchases journal?

Accepted Answer

A)  purchase of furniture on account
B)  cash purchase of merchandise inventory
C)  sale of merchandise inventory on account
D)  cash sales of merchandise inventoryE) A) and B)
F) A) and C)

Question 10

To safeguard a business's assets and reduce the likelihood of fraud and errors,its accounting information system ________.

Accepted Answer

A)  should be manual
B)  must be flexible to accommodate changes in a business over time
C)  should work smoothly with the business's employees
D)  must provide adequate controls of a business's assets and dataE) A) and B)
F) All of the above

Question 11

An accounting information system is said to be relevant,if it ________.

Accepted Answer

A)  works smoothly with the business's employees and organizational structure
B)  safeguards a business's assets and reduces the likelihood of fraud and errors
C)  provides information that will improve decision making and reduce uncertainty
D)  accommodates changes in the business over timeE) All of the above
F) A) and B)

Question 12

Adjusting entries are recorded in the ________.

Accepted Answer

A)  cash payments journal
B)  purchases journal
C)  cash receipts journal
D)  general journalE) A) and B)
F) All of the above

Question 13

Prenumbered source documents provide necessary control in a system by automatically assigning a sequential number to each new transaction.

Accepted Answer

A) True 
 B)False

Question 14

If there is no cash involved in a business transaction,the transaction should be recorded in ________.

Accepted Answer

A)  either the cash receipts journal or general journal
B)  either the sales journal or purchases journal
C)  the general journal only
D)  sales journal,purchases journal,or general journalE) B) and D)
F) A) and D)

Question 15

Australia Corporation sells a product for $500 cash to Martin and Lewis Enterprises.This transaction will be recorded in the ________.

Accepted Answer

A)  cash payments journal
B)  sales journal
C)  cash receipts journal
D)  purchase journalE) A) and B)
F) A) and C)

Question 16

A cash payments journal is a special journal that ________.

Accepted Answer

A)  differs from the cash disbursements journal
B)  eliminates the need to perform a bank reconciliation
C)  is used to record cash payments by check and currency
D)  is used to record the net of cash payments and cash receipts by check and currencyE) B) and C)
F) A) and C)

Question 17

The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.

Accepted Answer

A) True 
 B)False

Question 18

A sales journal is ________.

Accepted Answer

A)  a special journal used to record all the cash sales
B)  used to record the sales of assets other than merchandise inventory
C)  a special journal used to record credit sales
D)  a general journal used to record the adjustments in revenue accountE) B) and C)
F) A) and D)

Question 19

A subsidiary ledger is ________.

Accepted Answer

A)  an accounting journal designed to record a specific type of transaction
B)  a created list of accounts used by a business entity to define each class of items for which cash is spent or received
C)  a complete record of business transactions recorded in a ledger over the life of a company
D)  a record of accounts that provide supporting details on individual balances,the total of which appears in a general ledger accountE) A) and C)
F) None of the above

Question 20

A CR.5 posting reference in a subsidiary ledger signifies that the ________.

Accepted Answer

A)  posting is transferred from the cash receipts journal,page 5
B)  transaction on page number 5 is credited
C)  amount credited is after a 5% discount
D)  sales on credit is expected to be paid within five daysE) None of the above
F) B) and C)

Exam 15: Accounting Information Systems

When using a periodic inventory system,the Merchandise Inventory DR column,in the purchases journal,is replaced with a column titled Cost of Goods Sold DR.

Correct AnswerverifiedShow Answer

Because companies use special journals,the use of the General Journal is optional.

Correct AnswerverifiedShow Answer

All transactions are recorded in either one of the special journals or in the general journal,but not both.

Correct AnswerverifiedShow Answer

If there is no cash involved in a business transaction,the transaction should be recorded in ________.

Correct AnswerverifiedShow Answer

To safeguard a business's assets and reduce the likelihood of fraud and errors,its accounting information system ________.

Correct AnswerverifiedShow Answer

A CR.5 posting reference in a subsidiary ledger signifies that the ________.

Correct AnswerverifiedShow Answer

A cash payments journal is a special journal that ________.

Correct AnswerverifiedShow Answer

Define enterprise resource planning (ERP)systems and state one advantage and one disadvantage of ERP systems.

Correct AnswerverifiedEnterprise resource planning systems int...View AnswerShow Answer

Entries from the purchases journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger.

Correct AnswerverifiedShow Answer

Prenumbered source documents provide necessary control in a system by automatically assigning a sequential number to each new transaction.

Correct AnswerverifiedShow Answer

An accounting information system is said to be relevant,if it ________.

Correct AnswerverifiedShow Answer

A sales journal is ________.

Correct AnswerverifiedShow Answer

Examples of source documents in an accounting information system include the statement of cash flows and sales journal.

Correct AnswerverifiedShow Answer

The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.

Correct AnswerverifiedShow Answer

Cash disbursement journals also are known as ________.

Correct AnswerverifiedShow Answer

Which of the following transactions is recorded in the purchases journal?

Correct AnswerverifiedShow Answer

In a manual accounting information system,cash purchases are generally recorded in the ________.

Correct AnswerverifiedShow Answer

A subsidiary ledger is ________.

Correct AnswerverifiedShow Answer

Adjusting entries are recorded in the ________.

Correct AnswerverifiedShow Answer

Australia Corporation sells a product for $500 cash to Martin and Lewis Enterprises.This transaction will be recorded in the ________.

Correct AnswerverifiedShow Answer

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Enterprise resource planning systems int...
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