Question 1

Entry-level accounting software ________.

Accepted Answer

A)  can handle advanced processes and transactions
B)  is an affordable system that is difficult to use
C)  allows businesses to enter sales of services and merchandise inventory,record expenses,and produce financial statements
D)  integrates all of a company's functions,departments,and data into a single systemE) A) and D)
F) A) and C)

Question 2

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

Accepted Answer

A)  approval of new employees
B)  receipt of customer payment
C)  processing of vendor invoices
D)  payment for goods or servicesE) A) and B)
F) All of the above

Question 3

In a perpetual inventory system,which of the following are debit columns in a typical cash payments journal?

Accepted Answer

A)  Merchandise Inventory column and Cash column
B)  Other Accounts column and Accounts Payable column
C)  Merchandise Inventory column and Accounts Payable column
D)  Other Accounts column and Cash columnE) B) and D)
F) A) and C)

Question 4

When using Quickbooks,the Vendors tab is used to record a bill that has been received.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is TRUE of posting from a sales journal to the general ledger?

Accepted Answer

A)  Entries in the sales journal are posted to either the accounts receivable subsidiary ledger or the general ledger.
B)  Individual accounts receivable are posted daily from the sales journal to the accounts receivable subsidiary ledger.
C)  Even though the sales journal is posted monthly to the subsidiary ledger,it is a reliable record of the amount received from each customer.
D)  Under a perpetual inventory system,the sales journal will not have the Cost of Goods Sold DR and Merchandise Inventory CR column.E) A) and C)
F) All of the above

Question 6

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  True

Question 7

Sales on account are recorded in a cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a benefit of using a computerized accounting information system?

Accepted Answer

A)  The software can accurately measure the intrinsic value of the firm using the built-in simulation techniques.
B)  There is no need to review the financial statements for accuracy.
C)  The software is easy to use and thus no training or financial statement review is necessary.
D)  The software automatically transfers the amounts from the general ledger to the financial statements.E) A) and C)
F) A) and B) D

Question 9

Midwest Enterprises uses special journals.The company borrowed $10,000 from First State Bank.This transaction is recorded in the ________.

Accepted Answer

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

Question 10

An accounting information system is said to have good control characteristics,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) C) and D)

Question 11

Which of the following is TRUE of posting entries from a cash payments journal?

Accepted Answer

A)  Entries in the cash payments journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger.
B)  The postings of accounts payable are credits and increase the balance in the individual accounts payable account.
C)  After posting the payment of accounts payable,a check mark is entered in the cash payments journal and the posting reference is printed in the subsidiary ledger.
D)  At the end of the month,each column is totaled and the totals,including the Other Accounts DR column,are posted to the specific general ledger accounts.E) A) and B)
F) A) and C)

Question 12

Match each term to its definition.
-Control

Accepted Answer

A)  Can accommodate changes in the business over time.
B)  Provides information that will improve decision making and reduce uncertainty.
C)  Benefits received outweigh the cost of the system.
D)  Works smoothly with the business's employees and organization structure.
E)  Provides safeguards for a business's assets and reduces the likelihood of fraud and errors.F) All of the above
G) B) and C)

Question 13

A subsidiary ledger is a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account.

Accepted Answer

A) True 
 B)False  True

Question 14

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 15

The purchases journal is a special journal used to record all purchases of merchandise inventory,office supplies,and other assets on account.

Accepted Answer

A) True 
 B)False

Question 16

For each of the following transactions,state which special journal should be used to record the transaction.In addition,state which columns will be used.
Transaction 1: Freeworld Co.paid $1,500 for monthly utilities,on the date the bill was received.
Which special journal?
Which columns are used to record the transaction?
Transaction 2: Wideworld Co.purchased office supplies on account.
Which special journal?
Which columns are used to record the transaction?
Transaction 3: Wonderworld Co.sold $5,000 of merchandise inventory to A.Allen,on account.The cost of the merchandise inventory was $3,200.The company uses a perpetual inventory system.
Which special journal?
Which columns are used to record the transaction?
Transaction 4: Oneworld Co.borrowed $10,000 from World National Bank.
Which special journal?
Which columns are used to record the transaction?

Accepted Answer

Transaction 1: Freeworld Co.paid $1,500 ...

Question 17

Ocean Company sells a product for $500 on account to Great Atlantic Sales.This transaction will be recorded in the ________.

Accepted Answer

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

Question 18

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 19

In a manual accounting information system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint.

Accepted Answer

A) True 
 B)False

Question 20

Entry-level software packages for accounting information systems are difficult to use and require a complete knowledge of GAAP.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

Entry-level accounting software ________.

Correct Answer
verified

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

Correct Answer
verified

In a perpetual inventory system,which of the following are debit columns in a typical cash payments journal?

Correct Answer
verified

When using Quickbooks,the Vendors tab is used to record a bill that has been received.

Correct Answer
verified

Which of the following is TRUE of posting from a sales journal to the general ledger?

Correct Answer
verified

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

Correct Answer
verified
True

Sales on account are recorded in a cash receipts journal.

Correct Answer
verified

Which of the following is a benefit of using a computerized accounting information system?

Correct Answer
verified
D

Midwest Enterprises uses special journals.The company borrowed $10,000 from First State Bank.This transaction is recorded in the ________.

Correct Answer
verified

An accounting information system is said to have good control characteristics,if it ________.

Correct Answer
verified

Which of the following is TRUE of posting entries from a cash payments journal?

Correct Answer
verified

Match each term to its definition. -Control

Correct Answer
verified

A subsidiary ledger is a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account.

Correct Answer
verified
True

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

Correct Answer
verified

The purchases journal is a special journal used to record all purchases of merchandise inventory,office supplies,and other assets on account.

Correct Answer
verified

Correct Answer
verified
Transaction 1: Freeworld Co.paid $1,500 ...
View Answer

Ocean Company sells a product for $500 on account to Great Atlantic Sales.This transaction will be recorded in the ________.

Correct Answer
verified

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

Correct Answer
verified

In a manual accounting information system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint.

Correct Answer
verified

Entry-level software packages for accounting information systems are difficult to use and require a complete knowledge of GAAP.

Correct Answer
verified

Exam 7: Accounting Information Systems

Entry-level accounting software ________.

Correct AnswerverifiedShow Answer

Which of the following is an accounting information system activity that can be classified as a payroll business transaction?

Correct AnswerverifiedShow Answer

In a perpetual inventory system,which of the following are debit columns in a typical cash payments journal?

Correct AnswerverifiedShow Answer

When using Quickbooks,the Vendors tab is used to record a bill that has been received.

Correct AnswerverifiedShow Answer

Which of the following is TRUE of posting from a sales journal to the general ledger?

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 AnswerverifiedTrue

Sales on account are recorded in a cash receipts journal.

Correct AnswerverifiedShow Answer

Which of the following is a benefit of using a computerized accounting information system?

Correct AnswerverifiedD

Midwest Enterprises uses special journals.The company borrowed $10,000 from First State Bank.This transaction is recorded in the ________.

Correct AnswerverifiedShow Answer

An accounting information system is said to have good control characteristics,if it ________.

Correct AnswerverifiedShow Answer

Which of the following is TRUE of posting entries from a cash payments journal?

Correct AnswerverifiedShow Answer

Match each term to its definition. -Control

Correct AnswerverifiedShow Answer

A subsidiary ledger is a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

The purchases journal is a special journal used to record all purchases of merchandise inventory,office supplies,and other assets on account.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedTransaction 1: Freeworld Co.paid $1,500 ...View AnswerShow Answer

Ocean Company sells a product for $500 on account to Great Atlantic Sales.This transaction will be recorded in the ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a manual accounting information system,reports and financial statements must be created using Word documents,Excel spreadsheets,or PowerPoint.

Correct AnswerverifiedShow Answer

Entry-level software packages for accounting information systems are difficult to use and require a complete knowledge of GAAP.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
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D

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Transaction 1: Freeworld Co.paid $1,500 ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified