Question 1

Examples of other subsidiary ledgers besides those for accounts receivable and accounts payable may include all of the following except:

Accepted Answer

A)   Inventory.
B)   Equipment.
C)   Payroll.
D)   Investments.
E)   Cash.F) A) and E)
G) B) and D)

Question 2

After posting is completed, there may be an error if:

Accepted Answer

A)   The sum of the supplier account balances does not equal the general ledger Accounts Payable controlling account balance.
B)   The sum of the accounts receivable ledger does not equal the balance in the sales journal.
C)   The sum of the accounts receivable ledger does not equal the balance in the Sales account.
D)   The sum of the supplier account balances does not equal the total in the purchases journal.
E)   The balance in the sales journal does not equal the Accounts Receivable account balance.F) C) and E)
G) None of the above

Question 3

A sales journal is used to record cash sales.

Accepted Answer

A) True 
 B)False

Question 4

______________consist of people, records, methods, and equipment that collect and process data from transactions and events, organize them in useful reports and communicate results to decision makers.

Accepted Answer

Accounting...

Question 5

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

Accepted Answer

A)   Sales journal.
B)   Purchases journal.
C)   General journal.
D)   Cash disbursements journal.
E)   Cash receipts journal.F) None of the above
G) B) and C)

Question 6

A company sells merchandise on credit for $6,000. The merchandise cost is $3,400. The journal that the transaction would be recorded in is the:

Accepted Answer

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

Question 7

When auditors audit financial statements and a company's controls they rely on accounting system databases.

Accepted Answer

A) True 
 B)False

Question 8

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 9

The sales journals of companies using the perpetual and periodic inventory systems differ in that under the perpetual system a column is used to record cost of goods sold and inventory amounts for each sale but not the periodic system.

Accepted Answer

A) True 
 B)False

Question 10

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) A) and C)

Question 11

A special journal is used to record and post transactions of a similar type.

Accepted Answer

A) True 
 B)False

Question 12

The purchases journal is typically used to record only purchases of inventory.

Accepted Answer

A) True 
 B)False

Question 13

Internal controls include policies to protect company assets and achieve compliance with laws and regulations.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

Accepted Answer

A)   Flexibility principle.
B)   Relevance principle.
C)   Compatibility principle.
D)   Cost-Benefit principle.
E)   Control principle.F) A) and B)
G) C) and D)

Question 15

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

Accepted Answer

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

Question 16

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

Accepted Answer

A)   Accounting information systems communicate information to business decision makers.
B)   Accounting information systems are useful to effective decision making.
C)   Accounting information systems organize data in useful forms.
D)   Accounting information systems are not subject to internal control policies.
E)   Accounting information systems collect and process data from transactions and events.F) B) and E)
G) B) and D)

Question 17

A company would use which of the following journals to record cash payments?

Accepted Answer

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

Exam 7: Accounting Information Systems

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 Answer
verified

When auditors audit financial statements and a company's controls they rely on accounting system databases.

Correct Answer
verified

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

Correct Answer
verified

A special journal is used to record and post transactions of a similar type.

Correct Answer
verified

Internal controls include policies to protect company assets and achieve compliance with laws and regulations.

Correct Answer
verified

A company sells merchandise on credit for $6,000. The merchandise cost is $3,400. The journal that the transaction would be recorded in is the:

Correct Answer
verified

Examples of other subsidiary ledgers besides those for accounts receivable and accounts payable may include all of the following except:

Correct Answer
verified

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

Correct Answer
verified

The purchases journal is typically used to record only purchases of inventory.

Correct Answer
verified

______________consist of people, records, methods, and equipment that collect and process data from transactions and events, organize them in useful reports and communicate results to decision makers.

Correct Answer
verified
Accounting...
View 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 Answer
verified

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

Correct Answer
verified

A company would use which of the following journals to record cash payments?

Correct Answer
verified

After posting is completed, there may be an error if:

Correct Answer
verified

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

Correct Answer
verified

The sales journals of companies using the perpetual and periodic inventory systems differ in that under the perpetual system a column is used to record cost of goods sold and inventory amounts for each sale but not the periodic system.

Correct Answer
verified

A sales journal is used to record cash sales.

Correct Answer
verified

Exam 7: Accounting Information Systems

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

When auditors audit financial statements and a company's controls they rely on accounting system databases.

Correct AnswerverifiedShow Answer

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

Correct AnswerverifiedShow Answer

A special journal is used to record and post transactions of a similar type.

Correct AnswerverifiedShow Answer

Internal controls include policies to protect company assets and achieve compliance with laws and regulations.

Correct AnswerverifiedShow Answer

A company sells merchandise on credit for $6,000. The merchandise cost is $3,400. The journal that the transaction would be recorded in is the:

Correct AnswerverifiedShow Answer

Examples of other subsidiary ledgers besides those for accounts receivable and accounts payable may include all of the following except:

Correct AnswerverifiedShow Answer

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

Correct AnswerverifiedShow Answer

The purchases journal is typically used to record only purchases of inventory.

Correct AnswerverifiedShow Answer

______________consist of people, records, methods, and equipment that collect and process data from transactions and events, organize them in useful reports and communicate results to decision makers.

Correct AnswerverifiedAccounting...View AnswerShow 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

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

Correct AnswerverifiedShow Answer

A company would use which of the following journals to record cash payments?

Correct AnswerverifiedShow Answer

After posting is completed, there may be an error if:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The sales journals of companies using the perpetual and periodic inventory systems differ in that under the perpetual system a column is used to record cost of goods sold and inventory amounts for each sale but not the periodic system.

Correct AnswerverifiedShow Answer

A sales journal is used to record cash sales.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Accounting...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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