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Exam 7: Accounting Information Systems

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Question 51

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An accounts payable ledger:

A) Contains a separate account for each creditor (supplier) to the company.
B) Is a book of original entry designed and used for recording only a specified type of transaction.
C) Contains the financial statement accounts of a business.
D) Contains an account for each credit customer.
E) Lists the balances of selected accounts that are added to show the total amount of the significant long-term creditors outstanding.

F) C) and D)
G) A) and E)

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Question 52

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What are controlling accounts and subsidiary ledgers? What is the relationship between them?

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The controlling accounts are part of the...

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Question 53

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Information processors capture information and enable its transfer to the system's information processing component.

The accounting principle that prescribes an accounting information system conform with a company's activities, personnel, and structure is the:

The compatibility principle requires that an accounting system report useful, understandable, timely, and pertinent information for effective decision making.

Information storage databases:

A company entered into the following transactions. Match each transaction with the appropriate journal in which it should be recorded.

A record that contains detailed information on specific accounts with a common characteristic and is support for a controlling account is a(n) :

The purchases journal is used to record purchases of merchandise on credit.

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

Input devices involve converting data on source documents from written or electronic form to a form usable for the system.

If a company issues a check for $2,750 in payment of the salaries expense for the last half of the month, the transaction will be recorded in which journal?

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 payment of the invoice within the discount period in its cash disbursement journal, Farthington would enter:

The sales journal is used for recording:

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

Output devices include journal entries, keyboards and scanners.

A company that reports segment information had average total assets of $1,522,450 and total net income of $590,700. Segment A had average total assets of $927,800 and segment operating income of $298,300. Segment B had average assets of $594,650 and segment operating income of $292,400. The segment return on assets for Segment A is:

Barrier Scuba Equipment purchased supplies costing $3,000 on credit. Identify the journal the transaction would be recorded in:

A business segment is part of a company that:

The flexibility principle prescribes that an accounting information system be able to adapt to changes in the company, business environment, and needs of decision makers.