FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Accounting Information Systems

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

The Accounts Payable controlling account:

A) Equals the sum of all balances of supplier accounts.
B) Reduces the number of entries in the general journals.
C) Increases the number of columns in the journals.
D) Stores the transaction data of individual supplies.
E) Is not included in a company's chart of accounts.

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

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

A journal that is used to record and post transactions of a similar type is a(n) :

A) Special journal.
B) General journal.
C) Perpetual journal.
D) Columnar journal.
E) All-purpose journal.

F) A) and E)
G) B) and D)

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

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:

Fagin Company uses special journals to record transactions. Below are the sales journal and cash receipts journal for Fagin in the first part of August. Required: a. Open an accounts receivable subsidiary ledger having a T-account for each customer. Post the invoices to the subsidiary ledger. b. Open an Accounts Receivable controlling T-Account. Post the end-of the month totals that affect the Accounts Receivable account only. c. Prepare a schedule of accounts receivable and prove that its total equals the Accounts Receivable controlling account balance.

A procedure called direct posting of sales invoices involves posting sales directly to the customer accounts in the accounts receivable ledger, making a period end journal entry, and avoiding the use of the sales journal.

________ provide the basic information processed by an accounting system, and can include bank statements, billings to customers, and employee earnings records.

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.

The flexibility principle of accounting information systems prescribes that the:

The following information is available for some of Branson's segments (all amounts are in millions): $\begin{array} { | l | l | l | l | } \hline & \text { North America } & \text { Asia } & \text { Central America } \\\hline \text { Segment sales } & \$ 5,190 & \$ 750 & \$ 2,350 \\\hline \text { Segment operating income } & 1,494 & 273 & 1,127 \\\hline \text { Segment average assets } & 4,700 & 541 & 1,382 \\\hline\end{array}$ 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?

Which of the following statements regarding input devices is not true?

Plimpton Sales uses special journals to record business transactions. Plimpton sells office equipment. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded. $\begin{array} { | l | l | l | } \hline \text { a. } & \text { Paid an installnent on a bank loan. } &\quad\quad\quad\quad\quad \\\hline \text { b. } & \text { Purchased inventory on credit. } & \\\hline \text { c. } & \text { Paid cash to a creditor. } & \\\hline \text { d. } & \text { Sold equipment to a customer on credit. } & \\\hline \text { e. } & \text { Sold equipment to a customer for cash. } & \\\hline \text { f. } & \text { Paid employees' salaries in cash. } & \\\hline \text { g. } & \text { Received payment from a customer on credit. } & \\\hline \text { h. } & \text { Purchased offee supplies on account. } & \\\hline \text { i. } & \text { Returned inventory to creditor before payment. } & \\\hline \text { j. } & \text { Sold equipment on account. } & \\\hline\end{array}$

An accounts receivable ledger is a:

A subsidiary ledger:

The controlling account, Accounts Payable in the general ledger has a separate subsidiary account for each creditor in the accounts payable ledger.

A business segment is part of a company that:

A company entered into the following transactions. Match each transaction with the appropriate journal in which it should be recorded. a. Sales journal b. Purchases journal c. Cash receipts journal d. Cash disbursements journal e. General journal _____ 1. Borrowed $7,000 cash from the local bank. _____ 2. A customer returned a $250 item purchased on account. _____ 3. Purchased merchandise on account, $2,100. _____ 4. Purchased equipment on account for $4,000. _____ 5. Paid $15,000 cash in wages to employees. _____ 6. Paid a telephone bill for $3,400 cash. _____ 7. Purchased $1,150 of office supplies on account. _____ 8. Recorded depreciation on office equipment of $2,000. _____ 9. Returned defective inventory purchased on account, $2,550. _____ 10. Recorded cash sales of $12,700.

Because special journals are designed to suit businesses, good systems design for a business could include collapsing the sales and cash disbursements journal into one journal.

The basic components of an accounting information system include all of the following except:

Input devices are the means to make accounting information available to users.

The ________ principle requires that an accounting information system aid managers in controlling and monitoring business activities.