Question 1

Wildlife Wholesale Supply sold birdseed to a retailer for $860, receiving cash at the time of sale. The cost of the birdseed was $370. When recording the collection from the customer, in its cash receipts journal, Wildlife would enter:

Accepted Answer

A)   $860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Cost of Goods Sold Dr./Inventory Cr. column.
B)   $860 in the Cash Dr. column; $860 in the Sales Cr. column; and $370 in the Other Accounts Cr. column.
C)   $370 in the Cash Dr. column and $370 in the Accounts Receivable Cr. column.
D)   $860 in the Accounts Receivable Dr. column, $860 in the Cash Cr. column; and $370 in the Cost of Goods Sold Dr./Inventory Cr. column.
E)   $860 in the Cash Dr. column and $860 in the Accounts Receivable Cr. column.F) C) and D)
G) A) and B)

Question 2

Which of the following is not an output device?

Accepted Answer

A)   Web communications.
B)   Printers.
C)   Bar code readers.
D)   Projectors.
E)   Monitors.F) A) and E)
G) A) and D)

Question 3

Segment information is not helpful to investors for evaluating a company's profitability, risk, or growth.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Accepted Answer

A) True 
 B)False

Question 6

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

Accepted Answer

A) True 
 B)False

Question 7

Enterprise-resource planning software:

Accepted Answer

A)   Uses batch processing of business information.
B)   Is another name for spreadsheet programs.
C)   Refers to programs that help manage a company's vital operations.
D)   Is substantially declining in use.
E)   Is another name for database programs.F) B) and E)
G) A) and E)

Question 8

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is not true regarding internal control procedures?

Accepted Answer

A)   Internal control procedures include methods to achieve compliance with laws and regulations.
B)   Internal control procedures direct operations toward common goals.
C)   Internal control procedures are designed to safeguard company assets.
D)   Internal control procedures are not affected by the cost-benefit principle.
E)   Internal control procedures are designed to ensure reliable financial reports.F) A) and C)
G) B) and C)

Question 10

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Accepted Answer

Under the perpetual inventory system, th...

Question 11

An accounts payable ledger:

Accepted Answer

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) B) and E)
G) A) and B)

Question 12

A ________ is a listing of accounts from the accounts payable ledger with their balances and the sum of all balances.

Accepted Answer

schedule o...

Question 13

Source documents:

Accepted Answer

A)   Convert information to the system's processing component.
B)   Are input devices.
C)   Cannot be electronic files or web communications.
D)   Store processed information for future use.
E)   Provide the basic information processed by an accounting system.F) C) and D)
G) A) and B)

Question 14

Control, competency, compatibility, flexibility and cost-benefit are the five basic principles of accounting information systems.

Accepted Answer

A) True 
 B)False

Question 15

Individual transactions in the sales journal are posted regularly to customers' accounts in the
________.

Accepted Answer

accounts r...

Question 16

A company makes a payment of $5,000 on a long-term note payable. The journal the transaction would be recorded in is the:

Accepted Answer

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

Question 17

Due to electronic files and Web communications, source documents are no longer required.

Accepted Answer

A) True 
 B)False

Question 18

Most companies use online processing instead of batch processing because online processing immediately updates databases.

Accepted Answer

A) True 
 B)False

Question 19

A columnar journal is any journal with only one column.

Accepted Answer

A) True 
 B)False

Question 20

A trial balance is completed after posting but before proving the subsidiary ledger by preparing a schedule of the controlling account.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

A ________ is a listing of accounts from the accounts payable ledger with their balances and the sum of all balances.

Correct Answerverifiedschedule o...View AnswerShow Answer

Source documents:

Correct AnswerverifiedShow Answer

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

Correct AnswerverifiedUnder the perpetual inventory system, th...View AnswerShow Answer

A trial balance is completed after posting but before proving the subsidiary ledger by preparing a schedule of the controlling account.

Correct AnswerverifiedShow Answer

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

Correct AnswerverifiedShow Answer

Wildlife Wholesale Supply sold birdseed to a retailer for $860, receiving cash at the time of sale. The cost of the birdseed was $370. When recording the collection from the customer, in its cash receipts journal, Wildlife would enter:

Correct AnswerverifiedShow Answer

An accounts payable ledger:

Correct AnswerverifiedShow Answer

Which of the following is not an output device?

Correct AnswerverifiedShow Answer

Account balances in the general ledger and the subsidiary ledgers should be proved for accuracy after posting is complete.

Correct AnswerverifiedShow Answer

Due to electronic files and Web communications, source documents are no longer required.

Correct AnswerverifiedShow Answer

A company makes a payment of $5,000 on a long-term note payable. The journal the transaction would be recorded in is the:

Correct AnswerverifiedShow Answer

Individual transactions in the sales journal are posted regularly to customers' accounts in the ________.

Correct Answerverifiedaccounts r...View AnswerShow Answer

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Correct AnswerverifiedShow Answer

Segment information is not helpful to investors for evaluating a company's profitability, risk, or growth.

Correct AnswerverifiedShow Answer

A columnar journal is any journal with only one column.

Correct AnswerverifiedShow Answer

Enterprise-resource planning software:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is not true regarding internal control procedures?

Correct AnswerverifiedShow Answer

Control, competency, compatibility, flexibility and cost-benefit are the five basic principles of accounting information systems.

Correct AnswerverifiedShow Answer

Most companies use online processing instead of batch processing because online processing immediately updates databases.

Correct AnswerverifiedShow Answer

Correct Answer
verified
schedule o...
View Answer

Correct Answer
verified

Correct Answer
verified
Under the perpetual inventory system, th...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
accounts r...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified