Question 1

Which of the following is true of a cash receipts journal?

Accepted Answer

A)   In a cash receipts journal, cash sales are recorded in the Accounts Receivable CR column and the Cash DR column.
B)   In a cash receipts journal, collections on account are recorded in the Accounts Receivable DR column and the Cash DR column.
C)   It ignores the miscellaneous cash receipt transactions.
D)   In a cash receipts journal, the sales for cash will have entries in the Sales Revenue CR column.E) None of the above
F) B) and C)

Question 2

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

Accepted Answer

A) True 
 B)False

Question 3

Cash receipts journal is a special journal used to record business transactions of all cash receipts and credit sales.

Accepted Answer

A) True 
 B)False

Question 4

Cash disbursement journals are also known as:

Accepted Answer

A)   sales journals.
B)   purchases journals.
C)   cash receipt journals.
D)   cash payments journals.E) All of the above
F) B) and D)

Question 5

On May 4, a retail firm pays a rent of $1,500 for the month of April. Which of the following is true when this transaction is recorded in a cash payment journal?

Accepted Answer

A)   Both assets and equity will increase by $1,500.
B)   Both assets and liabilities will decrease by $1,500.
C)   Both assets and equity will decrease by $1,500.
D)   Both liabilities and equity will increase by $1,500.E) All of the above
F) A) and D)

Question 6

Which of the following accounting information system activities can be classified under payroll business transactions?

Accepted Answer

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

Question 7

Which of the following is true of an accounting software?

Accepted Answer

A)   It is electronic equipment.
B)   It can never save any transaction data.
C)   It can read, edit, and store transaction data.
D)   It cannot be customized.E) A) and C)
F) B) and D)

Question 8

Cash purchases are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 9

In an accounting information system, outputs are the reports used for decision making, including the financial statements.

Accepted Answer

A) True 
 B)False

Question 10

After posting entries in a sales journal to the general ledger, the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following are the two basic components of a computerized accounting information system?

Accepted Answer

A)   sales journal and purchase journal
B)   hardware and software
C)   cash payment journal and cash receipt journal
D)   network and cloud computingE) None of the above
F) All of the above

Question 12

Which of the following is true of posting entries from a purchases journal to the general ledger?

Accepted Answer

A)   The posting references are not mentioned in the subsidiary ledger.
B)   The Accounts Payable balance in the general ledger should be less than the sum of the individual vendor balances in the subsidiary ledger.
C)   The amounts in the Other Accounts DR column are posted individually to the specific accounts.
D)   It is done on a daily basis for all the accounts.E) B) and C)
F) C) and D)

Question 13

Which of the following is true of source documents in an accounting information system?

Accepted Answer

A)   All journal entries can be considered as source documents in an accounting information system.
B)   Source documents provide control and reliability in an accounting information system.
C)   A manual document cannot be considered as a source document in an accounting information system.
D)   In a manual accounting information system, source documents refer to financial statements.E) None of the above
F) B) and D)

Question 14

Posting from the cash payments journal is similar to posting from the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 15

Unlike the sales journal, entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a column of a purchases journal?

Accepted Answer

A)   Cost of Goods Sold CR
B)   Accounts Payable CR
C)   Sales Revenue DR
D)   Interest Revenue CRE) A) and B)
F) A) and C)

Question 17

A company has four vendors and the accounts payable subsidiary ledger shows the following balances.   Alpha $275,821 Beta 143,474 Gamma 78,943 Delta 34,187\begin{array} { | l | r | } \hline 	ext { Alpha } & \$ 275,821 \\hline 	ext { Beta } & 143,474 \\hline 	ext { Gamma } & 78,943 \\hline 	ext { Delta } & 34,187 \\hline\end{array} Alpha  Beta  Gamma  Delta ​$275,821143,47478,94334,187​​  Calculate the accounts payable balance in the general ledger.

Accepted Answer

A)   $419,295
B)   $532,425
C)   $275,821
D)   $256,604 E) B) and C)
F) B) and D)

Question 18

BM Corporation makes a sale on account to Roger. In which of the following functions of QuickBooks will this transaction be recorded?

Accepted Answer

A)   Pay Bills
B)   Enter Bills
C)   Invoices
D)   Receive PaymentsE) None of the above
F) C) and D)

Question 19

Mercury Corporation receives a landscaping bill on January 15 and is required to pay it before February 15. In which of the following functions of QuickBooks will this transaction be recorded on the date of payment of the bill?

Accepted Answer

A)   Receive Payments
B)   Enter Bills
C)   Invoices
D)   Pay BillsE) A) and D)
F) A) and C)

Question 20

The purchases journal is a special journal used to record:

Accepted Answer

A)   cash receipts, interest rate payments, and purchases.
B)   credit sales of assets that occur infrequently such as buildings, property, and equipment.
C)   credit sales.
D)   merchandise inventory, office supplies, and other assets purchased on account.E) A) and B)
F) All of the above

Exam 7: Accounting Information Systems

Cash purchases are recorded in the purchases journal.

Correct Answer
verified

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

Correct Answer
verified

Cash receipts journal is a special journal used to record business transactions of all cash receipts and credit sales.

Correct Answer
verified

Mercury Corporation receives a landscaping bill on January 15 and is required to pay it before February 15. In which of the following functions of QuickBooks will this transaction be recorded on the date of payment of the bill?

Correct Answer
verified

Which of the following is true of source documents in an accounting information system?

Correct Answer
verified

After posting entries in a sales journal to the general ledger, the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Correct Answer
verified

Which of the following accounting information system activities can be classified under payroll business transactions?

Correct Answer
verified

Which of the following is true of posting entries from a purchases journal to the general ledger?

Correct Answer
verified

Which of the following are the two basic components of a computerized accounting information system?

Correct Answer
verified

Posting from the cash payments journal is similar to posting from the cash receipts journal.

Correct Answer
verified

BM Corporation makes a sale on account to Roger. In which of the following functions of QuickBooks will this transaction be recorded?

Correct Answer
verified

Unlike the sales journal, entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

Correct Answer
verified

In an accounting information system, outputs are the reports used for decision making, including the financial statements.

Correct Answer
verified

Correct Answer
verified

On May 4, a retail firm pays a rent of $1,500 for the month of April. Which of the following is true when this transaction is recorded in a cash payment journal?

Correct Answer
verified

Which of the following is true of a cash receipts journal?

Correct Answer
verified

Cash disbursement journals are also known as:

Correct Answer
verified

Which of the following is true of an accounting software?

Correct Answer
verified

The purchases journal is a special journal used to record:

Correct Answer
verified

Which of the following is a column of a purchases journal?

Correct Answer
verified

Exam 7: Accounting Information Systems

Cash purchases are recorded in the purchases journal.

Correct AnswerverifiedShow Answer

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

Correct AnswerverifiedShow Answer

Cash receipts journal is a special journal used to record business transactions of all cash receipts and credit sales.

Correct AnswerverifiedShow Answer

Mercury Corporation receives a landscaping bill on January 15 and is required to pay it before February 15. In which of the following functions of QuickBooks will this transaction be recorded on the date of payment of the bill?

Correct AnswerverifiedShow Answer

Which of the following is true of source documents in an accounting information system?

Correct AnswerverifiedShow Answer

After posting entries in a sales journal to the general ledger, the Accounts Receivable balance in the general ledger should equal the sum of the individual customer balances in the accounts receivable subsidiary ledger.

Correct AnswerverifiedShow Answer

Which of the following accounting information system activities can be classified under payroll business transactions?

Correct AnswerverifiedShow Answer

Which of the following is true of posting entries from a purchases journal to the general ledger?

Correct AnswerverifiedShow Answer

Which of the following are the two basic components of a computerized accounting information system?

Correct AnswerverifiedShow Answer

Posting from the cash payments journal is similar to posting from the cash receipts journal.

Correct AnswerverifiedShow Answer

BM Corporation makes a sale on account to Roger. In which of the following functions of QuickBooks will this transaction be recorded?

Correct AnswerverifiedShow Answer

Unlike the sales journal, entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

Correct AnswerverifiedShow Answer

In an accounting information system, outputs are the reports used for decision making, including the financial statements.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On May 4, a retail firm pays a rent of $1,500 for the month of April. Which of the following is true when this transaction is recorded in a cash payment journal?

Correct AnswerverifiedShow Answer

Which of the following is true of a cash receipts journal?

Correct AnswerverifiedShow Answer

Cash disbursement journals are also known as:

Correct AnswerverifiedShow Answer

Which of the following is true of an accounting software?

Correct AnswerverifiedShow Answer

The purchases journal is a special journal used to record:

Correct AnswerverifiedShow Answer

Which of the following is a column of a purchases journal?

Correct AnswerverifiedShow 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

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

Correct Answer
verified

Correct Answer
verified