Question 1

When a company uses special journals, the general journal is used for selected transactions and events including:

Accepted Answer

A)   Recording adjusting transactions.
B)   Posting transactions to special journals.
C)   Accumulating debits and credits.
D)   Collecting detailed listings of amounts.
E)   Recording cash receipts.F) A) and C)
G) D) and E)

Question 2

Medco Company uses special journals to record transactions. Medco uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.

Accepted Answer

The answer of Medco Company uses special journals to record...

Question 3

Output devices include all of the following except:

Accepted Answer

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

Question 4

A sales journal is used to record cash sales.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

The answer of The __________________ principle requires that an accounting...

Question 6

Special journals are designed in a manner that is best suited for each business, so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

Accepted Answer

A) True 
 B)False

Question 7

A company sold merchandise on credit for $5,000 (cost is $2,400) . Identify the journal the transaction would be recorded in.

Accepted Answer

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

Question 8

A company purchased equipment costing $32,000 on credit. Identify the journal the transaction would be recorded in.

Accepted Answer

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

Question 9

Using __________________ ledgers removes unnecessary details from the general ledger.

Accepted Answer

The answer of Using __________________ ledgers removes unnecessary details from...

Question 10

The main difference in the sales journal under the perpetual and periodic inventory system is:

Accepted Answer

A)   The column to record cost of goods sold and inventory amounts sold that is used under the perpetual system but not the periodic.
B)   The sales tax receivable column that is used under the perpetual system but not the periodic.
C)   The sales tax payable column that is used under the perpetual system but not the periodic.
D)   The accounts receivable column that is used under the perpetual system but not the periodic.
E)   The column for recording cash that is used under the perpetual system but not the periodic.F) A) and B)
G) A) and C)

Question 11

A columnar journal is any journal with only one column.

Accepted Answer

A) True 
 B)False

Question 12

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

Accepted Answer

A) True 
 B)False

Question 13

Kala's Latin American segment had revenues of $2,089 million, operating income of $1,033 million, and average assets of $1,443 millions. The Latin American segment return on assets is:

Accepted Answer

A)   49.4%
B)   69.0%
C)   71.6%
D)   139.7%
E)   144.8%F) A) and E)
G) A) and D)

Question 14

An advantage of online processing is up-to-date databases.

Accepted Answer

A) True 
 B)False

Question 15

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 16

All of the following statements regarding source documents are except:

Accepted Answer

A)   Source documents provide the basic information processed by an accounting system.
B)   Source documents include bank statements, cash register files, and employee earnings records.
C)   Source documents are insignificant and play a minor role in the reliability of the information system.
D)   Source documents can be paper or electronic files.
E)   Source documents can include Web communications.F) None of the above
G) B) and C)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

A company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. A perpetual inventory system is used. The following transactions were completed by the company during the current month of October:
Record these transactions in the appropriate journal shown below.

Accepted Answer

The answer of A company uses a sales journal, purchases...

Question 19

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

Accepted Answer

A)   Source documents.
B)   Warehouses.
C)   Information processors.
D)   Information storage.
E)   Input devices.F) A) and B)
G) A) and C)

Question 20

The sales journal is used for recording:

Accepted Answer

A)   Credit purchases.
B)   Credit sales.
C)   Cash sales.
D)   Cash purchases.
E)   Cash receipts.F) B) and C)
G) C) and D)

Exam 7: Accounting Information Systems

An advantage of online processing is up-to-date databases.

Correct Answer
verified

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

Correct Answer
verified

Medco Company uses special journals to record transactions. Medco uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.

Correct Answer
verified

A columnar journal is any journal with only one column.

Correct Answer
verified

Special journals are designed in a manner that is best suited for each business, so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

Correct Answer
verified

Using __________________ ledgers removes unnecessary details from the general ledger.

Correct Answer
verified

All of the following statements regarding source documents are except:

Correct Answer
verified

Kala's Latin American segment had revenues of $2,089 million, operating income of $1,033 million, and average assets of $1,443 millions. The Latin American segment return on assets is:

Correct Answer
verified

The sales journal is used for recording:

Correct Answer
verified

A company sold merchandise on credit for $5,000 (cost is $2,400) . Identify the journal the transaction would be recorded in.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Output devices include all of the following except:

Correct Answer
verified

The main difference in the sales journal under the perpetual and periodic inventory system is:

Correct Answer
verified

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

Correct Answer
verified

Correct Answer
verified

When a company uses special journals, the general journal is used for selected transactions and events including:

Correct Answer
verified

A company purchased equipment costing $32,000 on credit. Identify the journal the transaction would be recorded in.

Correct Answer
verified

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

Correct Answer
verified

A sales journal is used to record cash sales.

Correct Answer
verified

Exam 7: Accounting Information Systems

An advantage of online processing is up-to-date databases.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Medco Company uses special journals to record transactions. Medco uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.

Correct AnswerverifiedShow Answer

A columnar journal is any journal with only one column.

Correct AnswerverifiedShow Answer

Special journals are designed in a manner that is best suited for each business, so good systems design for a business could include collapsing the sales and cash receipts journal into one journal.

Correct AnswerverifiedShow Answer

Using __________________ ledgers removes unnecessary details from the general ledger.

Correct AnswerverifiedShow Answer

All of the following statements regarding source documents are except:

Correct AnswerverifiedShow Answer

Kala's Latin American segment had revenues of $2,089 million, operating income of $1,033 million, and average assets of $1,443 millions. The Latin American segment return on assets is:

Correct AnswerverifiedShow Answer

The sales journal is used for recording:

Correct AnswerverifiedShow Answer

A company sold merchandise on credit for $5,000 (cost is $2,400) . Identify the journal the transaction would be recorded in.

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

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

Correct AnswerverifiedShow Answer

Output devices include all of the following except:

Correct AnswerverifiedShow Answer

The main difference in the sales journal under the perpetual and periodic inventory system is:

Correct AnswerverifiedShow Answer

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a company uses special journals, the general journal is used for selected transactions and events including:

Correct AnswerverifiedShow Answer

A company purchased equipment costing $32,000 on credit. Identify the journal the transaction would be recorded in.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A sales journal is used to record cash sales.

Correct AnswerverifiedShow Answer

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