Question 1

Which of the following is an output device in an accounting information system?

Accepted Answer

A)  keyboard
B)  internet protocol
C)  printer
D)  mouseE) C) and D)
F) All of the above

Question 2

Which of the following is true of data processing and storage in a computerized information system?

Accepted Answer

A)  In a computerized accounting information system, processing includes manually journalizing transactions and posting to the accounts.
B)  In a computerized accounting information system, there will be a main centralized computer where data is stored, which cannot be accessed from any other computers.
C)  In both manual and computerized systems, all data are contained in paper documents and are often stored in filing cabinets and off-site document warehouses.
D)  In a computerized accounting information system, companies need to spend large amounts of cash to ensure that their data and information are secure.E) A) and B)
F) All of the above

Question 3

Tangent Corporation sold a product for $7,150 to Michael on credit. The cost of goods sold is $5,650.Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $5,650 in the:

Accepted Answer

A)  Accounts Receivable DR, Sales Revenue CR column.
B)  Cost of Goods Sold DR, Merchandise Inventory CR column.
C)  Merchandise Inventory DR, Cost of Goods Sold CR column.
D)  Sales Revenue DR, Accounts Receivable CR column.E) C) and D)
F) B) and D)

Question 4

When recording in a purchases journal with a periodic inventory system, the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

When using a manual accounting information system, which of the following will be recorded in the general journal?

Accepted Answer

A)  depreciation on equipment
B)  payment of accounts payable
C)  purchase of merchandise inventory on account
D)  receipt of cash from a debtorE) A) and B)
F) None of the above

Question 7

Which of the following is an example of a storage device in an accounting information system?

Accepted Answer

A)  monitor
B)  network
C)  printer
D)  serverE) B) and C)
F) C) and D)

Question 8

Which of the following is not included in the purchases journal?

Accepted Answer

A)  purchases of Merchandise Inventory for cash
B)  purchase of Merchandise Inventory on account
C)  purchase of Office Supplies on credit
D)  purchase of Capital Assets on accountE) A) and B)
F) All of the above

Question 9

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) A) and B)
F) None of the above

Question 10

On July 4, a hardware manufacturing firm purchased inventory on account for $1,300. The company plans to pay $700 in the next week and the remaining in the week after. Which of the following is the correct entry to record this transaction in a purchases journal? Assume a perpetual inventory system is used.

Accepted Answer

A)  $650 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column.
B)  $2,000 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column.
C)  $1,300 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column.
D)  $1,300 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column.E) C) and D)
F) B) and C)

Question 11

For a company to safeguard a business's assets and reduce the likelihood of fraud and errors, its accounting information system:

Accepted Answer

A)  should be manual.
B)  must be flexible to accommodate changes in a business over time.
C)  should work smoothly with the business's employees.
D)  must provide adequate controls of a business's assets and data.E) A) and B)
F) A) and C)

Question 12

Sales on account are recorded in a cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 13

Cash purchases are generally recorded in the:

Accepted Answer

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

Question 14

Credit purchases are recorded in the purchases journal.

Accepted Answer

A) True 
 B)False

Question 15

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) B) and C)
F) C) and D)

Question 16

An automobile company purchases spark plugs, on account, for the production of its vehicles. When using a manual accounting information system, where should the company record this transaction?

Accepted Answer

A)  purchases journal
B)  general journal
C)  cash payments journal
D)  sales journalE) A) and B)
F) A) and D)

Question 17

BM Corporation makes a sale for cash 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) A) and B)
F) A) and D)

Question 18

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) A) and D)
F) C) and D)

Question 19

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) C) and D)
F) A) and B)

Question 20

A set of programs or instructions that drives the computer to perform the work desired is known as a:

Accepted Answer

A)  network.
B)  hardware.
C)  software.
D)  routing.E) All of the above
F) None of the above

Exam 7: Accounting Information Systems

Which of the following is true of an accounting software?

Correct Answer
verified

For a company to safeguard a business's assets and reduce the likelihood of fraud and errors, its accounting information system:

Correct Answer
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Which of the following is an output device in an accounting information system?

Correct Answer
verified

When recording in a purchases journal with a periodic inventory system, the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR.

Correct Answer
verified

Which of the following is an example of a storage device in an accounting information system?

Correct Answer
verified

Correct Answer
verified

An automobile company purchases spark plugs, on account, for the production of its vehicles. When using a manual accounting information system, where should the company record this transaction?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is true of data processing and storage in a computerized information system?

Correct Answer
verified

Sales on account are recorded in a cash receipts journal.

Correct Answer
verified

Credit purchases are recorded in the purchases journal.

Correct Answer
verified

When using a manual accounting information system, which of the following will be recorded in the general journal?

Correct Answer
verified

Tangent Corporation sold a product for $7,150 to Michael on credit. The cost of goods sold is $5,650.Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $5,650 in the:

Correct Answer
verified

The purchases journal is a special journal used to record:

Correct Answer
verified

Which of the following is not included in the purchases journal?

Correct Answer
verified

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

Correct Answer
verified

Cash purchases are generally recorded in the:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A set of programs or instructions that drives the computer to perform the work desired is known as a:

Correct Answer
verified

Exam 7: Accounting Information Systems

Which of the following is true of an accounting software?

Correct AnswerverifiedShow Answer

For a company to safeguard a business's assets and reduce the likelihood of fraud and errors, its accounting information system:

Correct AnswerverifiedShow Answer

Which of the following is an output device in an accounting information system?

Correct AnswerverifiedShow Answer

When recording in a purchases journal with a periodic inventory system, the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR.

Correct AnswerverifiedShow Answer

Which of the following is an example of a storage device in an accounting information system?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An automobile company purchases spark plugs, on account, for the production of its vehicles. When using a manual accounting information system, where should the company record this transaction?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true of data processing and storage in a computerized information system?

Correct AnswerverifiedShow Answer

Sales on account are recorded in a cash receipts journal.

Correct AnswerverifiedShow Answer

Credit purchases are recorded in the purchases journal.

Correct AnswerverifiedShow Answer

When using a manual accounting information system, which of the following will be recorded in the general journal?

Correct AnswerverifiedShow Answer

Tangent Corporation sold a product for $7,150 to Michael on credit. The cost of goods sold is $5,650.Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $5,650 in the:

Correct AnswerverifiedShow Answer

The purchases journal is a special journal used to record:

Correct AnswerverifiedShow Answer

Which of the following is not included in the purchases journal?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Cash purchases are generally recorded in the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A set of programs or instructions that drives the computer to perform the work desired is known as a:

Correct AnswerverifiedShow Answer

Correct Answer
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