Question 1

In a perpetual inventory system,when cash sales are recorded,________.

Accepted Answer

A)  merchandise inventory decreases and cost of goods sold decreases
B)  sales revenue increases and cash decreases
C)  sales revenue increases and cost of goods sold decreases
D)  merchandise inventory decreases and cost of goods sold increasesE) B) and D)
F) All of the above

Question 2

A business must invest only in an accounting information system in which the benefits received outweigh the cost of the system.

Accepted Answer

A) True 
 B)False

Question 3

In cloud computing,the accounting software and data are stored on the company's server instead of a third-party server.

Accepted Answer

A) True 
 B)False

Question 4

A company has four vendors and the accounts payable subsidiary ledger shows the following balances.

Calculate the accounts payable balance in the general ledger.

Accepted Answer

A)  $436,295
B)  $564,425
C)  $278,821
D)  $285,604E) A) and B)
F) None of the above

Question 5

Gold Corporation had the following transactions:
  
Use the following sales journal to record the preceding transactions.The company uses the perpetual inventory system.

Accepted Answer

The answer of Gold Corporation had the following transactions:
 ...

Question 6

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

Accepted Answer

A) True 
 B)False

Question 7

Companies are now spending less amounts of cash to ensure that their data and information are secure.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an advantage of enterprise resource planning (ERP) systems?

Accepted Answer

A)  It is inexpensive to implement.
B)  It provides financial benefits only to small corporations.
C)  It replaces separate software systems,such as sales and payroll.
D)  Its implementation requires a small commitment of time and people.E) B) and C)
F) A) and B)

Question 9

When using a purchases journal,Accounts Payable is always credited.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an example of a source document in a computerized accounting information system?

Accepted Answer

A)  purchase invoices
B)  balance sheet
C)  cash payments journal
D)  income statementE) All of the above
F) A) and B)

Question 11

The cash receipts journal is a special journal used to record business transactions involving cash receipts and credit sales.

Accepted Answer

A) True 
 B)False

Question 12

A subsidiary ledger is a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account.

Accepted Answer

A) True 
 B)False

Question 13

The sale of merchandise inventory for cash is recorded in the ________.

Accepted Answer

A)  general journal
B)  cash receipts journal
C)  sales journal
D)  accounts receivable journalE) None of the above
F) A) and C)

Question 14

Describe the transactions recorded in the purchases journal.

Accepted Answer

The purchases journal is used ...

Question 15

Which of the following is an entry-level software package for accounting information systems?

Accepted Answer

A)  Microsoft Word
B)  QuickBooks
C)  Cloud Computing
D)  OracleE) C) and D)
F) B) and C)

Question 16

The purchase of three computers for the sales staff,on account,is recorded in the ________ journal.

Accepted Answer

A)  general
B)  purchases
C)  cash payments
D)  equipmentE) A) and B)
F) B) and C)

Question 17

Match the benefit of an effective accounting information system with the definition.
-Compatibility

Accepted Answer

A)  Provides information that will improve decision making and reduce uncertainty.
B)  Benefits received outweigh the cost of the system.
C)  Works smoothly with the business's employees and organization structure.
D)  Can accommodate changes in the business over time.
E)  Provides safeguards for a business's assets and reduces the likelihood of fraud and errors.F) A) and D)
G) B) and C)

Question 18

List and briefly discuss the two basic components of a computerized accounting information system.

Accepted Answer

Hardware is the electronic equipment tha...

Question 19

Which of the following is NOT an example of a storage device in an accounting information system?

Accepted Answer

A)  computer
B)  financial statements
C)  filing cabinet
D)  serverE) A) and C)
F) A) and B)

Question 20

Which of the following will be recorded in the general journal when using a manual accounting information system?

Accepted Answer

A)  adjusting and closing entries
B)  payment of accounts payable
C)  purchase of merchandise inventory on account
D)  sale of merchandise inventory on accountE) B) and C)
F) None of the above

Exam 27: Accounting Information Systems

In cloud computing,the accounting software and data are stored on the company's server instead of a third-party server.

Correct AnswerverifiedShow Answer

The purchase of three computers for the sales staff,on account,is recorded in the ________ journal.

Correct AnswerverifiedShow Answer

The cash receipts journal is a special journal used to record business transactions involving cash receipts and credit sales.

Correct AnswerverifiedShow Answer

Which of the following will be recorded in the general journal when using a manual accounting information system?

Correct AnswerverifiedShow Answer

Gold Corporation had the following transactions: Use the following sales journal to record the preceding transactions.The company uses the perpetual inventory system.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of enterprise resource planning (ERP) systems?

Correct AnswerverifiedShow Answer

Match the benefit of an effective accounting information system with the definition. -Compatibility

Correct AnswerverifiedShow Answer

Describe the transactions recorded in the purchases journal.

Correct AnswerverifiedThe purchases journal is used ...View AnswerShow Answer

A subsidiary ledger is a record of accounts that provides supporting details on individual balances,the total of which appears in a general ledger account.

Correct AnswerverifiedShow Answer

A business must invest only in an accounting information system in which the benefits received outweigh the cost of the system.

Correct AnswerverifiedShow Answer

Which of the following is NOT an example of a storage device in an accounting information system?

Correct AnswerverifiedShow Answer

When using a purchases journal,Accounts Payable is always credited.

Correct AnswerverifiedShow Answer

The sale of merchandise inventory for cash is recorded in the ________.

Correct AnswerverifiedShow Answer

In a perpetual inventory system,when cash sales are recorded,________.

Correct AnswerverifiedShow Answer

List and briefly discuss the two basic components of a computerized accounting information system.

Correct AnswerverifiedHardware is the electronic equipment tha...View AnswerShow Answer

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

Correct AnswerverifiedShow Answer

Which of the following is an example of a source document in a computerized accounting information system?

Correct AnswerverifiedShow Answer

Which of the following is an entry-level software package for accounting information systems?

Correct AnswerverifiedShow Answer

Companies are now spending less amounts of cash to ensure that their data and information are secure.

Correct AnswerverifiedShow Answer

A company has four vendors and the accounts payable subsidiary ledger shows the following balances. Calculate the accounts payable balance in the general ledger.

Correct AnswerverifiedShow Answer

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The purchases journal is used ...
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Hardware is the electronic equipment tha...
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