Question 1

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 2

An automobile parts retailer purchases merchandise inventory for cash.When using a manual accounting information system,this transaction is recorded in the ________.

Accepted Answer

A)  purchases journal
B)  general journal
C)  cash payments journal
D)  sales journal

Question 3

Which of the following is TRUE of outputs in an accounting information system?

Accepted Answer

A)  In a manual system,reports and financial statements can be created using Word documents,Excel spreadsheets,or PowerPoint.
B)  In a computerized system,the software can generate reports instantaneously that cannot be formatted.
C)  Examples of outputs in an accounting information system include purchase invoices,bank checks,and sales invoices.
D)  Since the output in an accounting information system is audited and error-free,it provides the evidence and data for accounting transactions.

Question 4

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 increases

Question 5

Northern Company sold goods to Eastern Enterprises for $1,000 on account.Cost of goods sold was $745.Northern uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

Accepted Answer

A)  Accounts Receivable DR,Sales Revenue CR
B)  Cost of Goods Sold CR,Merchandise Inventory DR
C)  Cost of Goods Sold DR,Merchandise Inventory CR
D)  Sales Revenue DR,Accounts Receivable CR

Question 6

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 7

The sales journal is used for all sales of merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 8

On April 1,a hardware retailer purchases inventory on account for $1,800.Which of the following correctly describes the effect of this transaction? Assume a perpetual inventory system is used.

Accepted Answer

A)  Merchandise Inventory decreases by $1,800 and Accounts Receivable decreases by $1,800.
B)  Merchandise Inventory decreases by $1,800 and Accounts Receivable increases by $1,800.
C)  Merchandise Inventory increases by $1,800 and Accounts Payable decreases by $1,800.
D)  Merchandise Inventory increases by $1,800 and Accounts Payable increases by $1,800.

Question 9

St.Petersburg Company makes a $1,200 purchase of merchandise inventory for cash.This transaction will be recorded in the ________.

Accepted Answer

A)  cash payments journal
B)  general journal
C)  cash receipts journal
D)  purchase journal

Question 10

List the four special journals that are often used in a manual accounting information system.State what types of transactions are recorded in each of these special journals.

Accepted Answer

1.Sales journal: used to record sales on...

Question 11

When using Quickbooks,the software automatically transfers the amounts from the general ledger to Excel.The accountant can then prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 12

On May 31,a retail firm pays rent of $2,400 for the month of May.When this transaction is recorded in the cash payments journal,________.

Accepted Answer

A)  assets and equity will increase by $2,400
B)  assets and liabilities will decrease by $2,400
C)  assets and equity will decrease by $2,400
D)  liabilities and equity will increase by $2,400

Question 13

An enterprise resource planning (ERP) is a ________.

Accepted Answer

A)  hardware system that controls the access of employees to different levels of production in a firm
B)  software system used by small companies to record revenue and expenses
C)  hardware system of electronic linkages that allows different computers to share the same information
D)  software system that can integrate all of a company's functions,departments,and data into a single system

Question 14

In a networked system,the server stores the program and the data.

Accepted Answer

A) True 
 B)False

Question 15

Define enterprise resource planning (ERP)systems and state one advantage and one disadvantage of ERP systems.

Accepted Answer

Enterprise resource planning systems int...

Question 16

An accounting information system is said to have good flexibility,if it ________.

Accepted Answer

A)  works smoothly with the business's employees and organizational structure
B)  safeguards a business's assets and reduces the likelihood of fraud and errors
C)  provides information that will improve decision making and reduce uncertainty
D)  accommodates changes in the business over time

Question 17

An accounting information system collects,records,stores,and processes accounting data to produce information that is useful for decision makers.

Accepted Answer

A) True 
 B)False

Question 18

Examples of source documents in an accounting information system include the statement of cash flows and sales journal.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Bronze Company had the following transactions:
  Use the following cash receipts journal to record the preceding transactions.The company uses the perpetual inventory system.

Accepted Answer

The answer of Bronze Company had the following transactions:
 ...

Exam 7: Accounting Information Systems

On May 31,a retail firm pays rent of $2,400 for the month of May.When this transaction is recorded in the cash payments 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

On April 1,a hardware retailer purchases inventory on account for $1,800.Which of the following correctly describes the effect of this transaction? Assume a perpetual inventory system is used.

Correct AnswerverifiedShow Answer

Which of the following is TRUE of outputs in an accounting information system?

Correct AnswerverifiedShow Answer

Examples of source documents in an accounting information system include the statement of cash flows and sales journal.

Correct AnswerverifiedShow Answer

When using Quickbooks,the software automatically transfers the amounts from the general ledger to Excel.The accountant can then prepare the financial statements.

Correct AnswerverifiedShow Answer

An enterprise resource planning (ERP) is a ________.

Correct AnswerverifiedShow Answer

Northern Company sold goods to Eastern Enterprises for $1,000 on account.Cost of goods sold was $745.Northern uses a perpetual inventory system and special journals.The cost of goods sold is recorded in the ________ column of the sales journal.

Correct AnswerverifiedShow Answer

An accounting information system collects,records,stores,and processes accounting data to produce information that is useful for decision makers.

Correct AnswerverifiedShow Answer

An accounting information system is said to have good flexibility,if it ________.

Correct AnswerverifiedShow Answer

In a networked system,the server stores the program and the data.

Correct AnswerverifiedShow Answer

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

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

St.Petersburg Company makes a $1,200 purchase of merchandise inventory for cash.This transaction will be recorded in the ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Bronze Company had the following transactions: Use the following cash receipts journal to record the preceding transactions.The company uses the perpetual inventory system.

Correct AnswerverifiedShow Answer

The sales journal is used for all sales of merchandise inventory.

Correct AnswerverifiedShow Answer

List the four special journals that are often used in a manual accounting information system.State what types of transactions are recorded in each of these special journals.

Correct Answerverified1.Sales journal: used to record sales on...View AnswerShow Answer

Define enterprise resource planning (ERP)systems and state one advantage and one disadvantage of ERP systems.

Correct AnswerverifiedEnterprise resource planning systems int...View AnswerShow Answer

An automobile parts retailer purchases merchandise inventory for cash.When using a manual accounting information system,this transaction is recorded in the ________.

Correct AnswerverifiedShow Answer

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1.Sales journal: used to record sales on...
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Enterprise resource planning systems int...
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Correct Answer
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