Question 1

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

Accepted Answer

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

Question 2

What is the segment return on assets ratio? What is it used for?

Accepted Answer

The segment return on assets is segment ...

Question 3

The segment return on assets:

Accepted Answer

A)  Reflects on the profitability of a segment.
B)  Is difficult to calculate because companies with traded stock are not required to report segment information.
C)  Is applicable whether segments earn profits or losses.
D)  Is calculated as segment sales divided by segment average assets.
E)  Is calculated as segment average assets divided by segment operating income.F) B) and C)
G) C) and D)

Question 4

Input devices include:

Accepted Answer

A)  Scanners.
B)  Software.
C)  Information processors.
D)  Ledgers.
E)  Printers.F) A) and B)
G) A) and E)

Question 5

A journal that is used to record and post transactions of a similar type is a(n) :

Accepted Answer

A)  Special journal.
B)  General journal.
C)  Perpetual journal.
D)  Columnar journal.
E)  All-purpose journal.F) A) and E)
G) A) and D)

Question 6

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000. Two days later Doughton returned $2,000 of the merchandise due to damage. Doughton would record the return of merchandise in the:

Accepted Answer

A)  Cash disbursements journal.
B)  General journal.
C)  Purchases journal.
D)  Accounts Payable controlling account.
E)  Cash receipts journal.F) C) and D)
G) D) and E)

Question 7

A company using the perpetual inventory system records the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

Accepted Answer

A) True 
 B)False

Question 8

The purchases journal is used for recording:

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

Special journals allow an efficient division of labor, which is also an effective control procedure.

Accepted Answer

A) True 
 B)False

Question 11

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the sales transaction in its sales journal, Maxie's would enter:

Accepted Answer

A)  $1,700 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cost of Goods Sold Dr./Inventory Cr. column.
B)  $2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.
C)  $2,600 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cash Cr. column.
D)  $2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Accounts Payable Dr./Purchases Cr. column.
E)  $1,700 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Other Accounts Dr. column.F) A) and C)
G) B) and D)

Question 12

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

Accepted Answer

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

Question 13

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not true about enterprise resource planning (ERP) software:

Accepted Answer

A)  ERP can be designed to link every part of a company's operations.
B)  ERP cannot be used to share data with customers and suppliers.
C)  ERP can include programs that extend from order taking to manufacturing to accounting.
D)  ERP can speed up business decision making and help reduce costs.
E)  ERP refers to programs that help manage a company's vital operations.F) A) and D)
G) All of the above

Question 15

An approach that enters and processes data into the accounting system as soon as source documents are available is called:

Accepted Answer

A)  Batch processing.
B)  Web communications.
C)  Computer programming.
D)  Online processing.
E)  Date storage.F) C) and D)
G) A) and D)

Question 16

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 17

Which of the following statements regarding accounting information systems is not true?

Accepted Answer

A)  Accounting information systems cannot improve on a company's competitive edge.
B)  Accounting information systems are designed to capture information about a company's transactions.
C)  Accounting information systems are more important than ever to decision makers.
D)  Accounting information systems consist of people, records, methods, and equipment.
E)  Accounting information systems are designed to provide output including financial, managerial, and tax reports.F) A) and E)
G) C) and D)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A sales journal is used to record cash sales.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

The purchases journal is used for recording:

Correct Answer
verified

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the sales transaction in its sales journal, Maxie's would enter:

Correct Answer
verified

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

Correct Answer
verified

What is the segment return on assets ratio? What is it used for?

Correct Answer
verified
The segment return on assets is segment ...
View Answer

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000. Two days later Doughton returned $2,000 of the merchandise due to damage. Doughton would record the return of merchandise in the:

Correct Answer
verified

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

Correct Answer
verified

Input devices include:

Correct Answer
verified

A journal that is used to record and post transactions of a similar type is a(n) :

Correct Answer
verified

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

Correct Answer
verified

A company using the perpetual inventory system records the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

Correct Answer
verified

Which of the following statements regarding accounting information systems is not true?

Correct Answer
verified

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

Correct Answer
verified

Special journals allow an efficient division of labor, which is also an effective control procedure.

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

A sales journal is used to record cash sales.

Correct Answer
verified

Which of the following is not true about enterprise resource planning (ERP) software:

Correct Answer
verified

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

Correct Answer
verified

An approach that enters and processes data into the accounting system as soon as source documents are available is called:

Correct Answer
verified

The segment return on assets:

Correct Answer
verified

Exam 7: Accounting Information Systems

The purchases journal is used for recording:

Correct AnswerverifiedShow Answer

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the sales transaction in its sales journal, Maxie's would enter:

Correct AnswerverifiedShow Answer

A subsidiary ledger is a listing of individual accounts that contains detailed information on specific accounts in the general ledger.

Correct AnswerverifiedShow Answer

What is the segment return on assets ratio? What is it used for?

Correct AnswerverifiedThe segment return on assets is segment ...View AnswerShow Answer

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000. Two days later Doughton returned $2,000 of the merchandise due to damage. Doughton would record the return of merchandise in the:

Correct AnswerverifiedShow Answer

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

Correct AnswerverifiedShow Answer

Input devices include:

Correct AnswerverifiedShow Answer

A journal that is used to record and post transactions of a similar type is a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A company using the perpetual inventory system records the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

Correct AnswerverifiedShow Answer

Which of the following statements regarding accounting information systems is not true?

Correct AnswerverifiedShow Answer

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

Correct AnswerverifiedShow Answer

Special journals allow an efficient division of labor, which is also an effective control procedure.

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

A sales journal is used to record cash sales.

Correct AnswerverifiedShow Answer

Which of the following is not true about enterprise resource planning (ERP) software:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An approach that enters and processes data into the accounting system as soon as source documents are available is called:

Correct AnswerverifiedShow Answer

The segment return on assets:

Correct AnswerverifiedShow Answer

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The segment return on assets is segment ...
View Answer

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