Question 1

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

Accepted Answer

A)  It is inexpensive to implement.
B)  It does not provide financial benefits to both small and large corporations.
C)  It replaces separate software systems, such as sales and payroll.
D)  Its implementation requires a little commitment of time and people.

Question 2

The collection of time records is an Accounting Information System activity that is classified as a business transaction that involves the sale of merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 3

Hexa Corporation sold a product on credit for $2,235 to Merin. The cost of goods sold was $1,324. Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $2,235 in the:

Accepted Answer

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

Question 4

If there is cash involved in a particular business transaction then the transaction should be recorded in either:

Accepted Answer

A)  cash payments journal or cash receipts journal.
B)  cash payments journal or general journal.
C)  cash payments journal or cash receipts journal and in general journal.
D)  sales journal or purchases journal.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A source document provides the evidence and data for accounting transactions.

Accepted Answer

A) True 
 B)False

Question 7

Deal Corporation sells a product for $500 on account to Liza. This transaction will be recorded in the:

Accepted Answer

A)  cash payments journal.
B)  sales journal.
C)  cash receipts journal.
D)  purchase journal.

Question 8

Which of the following accounting information system activities is completed when merchandise inventory is sold?

Accepted Answer

A)  preparation and payment of payroll
B)  processing of sales invoice
C)  receipt of goods or services
D)  payment for goods or services

Question 9

A subsidiary ledger is:

Accepted Answer

A)  an accounting journal designed to record a specific type of transaction.
B)  a created list of the accounts used by a business entity to define each class of items for which cash is spent or received.
C)  a complete record of business transactions recorded in a ledger over the life of a company.
D)  a record of accounts that provide supporting details on individual balances, the total of which appears in a general ledger account.

Question 10

Cash receipts journal is a special journal used to record business transactions of all cash receipts and credit sales.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of a network?

Accepted Answer

A)  It connects a computer's hardware to the software.
B)  It does not link computers.
C)  It is the same as software.
D)  It allows different computers to share the same information.

Question 13

While recording a transaction in the cash receipts journal, the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns)of the cash receipts journal.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true of an accounts receivable subsidiary ledger?

Accepted Answer

A)  It does not include a receivable account for each customer, but includes a cumulative account for all customers.
B)  It contains information about the amount each customer purchased on credit, but excludes the customer name.
C)  The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts receivable balance in the general ledger.
D)  Companies keep an accounts payable subsidiary ledger that is entirely different than the accounts receivable subsidiary ledger.

Question 15

In a manual accounting information system, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint.

Accepted Answer

A) True 
 B)False

Question 16

In a purchases journal, the total of the ________ column is not posted to the general ledger.

Accepted Answer

A)  Merchandise Inventory DR
B)  Other Accounts DR, Amount
C)  Accounts Payable CR
D)  Office Supplies DR

Question 17

The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts in the accounts receivable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 18

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of a purchases journal?

Accepted Answer

A)  In a purchase journal, the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR for a periodic inventory system.
B)  Cash purchases are recorded in the purchases journal.
C)  A purchases journal is not used for a perpetual inventory system.
D)  In a purchases journal, the Other Accounts DR columns are used for purchases on account of items other than merchandise inventory and office supplies.

Question 20

The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

Deal Corporation sells a product for $500 on account to Liza. This transaction will be recorded in the:

Correct AnswerverifiedShow Answer

If there is cash involved in a particular business transaction then the transaction should be recorded in either:

Correct AnswerverifiedShow Answer

In a purchases journal, the total of the ________ column is not posted to the general ledger.

Correct AnswerverifiedShow Answer

While recording a transaction in the cash receipts journal, the Other Accounts CR column is used when a transaction involves a credit entry that is not listed in the headings (columns)of the cash receipts journal.

Correct AnswerverifiedShow Answer

Entries in the sales journal are posted to both the accounts receivable subsidiary ledger and the general ledger.

Correct AnswerverifiedShow Answer

The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts in the accounts receivable subsidiary ledger.

Correct AnswerverifiedShow Answer

Which of the following is true of a purchases journal?

Correct AnswerverifiedShow Answer

Cash receipts journal is a special journal used to record business transactions of all cash receipts and credit sales.

Correct AnswerverifiedShow Answer

A source document provides the evidence and data for accounting transactions.

Correct AnswerverifiedShow Answer

Which of the following accounting information system activities is completed when merchandise inventory is sold?

Correct AnswerverifiedShow Answer

In a manual accounting information system, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The collection of time records is an Accounting Information System activity that is classified as a business transaction that involves the sale of merchandise inventory.

Correct AnswerverifiedShow Answer

The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.

Correct AnswerverifiedShow Answer

Which of the following is true of an accounts receivable subsidiary ledger?

Correct AnswerverifiedShow Answer

A subsidiary ledger is:

Correct AnswerverifiedShow Answer

Hexa Corporation sold a product on credit for $2,235 to Merin. The cost of goods sold was $1,324. Assuming that the firm is following a perpetual inventory system and using a sales journal, it will record $2,235 in the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true of a network?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified