FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 27: Understanding Accounting Information Systems and their Components

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

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

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

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

The cash payments journal has two debit columns - one for Accounts Payable and one for Merchandise Inventory.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

Unlike the sales journal, entries in the cash receipts journal are posted monthly to the accounts receivable subsidiary ledger and daily to the general ledger.

Entry-level accounting software ________.

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

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

An accounting information system is said to be relevant, if it ________.

Ocean Corporation sells a product for $500 on account to Great Atlantic Sales. This transaction will be recorded in the ________.

The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.

A disadvantage of a typical enterprise resource planning system is that it cannot be offered through cloud computing.

The accounting is the same regardless of whether a business uses a manual or a computerized accounting information system.

The purchases journal of a business that uses the periodic inventory system will include a column titled ________.

Bronze Corporation had the following transactions: $\begin{array} { | l | l | } \hline \text { Jun. } 6 & \text { Sold merchandise inventory for cash, } \$ 2,200 \text {. Cost of goods, } \$ 1,400 . \\\hline 9 & \text { Collected interest revenue of } \$ 2,350 . \\\hline 15 & \text { Received cash from Jim Rhodes, } \$ 1,100 \text {, on account. There was no discount. } \\\hline 27& \begin{array} { l } \text { Received } \$ 5,400 \text { from Steve McNeil representing } \$ 5,292 \text { he owed plus } \$ 108 \text { sales discount } \\\text { forfeited. }\end{array} \\\hline\end{array}$ Use the following cash receipts journal to record the preceding transactions. The company uses the perpetual inventory system.

Which of the following transactions is recorded in the purchases journal?

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

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

The cash payments journal is a special journal used to record cash payments by currency but not by check.

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.

The cash disbursements journal is also called the check register.

A subsidiary ledger is ________.