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Exam 7: Accounting Information Systems

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Question 1

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The control principle for accounting information systems requires that the:

A) Benefits from an activity outweigh the costs of the activity.
B) System report useful, understandable, timely, and pertinent information for effective decision making.
C) System must have internal controls.
D) System adapts to changes in the company, business environment, and needs of decision makers.
E) System conforms to a company's activities, personnel, and structure.

F) B) and C)
G) A) and B)

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Question 2

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____________________ are the means to take information out of an accounting system and make it available to users.

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Output devices

Question 3

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A list of all the accounts in the accounts receivable ledger with their balances and the total is a(n) :

Off-the-shelf accounting software is not adequate to meet the needs of small businesses.

Which of the following does not apply to enterprise resource planning (ERP) software:

A business segment:

A procedure called direct posting of sales invoices can substitute for the sales journal.

___________________ processing enters and processes data as soon as source documents are available.

List the five basic principles of accounting information systems.

All of the following statements regarding accounting information systems are true except:

Match the following terms with the appropriate definitions.

Lester Company uses special journals to record transactions.All of the companies listed below supply inventory to Lester except Harry Co.that supplies equipment.Use the purchases journal given below to answer the following questions: a.Foot and crossfoot the journal for accuracy. b.Identify the error and indicate how to correct the error. c.When Lester compares the general ledger Accounts Payable account to the Accounts Payable ledger,it notices that the general ledger control account is $10,000 more that the schedule of Accounts Payable.What is the most likely cause and how should it be corrected?

The purchases journal is used to record cash purchases of merchandise.

Discuss how technology based information systems affect accounting.

Three transactions that would be recorded in the sales journal are: (1)recording sales taxes (2)recording sales returns and allowances and (3)recording purchases discounts.

A company issued a check for $7,900 in payment of merchandise.Identify the journal the transaction would be recorded in.

Discuss the differences in the special journals between a company using a perpetual inventory system and one using a periodic inventory system.

If the total balance of the accounts receivable ledger equals the total of the controlling Accounts Receivable account,then the accounts are presumed to be correct.

What are the five basic components of accounting information systems?

Renton Co.uses special journals to record its transactions.They use the perpetual inventory system.Shown below are the purchasing and cash disbursement transactions for current month of May: Record these transactions in the following journals.