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| 1 | |
When an accounting information system delivers useful, understandable, timely, and pertinent information for effective decision making, which accounting information system principle is being followed? |
| | A) | Cost-benefit |
| | B) | Flexibility |
| | C) | Compatibility |
| | D) | Relevance |
| | E) | Control |
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| 2 | |
An accounting information system that has been designed and operates in conformance with a firm's activities, personnel, and structure follows which of the following principles of accounting information systems? |
| | A) | Flexibility |
| | B) | Compatibility |
| | C) | Consistency |
| | D) | Control |
| | E) | Relevance |
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| 3 | |
In today's business environment, internal controls that help assure that a firm's financial information is reliable are now more important than ever to help reassure investors and other interested parties that financial reports can be relied upon. Which principle of accounting information systems requires that an accounting information system to have internal controls? |
| | A) | Relevance |
| | B) | Cost-benefit |
| | C) | Control |
| | D) | Flexibility |
| | E) | Compatibility |
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| 4 | |
Which of the following is not a principle of accounting information systems? |
| | A) | Compatibility |
| | B) | Full Disclosure |
| | C) | Relevance |
| | D) | Flexibility |
| | E) | Cost-benefit |
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| 5 | |
Which of the following is not one of the five common components of a manual or computerized accounting system? |
| | A) | Information storage |
| | B) | Output device |
| | C) | Source documents |
| | D) | Input devices |
| | E) | All of the above |
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| 6 | |
Which of the following is not an output device in a computerized accounting system? |
| | A) | Paper files |
| | B) | Monitor |
| | C) | Printer |
| | D) | Web communications |
| | E) | LCD projectors |
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| 7 | |
In order to find out if a certain supplier or vendor had been paid the amount owed in a timely manner, which of the following records would need to be examined? |
| | A) | Balance Sheet |
| | B) | Schedule of Accounts Receivable |
| | C) | Accounts Payable Subsidiary Ledger |
| | D) | Schedule of Accounts Payable |
| | E) | Accounts Receivable Subsidiary Ledger |
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| 8 | |
Which of the following is least likely to be a controlling account? |
| | A) | Owner's Withdrawals |
| | B) | Office Equipment |
| | C) | Accounts Payable |
| | D) | Merchandise Inventory |
| | E) | All of the above |
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| 9 | |
Supplies were purchased for cash and the entry was recorded in the Cash Disbursements Journal. When a part of this supply purchase is returned to the vendor, a cash refund was received. The recording of this refund will be made in which special journal? |
| | A) | Sales Journal |
| | B) | Cash Receipts Journal |
| | C) | Purchases Journal |
| | D) | Cash Disbursements Journal |
| | E) | None of the above |
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| 10 | |
When using a single column Sales Journal, which it is not true about the column total? |
| | A) | Individual entries are posted to customer accounts |
| | B) | It is posted to Sales, only |
| | C) | The column total is posted at the end of the period, not every day |
| | D) | It is posted to Sales (cr.) and Accounts Receivable (dr.) |
| | E) | Individual entries are posted to the Accounts Receivable Subsidiary Ledger |
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| 11 | |
The total of the Schedule of Accounts Receivables must be the same as which of the following? |
| | A) | Cash balance |
| | B) | Trial balance total |
| | C) | Balance of the Accounts Payable account |
| | D) | Balance of the Accounts Receivable account |
| | E) | None of the above |
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| 12 | |
The process of totaling the numbers in a column is called which of the following? |
| | A) | Crossfooting |
| | B) | Journalizing |
| | C) | Posting |
| | D) | Inputting |
| | E) | Footing |
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| 13 | |
Which line of the following schedule is not correct? |
| | A) | | Closing entry | Sales Journal |
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| | B) | | Purchase of supplies for cash | Cash Disbursements Journal |
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| | C) | | Payment of wages | Cash Disbursements Journal |
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| | D) | | Sales return | General Journal |
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| | E) | | Purchase of supplies on account | Purchases Journal |
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| 14 | |
Which line of the following schedule is not correct? |
| | A) | | Cash deposit from sale of car | Cash Receipts Journal |
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| | B) | | Cash sale | Cash Receipts Journal |
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| | C) | | Cash paid to the bank | Cash Disbursements Journal |
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| | D) | | Cash paid for inventory | Purchases Journal |
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| | E) | | Sales return | General Journal |
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| 15 | |
Which of the following statements is false with regard to a Purchases Journal? |
| | A) | All purchases of inventory should be recorded there |
| | B) | All purchases on account of non-inventory items should be recorded there |
| | C) | All purchases on account should be recorded there |
| | D) | All purchases of inventory on account should be recorded there |
| | E) | None of the above |
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| 16 | |
Which of the following steps is not part of the process of proving the accuracy of a subsidiary ledger? |
| | A) | Making sure the total of the subsidiary ledger is equal to the balance in the controlling account |
| | B) | Making adjusting entries |
| | C) | Preparing a trial balance to make sure the total of debits equals the total of credits |
| | D) | Totaling the individual balances in the subsidiary ledger |
| | E) | None of the above |
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| 17 | |
When special journals are used, which is false about a General Journal? |
| | A) | It is required even when special journals are used |
| | B) | It is used to record adjusting entries |
| | C) | It is not needed when special journals are used |
| | D) | It is used to record sales returns and allowances |
| | E) | It is used to record sales of non-inventory assets |
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| 18 | |
Which of the following is false about the purpose of special journals? |
| | A) | Special journals are used to make the recording and posting of transactions more efficient. |
| | B) | Special journals are designed to meet the needs of individual firms |
| | C) | If a firm uses one special journal, they must use all the others as well |
| | D) | Special journals are not required in an accounting system. |
| | E) | As the number of transactions of a business increases, the usefulness of special journals increases. |
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| 19 | |
Many large companies have saved millions of dollars by using specialized, sometimes custom written, software to increase speed and efficiency of their extended operations. This software is called enterprise resource planning (ERP) software. Which of the following is not one of the firms that provide this software? |
| | A) | SAP |
| | B) | J.D. Edwards |
| | C) | Peoplesoft |
| | D) | Iomega |
| | E) | Oracle |
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| 20 | |
Which of the following is generally not used to define a business segment of a large company? |
| | A) | Number of employees |
| | B) | Geographic region |
| | C) | Similarity of product line |
| | D) | Similarity of marketing approach |
| | E) | None of the above |
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