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| 1 | |
Accounting systems are comprised solely of the equipment that is used to capture data about the transactions of an entity and to generate from that data a variety of financial, managerial, and tax accounting reports. |
| | A) | True |
| | B) | False |
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| 2 | |
The compatibility principle is an accounting information system principle requiring that an accounting information system aid managers in controlling and monitoring business activities. |
| | A) | True |
| | B) | False |
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| 3 | |
When an information system provides data that produces and reports useful, understandable, timely and pertinent information for effective decision-making, it is following the relevance principle. |
| | A) | True |
| | B) | False |
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| 4 | |
The flexibility principle is the accounting information systems principle that requires that an accounting system be able to adapt to changes in the company. |
| | A) | True |
| | B) | False |
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| 5 | |
An information system principle requiring that an accounting information system conform to a company's activities, personnel, and structure is the control principle. |
| | A) | True |
| | B) | False |
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| 6 | |
Making every input device of a company have maximum security would be very costly, but would ensure data security. This situation (trade offs between cost and security) is an example of the need for the cost-benefit principle in accounting information system principle. |
| | A) | True |
| | B) | False |
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| 7 | |
An information storage unit is the component of an accounting system that interprets, manipulates, and summarizes the recorded information so that it can be used in analyses and reports. |
| | A) | True |
| | B) | False |
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| 8 | |
An invoice and a receipt are examples of source documents used as the basis for making accounting entries. |
| | A) | True |
| | B) | False |
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| 9 | |
Input devices are the means of transferring information from source documents to the data processing component of an accounting system. |
| | A) | True |
| | B) | False |
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| 10 | |
An output device is the component of an accounting system that keeps the inputted data in a readily accessible format so that financial reports can be drawn from it efficiently. |
| | A) | True |
| | B) | False |
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| 11 | |
Special journals are put into use by companies to make the journalizing and posting of transactions more efficient. |
| | A) | True |
| | B) | False |
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| 12 | |
When a company wants to start using special journals, there is no need to evaluate the specific needs of that company. |
| | A) | True |
| | B) | False |
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| 13 | |
A listing of each credit customer with an outstanding balance can be found printed on the Schedule of Accounts Receivable. |
| | A) | True |
| | B) | False |
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| 14 | |
Neither the Accounts Receivable account nor the Accounts Payable account are controlling accounts. |
| | A) | True |
| | B) | False |
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| 15 | |
The sales journal is used to record the sale of merchandise. |
| | A) | True |
| | B) | False |
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| 16 | |
The posting of a sales return for an item that was originally purchased by a credit customer will not involve a subsidiary ledger. |
| | A) | True |
| | B) | False |
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| 17 | |
The special journal that is used to record all payments of cash is called a cash disbursements journal. |
| | A) | True |
| | B) | False |
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| 18 | |
Crossfooting is the process of footing a column of numbers that are debits, footing a column of numbers that are credits and then verifying that the total of the two columns are equal. |
| | A) | True |
| | B) | False |
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| 19 | |
The purchases journal can be used to record purchases of merchandise, supplies and equipment if those purchases are made on account. |
| | A) | True |
| | B) | False |
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| 20 | |
The amounts recorded in the purchases journal that relate to individual Account Payable accounts are posted every day. |
| | A) | True |
| | B) | False |
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| 21 | |
A list of the balances of all the accounts in the accounts payable ledger that is summed to show the total amount of accounts payable outstanding is called a schedule of accounts payable. |
| | A) | True |
| | B) | False |
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| 22 | |
A cash disbursements journal that has a column for check numbers is also called a cash payments journal. |
| | A) | True |
| | B) | False |
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| 23 | |
The sales journal is posted to the Sales account and Accounts Receivable controlling account at the end of every day. |
| | A) | True |
| | B) | False |
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| 24 | |
The programs that are used to direct the operations of the physical equipment in a computerized accounting information system are called computer software. |
| | A) | True |
| | B) | False |
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| 25 | |
Computer technology has significantly reduced the amount of time spent journalizing and posting business transactions. |
| | A) | True |
| | B) | False |
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| 26 | |
Computer networks can only be connected by physical or hard-wire connections. |
| | A) | True |
| | B) | False |
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| 27 | |
Batch processing means that the information is collected for a period of time and then processed rather than being processed as soon as it is collected. |
| | A) | True |
| | B) | False |
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| 28 | |
Enterprise application software is having a significant effect on the business operations using these applications and the future market for this software looks promising. |
| | A) | True |
| | B) | False |
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| 29 | |
A computer network is a link among computers giving different users and different computers access to a common database and programs. |
| | A) | True |
| | B) | False |
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| 30 | |
A business segment is the part of a company that is separately identified by its management according to products or services or by the geographical market it serves. |
| | A) | True |
| | B) | False |
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| 31 | |
Managers are anxious to fully disclose information about the individual segments of their business. |
| | A) | True |
| | B) | False |
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