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Exam 7: Accounting Information Systems

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Question 91

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After posting is completed, there may be an error if:

A) The sum of the supplier account balances does not equal the general ledger Accounts Payable controlling account balance.
B) The sum of the accounts receivable ledger does not equal the balance in the sales journal.
C) The sum of the accounts receivable ledger does not equal the balance in the Sales account.
D) The sum of the supplier account balances does not equal the total in the purchases journal.
E) The balance in the sales journal does not equal the Accounts Receivable account balance.

F) D) and E)
G) A) and B)

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Question 92

Multiple Choice

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Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

A) Flexibility principle.
B) Relevance principle.
C) Compatibility principle.
D) Cost-Benefit principle.
E) Control principle.

F) B) and D)
G) A) and E)

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Question 93

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Internal controls include policies to protect company assets and achieve compliance with laws and regulations.

Examples of other subsidiary ledgers besides those for accounts receivable and accounts payable may include all of the following except:

A special journal is used to record and post transactions of a similar type.

Subsidiary ledgers are not needed in perpetual inventory systems because the accounting system captures sufficient details to support analyses that decision makers need.

The process of adding the Debit column totals, then the credit column totals of a journal and comparing the two sums for equality is an example of:

Which of the following journals would a company use to record cash collections from customers, net of discounts taken?

A company would use which of the following journals to record cash payments?

When auditors audit financial statements and a company's controls they rely on accounting system databases.

______________consist of people, records, methods, and equipment that collect and process data from transactions and events, organize them in useful reports and communicate results to decision makers.

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

The purchases journal is typically used to record only purchases of inventory.

Which of the following statements regarding accounting information systems is not true?

The sales journals of companies using the perpetual and periodic inventory systems differ in that under the perpetual system a column is used to record cost of goods sold and inventory amounts for each sale but not the periodic system.

A sales journal is used to record cash sales.

A company sells merchandise on credit for $6,000. The merchandise cost is $3,400. The journal that the transaction would be recorded in is the: