Question 1

Accounting information systems collect and process data about transactions and events, organize them in useful forms, and communicate results to decision makers.

Accepted Answer

This is the definition of accounting information systems.

Question 2

Because accounting information systems are so accurate, decision makers in practice do not need to have a basic knowledge of how the systems work.

Accepted Answer

Decision makers still need to have a basic understanding of how accounting information systems work in order to interpret the data and make informed decisions.

Question 3

A management information system (MIS) is designed to collect and process data within an organization for the purpose of providing users with information.

Accepted Answer

A management information system (MIS) is indeed designed to collect and process data within an organization for the purpose of providing users with information.

Question 4

Enterprise-application software packages keep the programs that manage a company's vital operations.

Accepted Answer

Enterprise-application software packages are specifically designed to manage a company's vital operations, such as customer relationship management, human resources management, accounting, and inventory management.

Question 5

The Purchases Journal is the same in both the periodic and perpetual systems.

Accepted Answer

In a periodic system, the Purchases Journal records all purchases of merchandise on credit, focusing on inventory purchases. In a perpetual system, inventory purchases are recorded directly in the Inventory account and the Accounts Payable account, reflecting immediate updates to inventory levels, making the nature of the Purchases Journal different between the two systems.

Question 6

A special journal is an all-purpose journal where we can record any other transactions not captured in special journals.

Accepted Answer

A special journal is designed for recording a specific type of transaction in a more efficient manner, not for all-purpose or miscellaneous transactions.

Question 7

Computer hardware is the programs that direct the operations of computer hardware.

Accepted Answer

Computer hardware refers to the physical parts of a computer, such as the motherboard, CPU, and RAM. Computer software, on the other hand, refers to the programs and operating systems that run on the hardware and direct its operations. Therefore, computer hardware is not the programs that direct the operations of computer hardware.

Question 8

The periodic system does not record the increase in cost of goods sold and decrease in inventory at the time of sale.

Accepted Answer

The periodic system only updates the cost of goods sold and inventory at the end of a given period, rather than at the time of each sale. Therefore, it does not accurately reflect the changes in inventory and cost of goods sold in real-time.

Question 9

Source documents are a group of components that collect and process raw financial data into timely, accurate, relevant, and cost-effective information to meet the purposes of internal and external users.

Accepted Answer

Source documents are the original records that contain the details of a business transaction and serve as the basis for recording entries in the accounting system, not the components that process data into information.

Question 10

When posting from special journals all debit and credit entries are entered as separate amounts.

Accepted Answer

In special journals, transactions of similar nature are grouped together, and the total of these transactions is posted to the general ledger, not each debit and credit entry separately.

Question 11

Accounting information systems are designed to capture information about a company's transactions and to provide output including financial statements and special purpose reports.

Accepted Answer

Accounting information systems are specifically designed to record and capture financial transactions and provide meaningful output for decision-making purposes. This includes generating financial statements such as balance sheets, income statements, and cash flow statements. Special purpose reports can also be created to meet specific informational needs.

Question 12

A special journal is any journal used for recording and posting transactions of a similar type.

Accepted Answer

A special journal is a journal used for recording and posting transactions of a similar type, such as a sales journal or a cash receipts journal.

Question 13

Most transactions for merchandising businesses fall into four groups: sales on credit, purchases on credit, cash receipts, and cash disbursements.

Accepted Answer

This statement is true. Most transactions for merchandising businesses are related to sales on credit, purchases on credit, cash receipts, and cash disbursements.

Question 14

The MIS is a subsystem of the accounting information system.

Accepted Answer

The MIS (Management Information System) is a separate system that supports decision-making activities of managers by providing them with timely and relevant information. It may use accounting data along with other data sources, but it is not a subsystem of the accounting information system.

Question 15

Under the perpetual system, special journals are not required.

Accepted Answer

Under the perpetual system, special journals are still used to record common transactions such as sales, purchases, and cash receipts/payments. However, the use of special journals may be less necessary due to the real-time updates of inventory and account balances in the accounting software.

Question 16

A sales journal is used for recording cash sales.

Accepted Answer

A sales journal is used for recording credit sales, not cash sales. Cash sales are typically recorded in a cash receipts journal.

Question 17

Enterprise-application software is used primarily for journal entries.

Accepted Answer

Enterprise-application software refers to software used for large-scale business operations such as accounting, human resources, supply chain management, and customer relationship management. While journal entries may be included in the accounting module of the software, it is not the primary function of enterprise-application software.

Question 18

Enterprise-application software is a stand-alone program not commonly used in North America.

Accepted Answer

Enterprise-application software is actually commonly used in North America. It refers to software designed to support the goals, processes, and data of large organizations or businesses. Examples include customer relationship management (CRM) systems, enterprise resource planning (ERP) software, and supply chain management systems.

Question 19

The General Ledger system represents the primary data base in the AIS.

Accepted Answer

The General Ledger system is the primary data base in the AIS, as it records all financial transactions and account balances.

Question 20

A management information system (MIS) is designed to collect and process data within an organization for the purpose of providing users with information.

Accepted Answer

A management information system (MIS) is indeed designed to collect and process data within an organization for the purpose of providing users with information.

Quiz 11: Accounting Information Systems

Accounting information systems collect and process data about transactions and events, organize them in useful forms, and communicate results to decision makers.

Because accounting information systems are so accurate, decision makers in practice do not need to have a basic knowledge of how the systems work.

A management information system (MIS) is designed to collect and process data within an organization for the purpose of providing users with information.

Enterprise-application software packages keep the programs that manage a company's vital operations.

The Purchases Journal is the same in both the periodic and perpetual systems.

A special journal is an all-purpose journal where we can record any other transactions not captured in special journals.

Computer hardware is the programs that direct the operations of computer hardware.

The periodic system does not record the increase in cost of goods sold and decrease in inventory at the time of sale.

Source documents are a group of components that collect and process raw financial data into timely, accurate, relevant, and cost-effective information to meet the purposes of internal and external users.

When posting from special journals all debit and credit entries are entered as separate amounts.

Accounting information systems are designed to capture information about a company's transactions and to provide output including financial statements and special purpose reports.

A special journal is any journal used for recording and posting transactions of a similar type.

Most transactions for merchandising businesses fall into four groups: sales on credit, purchases on credit, cash receipts, and cash disbursements.

The MIS is a subsystem of the accounting information system.

Under the perpetual system, special journals are not required.

A sales journal is used for recording cash sales.

Enterprise-application software is used primarily for journal entries.

Enterprise-application software is a stand-alone program not commonly used in North America.

The General Ledger system represents the primary data base in the AIS.

A management information system (MIS) is designed to collect and process data within an organization for the purpose of providing users with information.