Question 1

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record ___________________________ and __________________ for each sale. This column is used in the perpetual system but not in the periodic.
________________________________________

Accepted Answer

Chapter 07 Accounting Information Systems Answer Key
True / False Questions

Question 2

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

Accepted Answer

While accounting information systems are becoming more accurate and sophisticated, decision makers still need a basic understanding of how these systems work in order to effectively interpret and use the information provided to make informed decisions.

Question 3

The following information is available for AllBev, Inc. (all amounts are in millions):

Accepted Answer

a. Determine the segment return on assets for each geographic segment.
b. Comment on the results. How do the segments compare with respect to profitability?
c. What measures could be taken to improve segment return?

Question 4

Philip Company uses special journals to record transactions. Below are the sales journal and cash receipts journal for Philip. Prepare the following:
a. Open an accounts receivable subsidiary ledger having a T-account for each customer. Post the invoices to the subsidiary ledger.
b. Open an Accounts Receivable controlling T-Account. Post the end-of the month totals that affect the Accounts Receivable account only.
c. Prepare a schedule of accounts receivable and prove that its total equals the Accounts Receivable controlling account balance.

Accepted Answer

The answer of Philip Company uses special journals to record...

Question 5

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.

Accepted Answer

The answer of Lester Company uses special journals to record...

Question 6

Williams Company began business on May 1. They use the perpetual inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.

Accepted Answer

The answer of Williams Company began business on May 1....

Question 7

Argon Sales uses special journals to record business transactions. Argon sells construction equipment. Argon completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Accepted Answer

The answer of Argon Sales uses special journals to record...

Question 8

The following information is available for Bosc, Inc. (all amounts are in millions):

Accepted Answer

The answer of The following information is available for Bosc,...

Question 9

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the periodic inventory system.

Accepted Answer

The answer of The Sun Company completed the following sales...

Question 10

The following special journal is taken from a merchandising company that uses the perpetual inventory system:

Accepted Answer

The answer of The following special journal is taken from...

Question 11

Williams Company began business on May 1. They use the periodic inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.

Accepted Answer

The answer of Williams Company began business on May 1....

Question 12

The five basic principles of accounting information systems are control, competency, compatibility, flexibility and cost-benefit.

Accepted Answer

The answer of The five basic principles of accounting information...

Question 13

A company uses four special journals: purchases, sales, cash receipts, and cash disbursements. The following transactions were incurred during August:

Accepted Answer

The answer of A company uses four special journals: purchases,...

Question 14

Outdoors Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.

Accepted Answer

The answer of Outdoors Unlimited uses special journals to record...

Question 15

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the perpetual inventory system.

Accepted Answer

The answer of The Sun Company completed the following sales...

Question 16

A company records its transactions and events in four special journals and a general journal. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Accepted Answer

The answer of A company records its transactions and events...

Question 17

Medco Company uses special journals to record transactions. Medco uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.

Accepted Answer

The answer of Medco Company uses special journals to record...

Question 18

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

Accepted Answer

This is a correct definition of what accounting information systems do.

Question 19

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.

Accepted Answer

The answer of Renton Co. uses special journals to record...

Question 20

The Woodview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the periodic inventory method. The following transactions occurred during the month of December:

Accepted Answer

The answer of The Woodview Company uses a sales journal,...

Quiz 7: Accounting Information Systems

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _ and for each sale. This column is used in the perpetual system but not in the periodic. ________________

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

The following information is available for AllBev, Inc. (all amounts are in millions):

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.

Williams Company began business on May 1. They use the perpetual inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.

Argon Sales uses special journals to record business transactions. Argon sells construction equipment. Argon completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

The following information is available for Bosc, Inc. (all amounts are in millions):

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the periodic inventory system.

The following special journal is taken from a merchandising company that uses the perpetual inventory system:

Williams Company began business on May 1. They use the periodic inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.

The five basic principles of accounting information systems are control, competency, compatibility, flexibility and cost-benefit.

A company uses four special journals: purchases, sales, cash receipts, and cash disbursements. The following transactions were incurred during August:

Outdoors Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the perpetual inventory system.

A company records its transactions and events in four special journals and a general journal. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Medco Company uses special journals to record transactions. Medco uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.

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

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.

The Woodview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the periodic inventory method. The following transactions occurred during the month of December:

Quiz 7: Accounting Information Systems

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record ___________________________ and __________________ for each sale. This column is used in the perpetual system but not in the periodic. ________________________________________

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

The following information is available for AllBev, Inc. (all amounts are in millions):

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.

Williams Company began business on May 1. They use the perpetual inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.

Argon Sales uses special journals to record business transactions. Argon sells construction equipment. Argon completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

The following information is available for Bosc, Inc. (all amounts are in millions):

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the periodic inventory system.

The following special journal is taken from a merchandising company that uses the perpetual inventory system:

Williams Company began business on May 1. They use the periodic inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.

The five basic principles of accounting information systems are control, competency, compatibility, flexibility and cost-benefit.

A company uses four special journals: purchases, sales, cash receipts, and cash disbursements. The following transactions were incurred during August:

Outdoors Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.

The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the perpetual inventory system.

A company records its transactions and events in four special journals and a general journal. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.

Medco Company uses special journals to record transactions. Medco uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.

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

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.

The Woodview Company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. They use the periodic inventory method. The following transactions occurred during the month of December:

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _ and for each sale. This column is used in the perpetual system but not in the periodic. ________________