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Exam 7: Accounting Information Systems

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Question 61

True/False

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Special journals allow an efficient division of labor,which is also an effective control procedure.

A) True
B) False

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Question 62

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When the sales journal's column for accounts receivable and sales is totaled at the end of the month,its total is:

A) Debited to Sales and credited to Accounts Receivable.
B) Debited to Accounts Receivable and credited to Cash.
C) Debited to Cash and credited to Accounts Receivable.
D) Debited to Accounts Receivable and credited to Sales.
E) Debited to Cash and credited to Sales.

F) C) and D)
G) A) and B)

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Question 63

Multiple Choice

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All of the following statements regarding internal control procedures are true except:

A company uses a sales journal,purchases journal,cash receipts journal,cash disbursements journal,and general journal.A perpetual inventory system is used.The following transactions were completed by the company during the current month of October: Record these transactions in the appropriate journal shown below.

The five fundamental principles of accounting information systems are:

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. Dec 1 Sold merchandise for $6,700 on credit to the Two Rivers Co.,terms 2/10,n/30. Invoice no.1455.Cost of the merchandise sold is $3,600. Dec 1 Sold merchandise for $3,400 on credit to the Berlin Co.,terms 2/10,n/30.Invoice no.1456.Cost of the merchandise sold is $1,800. Dec 2 Sold merchandise for $590 for cash to the Ellison Co.Invoice no.1457.Cost of the merchandise sold is $300. Dec 3 Borrowed $10,000 from Custer Bank on a long-term note payable. Dec 3 Sold merchandise for $7,200 on credit to the Amherst Co.,terms 2/10,n/30.Invoice no.1458.Cost of the merchandise sold is $4,000. Dec 5 Received the amount due from the Two Rivers Co.from the sale on December 1. Dec 6 Sold merchandise on credit for $950 to the Waupaca Co.,terms 2/10,n/30.Invoice No.1459. Dec 6 Received the amount due from the Berlin Co.from the sale on December 1. a.Use the sales journal and the cash receipts journal to record these transactions. b.Prepare a schedule of accounts receivable.There was no accounts receivable balance at December 1.

A business segment is a part of a company that is separately identified by its products or services,or by the geographic market it serves.

The accounts receivable ledger:

To check for accuracy after posting: first a trial balance is completed,then,the subsidiary ledgers are tested by preparing a schedule of the controlling account.

A sales journal is used to record cash sales.

The following information is available for some of Kalo's segments (all amounts are in millions): 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?

Kim Jordan,founder of New Belgium Brewing Company,knew that accounting systems were important for success.Explain how Kim used an accounting system to assess business operations.

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system outweigh the costs of that activity.

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.Use the sales journal and the cash receipts journal to record these transactions. b.Prepare a schedule of accounts receivable.There was no accounts receivable balance at December 1.

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

The purchases journal is identical under both the periodic and the perpetual inventory systems.

A company had average total assets of $982,450 and net income of $190,700,and reports various segment information.Segment A had average total assets of $437,800 and segment operating income of $98,230.Segment B had average assets of $151,200 and segment operating income of $16,190.Calculate the segment return on assets for Segment B.

Computer networks are links among computers giving different users and different computers access to common databases and programs.

______________________ capture information from source documents and enable its transfer to the system's information processing component.

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.