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33) In an accounting information system, source documents are the documents which ________.
A) are not needed if a computerized system is used
B) detail the strategic planning of the business
C) have complete information about the financial statements
D) provide the evidence and data for accounting transactions
34) Which of the following is an example of a source document in a computerized accounting information
system?
A) purchase invoices
B) balance sheet
C) cash payments journal
D) income statement
35) Which of the following is true of source documents in an accounting information system?
A) All journal entries can be considered as source documents in an accounting information system.
B) Source documents provide control and reliability in an accounting information system.
C) A manual document cannot be considered as a source document in an accounting information system.
D) In a manual accounting information system, source documents refer to financial statements.
36) Which of the following is an example of a source document in a computerized accounting information
system?
A) statement of cash flows
B) balance sheet
C) bank checks
D) general ledger
37) Which of the following is true of data processing and storage in a computerized information system?
A) In a computerized accounting information system, processing includes manually journalizing
transactions and posting to the accounts.
B) In a computerized accounting information system, there will be a main centralized computer where
data is stored, which cannot be accessed from any other computers.
C) In both computerized and manual systems, all data are contained in paper documents and are often
stored in filing cabinets and off–site document warehouses.
D) In a computerized accounting information system, companies are spending increasingly large
amounts of cash to ensure that their data and information are secure.
38) The main computer where data is stored, which can be accessed from many different computers is
known as a(n) ________.
A) accounting information system
B) RAM
C) server
D) router
39) Which of the following is NOT an example of a storage device in an accounting information system?
A) computer
B) financial statements
C) filing cabinet
D) server
40) Which of the following is an input device in an accounting information system?
A) keyboard
B) Internet protocol
C) printer
D) router
41) Which of the following is an output device in an accounting information system?
A) keyboard
B) Internet protocol
C) printer
D) mouse
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42) Which of the following is true of outputs in an accounting information system?
A) In a manual system, reports and financial statements can be created using Word documents, Excel
spreadsheets, or PowerPoint.
B) In a computerized system, the software can generate reports instantaneously that cannot be formatted.
C) Examples of outputs in an accounting information system include purchase invoices, bank checks, and
sales invoices.
D) Since the output in an accounting information system is audited and error-free, it provides the
evidence and data for accounting transactions.
43) Which of the following is true of the comparison between a manual and a computerized accounting
information system?
A) In both manual and computerized systems, reports and financial statements must be created using
Word documents, Excel spreadsheets, or PowerPoint.
B) In a computerized system, the software can generate financial reports instantaneously that cannot be
formatted.
C) In a manual system, data are contained in paper documents, which are often stored in filing cabinets
and off-site document warehouses; whereas in a computerized system, data are stored on a main
computer called a server.
D) In both manual and computerized systems, processing data includes manually journalizing
transactions and posting to the accounts.
Learning Objective APP. B-2
1) The accounting is the same regardless of whether a business uses a manual or a computerized
accounting information system.
2) Most small businesses have computerized all of their accounting.
3) A general ledger is an accounting journal designed to record one specific type of transaction.
4) Generally, all transactions are recorded in both a special journal and the general journal.
5) Which of the following serves as the “journal of last resort”?
A) purchases journal
B) sales journal
C) general journal
D) cash payments journal
6) A special journal is ________.
A) an accounting journal designed to record one specific type of transaction
B) an accounting journal that holds individual accounts that support a specific general ledger account
C) a record of accounts that provides supporting details on individual balances, the total of which
appears in a general ledger account
D) a created list of the accounts used by a business entity to define each class of items for which cash is
spent or received
7) Adjusting entries are recorded in the ________.
A) cash payments journal
B) purchases journal
C) cash receipts journal
D) general journal
8) Credit sales of assets other than merchandise inventory occur infrequently and are recorded in the
________.
A) sales journal
B) cash receipts journal
C) accounts receivable journal
D) general journal
9) Depreciation expense is recorded in a ________.
A) cash payments journal
B) sales journal
C) cash receipts journal
D) general journal
10) Cash sales are recorded in the ________ journal.
A) general
B) sales
C) cash receipts
D) cash sales
11) The purchase of three computers for the sales staff, on account, is recorded in the ________ journal.
A) general
B) purchases
C) cash payments
D) equipment
12) List the four special journals that are often used in a manual accounting information system. State
what types of transactions are recorded in each of these special journals.
Answer:
13) A subsidiary ledger is a record of accounts that provides supporting details on individual balances,
the total of which appears in a general ledger account.
14) The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and
the remaining amounts owed to them.
15) The Accounts Receivable balance in the general ledger may or may not equal the sum of the accounts
in the accounts receivable subsidiary ledger.
16) A subsidiary ledger is ________.
A) an accounting journal designed to record a specific type of transaction
B) a created list of accounts used by a business entity to define each class of items for which cash is spent
or received
C) a complete record of business transactions recorded in a ledger over the life of a company
D) a record of accounts that provide supporting details on individual balances, the total of which appears
in a general ledger account
17) The accounts payable subsidiary ledger ________.
A) does not indicate the amount owed to each vendor
B) shows only a single total for the amount owed on account
C) lists vendors in alphabetical order, along with amounts paid to the vendors and the remaining
amounts owed to them
D) has a format that is entirely different from an accounts receivable subsidiary ledger
18) A control account ________.
A) does not appear on the balance sheet
B) has a balance that equals the sum of the balances in a group of related accounts in a subsidiary ledger
C) is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm’s
financial statements
D) holds individual accounts that support a general ledger account
19) Which of the following is true of an accounts receivable subsidiary ledger?
A) It does not include a receivable account for each customer, but includes a cumulative account for all
customers.
B) It contains information about the amount each customer purchased on credit, but excludes the
customer name.
C) The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts
receivable balance in the general ledger.
D) Companies keep an accounts payable subsidiary ledger that is entirely different from the accounts
receivable subsidiary ledger.
20) Dakota Company has four customers: A, B, C, and D. The accounts receivable balance in the general
ledger is $8683 and the accounts receivable subsidiary ledger of customers A, C, and D have $1346, $3296,
and $3340, respectively. Calculate the amount in the accounts receivable subsidiary ledger account of
customer B.
A) $7982
B) $2047
C) $1291
D) $701