Friday, 14 June 2019

Which of the following is a benefit of using a computerized accounting information​ system?


Which of the following is a benefit of using a computerized accounting information system?

A.
There is no need to review the financial statements for accuracy.
B.
The software is easy to use and thus no training or financial statement review is necessary.
C.
The software can accurately measure the intrinsic value of the firm using the
builtminusin
simulation techniques.
D.
The software automatically transfers the amounts from the general ledger to the financial statements.

When using​ Quickbooks, the Vendors tab is used to record a bill that has been received.
True
False

________ refers to purchasing software and data storage from a third party.
A.
Networking
B.
Resource planning
C.
Entryminuslevel
software
D.
Cloud computing

An enterprise resource planning (ERP) is a ________.

A.
hardware system that controls the access of employees to different levels of production in a firm
B.
hardware system of electronic linkages that allows different computers to share the same information
C.
software system that can integrate all of a​ company's functions,​ departments, and data into a single system
D.
software system used by small companies to record revenue and expenses

A disadvantage of a typical enterprise resource planning system is that it cannot be offered through cloud computing.
True
False

Rockville Company makes a $1,200 purchase of merchandise inventory on account. This transaction will be recorded in the ________.
A.
cash payments journal
B.
cash receipts journal
C.
sales journal
D.
purchases journal

If there is cash involved in a business transaction, the transaction should be recorded in either the ________.
A.
cash payments journal or cash receipts journal
B.
sales journal or purchases journal
C.
cash payments journal or general journal
D.
cash payments journal or cash receipts journal and in general journal

Which of the following will be recorded in the general journal when using a manual accounting information​ system?
A.
adjusting and closing entries
B.
payment of accounts payable
C.
purchase of merchandise inventory on account
D.
sale of merchandise inventory on account

On May​ 31, a retail firm pays rent of
$ 3 comma 500$3,500
for the month of May. When this transaction is recorded in the cash payments​ journal, ________.
A.
assets and equity will decrease by $ 3 comma 500$3,500
B.
assets and liabilities will decrease by $ 3 comma 500$3,500
C.
liabilities and equity will increase by $ 3 comma 500$3,500
D.
assets and equity will increase by $ 3 comma 500$3,500

In a perpetual inventory​ system, the credit columns of a typical cash payments journal are​ ________.
A.
Merchandise Inventory column and Accounts Payable column
B.
Other Accounts column and Cash column
C.
Other Accounts column and Accounts Payable column
D.
Merchandise Inventory column and Cash column

A cash payments journal is a special journal that​ ________.
A.
differs from the cash disbursements journal
B.
is used to record the net of cash payments and cash receipts by check and currency
C.
eliminates the need to perform a bank reconciliation
D.
is used to record cash payments by check and currency


On July​ 10, a hardware retailer purchased merchandise inventory on account for
$ 2 comma 100$2,100.
The company plans to pay
$ 700$700
the following week and the remaining amount the week after. Which of the following is the correct entry to record the July 10 transaction in a purchases​ journal? Assume a perpetual inventory system is used.
A.
$ 2 comma 800$2,800
will be recorded in the Accounts Payable DR and Merchandise Inventory DR columns.
B.
$ 2 comma 100$2,100
will be recorded in the Accounts Payable CR and Merchandise Inventory DR columns.
C.
$ 700$700
will be recorded in the Accounts Payable CR and Merchandise Inventory CR columns.
D.
$ 2 comma 100$2,100
will be recorded in the Merchandise Inventory CR and Accounts Payable DR columns.

Which of the following is true of a purchases​ journal?
A.
For a perpetual inventory​ system, a column titled Purchases DR is needed.
B.
The Other Accounts DR column is used for purchases on account of items other than merchandise inventory and office supplies.
C.
For a periodic inventory​ system, the Merchandise Inventory DR column is replaced with a column titled Cost of Goods Sold DR.
D.
Cash purchases are recorded in the purchases journal.

The purchases journal is a special journal that​ ________.
A.
has special columns for credits to merchandise inventory
B.
has a special column for debits to accounts payable
C.
is used to record all purchases of merchandise inventory
D.
is used to record merchandise​ inventory, office​ supplies, and other assets purchased on account

Cash purchases are recorded in the purchases journal.
True
False

The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.
True
False

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.
True
False

Credit sales of assets other than merchandise inventory occur infrequently and are recorded in the​ ________.
A.
general journal
B.
accounts receivable journal
C.
sales journal
D.
cash receipts journal

Which of the following serves as the​ "journal of last​ resort?"
A.
sales journal
B.
cash payments journal
C.
purchases journal
D.
general journal

The accounting is the same regardless of whether a business uses a manual or a computerized accounting information system.
True
False

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