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Exam 7: Accounting Information Systems

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Question 41

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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

A) 19.4%.
B) 22.4%.
C) 26.1%.
D) 10.7%.

E) All of the above
F) A) and D)

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Question 42

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Enterprise resource planning software packages include the programs that manage a company's vital operations.

A) True
B) False

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Question 43

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A company purchased $11,200 of merchandise on credit. Identify the journal the transaction would be recorded in.

__________________ processing accumulates source documents for a period of time and then processes them all at once such as daily, weekly, or monthly.

____________________ are the means to take information out of an accounting system and make it available to users.

Each transaction recorded in the sales journal yields a debit to Accounts Receivable and a credit to Sales.

Input devices are the means to make accounting information available to users.

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

After posting is completed, there may be an error if:

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.

Equipment, inventory, and investments are other accounts that can include detailed information in a subsidiary ledger.

Explain how the amounts in the subsidiary ledgers are tested for accuracy.

Due to electronic files and Web communications, source documents are no longer required.

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 use of an Accounts Payable controlling account:

The flexibility principle prescribes that an accounting information system conform with a company's activities, personnel, and structure and adapt to a company's unique characteristics.

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

_____________________ are systems that interpret, transform, and summarize information for use in analysis and reporting.

All of the following statements regarding accounting information systems are except:

The accounts payable ledger is used for storing transactions data regarding individual customers.