Question 1

The methods and procedures for collecting, classifying, summarizing, and reporting financial information make up

Accepted Answer

an accounting system

Question 2

An accounting system must be able to

Accepted Answer

a. report information. b. All of these choices are correct. c. summarize information. d. collect and classify information.  Correct answer: B

Question 3

The process in the evolution of an accounting system that determines how the system should provide information and meet the users\' needs is the ______________ stage.

Accepted Answer

Design

Question 4

The subsidiary ledger that tracks customers is the

Accepted Answer

accounts receivable ledger

Question 5

A special journal is used for

Accepted Answer

recording a single kind of transaction that occurs frequently

Question 6

Which of the following is a common special journal to record cash sales?

Accepted Answer

Cash receipts journal

Question 7

Large companies have their accounting systems integrated within the automated business systems of the firm. Such integrated software is known as

Accepted Answer

enterprise resource planning

Question 8

An advantage of using a computer system is

Accepted Answer

the simultaneously updating of customer or vendor subsidiary ledgers

Question 9

A computerized accounting system

Accepted Answer

allows the generation of several types of reports to meet the needs of stakeholders

Question 10

E-commerce refers to using

Accepted Answer

the Internet to perform business transactions

Question 11

Internet applications to plan and coordinate marketing and sales efforts are known as

Accepted Answer

customer relationship management

Question 12

The Internet is being used by businesses for supply chain management (SCM), which can be defined as

Accepted Answer

internet applications to plan supply needs and coordinate suppliers

Question 13

When reporting segment revenue, businesses can be segmented by

Accepted Answer

a. product or service. b. All of these choices are correct. c. type of customer. d. region.  Correct answer: B

Question 14

Segment analysis helps to

Accepted Answer

a. determine the amount of revenue earned by each segment. b. All of these choices are correct. c. determine the increases and/or decreases over a time period of each segment. d. analyze the contributions of various segments to the total operating performance of a company.  Correct answer: B

Question 15

Leggett Company does business in two regional segments: Mountains and Plains. The following annual revenue information was determined:  Segment 2014 2013 Mountains $45,000 $40,000  Plains 50,000 60,000   Total revenues $95,000 $100,000   Using horizontal analysis, what is the percentage change of the Mountains region?

Accepted Answer

12.5% increase

Question 16

Segment revenues are determined by

Accepted Answer

invoice data that are entered into the accounting system

Question 17

3 step process

Accepted Answer

1. Analyze user information needs  2. Design the system to meet user needs  3. Implement the system

Question 18

Internal controls

Accepted Answer

The policies and procedures that protect assets from misuse to ensure that business information is accurate, and ensure that laws and regulations are being followed.

Question 19

Processing methods

Accepted Answer

Are the means by which the accounting system collects, summarizes, and reports accounting information. Include manual or computerized.

Question 20

Subsidiary Ledger

Accepted Answer

A large number of individual accounts with a common characteristic can be grouped together in a separate ledger

Question 21

General Ledger

Accepted Answer

Primary ledger, which contains all of the balance sheet and income statement accounts

Question 22

Controlling Account

Accepted Answer

Each subsidiary ledger is represented in the general ledger by a summarizing account and is called this

Question 23

Accounts receivable sub leger

Accepted Answer

(Customers ledger) and lists the individual customer accounts.

Question 24

Accounts payable sub ledger

Accepted Answer

(Creditors ledger) that lists individual creditor accounts

Question 25

Special journals

Accepted Answer

Designed to record a single kind of transaction that occurs frequently

Question 26

Providing services on account are recorded in the

Accepted Answer

Revenue Journal

Question 27

Receipt of cash from any sources are recored in the

Accepted Answer

Cash receipts journal

Question 28

Purchase of items on account are recorded in the

Accepted Answer

Purchases Journal

Question 29

Payment of cash for any purpose are recorded in the

Accepted Answer

Cash payments journal

Question 30

Supply Chain Management (SCM)

Accepted Answer

Internet Applications to plan supply needs and coordinate them with suppliers

Question 31

Customer relationship management (CRM)

Accepted Answer

Internet applications to plan and coordinate marketing a sales effort

Question 32

Product life-cycle management (PLM)

Accepted Answer

Internet applications to plan and coordinate the product development and design process

Question 33

Sales on account should be recorded in the ________ journal and _________ subsidiary ledger.

Accepted Answer

Revenue journal; accounts receivable

Question 34

______________ should be recorded in the cash receipts journal and _________ subsidiary journal.

Accepted Answer

Cash receipts; accounts receivable

Question 35

Purchases made on account should be recorded in the _________ journal and ___________ subsidiary ledger.

Accepted Answer

Purchases; accounts payable

Question 36

__________ should be recorded in the cash payments journal and ___________ subsidiary ledger.

Accepted Answer

Cash payments; accounts payable

Question 37

Identify which of the following are steps in the three-step process of the accounting system. a. Implement the system. b. Obtain acceptance of the system from users. c. Analyze user information needs.

Accepted Answer

a. Yes b. No c. Yes

Question 38

Determine to which step in the accounting system each of the following descriptions relates. a. Decide which types of journals and ledgers to use. b. Identify users and their intended uses of the financial information. c. Prepare the necessary financial statements.

Accepted Answer

a. Design the system to meet the user needs. b. Analyze user information needs. c. Implement the system.

Question 39

Which steps relate to each of the following descriptions given? a. Creating a system of internal controls and information processing methods b. Using information from users to improve the system and ensure efficiency c. Determining the information that the users will require

Accepted Answer

a. Design the system to meet the user needs. b. Implement the system. c. Analyze user information needs.

Question 40

Put the following steps in the correct order of use when using a computerized accounting system. a. Preparing a report to list the revenue by customer for the month b. Recording revenue by completing an electronic invoice form c. Recording the collection of cash from customers

Accepted Answer

1st: Recording revenue by completing an electronic invoice form 2nd: Recording the collection of cash from customers 3rd: Preparing a report to list the revenue by customer for the month

Question 41

Which of the following is not a step when using a computerized accounting system? a. Creating a manager\'s report from software b. Entering transactions by using electronic forms c. Researching inventories using catalogs from distributers

Accepted Answer

a. Yes b. Yes c. No

Question 42

Determine the correct order of the following steps when using a computerized accounting system. a. Entering the collection of cash from customers into the system b. Recording the rental revenue using the electronic invoices c. Creating a cash receipt report to inspect any overdue amounts

Accepted Answer

Determine the correct order of the following steps when using a computerized accounting system. 1st: Recording the rental revenue using the electronic invoices 2nd: Entering the collection of cash from customers into the system 3rd: Creating a cash receipt report to inspect any overdue amounts

Question 43

Determine whether each of the following businesses is using business-to-business e- commerce, business-to-consumer e-commerce, or neither. a. A retail store sells products online to find new customers worldwide. b. An oil company has an online system to sell to gas stations. c. A dentist uses an online ordering system for supplies to use on customers.

Accepted Answer

a. Business-to-consumer  b. Business-to-business  c. Business-to-business

Question 44

Determine whether each of the following transactions would be classified as business- to-business e-commerce, business-to-consumer e-commerce, or neither. a. A shopper researches new products online, which she buys in-store. b. A business uses an online banking system for payments on customer accounts from its large retailers. c. A customer purchases a book collection online from a large bookstore.

Accepted Answer

a. Neither b. Business-to-business  c. Business-to-consumer

Question 45

Determine whether each of the following transactions would be classified as business- to-business e-commerce, business-to-consumer e-commerce, or neither. a. A customer uses online banking to pay its utility bills. b. After seeing an item in store, a shopper buys the product from the manufacturer online at a lower price. c. A business identifies weaknesses in its product line using an electronic testing system.

Accepted Answer

a. Business-to-consumer b. Business-to-consumer c. Neither

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