Multiple Choice Questions
1. The control principle for accounting information systems requires that the:
A) Benefits from an activity outweigh the costs of the activity.
B) System report useful, understandable, timely, and pertinent information for effective decision making.
C) System aid managers in controlling and monitoring business activities.
D) System adapt to changes in the company, business environment, and needs of decision makers.
E) System conform with a company's activities, personnel, and structure.
2. The flexibility principle of accounting information systems requires that the:
A) Benefits from an activity outweigh the costs of the activity.
B) System report useful, understandable, timely, and pertinent information for effective decision making.
C) System aid managers in controlling and monitoring business activities.
D) System adapt to changes in the company, business environment, and needs of decision makers.
E) System conform with a company's activities, personnel, and structure.
3. The accounting principle that requires an accounting information system to report useful, understandable, timely, and pertinent information for effective decision-making is the:
A) Control principle.
B) Compatibility principle.
C) Relevance principle.
D) Flexibility principle.
E) Cost-Benefit principle.
4. The five fundamental principles of accounting information systems are:
A) Control, accountability, relevance, compatibility, and flexibility.
B) Control, relevance, compatibility, flexibility, and cost-benefit.
C) Control, relevance, compatibility, flexibility, and safety.
D) Control, relevance, compatibility, timeliness, and cost-benefit.
E) Historical cost, relevance, compatibility, flexibility, and cost-benefit.
5. The special journals of many accounting systems include the:
A) Sales journal.
B) Purchases journal.
C) Cash receipts journal.
D) Cash disbursements journal.
E) All of the above.
6. The sales journal is used for recording:
A) Credit purchases.
B) Credit sales.
C) Cash sales.
D) Cash purchases.
E) Cash receipts.
7. The purchases journal is used for recording:
A) Credit purchases.
B) Credit sales.
C) Cash sales.
D) Cash purchases.
E) Cash disbursements.
8. A book of original entry that is used to record and post transactions of a similar type is a:
A) Schedule.
B) Columnar ledger.
C) Special journal.
D) General journal.
E) Subsidiary ledger.
9. The ledger that contains the financial statement accounts of a company is the:
A) General ledger.
B) General journal.
C) Special ledger.
D) Special journal.
E) Column balance ledger.
10. An internal control system consists of the policies and procedures managers use to
A) Protect assets.
B) Ensure reliable accounting.
C) Promote efficient operations.
D) Urge adherence to company policies.
E) All of the above.