2) An effective accounting information system:

Question 2 options:

allows employees flexibility in setting the working hours.

guarantees a company will not go bankrupt.

includes control, compatibility, flexibility, and a favourable cost/benefit relationship.

promotes operational efficiency.

will prevent fraud in all cases.

3) Accounting information systems cope with heavy transaction loads by:

Question 3 options:

computerization and specialization.

segregation of duties between personnel.

hiring temporary personnel.

outsourcing the processing of data.

4)Keeping accurate records of accounts receivable is an example of which feature of a good accounting information system?

Question 4 options:

control

compatibility

favourable cost/benefit relationship

flexibility

5)A good cost/benefit relationship:

Question 5 options:

offers maximum benefits at a minimum cost.

is impossible to achieve.

exists in manual accounting systems only.

would be ignored in a large organization.

6) Which of the following istrueof internal control?

Question 6 options:

A company's outside auditor is responsible for the company's internal control system.

One of the major purposes of internal control is to ensure accurate, reliable accounting records.

Internal control procedures tend to diminish the importance of operational efficiency.

Internal controls are only necessary for large businesses.

7) Inputs would include:

Question 7 options:

sales receipts.

an income statement.

a balance sheet.

a statement of owner's equity.

8) Outputs would include:

Question 8 options:

fax orders.

sales receipts.

bank deposit slips.

an income statement.

9) Design of an accounting system begins with the:

Question 9 options:

previous year's financial statements.

use of a firewall.

chart of accounts.

opening trial balance.

11) Customers' individual accounts included in a subsidiary ledger are said to be controlled by the Accounts Receivable account in the:

Question 11 options:

accounts payable ledger.

accounts receivable ledger.

controlling ledger.

general ledger.

12)The general ledger accounts used when posting the sales journal are:

Question 12 options:

cash, sales revenue, accounts receivable, and inventory.

sales returns and allowances, sales revenue, accounts receivable, and cost of goods sold.

sales revenue, cost of goods sold, inventory, and accounts receivable.

sales discounts, sales returns and allowances, sales revenue, and accounts receivable.

16) The sales journal contains columns for:

Question 16 options:

accounts receivable/sales revenue and supplies/inventory.

accounts receivable/sales revenue and inventory/accounts payable.

accounts receivable/sales and cost of goods sold/inventory.

accounts receivable/inventory and cost of goods sold/accounts payable.

18) The purchase of equipment on account would be recorded in the:

Question 18 options:

cash payments journal.

general journal.

purchases journal.

sales journal.

22) A document issued by a seller to credit a customer's account for returned merchandise is referred to as a:

Question 22 options:

seller's memorandum.

debit memo.

credit memo.

accounts payable memo.

23) A document issued by a purchaser when returning merchandise is referred to as a(n):

Question 23 options:

seller's memorandum.

debit memo.

credit memo.

accounts payable memo.