CHAPTER 10 ACCOUNTING INFORMATION SYSTEMS, SUBSIDIARY LEDGERS, AND SPECIAL JOURNALS TRUE FALSE STATEMENTS 1. An accounting information system should be cost effective that is the benefits of the information must outweigh the cost of providing it. 2. General ledger accounting systems are software programs that integrate the various accounting functions related to sales, purchases, cash receipts and disbursements, and payroll An accounting Information system involves data collection, data processing, and information dissemination. An accounts receivable subsidiary ledger has all the detailed information about cash sales to individual customers. 5. The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors. 6. The total of the individual account balances in the accounts receivable subsidiary ledger should agree with the total of the individual account balances in the accounts payable subsidiary ledger A control account and subsidiary ledger can be established for inventory. 7. 8. 9. A cash receipts journal can be used to record all transactions involving cash received by the business, regardless of the source. A cash payments journal should not be used to record transactions that require payment by check If a transaction cannot be recorded in a special journal, it indicates that the company should adopt an electronic accounting system. 10. 11. MULTIPLE CHOICE QUESTIONS The principle of an efficient accounting system that states that an accounting system should accommodate a variety of users is a. cost-effectiveness. b. flexibility c. usefulness. d. implementation