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Exam 7: Accounting Information Systems

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Question 81

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The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

A) True
B) False

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Question 82

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

A) True
B) False

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Question 83

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Information processors are systems that:

Barrier Scuba Equipment purchased supplies costing $3,000 on credit. Identify the journal the transaction would be recorded in:

The following information is available for Soda Station, Inc. (all amounts are in millions): $\begin{array} { | l | r | r | r | } \hline & \text { U.S. } & \text { Canada } & \text { Mexico } \\\hline \text { Segment sales } & \$ 6,300 & \$ 5,200 & \$ 3,800 \\\hline \text { Segment operating income } & 2,120 & 2,240 & 1,200 \\\hline \text { Segment average assets } & 3 , 8 0 0& 4,200 & 2,800 \\\hline\end{array}$ a. Determine the segment return on assets for each geographic segment. b. What measures could be taken to improve segment return?

What is the segment return on assets ratio? What is it used for?

Alani's Hawaiian segment had revenues of $2,075 million, operating income of $1,500 million, and average assets of $1,450 million. The Hawaiian segment return on assets is:

Segment return on assets is calculated by dividing segment average assets by segment operating income.

The ________ principle requires that the benefits from an activity in an accounting information system outweigh the costs of that activity.

If the total balance of the accounts payable ledger equals the total of the controlling Accounts Payable account, then the accounts are presumed to be correct.

Assume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:

Match the following items with their related accounting system components

What are controlling accounts and subsidiary ledgers? What is the relationship between them?

A schedule of accounts receivable is a listing of all customer accounts and account balances.

Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $9,300. Three days later, the company returned $1,100 of the merchandise. When recording the return transaction, the company would record:

Match the following definitions with the appropriate term

Match the following terms with the appropriate definitions. a. Sales journal b. Controlling account c. Accounts receivable ledger d. Cash disbursements journal e. Cash receipts journal f. Schedule of accounts payable g. Segment return on assets h. Columnar journal i. Special journal j. Purchases journal _____ 1. The special journal used to record all receipts of cash. _____ 2. A journal with more than one column for recording data. _____ 3. A record of the separate accounts of each credit customer that is controlled by a general ledger account. _____ 4. A journal used to record all purchases on credit. _____ 5. A journal used to record sales of merchandise on credit. 6. A measure of the profitability of a segment, calculated as segment operating income divided by segment average assets. 7. A special journal used to record all payments of cash. _____ 8. Any journal used for recording and posting transactions of a similar type. _____ 9. A general ledger account, the balance of which, after posting, equals the sum of the balances of the accounts in its related subsidiary ledger. _____ 10. A list of each customer from the accounts payable ledger with their balances and the total.

When posting the sales journal's activity at the end of the month, its totals are:

The ________ principle requires that an accounting information system conforms with a company's activities, personnel, and structure, and must adapt to a company's unique characteristics.

List the five basic principles of accounting information systems.