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Quiz about Accounting Information Systems

Accounting Information Systems Quiz

An accounting information system is the combination of people, procedures and business records that a company maintains to manage financial data. Note: This quiz pertains to businesses in North America.

A multiple-choice quiz by Trevor1968. Estimated time: 5 mins.

Author
Trevor1968

Time
5 mins

Type
Multiple Choice

Quiz #
266,967

Updated
Dec 03 21

# Qns
10

Difficulty
Tough

Avg Score
6 / 10

Plays
2261

One at a Time - Single Page - Timed Game

Question 1 of 10

1. What is the activity sequence of the basic information processing model? Hint

organize data, process data, and collect data

organize data, collect data, and communicate information

process data, organize data, and collect data

collect data, organize and process data, and communicate information

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Question 2 of 10

2. What are internal controls designed to do? Hint

only safeguard assets

only ensue accurate accounting records

only achieve maximum revenue

safeguard assets and optimize the use of resources

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Question 3 of 10

3. Who writes instructions that directs a computer's action? Hint

programmer

systems analyst

writer

operator

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Question 4 of 10

4. Who designs a computer system? Hint

manager

operator

programmer

systems analyst

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Question 5 of 10

5. What is a firm's payment to a supplier for merchandise inventory recorded in? Hint

sales journal

cash receipts journal

purchases journal

cash disbursements journal

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Question 6 of 10

6. Where are amounts owed by customers for credit purchases found? Hint

accounts receivable journal

general ledger

sales journal

accounts receivable subsidiary ledger

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Question 7 of 10

7. Which of the following transactions is not recorded in the cash receipts journal? Hint

expensing prepaid rent

receipt of customer payments

borrowing money from a bank

sale of equipment for cash

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Question 8 of 10

8. Where would a debit posted to accounts payable in the general ledger come from? Hint

sales journal

cash disbursements journal

purchases journal

cash receipts journal

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Question 9 of 10

9. Total sales for August, including 7% sales tax, was $21,400. What was the Actual Sales Revenue? Hint

$21,400

$20,000

$22,898

$1,400

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Question 10 of 10

10. Which of the following is a control account? Hint

Accounts Receivable

Salary Payable

Prepaid Rent

Capital

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Quiz Answer Key and Fun Facts

1. What is the activity sequence of the basic information processing model?

Answer: collect data, organize and process data, and communicate information

Information processing is collecting data such as invoice or a canceled check; organizing and processing the data through transaction analysis, journalizing, posting and preparing the worksheet; and communicating the information to users through the financial statements.

2. What are internal controls designed to do?

Answer: safeguard assets and optimize the use of resources

Internal controls are the methods and procedures used by management to safeguard assets, prevent and detect fraud and error, optimize the use of resources and maintain reliable control systems.

3. Who writes instructions that directs a computer's action?

Answer: programmer

The systems analyst designs the computer system, the programmer writes the programs that directs the computer's actions, and the computer operator runs the computer.

4. Who designs a computer system?

Answer: systems analyst

Systems analysts are the personnel who designs the computer systems.

5. What is a firm's payment to a supplier for merchandise inventory recorded in?

Answer: cash disbursements journal

All cash payments are recorded in the cash disbursements journal. This journal is often referred to as the cheque register. All entries in this journal must have a credit to cash.

6. Where are amounts owed by customers for credit purchases found?

Answer: accounts receivable subsidiary ledger

Amounts owed to the business by its customers for merchandise purchased on account are accounts receivables of the business. Details of customers' accounts receivables are maintained in the accounts receivable subsidiary ledger.

7. Which of the following transactions is not recorded in the cash receipts journal?

Answer: expensing prepaid rent

The cash receipts journal is used to record all cash received by the business. Of the items listed, only "expensing of prepaid rent" does not involve the receipt of cash.

8. Where would a debit posted to accounts payable in the general ledger come from?

Answer: cash disbursements journal

The normal posting sources for accounts payable in the general ledger are the cash disbursements journal for cash payments that reduce the Accounts Payable balance and the purchases journal for inventory purchases which increase the accounts payable balance.

The entry from the cash disbursements journal would be a debit to Accounts Payable. (Note: a debit or credit memo entry from the general journal might also be posted to accounts payable. )

9. Total sales for August, including 7% sales tax, was $21,400. What was the Actual Sales Revenue?

Answer: $20,000

Sales plus the 7% sales tax equals total sales. Let "S" stand for sales, then:
S + .07S = $21,400
1.07S = $21,400
S = $21,400 / 1.07
S = $20,000

10. Which of the following is a control account?

Answer: Accounts Receivable

A control account is a general ledger account with a balance equal to the sum of the balances of a group of related accounts in a subsidiary ledger. Of the accounts listed, only accounts receivable has a related subsidiary ledger.

Source: Author Trevor1968

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