Question :
51. To check for accuracy after posting: first a trial balance : 1256311
51. To check for accuracy after posting: first a trial balance is completed, then the subsidiary ledgers are tested by preparing a schedule of the controlling account.
52. A company using the periodic inventory system does not record the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.
53. The purchases journal is identical under both the periodic and the perpetual inventory systems.
54. The difference in the sales journal between the perpetual and periodic inventory systems is that a column is used to record cost of goods sold and inventory amounts for each sale under the perpetual system but not the periodic system.
Multiple Choice Questions
55. Effective accounting information systems will do all of the following except: A. Collect data from transactions and events.B. Organize data in useful forms.C. Communicate information to business decision makers.D. Process data from transactions and events.E. Eliminate all errors.
56. Internal control procedures do not include: A. Procedures to ensure reliable financial reports.B. Safeguards to protect company assets.C. Methods to achieve compliance with laws and regulation.D. Procedures to guarantee against fraud.
E. Policies to direct operations toward common goals.
57. 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.
58. 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.
59. 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 principleB. Compatibility principleC. Relevance principleD. Flexibility principleE. Cost-benefit principle
60. 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.
