Question :
51. To check for accuracy after posting: first a trial balance : 1225906
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. All of the following statements regarding accounting information systems are true except:
A. Accounting information systems collect and process data from transactions and events.
B. Accounting information systems organize data in useful forms.
C. Accounting information systems do not establish internal control procedures.
D. Accounting information systems are crucial to effective decision making.
E. Accounting information systems communicate information to business decision makers.
56. All of the following statements regarding internal control procedures are true except:
A. Internal control procedures are designed to ensure reliable financial reports.
B. Internal control procedures are designed to safeguards company assets.
C. Internal control procedures direct operations toward common goals.
D. Internal control procedures include methods to achieve compliance with laws and regulation.
E. Internal control procedures are bit affected by the cost-benefit principle.
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 must have internal controls.
D. System adapts to changes in the company, business environment, and needs of decision makers.
E. System conforms to a company’s activities, personnel, and structure.
58. The flexibility principle of accounting information systems prescribes 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 be able to adapt to changes in the company, business environment, and needs of decision makers.
E. System conforms to a company’s activities, personnel, and structure.
59. The accounting principle that prescribes an accounting information system to report useful, understandable, timely, and pertinent information for effective decision-making is the:
A. Control principle.
B. Compatibility principle.
C. Relevance principle.
D. Flexibility principle.
E. Cost-Benefit principle.
60. The five fundamental principles of accounting information systems are:
A. Control, accountability, relevance, compatibility, and flexibility.
B. Historical cost, relevance, compatibility, flexibility, and cost-benefit.
C. Control, relevance, compatibility, flexibility, and safety.
D. Control, relevance, compatibility, timeliness, and cost-benefit.
E. Control, relevance, compatibility, flexibility, and cost-benefit.
