Appendix E – Accounting with Special Journals
Appendix E
Accounting with Special Journals
True / False Questions
[QUESTION]
1. Accounting information systems collect and process data from transactions and events,
organize them in useful forms and communicate results to decision makers.
Answer: TRUE
Blooms Taxonomy: Remember
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 1 Easy
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
2. Accounting information systems are so accurate that decision makers in practice do not need a
basic knowledge of how the systems work.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
3. The five basic principles of accounting information systems are control, competency,
compatibility, flexibility, and cost-benefit.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
4. Internal controls include policies to direct operations toward common goals, procedures to
ensure reliable financial reports, safeguards to protect company assets, and methods to achieve
compliance with laws and regulations.
Answer: TRUE
E-1
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
,Appendix E – Accounting with Special Journals
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA BB: Legal
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Internal Controls
[QUESTION]
5. The flexibility principle requires that an accounting information system conform to a
company's activities, personnel, and structure and adapt to a company's unique characteristics.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Flexibility Principle
[QUESTION]
6. The compatibility principle requires that an accounting system report useful, understandable,
timely, and pertinent information for effective decision making.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Compatibility Principle
[QUESTION]
7. The cost-benefit principle affects all other accounting system principles.
Answer: TRUE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Cost-Benefit Principle
[QUESTION]
8. Accounting information systems are designed to capture information about a company's
transactions and events and to provide output including financial, managerial, and tax reports.
Answer: TRUE
E-2
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
,Appendix E – Accounting with Special Journals
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
9. Due to electronic files and web communication, source documents are no longer required.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Source Documents
[QUESTION]
10. Accurate source documents are crucial to accounting systems to limit the possibility of
entering faulty data into the system.
Answer: TRUE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Source Documents
[QUESTION]
11. With advanced technology there is no need to trace to its source information that has been
entered into an accounting information system.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Source Documents
[QUESTION]
12. With online systems, all information storage should be off-line to protect the data.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
E-3
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
, Appendix E – Accounting with Special Journals
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Information Storage
[QUESTION]
13. Accounting information processes are structured to eliminate the need for professional
judgment.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
14. Auditors rely on accounting system databases when they audit financial statements and a
company's controls.
Answer: TRUE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
15. Input devices are the means to make accounting information available to users.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Input Device
[QUESTION]
16. Input devices include journal entries, keyboards, scanners, and modems.
Answer: TRUE
Blooms Taxonomy: Apply
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
E-4
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Appendix E
Accounting with Special Journals
True / False Questions
[QUESTION]
1. Accounting information systems collect and process data from transactions and events,
organize them in useful forms and communicate results to decision makers.
Answer: TRUE
Blooms Taxonomy: Remember
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 1 Easy
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
2. Accounting information systems are so accurate that decision makers in practice do not need a
basic knowledge of how the systems work.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
3. The five basic principles of accounting information systems are control, competency,
compatibility, flexibility, and cost-benefit.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
4. Internal controls include policies to direct operations toward common goals, procedures to
ensure reliable financial reports, safeguards to protect company assets, and methods to achieve
compliance with laws and regulations.
Answer: TRUE
E-1
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
,Appendix E – Accounting with Special Journals
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA BB: Legal
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Internal Controls
[QUESTION]
5. The flexibility principle requires that an accounting information system conform to a
company's activities, personnel, and structure and adapt to a company's unique characteristics.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Flexibility Principle
[QUESTION]
6. The compatibility principle requires that an accounting system report useful, understandable,
timely, and pertinent information for effective decision making.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Compatibility Principle
[QUESTION]
7. The cost-benefit principle affects all other accounting system principles.
Answer: TRUE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Cost-Benefit Principle
[QUESTION]
8. Accounting information systems are designed to capture information about a company's
transactions and events and to provide output including financial, managerial, and tax reports.
Answer: TRUE
E-2
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
,Appendix E – Accounting with Special Journals
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
9. Due to electronic files and web communication, source documents are no longer required.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Source Documents
[QUESTION]
10. Accurate source documents are crucial to accounting systems to limit the possibility of
entering faulty data into the system.
Answer: TRUE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Source Documents
[QUESTION]
11. With advanced technology there is no need to trace to its source information that has been
entered into an accounting information system.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Source Documents
[QUESTION]
12. With online systems, all information storage should be off-line to protect the data.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
E-3
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
, Appendix E – Accounting with Special Journals
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Information Storage
[QUESTION]
13. Accounting information processes are structured to eliminate the need for professional
judgment.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
14. Auditors rely on accounting system databases when they audit financial statements and a
company's controls.
Answer: TRUE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Accounting Information Systems
[QUESTION]
15. Input devices are the means to make accounting information available to users.
Answer: FALSE
Blooms Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: E-C1
Topic: Input Device
[QUESTION]
16. Input devices include journal entries, keyboards, scanners, and modems.
Answer: TRUE
Blooms Taxonomy: Apply
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
E-4
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
