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Ch07 - ACCOUNTING INFORMATION SYSTEMS
Ch07 - ACCOUNTING INFORMATION SYSTEMS
7-1
CHAPTER 7
ACCOUNTING
INFORMATION
SYSTEMS
Accounting Principles, Eighth Edition
Chapter
7-2
Study
Study Objectives
Objectives
Chapter
7-3
Accounting
Accounting Information
Information Systems
Systems
Basic
Basic Concepts
Concepts
of Accounting Subsidiary Special
Special
Information Ledgers Journals
Systems
Chapter
7-5 LO 1 Identify the basic concepts of an accounting information system.
Basic
Basic Concepts
Concepts of
of AIS
AIS
Cost Effectiveness - Benefits
must outweigh the costs.
Illustration 7-1
Principles of an Useful
efficient and Output
effective AIS.
Chapter
7-7 LO 1 Identify the basic concepts of an accounting information system.
Basic
Basic Concepts
Concepts of
of AIS
AIS
Computerized Accounting Systems
Choosing a software package
Entry-Level Software
Common features and benefits:
Easy data access and report preparation
Audit trail
Chapter
7-8 LO 1 Identify the basic concepts of an accounting information system.
Basic
Basic Concepts
Concepts of
of AIS
AIS
Manual Accounting Systems
Chapter
7-9 LO 1 Identify the basic concepts of an accounting information system.
Subsidiary
Subsidiary Ledgers
Ledgers
Chapter
7-10 LO 2 Describe the nature and purpose of a subsidiary ledger.
Subsidiary
Subsidiary Ledgers
Ledgers
Relationship of general ledger and subsidiary ledgers
Illustration 7-3
Chapter
7-11 LO 2 Describe the nature and purpose of a subsidiary ledger.
Subsidiary
Subsidiary Ledgers
Ledgers
Chapter
7-12 LO 2 Describe the nature and purpose of a subsidiary ledger.
Special
Special Journals
Journals
Chapter
7-13 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals
Review Question
Each of the following is a subsidiary ledger
except the:
a. accounts receivable ledger.
b. accounts payable ledger.
c. customer’s ledger.
d. general ledger.
Chapter
7-14 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals
Sales Journal Illustration 7-6
Chapter
7-17 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals
Chapter
7-18 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals
Cash Receipts Journal Illustration 7-9
Chapter
7-19 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals
$3,200
Chapter
7-20 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals
June 1 J. Darby
Lenninger
Farley
Grinnell Bros.
Chapter
7-21 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals
Review Question
Cash sales of merchandise are recorded in the:
a. cash payments journal.
b. cash receipts journal.
c. general journal.
d. sales journal.
Chapter
7-22 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals
Review Question
Which of the following is not one of the credit
columns in the cash receipts journal:
a. Other accounts.
b. Accounts payable.
c. Accounts receivable.
d. Sales.
Chapter
7-23 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals Illustration 7-13
Purchases Journal
Chapter
7-24 LO 4 Indicate how companies post a multi-column journal.
Special
Special Journals
Journals Illustration 7-13
Purchases Journal
Chapter
7-25 LO 4 Indicate how companies post a multi-column journal.
Special
Special Journals
Journals
Review Question
All of the following are advantages of using
subsidiary ledgers except they:
a. show transactions affecting one customer or
one creditor in a single account.
b. free the general ledger of excessive details.
c. eliminate errors in individual accounts.
d. make possible a division of labor.
Chapter
7-26 LO 3 Explain how companies use special journals in journalizing.
Special
Special Journals
Journals
Cash Payments Journal Illustration 7-16
Chapter
7-28 LO 4 Indicate how companies post a multi-column journal.
Special
Special Journals
Journals
Review Question
Cash payments of merchandise are recorded in
the:
a. cash payments journal.
b. cash receipts journal.
c. general journal.
d. purchases journal.
Chapter
7-29 LO 4 Indicate how companies post a multi-column journal.
Special
Special Journals
Journals
Chapter
7-31