CheckPoint: Accounting Information Systems and Special Journals

QS 7-1 and 7-3 and Exercises 7-1, 7-4, 7-7, and 7-10

QS 7-1
Place the letter of each system principle in the blank next to its best description.
A. Control principle D. Flexibility principle
B. Relevance principle E. Cost-benefit principle
C. Compatibility principle

1. The principle prescribes the accounting information system to change in response to technological advances and competitive pressures. D. Flexibility principle
2. The principle prescribes the accounting information system to help monitor activities. A. Control principle
3. The principle prescribes the accounting information system to provide timely information for effective decision making. B. Relevance principle
4. The principle prescribes the accounting information system to adapt to the unique characteristics of the company. C. Compatibility principle
5. The principle that affects all other accounting information system principles. E. Cost-benefit principle
QS 7-3
Identify the most likely role in an accounting system played by each of the numbered items 1 through 12 by assigning a letter from the list A through E on the left:
A. Source documents B. Input devices C. Information processors D. Information storage
E. Output devices

1. Bar code reader –B. Input devices
2. Filing cabinet –D. Information storage
3. Bank statement –A. Source documents
4. Computer scanner –B. Input devices
5. Computer keyboard –B. Input devices
6. Zip drive –D. Information storage
7. Computer monitor –E. Output devices
8. Invoice from a supplier –A. Source documents
9. Computer software –C. Information processors
10. Computer printer –E. Output devices
11. Digital camera –B. Input devices
12. MP3 player –E. Output devices
Exercise 7-1
Hutton Company uses a sales journal, a purchases journal, a cash receipts