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Question 1

What are the five system principles in an accounting information system?

Answer 1

1. Control
2. Relevance
3. Compatibility
4. Flexibility
5. Cost-Benefit Principle

Question 2

What is the purpose of accounting information systems?

Answer 2

They collect and process data from transactions and events, organize them into useful reports, and communicate the results to decision-makers.

Question 3

What are the components of an accounting system?

Answer 3

1. Source Document
2. Input Devices
3. Information Processor
4. Information Storage
5. Output Devices

Question 4

What are the 5 types of special journals in accounting and what are they used for?

Answer 4

1. Sales Journal – For recording credit sales
2. Cash Receipts Journal – For recording cash receipts
3. Purchases Journal – For recording credit purchases
4. Cash Disbursements Journal – For recording cash payments
5. General Journal – For transactions not in special journals

Question 5

What are the two types of subsidiary ledgers and their controlling accounts?

Answer 5

1. Accounts Receivable Ledger – Controlled by Accounts Receivable (amounts due from customers)
2. Accounts Payable Ledger – Controlled by Accounts Payable (amounts owed to creditors)