Final Exam Study Guide
Accounting 211
Study Guide for Final Exam
Chapters 7 – 12
Chapter 7:
1. Terminology Accounting information system People, records, and methods that collect and process data from transactions and events, organize them in useful forms, and communicate results to decision makers Accounts payable ledger Subsidiary ledger listing individual creditor (supplier) accounts
Accounts receivable ledger Subsidiary ledger listing individual customer accounts.
Batch processing Accumulating source documents for a period of time and then processing them all at once such as once a day, week, or month.
Cash disbursements journal Special journal normally used to record all payments of cash; also called cash payments journal
Cash receipts journal Special journal normally used to record all receipts of cash.
Check register Another name for a cash disbursements journal when the journal has a column for check numbers. Columnar journal Journal with more than one column
Compatibility principle Information system principle that prescribes an accounting system to conform with a company’s activities, personnel, and structure.
Components of accounting systems Five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.
Computer network Linkage giving different users and different computers access to common databases and programs
Control principle Information system principle that prescribes an accounting system to aid managers in controlling and monitoring business activities
Controlling account General ledger account, the balance of which (after posting) equals the sum of the balances in its related subsidiary ledger.
Cost-benefit principle Information system principle that prescribes the benefits from an activity in an accounting system to outweigh the costs of that activity
Enterprise resource planning (ERP) software Programs
Study Guide for Final Exam
Chapters 7 – 12
Chapter 7:
1. Terminology Accounting information system People, records, and methods that collect and process data from transactions and events, organize them in useful forms, and communicate results to decision makers Accounts payable ledger Subsidiary ledger listing individual creditor (supplier) accounts
Accounts receivable ledger Subsidiary ledger listing individual customer accounts.
Batch processing Accumulating source documents for a period of time and then processing them all at once such as once a day, week, or month.
Cash disbursements journal Special journal normally used to record all payments of cash; also called cash payments journal
Cash receipts journal Special journal normally used to record all receipts of cash.
Check register Another name for a cash disbursements journal when the journal has a column for check numbers. Columnar journal Journal with more than one column
Compatibility principle Information system principle that prescribes an accounting system to conform with a company’s activities, personnel, and structure.
Components of accounting systems Five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.
Computer network Linkage giving different users and different computers access to common databases and programs
Control principle Information system principle that prescribes an accounting system to aid managers in controlling and monitoring business activities
Controlling account General ledger account, the balance of which (after posting) equals the sum of the balances in its related subsidiary ledger.
Cost-benefit principle Information system principle that prescribes the benefits from an activity in an accounting system to outweigh the costs of that activity
Enterprise resource planning (ERP) software Programs