TRUE-FALSE STATEMENTS
1.An accounting information system should be cost effective; that is, the benefits of the information must outweigh the cost of providing it.
2.An accounting system has flexibility if it is able to be used by many different companies at the same time.
3.General ledger accounting systems are software programs that integrate the various accounting functions related to sales, purchases, cash receipts and disbursements, and payroll.
4.Enterprise resource planning systems integrate all aspects of the organization, including accounting, sales, human resource management, and manufacturing.
5.A subsidiary ledger is a group of control accounts which provides information to the managers for controlling the operation of the company.
6.An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.
7.The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors.
8.The total of the individual account balances in the accounts receivable subsidiary ledger should agree with the total of the individual account balances in the accounts payable subsidiary ledger.
9.Control accounts are always located in the general ledger.
10.A control account and subsidiary ledger can be established for inventory.
