Solution for QID #21291: Activity 1: True or False - Write TRUE when the statement is | StudyHelpMe

Activity 1: True or False - Write TRUE when the statement is correct and FALSE if it is incorrect. __________________1.  AIS can only be made with a mechanical process. __________________2.  AIS are designed to transfer economic information into meaningful financial reports. __________________3.  Poor AIS poses greater risk to business. __________________4.  The basic accounting terminology is not included as part of AIS. __________________5.  AIS must have an adequate audit trail. __________________6.  The purpose or function of AIS is closely related to accounting. __________________7.  All accounting information system are computerized or done through EDP. __________________8.  The computerized accounting information system is intended only to serve external users. __________________9.  Manual accounting system is better for paper audit trail. __________________10.               In computerized accounting systems, the financial reports are commonly prepared at periodic intervals. __________________11.               A computerized accounting system is faster and more accurate than manual accounting system. __________________12.               Ledger-less bookkeeping eliminates all errors in recording. __________________13.               Only computerized accounting systems can use accounting devices and forms to transform and maintain business data into financial information. __________________14.               Recording of data in the accounting books must be evidenced by supporting documents with approval for recording from an authorized officer. __________________15.               An official receipt is a commercial invoice. __________________16.               A check voucher is used to record payments with minimal amount. __________________17.               A debit memo issued by a trading enterprise would increase its collectible to clients. __________________18.               The double-entry system is more useful in checking recording errors committed by accountants. __________________19.               Whether using the double-entry or single-entry system, debit and credit entries are used in recording business transaction. __________________20.               An account is an accounting form used to record and classify business transactions. __________________21.               Transactions are recorded first in the ledger and then transferred to the general ledger. __________________22.               A chart of accounts is a listing of all the account names or titles use to record the economic activity of the business. __________________23.               Accountants are not supposed to record in the books of accounts an arm's length transaction without source document. __________________24.               The recording process of accounting includes the chronological recording of transactions and verification of their existence through source documents. __________________25.               The process of transferring the debit and credit values in the journal to their respective account in the ledger is called journalizing. __________________26.               The double-entry system is the most acceptable accounting system because it provides financial reports that are free from error. __________________27.               Only a memorandum entry is recorded in the single-entry accounting system. __________________28.               A liability can be used to change or pay another form of liability. __________________29.               An account number is used to facilitate recording and cross-referencing. __________________30.               Once the debits and credits are equal, the trial balance contains accurate financial statements. __________________31.               A single-entry has only one debit account and one credit account. __________________32.               Only those economic activities that will increase or decrease any of the accounting elements are recorded in the books of accounts. __________________33.               To credit an account is to record the value received in a business transaction. __________________34.               The posting on the post-reference column of the general journal will indicate that the peso value of an account was already posted to its respective account in the general ledger. __________________35.               The general ledger is the source of the account balances listed in the trial balance. __________________36.               The classifying function of accounting is done in the book of final entry called the ledger. __________________37.               The journalizing and the posting of transactions are done in just one recording under the computerized accounting system. __________________38.               AIS should also observe cost-benefit measures. __________________39.               The general ledger is the book of original entry. __________________40.               The source documents are first recorded in the general ledger. __________________41.               The entries in the general journal are arranged chronologically. __________________42.               An account with equal debit and credit amounts shall be transferred to the trial balance. __________________43.               Footing helps check the correctness of the totals of debit and credit balances of reportable accounts. __________________44.               A working paper facilitates the adjustments of accounts. __________________45.               The adjusted trial balance is a required column the accounting worksheet. __________________46.               A worksheet is part of the formal accounting records. __________________47.               The general ledger is a modified T-accounts. __________________48.               The payroll sheet includes withholding tax on wages. __________________49.               Loss due to theft is recordable business transaction. __________________50.               Electronic accounting software expedites the accounting work.