Palaña, Princess Zyra R.

BSA-2B
ACCOUNTING INFORMATION SYSTEM
Student Exercises

CHAPTER 1
I. Matching Type
Direction: For each of the definitions, write the letter of the appropriate term in the space
provided.

a. help system i. toolbar

b. option buttons j tab sequence
c. check boxes k. text boxes
d. command buttons l. insertion point
e. window m. clipboard
f. drop-down menu n. focus
g. list box o. tool tips
h. menu bar p. grid cells

1. J. The legal sequence in which the computer is expecting each grid cell,
textbox, option button, and/ or command to be accessed.
2. H. A bar displayed continuously on the top line of the screen, showing the menus
available.
3. F. A list of items appearing immediately below the selected menus.
4. K. Fields in a window that are used to enter, change or delete text.
5. E. A rectangular area of the screen in which the software is communicating with the
user.
 6. G. A list of options associated with the text box from which the user may choose.
7. B. Buttons representing options, where the selected option contains a filled circle icon
and only one option may be selected.
8. D. A button that initiates an immediate action.
9. C. A box located to the left of each of several choices that is either blank or contains a
checkmark and permits the user to select or deselect the choices.
10. I. A bar displayed on the top of the application window that contains icons
representing common processing tasks a user is likely to perform.
11. P. An arrangement of rows and columns that is used to enter, edit, or delete data and
text.
12. N. The location within a window in which the computer will receive the next piece of
input as identified by a highlight bar, insertion point, or dotted box.
13. L. A character that appears when the mouse pointer is position over a text box to mark
the current position where data will be entered or edited.
14. A. A provision within the software that offers a quick way to find information about
key terms, what to enter into text boxes, the effect of option button setting, the steps
required to perform a particular procedure, and shortcut keys the user may use to
accomplish various tasks.
15. O. A brief informational message that automatically appears when pointer is positioned
on a toolbar button.
16. M. A temporary storage area where data may be copied and then pasted elsewhere.

II. Questions
1. What is the definition of Accounting?
Accounting is generally referred to as the “language of business”. It is a tool
employed to express knowledge about a corporate system. In essence, accounting is a
systematic process of identifying, classifying, summarizing, recording, and
communicating information that is financial in nature to users that would help them in
making economic decisions.
2. What is the name of the occupation of a person who summarizes detailed accounting
information and then analyses and interprets the information to assist owners and
managers in making financial decisions?
Accountants
3. What is a business?
The term "business" refers to an organization or entrepreneurial entity that
engages in commercial, industrial, or professional activity. A business's objective is to
 organize economic production of commodities or services. Businesses can be for-profit or
non-profit enterprises that serve a charity purpose or promote a social cause.

4. What is a management information system (MIS)?

Management Information System (MIS) is the use of information technology,
people, and business processes to record, store and process data to produce information
that decision makers can use to make day to day decisions. The purpose of MIS is to
extract data from varied sources and derive insights that drive business growth.
5. State the accounting equation?
The accounting equation is ASSETS= LIABILITIES + EQUITY
6. What is an account classification?
Account classification pertains to the categorization of all the accounts and
transactions involved in business operations. Such accounts can be categorized as asset,
liability, expense, and revenue.
7. What is the double-entry accounting system?
Double-entry accounting system is a method of accounting that records financial
transactions in two accounts. This system recognizes the accounting equation in which
every financial transaction has equal and opposite effect in at least two different accounts
(Asset= Liabilities + Equity).
8. What is the purpose of the Explore Accounting System?
The Explore Accounting System is used to access data stored by the software to
perform audit checks, check account activity, isolate errors, and other tasks helpful to
managing account information.
9. What is the purpose of the web Browser?
The main purpose of the web browser is to locate, retrieve, and display information
from the World Wide Web, including web pages, images, videos, and documents.
10. What is the purpose of the Internet FTP feature of the software?
The Internet FTP feature allows users to transfer files over the internet. It is
notably useful for swiftly uploading and downloading files to and from a website. FTP
clients allow connections from both anonymous and registered users.
11. Identify the five planning tools provided in Integrated Accounting?
The five planning tools provided in Integrated Accounting are college, savings, loan,
retirement, and notes interest.
CHAPTER 2
I. Matching Type
1. M. Graph
2. F. General Journal
3. E. Posting
4. H. General Journal Report
5. C. Maintaining Accounts
6. L. Statement of Owner’s Equity
7. I. Income Statement
8. K. Balance Sheet
9. J. Component Percentage
10. A. Accounting Cycle
11. B. Fiscal Period
12. D. Journal
13. G. Adjusting Entries
14. N. Closing Journal Entries
15. O. Posting-closing Trial Balance
16. P. Bank Reconciliation

II. True or False

1. F
2. F
3. T
4. T
5. T
6. T
7. T
III. Questions
Directions: Answer each of the following questions in the space provided.

1. Describe the process for adding an account to the chart of accounts.

The Chart of Accounts is the complete list of all the company’s accounts and
balances. To add an account, navigate to transactions and select chart of accounts then
select new. After that, select the appropriate account type from the account
type dropdown menu and fill in all remaining fields and select Save and Close.
2. Describe the process for changing the title of an existing account in the chart of
accounts.
To change the title of an existing account in the chart of accounts, go to the
software’s accounting menu and select chart of accounts. Find the account in question
and then click the inverted triangle button on the action. Choose edit and change the title
then save and close.
3. Describe the process for deleting an account from the chart of accounts that has a
zero balance.
In the Home window, click Accounts. Double-click on the account you want to
exclude. On the Account tab, check the box beside Omit from Financial Statements if
Balance is Zero. On the File menu, click Save, or click the Save button on the toolbar.
Close the Chart of Accounts Records window.
4. What kind of transaction may be entered in the general journal?
There are different types of transactions that can be recorded in the general journal.
This includes asset sales, depreciation, interest income and interest expense, and stock
sales and repurchases.
5. Describe the process for correcting a general journal entry.
Click on the Journals toolbar button. When the Journal Entries window appears, click
on the General Journal tab and select the transaction that must be corrected. Key the
correction(s), then choose the Post button.
6. Describe the process for deleting a general journal entry.
Click on the Journals toolbar button. When the Journal Entries window appears, click
on the General Journal tab, select the transaction to be deleted, then chose the Delete
button.
7. Explain how the chart of accounts button can be used while entering general journal
transactions.
While the Account field has the focus, choose the Chart of Accounts button to cause
the computer to display a selection list from which an account may be selected and
placed in the Account field.
8. Complete the date range section of the following journal report selection window to
display all general journal entries from July 1 through July 31 of the current year.
Start Date: 07/01/--
End Date: 07/31/--
9. Complete the following journal report selection window to display all general
journal entries from September 1 through September 10 of the current year with a
reference of 5435.
Start Date: 09/01/--
End Date: 09/10/--
Reference: 5435
10. If the balance in the supplies account after all transactions for the fiscal period have
been processed and before adjusting entries is $ 1,585.00 and the current supplies
inventory is $ 1, 250.00, what is the amount of the supplies adjusting entry?
$335.00
11. What financial statements are available for non-departmentalized business
organized as a sole proprietorship?
Income Statement, Balance Sheet, and Statement of Owner’s Equity.
12. What information as automatically provided by the computer from the journal
entries for the bank reconciliation?
In the Reconciliation window, the computer automatically includes the Cash account
balance in the Checkbook Balance field, and all the checks written during the period are
displayed in a list box.
13. Briefly describe the closing entries automatically generated by the computer.
The computer automatically generates the closing entries that close the temporary
income statement accounts to the income summary account, close the income summary
account to the capital account, and close the drawing account to the capital account.
14. Describe the procedure to correct an error discovered after closing.
If an error is detected after closing, use the following procedure: (1) correct the
journal entry in error, (2) delete the closing entries, and (3) again generate, display, and
post the closing journal entries.