Module 12: General Ledger and Reporting System

When updating the general ledger, sales, purchases, and production are examples of _________ entries, and issuance or retirement of debt and the purchase or sale of investment securities are examples of _________ entries.

Accounting subsystem; Treasurer originated

Recording interest earned on an investment is an example of _________.

Accrual entry.

Which type of graph is the most commonly used to display trends in financial data?

Bar chart

Marina Fillimena is an accountant at Jasmina Hair Products. Marina received the following error message while making an adjusting entry to the general ledger: "The data you have entered does not include a source reference code. Please enter this data before saving." This is an example of _________.

Completeness test.

Performance reports for cost centers should compare actual versus budgeted _________ costs.

Controllable

The operating budget _________.

Depicts planned revenues and expenditures for each organization unit.

Which of the following is true about accounting for fixed assets?

Depreciation expense under IFRS will likely be higher than under GAAP because acquisition of assets with multiple components must separately depreciated under IFRS whereas under GAAP assets could be bundled and depreciated over the longest of the useful life for any of the components.

XBRL stands for _________.

Extensible Business Reporting Language.

What is a true statement about general ledger systems and ERP/AIS systems?

In most ERP/AIS systems, the general ledger (G/L) accounts exist where each G/L is electronically linked to an underlying subsidiary ledger where the G/L accounts perpetually reflects the current total balance of the associate subsidiary ledger.

IFRS is an acronym for what?

International Financial Reporting Standards

What system privileges should an employee involved in the general ledger and reporting system be given?

Only the specific privileges necessary to perform an employee's assigned duties.

Performance reports for sales departments should compare actual revenue versus budgeted _________.

Revenue

When you displayed journal entries that had been automatically generated "behind the scenes" in QuickBooks, you were demonstrating _________.

That accounting is integrated with operating activities in modern ERP/AIS systems.

Financial statements are prepared in a certain sequence. Which statement is prepared last in the sequence?

The Statement of Cash Flows

Who should provide the adjusting entries in a well-designed general ledger and reporting system?

The controller's area

Which of the following is true about IFRS?

There is a global trend towards using IFRS for reporting purposes, though U.S. companies are not currently required to do so.

Variances for variable costs will be misleading when the planned output differs from budgeted output. A solution to this problem would be _________.

To use flexible budgeting.

The balanced scorecard attempts to solve what major issue associated with traditional accounting reports?

Traditional accounting reports focus too narrowly on financial performance.

Marina Fillimena is an accountant at Jasmina Hair Products. Marina received the following error message while making an adjusting entry to the general ledger: "The account number referenced in your journal entry does not exist. Create a new account?" This is an example of _________.

Validity check.

Communications technology and the Internet can be used to reduce the time and costs involved in disseminating financial statement information. Users of such financial information still struggle in that many recipients have different information delivery requirements and may have to manually reenter the information into their own decision analysis tools. The ideal solution to solve these problems and efficiently transmit financial information via the Internet is to use _________.

XBRL