FIS multiple choice Questions

When a retail cash sale is made, the transaction data are stored in which file(s)? a.Cash disbursements file.b.Sales transaction file and cash receipts transaction file.c.Sales transaction file.d.Cash receipts transaction file.

B

Which of the following defines a master account? a.An account that has no sub-accounts.b.An account that is similar to a control account.c.An account that accumulates physical as opposed to monetary data.d.An account that is similar to a subsidiary ledger account.

B

Which of the following statements concerning entity-relationship modeling is true? A. It has a strong theoretical base but seldom is used in practice. B. It is a method for arranging data elements after the decision has been made to implement a relational database management system. . C. It involves identifying and documenting the system outputs and the contents of the outputs that are required by users. D. The entity-relationship diagram depicting the model is read from top to bottom and cannot be read from bottom to top

B

What is the difference or similarity between open item and balance forward billing? a.Both the open item and the balance forward methods apply cash receipts to individual invoices.b.Both the open item and the balance forward methods apply cash receipts to the total balance outstanding.c.The open item method applies cash receipts to individual invoices, and the balance forward method applies cash receipts to the total balance outstanding.d.The balance forward method applies the cash receipts to individual invoices and the open item method applies cash receipts to the total balance outstanding.

C

What report is essential to organizations using "just in time" operations to minimize inventory? a. Excess inventory report b. Returns and allowances report c. Inventory and PO aging report d. Order recommendation report

C

Where does most of the data entry relating to inventory occur a. In the inventory and revenue processes b. In the financial and revenue processes c. In the procurement and revenue processes d. In the inventory and procurement processes

C

Which input verification control can prevent or detect the following problems?A payroll clerk inadvertently typed one more 0 in the hour-worked/week field, consequently paying the employee for 400 hours worked in that week. a. Valid data type b. Anticipated contents c. Reasonableness of amount d. Valid codes

C

A processing feature unique to the general ledger module is one that allows the altering of recorded transactions if they have not been permanently posted. What is the feature called? a. Provisional posting b. Pencil posting c. Ink posting d. Both A and B

D

If a customer account involves low volume transactions and large transaction amounts, it is more likely the account to be set up as a(n) a. Regular customer account b. Special customer account c. Balance forward account d. Open item account

D

Which of the following is not a common inventory problem for mercantile organizations? a. Maintaining an economic level of inventory on hand b. Avoiding obsolete inventory c. Managing a selection of products to achieve satisfactory profitability d. Determining the lead time for products

D

Which of the following is not a common inventory problem for mercantile organizations? a. Maintaining an economic level of inventory on hand b. Avoiding obsolete inventory c. Managing a selection of products to achieve satisfactory profitability d. Determining the lead time for products.

D

Which is primarily concerned with providing the user with hardware resources? a. IaaS b. PaaS c. SaaS d. DaaS

A

Which of the following defines a statistical account? a.An account that accumulates physical as opposed to monetary data.b.An account that is similar to a control account.c.An account that accumulates monetary as opposed to physical data.d.An account that is similar to a subsidiary ledger account.

A

Which of the following initiates a bidding situation among suppliers? a. Request for quotation; request for proposal b. Request for bid response; request for quotation c. Request for deliverables; request for quotation d. Request for proposal; request for bid response

A

Which of the following is a control document for cash receipts? a. Remittance advice b. Credit memorandum c. FOB d. Picking list

A

Which of the following is used as a source document for entering receipts in the cash receipts transaction file? a.Customer s remittance advice.b.Shipping report.c.Customer s purchase order.d.Customer invoice.

A

Which of the following statements regarding normal forms is incorrect? A. A table is in first normal form if it has multivalued or repeating data elements. B. A table that has a single primary key is in second normal form. C. Converting a table into second normal form applies only to a table that has a composite key. D. A table is in third normal form if it is in second normal form and has no transitive dependencies.

A

In what form are data transferred to the general ledger module from other modules? a.In neither summary nor detail form.b.In detail or summary form.c.In detail form only.d.In summary form only.

B

Which of the following data elements are called repeating data elements in an invoicing application? A. Product number, product description, invoice number, customer code B. Product number, product description, unit sales price, quantity sold C. Product number, unit sales price, invoice date, quantity sold D. Product number, unit sales price, customer city, customer code

B

Which of the following is the first step in developing a database for an accounting system using the REA framework approach? A. Identify and document the relationships among the events, resources, and agents that are of interest to users. B. Identify and document the business events, or activities, that are of interest to users and the resources and agents that are related to the events. C. Identify and document attributes that are related to the resources, events, agents, and relationships that are of interest to users. D. Determine what tables to create and what data elements to put in which tables by referring to an E-R diagram.

B

After an organization compares the vendor invoice with the purchase order data and the receiving data, the invoice data are then keyed into what file? a.Accounts payable file.b.Purchase order file.c.Open invoice file.d.Receiving transaction file.

C

If a customer's payment is delayed for an excessive period of time, what is the appropriate notice to be sent? a. An invoice b. A statement c. A dun d. A discount

C

If a transaction was rejected because the sales representative whose identification number appeared on the record no longer worked at the store, then what control probably detected the error? a. A dual read check b. A valid code check c. A valid character check d. A reasonableness test

C

In accounting software packages, what is the equivalent term for accounts in a subsidiary ledger? a. Master accounts b. Modules c. Sub-accounts d. Normal accounts

C

IoT devices are particularly vulnerable to _________ threats. A. Connectivity B. Sensors C. Security D. Lack of storage

C

What are resources, events, and agents called in the REA framework? A. Properties B. Dependencies C. Entities D. Attributes

C

What is a primary key? a.A data element that is used to map a database.b.A data element that is placed in another table so the tables can be joined.c.One or a group of data elements that uniquely identifies a record in a table.d.A data element that is used to build an index file.

C

Which of the following are software systems that expand an organization's reach outside to suppliers and customers? a. Enterprise resource planning systems b. Just in time inventory systems c. Supply chain management systems d. None of the above

C

Which of the following defines cycle billing? a.Billing all customers at one time each month.b.Allowing each customer to select the frequency of his/her billing.c.Spreading customer billing throughout the month.d.Billing customers every six months instead of every month.

C

Which of the following reports would be useful to a manager for selecting invoices to be paid? a.Cash requirements forecast.b.Schedule of aged accounts receivable.c.Cash requirements forecast and schedule of aged accounts payable.d.Schedule of aged accounts payable.

C

What report is essential to organizations using "just in time" operations to minimize inventory? a. Excess inventory report b. Returns and allowances report c. Inventory and PO aging report d. Order recommendation report

CC

The implementation of a database begins by defining which of the following? A. Users' attributes B. System's outputs C. Organization's events D. Database schema

D

Which is not an IT governance framework? A. COBIT 2019 B. ISO 27001 C. ITIL D. Dodd-Frank

D

Which of the following activities are included in the revenue process of a merchandising organization? a.Recording and acknowledging sales orders.b.Advertising product and soliciting orders.c.Shipping orders and billing customer.d.All of these are activities in the revenue process for a merchandising organization.

D

What was the first major use for Blockchain Technology? A. Bitcoin B. Corporate Accounting C. Banking D. Legal Contracts

A

Which of the following statement(s) about provisional posting is (are) FALSE? a.Provisional posting can be used whether the accounting systems uses real-time or batch posting.b.Provisional posting can be used only if the accounting system uses batch posting.c.Provisional posting allows a user to make any necessary corrections to transaction files.d.Provisional posting is also known as pencil posting.e.All of these statements are true.

A

Which of the following statements does NOT apply to a database management system? a.The database administrator is part of the software package that instructs the operating aspects of the program when data are retrieved.b.A primary goal of database management systems is to minimize data redundancy.c.Database management systems contain a data definition language that helps describe each schema and subschema.d.Database management systems have data independence (i.e., data and programs are maintained separately during processing).

A

QUESTION 8 What does converting a table with multiple values into first normal form accomplish? A. Reduction of data redundancy B. Elimination of the risk of errors in the data C. Elimination of anomalies D. Elimination of data redundancy and elimination of anomalies

A

When looking for solutions to problems with the help desk process, the firm will look to A. ITIL B. COSO C. COBIT D. SLA

A

Which of the following define(s) trade credit? a.Credit extended to an organization s business customers.b.A trading agreement between two vendors.c.Credit extended to an organization s vendor.d.A trading agreement between the buyer and the seller.

A

Which of the following describe the attributes of "big data"? a. Velocity, variety, volume b. Velocity, value, volume d. Variety, value, sites visited d. Volume, sites visited, velocity

A

A primary key is one or a group of data elements that uniquely identifies what? A. A file B. A record C. A transaction D. A byte

B

After an organization compares the vendor invoice with the purchase order data and the receiving data, the invoice data are then keyed into what file? a. Purchase order file b. Open invoice file c. Accounts payable file d. Receiving transaction file

B

What are common-dollar statements? a.Financial statements that are presented in more than one currency for international companies. b.Financial statements where each item is shown as a percentage of some base amount that is designated as 100%. c.Statements that include a bar chart with all the tasks to be completed on the vertical axis and a calendar on the horizontal axis.d.Financial statement where the amounts for the current year are presented along with the amounts for the prior year.

B

What are listings of the cash disbursements transaction file referred to? a.Invoice register.b.Check register.c.Vendor master file.d.Accounts payable master file.

B

What does an ellipse represent in an entity-relationship diagram? A. Relationship B. Attribute C. Entity D. Activity

B

What is PII? a. Personal identity indicator b. Personally identifiable information c. People identify individuals d. Personal information indicator

B

What is a data dictionary? a.A special file, stored in data definition language, that makes a data element in one schema correspond to an element in another schema.b.A special file, stored in the database itself, that provides metadata on the description, structure, and type of each data element stored in the database.c.A special file, stored in an application program, that provides instructions for processing data.d.A special file that is required to initiate the processing of data.

B

What is a major source of purchasing errors? a.EDI errors.b.Data entry errors.c.Not validating the purchase order.d.Not setting budgets for managers.

B

What is an engagement letter? a.A purchase order for a merchandising organization.b.A sales order for a public accounting firm.c.A sales receipt for a service organization.d.A picking list for an audit client.

B

What is the core activity of an accounting information system? a. The revenue process b. The purchasing process c. The financial process d. The transaction process

C

Which of the following data elements are not included in a sales invoice? A. Invoice number, invoice date, customer code, customer name B. Sales representative name, sales representative commission, sales representative discount C. Product number, quantity sold, product description, unit sales price D. Extended amount, total due, customer address

B

Which of the following is part of the financial process because it is an event that does not fall within the revenue, purchasing, or inventory processes? a. Cost accounting b. Payment of stock dividends c. Accounts receivable d. Cash receipts

B

Which of the following statements regarding sales returns in FALSE? a.A sales return involves a cash refund or an adjustment to the customer s account.b.A sales return requires a partial reduction of sales revenue.c.A sales return requires the reduction of sales revenue by the full amount of the sale.d.A sales return can involve giving a refund less a restocking fee.

B

What type of relationship do a customer table and an invoice table have? a.One-to-one.b.Many-to-many.c.One-to-many.d.All of the above.

C

2Which of the following is not true regarding the balance forward method of accounting for accounts receivable? a. Payments are applied to the outstanding balance rather than to particular invoices. b. No attempt is made to match individual payments and invoices. c. Invoice records remain in the open invoice file until payment is received. d. The open invoice file is archived at the end of the period.

C

What does the selection and projection function do? a.It results in a new table with only the desired columns from a single source table.b.It results in a new table that combines the columns and rows from two source tables.c.It results in a new table with only the desired columns of the desired rows from a single source table.d.It results in a new table that combines the desired columns and all the rows from two source tables.

C

What is a virtual data element? a.A data element that is used to sort data for analysis.b.A data element that is used to connect two tables.c.A data element that is calculated on demand from other data elements.d.A data element that uniquely identifies a record.

C

What is meant by the logical structure of a database? a.The way the data are stored on storage devices.b.The internal level of a database.c.The way the data are thought about, or viewed, by users.d.The conceptual and internal levels of a database.

C

Which of the following defines the auto-enter function? a.The feature that eliminates the need to key in a decimal point when entering an even dollar amount.b.The feature that automates recurring journal entries by allowing a user to set up and store a journal entry and then invoke the entry as necessary.c.The feature that moves the curser automatically to the next field so the user does not have to press the enter key.d.The feature that automates the distribution of the total amount of a transaction to several accounts.

C

Which of the following defines the dollar-entry function? a.The feature that allows the disbursement of money to be allocated among several different accounts.b.The feature that saves one keystroke by not having to enter a decimal point.c.The feature that saves three keystrokes by not having to enter a decimal point or cents for even dollar amounts.d.The feature that allows the frequency of recurring entries to be pre-arranged so they do not have to be manually entered every time.

C

Which of the following describe(s) the term FOB point ? a.Title to goods changes from the shipper (i.e., seller) organization to the customer as soon as the item is received at the customer s receiving dock.b.Title to goods changes from the shipper (i.e., seller) organization to the customer as soon as the item leaves the shipping dock.c.The location at which title to goods changes from the shipper (i.e., seller) organization to the customer.d.None of the above describe the term FOB point.

C

Which of the following describes a schedule of aged accounts payables? a.A listing of unpaid customer invoices by whether they are current or delinquent.b.A type of exception report to determine collectibility of accounts.c.A listing of unpaid vendor invoices by whether they are current or delinquent.d.None of the above describes the aged accounts payable report.

C

While entering data into a cash receipts transaction file, an employee transposed two numbers in a numeric code. Which of the following controls would have prevented this type of error? a. Sequence check b. Record check c. Self-checking digit d. Field-length check

C

Why are audit trails for the purchasing process somewhat more complicated than thosefor the revenue process? a. The revenue process involves the revenue recognition principle. b. The purchasing process usually includes only a single journal entry and, therefore, provides inadequate support. c. The purchasing process may involve two journal entries often made at difference times. d. The revenue process is vulnerable to errors when posting from the cash receipts journal.

C

__________ is a framework of policies to ensure that the organization's users have access to the resources needed to perform their job functions. A. Zero day B. COSO C. Identity and asset management D. IoT

C

In an electronic data interchange (EDI) system, which of the following statements about a purchase order is CORRECT? a.The purchaser s purchase order is mailed or faxed to the vendor.b.The vendor electronically retrieves the purchase s purchase order (PO) from the purchaser s open PO file.c.The purchaser does not need to store purchase order data in an open PO file.d.The traditional paper purchase order is replaced by an electronic message transmitted from the purchaser s computer to the vendor s computer.

D

In most accounting information systems, the purchasing function is represented by which module(s)? a.Accounts receivable module.b.Accounts payable module.c.Purchase order module.d.Purchase order module and accounts payable module.

D

What is a common flow of data in the purchasing process? a.Ordering goods, shipping, and disbursing cash.b.Sales order processing, shipping, invoicing, and receiving cash.c.Receiving inventory, storing inventory, and shipping inventory.d.Ordering goods, receiving, invoicing, and disbursing cash.

D

What is the purpose of a vendor performance report? a.To review the instances of vendor quality assurance results.b.To allow managers to review current products offered by vendors on the approved vendor list.c.To review the financial reports of vendors on the approved vendor list.d.To determine the effectiveness of vendors in achieving price, quality, and

D

Where does mapping occur? a.Between the external and conceptual levels.b.Between the conceptual and internal levels.c.Between the external and internal levels.d.Between the external and conceptual levels and between the conceptual and internal levels.

D

Which input verification control can prevent or detect the following problems?A warehouse clerk inadvertently typed the letter "L"(lower case is "l") instead of the number 1 in an inventory code. a. Valid data type b. Anticipated contents c. Reasonableness of amount d. Valid codes

D

Which of the following defines a credit limit? a.The classification of customers by creditworthiness.b.The background check performed on all potential credit customers.c.The restriction of credit until payments are received.d.The maximum amount of credit an organization will extend to a particular customer.

D

Which of the following describe(s) the type(s) of transactions in the financial process? a.End-of-period adjustments.b.Transactions captured in and transferred from other modules.c.Transactions originally posted in the financial process.d.All of these are types of transactions in the financial process.

D

Which of the following files is not owned by the account receivable application in a conventional accounting system? a. Open customer invoice file b. Customer master file c. Cash receipts transaction file d. Vendor master file

D

Which of the following is TRUE regarding inactive accounts? a.After an account has been designated as inactive, entries can be made to that account for one accounting period; after that the account is deleted from the general ledger.b.After an account has been designated as inactive, it is immediately deleted from the general ledger.c.After an account has been designated as inactive, entries can be made to that account for one accounting period.d.After an account has been designated as inactive, no entries can be made to that account; but it is NOT immediately deleted from the general ledger.

D

Which of the following represent (s) a virtual data element? a.Total amount due on a vendor s invoice.b.Variance between budgeted amount and actual amount on a project report.c.Total hours worked for the two weeks recorded on a weekly time sheet.d.All of these are virtual data elements.

D

Which of the following statements about an index file is (are) true? a.It is maintained in order of the index key.b.It is an auxiliary file to a data file that is used to increase the speed at which records in the related date file are sorted and accessed.c.It contains only two fields.d.All of these statements about an index file are true.

D

Which of the following statements is TRUE? a.Petty cash limits tend to be smaller in small organizations and higher in larger organizations.b.Actual disbursement of cash is the responsibility of the accounts payable department.c.Cash disbursements to a vendor may not be made from petty cash.d.Setting up relationships with a limited number of trading partners can allow for a just-in-time inventory system.

D

Why is the time-sensitive entries feature useful? a.There is no such thing as a time-sensitive entries feature.b.It requires that the books for the last period be closed prior to posting any entries for the new period.c.It allows entries to be made to accounts designated as inactive.d.It avoids the requirement that the books for the last period be closed prior to posting any entries for the new period.

D