Midterm Acct 3300

The document flowchart symbol for a manual file (such as a file cabinet of accounts receivable invoices) is: (see word document for images) A) a B) b C) c D) d

upside down triangle

A USB drive that uses flash memory is an example of a(n): A) Input device B) Output device C) Secondary storage device D) Web device

...C) Secondary storage device

Time cards, airline reservation screens, and bank deposit screens best describe which of the following? A) Data transcription B) Point-of-sale devices C) Source documents D) Turnaround documents E) Data transaction documents

...C) Source documents

Well-designed output reports are characterized by all but which of the following? A) They are useful B) They are conveniently formatted C) They never include graphs D) They are easily identifiable

...C) They never include graphs

Which of the following best describes documents initially prepared by a company, then sent to individuals, and finally returned to the organization for data processing? A) Mark-sense media B) Source documents C) Turnaround documents D) MICR documents

...C) Turnaround documents

Which of the following symbols represents the standard system flowcharting symbol for a computer-generated document? (see word doc for images) A) a B) b C) c D) d

...C) c

Which of the following symbols represents the standard system flowcharting symbol for a screen display? (see word doc for images) A) a B) b C) c D) d

...C) c

The term cloud computing refers to: A) Fuzzy computing logic B) Hidden computer data, which are obscured in some way C) purchasing computing services on the internet D) Undetected errors in data processing

...C) purchasing computing services on the internet

A system flowchart is a block diagram that: A) Is used only by auditors B) Is used primarily when document flowcharts cannot be used C) Depicts the flow of computer systems in an organization D) Depicts the flow of data through a computerized accounting information system

...D) Depicts the flow of data through a computerized accounting information system

The term DSL is mostly closely associated with: A) PDAs B) Biometrics C) Compiling computer programs D) Digital data transmission

...D) Digital data transmission

When an individual prepares a document flowchart, the names of the various organizational departments involved in the accounting information system should be listed: A) Along the right-hand margin of the flowchart B) Along the left-hand margin of the flowchart C) In the title of the flowchart D) In the column headings of the flowchart

...D) In the column headings of the flowchart

Which of these is one of the five interacting components of an accounting information system? A) Fuzzy logic B) Testing C) Certification D) Procedures E) Internet

...D) Procedures

Which of the following is not a primary objective of coding systems today? A) To compress data B) To uniquely identify objects C) To convey special meanings that are not apparent to the public-at-large D) To use numbers instead of alphabetic characters in order to save on computer data storage costs

...D) To use numbers instead of alphabetic characters in order to save on computer data storage costs

A secondary storage device that protects against disk failures and increases storage capacities by using stacks of hard disks best describes which of the following? A) Magnetic disk B) CD-ROM disk C) Flash memory D) WORM (Write-once, Read-many) Disks E) RAID (Redundant Array of Independent Disks)

...E) RAID (Redundant Array of Independent Disks)

Which of the following statements best describes business process outsourcing? A) A company focuses on its core business processes and contracts with another firm to do the other processes B) Companies frequently outsource core business processes C) Due to networked enterprises and advanced technology, more employees may work from their homes or alternate locations D) Initially, companies engaged in business process outsourcing offered employees more opportunities to travel and more career choices for advancement

A) A company focuses on its core business processes and contracts with another firm to do the other processes

Which of the following is not a common way to steal personal identity information? A) Altering computer records B) Using key logging software C) Dumpster diving D) Phishing

A) Altering computer records

Computer programs that can scan computer disks for virus-like coding are called: A) Antivirus software B) Virus software C) Detection software D) Friendly applets

A) Antivirus software

Which of the following captures the same idea as the term "GIGO?" A) Computers cannot turn straw into gold B) Too much information is the same as garbage C) Great investments lead to great returns D) Too many cooks spoil the broth

A) Computers cannot turn straw into gold

The term "smishing" means: A) Conducting identify theft by using text messages on cell phones B) Attempting to appear unnoticeable for an illegal act C) Stealing small amounts of monies from several computer accounts D) Masquerading as a corporate manager in order to obtain useful information

A) Conducting identify theft by using text messages on cell phones

The process of changing data before, during, or after they are entered into a computer system is called: A) Data diddling B) Salami technique C) Logic bombs D) Social engineering

A) Data diddling

Which of the following statements best describes a business process? A) It is a collection of activities in an organization that creates value B) The nature and type of processes might vary from industry to industry C) It is an activity that increases and/or decreases dollar amounts on the financial statements D) It is an economic event in the life of an organization

A) It is a collection of activities in an organization that creates value

Which of the following best explains why we have incomplete information on computer crime? A) Most companies handle abuse as an internal matter B) Most newspapers no longer have any interest in reporting computer crime C) Documentation of abuses is usually poor D) We believe that most computer crime is not caught

A) Most companies handle abuse as an internal matter

Which of the following is not an important feature of an enterprise system? A) Multiple databases B) Centralized database C) Functional integration D) Back-office functionality

A) Multiple databases

An application service provider (ASP): A) Owns the software and processes your data on the ASPs computers B) Hosts the software and processes your data on your computer system C) Is an outsourcing company that processes your data, prepares reports that you specify, and then mails the results on a weekly basis D) none of the above

A) Owns the software and processes your data on the ASPs computers

Inputs to the financing process include: A) Remittance advices, deposit slips, checks, and stock market data B) Remittance advices, deposit slips, checks, and receiving reports C) Deposit slips, checks, receiving reports, and purchase requisitions D) Deposit slips, checks, purchase requisitions, and financial institution profiles

A) Remittance advices, deposit slips, checks, and stock market data

The U.S. Patriot act: A) Requires banks to monitor their accounts in foreign institutions for fraud B) Prohibits companies from lending money to corporate executives C) Only applies to publicly-traded companies D) all of these are correct

A) Requires banks to monitor their accounts in foreign institutions for fraud

__________ describes the technique of stealing small amounts of money from a large number of accounts over time. A) Salami technique B) Buffet system C) Baloney method D) Dialing for dollars

A) Salami technique

Which of these terms describes a computer program that remains dormant until triggered by some specific circumstance or date? A) Trojan horse program B) DDoS program C) Logic bomb D) Dial back system

A) Trojan horse program

There is no complete, generally accepted definition of computer crime presently available. A) True B) False

A) True

Which of these is a business reporting language often used in recording or transmitting accounting data? A) XBRL B) XFile C) ABC D) Accounting Live

A) XBRL

An example of a conflict-of-interest situation is: A) Not working for a new company in a job similar to your last job B) Not talking to outsiders about general business concerns C) A decision where personal and corporate goals conflict D) Refusing to use a new computer if your colleagues are not provided similar systems

C) A decision where personal and corporate goals conflict...

Which of the following best describes a data warehouse as discussed in Chapter 1? A) A repository of historical information from one accounting application B) A repository of historical information from a set of accounting applications C) A repository of information from many business applications—some not accounting D) A repository of information from many businesses in the same industry

C) A repository of information from many business applications—some not accounting

Which of the following Business Process Management (BPM) software solutions is most often associated with the sales process? A) Enterprise resource management B) Integrated management C) Customer relationship management D) Supply chain management E) none of the above

C) Customer relationship management

Hacking involves: A) Stealing carbons of credit cards B) Destroying computer hardware C) Gaining illegal entry to computer files from remote locations D) Inserting a logic bomb in a computer program

C) Gaining illegal entry to computer files from remote locations...

Managerial accounting principally provides information to: A) Stockholders B) Government regulators (e.g., SEC, Federal bank examiners) C) Internal company management D) Potential creditors

C) Internal company management

A forensic accountant is an accountant who: A) Performs autopsies on dead accountants B) Tries to explain why some accounts become inactive C) Investigates suspected fraud D) Performs court-approved accounting tasks for bankrupt companies

C) Investigates suspected fraud...

All of the following are reasons why information technology is important to accountants except: A) IT supports AIS functions such as communications and record keeping B) Accountants must often evaluate AISs for themselves or for clients C) It is important to keep up; if your competitors buy new computers, you should too D) IT is likely to affect the way accountants work in the future

C) It is important to keep up; if your competitors buy new computers, you should too

Which of the following is not a concern of the financing process? A) Effective cash management B) Optimizing an organization's cost of capital C) Minimizing an organization's borrowings D) Projecting cash flows

C) Minimizing an organization's borrowings

Integrated accounting software programs generally include all of the following, except: A) Graphic reporting capabilities B) Internet connectivity C) One standardized chart of accounts D) The ability to handle multiple companies

C) One standardized chart of accounts

Bernard Madoff is most closely associated with which of the following terms? A) The father of activity-based costing systems B) SAR C) Ponzi scheme D) Sarbanes-Oxley Act of 2002 E) Key sponsor of the Patriot Act

C) Ponzi scheme

At present, we think that computer crime is: A) Falling B) Random C) Rising D) Flat

C) Rising

Many accountants feel that the most important part of the Sarbanes-Oxley Act is: A) Its anti-terrorist provisions B) Its provisions requiring the reporting of suspicious activities C) Section 404 on internal controls D) Section 505 on money laundering

C) Section 404 on internal controls

Which of the following is true about the terms "data" and "information" within the context of Chapter 1? A) These terms are exactly the same B) These terms are exact opposites C) Some "data" can also be "information" D) none of these

C) Some "data" can also be "information"

If a manager suffers "information overload": A) He or she must press the reset button on his or her computer B) It means that this person needs a larger hard drive C) The "information" is really just data D) He or she must forget some facts in order to remember others

C) The "information" is really just data

Which of the following is a primary reason why accountants should be concerned about computer crime and abuse? A) They might lose their job if they don't detect computer crime or abuse in their organization B) They might lose their professional credibility and license if computer crime or abuse continues for a long time in their organization and they do not detect it C) They are responsible for designing, implementing, and monitoring the control procedures for AISs D) all of the above are equally important

C) They are responsible for designing, implementing, and monitoring the control procedures for AISs

A good performance measurement system should evaluate: A) Profitability only B) Customer satisfaction only C) Those aspects of a unit's performance that are subject to its control D) Those aspects of a unit's performance whether controllable or not

C) Those aspects of a unit's performance that are subject to its control

Accounting "ethics" means: A) Whatever the corporate manual says it means B) Acting responsibly as long as no dollars are involved C) Only being honest; everything else is up for grabs D) Acting responsibly, no matter what

D) Acting responsibly, no matter what

The process by which a financial transaction is recorded so that its flow through the system can be followed is called: A) Financial shadowing B) Managerial trace technique C) Concatenation D) An audit trail

D) An audit trail

The largest expense item on a manufacturing organization's income statement is most likely to be: A) Salaries for production workers B) The depreciation associated with manufacturing equipment C) The cost of direct materials D) Cost of goods sold

D) Cost of goods sold

Enterprise-wide AISs: A) Almost never pay for themselves B) Do not include any more features than middle-range accounting software packages C) Are seldom used by multinational organizations D) Integrate an organization's financial functions with its other functional areas

D) Integrate an organization's financial functions with its other functional areas

Which of the following is true regarding ERP costs? A) Enterprise systems tend to be less costly than integrated accounting software B) Enterprise systems are always less costly than best of breed software solutions C) Costs associated with reassigned employees have nothing to do with the true cost of an enterprise system D) There may be many costs that continue after systems implementation

D) There may be many costs that continue after systems implementation

When we talk about a Value-Added Reseller, in the context of accounting and enterprise software, we are referring to an individual or business that: A) Usually assists small businesses select entry-level, small business software B) Is a qualified installer of mid-level or high-end accounting software C) Makes special arrangements with software vendors and is able to train customers D) both (b) and (c) E) none of the above

D) both (b) and (c)

Job costing information systems are most appropriate for: A) Home builders B) Textbook publishers C) Beverage companies D) both a and b are appropriate industries for job costing systems

D) both a and b are appropriate industries for job costing systems

Which of the following is an example of a not-for-profit organization? A) Consulting firm B) State university C) Public hospital D) both b and c are correct

D) both b and c are correct

When we talk about "front-office" capabilities of today's ERP systems, we are referring to which of the following? A) The payroll functions B) The human resource functions C) The administrative functions D) none of the above

D) none of the above

Forecasting cash flows: A) Is an objective of transaction processing B) Is never considered an objective of transaction processing C) Is only possible in computerized AISs D) Is considered as a risky activity with which accountants should not be associated

... A) Is an objective of transaction processing

The bill of lading: A) Reflects freight charges on goods shipped B) Signifies release of goods for shipment to customers C) Is sent to the customer with the purchase invoice D) Is used to control inventory

... A) Reflects freight charges on goods shipped

POS devices, bar code readers, and OCR devices are examples of: A) Input devices B) Output devices C) Processing devices D) Transaction devices

...A) Input devices

A bar code reader is most likely to be used by which type of system? A) POS system B) MICR system C) Printer/scanner system D) Fax machine system

...A) POS system

The sales process begins with: A) Placing an order with a vendor B) A customer order for goods or services C) Production of goods or services D) Delivery of goods or services

...B) A customer order for goods or services

The primary objective in processing revenues is to: A) Sell as many goods as possible B) Achieve timely and efficient cash collection C) Maximize an organization's sales orders D) Only sell goods to customers who can pay their bills

...B) Achieve timely and efficient cash collection

Data flow diagrams: A) Accomplish the same purpose as system flowcharts B) Are different from system flowcharts since they focus on a logical view of the information system C) Are useless for planning a new system D) Are never used in analyzing an existing system

...B) Are different from system flowcharts since they focus on a logical view of the information system

Which type of company is most likely to use MICR? A) Grocery store B) Bank C) Phone company D) Web site seller

...B) Bank

Which of the following is not an objective of the purchasing process? A) Inventory control B) Fastest possible processing of payments to vendors C) Maintaining vendor records D) Forecasting cash outflows

...B) Fastest possible processing of payments to vendors

A general ledger: A) Is a chronological listing of an organization's transactions B) Is a listing of an organization's transactions, organized by account C) Does not include every account in an organization's chart of accounts D) Is the same thing as a transaction listing

...B) Is a listing of an organization's transactions, organized by account

This is an example of an RFID system with a very limited range (less than 8 inches): A) LAN system B) NFC system C) WAN system D) MICR system

...B) NFC system

The financial accounting cycle ends with: A) The production of financial statements B) The production of a post closing trial balance C) The production of an adjusted trial balance D) Development of cash forecasts

...B) The production of a post closing trial balance

Which of the following symbols represents the standard system flowcharting symbol for a processing operation? (see word doc for images) A) a B) b C) c D) d

...B) b

The UPC code is an example of a(n): A) PDA B) MICR C) Bar code D) Biometric input

...C) Bar code

A POS device is usually attached to a: A) Printer B) Bank check C) Cash register D) Keyboard E) Computer mouse

...C) Cash register

Which of the following is a component of a client/server system? A) User component B) Satellite component C) Data-management component D) Output component

...C) Data-management component

Which source document is used to request goods? A) Purchase order B) Shipping notice C) Purchase requisition D) Sales order

...C) Purchase requisition

When associated with CD-ROMs, the letters "rw" mean: A) Raw B) Rewind C) Rewriteable D) Regular width

...C) Rewriteable

A computer virus is: A) A disease that computer programmers are very susceptible to B) A small processing routine that the user accidentally introduces into the system C) A misnomer, since unlike biological viruses, computer viruses cannot reproduce themselves D) Harmless

B) A small processing routine that the user accidentally introduces into the system...

The primary objective of a manufacturing organization's production process is to: A) Maintain inventories at a zero level B) Convert raw materials into finished goods as efficiently as possible C) Make sure that there are no product defects D) Maintain the documentation and report on an organization's manufacturing process

B) Convert raw materials into finished goods as efficiently as possible

The managerial accounting component of the accounting subsystem contains all but which one of the following functions: A) Cost accounting B) Financial accounting C) Budgeting D) Systems study

B) Financial accounting

Much of what has been termed computer crime has merely involved the computer but probably would be more accurately classified as other types of crimes. A notable exception to this involves: A) Raiding dormant bank accounts B) Inventory misappropriation C) Embezzlement D) Theft of computer time

B) Inventory misappropriation

Business process reengineering efforts sometimes fail because: A) Management gets too involved in the process B) Management is too optimistic regarding its expectations from its implementation C) Management support can never overcome employee resistance D) Employees will never accept change

B) Management is too optimistic regarding its expectations from its implementation

The P in the acronym KPI stands for: A) Processing B) Performance C) Planning D) Personnel E) none of these

B) Performance

The letter "P" in the acronym "ERP" stands for: A) Production B) Planning C) Project D) none of these

B) Planning

Time and billing systems are most often used by: A) Health care organizations B) Professional service organizations C) Retail organizations D) Not-for-profit organizations

B) Professional service organizations

A "logic bomb" is a computer program that: A) Rewrites the instructions of a particular computer program B) Remains dormant until an event triggers it C) Contains an error in it D) "Blows away" (impresses) the boss when he or she sees it

B) Remains dormant until an event triggers it