Chapter 2 - Quiz

With respect to computer-based storage concepts, which of the following statements is (are) true? (Check all that apply.) A.A set of interrelated, centrally coordinated files is referred to as a database. B.A file is a group of related records. C.An attribute is something about which information is stored. D.Data values are characteristics of interest that are stored.

A.A set of interrelated, centrally coordinated files is referred to as a database. B.A file is a group of related records.

Which of the following statements is(are) true? (Check all that apply.) A.A smart contract is a regular contract with the terms and agreed upon details built into a blockchain. B.Blockchain is more than a database; it is a new way to process, store, share, and search information. C.While the Internet is a network of value and of trust, a blockchain is a network of information. D.With blockchain, items of value can be exchanged in a secure and trusted manner.

A.A smart contract is a regular contract with the terms and agreed upon details built into a blockchain. B.Blockchain is more than a database; it is a new way to process, store, share, and search information. D.With blockchain, items of value can be exchanged in a secure and trusted manner.

Which of the following statements about data storage is (are) true? (Check all that apply.) A.A subsidiary ledger contains detailed data for any general ledger account with many individual subaccounts. B.A chart of accounts is a list of the numbers assigned to each general ledger account. C.A general ledger contains detailed level data for every asset, liability, equity, revenue, and expense account. D.A specialized journal is used to record infrequent or non-routine transactions. E.A general journal is used to record a large number of repetitive transactions.

A.A subsidiary ledger contains detailed data for any general ledger account with many individual subaccounts. B.A chart of accounts is a list of the numbers assigned to each general ledger account.

Which of the following is a benefit of implementing an ERP system at a multinational corporation? A.All of these are correct B.Standardization of procedures and reports across business units C.Increased productivity of employees D.Customer service improves as employees can quickly access data

A.All of these are correct

With the advent of cryptocurrencies, a new technology is changing the way financial and many other types of transactions are recorded, processed, and stored. This technology is called: A.Blockchain B.Transactionchain C.Cyclechain D.Cryptochain

A.Blockchain

The text discusses three different steps when processing input. Which of the following is (are) one of those steps? (Check all that apply.) A.Make sure to capture transaction data and enter them into the system. B.Make sure company policies are followed when data is input. C.Make sure captured data are accurate and complete. D.Make sure the input data is processed and stored correctly.

A.Make sure to capture transaction data and enter them into the system. B.Make sure company policies are followed when data is input. C.Make sure captured data are accurate and complete.

Which of the following statements about ERP systems is(are) true? (Check all that apply.) A.One way to choose a suitable ERP system is to select a package designed for your industry. B.Companies seldom hire outside help to implement ERP software. C.Since there are so few quality ERP systems, choosing one is an easy task. D.Top management's commitment to an ERP system greatly increases the chances of success. E.The importance of sound internal controls in an ERP system cannot be overstated.

A.One way to choose a suitable ERP system is to select a package designed for your industry. D.Top management's commitment to an ERP system greatly increases the chances of success. E.The importance of sound internal controls in an ERP system cannot be overstated.

ERP systems are modular, with each module handling a standard business process. This modular design allows businesses to add or delete modules as needed. Which of the following are typical ERP modules mentioned in the text? (Check all that apply.) A.Project management—costing, billing, time and expense, performance units, and activity management B.Financial—general ledger, budgeting, cash management, and preparation of managerial reports and financial statements C.System tools—tools for establishing master file data, specifying flow of information, and access controls D.Vendor relationship management—procurement and promotion, vendor contact and service, and call center support

A.Project management—costing, billing, time and expense, performance units, and activity management B.Financial—general ledger, budgeting, cash management, and preparation of managerial reports and financial statements C.System tools—tools for establishing master file data, specifying flow of information, and access controls

Accounting software has improved significantly over time. We now have intelligent or automated accounting systems that can: (Check all that apply.) A.Record transactions automatically, perform on demand accounting functions, and automatically distribute data B.Use machine learning and artificial intelligence to process data and store it in the cloud C.Make critical and strategic management decisions without human intervention D.Allow companies and clients to use smart portals to transfer data and information back and forth securely

A.Record transactions automatically, perform on demand accounting functions, and automatically distribute data B.Use machine learning and artificial intelligence to process data and store it in the cloud D.Allow companies and clients to use smart portals to transfer data and information back and forth securely

Which of the following are disadvantages of ERP systems? (Check all that apply.) A.They are complex because they have to integrate many different business activities and systems. B.The organization is less able to control access to the system. C.Usually companies must adapt their processes to standardized ERP business processes. D.It can take years to select and fully implement an ERP system. E.Data input must be captured or keyed multiple times as it is entered into different systems. Nice work!

A.They are complex because they have to integrate many different business activities and systems. C.Usually companies must adapt their processes to standardized ERP business processes. D.It can take years to select and fully implement an ERP system.

Which of the following statement(s) about the history of transaction processing is(are) true? (Check all that apply.) A.We used double-entry bookkeeping systems with journals and ledgers and paper-based financial reports for hundreds of years. B.When computers were invented, we digitized journals and ledgers and created transaction files and master files that did the job of paper-based journals and ledgers. C.When the number of master files proliferated, we combined multiple files into databases, which have grown much smaller and simpler. D.Originally, people kept track of transactions using a single-entry accounting system.

A.We used double-entry bookkeeping systems with journals and ledgers and paper-based financial reports for hundreds of years. B.When computers were invented, we digitized journals and ledgers and created transaction files and master files that did the job of paper-based journals and ledgers. C.When the number of master files proliferated, we combined multiple files into databases, which have grown much smaller and simpler. D.Originally, people kept track of transactions using a single-entry accounting system.

Cupcake by Emma is a dessert retailer located in Springtown, Texas. Emma is a sole proprietorship that stocks an inventory of between 30 and 50 different kinds of desserts. Inventory is updated in real time by the company's AIS. If Emma wishes to keep cumulative data about the company, Emma might use a A.master file. B.relational file. C.specific file. D.transaction file.

A.master file.

In an ERP system, the module used to record data about transactions in the disbursement cycle is called A.purchase to pay. B.financial. C.manufacturing. D.order to cash.

A.purchase to pay.

Which of the following is an example of an ERP system? A.John uses a computerized information system to keep track of all the financial data generated by his business. B.Each week Emily enters all of the data into a system that automatically generates purchase orders, based on predetermined inventory reorder points. Production quotas for the coming week are also automatically generated based on customer orders. C.Jim has a system that keeps track of the cash receipts and cash disbursements of his cleaning business. At the end of each month, the system helps him prepare a monthly profit and loss statement. D.Ken is a freelance contractor. He keeps records of all expenses and revenues on his cell phone app and the files are uploaded to the cloud on a regular basis.

B.Each week Emily enters all of the data into a system that automatically generates purchase orders, based on predetermined inventory reorder points. Production quotas for the coming week are also automatically generated based on customer orders.

With respect to data input, data must be collected about three facets of each business activity. Which of the following is (are) one of those facets? (Check all that apply.) A.The controls needed to protect activity data B.The people who participate in each activity C.Each activity of interest D.The decisions that will be made about each activity E.The resource(s) affected by each activity

B.The people who participate in each activity C.Each activity of interest E.The resource(s) affected by each activity

Which of the following is an example of a turnaround doc A.A company's financial statements B.Utility bill C.Employee earnings record D.Purchase orders

B.Utility bill

ERP is the abbreviation for A.enterprise resource program. B.enterprise resource planning. C.enterprise reporting program. D.entity resource planning.

B.enterprise resource planning.

Which of the following statements about ERP systems is(are) true? (Check all that apply.) A.Before ERP systems were developed, it was easy to include nonfinancial information in an AIS. B.Well-designed ERP systems provide management with the easy access to up-to-date information needed to plan, control, and evaluate business processes more effectively. C.ERP systems integrate all aspects of a company's operations with a traditional AIS. D.ERP systems use a centralized database to share information across business processes and coordinate activities.

C.ERP systems integrate all aspects of a company's operations with a traditional AIS. D.ERP systems use a centralized database to share information across business processes and coordinate activities.

What is the first step in the data processing cycle? A.Output B.Storage C.Input D.Processing

C.Input

Which of the following are advantages of ERP systems? (Check all that apply.) A.ERP systems are relatively inexpensive. B.Because the ERP system benefits are so great, there is little resistance to their installation. C.Management gains greater visibility into every area of the enterprise, and greater monitoring capabilities. D.ERP systems provide an integrated, enterprise-wide view of an organization's data and financial situation. E.Procedures and reports are standardized across business units.

C.Management gains greater visibility into every area of the enterprise, and greater monitoring capabilities. D.ERP systems provide an integrated, enterprise-wide view of an organization's data and financial situation. E.Procedures and reports are standardized across business units.

Which of the following is the most effective way to segregate duties in an ERP system? A.No one person should be responsible for recording and monitoring of organizational assets. B.No one person should be responsible for recording, risk assessment, and control procedures. C.No one person should be responsible for authorization, recording, and have custody of organizational assets. D.No one person should be responsible for authorization, monitoring, and risk assessment.

C.No one person should be responsible for authorization, recording, and have custody of organizational assets.

Which of the following is the most common source doc in the expenditure cycle? A.Bill of lading B.Credit memo C.Purchase order D.Remittance advice

C.Purchase order

Which of the following statement(s) about the Internet is(are) true? (Check all that apply.) A.The Internet has made business-to-business transactions more difficult to engage in B.Many Internet transactions are processed and stored by older, traditional legacy systems C.The Internet has made people-to-people interactions easier to engage in D.The Internet has many uses, including the ability to share information with large groups of people

C.The Internet has made people-to-people interactions easier to engage in D.The Internet has many uses, including the ability to share information with large groups of people

Data must be collected about three facets of each business activity. These facets are A.activity of interest, the process, and the people who participate. B.activity of interest, the resource(s), and the process. C.the resource(s), the benefits, and the process. D.activity of interest, the resource(s), and the people who participate.

D.activity of interest, the resource(s), and the people who participate.

Once business activity data have been entered into the system, they must be processed to keep the databases current. Which of the following are not one of the four different types of data processing activities? A.Deleting data records no longer needed B.Updating previously stored data C.Reading, retrieving, or viewing existing data D.Creating new data records E.Controlling access to the data records

E.Controlling access to the data records