Review Quizes

When designing an accounting database, where should you begin?

With the outcome in mind

(Picture) Which of the relationships below is a many-to-many relationship?

PURCHASE ORDERS, ITEMS

An event typically not associated with the employee module of a baseline accounting system is

Pay bills

Field Check Sign Check Limit Check Range Check Size Check Completeness Check Validity check Reasonableness test

-Characters in a field are of proper type -Data in a field has appropriate sign (positive/negative) -Tests numerical amount against a fixed value -Tests numerical amount against lower and upper limits -Input data fits into the field -Verifies that all required data is entered -Compares data from transaction file to that of master file to verify existence -Correctness of logical relationship between two data items

Rows Columns Software

-Records -Fields -Applications

General Ledger Account Transactions Time Worked Employee Purchase Order Cash Receipts Customer

-Financial Cycle -Financial Cycle -Payroll Cycle -Payroll Cycle -Purchasing Cycle -Sales Cycle -Sales Cycle

Business processes IT governance IT processes and services

-IT Governance -Business Processes -IT processes and services

data element unit element context element identifier element period element entity element

-Numeric or nonnumeric facts -Defines the unit of measure, such as U.S. dollars -Explains the context in which the data appears -Unique identifier, such as account number -Defines the time period -Defines the company

Purchasing Cycle Payroll Cycle Sales Cycle

-Supply Chain Management -Operations/Production System -Customer Relationship Management

-XBRL taxonomy -Schema -Data elements, Context elements, Unit elements, Period elements, Entity elements, Identifier elements -Linkbases -Definition links, Calculation links, Presentation links, Reference links, Label links -Database -Data -XBRL instance document -Metadata

1 2 3 4 5 6 7 8 9

What is a major advantage of a database management system (DBMS) over a file-oriented (application) transaction processing system?

A DBMS helps to avoid data redundancy and data inconsistency

A.primary key B. OLAP cubes C. business intelligence D. field E. operational database F. relational database G. record

A. A unique identifier for each record. B. An online application that permits users to view data in a multidimensional way C. Data analytics and predictive modeling used to gain insights from data to improve the quality of business decisions D. A piece of information. E. A database that stores transactions related to business operations. F. A collection of related database tables G. collection of related database fields.

A. opportunity B. detect C. fraudulent financial reporting D. corruption E. correct F. prevent G. motive [pressure] H. misappropriation of assets

A. Access to the asset or financial statements in order to carry out the fraud B. Controls designed to discover fraud when it occurs and alert management C. Includes misstating financial statements to meet earnings targets D. Includes illegal acts such as bribery, kickbacks, money laundering, and rigging bids E. Investigate and take corrective action to remedy harm caused F. Controls designed to prevent or reduce the likelihood of a fraud risk occurring G. Reason for committing the fraud, such as financial difficulties H. Involves theft of assets for personal gain

A. Schema B.Linkbase C. Taxonomy D. Elements E. Instance document

A. Defines which elements are related to a particular taxonomy B. Defines relationships between data C. A dictionary that defines the XBRL tags used for specific data items D. Relates to data and metadata E. Identifies the specific amounts for a taxonomy at one instance

A.Entity Integrity B.Primary Key Integrity C.Domain Integrity D.Referential Integrity

A. Each record in the database must have a unique identifier (i.e., a unique primary key). No two records in the database table can have the same primary key value. B. The primary key value cannot be null (empty). Each record must have a value for the primary key field. C. The field values must be from a predefined domain. For example, the Date field must have a date and not any other values D. Data referenced and stored in related tables must be consistent across the database. For example, a customer address should be the same in any table in which it is referenced. Referential integrity is improved when the customer address is stored in one location only

A. Supply Chain Management (SCM) B.Operations/Production System (OPS) C.Customer Relationship Management (CRM)

A. Purchasing Items from Vendors B. Tracking and Coordinating Operations to Make the Service, Product, or Experience C. Marketing and Sales Activities

A. database administrator B.database integrity C. data warehouse D.operational database E.normalization F.composite primary key G.intersection table

A. Responsible for managing the enterprise's databases B.Ensures that the database contains accurate, valid data C. Stores data from a variety of sources and is used for business intelligence D. Databases used to store data related to business operations and transactions E. A process for removing database anomalies or problems F. Used when more than one field is required to uniquely identify a record G. Placed at the junction of two tables to eliminate a many-to-many relationship

A. Strategic objectives B. Operational objectives C. Reporting objectives D. Compliance objectives

A. These objectives relate to goals that support the entity's mission. B. These objectives relate to the effective and efficient use of the entity's resources. C. These objectives relate to the reliability of the enterprise's reporting, both internal and external D. These objectives relate to the entity's compliance with all applicable laws and regulations.

Control activities-A Event identification-B Information and communication-C Monitoring-D Objective setting-E Internal Environment-F

A. This is comprised of policies and procedures established and implemented to ensure risk responses are effective. B. This involves identifying occurrences that affect an enterprise's ability to attain its objectives. C. This involves ensuring relevant data is captured and communicated effectively throughout the organization to appropriate individuals in a timely manner. D. This involves watched evaluation and feedback that permits modifications as needed. E. This ensures that the enterprise has a process for setting goals that are consistent with the entity's mission and risk appetite. F. This involves the risk management philosophy of the enterprise, including the tone set by top management.

A. value chain B. sales cycle C. transaction cycles D. integrated enterprise system e. payroll cycle F. business processes G. enterprise system H.purchasing cycle I. baseline accounting system

A.An organizing framework for business processes, beginning with vendors and ending with customers B. Exchanges or transactions between an enterprise and its customers C. Accounting transactions related to specific business processes D. Shares data across functional areas within the enterprise E. Transactions with employees F. Related activities performed by an enterprise to create value by transforming input into output G. A system that supports business activities throughout the enterprise, including inputs, processing, and outputs H. Transactions related to purchasing items from vendors I. A model that provides an enterprise-wide view of the firm's accounting system

A.Payroll Cycle B.Sales Cycle C.Financial Cycle D. Purchasing Cycle

A.Employees Module B.Customers Module C.Financial Module D.Vendors Module

A.database forms B.database reports C.database table D.database fields E. database queries F. database records G. database

A.Onscreen interface used for entering and updating data B.used to view output of the accounting system C.A collection of related records with a unique name D.Pieces of information about events, people, or objects E.Used to search the database and retrieve data from --one or more database tables F. A collection of related fields G. A collection of related tables

A.Organizational structure B.Objectives C.Component

B.-Compliance B.-Operations B.-Reporting C.-Control environment C.-Risk Assessment C.-Control Activities C.-Information and communication C.-monitoring Activities A.-Legal entities A.-Operating units A.-Division A.-Function

A. Segregation of duties B. Physical controls C. Reconcile assets to accounts

C.-Take a physical inventory count and compare it to the inventory balance in the accounting system. A.- The cashier does not have access to the accounting records. B.-Security cameras A.- The sales clerks in a retail store do not have access to the accounting system. C.- Bank reconciliations B.- Key cards to access offices

When data is "hard keyed" into the program, which of the following is true?

Changing the data is costly and may take days or weeks

An accounting system spans which of the following Value Chain components?

Correct -All the above except C. Purchase Customers Support

A. Purchasing cycle B. Sales cycle C. Payroll cycle

Create purchase orders-A Create invoices-B Make deposits-B Calculate payroll-C Receive customer payments-B Pay bills-A Enter time-C Enter bills-A Receive items-A Pay employees-C

A. Banking module B. Financial module C. Vendors module D. Reports module E. Customers module F. Employees module

Create purchase orders-C Adjusting entries-B Make deposits-A Calculate payroll-F Receive customer payments-A Pay bills-A Tax reports-D Enter time-F Enter bills-C Create invoices-E Pay employees-A Receive items-C Sustainability reports-D Pay payroll liabilities-A Correcting entries-B Management reports-D Closing -B Financial reports-D

Acme Sales Narrative Acme sells widgets online to other businesses. Acme customers place an online order. Acme processes the customer order by verifying with the accounting department that the customer's credit is in good standing with the company (the customer's account is paid on time). The items are verified for availability. The shipment is processed and sent to the customer's warehouse. An invoice is generated from the sales information and emailed to the customer. The corresponding database tables are updated. Who are the agents in the Acme Sales Narrative?

Customer, Accounting Department, Warehouse

A. Risk Assessment B. Control Activities C. Monitoring Activities D. Control Environment E. Information and Communication

D.-The organization* demonstrates a commitment to integrity and ethical values. *For purposes of the Framework, the term "organization" is used to collectively capture the board, management, and other personnel, as reflected in the definition of internal control.-D D.-The board of directors demonstrates independence from management and exercises oversight of the development and performance of internal control. D.-Management establishes, with board oversight, structures, reporting lines, and appropriate authorities and responsibilities in the pursuit of objectives. D.-The organization demonstrates a commitment to attract, develop, and retain competent individuals in alignment with objectives. D.-The organization holds individuals accountable for their internal control responsibilities in the pursuit of objectives A.-The organization specifies objectives with sufficient clarity to enable the identification and assessment of risks relating to objectives. A.-The organization identifies risks to the achievement of its objectives across the entity and analyzes risks as a basis for determining how the risks should be managed. A.-The organization considers the potential for fraud in assessing risks to the achievement of objectives. A.-The organization identifies and assesses changes that could significantly impact the system of internal control. B.-The organization selects and develops control activities that contribute to the mitigation of risks to the achievement of objectives to acceptable levels. B.-The organization selects and develops general control activities over technology to support the achievement of objectives. B.-The organization deploys control activities through policies that establish what is expected and procedures that put policies into action. E.-The organization obtains or generates and uses relevant, quality information to support the functioning of internal control. E.- The organization internally communicates information, including objectives and responsibilities for internal control, necessary to support the functioning of internal control. E.-The organization communicates with external parties regarding matters affecting the functioning of internal control. C.- The organization selects, develops, and performs ongoing and/or separate evaluations to ascertain whether the components of internal control are present and functioning. C.-The organization evaluates and communicates internal control deficiencies in a timely manner to those parties responsible for taking corrective action, including senior management and the board of directors, as appropriate.

Data validation

Ensures only valid data is entered

Which event is part of the Purchasing Cycle?

Enter Bill

Many accounting software interfaces use a graphical user interface (GUI) to

Increase the ease of use

(Picture) By using an intersection table, which field can be removed from the PURCHASE ORDERS table?

Item No

Which event is part of the Sales Cycle?

Make Deposit

An event typically associated with the customer module of a baseline accounting system is

Make deposits

Which statement is true regarding a one-to-many relationship?

One-to-many relationships are the most common type of relationships in a relational database.

ll the following statements about intersection tables are true except?

Only one field in an intersect table is needed to uniquely identify a record.

Acme Process Payroll Liabilities Acme has an automated process for paying the payroll liabilities. On the appropriate date, the accounting system automatically initiates the process payroll liabilities event. Data from the Employee and Payroll Liabilities Account database tables are used in this process. At the completion of this process, the Cash Payments Account and Cash Account database tables are updated and an email is sent to the accountant. The accountant authorizes the payroll liabilities. The Employee, Payroll Liabilities Account, Cash Payments Account, and Cash Account database tables are updated. Payment is sent to the appropriate government entities. What are the events in the Acme Process Payroll Liabilities narrative?

Process Payroll Liabilities and Authorize Payroll Liabilities

An event typically associated with the vendor module of a baseline accounting system is

Receive inventory

An event typically not associated with the financial module of a baseline accounting system is

Record deposits

Normalization is an optimization process that minimizes which of the following?

Redundancy

When depositing a customer payment, which table is usually not used?

Sales Order table

In an accounting system database, which field belongs in a table containing customer information?

Street Address

Which of the following data is shared between a Supply Chain Management system and an accounting system?

The current inventory levels of the raw materials

(Picture) The following statements regarding the Vendor Orders table above are true except

The database does not break the referential integrity rule.

An advantage of customizing a baseline accounting system is

The timeline for developing a system can be accelerated, significantly reducing the time required from start to finish

(Picture) Which field in the PURCHASE ORDERS table is a foreign key?

Vendor ID

Which field below would not be stored in an order table?

Vendor ID

A. PURCHASE ORDER table B. EMPLOYEE table C. PURCHASE ORDER LINE table D. SALES ORDER table E. SALES ORDER LINE table F. CUSTOMER table G. ACCOUNTS table H. VENDOR table

Vendor address-H Vendor number-H Customer name-F Customer number-F Employee address-B Account number-G Account type-G Sales order number-D Sales order date-D Sales order total-D Item quantity sold- E Purchase order date-A Purchase order number-A Purchase order total-A Item quantity purchased-C

(Picture) To add a vendor to the Vendor Orders table, the following information is required except

Vendor name

An event typically associated with the banking module of a baseline accounting system is

Write checks

Which system is not part of the revenue cycle?

cash disbursements

Information is:

organized, meaningful, and useful outputs of an information system

Which system is not part of the expenditure cycle?

production planning/control

In contrast to a real-time transaction processing system, in a batch transaction processing system

there is a lag between the time when the economic event occurs and the financial records are updated