A5324_C6
Batch processing a. Allows users to inquire about groups of information contained in the system. b. Is not used by most businesses because it reduces the audit trail. c. Can only be performed on a centralized basis. d. Accumulates transaction records into groups for processing against the master file on a delayed basis.
Accumulates transaction records into groups for processing against the master file on a delayed basis.
Which statement is not true? a. Journal vouchers offer a degree of control against unauthorized general ledger entries. b. Journal vouchers are not used to make adjusting entries and closing entries in the general ledger. c. A journal voucher can be used to represent summaries of similar transactions or a single unique transaction. d. The journal voucher is the only source of input into the general ledger.
Journal vouchers are not used to make adjusting entries and closing entries in the general ledger.
Which of the following statements is true? a. Journal vouchers summarizing transaction activity flow from various operational departments into the GLS, where they are independently reconciled and posted to the journal voucher history file. b. Journal vouchers summarizing transaction activity flow from various operational departments into the GLS, where they are independently reconciled and posted to the general ledger accounts. c. Journal vouchers detailing transaction activity flow from various operational departments into the GLS, where they are independently reconciled and posted to the journal voucher history file. d. Journal vouchers summarizing transaction activity flow from the accounting department into the GLS, where they are independently reconciled and posted to the general ledger accounts.
Journal vouchers summarizing transaction activity flow from various operational departments into the GLS, where they are independently reconciled and posted to the general ledger accounts.
Which of the following statements is NOT true? a. Mnemonic coding requires the user to memorize codes. b. Sorting records that are coded alphabetically tends to be more difficult for users than sorting numeric sequences. c. Sequential codes carry no information con- tent beyond their order in the sequence. d. Mnemonic codes are limited in their ability to represent items within a class.
Mnemonic coding requires the user to memorize codes.
Which of the following statements best describes a computer-based GL/FRS? a. A batch system with direct access files recreates the entire database each time the file is updated. b. Batch processing is typically not appropriate for transaction processing of GLS. c. The sequential file approach is an inefficient use of technology. d. Most firms derive little additional benefit from a real-time FRS.
Most firms derive little additional benefit from a real-time FRS.
What type of computer system is characterized by data that are assembled from more than one location and records that are updated immediately? a. Midrange computer systems. b. Personal computer systems. c. Online, real-time systems. d. Batch processing systems.
Online, real-time systems.
A business uses magnetic disks to store accounts receivable information. What data file concepts underlie the ability to answer customer inquiries as they are received? a. Primary keys, indexes, and pointers. b. Spreadsheets. c. Batch processing. d. Sequential storage.
Primary keys, indexes, and pointers.
Which of the following is true of the relationship between subsidiary ledgers and general ledger accounts? a. The relationship between the two provides an audit trail from the financial statements to the source documents b. All general ledger accounts have subsidiaries. c. The total of subsidiary ledger accounts usually exceeds the total in the related general ledger account. d. The two contain different and unrelated data
The relationship between the two provides an audit trail from the financial statements to the source documents
Which of the following is NOT true of turnaround documents? a. They are documents used by internal parties only. b. They are both input and output documents. c. They may reduce the number of errors made by external parties. d. They are commonly used by utility companies (gas, power, water).
They are documents used by internal parties only.
Which of the following is NOT true of turnaround documents? a. They are documents used by internal parties only. b. They may reduce the number of errors made by external parties. c. They are commonly used by utility companies (gas, power, water). d. They are both input and output documents.
They are documents used by internal parties only.
In a manual system, records of current activity are posted from a journal to a ledger. In a computer system, current records from a(n) a. Master file are updated to a year-to-date file. b. Table file are updated to a transaction file. c. Index file are updated to a master file. d. Transaction file are updated to a master file.
Transaction file are updated to a master file.
Which of the following is NOT a true statement? a. Transactions are recorded on source documents and are posted to journals. b. Transactions are recorded in journals and are posted to ledgers. c. Frequent transactions are recorded in special journals. d. Infrequent transactions are recorded in the general journal
Transactions are recorded on source documents and are posted to journals.
Which of the following features is least likely to be found in a real-time application? a. Preformatted screens. b. Turnaround documents. c. Automatic error correction. d. User manuals.
Turnaround documents.
Which of the following is a false statement about XBRL? a. XBRL facilitates the automatic exchange of information. b. XBRL is an accounting specific markup language. c. XBRL provides documents that can be readily imported into databases. d. XBRL is used primarily in the U.S.
XBRL is used primarily in the U.S.
Which of the following is an archive file? a. a sales journal b. an accounts payable subsidiary ledger c. a cash receipts file d. a file of accounts receivable that have been written off
a file of accounts receivable that have been written off
When a firm wants its coding system to convey meaning without reference to any other document, it would choose a. a mnemonic code b. an alphabetic code c. a group code d. a block code
a mnemonic code
Which document is not a type of source document? a. an employee time card b. a sales order c. a sales return receipt d. a paycheck
a paycheck
A file that stores data used as a standard when processing transactions is a. a reference file b. a master file c. an archive file d. a transaction file
a reference file
The order of the entries made in the ledger is by a. date b. account number c. transaction number d. user
account number
Operational inefficiencies occur because a. accounts common to many concurrent transactions need to be updated in real time. b. accounts both common and unique to many concurrent transactions need to be updated in real time. c. accounts unique to many concurrent transactions need to be updated in real time. d. none of these is correct
accounts common to many concurrent transactions need to be updated in real time.
Financial statements are prepared from the a. trial balance b. general journal c. adjusted trial balance d. general ledger
adjusted trial balance
Which of the following is NOT an advantage of real-time processing files over batch processing? a. all are advantages b. improved customer service c. reduction of inventory stocks d. shorter transaction processing time
all are advantages
Entries into the General Ledger System (GLS) can be made using information from a. all of the above b. the general journal c. a journal voucher which represents a summary of similar transactions d. a journal voucher which represents a single, unusual transaction
all of the above
A journal is used in manual accounting environments. What file is comparable to a journal in a computerized environment? a. archive file b. reference file c. master file d. transaction file
archive file
Which method of processing does not use the destructive update approach? a. all of the above use the destructive update approach b. real-time processing c. batch processing using direct access files d. batch processing using sequential files
batch processing using sequential files
A chart of accounts would best be coded using a(n) ________________coding scheme. a. block b. alphabetic c. sequential d. mnemonic
block
The coding scheme most appropriate for a chart of accounts is a. sequential code b. secret code c. group code d. mnemonic code e. block code
block code
When determining the batch size, which consideration is the least important? a. complying with legal mandates b. providing control over the transaction process c. balancing the trade off between batch size and error detection d. achieving economies by grouping together large numbers of transactions
complying with legal mandates
Which system produces information used for inventory valuation, budgeting, cost control, performance reporting, and make-buy decisions? a. sales order processing b. cost accounting c. purchases/accounts payable d. cash disbursements
cost accounting
A documentation tool used to represent the logical elements of a system is a(n) a. system flowchart. b. programming flowchart. c. entity relationship diagram d. data flow diagram
data flow diagram
Which type of graphical documentation represents systems at different levels of detail? a. document flowchart b. program flowchart c. smurf blueprint d. data flow diagram e. system flowchart
data flow diagram
Sequential file processing will not permit a. data to be edited on a separate computer run b. data to be edited in a offline mode c. the use of a database structure d. data to be edited on a real-time basis e. batch processing to be initiated from a terminal
data to be edited on a real-time basis
The order of the entries made in the general journal is by a. account number b. user c. customer number d. date
date
Data flow diagrams a. depict logical tasks that are being performed, but not who is performing them b. describe in detail the logic of the process c. represent relationships between key elements of the computer system d. illustrate the relationship between processes, and the documents that flow between them and trigger activities
depict logical tasks that are being performed, but not who is performing them
In general, a special journal would not be used to record a. sales b. purchases c. depreciation d. cash disbursements
depreciation
The characteristics that distinguish between batch and real-time systems include all of the following except a. resources used b. efficiency of processing c. file format d. time frame
file format
Which statement is not correct? a. financial statements are prepared based on the unadjusted trial balance b. the unadjusted trial balance reports control account balances but omits subsidiary ledger detail c. one purpose of preparing the unadjusted trial balance is to ensure that debits equal credits d. the post-closing trial balance reports the ending balance of each account in the general ledger
financial statements are prepared based on the unadjusted trial balance
Which accounting application is best suited to batch processing? a. updating inventory reductions to the subsidiary ledger b. general ledger c. credit checking d. sales order processing
general ledger
Which file has as its primary purpose to provide historical financial data for comparative financial reports? a. general ledger history file b. journal voucher history file c. responsibility file d. budget master file
general ledger history file
A common use for sequential coding is a. identifying inventory items b. identifying fixed assets c. creating the chart of accounts d. identifying documents
identifying documents
Which step is not found in batch processing using sequential files? a. sort runs b. immediate feedback of data entry errors c. edit runs d. control totals
immediate feedback of data entry errors
The most important purpose of a turnaround document is to a. provide an audit trail for the external auditor b. provide distracting busywork for auditors c. inform a customer of the outstanding amount payable d. serve as a source document e. inform the bank of electronic funds deposits
inform the bank of electronic funds deposits
An XBRL taxonomy: a. is a classification scheme. b. is a tag stored in each database record. c. none of these is true. d. is the final product (report). e. is the document format used to produce web pages.
is a classification scheme.
Which statement is not correct? The general ledger master file a. is an output of the Financial Reporting System (FRS) b. contains a record for control accounts c. supplies information for management decision making d. is based on the firm's chart of account
is an output of the Financial Reporting System (FRS)
Risk exposures in the General Ledger and Financial Reporting Systems include all of the following except a. unauthorized access to the general ledger b. loss of physical assets c. loss of the audit trail d. general ledger account out of balance with the subsidiary account
loss of physical assets
What account appears on the post closing trial balance? a. income summary b. rent expense c. machinery d. interest income
machinery
The production subsystem of eh conversion cycle includes all of the following EXCEPT a. release of raw materials into production b. made or buy decisions on component parts c. determining raw materials requirements d. scheduling of the goods to be produced
made or buy decisions on component parts
With a limited work force and a desire to maintain strong internal control, which combination of duties performed by a single individual presents the least risk exposure? a. preparing the accounts payable journal voucher and recording it in the general ledger b. maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs c. maintaining the inventory ledger and recording the inventory journal voucher in the general ledger d. recording the inventory journal voucher in the general ledger and maintaining custody of inventory
maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs
Accounting application a. turn-around document b. master document c. product document d. source document
master document
All of the following can provide evidence of an economic event except a. master document b. source document c. product document d. turn-around document
master document
Subsidiary ledgers are used in manual accounting environments. What file is comparable to a subsidiary ledger in a computerized environment? a. transaction file b. reference file c. archive file d. master file
master file
Real-time processing would be most beneficial in handling a firm's a. retained earning information b. fixed asset records c. merchandise inventory d. depreciation records
merchandise inventory
A coding scheme in the form of acronyms and other combinations that convey meaning is a(n) a. sequential code. b. mnemonic code. c. block code. d. alphabetic code.
mnemonic code.
Real-time systems might be appropriate for all of the following EXCEPT a. payroll. b. all of these applications typically utilize real-time processing. c. airline reservations. d. air traffic control systems e. point-of-sale transactions.
payroll
The type of transaction most suitable for batch processing is a. adjustments to perpetual inventory b. payroll processing c. airline reservations d. credit authorization
payroll processing
Both the revenue and the expenditure cycle can be viewed as having two key parts. These are a. input and output b. batch and real-time c. physical and financial d. manual and computerized
physical and financial
In contrast to a batch processing system, in a real-time system a. a lag occurs between the time of the economic event and when the transaction is recorded b. a lesser resource commitment per unit of output is required c. processing takes place when the economic event occurs d. relatively fewer hardware, programming, and training resources are required
processing takes place when the economic event occurs
Which system is not part of the expenditure cycle? a. purchases/accounts payable b. cash disbursements c. payroll d. production planning/control
production planning/control
Sequential storage means a. access is achieved through an index b. reading record 100 requires first reading records 1 to 99 c. access is direct d. data is stored on tape
reading record 100 requires first reading records 1 to 99
Which steps in the Financial Accounting Process are in the correct sequence? a. record the transaction, prepare the unadjusted trial balance, record adjusting journal entries, record closing entries, prepare financial statements b. record the transaction, post to the ledger, prepare the adjusted trial balance, enter adjusting entries, prepare financial statements c. record the transaction, post to the ledger, record adjusting entries, prepare the unadjusted trial balance, prepare financial statements d. record the transaction, post to the ledger, prepare the adjusted trial balance, prepare financial statements, record closing entries
record the transaction, post to the ledger, prepare the adjusted trial balance, prepare financial statements, record closing entries
The type of transaction most suitable for real-time processing is a. adjusting prepaid insurance b. recording a sale on account c. recording interest earned on long-term bonds d. recording fixed asset purchases
recording a sale on account
In a computerized environment, a list of authorized suppliers would be found in the a. reference file b. archive file c. transaction file d. master file
reference file
Which of the following is a turn-around document? a. sales return verification b. payroll check c. remittance advice d. sales order e. purchase order
remittance advice
A business uses magnetic disks to store accounts receivable information. What data file concepts underlie the ability to answer customer inquiries as they are received? a. represent relationships between key elements of both manual and computer systems. b. depict logical tasks that are being performed, but not who is performing them. c. illustrate the relationship between database entities in systems. d. describe the internal logic of computer applications in systems.
represent relationships between key elements of both manual and computer systems.
System flowcharts a. depict logical tasks that are being performed, but not who is performing them. b. represent relationships between key elements of both manual and computer systems. c. describe the internal logic of computer applications in systems. d. illustrate the relationship between database entities in systems.
represent relationships between key elements of both manual and computer systems.
Which account is least likely to have a subsidiary ledger? a. inventory b. fixed assets c. sales d. accounts receivable
sales
Which accounting application is least suited to batch processing? a. vendor payments b. payroll c. general ledger d. sales order processing
sales order processing
The most important purpose of a turnaround document is to a. inform the bank of electronic funds deposits b. provide distracting busywork for auditors c. provide an audit trail for the external auditor d. inform a customer of the outstanding amount payable e. serve as a source document
serve as a source document
A documentation tool that depicts the physical flow of information relating to a particular transactions through an organization is a a. work distribution analysis b. systems survey c. system flowchart d. decision table e. program flowchart
system flowchart
What type of data is found in the general ledger master file? a. the balance of each account in the chart of accounts b. subsidiary details supporting a control account c. budget records for each account in the chart of accounts d. a chronological record of all transactions
the balance of each account in the chart of accounts
The most important advantage of an alphabetic code is that a. sorting is simplified b. the capacity to represent items is increased c. meaning is readily conveyed to users d. missing documents can be identified
the capacity to represent items is increased
Which situation indicates an internal control risk in the General Ledger/Financial Reporting Systems (GL/FRS)? a. the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger b. the cash receipts journal vouchers are prenumbered and stored in a locked safe c. the cash receipts journal voucher is approved by the Treasurer d. the employee who maintains the cash journal computes depreciation expense
the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger
In contrast to a real-time system, in a batch processing system a. relatively more resources are required b. a greater resource commitment per unit of output is required c. processing takes place when the economic event occurs d. there is a lag between the time when the economic event occurs and the financial records are updated
there is a lag between the time when the economic event occurs and the financial records are updated
Sequential access means that a. to read any record on the file, all of the pre-ceding records must first be read. b. data are stored on magnetic tape. c. each record can be accessed in the same amount of time. d. the address of the location of data is found through the use of either an algorithm or an index.
to read any record on the file, all of the pre-ceding records must first be read.
Which of the following files is a temporary file? a. transaction file b. master file c. reference file d. none of the above
transaction file
Which of the following is NOT a potential exposure of the FRS? a. general ledger accounts that are out of balance with subsidiary accounts b. unauthorized access to the check register c. a defective audit trail d. unauthorized access to the general ledger
unauthorized access to the check register
Which task should the general ledger clerk perform? a. update the general ledger b. prepare journal vouchers c. have record-keeping responsibility for special journals of subsidiary ledgers d. have custody of physical assets
update the general ledger
Operational efficiencies can be improved by a. updating accounts both common and unique to many concurrent transactions in batch mode. b. updating accounts both common and unique to many concurrent transactions in real time. c. none of these is correct d. updating accounts unique to many concurrent transactions in real time and updating common accounts in batch mode.
updating accounts unique to many concurrent transactions in real time and updating common accounts in batch mode.
Which report is not an output of the Financial Reporting System (FRS)? a. tax return b. variance analysis report c. comparative balance sheet d. statement of cash flows
variance analysis report
XBRL a. is a low-level encryption scheme used to secure transmissions in higher-level (HTTP) format. b. was designed to provide the financial community with a standardized method for preparing, publishing, and automatically exchanging financial information c. is the basic protocol that permits communication between Internet sites. d. is the document format used to produce Web pages. e. controls Web browsers that access the Web.
was designed to provide the financial community with a standardized method for preparing, publishing, and automatically exchanging financial information
