ACC 324- Chapter 2 Quiz

Which of the following is most likely to be a general ledger control account? a. accounts receivable b. petty cash c. prepaid rent d. retained earnings

a. accounts receivable

Which of the following is NOT a step in the data processing cycle? a. data collection b. data input c. data storage d. data processing

a. data collection

Identify the four parts of the transaction processing cycle. a. data input, data storage, data processing, information output b. data input, data recall, data transmission, information output c. data input, data recall, data processing, information output d. data input, data recall, data transmission, data storage

a. data input, data storage, data processing, information output

Which step below is not considered to be part of the data processing cycle? a. feedback from external sources b. data processing c. data storage d. data input

a. feedback from external sources

A delivery of inventory from a vendor, with whom a credit line is already established, would be initially recorded in which type of accounting record and as part of what transaction cycle? a. purchases journal; expenditure cycle b. general ledger; expenditure cycle c. cash disbursements journal; production cycle d. general journal; expenditure cycle

a. purchases journal; expenditure cycle

Common source documents for the revenue cycle include all of the following except a. receiving report. b. credit memo. c. delivery ticket. d. sales order.

a. receiving report.

Many small businesses choose to outsource their payroll activities to firms that specialize in providing payroll services. Dolores Yu operates a payroll processing business in Calabasas, California. When she sends bills out to her clients, her work is part of her firm's a. revenue cycle b. expenditure cycle c. financing cycle d. production cycle

a. revenue cycle

The Cape Fear Rocket Club heads out to the dunes of Cape Fear, Oregon every August to pierce the sky with their fiery projectiles. An enterprising seller of t-shirts has devised a series of designs that capture the spirit of the event in silk-screened splendor. His employees can be found on many of the major intersections selling his products out of the backs of pickup trucks. What is the best way for this business to ensure that sales data entry is efficient and accurate? a. sequentially numbered forms b. well-designed paper forms c. turnaround documents d. source data automation

a. sequentially numbered forms

Records of company data sent to an external party and then returned to the system as input are called ________? a. turnaround documents b. source & data automation documents c. source document d. external input documents

a. turnaround documents

Which of the following statements regarding special journals is not true? a. Special journals provide a specialized format for recording similar transactions. b. The balances in a special journal must always reconcile to the general ledger. c. Special journals are periodically summarized and posted to the general ledger. d. Special journals are used to record large numbers of repetitive transactions.

b. The balances in a special journal must always reconcile to the general ledger.

John Pablo works in the accounting department of a multinational manufacturing company. His job includes updating accounts payable based on purchase orders and checks. His responsibilities are part of the company's a. revenue cycle b. expenditure cycle c. financing cycle d. production cycle

b. expenditure cycle

Which of the following would contain the total cost value of all inventory owned by an organization? a. source document b. general ledger c. cash budget d. N/A

b. general ledger

Recording and processing information about a transaction at the time it takes place is referred to as which of the following? a. batch processing b. online, real-time processing c. captured transactions processing d. chart of accounts processing

b. online, real-time processing

The data processing method used by FedEx to track packages is an example of a. real-time batch processing. b. real-time processing. c. batch processing. d. online batch processing.

b. real-time processing.

All of the information (name, CPA, major, etc..) about a particular student is stored in the same _______ a. file b. record c. attribute d. field

b. record

Issuing a purchase order is part of which transaction cycle? a. the production cycle b. the expenditure cycle c. the revenue cycle d. the human resources cycle

b. the expenditure cycle

The general ledger account that corresponds to a subsidiary ledger account is known as a(n) a. dependent account. b. credit account. c. control account. d. attribute account.

c. control account.

Which of the following LEAST likely to be a specialized journal? a. sales journal b. cash receipts journal c. prepaid insurance journal d. cash disbursements journal

c. prepaid insurance journal

Common source documents for the revenue cycle include all of the following except a. sales order b. delivery ticket c. receiving report d. credit memo

c. receiving report

Which of the following is most likely to be used in the expenditure cycle? a. sales orders b. credit memo c. receiving report d. job time ticket

c. receiving report

A subsidiary ledger a. is used to record infrequent or non-routine transactions. b. simplifies the process of recording large numbers of repetitive transactions. c. records all detailed data for any general ledger account that has individual sub-accounts. d. contains summary-level data for every account of the organization.

c. records all detailed data for any general ledger account that has individual sub-accounts.

The general ledger a. only includes balance sheet accounts. b. is the initial place to record general expenses. c. summarizes the transactions in journals. d. is posted in total to the general journal.

c. summarizes the transactions in journals.

A general journal a. contains summary-level data for every account of the organization. b. records all detailed data for any general ledger account that has individual sub-accounts. c. would be used to record monthly depreciation entries. d. simplifies the process of recording large numbers of repetitive transactions.

c. would be used to record monthly depreciation entries.

Source documents generally help to improve accuracy in transaction processing because a. they provide directions and steps for completing the form. b. they specify which information to collect. c. logically related data can be grouped in the same area of the document. d. All of the above are correct.

d. All of the above are correct.

Identify the statement below that is not true with regards to the accounts receivable subsidiary ledger. a. The subsidiary ledgers play an important role in maintaining the accuracy of the data stored in the AIS. b. The total of the subsidiary ledgers must equal the control account. c. Every credit sale is entered individually into the subsidiary ledger. d. Debits and credits in the subsidiary ledger must always equal.

d. Debits and credits in the subsidiary ledger must always equal.

In an ERP system, the module used to record marketing data is called a. marketing. b. customer service. c. advertising. d. customer relationship management.

d. customer relationship management.

Which is NOT an advantage of an ERP system? a. better access control b. standardization of procedures & reports c. size order d. simplicity and reduced costs

d. simplicity and reduced costs

The efficiency of recording numerous business transactions can be best improved by the use of a. subsidiary ledgers. b. pre-numbered source documents. c. posting references. d. specialized journals.

d. specialized journals.

How does the chart of account list general ledger accounts? a. alphabetical journal b. chronological journal c. size order d. the order in which they appear in the financial statements

d. the order in which they appear in the financial statements

In Petaluma, California, electric power is provided to consumers by Pacific Power. Each month Pacific Power mails bills to 86,000 households and then processes payments as they are received. What is the best way for this business to ensure that payment data entry is efficient and accurate? a. source data automation b. sequentially numbered bills c. well-designed paper forms d. turnaround documents

d. turnaround documents