AIS Final
Experts estimate that, on average, the costs associated with replacing an employee are about ________ the employee's annual salary. 0.5 time 1 time 1.5 times 2 times
1.5
Which type of payroll report contains information such as the employees' gross pay, payroll deductions, and net pay in a multicolumn format? Payroll register. Deduction register. Employee earnings statement. Federal W-4 form.
Payroll register.
A way to incorporate the advantages of Electronic Data Interchange with the Electronic Funds Transfer is -an electronic lockbox. -Financial Electronic Data Interchange. -to use procurement cards. -e-commerce
Financial Electronic Data Interchange.
The act of tracing any transaction from its original source document (whether paper or electronic) to the journal entry that updated the general ledger and to any report or other document using that data is: -Provides a means to verify that all transactions are recorded correctly -Provides a means to verify that all authorized transactions were recorded correctly -Provides a means to verify that all transactions were authorized
Provides a means to verify that all authorized transactions were recorded correctly
________ is not a basic activity of the revenue cycle. Receiving Sales order entry Shipping Billing
Receiving
Tasks performed in the HRM/payroll cycle that are performed repeatedly (for as long as the employee works at the company) include: Training Recruiting Training and Compensation Recruiting and Compensation
Training and Compensation
A report that lists the balances for all general ledger accounts is called: Audit Trail Trial Balance Journal entry control report
Trial Balance
Rebuttal testimony occurs during the: Discovery phase of the case. Trial stage of the case. Initial pleadings in the case. Closing arguments in the case.
Trial stage of the case.
Daubert requirements: Are used exclusively in state courts. Were created to ensure quality expert testimony in federal courts. Relate to scientific experts but not to financial experts in cases. Have little impact on cases.
Were created to ensure quality expert testimony in federal courts.
Identify the role below that accountants can play in the production cycle. participate in product design perform cost analysis help an organization choose an inventory control system all of these
all of these
Which data processing integrity controls can mitigate payroll errors? Payroll clearing account Cross-footing payroll register. Hash totals of employee numbers. all of these
all of these
Identify the year the sec will require american companies to switch from us based GAAp to ifrs as the basis for preparing financial statements -2016 -at this point it is unclearwhen the sec will require american companiesto implement IFRS, though the sec remains commited to requiring us companies use IFRS at some point -2018 -2020
at this point it is unclearwhen the sec will require american companiesto implement IFRS, though the sec remains commited to requiring us companies use IFRS at some point
which type of graph is the most commonly used to display trends in financial data -pie chart -stochastic chart -bar chart
bar chart
How does an MRP inventory system reduce inventory levels? -by reducing uncertainty regarding when materials are needed -by computing exact costs of purchasing & carrying inventory -by receiving exact quantities of materials when needed -none of these
by reducing uncertainty regarding when materials are needed
How does an MRP inventory system reduce inventory levels? by reducing uncertainty regarding when materials are needed by computing exact costs of purchasing & carrying inventory by receiving exact quantities of materials when needed none of these
by reducing uncertainty regarding when materials are needed
the ____ is the managerial report that shows planned cash inflows and outflows for major investments or acquisitions : -journal voucher list -statement of cash flows -operating budget -capital expenditure budget
capital expenditure budget
XBRL stands for -external business reporting ledgers -external business reporting language -extensive business report logic -extensible business reporting language
extensible business reporting language
A report of income paid to independent contractors is called form W-2. form W-3. form 1099-Misc. form 941.
form 1099-Misc.
The report that lists each employee's gross pay, payroll deductions, and net pay is the deduction register payroll transactions payroll register payroll voucher
payroll register
the third basic activity in the accounting system ehich produces financial statements is -update general ledger -post adjusting entries -produce managerial reports -prepare financial statements
prepare financial statements
The third step in the payroll cycle is calculating employer paid benefits and taxes updating the payroll master file validating time and attendance data prepare payroll
prepare payroll
Departments that mostly provide services to other units and charge those units for services rendered should be evaluated as ____ centers -cost -revenue -profit -investment
profit
The revenue cycle's primary objective is to -provide quality product in order to maximize market share. -lower expenses. -maximize the company's profit. -provide the right product in the right place at the right time for the right price.
provide the right product in the right place at the right time for the right price.
The basic document created in the billing process is call a ________. -sales order -sales invoice -bill of lading -packing list
sales invoice
The benefits of a lockbox arrangement with a bank are maximized when -several banks around the country are used, in order to minimize the time payments spend in the mail. -the bank deposits the payments and accesses the customer's information system to record the payments. -the bank is located nearby to the company, so remittance advices can be delivered to the company every day. -an arrangement is made with only one bank, so all remittance advices can be batched for processing.
several banks around the country are used, in order to minimize the time payments spend in the mail.
A report of wages and withholdings for each employee is called form W-2. form W-3. form 1099-Misc. form 941.
w-2
Jim Company sold assets to Fred Company with an alleged value of $2,400,000. Jim Company paid $2,100,000 for the assets. The actual value of the assets was $1,700,000. Using the "out-of-pocket" damage loss rule, the fraud damages would be: $1,700,000. $2,400,000. $700,000 $400,000
$400,000
Experts have determined that the cost of replacing employees is 1.5 times that of an employee's annual salary. Company A and B both have 10,000 employees that earn $60,000 each on the average. Company A has an employee turnover rate of 3% and Company B has a 12% turnover rate. What is the difference between Company A's and Company B's annual employer turnover cost? $27,000,000 $54,000,000 $81,000,000 $74,000,000
$81,000,000
Immediately after the adjusting entries are posted, the next step in the general ledger and reporting system is to prepare -Financail statements -closing entries -an unadjusted trial balance -an adjusted trial balance
-an adjusted trial balance
The following are the three basic financial statements:1. Balance sheet 2. Income statement 3. Statement of cash flows. The correct order in preparing these financial statements is: 1, 2, 3 1, 3, 2 2, 3, 1 2, 1, 3
2, 1, 3
It costs ________ times as much to acquire a new customer as it does to make a sale to an existing customer. 8 2 5 10
5
The average annual management salary at Iyov Management is $100,000. If the average turnover rate for employees is six per year, what is the approximate average annual cost of turnover? $100,000 $400,000 $600,000 $900,000
900,000
The threat of loss of data exposes the company to inefficient manufacturing. the loss of assets ineffective decision making. All are correct.
All are correct.
When accounting expert witnesses develops a theoretical framework for their damage estimates the primary reason is It provides a logical conceptual structure for the damage calculations. It gives the expert a foundation to support and explain the damage calculations to the court. Some judges request/require experts to provide such information. All of the answers are correct.
All of the answers are correct.
Benefits of outsourcing payroll and HRM functions include: Reduces costs Allows small companies to provide benefits similar to large companies Companies can focus their resources on improving services related to their business All of these
All of these
Deposition testimony: Is given under oath. Is taken during the discovery period of the case. All of these None of these
All of these
what control procedures should be used to reduce the risk of unauthorized disclosure of the financial statements? -Multifactor authentication -Physical Security -Encryption -All of these
All of these
To minimize the risk of an unscrupulous manager that can conceal theft of assets or poor performance by altering information in the general ledger. Which of the following statement(s) is true? Employ an access control matrix designed to limit the functions that can be performed by users All of these are true. Review all changes made to the general ledger data. Employ read-only privileges to portions of the system necessary to perform assigned duties.
All of these are true.
The questions asked for the future workforce staffing needs decision includes: All of these. How many employees are needed in the next 5 years to accomplish the organization's strategic plans? How effective are current training programs in maintaining and improving employee skill levels? Which skills are in short supply?
All of these.
A summary judgment is: -Rendered at the end of the case after the judge/jury has heard and summarized all of the case testimony. -A seldom used trial technique in which an attorney attempts to summarize the case data as part of closing arguments. -An attempt by one or both sides in a case to ask the judge to accept their arguments in the case as correct and to render an opinion in the case in their favor without even going to trial. -A period technique used during the discovery phase of the case to periodically summarize the issues that have been present in the cas
An attempt by one or both sides in a case to ask the judge to accept their arguments in the case as correct and to render an opinion in the case in their favor without even going to trial.
Special software packages called ________ can help an organization manage customer service. VMI systems POS systems CRM systems EDI systems
CRM systems
Which of the following is generally not a major source of input to a payroll system? Payroll rate changes. Time and attendance data. Checks to insurance and benefits providers. Withholdings and deduction requests from employees.
Checks to insurance and benefits providers.
Depreciation expense and bad debt expense are examples of which type of adjusting journal entry? -Estimates -Accruals -Closing -Deferrals
Estimates
Why is a separate payroll account used to clear payroll checks? -For internal control purposes, to help limit any exposure to loss by the company. -To make bank reconciliation easier. -To separate payroll and expense checks. -All of the above are correct.
For internal control purposes, to help limit any exposure to loss by the company
_______ are associated with testing to ensure that products meet quality standards External failure costs Inspection costs Internal failure costs Prevention costs
Inspection costs
Which type of information should not be maintained by AIS in fixed asset accounting? Identification/serial number Improvements Cost Market value
Market value
What control mitigates the threat of theft or fraudulent distribution of paychecks? Training Data processing integrity controls Prenumbering all paychecks Restricting access to blank payroll checks and the check signing machine
Restricting access to blank payroll checks and the check signing machine
The accounts receivable clerk destroys all invoices for sales made to family and friends and does not record the sales in the accounts receivable subsidiary ledgers. The family and friends usually give the clerk cash as a "thank you." Which procedure will not prevent or detect this fraud? -Sequentially prenumber all invoices and prepare a sequence check at the end of each day. -Send monthly statements to all customers with balances owed. -Reconcile sales invoices in the billing department to the total debits to accounts receivable subsidiary ledgers. -Reconcile the accounts receivable control account to the accounts receivable subsidiary ledger.
Send monthly statements to all customers with balances owed.
What is the main difference between MRP-II and JIT manufacturing systems? -The length of the planning horizon -JIT uses LT customer demand MRP II uses ST for planning- -MRP-II relies on EDI, but JIT does not -There are no significant differences between MRP-II and JIT.
The length of the planning horizon
A Voir Dire challenge to an expert witness's testimony refers to: -A process of discrediting an opposing expert witness that is used in federal court but not in state courts. -A legal brief filed during discovery to discredit an opposing expert's education. -A process of discrediting an opposing expert witness that is no longer used since the use of the Daubert challenge. -The opposing attorney's questioning of the expert's credentials, knowledge, or experience in relation to the case.
The opposing attorney's questioning of the expert's credentials, knowledge, or experience in relation to the case.
In tort cases, damages are determined based on the concept that: -There was no liability, only damages. -The plaintiff in the case should be placed in a position economically equivalent to that absent the harm from the tort. -All relevant costs resulting from the breach of contract should be included. -Only the incremental revenues resulting from the tort should be included.
The plaintiff in the case should be placed in a position economically
In order for damages to be assessed, the court must find: There is liability in the case. One of the parties is really bad. Criminal violations have occurred. There is both a liability and criminal violations have occured.
There is both a liability and criminal violations have occured.
XBRL is a variant of _____. EDGAR NAARS XML HTML
XML
Two documents usually accompany goods shipped to a customer. What are the two documents? -a packing slip and a bill of lading -a bill of lading and an invoice -an invoice and a sales order -an invoice and a packing slip
a packing slip and a bill of lading
Not all journal entries affect cash flow. Adjusting entries that reflect events that have already occurred, but have no effect on cash, are classified as -deferals -revaluations -corrections -accruals
accruals
The use of robots & computer-controlled machinery to shift from mass to custom order manuf. is computer integrated manufacturing (CIM) lean manufacturing Six Sigma computer-aided design (CAD)
computer integrated manufacturing (CIM)
In an Activity-Based Costing (ABC) system, a cause-and-effect relationship is known as a cost stimulator overhead stimulator cost driver cost catalyst
cost driver
Manufacturing overhead is best described as costs not traced directly to specific jobs Costs feasible to trace directly to specific jobs costs not feasible to trace directly to specific jobs costs management will not trace directly to specific jobs
costs not feasible to trace directly to specific jobs
In using a balanced scorecard, _____ is (are) the key for every organization to achieving financial goals. customers profitability innovation internal controls
customers
A(n) ________ system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month. -open-invoice -continuous -balance forward -cycle billing
cycle billing
Miscellaneous and voluntary payments on behalf of each employee from payroll is earnings statement payroll tax register deduction register payroll register
deduction register
The _____ category includes adjusting entries to record the expensing of prepaid assets. accruals estimates corrections deferrals
deferrals
Involving accountants in executive compensation plans is often especially helpful -in keeping track of the executive compensation plan. -in identifying the appropriate metrics to use when linking -compensation to performance. -in reducing the total amount of compensation paid to executives. -in suggesting the appropriate amount of compensation executives should be paid.
in identifying the appropriate metrics to use when linking compensation to performance.
IFRS Stands for -International financial recovery system -International and financial reporting statements -international forensic response system -international financial reporting standards
international financial reporting standards
The ________ is used to check numeric data and the ______ is used to check the hours-worked field.
limit check, field check
"Push manufacturing" is also known as manufacturing resource planning (MRP) just-in-time manufacturing system the economic order quantity (EOQ) system ahead-of-time production implementation (ATPI)
manufacturing resource planning (MRP)
"Push manufacturing" is also known as -manufacturing resource planning (MRP) -just-in-time manufacturing system -the economic order quantity (EOQ) system -ahead-of-time production implementation (ATPI)
manufacturing resource planning (MRP)
What authorizes the transfer of raw materials from storeroom to production? bill of materials production order materials requisition move ticket
materials requisition
Regularly reviewing an accounts receivable aging report can help management do what? -determine whether the firm's pricing policy is effective -identify customers who have not purchased anything lately -spot firms who are falling behind in their payments -improve the speed which customers make payments
spot firms who are falling behind in their payments
The power of XBRL lies in the information provided by its tags edit checks none of these data marks
tags
The accounting concept that is used most often in developing damages in a law suit is the framework for a cost reconstruction system. the nature and timing of repair and maintenance capitalization versus expensing. the use of cost behavior, fixed, variable, and mixed costs. allocated costs and the appropriate allocation base.
the use of cost behavior, fixed, variable, and mixed costs
The _____ posts the adjusting journal entries after the trial balance has been prepared. treasurer's office COO finance department controller's office
treasurer's office
