Chapter 18 - Quiz

Which person makes closing entries in the general ledger and reporting system? A.Controller B.Department manager C.Budget director D.Treasurer

A.Controller

Who should make adjusting entries? A.Controller B.Treasurer C.CISO D.CFO

A.Controller

An XBRL file presented to end users and that contains tagged data is called a(n) A.Instance document B.Definition Linkbase C.Style Sheet D.Schema

A.Instance document

Which control could be used to mitigate the threat of fraudulent financial reporting? A.Responsibility accounting B.Use of packaged software C.Balanced scorecard D.Audit

D.Audit

An adjusting entry that is made to reflect the exchange of cash prior to performance of the related business activity is called a(n) A.Revaluation B.Estimate C.Accrual D.Deferral

D.Deferral

An XBRL file that explains the relationships among and between financial statement categories (e.g., that Short-term Liabilities and Long-term Liabilities are both part of the Liabilities section is called a(n) A.Schema B.Instance document C.Style Sheet D.Definition Linkbase

D.Definition Linkbase

An adjusting entry that is made to record a portion of expenses that are expected to occur over multiple time periods is called a(n) A.Accrual B.Revaluation C.Deferral D.Estimate

D.Estimate

An XBRL file that provides instructions on how to display an XBRL report on a computer monitor or in a printed report is called a(n) A.Definition Linkbase B.Instance document C.Schema D.Style Sheet

D.Style Sheet

Which person makes original journal entries in the general ledger and reporting system about events such as dividend payments and payments to creditors? A.Department manager B.Controller C.Budget director D.Treasurer

D.Treasurer

Which of the following are outputs of the general ledger and reporting system? (Check all that apply.) A.Managerial reports B.Financial statements C.Adjusting entries D.Closing entries E.Budgets

A.Managerial reports B.Financial statements E.Budgets

Which XBRL document provides the instructions on how to display or print an XBRL-encoded report? A.Style sheet B.Taxonomy C.None of these are correct D.Schema

A.Style sheet

What does a properly designed audit trail enable? (Check all that apply.) A.Trace any item appearing in a report back through the general ledger to the original source document, thereby validating the data in the report B.Trace any transaction from its original source document to the journal entry that updated the general ledger C.Construction of a trial balance D.Construction of a journal voucher file

A.Trace any item appearing in a report back through the general ledger to the original source document, thereby validating the data in the report B.Trace any transaction from its original source document to the journal entry that updated the general ledger

For sound internal control, which of the following sources should be permitted to update the general ledger? A.Treasurer B.Controller C.Both the Treasurer and Controller D.Neither the Treasurer nor the Controller

A.Treasurer

Which of the following is used to verify that the total debits equal the total credits in the general ledger? A.Trial balance B.Journal voucher file C.Review by the treasurer D.Audit trail

A.Trial balance

The control that is used to match account numbers with account descriptions, to ensure that the correct general ledger account is being accessed is called A.closed-loop verification. B.a completeness test. C.field (format) checks. D.a validity check.

A.closed-loop verification.

Data processing integrity controls reduce the risk of ______. A.inaccurate general ledger data B.fraudulent financial reporting C.loss or destruction of general ledger data D.unauthorized disclosure of financial statement

A.inaccurate general ledger data

Which control could be used to mitigate the threat of inaccurate updating of the general ledger? A.Use of packaged software B.Audit trail creation and review C.Training and experience in applying IFRS and XBRL D.Audit

B.Audit trail creation and review

A management report that measures four dimensions of performance: financial, internal operations, innovation and learning, and customer perspectives of the organization is known as A.Schema B.Balanced Scorecard C.Flexible budget D.Extension taxonomy

B.Balanced Scorecard

Recognizing advance insurance payments from customers as a liability would result in what type of adjusting entries? A.Corrections B.Deferrals C.Accruals D.Estimates

B.Deferrals

Which portion of the Balanced Scorecard contains lagging measures of performance? A.Innovation and Learning B.Financial C.Internal Operations D.Customer

B.Financial

Data entry processing integrity controls such as field checks, completeness tests, and closed-loop verification are not needed for journal entries made by A.the Treasurer. B.other accounting subsystems. C.All of the listed sources of journal entries (Treasurer, Controller, other accounting subsystems) need to employ field checks, completeness tests, and closed-loop verification to ensure accuracy. D.the Controller.

B.other accounting subsystems.

An adjusting entry that is made to reflect events that have occurred but for which cash has not yet been received or disbursed is called a(n) A.Revaluation B.Deferral C.Accrual D.Estimate

C.Accrual

Which person makes adjusting entries in the general ledger and reporting system? A.Treasurer B.Department manager C.Controller D.Budget director

C.Controller

Entries that are made to counteract the effects of errors found in the general ledger are called A.Estimates B.Accruals C.Corrections D.Deferrals

C.Corrections

Which control could be used to mitigate the threat of inaccurate or invalid general ledger data? A.Audit trail creation and review B.Reconciliations and control reports C.Review of all changes to general ledger data D.Spreadsheet error protection controls

C.Review of all changes to general ledger data

Which of the following controls is designed to ensure that after updating the general ledger, assets have debit balances and liabilities have credit balances? A.Completeness test B.Field check C.Sign check D.Validity check

C.Sign check

Spreadsheet error protection controls reduce the risk of A.loss or destruction of general ledger data. B.fraudulent financial reporting. C.inaccurate adjusting entries. D.unauthorized adjusting entries.

C.inaccurate adjusting entries.

The purpose of employing data entry processing integrity controls is to mitigate the threat of A.both unauthorized journal entries and inaccurate updating of the general ledger. B.unauthorized journal entries. C.inaccurate updating of the general ledger. D.None of these are correct.

C.inaccurate updating of the general ledger.

If a company has some unique assets or performs some unique activities that differ from most other companies in the industry, it will probably have to use a(n) _________ to present information about those unique facets of its in business in an XBRL report. A.linkbase B.instance document C.schema D.extension taxonomy

D.extension taxonomy

The phrase "close the books" is associated with producing ______. A.budgets B.journal voucher files C.trial balance D.financial statements

D.financial statements