Chapter 8 FIS
-provisional posting -pencil posting
A processing feature unique to the general ledger module is one that allows the altering of recorder transactions if they have not been permanently posted. What is the feature called
soft closings
Becasue entries can still be made in earlier interim periods, closings for interim periods are known as what
the general ledger module is a financial reporting module
In what important respect is the general ledger module distinguished from the other modules
The financial process
What is the core activity of an accounting information system?
Payment of a lawsuit settlement of $5 million
What type of transaction would initially be recorded in the general ledger
Payroll
What type of transaction would not initially be recorded in the general ledger
Balance sheet, income statement, and statement of cash flows
Which financial statements constitute the basic reporting requirements in the financial process
recurring entry
adjustments that must be reversed at the beginning of each accounting period are often accomplished using which data entry efficiency feature
-the recognition of prepaid expenses -the recognition of accrued assets -the recognition of depreciation expense
because the financial process must recognize events that keep the general ledger accounts up-to-date, which of the following is/are included in the financial process
normal accounts
in accounting software packages, what are accounts that have no sub- accounts called
sub-accounts
in accounting software packages, what is the equivalent term for accounts in a subsidiary ledger
-summarized transaction and other event data from other processes -events that do not fall within the revenue, purchasing, or inventory process -events necessary to keep general ledger accounts up-to-date
the financial process encompasses which of the following activities
provision should be made for independent confirmation of data appearing in management reports
what is the internal audit departments role in the control structure of the financial process
chart of accounts
what is the listing of account names used in the financial process along with the codes assigned to the accounts called
master accounts
what is the term that accounting software packages use for control accounts
statistical account
what type of account is used to accumulate physical, as opposed to monetary data
-data captured in and transferred from other processes -reversing entries -end of period adjustments
what types of entries are recorded in the financial process
the accounting system will immediately delete the account from the chart of accounts
when an account is designated as "inactive" which of the following is not true of its status
the accounting information system will prevent further entries from being made to the account
when an account is designated as an "inactive account", which of the following is true of its status
the general ledger module
which module composes the financial process in ais software packages
-recurring entries -automatic distribution entry -auto-enter
which of the following are efficiency features in data entry
-transactions approved/ created by unauthorized persons -transactions for unauthorized amounts -adjusting entries approved/created by authorized persons
which of the following describes an example of transaction risks in the financial process
under IFRS the classification of some financial intruments will cause a change to GAAP calculated debt ratios
which of the following illustrates a difference between GAAP and IFRS
budget preparation
which of the following is a part of the financial process
accountants can debit various accounts one day and complete the offsetting credits the next day
which of the following is an advantage of a system that permits out-of-balance entries
common dollar analysis
which of the following is an example of vertical analysis
inventory management
which of the following is not a part of the financial process
planning and control for the purchase of inventory and other resources
which of the following is not a type of entry in the financial process
vendor invoicing
which of the following is not an event that falls within the financial process because it appropriately falls within the revenue, purchasing, or inventory processes
common dollar analysis
which of the following is not an example of horizontal analysis
payment of stock dividends
which of the following is part of the financial process because it is an event that does not fall within the revenue, purchasing, or inventory processes
file maintenance activities should be separated from daily activities
which of the following is true about activities in the financial process
financial process
which of the following processes receives summarized information from the other processes
out distribution should be limited to authorized individuals
which of the following represent proper information processing controls in the financial process
summarize information received from other processes should be periodically reviewed to determine that the accuracy of financial statements
which of the following represents a processing control in the financial process