Exam 2: Transaction Processing in the Ais

The concept of bookkeeping includes: (i) distinguishing relevant from irrelevant information, (ii) calculating amounts to record in the AIS, (iii) reporting financial results.

Linda embezzled cash from her employer by forging a signature on a check. Which of the following internal controls for source documents would most likely prevent such occurrences in the future?

ABT Corporation uses block coding for its chart of accounts, which includes Cash (101), Land (201), Accounts payable (301) and Retained Earnings (501). Which of the following account numbers is most likely associated with an account that will appear on the adjusted trial balance but not on the post-closing trial balance?

The text discussed common internal controls associated with the steps in the accounting cycle; it also discussed the role of human judgment and information technology in the cycle. Identify and describe: A. One way human judgment can improve internal control in the accounting cycle. B. One way information technology can improve internal control in the accounting cycle. C. One way human judgment can create internal control challenges in the accounting cycle. D. One way information technology can create internal control challenges in the accounting cycle.

An accountant received a stack of sales invoices. Which of the following statements is most true?

Which of the following most clearly differentiates accounting and bookkeeping?

Accounting information systems have five generic parts, one of which is internal control. Please give two examples of applicable internal controls for each of the remaining parts of the AIS.1) Inputs A. Example 1: _________________________________________________ b. Example 2: _________________________________________________ 2) Processes A. Example 1: _________________________________________________ b. Example 2: _________________________________________________ 3) Outputs A. Example 1: _________________________________________________ b. Example 2: _________________________________________________ 4) Storage A. Example 1: _________________________________________________ b. Example 2: _________________________________________________

Put the following statements in the correct order based on the steps in the accounting cycle. A. Assemble AIS outputs. B. Debit cash and credit sales. C. Determine the correct way to enter a transaction in the AIS. D. Examine a bank statement to determine the amount of a bank service charge. E. Make entries that account for timing differences between cash flows and accrual basis revenue and expense. F. Prepare the AIS for a new fiscal year. G. Reorganize AIS information from chronological to account-based. H. Verify, for the first time, the equality of debits and credits in the ledger. I. Verify, for the second time, the equality of debits and credits in the ledger.j. Verify, for the third time, the equality of debits and credits in the ledger.

The text discussed four common coding systems for AIS documents, charts of accounts and other applications. It also discussed a few common internal controls associated with the steps in the accounting cycle. Can the use of block or hierarchical coding in the chart of accounts be considered a form of internal control? Justify your response.

Common internal controls associated with source documents include: (i) sequential numbering, (ii) physical security, (iii) equality of debits and credits.

Please refer to the following unadjusted trial balance in answering the below question. When VLN completes the ninth step in the accounting cycle, all of the following accounts will be involved except:

Which of the following sets includes examples of the same element of financial statements?

The American Accounting Association's definition of accounting includes the items listed on the right. Which item is most clearly related to the examples on the left? Some elements of the definition may be used more than once; others may not be used at all. Each item on the left has only one best answer.

Consider the accounting-related tasks below: Divide the tasks into two groups of equal size.

As an internal control measure in the accounting cycle, physical security most clearly applies to:

SBL Corporation's accounting records were destroyed in a fire. In reconstructing them:

In what way is the fifth step in the accounting cycle different from the seventh step in the accounting cycle?

The definition of accounting has three principal elements. Which of the following is not one of them?

Requiring ___ on certain source documents is associated with transaction limits as an internal control.

Which of the following best pairs an element of bookkeeping with an example of the element?