Question 1

Today's automated accounting process:

Accepted Answer

A) Is built on a structure independent of manual accounting 
B) Does not require special journals or subsidiary ledgers 
C) Is built on an operational structure similar to manual accounting 
D) Eliminates errors in the accounting process 
A) Is built on a structure independent of manual accounting 
B) Does not require special journals or subsidiary ledgers 
C) Is built on an operational structure similar to manual accounting 
D) Eliminates errors in the accounting process

Question 2

The sales journal would have columns for a

Accepted Answer

A) Debit to sales, a credit to accounts receivable 
B) Debit to cash, a debit to accounts receivable, and a credit to sales 
C) Debit to accounts receivable and a credit to cost of goods 
D) Debit to accounts receivable and a credit to sales 
A) Debit to sales, a credit to accounts receivable 
B) Debit to cash, a debit to accounts receivable, and a credit to sales 
C) Debit to accounts receivable and a credit to cost of goods 
D) Debit to accounts receivable and a credit to sales

Question 3

Within the conversion processes, systems and controls result from transactions that are:

Accepted Answer

A) Large volumes of daily materials transactions 
B) Large volumes of daily sales and cash inflow transactions 
C) Periodic 
D) Infrequent 
A) Large volumes of daily materials transactions 
B) Large volumes of daily sales and cash inflow transactions 
C) Periodic 
D) Infrequent

Question 4

By maintaining a well-defined, complete chart of accounts, an organization minimizes the related risk of:

Accepted Answer

A) Fraud and errors 
B) Invalid general ledger postings 
C) Theft and fraud 
D) Amounts posted to wrong accounts 
A) Fraud and errors 
B) Invalid general ledger postings 
C) Theft and fraud 
D) Amounts posted to wrong accounts

Question 5

Today's automated accounting process:

Accepted Answer

A) Helps the user by identifying modules for activities. 
B) Precludes the use of subsidiary ledgers. 
C) Requires manual posting of general journal transactions. 
D) All of the above are correct. 
A) Helps the user by identifying modules for activities. 
B) Precludes the use of subsidiary ledgers. 
C) Requires manual posting of general journal transactions. 
D) All of the above are correct.

Question 6

While using a manual general ledger system, which of the following items would be included in the audit trail: general ledger, electronic images, journal vouchers, paper documents, source documents, special journals, and subsidiary ledgers?

Accepted Answer

A) All of those listed 
B) Everything except electronic images 
C) Everything except journal vouchers 
D) Everything except source documents 
A) All of those listed 
B) Everything except electronic images 
C) Everything except journal vouchers 
D) Everything except source documents

Question 7

Special journals include the:

Accepted Answer

A) Accounts receivable journal 
B) Accounts payable journal 
C) Purchases journal 
D) Inventory journal 
A) Accounts receivable journal 
B) Accounts payable journal 
C) Purchases journal 
D) Inventory journal

Question 8

Subsidiary ledgers:

Accepted Answer

A) Would not contain the detailed information of a customer's account 
B) Would contain the detailed information of a customer's account 
C) Would contain only information related to secondary interests of the organization 
D) Would not be utilized in automated accounting processes 
A) Would not contain the detailed information of a customer's account 
B) Would contain the detailed information of a customer's account 
C) Would contain only information related to secondary interests of the organization 
D) Would not be utilized in automated accounting processes

Question 9

Which of the following statements is true regarding internal controls of capital and investment processes?

Accepted Answer

A) Internal controls aimed at preventing and detecting employee fraud in capital and investment processes are not as effective. 
B) Top management fraud, rather than employee fraud, is more likely to occur. 
C) Any fraud is likely to involve manipulating capital and investment processes. 
D) Because of top management oversight, the auditor need not review these processes. 
A) Internal controls aimed at preventing and detecting employee fraud in capital and investment processes are not as effective. 
B) Top management fraud, rather than employee fraud, is more likely to occur. 
C) Any fraud is likely to involve manipulating capital and investment processes. 
D) Because of top management oversight, the auditor need not review these processes.

Question 10

The processes that authorize the raising of capital, execute the raising of capital, and properly account for that capital are called:

Accepted Answer

A) Capital-raising processes 
B) Source of capital processes 
C) Administrative processes 
D) Investment processes 
A) Capital-raising processes 
B) Source of capital processes 
C) Administrative processes 
D) Investment processes

Question 11

Which of the following statements about reporting is true?

Accepted Answer

A) External users need detailed, rather than summarized, information. 
B) All reports, internal and external, are derived only from general ledger data. 
C) All organizations need similar internal reports. 
D) Internal reports are tailored to the specific needs of each management level and function. 
A) External users need detailed, rather than summarized, information. 
B) All reports, internal and external, are derived only from general ledger data. 
C) All organizations need similar internal reports. 
D) Internal reports are tailored to the specific needs of each management level and function.

Question 12

Long-term debt results from borrowing funds via:

Accepted Answer

A) Bonds and loans with payment schedules several years in the future 
B) Stocks 
C) Loans with payment due in the near future 
D) All of the above are examples of long-term debt. 
A) Bonds and loans with payment schedules several years in the future 
B) Stocks 
C) Loans with payment due in the near future 
D) All of the above are examples of long-term debt.

Question 13

A service firm would focus on:

Accepted Answer

A) Raw materials and work in process 
B) Sales and project status 
C) Work in process and labor 
D) Raw materials and labor 
A) Raw materials and work in process 
B) Sales and project status 
C) Work in process and labor 
D) Raw materials and labor

Question 14

Which of the following statements is NOT true regarding source of capital transactions?

Accepted Answer

A) These processes should not be initiated unless there is specific authorization by management at a top level. 
B)  Source of capital processes will result in potential dividend or interest payments. 
C) Retirement of debt is a source of capital process. 
D) The fact that these transactions and processes cannot occur without oversight by top management means other controls are not necessary. 
A) These processes should not be initiated unless there is specific authorization by management at a top level. 
B)  Source of capital processes will result in potential dividend or interest payments. 
C) Retirement of debt is a source of capital process. 
D) The fact that these transactions and processes cannot occur without oversight by top management means other controls are not necessary.

Question 15

When a transaction occurs in a business, the accountant must decide if it is a regular and recurring transaction.If the transaction IS regular and recurring, it will be recorded in a ____1_____.If it is NOT regular and recurring, it will be recorded in a _____2_____.

Accepted Answer

A) 1=General journal; 2=Special journal 
B) 1=General ledger: 2=Special ledger 
C) 1=Special journal; 2=General Journal 
D) 1=Special journal; 2=Subsidiary Ledger 
A) 1=General journal; 2=Special journal 
B) 1=General ledger: 2=Special ledger 
C) 1=Special journal; 2=General Journal 
D) 1=Special journal; 2=Subsidiary Ledger

Question 16

Capital or investment processes:

Accepted Answer

A) Are a regular and frequent event 
B) Only require the specific approval of 
C) Require the specific approval of top management or board of directors 
D) Can be considered revenue since they result in cash inflows 
A) Are a regular and frequent event 
B) Only require the specific approval of 
C) Require the specific approval of top management or board of directors 
D) Can be considered revenue since they result in cash inflows

Question 17

Within the administrative processes, systems and controls result from transactions that are:

Accepted Answer

A) Large volumes of daily materials transactions 
B) Large volumes of daily sales and cash inflow transactions 
C) Periodic 
D) Infrequent or intermittent 
A) Large volumes of daily materials transactions 
B) Large volumes of daily sales and cash inflow transactions 
C) Periodic 
D) Infrequent or intermittent

Question 18

The external general purpose financial statements/reports include which of the following: aged accounts payable report, aged accounts receivable report, balance sheet, income statement, inventory statement, statement of cash flows, statement of retained earnings

Accepted Answer

A) All those listed 
B) All those listed except for the inventory statement 
C) Only balance sheet, income statement, statement of cash flows, and statement of retained earnings 
D) Only aged accounts payable report, balance sheet, income statement, statement of cash flows, and statement of retained earnings 
A) All those listed 
B) All those listed except for the inventory statement 
C) Only balance sheet, income statement, statement of cash flows, and statement of retained earnings 
D) Only aged accounts payable report, balance sheet, income statement, statement of cash flows, and statement of retained earnings

Question 19

Posting to the general ledger occurs:

Accepted Answer

A) As the transaction is recorded in the special journals 
B) Is not required if special journals are utilized 
C) Automatically at the end of each business day 
D) Only when proper authorization has been given 
A) As the transaction is recorded in the special journals 
B) Is not required if special journals are utilized 
C) Automatically at the end of each business day 
D) Only when proper authorization has been given

Today's automated accounting process:

The sales journal would have columns for a

Within the conversion processes, systems and controls result from transactions that are:

By maintaining a well-defined, complete chart of accounts, an organization minimizes the related risk of:

Today's automated accounting process:

While using a manual general ledger system, which of the following items would be included in the audit trail: general ledger, electronic images, journal vouchers, paper documents, source documents, special journals, and subsidiary ledgers?

Special journals include the:

Subsidiary ledgers:

Which of the following statements is true regarding internal controls of capital and investment processes?

The processes that authorize the raising of capital, execute the raising of capital, and properly account for that capital are called:

Which of the following statements about reporting is true?

Long-term debt results from borrowing funds via:

A service firm would focus on:

Which of the following statements is NOT true regarding source of capital transactions?

When a transaction occurs in a business, the accountant must decide if it is a regular and recurring transaction.If the transaction IS regular and recurring, it will be recorded in a __1_.If it is NOT regular and recurring, it will be recorded in a _2___.

Capital or investment processes:

Within the administrative processes, systems and controls result from transactions that are:

The external general purpose financial statements/reports include which of the following: aged accounts payable report, aged accounts receivable report, balance sheet, income statement, inventory statement, statement of cash flows, statement of retained earnings

Posting to the general ledger occurs:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Auditing Information Technology-Based Processes

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Conversion Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters

Exam 12: Administrative Processes and Controls

Today's automated accounting process:

The sales journal would have columns for a

Within the conversion processes, systems and controls result from transactions that are:

By maintaining a well-defined, complete chart of accounts, an organization minimizes the related risk of:

Today's automated accounting process:

While using a manual general ledger system, which of the following items would be included in the audit trail: general ledger, electronic images, journal vouchers, paper documents, source documents, special journals, and subsidiary ledgers?

Special journals include the:

Subsidiary ledgers:

Which of the following statements is true regarding internal controls of capital and investment processes?

The processes that authorize the raising of capital, execute the raising of capital, and properly account for that capital are called:

Which of the following statements about reporting is true?

Long-term debt results from borrowing funds via:

A service firm would focus on:

Which of the following statements is NOT true regarding source of capital transactions?

When a transaction occurs in a business, the accountant must decide if it is a regular and recurring transaction.If the transaction IS regular and recurring, it will be recorded in a ____1_____.If it is NOT regular and recurring, it will be recorded in a _____2_____.

Capital or investment processes:

Within the administrative processes, systems and controls result from transactions that are:

The external general purpose financial statements/reports include which of the following: aged accounts payable report, aged accounts receivable report, balance sheet, income statement, inventory statement, statement of cash flows, statement of retained earnings

Posting to the general ledger occurs:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Auditing Information Technology-Based Processes

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Conversion Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters

When a transaction occurs in a business, the accountant must decide if it is a regular and recurring transaction.If the transaction IS regular and recurring, it will be recorded in a __1_.If it is NOT regular and recurring, it will be recorded in a _2___.