Question 1

Which of the following is not a characteristic of the Fixed Asset System?

Accepted Answer

A)  Acquisitions are routine transactions requiring general authorization. 
B)  Retirements are reported on an authorized disposal report form. 
C)  Acquisition cost is allocated over the expected life of the asset. 
D)  Transfer of fixed assets among departments is recorded in the fixed asset subsidiary ledger. 
A)  Acquisitions are routine transactions requiring general authorization. 
B)  Retirements are reported on an authorized disposal report form. 
C)  Acquisition cost is allocated over the expected life of the asset. 
D)  Transfer of fixed assets among departments is recorded in the fixed asset subsidiary ledger.

Question 2

Why should employee paychecks be drawn against a special checking account?

Accepted Answer

A separate imprest account is establishe

Question 3

Three major tasks are handled by the Fixed Asset System.What is the purpose of each? What special control issues affect each?

Accepted Answer

Asset acquisition handles the steps lead

Question 4

Describe an internal control procedure that would prevent an employee from punching the time clock for another,absent employee.

Accepted Answer

supervision of the t

Question 5

A control technique that can reduce the risk of a terminated employee being paid is

Accepted Answer

A)  a security camera viewing the time clock 
B)  the supervisor taking role during the shift 
C)  paychecks being distributed by an independent paymaster 
D)  reconciliation of time cards and job tickets 
A)  a security camera viewing the time clock 
B)  the supervisor taking role during the shift 
C)  paychecks being distributed by an independent paymaster 
D)  reconciliation of time cards and job tickets

Question 6

Work centers provide the personnel action form,which triggers the payroll process.

Accepted Answer

A) True 
 B)False

Question 7

Accounts payable

Accepted Answer

A)  signs paychecks 
B)  prepares the payroll voucher 
C)  reconciles time cards and employee records 
D)  distributes paychecks to employees 
A)  signs paychecks 
B)  prepares the payroll voucher 
C)  reconciles time cards and employee records 
D)  distributes paychecks to employees

Question 8

What is a personnel action form?

Accepted Answer

The personnel action form provides the p

Question 9

How do Fixed Asset Systems differ from the expenditure cycle?

Accepted Answer

The fixed asset system processes nonrout

Question 10

The document that captures the total amount of time that individual workers spend on each production job is called a

Accepted Answer

A)  time card 
B)  job ticket 
C)  personnel action form 
D)  labor distribution form 
A)  time card 
B)  job ticket 
C)  personnel action form 
D)  labor distribution form

Question 11

Time cards are used by cost accounting to allocate direct labor charges to work in process.

Accepted Answer

A) True 
 B)False

Question 12

Inventory control authorizes fixed asset purchases with a purchase requisition.

Accepted Answer

A) True 
 B)False

Question 13

To improve internal control,paychecks should be distributed by the employee's supervisor.

Accepted Answer

A) True 
 B)False

Question 14

Payroll processing can be automated easily because accounting for payroll is very simple.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a reasonable control for fixed assets?

Accepted Answer

A)  Proper authorization is required for acquisition and disposal of fixed assets. 
B)  Fixed asset records show the location of each asset. 
C)  Fully depreciated assets are immediately disposed of. 
D)  Depreciation policies are in writing. 
A)  Proper authorization is required for acquisition and disposal of fixed assets. 
B)  Fixed asset records show the location of each asset. 
C)  Fully depreciated assets are immediately disposed of. 
D)  Depreciation policies are in writing.

Question 16

Why does the payroll process lend itself to batch processing?

Accepted Answer

Payroll lends itself to batch processing

Question 17

Which control is not a part of the Fixed Asset System?

Accepted Answer

A)  formal analysis of the purchase request 
B)  review of the assumptions used in the capital budgeting model 
C)  development of an economic order quantity model 
D)  estimates of anticipated cost savings 
A)  formal analysis of the purchase request 
B)  review of the assumptions used in the capital budgeting model 
C)  development of an economic order quantity model 
D)  estimates of anticipated cost savings

Question 18

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Accepted Answer

A) True 
 B)False

Question 19

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

Accepted Answer

A) True 
 B)False

Question 20

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

Accepted Answer

A) True 
 B)False

Which of the following is not a characteristic of the Fixed Asset System?

Why should employee paychecks be drawn against a special checking account?

Three major tasks are handled by the Fixed Asset System.What is the purpose of each? What special control issues affect each?

Describe an internal control procedure that would prevent an employee from punching the time clock for another,absent employee.

A control technique that can reduce the risk of a terminated employee being paid is

Work centers provide the personnel action form,which triggers the payroll process.

Accounts payable

What is a personnel action form?

How do Fixed Asset Systems differ from the expenditure cycle?

The document that captures the total amount of time that individual workers spend on each production job is called a

Time cards are used by cost accounting to allocate direct labor charges to work in process.

Inventory control authorizes fixed asset purchases with a purchase requisition.

To improve internal control,paychecks should be distributed by the employee's supervisor.

Payroll processing can be automated easily because accounting for payroll is very simple.

Which of the following is not a reasonable control for fixed assets?

Why does the payroll process lend itself to batch processing?

Which control is not a part of the Fixed Asset System?

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters

Exam 6: The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

Which of the following is not a characteristic of the Fixed Asset System?

Why should employee paychecks be drawn against a special checking account?

Three major tasks are handled by the Fixed Asset System.What is the purpose of each? What special control issues affect each?

Describe an internal control procedure that would prevent an employee from punching the time clock for another,absent employee.

A control technique that can reduce the risk of a terminated employee being paid is

Work centers provide the personnel action form,which triggers the payroll process.

Accounts payable

What is a personnel action form?

How do Fixed Asset Systems differ from the expenditure cycle?

The document that captures the total amount of time that individual workers spend on each production job is called a

Time cards are used by cost accounting to allocate direct labor charges to work in process.

Inventory control authorizes fixed asset purchases with a purchase requisition.

To improve internal control,paychecks should be distributed by the employee's supervisor.

Payroll processing can be automated easily because accounting for payroll is very simple.

Which of the following is not a reasonable control for fixed assets?

Why does the payroll process lend itself to batch processing?

Which control is not a part of the Fixed Asset System?

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters