Question 1

For which of the following reasons are internal controls over financial reporting (ICFRs) necessary?

Accepted Answer

A)  ICFRs mitigate fraud risk. 
B)  ICFRs guide internal review of financial data. 
C)  ICFRs help firms avoid losses of reputation and stock prices. 
D)  All of these answer choices are correct. 
A)  ICFRs mitigate fraud risk. 
B)  ICFRs guide internal review of financial data. 
C)  ICFRs help firms avoid losses of reputation and stock prices. 
D)  All of these answer choices are correct.

Question 2

Arrange the following steps in the financial reporting process in order from beginning to end. 
 $\begin{array}{|l|l|}
\hline \text {Accounting transaction occurs} &\text { Prepare post-closing trial balance} \
\hline\text { Prepare financial statements} & \text {Post to general ledger} \
\hline \text {Journalize and post adjusting entries} & \text {Journalize and post-closing entries} \
\hline\text { Prepare adjusted trial balance} &\text { Prepare unadjusted trial balance} \
\hline\text { Record transaction in appropriate journal} & \
\hline
\end{array}$

Accepted Answer

Step 1. Accounting transaction occurs
St

Question 3

Which type of analytics may identify journal entry fraud related to revenue inflation?

Accepted Answer

A)  Revenue reversals 
B)  General ledger close 
C)  Daily revenue 
D)  All of these answer choices are correct. 
A)  Revenue reversals 
B)  General ledger close 
C)  Daily revenue 
D)  All of these answer choices are correct.

Question 4

Which of the following keywords sets the rounding size for a data element?

Accepted Answer

A)  us-gaap 
B)  unitRef 
C)  contextRef 
D)  decimals 
A)  us-gaap 
B)  unitRef 
C)  contextRef 
D)  decimals

Question 5

Which of the following steps in the financial reporting process only occurs at the end of the fiscal year?

Accepted Answer

A)  Prepare an adjusted trial balance 
B)  Prepare financial statements 
C)  Prepare closing journal entries 
D)  Prepare an unadjusted trial balance 
A)  Prepare an adjusted trial balance 
B)  Prepare financial statements 
C)  Prepare closing journal entries 
D)  Prepare an unadjusted trial balance

Question 6

Which part of the AIS measures and helps managers control costs?

Accepted Answer

A)  Financial accounting 
B)  Prescriptive accounting 
C)  Cost accounting 
D)  Price accounting 
A)  Financial accounting 
B)  Prescriptive accounting 
C)  Cost accounting 
D)  Price accounting

Question 7

Which of the following statements is TRUE?

Accepted Answer

A)  Businesses must follow GAAP for managerial accounting reports. 
B)  Measuring and controlling costs is only necessary for businesses who focus on low cost. 
C)  Businesses who choose a product differentiation strategy to achieve competitive advantage focus on research, and development not managerial accounting. 
D)  Businesses create value by combining and converting resources into goods or services that customers want at either a lower cost or better quality than competitors. 
A)  Businesses must follow GAAP for managerial accounting reports. 
B)  Measuring and controlling costs is only necessary for businesses who focus on low cost. 
C)  Businesses who choose a product differentiation strategy to achieve competitive advantage focus on research, and development not managerial accounting. 
D)  Businesses create value by combining and converting resources into goods or services that customers want at either a lower cost or better quality than competitors.

Question 8

Company A acquires Company Z. Company Z uses an ERP system that is incompatible to the one used by Company A. As a corporate manager, you must carefully consider the cost of switching Company Z to Company A's ERP system versus the

Accepted Answer

A)  decision usefulness of the financial data. 
B)  corporate leadership appetite for adopting a new system. 
C)  time investment to make the switch. 
D)  All of these answer choices are correct. 
A)  decision usefulness of the financial data. 
B)  corporate leadership appetite for adopting a new system. 
C)  time investment to make the switch. 
D)  All of these answer choices are correct.

Question 9

Which of the following statements is TRUE of responsibility accounting reports?

Accepted Answer

A)  Responsibility accounting reports are used to trace performance to the responsible department. 
B)  Responsibility accounting reports follow GAAP guidelines. 
C)  The SEC mandates the public release of responsibility reports. 
D)  All of these answer choices are correct. 
A)  Responsibility accounting reports are used to trace performance to the responsible department. 
B)  Responsibility accounting reports follow GAAP guidelines. 
C)  The SEC mandates the public release of responsibility reports. 
D)  All of these answer choices are correct.

Question 10

A trial balance roll forward analytics technique allows auditors to determine if the journal entry data is

Accepted Answer

A)  complete. 
B)  balanced. 
C)  correct. 
D)  clear. 
A)  complete. 
B)  balanced. 
C)  correct. 
D)  clear.

Question 11

Which of the following statements is FALSE?

Accepted Answer

A)  Management accounting provides managers with accounting information for decisions. 
B)  Management accounting reports follow GAAP protocols. 
C)  Management accounting reports are customizable by companies. 
D)  Management accounting includes cost accounting and balance scorecards. 
A)  Management accounting provides managers with accounting information for decisions. 
B)  Management accounting reports follow GAAP protocols. 
C)  Management accounting reports are customizable by companies. 
D)  Management accounting includes cost accounting and balance scorecards.

Question 12

Match the list journal entry test analytics with most appropriate description of how the test is used.
-Dormant accounts

Accepted Answer

A)  Review journal entry dates for weekends or holiday entries 
B)  Identify journal entries that were approved by someone without authority 
C)  Review inactive accounts for attempts to hide journal entries 
D)  Search for journal entries with missing fields 
E)  Search for vague journal entry descriptions 
A)  Review journal entry dates for weekends or holiday entries 
B)  Identify journal entries that were approved by someone without authority 
C)  Review inactive accounts for attempts to hide journal entries 
D)  Search for journal entries with missing fields 
E)  Search for vague journal entry descriptions

Question 13

XML is the abbreviated version of which of the following?

Accepted Answer

A)  Extra markup listing 
B)  Extra markup language 
C)  Extensible markup listing 
D)  Extensible markup language 
A)  Extra markup listing 
B)  Extra markup language 
C)  Extensible markup listing 
D)  Extensible markup language

Question 14

Which financial statement is created immediately after the income statement and balance sheet are complete?

Accepted Answer

A)  Statement of stockholder's equity 
B)  Statement of cash flows 
C)  Statement of profit and loss 
D)  Statement of financial position 
A)  Statement of stockholder's equity 
B)  Statement of cash flows 
C)  Statement of profit and loss 
D)  Statement of financial position

Question 15

Which type of analytic may identify unusual spikes in revenue journal entry activity?

Accepted Answer

A)  Dormant accounts 
B)  Daily revenue 
C)  Benford analysis 
D)  Revenue reversals 
A)  Dormant accounts 
B)  Daily revenue 
C)  Benford analysis 
D)  Revenue reversals

Question 16

Which type of business strategy involves the goal of being the low-cost provider in an industry?

Accepted Answer

A)  Cost leadership 
B)  Cost focus 
C)  Differentiation 
D)  Differentiation focus 
A)  Cost leadership 
B)  Cost focus 
C)  Differentiation 
D)  Differentiation focus

Question 17

Which type of analytic may identify fraudulent journal entries that are manually input into the general ledger?

Accepted Answer

A)  Benford analysis 
B)  Unauthorized users 
C)  General ledger close 
D)  Round dollar entries 
A)  Benford analysis 
B)  Unauthorized users 
C)  General ledger close 
D)  Round dollar entries

Question 18

Which of the following statements concerning responsibility accounting reports is FALSE?

Accepted Answer

A)  Responsibility accounting reports are used to trace performance to the responsible department or manager to improve accountability. 
B)  Responsibility accounting reports go beyond the scope of financial accounting reports and cannot be generated by the AIS. 
C)  Responsibility accounting reports are customized for managers based on their areas of responsibility. 
D)  Responsibility accounting reports break-down financial data by controllable costs in a department. 
A)  Responsibility accounting reports are used to trace performance to the responsible department or manager to improve accountability. 
B)  Responsibility accounting reports go beyond the scope of financial accounting reports and cannot be generated by the AIS. 
C)  Responsibility accounting reports are customized for managers based on their areas of responsibility. 
D)  Responsibility accounting reports break-down financial data by controllable costs in a department.

Question 19

Which of the following statements is an example of timeliness of data?

Accepted Answer

A)  Information is useful to determine future actions. 
B)  Information is available prior to a decision deadline. 
C)  Information is understandable by the end user. 
D)  Information is presented in the same way over time. 
A)  Information is useful to determine future actions. 
B)  Information is available prior to a decision deadline. 
C)  Information is understandable by the end user. 
D)  Information is presented in the same way over time.

Question 20

Match the list journal entry test analytics with most appropriate description of how the test is used.
-Unusual dates

Accepted Answer

A)  Review journal entry dates for weekends or holiday entries 
B)  Identify journal entries that were approved by someone without authority 
C)  Review inactive accounts for attempts to hide journal entries 
D)  Search for journal entries with missing fields 
E)  Search for vague journal entry descriptions 
A)  Review journal entry dates for weekends or holiday entries 
B)  Identify journal entries that were approved by someone without authority 
C)  Review inactive accounts for attempts to hide journal entries 
D)  Search for journal entries with missing fields 
E)  Search for vague journal entry descriptions

For which of the following reasons are internal controls over financial reporting (ICFRs) necessary?

Which type of analytics may identify journal entry fraud related to revenue inflation?

Which of the following keywords sets the rounding size for a data element?

Which of the following steps in the financial reporting process only occurs at the end of the fiscal year?

Which part of the AIS measures and helps managers control costs?

Which of the following statements is TRUE?

Company A acquires Company Z. Company Z uses an ERP system that is incompatible to the one used by Company A. As a corporate manager, you must carefully consider the cost of switching Company Z to Company A's ERP system versus the

Which of the following statements is TRUE of responsibility accounting reports?

A trial balance roll forward analytics technique allows auditors to determine if the journal entry data is

Which of the following statements is FALSE?

Match the list journal entry test analytics with most appropriate description of how the test is used. -Dormant accounts

XML is the abbreviated version of which of the following?

Which financial statement is created immediately after the income statement and balance sheet are complete?

Which type of analytic may identify unusual spikes in revenue journal entry activity?

Which type of business strategy involves the goal of being the low-cost provider in an industry?

Which type of analytic may identify fraudulent journal entries that are manually input into the general ledger?

Which of the following statements concerning responsibility accounting reports is FALSE?

Which of the following statements is an example of timeliness of data?

Match the list journal entry test analytics with most appropriate description of how the test is used. -Unusual dates

Accounting As Information

Risks and Risk Assessments

Risk Management and Internal Controls

Software and Systems

Data Storage and Analysis

Systems and Database Design

Emerging and Disruptive Technologies

Documenting Systems and Processes

Human Resources and Payroll Processes

Purchasing and Payments Process

Conversion Processes

Marketing, Sales, and Collection Processes

Information Systems and Controls

Fraud

Cybersecurity

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Audit Assurance

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Exam 13: Financial Reporting Processes

For which of the following reasons are internal controls over financial reporting (ICFRs) necessary?

Which type of analytics may identify journal entry fraud related to revenue inflation?

Which of the following keywords sets the rounding size for a data element?

Which of the following steps in the financial reporting process only occurs at the end of the fiscal year?

Which part of the AIS measures and helps managers control costs?

Which of the following statements is TRUE?

Company A acquires Company Z. Company Z uses an ERP system that is incompatible to the one used by Company A. As a corporate manager, you must carefully consider the cost of switching Company Z to Company A's ERP system versus the

Which of the following statements is TRUE of responsibility accounting reports?

A trial balance roll forward analytics technique allows auditors to determine if the journal entry data is

Which of the following statements is FALSE?

Match the list journal entry test analytics with most appropriate description of how the test is used. -Dormant accounts

XML is the abbreviated version of which of the following?

Which financial statement is created immediately after the income statement and balance sheet are complete?

Which type of analytic may identify unusual spikes in revenue journal entry activity?

Which type of business strategy involves the goal of being the low-cost provider in an industry?

Which type of analytic may identify fraudulent journal entries that are manually input into the general ledger?

Which of the following statements concerning responsibility accounting reports is FALSE?

Which of the following statements is an example of timeliness of data?

Match the list journal entry test analytics with most appropriate description of how the test is used. -Unusual dates

Accounting As Information

Risks and Risk Assessments

Risk Management and Internal Controls

Software and Systems

Data Storage and Analysis

Systems and Database Design

Emerging and Disruptive Technologies

Documenting Systems and Processes

Human Resources and Payroll Processes

Purchasing and Payments Process

Conversion Processes

Marketing, Sales, and Collection Processes

Information Systems and Controls

Fraud

Cybersecurity

Data Analytics

Data Visualization

Audit Assurance

Filters