Question 1

Which type of graph is the most commonly used to display trends in financial data?

Accepted Answer

A) Pie chart. 
B) Scatterplot chart. 
C) Bar chart. 
D) Stochastic chart. 
A) Pie chart. 
B) Scatterplot chart. 
C) Bar chart. 
D) Stochastic chart. C

Question 2

IFRS stands for

Accepted Answer

A) International Financial Reporting Standards. 
B) International Forensic Response System. 
C) International and Financial Reporting Statements. 
D) International Financial Recovery System. 
A) International Financial Reporting Standards. 
B) International Forensic Response System. 
C) International and Financial Reporting Statements. 
D) International Financial Recovery System. A

Question 3

Variances for variable costs will be misleading when the planned output differs from budgeted output.A solution to this problem would be

Accepted Answer

A) to use a stricter budgeting process. 
B) to use flexible budgeting. 
C) to better predict the final output. 
D) to allow more judgement involve in the budgeting process. 
A) to use a stricter budgeting process. 
B) to use flexible budgeting. 
C) to better predict the final output. 
D) to allow more judgement involve in the budgeting process. B

Question 4

Which of the following are used to document entries made to update the general ledger?

Accepted Answer

A) general journal 
B) subsidiary journal 
C) subsidiary ledgers 
D) journal vouchers 
A) general journal 
B) subsidiary journal 
C) subsidiary ledgers 
D) journal vouchers

Question 5

Which of the following controls can minimize the threat of poorly designed reports and graphs?

Accepted Answer

A) Training and experience in applying IFRS and XBRL. 
B) Responsibility accounting. 
C) Backup and disaster recovery procedures. 
D) Restriction of access to general ledger. 
A) Training and experience in applying IFRS and XBRL. 
B) Responsibility accounting. 
C) Backup and disaster recovery procedures. 
D) Restriction of access to general ledger.

Question 6

Which item below is not considered a major input to the general ledger and reporting system?

Accepted Answer

A) summary entries from the major subsystems 
B) reports from managers 
C) adjusting entries 
D) financing and investing activities 
A) summary entries from the major subsystems 
B) reports from managers 
C) adjusting entries 
D) financing and investing activities

Question 7

Identify the adjusting entry that is made at the end of an accounting period to reflect an exchange of cash prior to the performance of a related event is classified as a(n)

Accepted Answer

A) Accrual entry. 
B) deferral entry. 
C) Closing entry. 
D) Correcting entry. 
A) Accrual entry. 
B) deferral entry. 
C) Closing entry. 
D) Correcting entry.

Question 8

Organizations should set their balanced scorecard targets to reflect industry benchmark values.

Accepted Answer

A) True 
 B)False

Question 9

Identify the most correct statement with regard to how the various accounting subsystems update the general ledger.

Accepted Answer

A) Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours. 
B) Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger. 
C) The controller or treasurer must approve accounting subsystem journal entries before any updating may occur. 
D) Nonroutine transactions are entered into the system by the treasurer's office. 
A) Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours. 
B) Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger. 
C) The controller or treasurer must approve accounting subsystem journal entries before any updating may occur. 
D) Nonroutine transactions are entered into the system by the treasurer's office.

Question 10

Which of the following balanced scorecard dimensions provides measures on how well the organization is generating sales?

Accepted Answer

A) Financial. 
B) Internal operations. 
C) Innovation and learning. 
D) Customer. 
A) Financial. 
B) Internal operations. 
C) Innovation and learning. 
D) Customer.

Question 11

How is a balanced scorecard used to assess organizational performance?

Accepted Answer

The balanced scorecard contains four per

Question 12

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "Your journal entry must be a numeric value.Please reenter." This is an example of a

Accepted Answer

A) validity check. 
B) field check. 
C) zero-balance check. 
D) completeness test. 
A) validity check. 
B) field check. 
C) zero-balance check. 
D) completeness test.

Question 13

Immediately after the adjusting entries are posted,the next step in the general ledger and reporting system is to prepare

Accepted Answer

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

Question 14

Adjusting entries that reflect a change in accounting principle used to value inventories are classified as

Accepted Answer

A) corrections. 
B) estimates. 
C) deferrals. 
D) revaluations. 
A) corrections. 
B) estimates. 
C) deferrals. 
D) revaluations.

Question 15

A major way in which IFRS differs from GAAP that will affect the design of a company's general ledger and reporting system is an IFRS principle known as

Accepted Answer

A) componentization. 
B) monetization. 
C) securitization. 
D) centralization. 
A) componentization. 
B) monetization. 
C) securitization. 
D) centralization.

Question 16

Cash is a component of the adjusting entry.

Accepted Answer

A) True 
 B)False

Question 17

Adjusting entries that are made to reflect differences between the actual and recorded value of an asset or a change in accounting principle are called

Accepted Answer

A) reconciliations. 
B) revaluations. 
C) estimates. 
D) accruals. 
A) reconciliations. 
B) revaluations. 
C) estimates. 
D) accruals.

Question 18

Adjusting entries that are made to counteract the effects of errors found in the general ledger are called

Accepted Answer

A) accruals. 
B) corrections. 
C) deferrals. 
D) estimates. 
A) accruals. 
B) corrections. 
C) deferrals. 
D) estimates.

Question 19

Which of the following scenarios will not be allowed under IFRS?

Accepted Answer

A) A landscaping and garden retail store keeps piles of river rock,gravel,paving stones,and small decorative rocks in a fenced area on the side of the store.The store uses the most recent inventory costs when calculating cost of goods sold,since new inventory is piled on top of the older inventory. 
B) A grocery store strictly enforces a shelf rotation policy,so that older inventory is always at the front and sold first.The store uses the oldest inventory costs to calculate cost of goods sold. 
C) A farm chemical supplier maintains a large holding tank of chemicals,into which deliveries are periodically combined with the older chemicals.The supplier averages the cost of all inventory to calculate cost of goods sold. 
D) All of the above are acceptable under IFRS. 
A) A landscaping and garden retail store keeps piles of river rock,gravel,paving stones,and small decorative rocks in a fenced area on the side of the store.The store uses the most recent inventory costs when calculating cost of goods sold,since new inventory is piled on top of the older inventory. 
B) A grocery store strictly enforces a shelf rotation policy,so that older inventory is always at the front and sold first.The store uses the oldest inventory costs to calculate cost of goods sold. 
C) A farm chemical supplier maintains a large holding tank of chemicals,into which deliveries are periodically combined with the older chemicals.The supplier averages the cost of all inventory to calculate cost of goods sold. 
D) All of the above are acceptable under IFRS.

Question 20

The operating budget

Accepted Answer

A) compares estimated cash flows from operations with planned expenditures. 
B) shows cash inflows and outflows for each capital project. 
C) depicts planned revenues and expenditures for each organizational unit. 
D) is used to plan for the purchase and retirement of property,plant,and equipment. 
A) compares estimated cash flows from operations with planned expenditures. 
B) shows cash inflows and outflows for each capital project. 
C) depicts planned revenues and expenditures for each organizational unit. 
D) is used to plan for the purchase and retirement of property,plant,and equipment.

Exam 16: General Ledger and Reporting System

Which type of graph is the most commonly used to display trends in financial data?

IFRS stands for

Variances for variable costs will be misleading when the planned output differs from budgeted output.A solution to this problem would be

Which of the following are used to document entries made to update the general ledger?

Which of the following controls can minimize the threat of poorly designed reports and graphs?

Which item below is not considered a major input to the general ledger and reporting system?

Identify the adjusting entry that is made at the end of an accounting period to reflect an exchange of cash prior to the performance of a related event is classified as a(n)

Organizations should set their balanced scorecard targets to reflect industry benchmark values.

Identify the most correct statement with regard to how the various accounting subsystems update the general ledger.

Which of the following balanced scorecard dimensions provides measures on how well the organization is generating sales?

How is a balanced scorecard used to assess organizational performance?

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "Your journal entry must be a numeric value.Please reenter." This is an example of a

Immediately after the adjusting entries are posted,the next step in the general ledger and reporting system is to prepare

Adjusting entries that reflect a change in accounting principle used to value inventories are classified as

A major way in which IFRS differs from GAAP that will affect the design of a company's general ledger and reporting system is an IFRS principle known as

Cash is a component of the adjusting entry.

Adjusting entries that are made to reflect differences between the actual and recorded value of an asset or a change in accounting principle are called

Adjusting entries that are made to counteract the effects of errors found in the general ledger are called

Which of the following scenarios will not be allowed under IFRS?

The operating budget

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

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