Question 1

Which of the following balanced scorecard dimensions provides measures on new products?

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 2

Which of the following balanced scorecard dimensions provides measures on how well the organization is working to improve customer satisfaction and become the preferred supplier for key customers?

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 3

Periodic account reconciliations are a control that can be used to reduce the risk of employees creating unauthorized adjusting entries.

Accepted Answer

A) True 
 B)False

Question 4

Budgets used for internal planning purposes and performance evaluation should be developed on the basis of

Accepted Answer

A) responsibility accounting. 
B) generally accepted accounting principles. 
C) financial accounting standards. 
D) managerial accounting standards. 
A) responsibility accounting. 
B) generally accepted accounting principles. 
C) financial accounting standards. 
D) managerial accounting standards.

Question 5

Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

Accepted Answer

THREAT 1: Errors in updating the general

Question 6

Which of the following are appropriate controls for the general ledger and reporting system?

Accepted Answer

A) Using well-designed documents and records. 
B) Online data entry with the use of appropriate edit checks. 
C) Prenumbering documents and accounting for the sequence numbers. 
D) All of the above are appropriate. 
A) Using well-designed documents and records. 
B) Online data entry with the use of appropriate edit checks. 
C) Prenumbering documents and accounting for the sequence numbers. 
D) All of the above are appropriate.

Question 7

Communications technology and the Internet can be used to reduce the time and costs involved in disseminating financial statement information.Users of such financial information still struggle in that many recipients have different information delivery requirements and may have to manually reenter the information into their own decision analysis tools.The ideal solution to solve these problems and efficiently transmit financial information via the Internet is to use

Accepted Answer

A) HTML. 
B) XML. 
C) ACH. 
D) XBRL. 
A) HTML. 
B) XML. 
C) ACH. 
D) XBRL.

Question 8

What system privileges should an employee involved in the general ledger and reporting system be given?

Accepted Answer

A) General privileges to create,delete,update,or modify data. 
B) No privileges permitting the creation,deletion,updating,or modification of data. 
C) Only the specific privileges necessary to perform an employee's assigned duties. 
D) Read-only privileges. 
A) General privileges to create,delete,update,or modify data. 
B) No privileges permitting the creation,deletion,updating,or modification of data. 
C) Only the specific privileges necessary to perform an employee's assigned duties. 
D) Read-only privileges.

Question 9

Which of the following is true about accounting for fixed assets?

Accepted Answer

A) Depreciation expense under IFRS will likely be higher than under GAAP,because acquisitions of assets with multiple components must be separately depreciated under IFRS,whereas under GAAP assets could be bundled and depreciated over the longest of the useful life for any of the components. 
B) IFRS doesn't allow capitalization of any asset that separately accounts for less than 20% of total assets. 
C) Depreciation expense under IFRS will likely be less than under GAAP,because standards for depreciable lives on asset classes are much longer than under GAAP. 
D) IFRS and GAAP account for fixed assets in much the same way. 
A) Depreciation expense under IFRS will likely be higher than under GAAP,because acquisitions of assets with multiple components must be separately depreciated under IFRS,whereas under GAAP assets could be bundled and depreciated over the longest of the useful life for any of the components. 
B) IFRS doesn't allow capitalization of any asset that separately accounts for less than 20% of total assets. 
C) Depreciation expense under IFRS will likely be less than under GAAP,because standards for depreciable lives on asset classes are much longer than under GAAP. 
D) IFRS and GAAP account for fixed assets in much the same way.

Question 10

Performance reports for cost centers should compare actual versus budget ________ costs.

Accepted Answer

A) controllable 
B) uncontrollable 
C) fixed 
D) variable 
A) controllable 
B) uncontrollable 
C) fixed 
D) variable

Question 11

What control procedure(s)should be used to reduce the risk of unauthorized disclosure of the financial statements?

Accepted Answer

A) Multifactor authentication. 
B) Physical security. 
C) Encryption. 
D) All of the above. 
A) Multifactor authentication. 
B) Physical security. 
C) Encryption. 
D) All of the above.

Question 12

Which of the following balanced scorecard dimensions provides measures on how efficiently and effectively the organization is performing key business processes?

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 13

Corrections are entries made to correct errors found in

Accepted Answer

A) all journals. 
B) special journals. 
C) the general ledger. 
D) the financial statements. 
A) all journals. 
B) special journals. 
C) the general ledger. 
D) the financial statements.

Question 14

Who should provide the adjusting entries in a well-designed general ledger and reporting system?

Accepted Answer

A) Various user departments. 
B) The treasurer department. 
C) Anyone who has access to the other major AIS subsystems. 
D) The controller office. 
A) Various user departments. 
B) The treasurer department. 
C) Anyone who has access to the other major AIS subsystems. 
D) The controller office.

Question 15

If you believe a general ledger account was not adjusted properly or at all,you should prepare a general ledger control report listing journal vouchers in

Accepted Answer

A) numerical sequence. 
B) chronological order. 
C) general ledger account number order. 
D) any order,since you have to review them all anyway. 
A) numerical sequence. 
B) chronological order. 
C) general ledger account number order. 
D) any order,since you have to review them all anyway.

Question 16

Which of the following controls can minimize the threat of inaccurate financial statements?

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 17

The benefits of XBRL include

Accepted Answer

A) organizations can publish financial information only once,using standard XBRL tags. 
B) tagged data is readable and interpretable by computers,so users don't need to re-enter data in order to work with it. 
C) Both are benefits of XBRL. 
D) Neither is a benefit of XBRL. 
A) organizations can publish financial information only once,using standard XBRL tags. 
B) tagged data is readable and interpretable by computers,so users don't need to re-enter data in order to work with it. 
C) Both are benefits of XBRL. 
D) Neither is a benefit of XBRL.

Question 18

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The data you have entered does not include a source reference code.Please enter this data before saving." 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 19

At a minimum,a switch to IFRS from GAAP will affect companies' accounting information system by

Accepted Answer

A) requiring companies to increase the processing power of their existing accounting information systems. 
B) requiring IT departments to hire programmers that are fluent in languages besides English. 
C) requiring the creation of additional fields in research and development (R&
D) records to capture information about the stage of research and development that costs are incurred in. 
D) requiring firms to completely redesign their existing accounting information systems because current systems are not compatible with IFRS accounting principles. 
A) requiring companies to increase the processing power of their existing accounting information systems. 
B) requiring IT departments to hire programmers that are fluent in languages besides English. 
C) requiring the creation of additional fields in research and development (R&
D) records to capture information about the stage of research and development that costs are incurred in. 
D) requiring firms to completely redesign their existing accounting information systems because current systems are not compatible with IFRS accounting principles.

Question 20

Recording interest earned on an investment is an example of which type of adjusting journal entry?

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.

Exam 16: General Ledger and Reporting System

Which of the following balanced scorecard dimensions provides measures on new products?

Which of the following balanced scorecard dimensions provides measures on how well the organization is working to improve customer satisfaction and become the preferred supplier for key customers?

Periodic account reconciliations are a control that can be used to reduce the risk of employees creating unauthorized adjusting entries.

Budgets used for internal planning purposes and performance evaluation should be developed on the basis of

Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

Which of the following are appropriate controls for the general ledger and reporting system?

What system privileges should an employee involved in the general ledger and reporting system be given?

Which of the following is true about accounting for fixed assets?

Performance reports for cost centers should compare actual versus budget ________ costs.

What control procedure(s)should be used to reduce the risk of unauthorized disclosure of the financial statements?

Which of the following balanced scorecard dimensions provides measures on how efficiently and effectively the organization is performing key business processes?

Corrections are entries made to correct errors found in

Who should provide the adjusting entries in a well-designed general ledger and reporting system?

If you believe a general ledger account was not adjusted properly or at all,you should prepare a general ledger control report listing journal vouchers in

Which of the following controls can minimize the threat of inaccurate financial statements?

The benefits of XBRL include

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The data you have entered does not include a source reference code.Please enter this data before saving." This is an example of a

At a minimum,a switch to IFRS from GAAP will affect companies' accounting information system by

Recording interest earned on an investment is an example of which type of adjusting journal entry?

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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