Question 1

Financial statements are prepared in a certain sequence.Which statement is prepared first?

Accepted Answer

A) The adjusted trial balance. 
B) The income statement. 
C) The balance sheet. 
D) The statement of cash flows. 
A) The adjusted trial balance. 
B) The income statement. 
C) The balance sheet. 
D) The statement of cash flows.

Question 2

Identify the year the SEC will require American companies to switch from U.S.-based GAAP to IFRS as the basis for preparing financial statements.

Accepted Answer

A) 2016 
B) 2018 
C) 2020 
D) At this point it is unclear when the SEC will require American companies to implement IFRS, though the SEC remains committed to requiring U.S. companies use IFRS at some point. 
A) 2016 
B) 2018 
C) 2020 
D) At this point it is unclear when the SEC will require American companies to implement IFRS, though the SEC remains committed to requiring U.S. companies use IFRS at some point.

Question 3

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 4

Explain the purpose of a journal voucher file.

Accepted Answer

A journal voucher is a form on which jou

Question 5

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 6

The general ledger system of an organization should be designed to serve the information requirements of both internal and external users.This means that the system should support

Accepted Answer

A) producing expansive regular periodic reports to cover all information needs. 
B) the real-time inquiry needs of all users. 
C) producing regular periodic reports and respond to real-time inquiry needs. 
D) access by investors and creditors of the organization to general ledger balances. 
A) producing expansive regular periodic reports to cover all information needs. 
B) the real-time inquiry needs of all users. 
C) producing regular periodic reports and respond to real-time inquiry needs. 
D) access by investors and creditors of the organization to general ledger balances.

Question 7

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 8

Which of the following statements is true about the chart below?

Accepted Answer

A) The x-axis is in reverse chronological order, which violates a principle of proper graph design. 
B) The chart appears to conform to the principles of proper graph design. 
C) The vertical axis doesn't appear to start at the origin (zero). 
D) The chart used 2-D bars instead of 3-D, which violates a principle of proper graph design. 
A) The x-axis is in reverse chronological order, which violates a principle of proper graph design. 
B) The chart appears to conform to the principles of proper graph design. 
C) The vertical axis doesn't appear to start at the origin (zero). 
D) The chart used 2-D bars instead of 3-D, which violates a principle of proper graph design.

Question 9

The ________ is the managerial report that shows planned cash inflows and outflows for major investments or acquisitions.

Accepted Answer

A) journal voucher list 
B) statement of cash flows 
C) operating budget 
D) capital expenditures budget 
A) journal voucher list 
B) statement of cash flows 
C) operating budget 
D) capital expenditures budget

Question 10

Performance reports for sales departments should compare actual revenue versus budgeted

Accepted Answer

A) revenue. 
B) cost. 
C) return on investment. 
D) profit. 
A) revenue. 
B) cost. 
C) return on investment. 
D) profit.

Question 11

If you believe not all adjusting entries were posted in the general ledger,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 12

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 13

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.

Question 14

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.

Question 15

How is an audit trail used in the general ledger and reporting system?

Accepted Answer

An audit trail shows the path of a trans

Question 16

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 17

Which of the following is true about IFRS?

Accepted Answer

A) There is a global trend towards using IFRS for reporting purposes, though U.S. companies are not currently required to do so. 
B) The switch to IFRS is required by the Sarbanes-Oxley Act. 
C) IFRS is only slightly different than U.S. GAAP. 
D) The switch to IFRS is cosmetic only-there isn't any real impact on AIS. 
A) There is a global trend towards using IFRS for reporting purposes, though U.S. companies are not currently required to do so. 
B) The switch to IFRS is required by the Sarbanes-Oxley Act. 
C) IFRS is only slightly different than U.S. GAAP. 
D) The switch to IFRS is cosmetic only-there isn't any real impact on AIS.

Question 18

Depreciation expense and bad debt expense are examples of which type of adjusting journal entry?

Accepted Answer

A) Deferrals. 
B) Accruals. 
C) Closing. 
D) Estimates. 
A) Deferrals. 
B) Accruals. 
C) Closing. 
D) Estimates.

Question 19

Which of the following statements is not true about an XBRL instance document?

Accepted Answer

A) An instance document includes instruction code as to how the document should be physically arranged and displayed. 
B) An instance document contains facts about specific financial statement line items. 
C) An instance document uses separate tags for each specific element. 
D) An instance document can be used to tag financial and nonfinancial elements. 
A) An instance document includes instruction code as to how the document should be physically arranged and displayed. 
B) An instance document contains facts about specific financial statement line items. 
C) An instance document uses separate tags for each specific element. 
D) An instance document can be used to tag financial and nonfinancial elements.

Question 20

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

Exam 16: General Ledger and Reporting System

Financial statements are prepared in a certain sequence.Which statement is prepared first?

Identify the year the SEC will require American companies to switch from U.S.-based GAAP to IFRS as the basis for preparing financial statements.

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

Explain the purpose of a journal voucher file.

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

The general ledger system of an organization should be designed to serve the information requirements of both internal and external users.This means that the system should support

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

Which of the following statements is true about the chart below?

The ________ is the managerial report that shows planned cash inflows and outflows for major investments or acquisitions.

Performance reports for sales departments should compare actual revenue versus budgeted

If you believe not all adjusting entries were posted in the general ledger,you should prepare a general ledger control report listing journal vouchers in

The benefits of XBRL include

IFRS stands for

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

How is an audit trail used in 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 IFRS?

Depreciation expense and bad debt expense are examples of which type of adjusting journal entry?

Which of the following statements is not true about an XBRL instance document?

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

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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