Question 1

The general ledger and reporting system consists of the ________ involved in ________ the general ledger and ________ reports.

Accepted Answer

A)  business transactions; updating; processing 
B)  data processing; business transactions for; printing 
C)  information processing; updating; creating 
D)  business transactions; data processing; preparing 
A)  business transactions; updating; processing 
B)  data processing; business transactions for; printing 
C)  information processing; updating; creating 
D)  business transactions; data processing; preparing

Question 2

Which of the following statements is not true regarding XBRL?

Accepted Answer

A)  XBRL is a variant of XML. 
B)  XBRL is specifically designed for use in communicating the content of financial data. 
C)  XBRL creates unique tags for each data item. 
D)  XBRL's adoption will require accountants and systems professionals tag data for their clients. 
A)  XBRL is a variant of XML. 
B)  XBRL is specifically designed for use in communicating the content of financial data. 
C)  XBRL creates unique tags for each data item. 
D)  XBRL's adoption will require accountants and systems professionals tag data for their clients.

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)  calling all costs fixed. 
B)  to use flexible budgeting. 
C)  better prediction of output. 
D)  to eliminate the budgeting process. 
A)  calling all costs fixed. 
B)  to use flexible budgeting. 
C)  better prediction of output. 
D)  to eliminate the budgeting process.

Question 4

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 5

Identify one way "rainbow tables" are often used.

Accepted Answer

A)  to discover plaintext passwords associated with a hash 
B)  to integrate different tables into one, master table 
C)  to perform a zero-balance check 
D)  to ensure referential integrity of all the associated tables 
A)  to discover plaintext passwords associated with a hash 
B)  to integrate different tables into one, master table 
C)  to perform a zero-balance check 
D)  to ensure referential integrity of all the associated tables

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 re-enter data into 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 re-enter data into order to work with it. 
C)  Both are benefits of XBRL. 
D)  Neither is a benefit of XBRL.

Question 9

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 account number referenced in your journal entry does not exist.Create a new account?" This is an example of a

Accepted Answer

A)  validity check. 
B)  closed loop verification. 
C)  zero-balance check. 
D)  completeness test. 
A)  validity check. 
B)  closed loop verification. 
C)  zero-balance check. 
D)  completeness test.

Question 10

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 11

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 12

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 13

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 14

What is responsibility accounting?

Accepted Answer

Responsibility accounting involves the r

Question 15

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 16

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)  revaluation entry. 
D)  correcting entry. 
A)  accrual entry. 
B)  deferral entry. 
C)  revaluation entry. 
D)  correcting entry.

Question 17

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 18

As responsibility reports are rolled up into reports for higher level executives,they

Accepted Answer

A)  become less detailed. 
B)  become more detailed. 
C)  become narrower in scope. 
D)  look about the same. 
A)  become less detailed. 
B)  become more detailed. 
C)  become narrower in scope. 
D)  look about the same.

Question 19

Which of the following is not one of the principles of proper graph design for bar charts?

Accepted Answer

A)  Include data values with each element. 
B)  Use 3-D rather than 2-D bars to make reading easier. 
C)  Use colors or shades instead of patterns to represent different variables. 
D)  Use titles that summarize the basic message. 
A)  Include data values with each element. 
B)  Use 3-D rather than 2-D bars to make reading easier. 
C)  Use colors or shades instead of patterns to represent different variables. 
D)  Use titles that summarize the basic message.

Question 20

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.

Exam 16: General Ledger and Reporting System

The general ledger and reporting system consists of the ________ involved in ________ the general ledger and ________ reports.

Which of the following statements is not true regarding XBRL?

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

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

Identify one way "rainbow tables" are often used.

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

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

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 account number referenced in your journal entry does not exist.Create a new account?" This is an example of a

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 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

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

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

What is responsibility accounting?

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

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)

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

As responsibility reports are rolled up into reports for higher level executives,they

Which of the following is not one of the principles of proper graph design for bar charts?

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

Accounting Information Systems: an Overview

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

Filters

The general ledger and reporting system consists of the involved in the general ledger and reports.