Question 1

Not all journal entries affect cash flow.Adjusting entries that reflect events that have already occurred,but have no effect on cash,are classified as

Accepted Answer

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

Question 2

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 3

A listing of journal vouchers by numerical sequence,account number,or date is an example of

Accepted Answer

A)  a general ledger control report. 
B)  a budget report. 
C)  a batch to be processed. 
D)  responsibility accounting. 
A)  a general ledger control report. 
B)  a budget report. 
C)  a batch to be processed. 
D)  responsibility accounting.

Question 4

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 5

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 6

Departments that mostly provide services to other units and charge those units for services rendered should be evaluated as ________ centers.

Accepted Answer

A)  cost 
B)  profit 
C)  investment 
D)  revenue 
A)  cost 
B)  profit 
C)  investment 
D)  revenue

Question 7

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

Accepted Answer

A)  deferrals 
B)  accruals 
C)  revaluations 
D)  estimates 
A)  deferrals 
B)  accruals 
C)  revaluations 
D)  estimates

Question 8

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 9

Each specific data item in an XBRL document is called a(n)

Accepted Answer

A)  taxonomy. 
B)  element. 
C)  instance. 
D)  schema. 
A)  taxonomy. 
B)  element. 
C)  instance. 
D)  schema.

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

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 12

Explain the benefits of XBRL.

Accepted Answer

XBRL (Extensible Business Reporting Lang

Question 13

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.

Question 14

What control procedure(s)should be used to reduce the risk of the destruction of financial statement master data?

Accepted Answer

A)  multifactor authentication 
B)  backup and disaster recovery 
C)  encryption 
D)  all of the above 
A)  multifactor authentication 
B)  backup and disaster recovery 
C)  encryption 
D)  all of the above

Question 15

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 16

A type of data entry control that would ensure that adjusting entries are posted to existing general ledger accounts is called a(n)________ check.

Accepted Answer

A)  validity 
B)  existence 
C)  closed loop verification 
D)  reasonableness 
A)  validity 
B)  existence 
C)  closed loop verification 
D)  reasonableness

Question 17

Which of the following tasks are facilitated by maintaining a strong and secure audit trail?

Accepted Answer

A)  tracing a transaction from original source document to the general ledger to a report 
B)  tracing an item in a report back through the general ledger to the original source document 
C)  tracing changes in general ledger accounts from beginning to ending balances 
D)  All of the above are facilitated by the audit trail. 
A)  tracing a transaction from original source document to the general ledger to a report 
B)  tracing an item in a report back through the general ledger to the original source document 
C)  tracing changes in general ledger accounts from beginning to ending balances 
D)  All of the above are facilitated by the audit trail.

Question 18

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 19

The balanced scorecard attempts to solve what major issue associated with traditional accounting reports?

Accepted Answer

A)  Traditional accounting reports focus too narrowly on financial performance. 
B)  Traditional accounting reports are not easily understood by non-accountants. 
C)  Traditional accounting reports are expensive to produce. 
D)  Traditional accounting reports are produced too slowly to provide value. 
A)  Traditional accounting reports focus too narrowly on financial performance. 
B)  Traditional accounting reports are not easily understood by non-accountants. 
C)  Traditional accounting reports are expensive to produce. 
D)  Traditional accounting reports are produced too slowly to provide value.

Question 20

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.

Exam 16: General Ledger and Reporting System

Not all journal entries affect cash flow.Adjusting entries that reflect events that have already occurred,but have no effect on cash,are classified as

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

A listing of journal vouchers by numerical sequence,account number,or date is an example of

Which of the following is true about IFRS?

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

Departments that mostly provide services to other units and charge those units for services rendered should be evaluated as ________ centers.

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

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

Each specific data item in an XBRL document is called a(n)

Performance reports for sales departments should compare actual revenue versus budgeted

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

Explain the benefits of XBRL.

The operating budget

What control procedure(s)should be used to reduce the risk of the destruction of financial statement master data?

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

A type of data entry control that would ensure that adjusting entries are posted to existing general ledger accounts is called a(n)________ check.

Which of the following tasks are facilitated by maintaining a strong and secure audit trail?

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

The balanced scorecard attempts to solve what major issue associated with traditional accounting reports?

Corrections are entries made to correct errors found in

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

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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

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Introduction to Systems Development and Systems Analysis

Ais Development Strategies

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