Question 1

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 2

True or False: Organizations should set their balanced scorecard targets to reflect industry benchmark values.

Accepted Answer

A) True 
 B)False

Question 3

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 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

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 6

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

Question 7

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 8

Which of the following user groups generally receive information produced by the general ledger and reporting system?

Accepted Answer

A) internal users 
B) external users 
C) inquiry processing by internal or external users 
D) all of the above 
A) internal users 
B) external users 
C) inquiry processing by internal or external users 
D) all of the above

Question 9

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 10

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 11

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

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 12

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 13

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 14

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 15

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 16

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 17

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 18

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 19

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 20

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) none of the above 
A) componentization. 
B) monetization. 
C) securitization. 
D) none of the above

Exam 16: General Ledger and Reporting System

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

True or False: Organizations should set their balanced scorecard targets to reflect industry benchmark values.

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

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

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

Which of the following user groups generally receive information produced by the general ledger and reporting system?

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

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

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

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

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

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

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

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 statements is true about the chart below?

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

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

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

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Systems Documentation Techniques

Relational Databases

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Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

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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

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Introduction to Systems Development and Systems Analysis

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