Question 1

A subsidiary ledger

Accepted Answer

A) is used to record infrequent or non-routine transactions. 
B) simplifies the process of recoding large numbers of repetitive transactions. 
C) records all detailed data for any general ledger account that has individual sub-accounts. 
D) contains summary-level data for every account of the organization. 
A) is used to record infrequent or non-routine transactions. 
B) simplifies the process of recoding large numbers of repetitive transactions. 
C) records all detailed data for any general ledger account that has individual sub-accounts. 
D) contains summary-level data for every account of the organization.

Question 2

The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi Geeky.Since 1996,the owner,Glamdring Elfthrall,has leveraged computer technology to provide a superior level of customer service.In particular,the store's database system was designed to make detailed information about each individual action figure's characteristics easily accessible.Price information and condition are also provided for each inventory item.In this database,the data about an individual figure's price is stored in a(an)

Accepted Answer

A) entity. 
B) attribute. 
C) field. 
D) record. 
A) entity. 
B) attribute. 
C) field. 
D) record.

Question 3

What is the purpose of source documents? What controls are embedded in source documents? Give two examples of source documents.

Accepted Answer

The primary purpose of source documents

Question 4

Which of the following types of reports would most likely be reviewed by management on an exception basis?

Accepted Answer

A) Cash flow 
B) Quality assurance 
C) Pro forma balance sheet 
D) Income statement 
A) Cash flow 
B) Quality assurance 
C) Pro forma balance sheet 
D) Income statement

Question 5

What is the major difference between the revenue and the expenditure cycle?

Accepted Answer

A) The revenue cycle includes marketing activities; the expenditure cycle does not. 
B) In the revenue cycle,cash is received; in the expenditure cycle cash is paid out. 
C) The expenditure cycle includes paying employees. 
D) The revenue cycle includes the activity of obtaining funds from investors. 
A) The revenue cycle includes marketing activities; the expenditure cycle does not. 
B) In the revenue cycle,cash is received; in the expenditure cycle cash is paid out. 
C) The expenditure cycle includes paying employees. 
D) The revenue cycle includes the activity of obtaining funds from investors.

Question 6

What operational information should an AIS be capable of providing to management?

Accepted Answer

Some examples are - reports about invent

Question 7

Variances to the budget should be interpreted by using the principle of

Accepted Answer

A) management by exception. 
B) management by objectives. 
C) management by exemption. 
D) exceptions to variances. 
A) management by exception. 
B) management by objectives. 
C) management by exemption. 
D) exceptions to variances.

Question 8

Certain documents or forms are generated and/or processed with each transaction cycle.The collection of job time tickets or time sheets is part of which transaction cycle?

Accepted Answer

A) the revenue cycle 
B) the production cycle 
C) the human resources cycle 
D) the expenditure cycle 
A) the revenue cycle 
B) the production cycle 
C) the human resources cycle 
D) the expenditure cycle

Question 9

Periodic updating of the data stored about resources and agents is

Accepted Answer

A) On-line processing 
B) real-time processing 
C) batch processing 
D) data processing 
A) On-line processing 
B) real-time processing 
C) batch processing 
D) data processing

Question 10

In a chart of accounts using three digits for each account,each numeric digit has meaning to users of the AIS.For example,a numeric digit may represent either a major category of accounts,a primary financial subaccount within each category,or a specific account into which transaction data will be posted.Using this example,which digit position would best represent a primary financial subaccount within an account category?

Accepted Answer

A) first 
B) second 
C) third 
D) fourth 
A) first 
B) second 
C) third 
D) fourth

Question 11

A well-designed data processing cycle should collect data connected with three facets of business activity.Name the three facets.

Accepted Answer

The three facets of business a

Question 12

Groups of related business activities such as the acquisition of merchandise and payment of vendors are called

Accepted Answer

A) transaction cycles. 
B) economic cycles. 
C) business events. 
D) transactions. 
A) transaction cycles. 
B) economic cycles. 
C) business events. 
D) transactions.

Question 13

The business owners obtain financing from outside investors,which results in an inflow of cash into the company.This transaction is considered to be part of which cycle?

Accepted Answer

A) the revenue cycle 
B) the payroll cycle 
C) the production cycle 
D) the financing cycle 
A) the revenue cycle 
B) the payroll cycle 
C) the production cycle 
D) the financing cycle

Question 14

The general ledger

Accepted Answer

A) is used to record infrequent or non-routine transactions. 
B) simplifies the process of recoding large numbers of repetitive transactions. 
C) records all detailed data for any general ledger account that has individual sub-accounts. 
D) contains summary-level data for every account of the organization. 
A) is used to record infrequent or non-routine transactions. 
B) simplifies the process of recoding large numbers of repetitive transactions. 
C) records all detailed data for any general ledger account that has individual sub-accounts. 
D) contains summary-level data for every account of the organization.

Question 15

The coding method used for checks and receipts is called a

Accepted Answer

A) group code. 
B) block code. 
C) data code. 
D) sequence code. 
A) group code. 
B) block code. 
C) data code. 
D) sequence code.

Question 16

Name the major transaction cycles.

Accepted Answer

The major transaction cycles a

Question 17

Callow Youth Clothing is a boutique retailer located in Estes Park,Colorado.During the peak tourist season,it has average daily cash and credit card sales in excess of $5,000.What is the best way for this business to ensure that sales data entry is efficient and accurate?

Accepted Answer

A) Well-designed paper forms 
B) Source data automation 
C) Turnaround documents 
D) Sequentially numbered forms 
A) Well-designed paper forms 
B) Source data automation 
C) Turnaround documents 
D) Sequentially numbered forms

Question 18

The transaction cycles relate to one another and interface with this to generate information for both management and external parties.

Accepted Answer

A) general ledger and reporting system 
B) accounting information systems 
C) computer processor 
D) human resources cycle 
A) general ledger and reporting system 
B) accounting information systems 
C) computer processor 
D) human resources cycle

Question 19

Which of the following is an example of an ERP system?

Accepted Answer

A) Alex uses a sophisticated information system to keep track of all the financial data generated by her bakery.She is considering opening a new bakery on the east side of town. 
B) Betty has a system that keeps track of the accounts payable and receivable for her plumbing business.At the end of the year,it allows her to prepare her taxes in two hours. 
C) Charlie keeps records of all his business expenses in a shoe box.Each week he enters all of the data into spreadsheets that automatically generate orders based on preset inventory triggers.Production quotas for the coming week are also automatically generated by customer orders. 
D) Doug is a free-lance photographer.He keeps records of all expenses and revenues on his cell phone and then emails them to himself every month.The files are stored on his personal computer and backed up to CD quarterly. 
A) Alex uses a sophisticated information system to keep track of all the financial data generated by her bakery.She is considering opening a new bakery on the east side of town. 
B) Betty has a system that keeps track of the accounts payable and receivable for her plumbing business.At the end of the year,it allows her to prepare her taxes in two hours. 
C) Charlie keeps records of all his business expenses in a shoe box.Each week he enters all of the data into spreadsheets that automatically generate orders based on preset inventory triggers.Production quotas for the coming week are also automatically generated by customer orders. 
D) Doug is a free-lance photographer.He keeps records of all expenses and revenues on his cell phone and then emails them to himself every month.The files are stored on his personal computer and backed up to CD quarterly.

Question 20

Source documents generally help to improve accuracy in transaction processing because

Accepted Answer

A) they specify which information to collect due to their structure. 
B) standard information is preprinted on the document. 
C) they provide directions and steps for completing the form. 
D) All of the above are correct. 
A) they specify which information to collect due to their structure. 
B) standard information is preprinted on the document. 
C) they provide directions and steps for completing the form. 
D) All of the above are correct.

A subsidiary ledger

What is the purpose of source documents? What controls are embedded in source documents? Give two examples of source documents.

Which of the following types of reports would most likely be reviewed by management on an exception basis?

What is the major difference between the revenue and the expenditure cycle?

What operational information should an AIS be capable of providing to management?

Variances to the budget should be interpreted by using the principle of

Certain documents or forms are generated and/or processed with each transaction cycle.The collection of job time tickets or time sheets is part of which transaction cycle?

Periodic updating of the data stored about resources and agents is

A well-designed data processing cycle should collect data connected with three facets of business activity.Name the three facets.

Groups of related business activities such as the acquisition of merchandise and payment of vendors are called

The business owners obtain financing from outside investors,which results in an inflow of cash into the company.This transaction is considered to be part of which cycle?

The general ledger

The coding method used for checks and receipts is called a

Name the major transaction cycles.

Callow Youth Clothing is a boutique retailer located in Estes Park,Colorado.During the peak tourist season,it has average daily cash and credit card sales in excess of $5,000.What is the best way for this business to ensure that sales data entry is efficient and accurate?

The transaction cycles relate to one another and interface with this to generate information for both management and external parties.

Which of the following is an example of an ERP system?

Source documents generally help to improve accuracy in transaction processing because

Accounting Information Systems

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Control and Accounting Information Systems

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

Auditing Computer-Based Informtion Systems

The Revenue Cycle: Sales an Cash Collections

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

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

Exam 2: Overview of Business Processes

A subsidiary ledger

What is the purpose of source documents? What controls are embedded in source documents? Give two examples of source documents.

Which of the following types of reports would most likely be reviewed by management on an exception basis?

What is the major difference between the revenue and the expenditure cycle?

What operational information should an AIS be capable of providing to management?

Variances to the budget should be interpreted by using the principle of

Certain documents or forms are generated and/or processed with each transaction cycle.The collection of job time tickets or time sheets is part of which transaction cycle?

Periodic updating of the data stored about resources and agents is

A well-designed data processing cycle should collect data connected with three facets of business activity.Name the three facets.

Groups of related business activities such as the acquisition of merchandise and payment of vendors are called

The business owners obtain financing from outside investors,which results in an inflow of cash into the company.This transaction is considered to be part of which cycle?

The general ledger

The coding method used for checks and receipts is called a

Name the major transaction cycles.

Callow Youth Clothing is a boutique retailer located in Estes Park,Colorado.During the peak tourist season,it has average daily cash and credit card sales in excess of $5,000.What is the best way for this business to ensure that sales data entry is efficient and accurate?

The transaction cycles relate to one another and interface with this to generate information for both management and external parties.

Which of the following is an example of an ERP system?

Source documents generally help to improve accuracy in transaction processing because

Accounting Information Systems

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Control and Accounting Information Systems

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

Auditing Computer-Based Informtion Systems

The Revenue Cycle: Sales an Cash Collections

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

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