Question 1

What type of file is used to store data about transactions that have been started but not completed?

Accepted Answer

A)  Transaction 
B)  Master 
C)  Open 
D)  Reference 
A)  Transaction 
B)  Master 
C)  Open 
D)  Reference

Question 2

One of the essential elements of a paper-based accounting system is a chart of accounts.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following defines a cash receipts prelist?

Accepted Answer

A)  A written contract between the shipper and the carrier 
B)  A list of transactions in chronological order 
C)  An element in an accounting system to classify monetary measurements 
D)  A record (by date) of all cash receipts 
A)  A written contract between the shipper and the carrier 
B)  A list of transactions in chronological order 
C)  An element in an accounting system to classify monetary measurements 
D)  A record (by date) of all cash receipts

Question 4

What is the purpose of an open customer invoice file in a computerized system?

Accepted Answer

A)  To store data about customer invoices that have not yet been paid 
B)  To store data about daily sales transactions 
C)  To store data that are used repeatedly for processing transactions 
D)  To store data about customers such as addresses 
A)  To store data about customer invoices that have not yet been paid 
B)  To store data about daily sales transactions 
C)  To store data that are used repeatedly for processing transactions 
D)  To store data about customers such as addresses

Question 5

Which of the following is the best reason for keeping subsidiary ledger accounts current?

Accepted Answer

A)  To compute liquidity ratios 
B)  To prepare financial statements 
C)  To check if a sale will exceed a customer's credit limit 
D)  All of the above 
A)  To compute liquidity ratios 
B)  To prepare financial statements 
C)  To check if a sale will exceed a customer's credit limit 
D)  All of the above

Question 6

With regard to batch v. real-time posting, which of the following is correct?

Accepted Answer

A)  Real-time posting is preferred because it is faster than batch posting. 
B)  Real-time posting has no effect on computer processing time. 
C)  Batch posting is less costly in terms of computer and personnel resources than real-time posting. 
D)  None of the above. 
A)  Real-time posting is preferred because it is faster than batch posting. 
B)  Real-time posting has no effect on computer processing time. 
C)  Batch posting is less costly in terms of computer and personnel resources than real-time posting. 
D)  None of the above.

Question 7

Which of the following defines a master file in a computerized system?

Accepted Answer

A)  A file for storing data on pending items such as sales orders 
B)  A file for storing data on day-to-day operations such as sales 
C)  A file for storing detailed information about general ledger control accounts (similar to a subsidiary ledger) 
D)  A file for storing backup data 
A)  A file for storing data on pending items such as sales orders 
B)  A file for storing data on day-to-day operations such as sales 
C)  A file for storing detailed information about general ledger control accounts (similar to a subsidiary ledger) 
D)  A file for storing backup data

Question 8

What type of file provides a permanent record of the transactions recorded during an accounting period?

Accepted Answer

A)  Transaction file 
B)  Master 
C)  Open file 
D)  Archive file 
A)  Transaction file 
B)  Master 
C)  Open file 
D)  Archive file

Question 9

Which of the following is a characteristic of real-time posting/updating?

Accepted Answer

A)  Real-time posting provides for the immediate update of the master file upon entering of transaction data. 
B)  Real-time posting preceded batch posting because of its simplicity. 
C)  Real-time posting results in systems that are sensitive to error contamination. 
D)  Both A and C are characteristics of real-time posting/updating. 
A)  Real-time posting provides for the immediate update of the master file upon entering of transaction data. 
B)  Real-time posting preceded batch posting because of its simplicity. 
C)  Real-time posting results in systems that are sensitive to error contamination. 
D)  Both A and C are characteristics of real-time posting/updating.

Question 10

As with general journals in a paper-based accounting system, the main purpose of subsidiary master files in a computerized system is to store detailed information about general control accounts.

Accepted Answer

A) True 
 B)False

Question 11

An example of a source document is a receiving report.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statement(s) about real-time posting is (are) correct?

Accepted Answer

A)  Real-time posting requires more computer and personnel resources than batch posting. 
B)  With real-time posting one single error may result in numerous errors. 
C)  Real-time posting allows users to have updated information throughout the business day. 
D)  All of these are true about real-time posting. 
A)  Real-time posting requires more computer and personnel resources than batch posting. 
B)  With real-time posting one single error may result in numerous errors. 
C)  Real-time posting allows users to have updated information throughout the business day. 
D)  All of these are true about real-time posting.

Question 13

Which of the following is not a current trend in computerized accounting systems?

Accepted Answer

A)  A point-of-sale terminal in a sales department 
B)  An automated teller machine in a bank 
C)  An electronic time clock located in an operating facility 
D)  A spreadsheet report of financial information 
A)  A point-of-sale terminal in a sales department 
B)  An automated teller machine in a bank 
C)  An electronic time clock located in an operating facility 
D)  A spreadsheet report of financial information

Question 14

Which of the following would least likely benefit from real-time posting?

Accepted Answer

A)  Bank account balances 
B)  Property and depreciation 
C)  Customer accounts receivable 
D)  Merchandise inventory 
A)  Bank account balances 
B)  Property and depreciation 
C)  Customer accounts receivable 
D)  Merchandise inventory

Question 15

The major difference in outputs from a computerized system and a paper-based system is the number and speed with which outputs from a computerized system can be generated.

Accepted Answer

A) True 
 B)False

Question 16

The balance sheet reports the profitability of an organization for a stated period of time such as a month or a year.

Accepted Answer

A) True 
 B)False

Question 17

Below are some of the basic activities in a paper-based accounting system:
i. 	Post (copy) data from journals to the appropriate accounts in the general ledger
	ii.	Record transactions in the appropriate journals
iii.	Post (copy) data from journals to the appropriate accounts in the subsidiary ledgers
	iv.	Complete source documents

Accepted Answer

A)  iv, ii, iii, i 
B)  ii, i, iii, iv 
C)  iv, ii, i, iii 
D)  ii, iv, iii, i 
A)  iv, ii, iii, i 
B)  ii, i, iii, iv 
C)  iv, ii, i, iii 
D)  ii, iv, iii, i

Question 18

In regard to real-time and batch posting, or updating, which of the following statements is correct?

Accepted Answer

A)  Real-time posting is always preferred because batch posting is slow. 
B)  A system may use both kinds of posting. 
C)  A system can do one kind of posting or the other, not both. 
D)  A system will NOT use batch posting if the system is installed on a mainframe computer. 
A)  Real-time posting is always preferred because batch posting is slow. 
B)  A system may use both kinds of posting. 
C)  A system can do one kind of posting or the other, not both. 
D)  A system will NOT use batch posting if the system is installed on a mainframe computer.

Question 19

List at least three of the six basic activities of a computerized accounting system.

Accepted Answer

Students may list any of the following:

Question 20

As accountants, we are interested in how a file is organized in a logical, or conceptual, sense as opposed to the how the file is organized physically.

Accepted Answer

A) True 
 B)False

What type of file is used to store data about transactions that have been started but not completed?

One of the essential elements of a paper-based accounting system is a chart of accounts.

Which of the following defines a cash receipts prelist?

What is the purpose of an open customer invoice file in a computerized system?

Which of the following is the best reason for keeping subsidiary ledger accounts current?

With regard to batch v. real-time posting, which of the following is correct?

Which of the following defines a master file in a computerized system?

What type of file provides a permanent record of the transactions recorded during an accounting period?

Which of the following is a characteristic of real-time posting/updating?

As with general journals in a paper-based accounting system, the main purpose of subsidiary master files in a computerized system is to store detailed information about general control accounts.

An example of a source document is a receiving report.

Which of the following statement(s) about real-time posting is (are) correct?

Which of the following is not a current trend in computerized accounting systems?

Which of the following would least likely benefit from real-time posting?

The major difference in outputs from a computerized system and a paper-based system is the number and speed with which outputs from a computerized system can be generated.

The balance sheet reports the profitability of an organization for a stated period of time such as a month or a year.

In regard to real-time and batch posting, or updating, which of the following statements is correct?

List at least three of the six basic activities of a computerized accounting system.

As accountants, we are interested in how a file is organized in a logical, or conceptual, sense as opposed to the how the file is organized physically.

Significance of Accounting Information Systems and the Accountants Role

Accounting Systems Documentation

Data Flows, Activities, and Structure of Accounting Systems

Reporting Process, Coding Methods, and Audit Trails

Internal Control and Risk Assessment

Control Activities

The Financial Process

The Revenue Process

The Purchasing Process

The Inventory Process

Database Structure of Accounting Systems

Developing a Relational Database for an Accounting Information System

Electronic Business

Ais Selection and Implementation

Filters

Exam 3: Essential Elements and Basic Activities of Accounting Systems

What type of file is used to store data about transactions that have been started but not completed?

One of the essential elements of a paper-based accounting system is a chart of accounts.

Which of the following defines a cash receipts prelist?

What is the purpose of an open customer invoice file in a computerized system?

Which of the following is the best reason for keeping subsidiary ledger accounts current?

With regard to batch v. real-time posting, which of the following is correct?

Which of the following defines a master file in a computerized system?

What type of file provides a permanent record of the transactions recorded during an accounting period?

Which of the following is a characteristic of real-time posting/updating?

As with general journals in a paper-based accounting system, the main purpose of subsidiary master files in a computerized system is to store detailed information about general control accounts.

An example of a source document is a receiving report.

Which of the following statement(s) about real-time posting is (are) correct?

Which of the following is not a current trend in computerized accounting systems?

Which of the following would least likely benefit from real-time posting?

The major difference in outputs from a computerized system and a paper-based system is the number and speed with which outputs from a computerized system can be generated.

The balance sheet reports the profitability of an organization for a stated period of time such as a month or a year.

In regard to real-time and batch posting, or updating, which of the following statements is correct?

List at least three of the six basic activities of a computerized accounting system.

As accountants, we are interested in how a file is organized in a logical, or conceptual, sense as opposed to the how the file is organized physically.

Significance of Accounting Information Systems and the Accountants Role

Accounting Systems Documentation

Data Flows, Activities, and Structure of Accounting Systems

Reporting Process, Coding Methods, and Audit Trails

Internal Control and Risk Assessment

Control Activities

The Financial Process

The Revenue Process

The Purchasing Process

The Inventory Process

Database Structure of Accounting Systems

Developing a Relational Database for an Accounting Information System

Electronic Business

Ais Selection and Implementation

Filters