Question 1

Standards are the basis for evaluating actual performance.

Accepted Answer

A) True 
 B)False

Question 2

Which situation indicates an internal control risk in the General Ledger/Financial Reporting Systems (GL/FRS)?

Accepted Answer

A)  the employee who maintains the cash journal computes depreciation expense 
B)  the cash receipts journal voucher is approved by the Treasurer 
C)  the cash receipts journal vouchers are prenumbered and stored in a locked safe 
D)  the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger 
A)  the employee who maintains the cash journal computes depreciation expense 
B)  the cash receipts journal voucher is approved by the Treasurer 
C)  the cash receipts journal vouchers are prenumbered and stored in a locked safe 
D)  the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger

Question 3

What mechanism is used to convey to managers the standards by which their performance will be measured?

Accepted Answer

A)  the responsibility report 
B)  the scheduled report 
C)  the budget 
D)  all of the above 
A)  the responsibility report 
B)  the scheduled report 
C)  the budget 
D)  all of the above

Question 4

Many financial reports produced by organizations are nondiscretionary-publicly traded firms have no choice but to prepare income statements,tax returns,etc.Applications that are part of the management reporting system are discretionary-they are optional.How does this characteristic affect the system?

Accepted Answer

Unlike nondiscretionary reports whose co

Question 5

Which of the following best describes a profit center:

Accepted Answer

A)  authority to make decisions affecting the major determinants of profit,including the power to choose its markets and sources of supply. 
B)  authority to make decisions affecting the major determinants of profit,including the power to choose its markets and sources of supply,and significant control over the amount of invested capital. 
C)  authority to make decisions over the most significant costs of operations,including the power to choose the sources of supply. 
D)  authority to provide specialized support to other units within the organization. 
E)  responsibility for combining the raw materials,direct labor,and other factors of production into a final product. 
A)  authority to make decisions affecting the major determinants of profit,including the power to choose its markets and sources of supply. 
B)  authority to make decisions affecting the major determinants of profit,including the power to choose its markets and sources of supply,and significant control over the amount of invested capital. 
C)  authority to make decisions over the most significant costs of operations,including the power to choose the sources of supply. 
D)  authority to provide specialized support to other units within the organization. 
E)  responsibility for combining the raw materials,direct labor,and other factors of production into a final product.

Question 6

Which statement is not true/

Accepted Answer

A) The journal voucher is the only source of input into the general ledger. 
B) A journal voucher can be used to represent summaries of similar transactions or a single unique transaction. 
C) Journal vouchers are not used to make adjusting entries and closing entries in the general ledger. 
D) Journal vouchers offer a degree of control against unauthorized general ledger entries. 
A) The journal voucher is the only source of input into the general ledger. 
B) A journal voucher can be used to represent summaries of similar transactions or a single unique transaction. 
C) Journal vouchers are not used to make adjusting entries and closing entries in the general ledger. 
D) Journal vouchers offer a degree of control against unauthorized general ledger entries.

Question 7

Describe at least three attributes of an effective report.

Accepted Answer

Effective reports tend to share several

Question 8

Employees who are responsible for a task must have the __________________________ to make decisions within the limits of the responsibility delegated.

Accepted Answer

The answer of Employees who are responsible for a task...

Question 9

A report is said to have information content if it eliminates uncertainty associated with a problem facing the decision maker.

Accepted Answer

A) True 
 B)False

Question 10

Which steps in the Financial Accounting Process are in the correct sequence?

Accepted Answer

A)  record the transaction,post to the ledger,prepare the adjusted trial balance,enter adjusting entries,prepare financial statements 
B)  record the transaction,prepare the unadjusted trial balance,record adjusting journal entries,record closing entries,prepare financial statements 
C)  record the transaction,post to the ledger,record adjusting entries,prepare the unadjusted trial balance,prepare financial statements 
D)  record the transaction,post to the ledger,prepare the adjusted trial balance,prepare financial statements,record closing entries 
A)  record the transaction,post to the ledger,prepare the adjusted trial balance,enter adjusting entries,prepare financial statements 
B)  record the transaction,prepare the unadjusted trial balance,record adjusting journal entries,record closing entries,prepare financial statements 
C)  record the transaction,post to the ledger,record adjusting entries,prepare the unadjusted trial balance,prepare financial statements 
D)  record the transaction,post to the ledger,prepare the adjusted trial balance,prepare financial statements,record closing entries

Question 11

Which of the following management principles affects the management reporting system?

Accepted Answer

A)  formalization of tasks 
B)  authorization 
C)  span of control 
D)  all of the above 
A)  formalization of tasks 
B)  authorization 
C)  span of control 
D)  all of the above

Question 12

Which of the following statements is NOT true?

Accepted Answer

A)  XML stands for eXperimental Markup Language. 
B)  XML is a is a meta-language for describing markup languages. 
C)  Unlike HTML,XML is capable of storing data in relational form. 
D)  Any markup language can be created using XML 
A)  XML stands for eXperimental Markup Language. 
B)  XML is a is a meta-language for describing markup languages. 
C)  Unlike HTML,XML is capable of storing data in relational form. 
D)  Any markup language can be created using XML

Question 13

An inventory out-of-stock report is an example of a programmed,on-demand report.

Accepted Answer

A) True 
 B)False

Question 14

Designing an effective management reporting system does not require an understanding of the information managers need to deal with the problems they face.

Accepted Answer

A) True 
 B)False

Question 15

Which report is not an output of the Financial Reporting System (FRS)?

Accepted Answer

A)  variance analysis report 
B)  statement of cash flows 
C)  tax return 
D)  comparative balance sheet 
A)  variance analysis report 
B)  statement of cash flows 
C)  tax return 
D)  comparative balance sheet

Question 16

Explain the purpose and contents of the general ledger master file.

Accepted Answer

The general ledger master file is the ma

Question 17

An advantage of a batch General Ledger System (GLS)is that

Accepted Answer

A)  separation between authorization and transaction processing is strictly enforced 
B)  the general ledger master file is recreated with each update 
C)  updates and reconciliation of transactions occur as a step within the transaction cycle 
D)  errors and out-of-balance conditions are identified at the end of the month 
A)  separation between authorization and transaction processing is strictly enforced 
B)  the general ledger master file is recreated with each update 
C)  updates and reconciliation of transactions occur as a step within the transaction cycle 
D)  errors and out-of-balance conditions are identified at the end of the month

Question 18

The _______________________________ principle suggests that management should structure the firm around the work it performs rather than around individuals with unique skills.

Accepted Answer

formalizat

Question 19

Each account in the chart of accounts has a separate record in the general ledger master file.

Accepted Answer

A) True 
 B)False

Question 20

Which statement is not true?

Accepted Answer

A)  authority refers to an individual's obligation to achieve desired results 
B)  if an employee is given the responsibility for a task,that employee should be given authority to make decisions within the limits of that task 
C)  the level of detail provided to an employee is a function of the employee's position with the firm 
D)  all of the above are true 
A)  authority refers to an individual's obligation to achieve desired results 
B)  if an employee is given the responsibility for a task,that employee should be given authority to make decisions within the limits of that task 
C)  the level of detail provided to an employee is a function of the employee's position with the firm 
D)  all of the above are true

Standards are the basis for evaluating actual performance.

Which situation indicates an internal control risk in the General Ledger/Financial Reporting Systems (GL/FRS)?

What mechanism is used to convey to managers the standards by which their performance will be measured?

Which of the following best describes a profit center:

Which statement is not true/

Describe at least three attributes of an effective report.

Employees who are responsible for a task must have the __________________________ to make decisions within the limits of the responsibility delegated.

A report is said to have information content if it eliminates uncertainty associated with a problem facing the decision maker.

Which steps in the Financial Accounting Process are in the correct sequence?

Which of the following management principles affects the management reporting system?

Which of the following statements is NOT true?

An inventory out-of-stock report is an example of a programmed,on-demand report.

Designing an effective management reporting system does not require an understanding of the information managers need to deal with the problems they face.

Which report is not an output of the Financial Reporting System (FRS)?

Explain the purpose and contents of the general ledger master file.

An advantage of a batch General Ledger System (GLS)is that

The _______________________________ principle suggests that management should structure the firm around the work it performs rather than around individuals with unique skills.

Each account in the chart of accounts has a separate record in the general ledger master file.

Which statement is not true?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters

Exam 8: General Ledger,financial Reporting,and Management Reporting Systems

Standards are the basis for evaluating actual performance.

Which situation indicates an internal control risk in the General Ledger/Financial Reporting Systems (GL/FRS)?

What mechanism is used to convey to managers the standards by which their performance will be measured?

Which of the following best describes a profit center:

Which statement is not true/

Describe at least three attributes of an effective report.

Employees who are responsible for a task must have the __________________________ to make decisions within the limits of the responsibility delegated.

A report is said to have information content if it eliminates uncertainty associated with a problem facing the decision maker.

Which steps in the Financial Accounting Process are in the correct sequence?

Which of the following management principles affects the management reporting system?

Which of the following statements is NOT true?

An inventory out-of-stock report is an example of a programmed,on-demand report.

Designing an effective management reporting system does not require an understanding of the information managers need to deal with the problems they face.

Which report is not an output of the Financial Reporting System (FRS)?

Explain the purpose and contents of the general ledger master file.

An advantage of a batch General Ledger System (GLS)is that

The _______________________________ principle suggests that management should structure the firm around the work it performs rather than around individuals with unique skills.

Each account in the chart of accounts has a separate record in the general ledger master file.

Which statement is not true?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters