Question 1

Which of the following types of adjusting entries is most likely to involve human judgment?

Accepted Answer

A)  Uncollectible receivables. 
B)  Prepaid expenses. 
C)  Deferred revenues. 
D)  Closing entries. 
A)  Uncollectible receivables. 
B)  Prepaid expenses. 
C)  Deferred revenues. 
D)  Closing entries.

Question 2

Which of the following statements is most true?

Accepted Answer

A)  Accounting is the part of bookkeeping devoted to identifying and measuring economic information. 
B)  Bookkeeping is the part of accounting devoted to identifying and measuring economic information. 
C)  Bookkeeping is the part of accounting associated with making informed judgments. 
D)  Accounting is the part of bookkeeping associated with making informed judgments. 
A)  Accounting is the part of bookkeeping devoted to identifying and measuring economic information. 
B)  Bookkeeping is the part of accounting devoted to identifying and measuring economic information. 
C)  Bookkeeping is the part of accounting associated with making informed judgments. 
D)  Accounting is the part of bookkeeping associated with making informed judgments.

Question 3

Internal controls revision
Consider the list of internal control weaknesses listed below. Revise each one to make it stronger.
a. Any employee in a firm can sign checks.
b. Checks from clients can be made out to the firm or any of the partners individually.
c. One of the partners deposits all credit card receipts and checks in the bank at the end of each month.
d. Signature cards, which specify who can sign checks, are re-done only when a new employee is hired.
e. The cash receipts clerk reconciles the bank statement.

Accepted Answer

a. Any Designated employees in a firm ca

Question 4

Match between columns
                        Premises:  Computer viruses
 Damage from flood, fire or earthquake
 Incorrect change given to a customer
 Incorrectly prepared drinks
 Insufficient inventory quantities
 Power failure
 Robbery
 Spoiled food
 Theft of cash by employees
Theft of inventory by employees

Accepted Answer

The Answer of Backup electrical generators and Cash registers and is...

Question 5

RKH Corporation's net income for 2002 was $10,000. In 2003, its income was $15,000. We can therefore assume its 2004 income was:

Accepted Answer

A)  Less than $20,000. 
B)  Exactly $20,000. 
C)  More than $20,000. 
D)  Not determinable from the information given. 
A)  Less than $20,000. 
B)  Exactly $20,000. 
C)  More than $20,000. 
D)  Not determinable from the information given.

Question 6

One difference between accounting and bookkeeping is:

Accepted Answer

A)  Accounting requires human judgment, while bookkeeping does not. 
B)  Bookkeeping requires human judgment, but accounting does not. 
C)  Bookkeeping is more procedural than accounting. 
D)  Accounting is more procedural than bookkeeping. 
A)  Accounting requires human judgment, while bookkeeping does not. 
B)  Bookkeeping requires human judgment, but accounting does not. 
C)  Bookkeeping is more procedural than accounting. 
D)  Accounting is more procedural than bookkeeping.

Question 7

A company purchased a three-month insurance policy for $450 on December 1. On December 31, the company should:

Accepted Answer

A)  Debit prepaid insurance and credit insurance expense, $450. 
B)  Debit insurance expense and credit prepaid insurance, $450. 
C)  Debit prepaid insurance and credit insurance expense, $150. 
D)  Debit insurance expense and credit prepaid insurance, $150. 
A)  Debit prepaid insurance and credit insurance expense, $450. 
B)  Debit insurance expense and credit prepaid insurance, $450. 
C)  Debit prepaid insurance and credit insurance expense, $150. 
D)  Debit insurance expense and credit prepaid insurance, $150.

Question 8

Which of the following is a form of internal control that ensures the ledger is balanced?

Accepted Answer

A)  Financial statements. 
B)  Sequentially numbered source documents. 
C)  Trial balance. 
D)  Adjusted entries. 
A)  Financial statements. 
B)  Sequentially numbered source documents. 
C)  Trial balance. 
D)  Adjusted entries.

Question 9

Which of the following forms of internal control eliminates the need for human judgment in the accounting information system: (i) audits, (ii) trial balances, (iii) information technology.

Accepted Answer

A)  i and ii only. 
B)  ii and iii only. 
C)  i, ii and iii. 
D)  Neither i, ii nor iii. 
A)  i and ii only. 
B)  ii and iii only. 
C)  i, ii and iii. 
D)  Neither i, ii nor iii.

Question 10

Human judgment and information technology
The text explains the importance of human judgment and information technology in the accounting information system. Indicate with an "X" in the appropriate column which of the following tasks rely primarily on human judgment and which rely primarily on information technology. $$\begin{array} { | l | l | l | } 
\hline & \text { Human judgment } & \text { Information technology } \
\hline \text { Calculating payroll amounts } & & \
\hline \text { Choosing a piece of software } & & \
\hline \text { Completing a bank reconciliation } & & \
\hline \text { Designing an internal control system } & & \
\hline \text { Graphing a firm's stock price over time } & & \
\hline
\end{array}$$

Accepted Answer

The answer of Human judgment and information technology
The text explains...

Question 11

Which of the following best demonstrates an "informed judgment" as the term is used in the a. American Accounting Association's definition of accounting?

Accepted Answer

A)  Deciding whether to debit or credit an account. 
B)  Completing the steps in the accounting cycle. 
C)  Choosing between borrowing money and issuing capital stock. 
D)  Listing the elements of financial statements. 
A)  Deciding whether to debit or credit an account. 
B)  Completing the steps in the accounting cycle. 
C)  Choosing between borrowing money and issuing capital stock. 
D)  Listing the elements of financial statements.

Question 12

As used in the American Accounting Association's definition of accounting, "measuring economic information" refers most directly to:

Accepted Answer

A)  Human judgment. 
B)  The steps in the accounting cycle. 
C)  The process of bookkeeping. 
D)  Making journal entries. 
A)  Human judgment. 
B)  The steps in the accounting cycle. 
C)  The process of bookkeeping. 
D)  Making journal entries.

Question 13

Internal controls analysis
Dewey, Cheatam and Howe is a consulting firm in southern California. The firm employs the internal control procedures listed below as part of its operations. Place an "X" in the appropriate column to indicate whether each item listed is a strength or a weakness for the firm's internal control system. $\begin{array}{|l|l|l|}
\hline & \text { Strength } & \text { Weakness } \
\hline \text { Any employee in the firm can sign checks.} & & \
\hline \text { Blank checks are stored in a locked filing cabinet.} &&\ 
\hline\text { Checks from clients can be made out to the firm or any of } \
\text { the partners individually. } \
\hline\text { Office rent is paid automatically and electronically each } \
\text { month. } \
\hline \text { One of the partners deposits all credit card receipts and }\
\text { checks in the bank at the end of each month.}\
\hline \text { Signature cards, which specify who can sign checks, are re-}\
\text { done only when a new employee is hired.}\ 
\hline \text {The cash receipts clerk reconciles the bank statement. }\
\hline \text {The firm accepts credit cards and checks, but not cash.}\
\hline \text { The firm maintains a petty cash fund of $ \$ 1,000 $. }\
\hline \text {Two signatures are required on all checks over $ \$ 500 $.}\
\hline  
\end{array}$

Accepted Answer

The answer of Internal controls analysis
Dewey, Cheatam and Howe is...

Question 14

Which of the following steps in the accounting cycle happens only at the end of the year?

Accepted Answer

A)  Prepare financial statements. 
B)  Close temporary accounts to retained earnings. 
C)  Record adjusting entries. 
D)  Prepare a trial balance. 
A)  Prepare financial statements. 
B)  Close temporary accounts to retained earnings. 
C)  Record adjusting entries. 
D)  Prepare a trial balance.

Question 15

Which of the following requires the least human judgment?

Accepted Answer

A)  Accounting. 
B)  Bookkeeping. 
C)  Making estimates. 
D)  Preparing financial statements. 
A)  Accounting. 
B)  Bookkeeping. 
C)  Making estimates. 
D)  Preparing financial statements.

Question 16

Which of the following tasks would most likely involve mnemonic coding?

Accepted Answer

A)  Assigning three-letter codes to inventory items. 
B)  Developing a chart of accounts. 
C)  Numbering documents sequentially. 
D)  Completing the steps in the accounting cycle. 
A)  Assigning three-letter codes to inventory items. 
B)  Developing a chart of accounts. 
C)  Numbering documents sequentially. 
D)  Completing the steps in the accounting cycle.

Question 17

You're "doing the books" for a local consulting firm as part of an internship. The rest of the consultants don't have much background in accounting; they're very curious about the work you do and your college studies.
-List and discuss two ways human judgment and information technology impact the accounting cycle.

Accepted Answer

Human judgment and information technolog

Question 18

Which of the following adjusting entry types helps determine the value of fixed assets: (i) depreciation, (ii) prepaid expenses.

Accepted Answer

A)  i only. 
B)  ii only. 
C)  Both i and ii. 
D)  Neither i nor ii. 
A)  i only. 
B)  ii only. 
C)  Both i and ii. 
D)  Neither i nor ii.

Question 19

You're "doing the books" for a local consulting firm as part of an internship. The rest of the consultants don't have much background in accounting; they're very curious about the work you do and your college studies.
-Explain, at a conceptual level, the "accounting cycle." Outline the steps in the cycle for your co-workers; provide a brief explanation of each step.

Accepted Answer

Conceptually, the accounting cycle is th

Question 20

In the accounting cycle, which step immediately comes before analyzing transactions?

Accepted Answer

A)  Prepare financial statements. 
B)  Close the temporary accounts. 
C)  Obtain information from source documents. 
D)  None-analyzing transactions is the first step in the accounting cycle. 
A)  Prepare financial statements. 
B)  Close the temporary accounts. 
C)  Obtain information from source documents. 
D)  None-analyzing transactions is the first step in the accounting cycle.

Which of the following types of adjusting entries is most likely to involve human judgment?

Which of the following statements is most true?

RKH Corporation's net income for 2002 was $10,000. In 2003, its income was $15,000. We can therefore assume its 2004 income was:

One difference between accounting and bookkeeping is:

A company purchased a three-month insurance policy for $450 on December 1. On December 31, the company should:

Which of the following is a form of internal control that ensures the ledger is balanced?

Which of the following forms of internal control eliminates the need for human judgment in the accounting information system: (i) audits, (ii) trial balances, (iii) information technology.

Which of the following best demonstrates an "informed judgment" as the term is used in the a. American Accounting Association's definition of accounting?

As used in the American Accounting Association's definition of accounting, "measuring economic information" refers most directly to:

Which of the following steps in the accounting cycle happens only at the end of the year?

Which of the following requires the least human judgment?

Which of the following tasks would most likely involve mnemonic coding?

Which of the following adjusting entry types helps determine the value of fixed assets: (i) depreciation, (ii) prepaid expenses.

In the accounting cycle, which step immediately comes before analyzing transactions?

Rolse and Purpose of Accountig Information Systems

Professionalisam and Ethics

Internal Controls

Flow Charting

Data Flow Diagramming

Real Modeling

XBRL

Business and Enterprise Resource Planning Systems

Salles - Collection Process

Acquestion Payment Process

Other Business Process

Bussiness Process Mamagement

Computer Crime and Information Technology Security

Dicision Making Models and Knowledge Management

Professional Certifications and Career Planning

Auditing and Evaluating the AIS

Filters

Exam 2: Transaction Processing in the AIS

Which of the following types of adjusting entries is most likely to involve human judgment?

Which of the following statements is most true?

RKH Corporation's net income for 2002 was $10,000. In 2003, its income was $15,000. We can therefore assume its 2004 income was:

One difference between accounting and bookkeeping is:

A company purchased a three-month insurance policy for $450 on December 1. On December 31, the company should:

Which of the following is a form of internal control that ensures the ledger is balanced?

Which of the following forms of internal control eliminates the need for human judgment in the accounting information system: (i) audits, (ii) trial balances, (iii) information technology.

Which of the following best demonstrates an "informed judgment" as the term is used in the a. American Accounting Association's definition of accounting?

As used in the American Accounting Association's definition of accounting, "measuring economic information" refers most directly to:

Which of the following steps in the accounting cycle happens only at the end of the year?

Which of the following requires the least human judgment?

Which of the following tasks would most likely involve mnemonic coding?

Which of the following adjusting entry types helps determine the value of fixed assets: (i) depreciation, (ii) prepaid expenses.

In the accounting cycle, which step immediately comes before analyzing transactions?

Rolse and Purpose of Accountig Information Systems

Professionalisam and Ethics

Internal Controls

Flow Charting

Data Flow Diagramming

Real Modeling

XBRL

Business and Enterprise Resource Planning Systems

Salles - Collection Process

Acquestion Payment Process

Other Business Process

Bussiness Process Mamagement

Computer Crime and Information Technology Security

Dicision Making Models and Knowledge Management

Professional Certifications and Career Planning

Auditing and Evaluating the AIS

Filters