Deck 9: XBRL

Question 1

ABC Corporation, a US manufacturer, files its 10-K annual report with the SEC using XBRL. Being a US manufacturer tells ABC which ___ to use; the 10-K is a(n) ___.

A)Taxonomy, instance document
B)Taxonomy, specification
C)Specification, instance document
D)Specification, taxonomy

Answer 1

A

Question 2

Examples of XBRL instance documents include:

A)Statement of cash flows
B)Balance sheet
C)Income statement
D)All of the above

Answer 2

D

Question 3

XBRL's global ledger taxonomy can be used for transaction processing, while the US financial reporting taxonomy is focused on output reports. Which of the following XBRL tags would you expect to find as part of the US financial reporting taxonomy?

A)invoice
B)10000
C)Both A and B
D)Neither A nor B

Answer 3

B

Question 4

Which of the following terms describes the relationship between XBRL and XML?

A)Extensible
B)Specification
C)Taxonomy
D)Instance document

Question 5

The "X" in XBRL stands for extensible. Which of the following can an individual company extend when using XBRL?

A)Instance documents
B)Taxonomies
C)Specifications
D)All of the above

Question 6

The text discussed five terms related to the structure of XBRL. Which of the following pairs of items includes two examples of the same term?

A)XML, XBRL
B)Global Ledger, invoice
C)Global Ledger, US Financial Reporting
D)XBRL, www.xbrl.org

Question 7

The accounting cycle comprises ten steps. In which step is an XBRL taxonomy first likely to be used?

A)Post from the journal to the ledger.
B)Record the transactions in a journal.
C)Prepare financial statements.
D)Close the nominal accounts to retained earnings.

Question 8

Ez-XBRL can be used to create:

A)Instance documents.
B)Taxonomies.
C)Both A and B.
D)Neither A nor B.

Question 9

Because XBRL is an "open source" information technology tool, companies can:

A)Add tags as necessary.
B)Choose which tagging software they will use.
C)Both A and B.
D)Neither A nor B.

Question 10

XBRL is organized in taxonomies. All of the following are XBRL taxonomies except:

A)US Country Taxonomy 2009
B)IFRS-GP
C)XML taxonomy
D)XBRL-GL

Question 11

In the notation , ifrs-gp is a ___ which would reside in a ___ on the Internet.

A)Namespace, taxonomy
B)Taxonomy, specification
C)Namespace, specification
D)Taxonomy, namespace

Question 12

XBRL provides ___ for a company's financial information.

A)Context
B)GAAP
C)Both A and B
D)Neither A nor B

Question 13

XBRL's global ledger taxonomy can be used for transaction processing, while the US financial reporting taxonomy is focused on output reports. Which of the following XBRL tags would you expect to find as part of the global ledger taxonomy?

A)invoice
B)10000
C)Both A and B
D)Neither A nor B

Question 14

Most accounting information systems comprise five generic elements. As a tool for preparing financial statements, XBRL is most closely associated with:

A)Processing
B)Input
C)Output
D)Storage

Question 15

Which of the following statements about XBRL is most true?

A)Because it is extensible, companies can create new specifications that reside in an Internet namespace.
B)Because it is organized in taxonomies, it is extensible.
C)Because it is extensible, companies can create tags that are used in instance documents, as long as they are defined in a namespace.
D)All of the above statements are true.

Question 16

XBRL is structured into taxonomies which reside in namespaces. All of the following are namespaces except:

A)http://xbrl.us/country/2008-10-31
B)http://xbrl.us/rr/2008-12-31
C)http://xbrl.us/mda/2008-10-31
D)http://xbrl.org

Question 17

Which of the following terms best explains the idea that anyone can add to XBRL?

A)Extensible
B)Specification
C)Taxonomy
D)Namespace

Question 18

The Internet address that defines XBRL tags is called a(n):

A)Specification
B)Taxonomy
C)Namespace
D)Instance document

Question 19

XBRL's structure is flexible, so companies can extend it when the need arises. Which of the following terms is most likely to require an extension of an existing XBRL taxonomy?

A)Asset
B)Operating cash flow
C)Both A and B will likely require an extension of an existing taxonomy.
D)Neither A nor B will likely require an extension of an existing taxonomy.

Question 20

With respect to XBRL, Global Ledger and International Financial Reporting Standards are

A)Specifications
B)Taxonomies
C)Namespaces
D)Instance documents

Question 21

Tagging software is used to prepare XBRL:

A)Instance documents
B)Taxonomies
C)Namespaces
D)Internal controls

Question 22

Consider the following flowchart symbols as you respond to the next question: BLG Corporation uses systems flowcharts to teach its new employees about company procedures. If BLG adopts XBRL, those system flowcharts will likely incorporate fewer of ___ because ___.

A)Symbol C; databases are unnecessary when using XBRL.
B)Symbol A; no manual processes are permitted when using XBRL.
C)Symbol A; XBRL automates many tasks that may have been completed manually.
D)None of the above; the use of XBRL will not affect symbols used in systems flowcharts.

Question 23

Benefits of XBRL include:

A)Achieving quicker and more efficient decisions.
B)Improving investor relations through provision of more transparent and user-friendly information.
C)Both A and B.
D)Neither A nor B.

Question 24

From an accountant's perspective, one of the benefits of XBRL is the ability to obtain more rapid and reliable data and information on company financial performance. Such items would include:

A)General purpose financial statements.
B)Chart of accounts
C)Both A and B.
D)Neither A nor B.

Question 25

Which of the following would most effectively be used to select XBRL tagging software?

A)Expectancy theory
B)Weighted-rating model
C)COSO enterprise risk management framework
D)Accounting cycle

Question 26

Most organizations use ___ to prepare XBRL instance documents.

A)Tagging software
B)Document flowcharts
C)Both A and B.
D)Neither A nor B.

Question 27

Rivet Software and Ez-XBRL are best used for which of the following tasks?

A)Creating XBRL instance documents
B)Preparing presentations on XBRL.
C)Both A and B.
D)Neither A nor B.

Question 28

Most accounting information systems comprise five elements. XBRL tagging software is most closely associated with:

A)Inputs.
B)Processing.
C)Outputs.
D)Storage.

Question 29

When organizations use XBRL, they can free themselves from:

A)Proprietary systems.
B)The steps in the accounting cycle.
C)Both A and B.
D)Neither A nor B.

Question 30

OTH Corporation prepares its general-purpose financial statements with Peachtree Complete Accounting. If OTH wanted to prepare XBRL instance documents, it should also use:

A)Tagging software, such as Ez-XBRL.
B)The systems development life cycle to create its own tagging software.
C)Both A and B.
D)Neither A nor B.

Question 31

Bumble Beasley commented: "I understand the benefits of XBRL, but tagging all our company's journal entries and financial statements is too much work." Which of the following is the best response to Bumble's comment?

A)XBRL cannot be used to tag journal entries.
B)The tagging process can be automated.
C)Both A and B.
D)Neither A nor B.

Question 32

Tagging software such as Ez-XBRL is often used in conjunction with what other type of software?

A)Spreadsheets.
B)General ledger.
C)Both A and B.
D)Neither A nor B.

Question 33

XBRL allows organizations to focus effort on analysis, forecasting and decision making. Which of the following includes one example of each of those tasks?

A)Interpreting financial statement ratios, preparing a sales budget, raising or lowering prices
B)Preparing a sales budget, forecasting future risks using the COSO framework, adopting new internal controls
C)Interpreting financial statement ratios, forecasting future risks using the COSO framework, raising sales prices
D)Preparing a sales budget, lowering sales prices, creating a systems flowchart

Question 34

Consider the following flowchart symbols as you respond to the next question: BLG Corporation uses systems flowcharts to teach its new employees about company procedures. If BLG adopts XBRL, those system flowcharts will likely incorporate fewer of ___ and more of ___.

A)Symbol A, Symbol C
B)Symbol B, Symbol A
C)Symbol C, Symbol A
D)None of the above; the use of XBRL will not affect symbols used in systems flowcharts.

Question 35

XBRL allows organizations to simplify the process and reduce the costs involved in regulatory reporting to agencies such as:

A)The IRS.
B)The SEC.
C)Both A and B.
D)Neither A nor B.

Question 36

Examples of XBRL tagging software include:

A)Rivet
B)PowerPoint
C)Internet Explorer
D)All of the above

Question 37

XBRL allows organizations to save costs by preparing data in one form and automatically generating many outputs. Which steps in the accounting cycle are therefore affected by using XBRL?

A)Posting from the journal to the ledger.
B)Preparing an adjusted trial balance.
C)Both A and B.
D)Neither A nor B.

Question 38

Organizations can benefit from XBRL by obtaining quicker responses from counterparties. Examples of counterparties include:

A)The SEC.
B)Lenders.
C)Both A and B.
D)Neither A nor B.

Question 39

The text discussed five terms related to the structure of XBRL. Which of the following pairs of items includes two examples of the same term?

A)Balance sheet, Form 10-K
B)Global Ledger, US Financial Reporting
C)Both A and B
D)Neither A nor B

Question 40

From an accountant's perspective, one of the benefits of XBRL is the ability to focus effort on analysis and value-added work. Value-added work includes such items as

A)Posting entries from the journal to the ledger
B)Interpreting financial statement ratios.
C)Both A and B.
D)Neither A nor B.

Question 41

Internal controls have four fundamental purposes. Which of the following pairs an internal control for XBRL with an appropriate purpose of internal control?

A)Centralized approval process for taxonomy additions, encouraging compliance with management directives
B)Daily data backups, safeguarding assets
C)Both A and B
D)Neither A nor B

Question 42

As a form of internal control for XBRL, periodic user training best addresses the risk of:

A)Tagging errors.
B)Inappropriate / missing authorizations.
C)Both A and B.
D)Neither A nor B.

Question 43

As a form of internal control to address the risk of inappropriate / missing authorizations, internal audit review of selected transactions is best described as:

A)A general control.
B)An application control.
C)A behavioral control.
D)A financial control.

Question 44

XBRL creates risk exposures for organizations that use it; those risk exposures have to be addressed via various forms of internal control. As discussed previously in the text, internal controls can be classified by purpose (preventive / detective / corrective) and their relationship to the organization's information system (general / application). Consider the list of risks and controls below; for each item, indicate whether the control is primarily preventive / detective / corrective. Also indicate whether the control is a general or application control.

Question 45

The chapter discussed five key terms related to XBRL: extensible, specification, taxonomy, namespace and instance document. Specify which term is most appropriately associated with each item below.
A. A specific example of properly tagged XBRL information.
B. A way to organize knowledge.
C. The Internet address that contains the meanings of XBRL tags.
D. The quality of XBRL that allows people to add to it as necessary.
E. The relationship between XBRL and XML.

Question 46

Explain the structure of XBRL, including its relationship to XML.

Question 47

Explain, in your own words, how most organizations create XBRL instance documents. Specifically address the role of information technology in that process.

Question 48

Internal control risks associated with XBRL include:

A)Compromised data.
B)Tagging errors.
C)Both A and B.
D)Neither A nor B.

Question 49

Fill in the blanks below based on the benefits of XBRL discussed in the text.
A. Consolidates results across ___ with much greater speed and reliability.
B. Focus effort on ___, rather than on laborious tasks in gathering, compiling and preparing data.
C. Free themselves from ___ systems and software which are difficult and costly to replace.
D. Improve investor relations through provision of more ___ information.
E. Saves costs by preparing data in one form and automatically generating ___.
A. divisions and subsidiariesb. analysis, forecasting and decision makingc. proprietaryd. transparent and user-friendlye. many outputs

Question 50

Internal controls have four fundamental purposes. Which of the following pairs an internal control for XBRL with an appropriate purpose of internal control?

A)Electronic tagging, promoting operating efficiency
B)Centralized approval process for taxonomy additions, safeguarding assets
C)Both A and B
D)Neither A nor B

Question 51

Rivet Software is one option for creating XBRL-tagged documents. Many organizations follow the six steps listed below to do so; prepare a systems flowchart of the six steps. (Assume all six steps are completed in the same department.) 1. Download taxonomies. 2. Open tagging software and the file to be tagged. 3. Set up an entity profile. 4. Mark up the data. 5. Validate the document. 6. Export the data as an XBRL document.

Question 52

COSO published two integrated frameworks to assist organizations in managing risk and developing internal controls. Organizations adopting XBRL could use:

A)The risk management framework only.
B)The internal control framework only.
C)Both the risk management and internal control frameworks.
D)Neither the risk management nor the internal control framework.

Question 53

A disaster recovery plan is a good internal control for which of the following risks associated with XBRL?

A)Tagging errors
B)Software failure
C)Both A and B.
D)Neither A nor B

Question 54

Compromised data and tagging errors are most closely associated with which element of the COSO enterprise risk management framework?

A)Objective setting
B)Internal environment
C)Risk assessment
D)Monitoring

Question 55

What feature of XBRL is indicated by the highlighted phrase in each of the following items? (Do not limit yourself to the five key terms discussed in the text.)
A. A bank would use a different set of XBRL tags than a manufacturer.
B. Certain sets of XBRL tags conform to both a specific version of XBRL and XBRL guidelines for specific sets of tags.
C. Companies can tag their general purpose financial statements with XBRL, as well as their SEC filings.
D. No-one pays to use XBRL.
E. Software capable of interpreting XBRL tags can look on the Internet to find the meaning of those tags.
F. Some sets of XBRL tags conform only to a specific version of XBRL; they need further development.
G. Syntax and punctuation are important when creating an instance document.
H. There are many languages similar to XBRL; all of them belong to the larger XML family.
I. There is an entire set of tags devoted to managing internal information, such as a chart of accounts or journal entries.j. XBRL facilitates interpretation of accounting numbers.

Question 56

Internal control risks associated with XBRL include all of the following except:

A)Hardware and software failure.
B)Lack of appropriate tags.
C)Selecting an appropriate taxonomy.
D)Compromised data.

Question 57

The text discussed five key terms related to XBRL. Which one best applies to each of the following items?
A. Amanda said: "Here is the list of asset accounts we'll need to tag in XBRL; it includes items like cash and accounts receivable."
b. Eugene expected to finish tagging the company's financial statements before the end of the day.
C. Jeff asked his supervisor which set of XBRL tags the company should use.
D. Molly wondered where she could find the meaning and interpretation of XBRL tags.
E. Sue commented: "Our company is so unique, I'm sure we'll need to supplement existing tags before we can use XBRL."

Question 58

Using XBRL creates some risk exposures for organizations; an effective tool for managing risk exposures is the risk / control matrix. Using the format discussed in the text, create a risk / control matrix for the risk of XBRL tagging errors.

Question 59

An internal auditor is given responsibility for reviewing selected XBRL-tagged documents as a form of internal control. If the internal auditor does not fulfill that responsibility, which of the following may help explain and correct the problem?

A)Expectancy theory
B)Weighted-rating model
C)Generic AIS elements
D)Internal control flowchart

Question 60

XBRL creates certain benefits for both accountants and organizations. Consider the statements below; rewrite each one to reflect a benefit of XBRL.1) A company with divisions in more than one country will have to cope with differences in hardware, software, language, currency and terminology in preparing its consolidated financial statements.2) Decision making in accounting information systems that do not use XBRL may be slow and inefficient because information is not as readily available.3) SEC and IRS filings can be very time consuming without XBRL.4) The bookkeeping process in view-driven accounting information systems is costly and prone to error because it constantly rearranges previously collected data into new forms.5) Without the benefit of XBRL, accountants spend a lot of time gathering data and formatting it based on the decisions to be made with it.

Question 61

The capability maturity model has five levels: chaotic, repeatable, defined, managed, and optimized. Could an organization benefit from using XBRL at each of the five levels? If so, how? If not, why not? Ensure that your response addresses each level individually.

Question 62

The use of XBRL creates some risk exposures for organizations; those risk exposures should be addressed via various forms of internal control. Use the COSO internal control framework to develop a plan specific to the risks associated with XBRL. Ensure that you discuss all five elements of the COSO framework.

Question 63

Consider the list of terms below. Select those that are fundamental to understanding XBRL; explain the meaning of each fundamental term.Business process management
Capability maturity model
Extensible
Flowcharting
Form 10-K
Instance document
Internal control
Namespace
Specification
Taxonomy