Deck 8: XBRL

Question 1

Because of differences in terminology, a manufacturing firm would most likely use a different XBRL ___ than a government agency.

A) Namespace.
B) Taxonomy.
C) Specification.
D) Tagging software.

Answer 1

B

Question 2

XBRL comprises several ___, often based on industry groups.

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

Answer 2

D

Question 3

In terms of its relationship to XML, XBRL is a(n):

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

Answer 3

B

Question 4

As a form of internal control, internal audit review addresses which of the following risks associated with XBRL?

A) Compromised data.
B) Tagging errors.
C) Missing authorizations.
D) Selecting an inappropriate taxonomy.

Question 5

XML and XBRL have a relationship that is most comparable to:

A) Financial statements, rules of debit and credit.
B) Rules of debit and credit, the accounting cycle.
C) Financial statements, statement of cash flows.
D) The accounting cycle, GAAP.

Question 6

Which of the following taxonomies are part of XBRL: (i) Currency, (ii) GL, (iii) Monetary.

A) i and ii only.
B) ii and iii only.
C) i and iii only.
D) i, ii and iii.

Question 7

XBRL tags are enclosed in which of the following?

A) " ".
B) ( ).
C) { }.
D) < >.

Question 8

XBRL helps organizations save cost by:

A) Eliminating the need for accountants.
B) Avoiding re-keying of data.
C) Guaranteeing data accuracy.
D) Replacing general ledger software.

Question 9

XBRL provides a(n) __ for understanding financial information.

A) Context.
B) Instance document.
C) Fixed set of tags.
D) Hardware-dependent software.

Question 10

XBRL can help organizations focus more on ___ than on ___.

A) Analysis, forecasting.
B) Forecasting, data gathering.
C) Data gathering, data compilation.
D) Decision making, analysis.

Question 11

Which of the following is an add-in software used for creating XBRL tags?

A) Dragon Tag.
B) Ex-Tag.
C) Money Tag.
D) Excel.

Question 12

As a form of internal control, password protected access addresses which of the following risks associated with XBRL?

A) Compromised data.
B) Tagging errors.
C) Missing authorizations.
D) Selecting an inappropriate taxonomy.

Question 13

As a form of internal control, software like Dragon Tag addresses which of the following risks associated with XBRL?

A) Compromised data.
B) Tagging errors.
C) Missing authorizations.
D) Selecting an inappropriate taxonomy.

Question 14

XBRL is an application of:

A) HTML.
B) XML.
C) GAAP.
D) RSS.

Question 15

XBRL instance documents include: (i) statement of shareholders' equity, (ii) sales by geographic region.

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

Question 16

XBRL can improve investor relations by providing information that is more:

A) Transparent.
B) Aggregated.
C) Technical.
D) Accurate.

Question 17

The "X" in "XBRL" stands for:

A) Extension.
B) Excel.
C) Extensible.
D) Ex officio.

Question 18

Dragon Tag, CoreFiling Ltd. and TagEzee are examples of:

A) instance documents.
B) taxonomies.
C) tagging software.
D) instance tagging taxonomies.

Question 19

Which of the following is least likely to be an XBRL taxonomy?

A) Assets.
B) Retail.
C) Universities.
D) Consultants.

Question 20

When using software like Dragon Tag, marking up financial data with XBRL is a matter of:

A) Dragging and dropping.
B) Typing and scanning.
C) Scanning and dragging.
D) Typing and dropping.

Question 21

In tagging software, "numeric units" could be: (i) US Dollars, (ii) Mexican pesos, (iii) Euros.

A) i and ii only.
B) ii and iii only.
C) i and iii only.
D) i, ii and iii.

Question 22

Christine created a new XBRL tag for her company's data, but she made a mistake in doing so. Which internal control would be most effective in preventing the problem in the future?

A) Fire Christine.
B) Require user training.
C) Audit tags after they are uploaded to the namespace.
D) Forbid the creation of new tags.

Question 23

XBRL:

A) Removes the need for accountants to understand debits and credits.
B) Reduces internal audit costs.
C) Should only be used by multi-divisional organizations.
D) Facilitates the preparation of consolidated financial statements.

Question 24

An organization's disaster recovery plan would be most useful if:

A) An employee failed to include appropriate punctuation in XBRL tags.
B) It did not have a strong internal audit department.
C) XBRL-tagged data were corrupted by a Trojan horse.
D) An employee mistakenly used the wrong taxonomy for XBRL tags.

Question 25

Several years ago, PPK Corporation paid a team of consultants to develop specialized software for their accounting information system. Which of the following benefits of XBRL is uniquely applicable to PPK?

A) Companies will avoid re-keying of data and other manual tasks.
B) Consolidate results across divisions and subsidiaries with much greater speed and reliability.
C) Free themselves from proprietary systems.
D) Obtain quicker responses from counterparties.

Question 26

An XBRL namespace is required when: (i) a company wants to use an existing taxonomy, (ii) a company wants to add its own tags to an existing taxonomy, (iii) a company needs to define a new tag.

A) i and ii only.
B) i and iii only.
C) ii and iii only.
D) i, ii and iii.

Question 27

Which of the following items in tagging software would most likely contain data about a namespace?

A) Default taxonomy location.
B) Default entity profile.
C) Default taxonomy profile.
D) Default entity location.

Question 28

Namespaces should be declared by specifying a ___ at the ___ of an XBRL document.

A) Taxonomy, beginning.
B) Internet address, end.
C) Taxonomy, end.
D) Internet address, beginning.

Question 29

Properly tagged XBRL information is similar to information in a database because both:

A) Can be searched.
B) Focus on financial information.
C) Save money.
D) Should be normalized.

Question 30

In a properly tagged XBRL document, which of the following would be most closely associated with "unitRef?"

A) For the quarter ended 12/31/06.
B) Canadian dollars.
C) Amounts in thousands.
D) Cost of production report.

Question 31

In a properly tagged XBRL document, which of the following would be most closely associated with "contextRef?"

A) For the quarter ended 12/31/06.
B) Mexican pesos.
C) Dragon Tag software.
D) XBRL GL.

Question 32

As an element of XBRL, "banking and savings institutions" is most similar to which of the following?

A) Specific automobile models produced by General Motors.
B) "Operating" and "non-operating" items on an income statement.
C) The "auto number" field type in an Access database.
D) The rules of debit and credit.

Question 33

Properly tagged XBRL information can assist in all of the following decisions except:

A) Lending a company money.
B) Abandoning an unpopular product line.
C) Selecting tagging software.
D) Analyzing cost variances.

Question 34

PPK Corporation is investigating the use of XBRL for filing its 10-K reports. Which of the following benefits of XBRL is uniquely applicable to PPK?

A) Simplify the regulatory reporting process.
B) Consolidate results across divisions and subsidiaries with much greater speed and reliability.
C) Free themselves from proprietary systems.
D) Obtain quicker responses from counterparties.

Question 35

Tagging software may incorporate a "hopper" to avoid repetitious data entry. All of the following items could be included in a hopper except:

A) Default currency.
B) Calendar options.
C) Number of decimal places.
D) Account type.

Question 36

Which of the following statements is most true regarding tagging software?

A) Tagging software should be selected using a process similar to other software selections.
B) XBRL International requires a specific software package be used.
C) Tagging software is usually dependent on an XBRL taxonomy.
D) Tagging software eliminates the need for other forms of information technology.

Question 37

PPK Corporation is a US-based company with branches all over the western hemisphere. Which of the following benefits of XBRL is uniquely applicable to PPK?

A) Companies will avoid re-keying of data and other manual tasks.
B) Consolidate results across divisions and subsidiaries with much greater speed and reliability.
C) Improve investor relations through provision of more transparent and user-friendly information.
D) Obtain quicker responses from counterparties.

Question 38

Like all specifications of XML, XBRL:

A) Focuses on financial information.
B) Incorporates the idea of "tagging."
C) Is software-dependent.
D) Saves organizations money.

Question 39

As a form of internal control, fire suppression systems would most effectively address which of the following risks associated with XBRL?

A) Hardware failure.
B) Compromised data.
C) Tagging errors.
D) Software viruses.

Question 40

Some tagging software can incorporate "what-if analyses." All of the following are examples of such analyses except:

A) Calculating budget variances.
B) Pro forma financial statements.
C) Calculating shareholders' equity for the balance sheet.
D) Forecasting future revenues.

Question 41

The following scenario applies to Questions:
Michael and Michelle are partners in M & M Consulting, a firm that specializes in technology-related issues for accounting information systems. They are currently working with a large publicly-traded corporation to implement XBRL for financial reporting to the SEC. The partners are illustrating XBRL to the client's board of directors using a purchase order as an example.
In your own words, define the following terms related to XBRL: extensible, specification, taxonomy, namespace, instance document.

Question 42

Which of the following phrases from the RDR scenario is most closely associated with the term "taxonomy?"

A) Investment management firm.
B) XBRL.
C) Create a tag.
D) RDR's web site.

Question 43

Which of the following phrases from the RDR scenario is most closely associated with the term "specification?"

A) Investment management firm.
B) XBRL.
C) Create a tag.
D) RDR's web site.

Question 44

Which of the following phrases from the RDR scenario is most closely associated with the term "instance document?"

A) Investment management firm.
B) XBRL.
C) Income statement.
D) RDR's web site.

Question 45

Which of the following would be part of a taxonomy downloaded into tagging software: (i) sales, (ii) land, (iii) cash received from clients.

A) i and ii only.
B) i and iii only.
C) ii and iii only.
D) i, ii and iii.

Question 46

Which of the following phrases from the RDR scenario is most closely associated with the term "namespace?"

A) Investment management firm.
B) XBRL.
C) Create a tag.
D) RDR's web site.

Question 47

The following scenario applies to Questions:
Michael and Michelle are partners in M & M Consulting, a firm that specializes in technology-related issues for accounting information systems. They are currently working with a large publicly-traded corporation to implement XBRL for financial reporting to the SEC. The partners are illustrating XBRL to the client's board of directors using a purchase order as an example.
M & M's client currently employs over 100 accounting staff. Each quarter, they must consolidate the financial information from the client's international subsidiaries and prepare a report for the SEC-a process that frequently takes three to four weeks. Discuss ways XBRL can help the client save time and money in its accounting processes.

Question 48

XBRL tags
FTG Corporation presented the following partial income statement. Create appropriate XBRL tags for the items listed below.

Question 49

The following scenario applies to Questions:
Michael and Michelle are partners in M & M Consulting, a firm that specializes in technology-related issues for accounting information systems. They are currently working with a large publicly-traded corporation to implement XBRL for financial reporting to the SEC. The partners are illustrating XBRL to the client's board of directors using a purchase order as an example.
The basic purposes of internal control are: safeguarding assets, ensuring financial statement reliability, promoting operational efficiency and encouraging compliance with management's directives. Assume the client implements XBRL. Suggest one XBRL-related internal control that will help address each of the four basic purposes. Do not use the same control more than once.

Question 50

The following scenario applies to Questions:
Michael and Michelle are partners in M & M Consulting, a firm that specializes in technology-related issues for accounting information systems. They are currently working with a large publicly-traded corporation to implement XBRL for financial reporting to the SEC. The partners are illustrating XBRL to the client's board of directors using a purchase order as an example.
A member of the board expressed concern about the technical aspects of XBRL.-specifically, the time involved in creating tags and the possibility for error. Identify two software tools that can help create XBRL tags automatically.

Question 51

Tagging software
Which of the following statements about tagging software are facts? Place an "X" in the space provided for those that are.
______
a. Human judgment is relevant when tagging software is used.
______
b. Some tagging software packages function as add-ins to other software.
______
c. Tagging software should only be used when taxonomies are extended.
______
d. XBRL International recommends Dragon Tag as the best software for tagging.
______
e. XBRL requires the use of tagging software.

Question 52

The following scenario applies to Questions:
FHU Corporation has been completing its SEC reporting requirements using XBRL for several months; the increased efficiency has increased profits, which in turn has had a positive impacton FHU's stock price. FHU tags its financial data using a dedicated software package. The company's Sarbanes-Oxley audits have become faster and less expensive as a result of XBRL.
The FHU scenario encompasses all the following risk types except:

A) Market risk.
B) Systems risk.
C) Human error risk.
D) Hazard risk.

Question 53

The following scenario applies to Questions:
FHU Corporation has been completing its SEC reporting requirements using XBRL for several months; the increased efficiency has increased profits, which in turn has had a positive impacton FHU's stock price. FHU tags its financial data using a dedicated software package. The company's Sarbanes-Oxley audits have become faster and less expensive as a result of XBRL.
In the FHU scenario, which of the following internal controls addresses human error risk most effectively?

A) Increased efficiency.
B) Dedicated software package.
C) Sarbanes-Oxley audits.
D) Human error risk is not an issue for FHU.

Question 54

Basic XBRL terminology
The text identifies five terms that are important foundations for understanding XBRL. Which term is indicated by each item below?
______
a. Allows users to create new tags.
______
b. Internet "home" of XBRL tag definitions.
______
c. Set of tags used by many organizations.
______
d. Tagged information companies send to the SEC.
______
e. XBRL is a subset of XML.

Question 55

The following scenario applies to Questions:
FHU Corporation has been completing its SEC reporting requirements using XBRL for several months; the increased efficiency has increased profits, which in turn has had a positive impacton FHU's stock price. FHU tags its financial data using a dedicated software package. The company's Sarbanes-Oxley audits have become faster and less expensive as a result of XBRL.
FHU has experienced several benefits from XBRL. Which benefit most clearly helps FHU address market risk?

A) Increased efficiency.
B) Dedicated software package.
C) Sarbanes-Oxley audits.
D) Market risk is not an issue for FHU.

Question 56

Which of the following phrases from the RDR scenario is most closely associated with the term "extensible?"

A) Investment management firm.
B) XBRL.
C) Create a tag.
D) RDR's web site.

Question 57

XBRL terminology. Fill in the blanks below with appropriate words/phrases to define the indicated XBRL terminology.
a. A ______ is a particular example of a larger group. XBRL is part of a larger group of languages referred to as ______.
b. A ______ is a way to organize knowledge. XBRL is made up of several ______ focused on specific ______.
c. A ______ is like an XBRL dictionary. The ______ of ______ would reside in one; they have ______ just like web pages.
d. An ______ is a specific example of ______ XBRL information.
e. The "X" in XBRL stands for ______. Users can add ______to the basic XBRL language without changing its fundamental purpose, ______ or existing ______.