Question 1

Block codes restrict each class to a pre-specified range.

Accepted Answer

A) True 
 B)False

Question 2

What account appears on the post closing trial balance?

Accepted Answer

A)  income summary 
B)  machinery 
C)  rent expense 
D)  interest income

Question 3

Which symbol represents a data store?

Accepted Answer

A)   
B)   
C)   
D)

Question 4

Which step is not found in batch processing using sequential files?

Accepted Answer

A)  control totals 
B)  sort runs 
C)  edit runs 
D)  immediate feedback of data entry errors

Question 5

The portion of the monthly bill from a credit card company is an example of a turn-around document.

Accepted Answer

A) True 
 B)False

Question 6

Sequential codes may be used to represent complex items or events involving two or more pieces of related data.

Accepted Answer

A) True 
 B)False

Question 7

With a limited work force and a desire to maintain strong internal control,which combination of duties performed by a single individual presents the least risk exposure?

Accepted Answer

A)  maintaining the inventory ledger and recording the inventory journal voucher in the general ledger 
B)  recording the inventory journal voucher in the general ledger and maintaining custody of inventory 
C)  maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs 
D)  preparing the accounts payable journal voucher and recording it in the general ledger

Question 8

In a computerized environment,a list of authorized suppliers would be found in the

Accepted Answer

A)  master file 
B)  transaction file 
C)  reference file 
D)  archive file

Question 9

Real-time processing would be most beneficial in handling a firm's

Accepted Answer

A)  fixed asset records 
B)  retained earning information 
C)  merchandise inventory 
D)  depreciation records

Question 10

List and explain the six basic files in the general ledger database.

Accepted Answer

The answer of List and explain the six basic files...

Question 11

Auditors may prepare program flowcharts to verify the correctness of program logic.

Accepted Answer

A) True 
 B)False

Question 12

Most organizations have replaced the general journal with a _______________________________.

Accepted Answer

The answer of Most organizations have replaced the general journal...

Question 13

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

Question 14

The order of the entries made in the ledger is by

Accepted Answer

A)  transaction number 
B)  account number 
C)  date 
D)  user

Question 15

Both the revenue and the expenditure cycle can be viewed as having two key parts.These are

Accepted Answer

A)  manual and computerized 
B)  physical and financial 
C)  input and output 
D)  batch and real-time

Question 16

Only four symbols are used in data flow diagrams.What are they?

Accepted Answer

The answer of Only four symbols are used in data...

Question 17

The general journal is used to record recurring transactions that are similar in nature.

Accepted Answer

A) True 
 B)False

Question 18

Comment on the following statement: "Legacy systems use flat file structures."

Accepted Answer

The answer of Comment on the following statement: "Legacy systems...

Question 19

What are the subsystems of the revenue cycle?

Accepted Answer

The answer of What are the subsystems of the revenue...

Question 20

Subsidiary ledgers are used in manual accounting environments.What file is comparable to a subsidiary ledger in a computerized environment?

Accepted Answer

A)  archive file 
B)  reference file 
C)  transaction file 
D)  master file

Exam 6: Overview of Transaction Processing and Financial Reporting Systems

Block codes restrict each class to a pre-specified range.

What account appears on the post closing trial balance?

Which symbol represents a data store?

Which step is not found in batch processing using sequential files?

The portion of the monthly bill from a credit card company is an example of a turn-around document.

Sequential codes may be used to represent complex items or events involving two or more pieces of related data.

With a limited work force and a desire to maintain strong internal control,which combination of duties performed by a single individual presents the least risk exposure?

In a computerized environment,a list of authorized suppliers would be found in the

Real-time processing would be most beneficial in handling a firm's

List and explain the six basic files in the general ledger database.

Auditors may prepare program flowcharts to verify the correctness of program logic.

Most organizations have replaced the general journal with a _______________________________.

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

The order of the entries made in the ledger is by

Both the revenue and the expenditure cycle can be viewed as having two key parts.These are

Only four symbols are used in data flow diagrams.What are they?

The general journal is used to record recurring transactions that are similar in nature.

Comment on the following statement: "Legacy systems use flat file structures."

What are the subsystems of the revenue cycle?

Subsidiary ledgers are used in manual accounting environments.What file is comparable to a subsidiary ledger in a computerized environment?