Question 1

Which of the following is an example of an ERP system?

Accepted Answer

A) Alexis uses a computerized information system to keep track of all the financial data generated by her bakery.She is considering opening a new bakery on the east side of town. 
B) Betty has a system that keeps track of the accounts payable and receivable for her plumbing business.At the end of the year,the system helps her to prepare her taxes in just two hours. 
C) Charlie keeps records of all his business records in a shoe box.Each week he enters all of the data into spreadsheets that automatically generate purchase orders,based on predetermined inventory reorder points.Production quotas for the coming week are also automatically generated based on customer orders. 
D) Doug is a freelance photographer.He keeps records of all expenses and revenues on his cell phone and then e-mails them to himself every month.The files are stored on his personal computer and backed up to CD quarterly.

Question 2

The chart of accounts of a fast-food restaurant would probably include

Accepted Answer

A) a list of vendors. 
B) a list of financial statement accounts. 
C) a list of customers. 
D) a list of employees.

Question 3

Which of the following is not considered a source document?

Accepted Answer

A) A copy of the company's financial statements. 
B) A copy of the company's shipping document. 
C) A copy of the company's sales journal. 
D) A copy of the company's ledger.

Question 4

Common source documents for the revenue cycle include all of the following except

Accepted Answer

A) sales order. 
B) receiving report. 
C) delivery ticket. 
D) credit memo.

Question 5

The collection of employee time sheets is part of which transaction cycle?

Accepted Answer

A) the revenue cycle 
B) the production cycle 
C) the human resources cycle 
D) the expenditure cycle

Question 6

Identify the item below that is not one of the four different types of data processing activities.

Accepted Answer

A) creating 
B) reading 
C) using 
D) deleting

Question 7

Catarina Boards is a skateboard retailer located in Pueblo,New Mexico.Catarina Boards is a sole proprietorship that stocks an inventory of between 30 and 50 different skateboards.Inventory is updated in real time by the AIS.If Catarina wishes to keep a cumulative information about its company',it might use a

Accepted Answer

A) relational ledger. 
B) transaction file. 
C) master file. 
D) specific ledger.

Question 8

John Pablo works in the accounting department of a multinational manufacturing company.His job includes updating accounts payable based on purchase orders and checks.His responsibilities are part of the company's

Accepted Answer

A) revenue cycle. 
B) expenditure cycle. 
C) financing cycle. 
D) production cycle.

Question 9

Describe the basic cycles and business activities for a typical merchandising company.

Accepted Answer

The answer of Describe the basic cycles and business activities...

Question 10

In Petaluma,California,electric power is provided to consumers by Pacific Power.Each month Pacific Power mails bills to 186,000 households and then processes payments as they are received.What is the best way for this business to ensure that payment data entry is efficient and accurate?

Accepted Answer

A) well-designed paper forms 
B) source data automation 
C) turnaround documents 
D) sequentially numbered bills

Question 11

Describe guidelines to follow for a well-designed coding system.

Accepted Answer

The answer of Describe guidelines to follow for a well-designed...

Question 12

Source documents generally help to improve accuracy in transaction processing because

Accepted Answer

A) they specify which information to collect. 
B) logically related data can be grouped in the same area of the document. 
C) they provide directions and steps for completing the form. 
D) All of the above are correct.

Question 13

Build Smarts is a supplier of building materials to more than 150 builders in the state of Illinois.What is the best way for Build Smarts to ensure that all sales are recorded?

Accepted Answer

A) well-designed paper forms 
B) source data automation 
C) turnaround documents 
D) sequentially numbered sales invoices

Question 14

Pre-numbered shipping documents and pre-numbered invoices are examples of

Accepted Answer

A) sequence codes. 
B) block codes. 
C) group codes. 
D) mnemonic codes.

Question 15

Antia Carmie is the largest collector and retailer of Japanese fans in the St.Louis area.Antia uses computer technology to provide superior customer service.The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers.Accordingly,the fan price and condition are provided for each fan,along with many pictures of each fan.In Antia's database,the data about each Japanese fan's price is stored in a(n)

Accepted Answer

A) entity. 
B) attribute. 
C) field. 
D) record.

Question 16

In an ERP system,the module used to record data about transactions in the revenue cycle is called

Accepted Answer

A) order to cash. 
B) purchase to pay. 
C) financial. 
D) customer relationship management.

Question 17

Describe an audit trail.

Accepted Answer

The answer of Describe an audit trail....

Question 18

A purchase requisition is a common source document used to facilitate which business activity?

Accepted Answer

A) customer sale 
B) receipt of goods 
C) inventory purchase 
D) purchase request

Question 19

A specialized journal would be most likely to be used to enter

Accepted Answer

A) sales transactions. 
B) monthly depreciation adjustments. 
C) annual closing entries. 
D) stock issuance transactions.

Question 20

Describe four advantages and four disadvantages of implementing an ERP system at a multinational corporation.

Accepted Answer

The answer of Describe four advantages and four disadvantages of...

Exam 2: Overview of Transaction Processing and Enterprise Resource Planning Systems