Question 1

Source data automation refers to

Accepted Answer

A) using devices to capture transaction data in machine-readable form at the time the transaction is initiated. 
B) using the internet as the operating platform of an accounting information system. 
C) using an accounting information system to electronically bill customers. 
D) using an accounting information system to automate a previously manual transaction process.

Question 2

The general ledger account that corresponds to a subsidiary ledger account is known as a(n)

Accepted Answer

A) dependent account. 
B) control account. 
C) credit account. 
D) attribute account.

Question 3

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 price of the Japanese fans is a(n)

Accepted Answer

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

Question 4

Changing a customer's credit limit would be recorded where?

Accepted Answer

A) Customer master file. 
B) Customer transaction file. 
C) Special journal. 
D) Customer update file.

Question 5

A general journal

Accepted Answer

A) would be used to record monthly depreciation entries. 
B) simplifies the process of recording large numbers of repetitive transactions. 
C) records all detailed data for any general ledger account that has individual sub-accounts. 
D) contains summary-level data for every account of the organization.

Question 6

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 represents a(n)

Accepted Answer

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

Question 7

What is the final step in the data processing cycle?

Accepted Answer

A) output 
B) storage 
C) processing 
D) input

Question 8

A change in an employee's hourly pay would be recorded in

Accepted Answer

A) the payroll master file. 
B) a payroll transaction file. 
C) the employee master file. 
D) the employee transaction file.

Question 9

Which of the following statements regarding special journals is not true?

Accepted Answer

A) The balances in a special journal must always reconcile to the general ledger. 
B) Special journals are used to record large numbers of repetitive transactions. 
C) Special journals are periodically summarized and posted to the general ledger. 
D) Special journals provide a specialized format for recording similar transactions.

Question 10

Identify the statement below that is false with regards to effective coding practices.

Accepted Answer

A) Codes should allow for growth. 
B) Codes should be consistent with intended use. 
C) Codes should be customized for each division of an organization. 
D) Codes should be as simple as possible.

Question 11

When the sum of all entries in the subsidiary ledger equals the balance in the corresponding general ledger account,it is assumed that

Accepted Answer

A) the recording processes were accurate. 
B) all source documents were recorded. 
C) adjusting entries are not required. 
D) no errors exist in the subsidiary ledger.

Question 12

A chart of accounts is an example of (select all that apply)

Accepted Answer

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

Question 13

Implementation of an ERP system requires increased focus on all except which of the following controls?

Accepted Answer

A) segregation of duties between custody,authorization,and recording 
B) data entry controls on validity and accuracy 
C) controls over access to data 
D) appropriate disposal of hard copy reports

Question 14

Which of the following commonly initiates the data input process?

Accepted Answer

A) a business activity 
B) automatic batch processing 
C) an accounting department source document 
D) a trial balance query

Question 15

Implementation of an ERP system requires effective segregation of responsibility for

Accepted Answer

A) recording,risk assessment,and control procedures. 
B) authorization,monitoring,and risk assessment. 
C) recording and monitoring of organizational assets. 
D) authorization,recording,and custody of organizational assets.

Question 16

Which of the following statements about data processing methods is true?

Accepted Answer

A) Online real-time processing does not store data in a temporary file. 
B) Batch processing cannot be used to update a master file. 
C) Control totals are used to verify accurate processing in both batch and online batch processing. 
D) Online real-time processing is only possible with source data automation.

Question 17

To be effective,the chart of accounts must

Accepted Answer

A) not use alpha-numeric characters. 
B) contain sufficient detail. 
C) utilize only one coding technique. 
D) begin with account 001.

Question 18

A specialized journal

Accepted Answer

A) is used to record infrequent or non-routine transactions. 
B) simplifies the process of recording large numbers of repetitive transactions. 
C) records all detailed data for any general ledger account that has individual sub-accounts. 
D) contains summary-level data for every account of the organization.

Question 19

Making payments to a vendor,with whom a credit line is already established,would be initially recorded in which type of accounting record and as part of what transaction cycle?

Accepted Answer

A) purchases journal;expenditure cycle 
B) general journal;expenditure cycle 
C) general ledger;expenditure cycle 
D) cash disbursements journal;expenditure cycle

Question 20

The existence of relevant data guarantees the data are useful.

Accepted Answer

A) True 
 B)False

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