Question 1

Explain how data is organized and stored in an AIS.

Accepted Answer

The answer of Explain how data is organized and stored...

Question 2

Identify the statement below that is not true with regards to the accounts receivable subsidiary ledger.

Accepted Answer

A) Every credit sale is entered individually into the subsidiary ledger. 
B) Debits and credits in the subsidiary ledger must always equal. 
C) The subsidiary ledgers play an important role in maintaining the accuracy of the data stored in the AIS. 
D) The total of the subsidiary ledgers must equal the control account.

Question 3

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 4

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 5

All of the following are reasons that implementing a new ERP may fail except

Accepted Answer

A) employees may resist using the ERP system. 
B) ERPs can take years to fully implement. 
C) employees may refuse to share sensitive information with different departments. 
D) ERPs may require procedures and reports to be standardized across business units.

Question 6

All of the following are ERP vendors except

Accepted Answer

A) Dell. 
B) SAP. 
C) Oracle. 
D) Microsoft.

Question 7

The general ledger

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 8

ERP stands for

Accepted Answer

A) enterprise resource planning. 
B) enterprise resource program. 
C) enterprise reporting program. 
D) none of the above

Question 9

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

Accepted Answer

A) Sam uses a computerized information system to keep track of all the financial data generated by her restaurant. 
B) Jim has a system that keeps track of the cash receipts and cash disbursements of his mowing business. At the end of each month, the system helps him to prepare a monthly profit and loss statement. 
C) Jane is a freelance photographer. She keeps records of all expenses and revenues on her cell phone app and the files are uploaded to the cloud on a regular basis.. 
D) Claire keeps records of all her business records in an Excel file. Each week she enters all of the data into a system that automatically generates purchase orders, based on predetermined inventory reorder points. Production quotas for the coming week are also automatically generated based on customer orders.

Question 10

The Cape Fear Rocket Club heads out to the dunes of Cape Fear,Oregon every August to pierce the sky with their fiery projectiles.An enterprising seller of t-shirts has devised a series of designs that capture the spirit of the event in silk-screened splendor.His employees can be found on many of the major intersections selling his products out of the backs of pickup trucks.What is the best way for this business to ensure that sales data entry is efficient and accurate?

Accepted Answer

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

Question 11

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 12

Issuing a purchase order is part of which transaction cycle?

Accepted Answer

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

Question 13

Identify the four parts of the transaction processing cycle.

Accepted Answer

A) data input, data storage, data processing, information output 
B) data input, data recall, data processing, information output 
C) data input, data recall, data transmission, information output 
D) data input, data recall, data transmission, data storage

Question 14

All of the following are disadvantages of an ERP system except

Accepted Answer

A) an ERP provides an integrated view of the organization's data. 
B) ERP software and hardware can cost midsized companies between $10 million and $20 million dollars. 
C) ERPs frequently cause organizations to change their business processes to standardized ones. 
D) ERPs are relatively complex.

Question 15

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 16

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 17

The existence of relevant data guarantees the data are useful.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an example of source data automation?

Accepted Answer

A) a utility bill 
B) POS (point-of-sale)scanners in retail stores 
C) a bill of lading 
D) a subsidiary ledger

Question 19

When displayed on a monitor,data output is referred to as

Accepted Answer

A) reports. 
B) hard copy. 
C) soft copy. 
D) financials.

Question 20

Product items are often coded with (select all that apply)

Accepted Answer