Deck 8: XBRL

Question 1

The text discussed five terms related to the structure of XBRL.Which of the following pairs of items includes two examples of the same term?

A)XML, XBRL
B)Global Ledger, invoice
C)Global Ledger, XBRL
D)None of these

Answer 1

D

Question 2

Examples of XBRL instance documents include:

A)Statement of cash flows
B)Balance sheet
C)Income statement
D)All of these

Answer 2

D

Question 3

Which of the following statements about XBRL is most true?

A)Because it is extensible, companies can create new specifications that reside in an Internet namespace.
B)Because it is organized in taxonomies, it is extensible.
C)Because it is extensible, companies can create tags that are used in instance documents, as long as they are defined in a namespace.
D)All of these statements are true.

Answer 3

C

Question 4

XBRL's global ledger taxonomy can be used for transaction processing, while the US financial reporting taxonomy is focused on output reports.Which of the following XBRL tags would you expect to find as part of the US financial reporting taxonomy?

A)invoice
B)10000
C)Both invoice and 10000
D)Neither invoice nor 10000

Question 5

XBRL is structured into taxonomies which reside in namespaces.All of the following are namespaces except:

A)http://xbrl.us/country/2008-10-31
B)http://xbrl.us/rr/2008-12-31
C)http://xbrl.us/mda/2008-10-31
D)http://xbrl.org

Question 6

XBRL's structure is flexible, so companies can extend it when the need arises.Which of the following terms is most likely to require an extension of an existing XBRL taxonomy?

A)Asset
B)Operating cash flow
C)Both Asset and Operating cash flow will likely require an extension of an existing taxonomy.
D)Neither Asset nor Operating cash flow will likely require an extension of an existing taxonomy.

Question 7

With respect to XBRL, Global Ledger and International Financial Reporting Standards are:

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

Question 8

Most accounting information systems comprise five generic elements.As a tool for preparing financial statements, XBRL is most closely associated with:

A)Processing
B)Input
C)Output
D)Storage

Question 9

XBRL's global ledger taxonomy can be used for transaction processing, while the US financial reporting taxonomy is focused on output reports.Which of the following XBRL tags would you expect to find as part of the global ledger taxonomy?

A)invoice
B)10000
C)Both invoice and 10000
D)Neither invoice nor 10000

Question 10

XBRL provides ___ for a company's financial information.

A)Context
B)GAAP
C)Both context and GAAP
D)Neither context nor GAAP

Question 11

ABC Corporation, a US manufacturer, files its 10-K annual report with the SEC using XBRL.Being a US manufacturer tells ABC which ___ to use; the 10-K is a(n) ___.

A)Taxonomy; instance document
B)Taxonomy; specification
C)Specification; instance document
D)Specification; taxonomy

Question 12

The accounting cycle comprises ten steps.In which step is an XBRL taxonomy first likely to be used?

A)Post from the journal to the ledger.
B)Record the transactions in a journal.
C)Prepare financial statements.
D)Close the nominal accounts to retained earnings.

Question 13

The "X" in XBRL stands for extensible.Which of the following can an individual company extend when using XBRL?

A)Instance documents
B)Taxonomies
C)Specifications
D)All of these

Question 14

Which of the following terms describes the relationship between XBRL and XML?

A)Extensible
B)Specification
C)Taxonomy
D)Instance document

Question 15

Because XBRL is an "open source" information technology tool, companies can:

A)Add tags as necessary.
B)Choose which tagging software they will use.
C)Both add tags as necessary and choose which tagging software they will use.
D)Neither add tags as necessary nor choose which tagging software they will use.

Question 16

XBRL is organized in taxonomies.All of the following are XBRL taxonomies except:

A)US Country Taxonomy 2009
B)IFRS-GP
C)XML taxonomy
D)XBRL-GL

Question 17

The Internet address that defines XBRL tags is called a(n):

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

Question 18

In the notation , ifrs-gp is a ___ which would reside in a ___ on the Internet.

A)Namespace; taxonomy
B)Taxonomy; specification
C)Namespace; specification
D)Taxonomy; namespace

Question 19

Which of the following terms best explains the idea that anyone can add to XBRL?

A)Extensible
B)Specification
C)Taxonomy
D)Namespace

Question 20

SEC filings that use XBRL are labeled in EDGAR as:

A)Instance documents.
B)Interactive data.
C)XBRL documents.
D)XBRL data.

Question 21

OTH Corporation prepares its general-purpose financial statements with Sage 50 Complete Accounting.If OTH wanted to prepare XBRL instance documents, it must also use:

A)Spreadsheet software, such as Excel.
B)Relational database software, such as Access.
C)Both spreadsheet software, such as Excel and relational database software, such as Access.
D)Neither spreadsheet software, such as Excel nor relational database software, such as Access.

Question 22

Tagging software such as Ez-XBRL is often used in conjunction with what other type of software?

A)Spreadsheets.
B)General ledger.
C)Both Spreadsheets and General ledger.
D)Neither Spreadsheets nor General ledger.

Question 23

In connection with spreadsheets, Rivet Software and Ez-XBRL are best used for which of the following tasks?

A)Creating XBRL instance documents.
B)Preparing presentations on XBRL.
C)Both creating XBRL instance documents and preparing presentations on XBRL.
D)Neither creating XBRL instance documents nor preparing presentations on XBRL.

Question 24

Organizations can benefit from XBRL by obtaining quicker responses from counterparties.Examples of counterparties include:

A)The SEC.
B)Lenders.
C)Both the SEC and lenders.
D)Neither the SEC nor lenders.

Question 25

Most accounting information systems comprise five elements.XBRL tagging software is most closely associated with:

A)Inputs.
B)Processing.
C)Outputs.
D)Storage.

Question 26

Most organizations use ___ to prepare XBRL instance documents.

A)Tagging software
B)Document flowcharts
C)Both tagging software and document flowcharts
D)Neither tagging software nor document flowcharts

Question 27

When organizations use XBRL, they can free themselves from:

A)Proprietary systems.
B)The steps in the accounting cycle.
C)Both proprietary systems and the steps in the accounting cycle.
D)Neither proprietary systems nor the steps in the accounting cycle.

Question 28

The text discussed five terms related to the structure of XBRL.Which of the following pairs of items includes two examples of the same term?

A)Balance sheet, Form 10-K
B)Global Ledger, International Financial Reporting
C)Both balance sheet, Form 10-K and global Ledger, International Financial Reporting
D)Neither balance sheet, Form 10-K nor global Ledger, International Financial Reporting

Question 29

Consider the following flowchart symbols as you respond to the question: BLG Corporation uses systems flowcharts to teach its new employees about company procedures.If BLG adopts XBRL, those system flowcharts will likely incorporate fewer of ___ because ___.

A)Symbol C; databases are unnecessary when using XBRL
B)Symbol A; no manual processes are permitted when using XBRL
C)Symbol A; XBRL automates many tasks that may have been completed manually
D)None of these; the use of XBRL will not affect symbols used in systems flowcharts.

Question 30

Bumble Beasley commented: "I understand the benefits of XBRL, but tagging all our company's journal entries and financial statements is too much work." Which of the following is the best response to Bumble's comment?

A)XBRL cannot be used to tag journal entries.
B)The tagging process can be automated.
C)Both XBRL cannot be used to tag journal entries and the tagging process can be automated.
D)Neither XBRL cannot be used to tag journal entries nor the tagging process can be automated.

Question 31

Which of the following would most effectively be used to select XBRL tagging software?

A)Expectancy theory
B)Weighted-rating model
C)COSO enterprise risk management framework
D)Accounting cycle

Question 32

Examples of XBRL tagging software include:

A)Internet Explorer
B)PowerPoint
C)Both Internet Explorer and PowerPoint
D)Neither Internet Explorer nor PowerPoint

Question 33

The accounting cycle comprises ten steps.Companies that use XBRL do not have to:

A)Prepare journal entries.
B)Close the nominal accounts.
C)Both prepare journal entries and close the nominal accounts.
D)Neither prepare journal entries nor close the nominal accounts.

Question 34

From an accountant's perspective, one of the benefits of XBRL is the ability to focus effort on analysis and value-added work.Value-added work includes such items as

A)Posting entries from the journal to the ledger.
B)Interpreting financial statement ratios.
C)Both posting entries from the journal to the ledger and interpreting financial statement ratios.
D)Neither posting entries from the journal to the ledger nor interpreting financial statement ratios.

Question 35

XBRL allows organizations to simplify the process and reduce the costs involved in regulatory reporting to agencies such as:

A)The IRS.
B)The SEC.
C)Both the IRS and the SEC.
D)Neither the IRS nor the SEC.

Question 36

Tagging software is used to prepare XBRL:

A)Instance documents
B)Taxonomies
C)Namespaces
D)Internal controls

Question 37

Consider the following flowchart symbols as you respond to the question: BLG Corporation uses systems flowcharts to teach its new employees about company procedures.If BLG adopts XBRL, those system flowcharts will likely incorporate fewer of ___ and more of ___.

A)Symbol A; Symbol C
B)Symbol B; Symbol A
C)Symbol C; Symbol A
D)None of these; the use of XBRL will not affect symbols used in systems flowcharts.

Question 38

Benefits of XBRL include:

A)Achieving quicker and more efficient decisions.
B)Improving investor relations through provision of more transparent and user-friendly information.
C)Both achieving quicker and more efficient decisions and improving investor relations through provision of more transparent and user-friendly information.
D)Neither achieving quicker and more efficient decisions nor improving investor relations through provision of more transparent and user-friendly information.

Question 39

From an accountant's perspective, one of the benefits of XBRL is the ability to obtain more rapid and reliable data and information on company financial performance.Such items would include:

A)General purpose financial statements.
B)Chart of accounts.
C)Both general purpose financial statements and chart of accounts.
D)Neither general purpose financial statements nor chart of accounts.

Question 40

XBRL allows organizations to focus effort on analysis, forecasting and decision making.Which of the following includes one example of each of those tasks?

A)Interpreting financial statement ratios, preparing a sales budget, raising or lowering prices
B)Preparing a sales budget, forecasting future risks using the COSO framework, adopting new internal controls
C)Interpreting financial statement ratios, forecasting future risks using the COSO framework, raising sales prices
D)Preparing a sales budget, lowering sales prices, creating a systems flowchart

Question 41

Consider the table below as you answer the questions: The XBRL tags in the table would be included in ___ called ___.

A)a taxonomy; an income statement
B)a taxonomy; a namespace
C)an instance document; an income statement
D)an instance document; a namespace

Question 42

COSO published two integrated frameworks to assist organizations in managing risk and developing internal controls.Organizations adopting XBRL could use:

A)The risk management framework only.
B)The internal control framework only.
C)Both the risk management and internal control frameworks.
D)Neither the risk management nor the internal control framework.

Question 43

Consider the table below as you answer the questions: In the table, "E" would most appropriately be replaced with:

A)Name
B)Namespace prefix
C)Data type
D)Some other label

Question 44

Consider the table below as you answer the questions: In the table, "C" would most appropriately be replaced with:

A)Data type
B)Balance type
C)Period type
D)Some other label

Question 45

Consider the table below as you answer the questions: Which of the following is generally capable of interpreting the XBRL tags in the table?

A)Excel
B)Internet Explorer
C)Both Excel and Internet Explorer
D)Neither Excel nor Internet Explorer

Question 46

Internal controls have four fundamental purposes.Which of the following pairs an internal control for XBRL with an appropriate purpose of internal control?

A)Centralized approval process for taxonomy additions, encouraging compliance with management directives
B)Daily data backups, safeguarding assets
C)Both centralized approval process for taxonomy additions, encouraging compliance with management directives and daily data backups, safeguarding assets
D)Neither centralized approval process for taxonomy additions, encouraging compliance with management directives nor daily data backups, safeguarding assets

Question 47

Consider the table below as you answer the questions: In the table, "B" would most appropriately be replaced with:

A)Namespace prefix
B)Data type
C)Balance type
D)Some other label

Question 48

Internal controls have four fundamental purposes.Which of the following pairs an internal control for XBRL with an appropriate purpose of internal control?

A)Electronic tagging, promoting operating efficiency
B)Centralized approval process for taxonomy additions, safeguarding assets
C)Both electronic tagging, promoting operating efficiency and centralized approval process for taxonomy additions, safeguarding assets
D)Neither electronic tagging, promoting operating efficiency nor centralized approval process for taxonomy additions, safeguarding assets

Question 49

Consider the table below as you answer the questions: In the table, "us_gaap" would best be described as:

A)a taxonomy
B)a namespace
C)an instance document
D)an application of the FASB Conceptual Framework

Question 50

As a form of internal control for XBRL, periodic user training best addresses the risk of:

A)Tagging errors.
B)Data lost in transmission.
C)Both tagging errors and data lost in transmission.
D)Neither tagging errors nor data lost in transmission.

Question 51

Internal control risks associated with XBRL include all of the following except:

A)Hardware and software failure.
B)Lack of appropriate tags.
C)Selecting an appropriate taxonomy.
D)Compromised data.

Question 52

Consider the table below as you answer the questions: In the table, "A" would most appropriately be replaced with:

A)Name
B)Namespace prefix
C)Data type
D)Some other label

Question 53

As a form of internal control to address the risk of inappropriate/missing authorizations, internal audit review of selected transactions is best described as:

A)A general control.
B)An application control.
C)A behavioral control.
D)A financial control.

Question 54

Consider the table below as you answer the questions: The data in the table were part of Microsoft's filings with the SEC.Which of the following XBRL taxonomies would Microsoft use to make journal entries in its AIS?

A)Global Ledger
B)US GAAP
C)SEC
D)Some other taxonomy

Question 55

Internal control risks associated with XBRL include:

A)Compromised data.
B)Tagging errors.
C)Both compromised data and tagging errors.
D)Neither compromised data nor tagging errors.

Question 56

Consider the table below as you answer the questions: The data in the table were part of Microsoft's filings with the SEC.Which of the following statements is most true?

A)All publicly traded firms must use the Global Ledger Taxonomy for SEC filings.
B)All publicly traded firms must use XBRL for SEC filings.
C)Firms that are not publicly traded cannot use XBRL.
D)Companies that use the International Financial Reporting Standards cannot use XBRL.

Question 57

Compromised data and tagging errors are most closely associated with which element of the COSO enterprise risk management framework?

A)Objective setting
B)Internal environment
C)Risk assessment
D)Monitoring

Question 58

An internal auditor is given responsibility for reviewing selected XBRL-tagged documents as a form of internal control.If the internal auditor does not fulfill that responsibility, which of the following may help explain and correct the problem?

A)Expectancy theory
B)Weighted-rating model
C)Generic AIS elements
D)AICPA Core Competencies framework

Question 59

Consider the table below as you answer the questions: In the table, "D" would most appropriately be replaced with:

A)Balance type
B)Name
C)Data type
D)Some other label

Question 60

A disaster recovery plan is a good internal control for which of the following risks associated with XBRL?

A)Tagging errors
B)Software failure
C)Both tagging errors and software failure
D)Neither tagging errors nor software failure

Question 61

The use of XBRL creates some risk exposures for organizations; those risk exposures should be addressed via various forms of internal control.Use the COSO internal control framework to develop a plan specific to the risks associated with XBRL.Ensure that you discuss all five elements of the COSO framework.

Question 62

What feature of XBRL is indicated by the highlighted phrase in each of the following items? (Do not limit yourself to the five key terms discussed in the text.)
a.A bank would use a different set of XBRL tags than a manufacturer.
b.Certain sets of XBRL tags conform to both a specific version of XBRL and XBRL guidelines for specific sets of tags.
c.Companies can tag their general purpose financial statements with XBRL, as well as their SEC filings.
d.No-one pays to use XBRL.
e.Software capable of interpreting XBRL tags can look on the Internet to find the meaning of those tags.
f.Some sets of XBRL tags conform only to a specific version of XBRL; they need further development.
g.Syntax and punctuation are important when creating an instance document.
h.There are many languages similar to XBRL; all of them belong to the larger XML family.
i.There is an entire set of tags devoted to managing internal information, such as a chart of accounts or journal entries.
j.XBRL facilitates interpretation of accounting numbers.

Question 63

The capability maturity model has five levels: chaotic, repeatable, defined, managed, and optimized.Could an organization benefit from using XBRL at each of the five levels? If so, how? If not, why not? Ensure that your response addresses each level individually.

Question 64

Consider the list of terms below.Select those that are fundamental to understanding XBRL; explain the meaning of each fundamental term.Business process management
Capability maturity model
Extensible
Flowcharting
Form 10-K
Instance document
Internal control
Namespace
Specification
Taxonomy

Question 65

Explain the structure of XBRL, including its relationship to XML.

Question 66

Fill in the blanks below based on the benefits of XBRL discussed in the text.
a.Consolidates results across ___ with much greater speed and reliability.
b.Focus effort on ___, rather than on laborious tasks in gathering, compiling and preparing data.
c.Free themselves from ___ systems and software which are difficult and costly to replace.
d.Improve investor relations through provision of more ___ information.
e.Saves costs by preparing data in one form and automatically generating ___.

Question 67

Rivet Software is one option for creating XBRL-tagged documents.Many organizations follow the six steps listed below to do so; prepare a systems flowchart of the six steps.(Assume all six steps are completed in the same department.) 1.Download taxonomies.2.Open tagging software and the file to be tagged.3.Set up an entity profile.4.Mark up the data.5.Validate the document.6.Export the data as an XBRL document.

Question 68

The use of XBRL creates some internal control issues for organizations.Match each risk exposure on the left with the most appropriate control on the right.Use each control only one time.

Question 69

XBRL creates risk exposures for organizations that use it; those risk exposures have to be addressed via various forms of internal control.As discussed previously in the text, internal controls can be classified by purpose (preventive/detective/corrective) and their relationship to the organization's information system (general/application).Consider the list of risks and controls below; for each item, indicate whether the control is primarily preventive/detective/corrective.Also indicate whether the control is a general or application control.

Question 70

The chapter discussed five key terms related to XBRL: extensible, specification, taxonomy, namespace and instance document.Specify which term is most appropriately associated with each item below.
a.A specific example of properly tagged XBRL information.
b.A way to organize knowledge.
c.The Internet address that contains the meanings of XBRL tags.
d.The quality of XBRL that allows people to add to it as necessary.
e.The relationship between XBRL and XML.

Question 71

The text discussed five key terms related to XBRL.Which one best applies to each of the following items?
a.Amanda said: "Here is the list of asset accounts we'll need to tag in XBRL; it includes items like cash and accounts receivable."
b.Eugene expected to finish tagging the company's financial statements before the end of the day.
c.Jeff asked his supervisor which set of XBRL tags the company should use.
d.Molly wondered where she could find the meaning and interpretation of XBRL tags.
e.Sue commented: "Our company is so unique, I'm sure we'll need to supplement existing tags before we can use XBRL."

Question 72

Explain, in your own words, how most organizations create XBRL instance documents.Specifically address the role of information technology in that process.

Question 73

XBRL creates certain benefits for both accountants and organizations.Consider the statements below; rewrite each one to reflect a benefit of XBRL.1) A company with divisions in more than one country will have to cope with differences in hardware, software, language, currency and terminology in preparing its consolidated financial statements.2) Decision making in accounting information systems that do not use XBRL may be slow and inefficient because information is not as readily available.3) SEC and IRS filings can be very time consuming without XBRL.4) The bookkeeping process in view-driven accounting information systems is costly and prone to error because it constantly rearranges previously collected data into new forms.5) Without the benefit of XBRL, accountants spend a lot of time gathering data and formatting it based on the decisions to be made with it.

Question 74

Using XBRL creates some risk exposures for organizations; an effective tool for managing risk exposures is the risk/control matrix.Using the format discussed in the text, create a risk/control matrix for the risk of XBRL tagging errors.