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Study Resources (Accounting)

51.An example of concealment would include: A.Changing the payee on a check improperly paid by the organization. B.Selling a piece of inventory that has been stolen. C.Stealing money from an organization before the related sale and cash receipt has been recorded. D.All of the above are examples of concealment. 52.Changing the accounting records to hide.
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TEXTBOOK – CHAPTER 3 – PROBLEMS 156.Identify whether each of the following accounting positions or duties involves authorization, recording, or custody: •cashier •payroll processor •credit clerk •mailroom clerk •data entry clerk •deliver paychecks •deliver the bank deposit •prepare the bank reconciliation •check signer •inventory warehouse supervisor •staff accountant   .
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– CHAPTER 2 – SHORT ESSAY: 160. Think about your most recent appointment at the dentist’s office. Describe the business process that affected you as the patient/customer. In addition, describe the administrative and accounting processes that are likely to support this business.  161. Describe the purpose of each of the following parts of.
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67.This type of authentication uses some unique physical characteristic of the user to identify the user and allow the appropriate access to the system. A.Nonrepudiation card B.Biometric device C.Configuration table D.Computer log 68.Which of the following is not an example of physical characteristics being used in biometric devices? A.Retina scans B.Fingerprint matching C.Social security number D.Voice verification 69.There are.
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113.When discussing entity relationship diagrams, this is considered to be a noun that represents items in the accounting system: A.Attribute B.Relationship C.Entity D.Flow 114.When discussing entity relationship diagrams, this is considered to be a characteristic of an entity. A.Attribute B.Flow C.Relationship D.Field 115.The rectangle used in an entity relationship diagram is used to represent a(n): A.Attribute B.Relationship C.Entity D.  Process 116.The diamond used in an.
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43.Which of the following statements is true? A.Most accounting systems in use today are computerized systems. B.All accounting systems, whether computerized or not, must capture data, process the data, and provide outputs C.It is not necessary for an accounting system to maintain summary information if it maintains detail information. D.The general ledger will be.
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– CHAPTER 2 – END OF CHAPTER QUESTIONS: 125.Which of the following statements is not true? A.Accounting information systems must maintain both detail and summary information. B.Business processes may vary from company to company. C.Regardless of the extent of computerization, all accounting information systems must capture data from the transactions within business processes. D.Business processes.
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165. Using IT systems to input accounting data can reduce costs, time, and errors. Give an example showing how you think IT systems can lead to these reductions (cost, time, and errors). 166. Identify whether the following reports would be categorized as trading partner documents, internal documents, internal reports, or.
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87.This type of software should be used to avoid destruction of data programs and to maintain operation of the IT system.  It continually scans the system for viruses and worms and either deletes or quarantines them. A.Penicillin Software B.Antivirus Software C.Infection Software D.Internet Software 88.The process of proactively examining the IT system for weaknesses that.
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63.Frontware, which adds modern, user friendly screen interfaces to legacy systems are referred to as: A.Turnaround software B.Graphical user face C.COBOL D.Screen scrapers 64.Instead of completely replacing their systems, organizations often try to use new technology to enhance existing systems.  Which of the following is not one of the approaches taken by the se organizations? A.Enterprise.
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157.Identify whether each of the following activities represents preventative controls, detective controls, or corrective controls: •Job rotation – •Preparation of a bank reconciliation – •Segregation of duties – •Recalculating totals on computer reports – •Use of passwords – •Preparing batch totals for check processing – •Establishing a code of ethics – •Use of a security guard – •Verifying source documents.
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71.The theft of proprietary company information is called: A.Vendor fraud. B.Customer fraud. C.Espionage. D.Management fraud. 72.Which of the following is a characteristic of computer fraud? A.A computer is used in some cases to conduct a fraud more quickly and efficiently. B.Computer fraud can be conducted by employees within the organization. C.Computer fraud can be conducted by users outside.
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91. The COSO report identified a component of internal control as the policies and procedures that help ensure that management directives are carried out and that management directives are achieved The component is: A.Control activities. B.Risk assessment. C.Monitoring. D.Information and communication. 92. The range of activities that make up the component of internal control referred to as.
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97.General controls for an IT system include: A.Controls over the physical environment only. B.Controls over the physical access only. C.Controls over the physical environment and over the physical access. D.None of the above. 98.A battery to maintain power in the event of a power outage meant to keep the computer running for several minutes after.
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– CHAPTER 2 – SHORT ANSWER QUESTIONS: 137. What is the relationship between business processes and the accounting information system? 138. Why is it sometimes necessary to change business processes when IT systems are applied to business processes?  139. Are manual systems and processes completely outdated?  139. What is the purpose of.
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103.When creating or reading a system flowchart, the triangle symbol represents a: A.File B.Direct access storage C.Manual input D.Document 104.When creating or reading a system flowchart, the diamond represents a(n): A.On-page connector B.Decision C.Data D.Process 105.When creating or reading a system flowchart, the rectangle represents a(n): A.Decision B.Off-page connector C.Document D.Process 106.The documenting system that shows the flow of documents and information among departments or.
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141. Why would the training of employees be an impediment to updating legacy systems? 142. Why is it true that the accounting software in and of itself is not the entire accounting information system?  143. How is integration across business processes different between legacy systems and modern, integrated systems?  144. Why do.
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53.Special journals are created, or established, to record specific types of transactions.  Which of the following is not one of the special journals? A.Fixed Asset Journal B.Cash Receipts Journal C.Purchases Journal D.Payroll Journal 54.The purpose of this item is to maintain the detailed information regarding routine transactions, with an account established for each entity. A.Purchases Journal B.Subsidiary.
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146. What are some of the differences between ERP systems and accounting software for small companies?  147. Why would accounting software development companies be interested in expanding their software products into other market segments? 148. Given the business and accounting environment today, do you think it is still important to understand the manual.
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51. The form authorization and control includes the requirement that source documents should be prenumbered and are to be used in sequence. 52.Once the data from the source documents have been keyed into the computer, the source document can be destroyed. 53.With the proper training of employees and the adequate controls, it.
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81.The objectives of an internal control system include all of the following except: A.Maintain ongoing education. B.Safeguard assets. C.Maintain accuracy and integrity of accounting data. D.Ensure compliance with management directives. 82.The authors presented their “picture” of internal control as a series of umbrellas which represent different types of controls. Which of the following is not one.
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153.Think of a job you have held, and consider whether the control environment was risky or conservative. Describe which you chose and why. 154.Identify the steps involved in risk assessment. Do you think it would be effective for an organization to hire external consultants to develop its risk assessment plan? 155.Discuss the.
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156. Why might it be important to have internal documents produced as an output of the accounting information system? 157. How does documenting a system through a pictorial representation offer benefits?   158. How does client-server computing divide the processing load between the client and server?  159. Why do you think the.
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21.The longer the encryption key is bits; the more difficult it will be to break the code. 22.The longest encryption keys are 128 bits. 23.Encryption is more important for dial-up networks than for wireless networks. 24.Using a unique service set identifier (SSID) makes it more difficult for an outsider to access the wireless.
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130.Describe three popular program manipulation techniques. 131.Distinguish between Internet spoofing and e-mail spoofing. 132.What are the objectives of a system of internal control? 133.Name and distinguish among the three types of internal controls. 134.Identify the COSO report’s five interrelated components of internal controls.   .
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135.Name the COSO report’s five internal controls activities. 136. Distinguish between general and specific authorization. 137.Due to cost/benefit considerations, many business organizations are unable to achieve complete segregation of duties. What else could they do to minimize risks? 138.Why is a policies and procedures manual considered an element of internal control? 139.Why does a.
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11.To increase the effectiveness of login restrictions, user Ids must be unique for each user. 12.To increase the effectiveness of login restrictions, passwords must be unique for each user. 13.Biometric devises use unique physical characteristics to identify users.  The most common method used is retina scans. 14.There are a number of methods described.
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– CHAPTER 2 – PROBLEMS: 170. Suppose that a large company is considering replacing a legacy system that is nearing obsolescence. Describe any aspects of this decision that the company should consider. 171.  Visit the campus bookstore at your university.  From what you see happening at the bookstore, try to draw.
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- CHAPTER 4 - MULTIPLE CHOICE 57.Unchecked risks and threats to the IT could result in: A.An interruption of the computer operations B.Damage to an organization C.Incorrect or incomplete accounting information D.All of the above 58.In order to master risks and controls and how they fit together, which of the following is NOT one of the.
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77.This form of encryption uses a public key, which is known by everyone, to encrypt data, and a private key, to decode the data. A.Multiple encryptions B.Public key encryption C.Wired encryption D.Symmetric encryption 78.This encryption method, used with wireless network equipment, is symmetric in that both the sending and receiving network nodes must use the.
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101. The ongoing review and evaluation of a system of internal control is referred to as: A.Risk assessment. B.Monitoring. C.Segregating. D.Communication. 102. This level of assurance means that controls achieve a sensible balance of reducing risk when compared with the cost of the control. A.Absolute assurance B.Probable assurance C.Reasonable assurance D.Convincing assurance 103. Factors that limit the effectiveness of internal.
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– CHAPTER 3 – TRUE / FALSE 1.When management does not act ethically, fraud is more likely to occur. 2.In the Phar-Mor fraud case, management did not write or adopt a code of ethics. 3.Maintaining high ethics can help prevent fraud but will not help to detect fraud. 4.Due to management’s responsibility to monitor.
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73.Source documents are usually preprinted and sequentially prenumbered.  Which of the following is not one of the reasons for this prenumbering and preprinting? A.To have an established format to capture data B.To assure that there is no duplicate source documents C.To be sure that all of the documents have been recorded D.To be sure.
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TEXTBOOK – CHAPTER 3 – SHORT ESSAY 148.What possible motivation might a business manager have for perpetrating fraud? 149.Discuss whether any of the following can be examples of customer fraud: •An employee billed a customer twice for the same transaction. •A customer remitted payment in the wrong amount. •A customer received merchandise in.
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107.The accuracy, completeness, and timeliness of the process in IT systems are referred to as: A.Availability Risks B.Security Risks C.Confidentiality Risks D.Processing Integrity Risks 108.The software that controls the basic input and output activities of the computer are called: A.Operating System B.Application Software C.Data Base Management System D.Electronic Data Interchange 109.Unauthorized access to the operating system would allow the unauthorized.
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31.To the extent possible, IT systems should be installed in locations away from any location likely to be affected by natural disasters. 32.It is not necessary to control the humidity and temperature in the location where the computer system is housed. 33.Disaster recovery planning is a proactive plan to protect IT systems.
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31.Independent checks can serve as a preventive control in that they uncover problems in the data or the processing. 32.Feedback needed by management to assess, manage, and control the efficiency and effectiveness of the operations of an organization relates to both financial and operational information. 33.A sophisticated accounting system will provide the.
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83.In a manual accounting system, the processing of accounting information includes: A.Recording in the ledger B.Posting to the journal C.Closing the necessary ledger accounts D.Adjusting the journal 84.When all similar transactions are grouped together for a specified time and then processed together as a group, the process is referred to as: A.Grouped processing B.Batch processing C.Bound processing D.Unit processing 85.An.
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61.Management misstatement of financial statements often occurs in order to receive indirect benefits such as: A.Decreased income taxes. B.Delayed cash flows. C.Increased stock prices. D.Increased dividends. 62.Management circumvention of systems or internal controls that are in place is termed: A.Management override. B.Management collusion. C.Management stewardship. D.Management manipulations. 63.The theft of assets by a non-management employee is termed: A.Inventory theft. B.Employee fraud. C.Expense account.
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– CHAPTER 3 – MULTIPLE CHOICE 41.The chance for fraud or ethical lapses will not be reduced if management: A.Emphasizes ethical behavior. B.Models ethical behavior. C.Hires ethical employees. D.Is unethical. 42.The Phar-Mor fraud began when management: A.Forgot to change the budgeted figures that had been incorrectly computed. B.Attempted to make the actual net income match the budgeted amounts. C.Overstated.
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41.Controlling access to the operating system is critical because that access opens access to any data or program within the system. 42.A database is often less open to unauthorized access than the physical, paper records, because the database has fewer access points. 43.The workstations and the network cabling and connections represent spots.
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TEXTBOOK – CHAPTER 3 – SHORT ANSWER QUESTIONS 125.Management is held accountable to various parties, both internal and external to the business organization. To whom does management have a stewardship obligation and to whom does it have reporting responsibilities? 126.If an employee made a mistake that resulted in a loss of.
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TEXTBOOK – CHAPTER 3 – END OF CHAPTER QUESTIONS 111.The careful and responsible oversight and use of the assets entrusted to management is called: A.Control environment. B.Stewardship. C.Preventive control. D.Security. 112.Which of the following is not a condition in the fraud triangle? A.Rationalization B.Incentive C.Conversion D.Opportunity 113.There are many possible indirect benefits to management when management fraud occurs. Which of the.
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151. In general, what types of transactions are well suited to batch processing?  152. Why might the time lag involved in batch processing make it unsuitable for some types of transaction processing?  153. How would real-time processing provide a benefit to managers overseeing business processes? 154. How do internal reports differ from.
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140.Many companies have mandatory vacation and periodic job rotation policies. Discuss how these practices can be useful in strengthening internal controls. 141.Name the objectives of an effective accounting system. 142.What does it mean when information flows “down, across, and up the organization”? 143. Provide examples of continuous monitoring and periodic monitoring. 144.What are the.
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93.Documentation of the accounting system allows: A.The accountant to analyze and understand the procedures and business process and the systems that capture and record the accounting data. B.The non-accountant to create a picture or chart of what should happen within the accounting system. C.The investor to see inside the accounting system so that.
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