Info
Warning
Danger

Study Resources (Accounting)

TRUE/FALSE 1.Information is a business resource. 2.An information system is an example of a natural system. 3.Transaction processing systems convert non-financial transactions into financial transactions. 4.Information lacking reliability may still have value. 5.A balance sheet prepared in conformity with GAAP is an example of discretionary reporting. 6.The Management Reporting System provides the internal financial information needed.
10 Views
View Answer
PROBLEM 1.North Shore Railroad operates between Chicago and upper Michigan and Wisconsin. Dallas Ingold, purchasing manager of North Shore Railroad, anticipates the price of diesel fuel will increase over the next few months. On September 4th, Ingold purchased an out-of-the-money November call option for $1,100. The option has a notional amount.
6 Views
View Answer
2.Purdue Company was organized by Caine, Abble, Dalton and Teler to purchase the assets of Sally Company. Purdue issued, for $50 per share, 2,000 shares of $5 par common stock to Teler. Purdue also issued bonds in the amount of $400,000 Following those transactions, Purdue Company acquired all 20,000 shares of.
10 Views
View Answer
PROBLEM 1.On January 1, 20X1, ParCo held a controlling interest in the common stock of SubCo. A condensed balance sheet for SubCo showed the following: Current Assets $  40,000 Liabilities $  50,000 Plant and Equipment   110,000 Shareholders’ Equity   100,000 $150,000 $150,000 SubCo's net assets had market values equal to book values except for patents, not recorded on the books, with.
17 Views
View Answer
MULTIPLE CHOICE 1.Which system is not part of the expenditure cycle? a.cash disbursements b.payroll c.production planning/control d.purchases/accounts payable 2.Which system produces information used for inventory valuation, budgeting, cost control, performance reporting, and make-buy decisions? a.sales order processing b.purchases/accounts payable c.cash disbursements d.cost accounting 3.Which of the following is a turn-around document? a.remittance advice b.sales order c.purchase order d.payroll check 4.The order of the entries made in.
6 Views
View Answer
11.Program flowcharts are used to describe the logic represented in system flowcharts. 12.Batch processing systems can store data on direct access storage devices. 13.Backups are automatically produced in a direct access file environment. 14.The box symbol represents a temporary file. 15.Auditors may prepare program flowcharts to verify the correctness of program logic. 16.A control account.
5 Views
View Answer
MULTIPLE CHOICE 1.Which of the following is not a business resource? a.raw material b.labor c.information d.all are business resources 2.Which level of management is responsible for short-term planning and coordination of activities necessary to accomplish organizational objectives? a.operations management b.middle management c.top management d.line management 3.Which level of management is responsible for controlling day-to-day operations? a.top management b.middle management c.operations management d.executive management 4.The ability to.
4 Views
View Answer
4.Time lag is one characteristic used to distinguish between batch and real-time systems. Explain. Give an example of when each is a realistic choice. 5.There are two subsystems to the revenue cycle. What are they and what occurs within each? 6.Resource use is one characteristic used to distinguish between batch and real-time.
7 Views
View Answer
10.The following post-closing trial balance has been prepared for Harper Corporation as of September 30, 20X4: Cash-overdraft 18,000 Notes receivable 6,000 Accrued interest receivable 900 Accounts receivable 66,000 Allowance for uncollectible accounts 9,000 Inventories 90,000 Land 54,000 Plant and equipment 321,000 Accumulated depreciation 201,000 Notes payable 105,000 Accrued interest payable 6,000 Accounts payable 126,000 Accrued salaries payable 24,900 Common stock ($10 par) 240,000 Premium on common stock 27,000 Retained earnings (deficit) 219,000 756,900 756,900 Notes receivable and accrued interest on these notes are expected to.
6 Views
View Answer
10.What is an entity? 11.Is a DFD an effective documentation technique for identifying who or what performs a particular task? Explain. 12.Is a flowchart an effective documentation technique for identifying who or what performs a particular task? Explain. 13.How may batch processing be used to improve operational efficiency? .
3 Views
View Answer
5.Name and explain the purpose of the three major subsystems of the AIS: 6.What are the three primary functions performed by the transaction processing system? 7.The most commonly stated benefits of DDP are cost savings, increased user satisfaction, and improved operational efficiency. Explain. 8.Data redundancy is described as a problem in flat-file systems.
4 Views
View Answer
20.The FASB requires general and specific financial statement disclosures by companies holding or issuing derivative instruments. Which of the following is a specific disclosures required cash flow hedge? a. The objective of using hedging instruments and the strategies for achieving the objective. b. The maximum length of time over which forecasted transactions are being.
4 Views
View Answer
12.Pearson Industries uses platinum in its manufacturing process. The company will need 1,500 troy ounces of platinum for a production run in June. The company is concerned that platinum prices will rise over the next several months. On May 14, in order to hedge against rising prices, Pearson Industries purchases.
4 Views
View Answer
31.An appraisal function housed within the organization that performs a wide range of services for management is a.internal auditing b.data control group c.external auditing d.database administration 32.Advantages of a database system include all of the following except a.elimination of data redundancy b.open access to all data by all users c.single update for changes in data d.confidence that all data.
5 Views
View Answer
11.Which of the following is an archive file? a.an accounts payable subsidiary ledger b.a cash receipts file c.a sales journal d.a file of accounts receivable that have been written off 12.Which document is not a type of source document? a.a sales order b.an employee time card c.a paycheck d.a sales return receipt 13.The most important purpose of a turn-around document.
6 Views
View Answer
9.Explain the elements of the REA model and give an example of each. 10.Distinguish between the accounting information system and the management information system. 11.Why have re-engineering efforts been made to integrate AIS and MIS? 12.Why is it important to organizationally separate the accounting function from other functions of the organization? 13.The REA model.
5 Views
View Answer
21.The type of transaction most suitable for real-time processing is a.recording fixed asset purchases b.recording interest earned on long-term bonds c.adjusting prepaid insurance d.recording a sale on account 22.Which step is not found in batch processing using sequential files? a.control totals b.sort runs c.edit runs d.immediate feedback of data entry errors 23.Both the revenue and the expenditure cycle can be.
3 Views
View Answer
SHORT ANSWER 1.Entities outside the organization with a direct or indirect interest in the firm, such as stockholders, financial institutions, and government agencies, are called ____________________. 2.The process of breaking a system into smaller subsystem parts is called ______________________________. 3.Transactions with trading partners include ____________________ and ____________________. 4.A system is a group of two.
6 Views
View Answer
14.Which flowchart depicts the relationship between processes and the documents that flow between them and trigger activities? 15.What are the three characteristics that are used to distinguish between batch and real-time systems. 16.Give one advantages of real-time data collection. 17.In one sentence, what does updating a master file record involve? 18.What is destructive update? .
7 Views
View Answer
TRUE/FALSE 1.Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems. 2.The process of acquiring raw materials is part of the conversion cycle. 3.Directing work-in-process through its various stages of manufacturing is part of the conversion cycle. 4.The top portion of the monthly bill from a credit card.
10 Views
View Answer
Scenario Module-1 On August 1st of the current year, Lenz Company writes a contract agreeing to sell to Hindman Company 15,000 British pounds at a specific price of $0.69 per pound with delivery in 60 days. Throughout the 60-day period the forward rate varies as follows: 60 days remaining on the contract $0.69 30.
6 Views
View Answer
ESSAY 1.Describe the key activities in the revenue, conversion, and expenditure cycles. 2.Categorize each of the following activities into the expenditure, conversion or revenue cycles and identify the applicable subsystem. a.Preparing the weekly payroll for manufacturing personnel. b.Releasing raw materials for use in the manufacturing cycle. c.Recording the receipt of payment for goods sold. d.Recording the.
8 Views
View Answer
9.Provide a specific example of a general ledger account and a corresponding subsidiary ledger. 10.Name five documentation techniques? 11.Why is the audit trail important? 12.List a method of data processing that uses the destructive update approach? 13.Only four symbols are used in data flow diagrams. What are they? .
4 Views
View Answer
14.If an organization processes large numbers of transactions that use common data records, what type of system would work best (all else being equal)? 15.Why might an auditor use a program flowchart? 16.How are computer system flowcharts and program flowcharts related? 17.What are the key distinguishing features of legacy systems? .
5 Views
View Answer
9.Paton Company has an $11,000,000, note payable outstanding with a variable rate equal to LIBOR of 8.4% which matures on June 30, 20X3. The variable rates are reset each 6 months for the following 6-month period. The company believes that interest rates have bottomed, and they will begin to rise..
6 Views
View Answer
SHORT ANSWER 1.List two of the three transaction cycles. 2.Documents that are created at the beginning of the transaction are called __________________________. 3.______________________________________ are the two data processing approaches used in modern systems. 4.Give a specific example of a turn-around document. 5.Explain when it is appropriate to use special journals. 6.What are the subsystems of the.
5 Views
View Answer
13.As of June 30, 20X4, the Lillie Corporation has the following assets, liabilities, and owners' equity: Assets Book Value Cash $  10,000 Marketable securities 30,000 Accounts receivable (net) 40,000 Inventories 100,000 Land 50,000 Buildings (net) 140,000 Machinery (net) 105,000 Goodwill     40,000      Total $515,000 Liabilities and Owners' Equity Book Value Accounts payable $100,000 Accrued income tax 10,000 Accrued mortgage interest 20,000 Accrued salaries expense 30,000.
9 Views
View Answer
ESSAY 1.Describe the options that are available to a corporation that is unable to service its debts on a timely basis but that does NOT require court action. 2.Describe the duties of the trustee in a Chapter 7 liquidation. 3.Differentiate by function the Accounting Statement of Affairs and the Statement of Realization and.
11 Views
View Answer
14.Mallory Corporation is being liquidated under Chapter 7 of the Bankruptcy Act. On May 1, 20X5, you are appointed the court's trustee for the liquidation. The  book values for assets and liabilities, on May 1, 20X5, were as follows: Cash $    4,000 Accounts receivable (net) 80,000 Inventories 200,000 Land and building (net) 340,000 Machinery (net) 100,000 Accounts payable 180,000 Salaries payable 60,000 Income tax payable 14,000 Trustee's.
10 Views
View Answer
11.The Transaction Processing System includes all of the following cycles except a.the revenue cycle b.the administrative cycle c.the expenditure cycle d.the conversion cycle 12.The primary input to the Transaction Processing System is a.a financial transaction b.an accounting record c.an accounting report d.a nonfinancial transaction 13.When designing the data collection activity, which type of data should be avoided? a.data that is relevant b.data.
5 Views
View Answer
9.Using the information from Dremer Corporation and the following information, prepare a Statement of Realization and Liquidation for Dremer Inc. for the period of 6/1/X5 to 6/30/X5. No subsequent discoveries Sale of Calandir Securities at a market value of $16,000 Collection of Note Receivable into cash $15,000 Sale of Equipment at $7,000 Sale of Inventory.
5 Views
View Answer
11.Wayne Corporation, a manufacturer of farm machinery, had poor financial results last year because of a drought. Back orders indicate complete recovery this year. To eliminate a deficit that increased when the books were closed at the end of last year, the corporation has received stockholders' and state approval to.
9 Views
View Answer
ESSAY 1.Contrast the responsibilities of operations management, middle management, and top management. Explain the different information needs for each level of management. 2.Explain the difference between data and information. 3.Why do accountants need to understand the organizational structure of the business? 4.Several disadvantages of distributed data processing have been discussed. Discuss at least three. .
5 Views
View Answer
12.Kentucky Blue, Inc., a lawn care service corporation, is in serious financial difficulty with a deficit of $2,100,000. The company's plant and equipment were designed for highly specialized products and activities. Therefore, they would yield only a small fraction of their book value upon sale. Creditors realize that they will.
7 Views
View Answer
PROBLEM 1.Company P purchased a 30% interest in Company S for $120,000 on January 1, 20X7, when Company S had the following stockholders' equity: Common stock ($10 par) $100,000 Paid-in capital in excess of par 200,000 Retained earnings (deficit)    (20,000) Total $280,000 Any excess cost was due to equipment that is being depreciated over 5 years.
4 Views
View Answer
11.The database administrator is responsible for the security and integrity of the database. 12.A backbone system is completely finished, tested, and ready for implementation. 13.The internal auditor represents the interests of third-party outsiders. 14.Information Technology (IT) audits can be performed by both internal and external auditors. 15.The single largest user of computer services is.
6 Views
View Answer
MULTIPLE CHOICE 1.A critical characteristic of a derivative is that the instrument a. derives its value from a related asset or liability. b. derives its value from changes in value of a related asset or liability. c. requires that the related asset or liability be sold or bought at settlement. d. requires the holder of the derivative instrument to.
16 Views
View Answer
MULTIPLE CHOICE 1.For each of the following accounting methods, indicate how the investor's investment account will be affected by the investor's share of the investee’s earnings after the date of acquisition    Cost Method     Equity Method a. No effect       No effect b. Increase        Increase c. Increase        No effect d. No effect       Increase 2.On January 1, 20X1, Company P purchased a 30%.
16 Views
View Answer
16.Sarbanes-Oxley legislation requires that management designs and implements controls over the entire financial reporting process. What systems does this include? 17.Why is it necessary to distinguish between AIS and MIS? 18.How has SOX legislation impacted the consulting practices of public accounting firms? 19.What is discretionary reporting? 20.Name the five characteristics of information? .
5 Views
View Answer
21.Which function manages the financial resources of the firm through portfolio management, banking, credit evaluation, and cash receipts and disbursements? a.accounting b.finance c.materials management d.distribution 22.Which of the following is not part of the accounting function? a.managing the financial information resource of the firm b.capturing and recording transactions in the database c.distributing transaction information to operations personnel d.managing the.
6 Views
View Answer
31.Which symbol represents a decision? a. b. c. d. 32.The characteristics that distinguish between batch and real-time systems include all of the following except a.time frame b.resources used c.file format d.efficiency of processing 33.A file that stores data used as a standard when processing transactions is a.a reference file b.a master file c.a transaction file d.an archive file 34.Sequential storage means a.data.
5 Views
View Answer
13.On October 9, 20X1, Bertatie Company acquired 8,000 shares of Bulloch Company common stock at $39.20 per share. Bertatie Company classifies the investment as available-for-sale. Bertatie Company is considering a long-term relationship with Bulloch Company and may acquire a more substantial interest. In the mean time, to hedge against a.
5 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

Let us boost your grade together!