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Study Resources (Accounting)

112. Describe how sales data is captured and recorded at a restaurant such as Applebee’s.  113. What occurs in an accounting information system that classifies accounting transactions?  114. What are the differences between internal reports and external reports generated by the accounting information system?  115. What types of businesses are in.
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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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– CHAPTER 12 –PROBLEMS 142. If an accounting information system was entirely a manual system (no computers used), explain how data would be captured, recorded, classified, summarized, and reported. Discuss how the sophistication of the company’s computer system impacts the accounting output and, alternatively, how the requirements for accounting outputs impact 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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– CHAPTER 12 –SHORT ESSAY 132. For each category of business processes (revenue, expenditure, conversion, administrative), give an example of a business process. 133. Think of a company that you have worked for or with which you have done business. Which departments within the company need reports generated by the accounting.
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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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145. Each of the points listed next represents an internal control that may be implemented within a company’s accounting information system to reduce various risks.  For each point, identify the appropriate business process (revenue, expenditure, conversion, administrative). In addition, refer to the description of business processes under Study Objective 1.
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– CHAPTER 12 –SHORT ANSWER QUESTIONS 107. How might the sales and cash collection processes at a Wal-Mart store differ from the sales and cash collection processes at McDonald’s?  108. Can you think of any procedures in place at McDonald’s that are intended to ensure the accuracy of your order?  109. How might.
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137. Describe the differences in the three types of processing. 138. The networks discussed in this chapter were LANs, Internet, intranet, and extranet.  Explain each. 139. Give a brief summary of enterprise risk management, corporate governance, and IT governance. 140. Describe why accountants should be concerned about ethics. 141. Adrienne Camm is.
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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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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 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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63.An integrated collection of enterprise-wide data that includes five to ten fiscal years of non-volatile data, used to support management in decision making and planning is referred to as: A.Operational Database. B.Relational Database. C.Data Storage. D.Data Warehouse. 64.This type of database contains the data that are continually updated as transactions are processed and includes data.
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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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– 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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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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53.A collection of data stored on a computer in a form that allows the data to be easily accessed, retrieved, manipulated, and stored is referred to as a(n): A.Accounting Information System. B.Information Technology. C.Database. D.Master File. 54.A collection of data stored in several small two-dimensional tables that can be joined together in many varying ways.
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– CHAPTER 2 – MULTIPLE CHOICE: 33.IT systems have dramatically affected many aspects of business.  Which of the following is not one of the changes? A.Data input into accounting information systems. B.The way that data is processed in the system. C.The accounting information that is reported by the system. D.The outputs of the system. 34.Which of.
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– CHAPTER 12 – END OF CHAPTER QUESTIONS 97.When a customer returns goods that were purchased, the business process to accept the return would most likely be a(n): A.Administrative process. B.Conversion process. C.Expenditure process. D.Revenue process. 98.Which of the following is least likely to be an output of the accounting information system? A.A check B.A report C.An invoice D.A bar.
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73.The intercompany, computer-to-computer transfer of business documents in a standard business format is called: A.E-business. B.E-commerce. C.Local area network. D.Electronic data interchange. 74.Which of the following is NOT one of the three components of electronic data interchange? A.Commerce - encompasses all forms of electronic trading. B.Intercompany - two or more companies conducting business electronically. C.Standard business format -.
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21.    The exclusive output of an AIS is that it produces trading partner documents such as checks, invoices, and statements. 22.    The output of an AIS is for external users only, such as trading partner documents and external reports including financial statements. 23.    Internal reports produced by an AIS are designed specifically for.
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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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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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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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– 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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– CHAPTER 1 – MULTIPLE CHOICE 33.A prescribed sequence of work steps preformed in order to produce a desired result for the organization is called a(n): A.Accounting Information System. B.Business Process. C.Financial Transaction. D.Capital Transaction Process. 34.The process that must identify the transactions to be recorded, capture all the important details of the transactions, properly process.
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21.When automated matching is used, the system will not approve an invoice for payment unless the items and quantities match with the packing slip and the prices match the purchase order prices. 22.The evaluated receipt settlement system is an IT enabled system that reduces the time and cost of processing customer.
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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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– CHAPTER 2 – TRUE/FALSE: 1.Technology has done little to help the hospitality industry improve the quality of services to customers. 2. Using IT will change the business processes and the way accounting data is collected. 3.When a business process occurs, there must be a way of capturing the data generated to input.
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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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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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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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11.Online processing is the opposite of real-time processing. 12.Batch processing is best suited to sequential access files. 13.Online processing is best suited to sequential access files. 14.Online processing is best suited to situations were there is a large volume of records but only a few records are needed to process any individual transaction. 15.Each.
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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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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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– 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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11.   The software market segment for small companies is usually for companies who have less than $10,000,000 in revenue. 12.    Oracle is considered as a software program for the beginning ERP market. 13.    ERP systems usually don’t allow the user the flexibility to set it up to customize it for their specific business needs. 14.   .
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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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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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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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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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– 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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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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43.The entities, processes, and information flows that involve the movement of materials, funds, and related information through the full logistics process, from the acquisition of raw materials to the delivery of the finished produces to the end use is a set of linked activities referred to as: A.Management Information System. B.Supply Chain. C.Accounting.
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