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Study Resources (Accounting)

11.The recording of interest earned on an account balance or wages payable is an example of which type of adjusting journal entry? a)accrual entry b)deferral entry c)revaluation entry d)correcting entry 12.The posting of adjusting journal entries is the second activity found in the general ledger system.  Adjusting entries fall into.
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Chapter 14 MULTIPLE CHOICE 1.The general ledger and reporting system consists of the __________ involved in __________ the general ledger and __________ reports. a)business transactions; updating; processing b)data processing; business transactions for; printing c)information processing; updating; creating d)business transactions; data processing; preparing 2.Which item below is not considered a major input to.
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41.How many types of relationships are possible between entities? a)one b)two c)three d)an infinite number 42.A one-to-many relationship exists between entities when the maximum cardinality of one entity is __________ and the maximum cardinality for the other entity in that relationship is __________. a)1; 1 b)1; N  c)M; N d)M;.
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31.A disbursement voucher contains a)a list of outstanding invoices. b)the net payment amount after deducting applicable discounts and allowances. c)the general ledger accounts to be debited. d)All of the above are correct. 32.A legal obligation arises at the time goods are received from a supplier.  The objective of accounts payable.
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11.The first step in the payroll process is to a)calculate gross pay. b)update the payroll master file. c)input time card data. d)print paychecks. 12.The payroll master file is updated with a)new hire and termination data. b)changes in pay rates and discretionary withholdings. c)changes in time card data. d)A and B.
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51.Which control would be most appropriate to address the problem of inaccurate payroll processing? a)encryption b)direct deposit c)cross-footing of the payroll register d)an imprest payroll checking account 52.What is the purpose of a general ledger payroll clearing account? a)to check the accuracy and completeness of payroll recording and its allocation.
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21.The final activity in the general ledger and reporting system is the production of various managerial reports.  The report that shows planned cash inflows and outflows for each project is the a)journal voucher list. b)statement of cash flows. c)operating budget. d)capital expenditures budget. 22.Various budgets can be produced for planning.
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51.Adjusting entries to the general ledger are typically provided by the a)budget department. b)controller. c)treasurer. d)chief executive officer. 52.Information about financing and investing activities for use in making general ledger entries is typically provided by the a)budget department. b)controller. c)treasurer. d)chief executive officer. 53.Which one of the following four general ledger activities is not concerned with the preparation of traditional.
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CH 12 MULTIPLE CHOICE 1.The AIS compiles and feeds information among the business cycles.  What is the relationship between the revenue and production cycles regarding the exchange of information? a)The revenue cycle provides sales forecast and customer order information to the production cycle, but the production cycle sends information back to revenue.
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51.Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of many? a)      b)     c)      d)     52.Which of the following graphical symbols represents a minimum cardinality of one and a maximum cardinality of one? a)      b)     c)      d)     53.Which of the following graphical symbols represents a.
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61.Cheryl Liao is an accountant at Folding Squid Technologies. While making an adjusting entry to the general ledger, she received the following error message when she tried to save her entry, “The amounts debited and credited are not equal. Please correct and try again.” This message was the result of.
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61.Which one of the following is most likely to be positively correlated with employee morale? a)Turnover rate b)Profitability c)Defect rate d)Overhead 62.The average annual middle-management salary at Folding Squid Technologies is $60,000. If the average turnover rate for middle management is ten employees per year, what is the approximate average annual cost of turnover? a)$300,000 b)$600,000 c)$900,000 d)$1,200,000 63.Which.
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51.There are various costs associated with quality control, or its absence in a production operation.  Such information can help a company determine the effects of actions taken to improve production and identify areas of improvement.  The cost of a product liability claim can be classified as a(n) a)prevention cost. b)inspection.
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41.When purchasing miscellaneous supplies, companies can reduce costs, improve efficiency, and combat employee fraud by using a)procurement cards. b)a JIT inventory system. c)credit cards. d)debit cards. 42.If available, a 1% discount for payment within 10 days instead of 30 days represents an approximate savings of __________ % annually. a)1 b)12 c)18.
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SHORT ANSWER 72.What is the production cycle.  73.What are the basic activities in a production cycle? 74.Identify and discuss the two documents that are the result of product design activities. 75.What is a master production schedule (MPS)? 76.Define the following: production order, materials requisition, and move ticket. 77.What is CIM? .
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Chapter 15 MULTIPLE CHOICE 1.There are five basic stages in the database design process.  The step which includes developing the conceptual-, external-, and internal-level schema into the actual database structures is known as a)stage one. b)stage two. c)stage three.  d)stage four. 2.Accountants should be involved in __________ aspect(s) of the database design.
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11.An example of an event is a)employees b)customers c)sales d)cash 12.An example of a resource is a)employees b)customers c)sales d)cash 13.An example of an agent is a)customer b)sales c)cash d)inventory 14.What does the acronym REA mean? a)resources, events, agents b)resources, entities, agents c)relations, events, agents d)relations, entities, agents 15.In the REA data modeling technique, the identifiable objects that have economic value to the.
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21.The use of various forms of information technology in the production process is referred to as a)computerized investments and machines. b)computerized integration of machines. c)computer-integrated manufacturing. d)computer intense manufacturing. 22.The accountant's role in the __________ step of production cycle activities is to understand how CIM affects the AIS. a)production operations.
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21.The receiving department has two major responsibilities in connection with the expenditure cycle. Identify one of these responsibilities. a)shipping products most efficiently and at the lowest cost b)deciding if the delivery should be accepted  c)verifying any purchase discounts for the delivery d)deciding on the location where the delivery will be.
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SHORT ANSWER 79.Define an HRM/payroll cycle.  What are the basic activities in an HRM/payroll cycle? 80.List the various ways used to compensate employees. 81.What are different types of deductions in payroll? 82.Why are accurate cumulative earnings records important? 83.Explain the functions of the payroll register, deduction register, and earnings statement. 84.What.
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11.The inventory management approach that attempts to minimize, if not eliminate, carrying and stockout costs is a)the materials requirements planning. b)the economic order quantity. c)a just-in-time inventory system. d)There is no such inventory management approach. 12.What aspect below best characterizes a JIT inventory system? a)frequent deliveries of smaller quantities of.
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SHORT ANSWER 76.a) Define expenditure cycle.  b) What are the basic expenditure cycle activities? 77.What is the EOQ approach?  What are the components of EOQ? 78.Define the materials requirement planning (MRP) 79.Define just-in-time (JIT) inventory methods.  80.Briefly discuss the differences among EOQ, MRP, and JIT. .
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79.What are the control objectives in the general ledger and reporting system? 80.Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat. 81.Explain the preparation of financial statements as the third step in the general ledger and reporting system. .
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ESSAY 89.What is the role of "soft assets" in the new information economy?  Why has an AIS not reported on the company's human resources? 90.What factors should be considered in outsourcing payroll to a payroll service bureau?  Discuss the advantages and disadvantages of using a payroll service bureau to process a.
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31.Developing an REA diagram for a specific transaction cycle consists of how many steps? a)one b)two c)three d)four 32.Developing an REA diagram for a specific transaction cycle consists of steps.  The first step involves a)Identifying events b)Identifying agents c)Identifying resources d)Identifying cardinality 33.Developing an REA diagram for a specific transaction cycle consists of steps. .
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51.Which control would be best to prevent payments made to fictitious vendors? a)allow payments only to approved vendors b)restrict access to any payment or approval documents c)have an independent bank reconciliation d)make sure all documents are in order before approving payments 52.In the expenditure cycle, good control dictates that expenditures.
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31.Direct labor must be tracked and accounted for as part of the production process.  Traditionally, direct labor was tracked using __________ but an AIS enhancement is to use __________ to record and track direct labor costs. a)job-time tickets; coded identification cards b)move tickets; coded identification cards c)employee earnings records; job-time.
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Chapter 13 MULTIPLE CHOICE 1.Which activity below is not performed by the HRM? a)compensation b)training c)discharge d)recruitment and hiring 2.In most companies the HRM/payroll cycle activities are accomplished by two separate systems.  Which task below is typically not performed by an HRM system? a)training b)performance evaluation c)compensation d)recruiting and hiring of new.
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31.The benefits of XBRL include: a)XBRL enables organizations to publish financial information only once, using standard XBRL tags. b)XBRL tagged information is interpretable and doesn't need to be re-entered by users. c)Both are benefits of XBRL d)Neither are benefits of XBRL 32.Communications technology and the Internet can be used to reduce the time and costs.
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31.Why is a separate payroll account used to clear payroll checks? a)for internal control purposes to help limit any exposure to loss by the company b)to make bank reconciliation easier c)banks don't like to commingle payroll and expense checks d)All of the above are correct. 32.One good way to eliminate.
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41.Which one of the following measures four dimensions of performance? a)human resources accounting b)social responsibility accounting c)a balanced scorecard d)integrated databases 42.A report containing measures that relate to the financial, internal operation, customer, and innovation and learning perspectives of an organization is called a(n) a)ERP. b)AIS. c)balanced scorecard. d)data warehouse..
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41.Activity-based costing (ABC) can refine and improve cost allocations using either job-order or process cost systems.  There are three significant differences between ABC and traditional cost accounting approaches. One difference between the two systems is how clearly the results of management activities are measured on overall profitability.  This benefit is.
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21.A manufacturing company is likely to use __________ to collect employee time data for payroll and job time. a)badge readers b)supervisor's entries c)preprinted time cards d)retina scanning 22.These are used to transmit time and attendance data directly to the payroll processing system. a)Badge readers b)Electronic time clocks c)Magnetic cards d)None of the above 23.Payroll deductions.
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SHORT ANSWER 70.What is a general ledger and reporting system? 71.What are the four basic activities involved in the general ledger and reporting system? 72.What is a journal voucher file?  What is the purpose of this file? 73.What is responsibility accounting? 74.How is a balanced scorecard used to assess organizational performance?.
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81.a) What is the major cost driver in the purchasing function?  b) How can information technology be used to control this cost driver? 82.How is the expenditure cycle a "mirror image" of the revenue cycle? 83.What are the possible problems associated with receiving goods ordered from a vendor? 84.Name and.
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11.MRP-II and JIT manufacturing systems both plan production in advance. What is the main difference between these two systems? a)the length of the planning horizon b)JIT uses long-term customer demand for planning purposes c)MRP-II relies on EDI d)There are no differences between the two systems. 12.A master production schedule is.
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61.At the end of each production run, preventive maintenance is done on the assembly line. The expenses associated with this maintenance are _______ overhead. a)batch-related b)product-related c)companywide d)expenditure-based 62.Which of the following is not a benefit of activity-based costing? a)Lower cost b)Better decisions c)Improved cost management d)Identification of cost drivers 63.The expenses associated with a product recall are ______ costs. a)prevention b)inspection c)internal.
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21.The REA data model supports both __________ and __________ types of data. a)financial; nonfinancial b)logical; physical c)planning; control d)traditional; nontraditional 22.Nonfinancial information should be collected because a)it may indicate events that may affect resources. b)it can be used to plan other activities. c)it can be used in transaction processing. d)both.
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71.Which of the following occurs nearest the start of the payroll cycle? a)Update payroll master file b)Disburse payroll taxes and miscellaneous deductions c)Disburse payroll d)Prepare payroll 72.Which of the following occurs nearest the start of the payroll cycle? a)Update payroll master file b)Disburse payroll taxes and miscellaneous deductions c)Disburse payroll d)Prepare payroll 73.Payroll processing efficiency can be increased by eliminating.
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83.What are the two major types of cost accounting systems and what are the differences between the two? 84.Describe five threats to the production cycle and the applicable control procedures used to mitigate each threat. 85.Discuss two measures that can address the threats of inefficiencies and quality controls problems. .
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61.The management at Sad Clown Pajamas, an Internet-based wholesaler, is considering a new inventory control system. The current system is inadequate because it results in stockouts that interrupt production and excess stocks of some materials that result in markdowns and high carrying costs. The new system, which will focus on.
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