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Study Resources (Accounting)

33 Explain how validity checks, completeness tests and reasonableness tests can be implemented to ensure accuracy of customer orders. 34 Failure to collect cash on credit sales is a threat in the revenue cycle. What controls can be used to help neutralize this threat? 35 Describe four threats in the revenue.
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31) Explain the functions of the payroll register, deduction register, and earnings statement. 32) What is the difference between a payroll service bureau and a professional employer organization? 33) Discuss the various types and sources of input into the HRM/payroll cycle. 34) A growing number of companies require some of their.
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12.1   Describe the basic business activities and related information processing operations performed in the revenue cycle. 1 Basic segregation of duties requires the credit manager reports to the ________ and the treasurer report to the ________. A treasurer; controller B treasurer; vice president of finance C controller; vice president of finance.
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31) There is a symmetrical interdependence between a firm's expenditure cycle and its suppliers' A) production cycle. B) revenue cycle. C) expenditure cycle. D) general ledger and reporting system. 32) The Gwallter Reece Chihuahua Sweater Co. (GRCCo) was established in 2013. It recently signed a large contract with PetCo pet stores. GRCCo will be required.
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12) Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of one? A) B) C) D) 13) Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of many? A) B) C) D) 14) Which of the following graphical.
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16 A method for tracking accounts receivable that matches specific invoices and payments from the customer is called a(n ________ method. A specific identification B balance forward C cycle billing D open-invoice 17 The document a customer returns with their payment and that identifies the source and the amount of the.
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17.1   Discuss the steps for designing and implementing a database system. 1) Which of the following statements about REA modeling and REA diagrams is false? A) REA is an acronym for Resources, Entities, and Agents. B) REA data modeling does not include traditional accounting elements such as ledgers, chart of accounts, debits and.
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14.3   Explain how a company's cost accounting system can help it achieve its manufacturing goals. 1) Which objective listed below is not a cost accounting objective for the production cycle? A) Provide information for planning, controlling, and evaluating the performance of production operations. B) Provide cost data about products used in.
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31) Identify and discuss the two common methods of production planning. 32) How can CAD software help improve the efficiency and effectiveness of the product design process? A) It can eliminate the costs associated with creating and destroying physical prototypes. B) It can simulate how new products will be manufactured. C) It can.
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16) 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) company wide D) department-based 17) 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.
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16) The management at Barks-a-Million is considering a new inventory control system. The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials — resulting in markdowns and high carrying costs. The new system will focus on ensuring that these.
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18.1   Integrate separate REA diagrams for individual business cycles into a single, comprehensive organization-wide REA diagram. 1) Integrating separate REA diagrams developed for individual transaction cycles into a single, comprehensive enterprise-wide data model A) is possible. B) requires understanding what the cardinalities in each separate diagram reveal about the organization's business policies.
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16.3   Understand the implications of new IT developments, such as XBRL, and changes in the external reporting requirements, such as IFRS, for the design and operation of the general ledger and reporting system. 1) Which of the following statements is not true regarding XBRL? A) XBRL is a variant of XML. B) XBRL.
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16) Immediately after the adjusting entries are posted, the next step in the general ledger and reporting system is to prepare A) an adjusted trial balance. B) closing entries. C) financial statements. D) an unadjusted trial balance. 17) Financial statements are prepared in a certain sequence. Which statement is prepared.
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8 During the sales order entry process, a ________ is performed to verify that each transaction record contains all appropriate data items. A completeness test B redundant data check C field check D reasonableness test 9 The best solution for maintaining accurate automated perpetual inventory system is to use A closed-loop.
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16 The evidence collection method that examines all supporting documents to determine the validity of a transaction is called A review of documentation. B vouching. C physical examination. D analytical review. 17 The evidence collection method that considers the relationships and trends among information to detect items that should be.
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13.1   Explain the basic business activities and related information processing operations performed in the expenditure cycle. 1) The Gwallter Reece Chihuahua Sweater Co. (GRCCo) was established in 2013. It recently signed a large contract with PetCo pet stores. GRCCo will be required to track and forecast sweater sales by linking in.
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11) The expenses associated with disposal of defective products are ________ costs. A) prevention B) inspection C) internal failure D) external failure 12) In addition to identifying and dealing with defective products before they reach customers, quality management is concerned with initiating process changes that will reduce the number of defective units produced. All other.
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16) Companies that specialize in processing payroll are known as A) paycheck distribution companies. B) payroll service bureaus. C) professional employer organizations. D) semi-governmental organizations. 17) Which organization provides payroll processing as well as other HRM services, like employee benefit design and administration? A) title companies B) payroll service bureau C) professional employer organization D) paycheck distribution companies 18) Which.
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16) Identify the notation below that is not used to represent cardinality information. A) UML B) (Min, Max) C) DFD D) Maximums only 17) Every citizen in the United States has one social security number, but no two citizens have the same social security number. Thus, the cardinality that exists between social security numbers and.
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16.4   Discuss how tools like responsibility accounting, balanced scorecards, and graphs can be used to provide information managers need to effectively monitor performance. 1) The ________ is the managerial report that shows planned cash inflows and outflows for major investments or acquisitions. A) journal voucher list B) statement of cash flows C) operating.
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16 The accounting department at Aglaya Telecom records an average of 5,000 transactions per hour. A cost-benefit analysis leads management to conclude that the maximum acceptable amount of data loss is 20,000 transactions. If the firm's recovery time objective is 60 minutes, then the worst case recovery time objective is A.
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10.2   Identify and explain controls designed to ensure systems availability. 1 What is the most effective way to ensure information system availability? A high bandwidth B maintain a hot site C maintain a cold site D frequent backups 2 Which of the following statements is true with regards to system availability? A Human error does not threaten.
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11.4   Describe computer audit software, and explain how it is used in the audit of an AIS. 1 An audit software program that generates programs that perform certain audit functions, based on auditor specifications, is referred to as a(n A input controls matrix. B CAATS. C embedded audit module. D mapping.
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15.1   Describe the major business activities and related information processing operations performed in the human resources management (HRM)/payroll cycle. 1) Which activity below is not performed by Human Resources management (HRM)? A) compensation B) training C) discharge D) recruitment and hiring 2) Which department should have the sole ability to provide information.
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16) Which of the following will limit a firm's potential loss exposure from paycheck forgery? A) segregation of check distribution from payroll duties B) prompt redeposit of unclaimed paychecks C) a separate payroll bank account D) direct deposit of checks 17) Which of the following is a control that addresses the threat of unauthorized changes.
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46) Identify the department below that should not be able to submit a purchase requisition. A) Marketing B) Production C) Inventory Control D) None of the above 47) Once a purchase request is approved, what is the next step? A) The system creates a purchase order. B) The accounts payable department approves the purchase request, creating a.
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11.3   Describe the different tools and techniques auditors use to test software programs and program logic. 1 Identify the activity below that the external auditor should not be involved. A examining system access logs B developing the information system C examining logical access policies and procedures D making recommendations to management for improvement.
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31 Which of the following is not one of the types of internal audits? A reviewing corporate organizational structure and reporting hierarchies B examining procedures for reporting and disposing of hazardous waste C reviewing source documents and general ledger accounts to determine integrity of recorded transactions D comparing estimates and analysis made before purchase.
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11) The threat of violation of employment laws relates directly to which activity? A) payroll processing B) collecting employee time data C) hiring and recruiting D) all of the above 12) What is a potential threat to the specific activity of payroll processing? A) hiring unqualified employees B) poor system performance C) violations.
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16) Using technology such as robots and computer-controlled machinery to shift from mass production to custom order manufacturing is referred to as A) computer integrated manufacturing (CIM). B) lean manufacturing. C) Six Sigma. D) computer-aided design (CAD). 17) Direct labor must be tracked and accounted for as part of the production process. Traditionally, direct labor.
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11.1   Describe the nature, scope and objective of audit work, and identify the major steps in the audit process. 1 Auditing involves the A collection, review, and documentation of audit evidence. B planning and verification of economic events. C collection of audit evidence and approval of economic events. D testing, documentation,.
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11.2   Identify the six objectives of an information system audit, and describe how the risk-based audit approach can be used to accomplish these objectives. 1 What is the purpose of an information systems audit? A to determine the inherent risk factors found in the system B to review and evaluate the.
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16.1   Describe the information processing operations required to update the general ledger and to produce reports for internal and external users. 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.
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15.2   Discuss the key decisions to be made in the HRM/payroll cycle and identify the information needed to make those decisions. 1) The sales department administrative assistant has been assigning phone order sales to her brother-in-law, a company sales person. Company policy is to pay commissions only on orders directly received.
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31) Why would a firm perform ABC cost analysis? A) to identify the best inventory supplier B) to reconcile accounts payable C) to prioritize physical inventory counts D) to verify production quality 32) True or False:  It is important to physically count inventory, at least periodically, even in a perpetual inventory system. 33) What is the.
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9) Marina Filimena is an accountant at Jasmina Hair Products. Marina received the following error message while making an adjusting entry to the general ledger: "The amounts debited and credited are not equal. Please correct and try again." This is an example of a A) validity check. B) field check. C) zero-balance.
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14.1   Describe the major business activities and related information processing operations performed in the production cycle. 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.
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27) Describe the possible relationships between entities, in terms of cardinalities. 28) A dental office employs three dentists and five dental hygienists. One of the dentists is a very recent dental school graduate and can't yet see patients on her own until she passes boards and obtains a license. Dentists.
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