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78 Cards in this Set
- Front
- Back
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In a company's revenue cycle, a sales call is a example of?
a. instigation event b. mutual commitment event c. economic increment event d. economic decrement event |
a. instigation event
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In a company's revenue cycle, shipping is an example of?
a. instigation event b. mutual commitment event c. economic increment event d. economic decrement event |
d. economic decrement event
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In a company's revenue cycle, accepting a sales order is an example of?
a. instigation event b. mutual commitment event c. economic increment event d. economic decrement event |
b. mutual commitment event
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In a company's revenue cycle, the relationship between the entity "cash" and entity "cash receipt" is
a. reservation b. proposition c. stock outflow d. stock inflow e. fulfillment f. duality g. participation |
d. stock inflow
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In a company's revenue cycle, the relationship between the entity "sales order" and entity "shipping" is
a. reservation b. proposition c. stock outflow d. stock inflow e. fulfillment f. duality g. participation |
e. fufillment
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In a company's revenue cycle, the relationship between the entity "customer" and entity "shipping" is
a. reservation b. proposition c. stock outflow d. stock inflow e. fulfillment f. duality g. participation |
g. participation
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In a company's revenue cycle, the relationship between "shipping" and "cash receipt" is
a. reservation b. proposition c. stock outflow d. stock inflow e. fulfillment f. duality g. participation |
f. duality
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In a company's revenue cycle, the relationship between "sales call" and "inventory" is
a. reservation b. proposition c. stock outflow d. stock inflow e. fulfillment f. duality g. participation |
b. proposition
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Which subsystem is not part of the accounting information system?
a. transaction processing system b. expert system c. General Ledger/Financial Reporting System d. Management Reporting System |
b. expert system
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Which of the following is not a major type of information system?
a. database system b. manual system c. control system d. flat file system |
c. control system
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The objectives of an information system include each of the following, except:
a. supportive for the stewardship responsibilities of management b. furthering the financial interests of shareholders c. support for management decision making d. support for the firm's day-to-day operations |
b. futhering the financial interests of shareholders
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Which of the follwing is not a typical role of accountants in relation to an accounting information systems?
a. a user of the system b. an administrator of the system c. developer of the system d. an auditor of the system |
b. an administrator of the system
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Which system is not part of the expenditure cycle?
a. cash disbursements b. payroll c. production planning/control d. purchases/ accounts payable |
c. production planning/control
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In general, a special journal would not be used to record:
a. Sales b. cash disbursements c. depreciation d. purchases |
c. depreciation
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Which account is least likely to have a subsidiary ledger?
a. sales b. accounts receivable c. accounts payable d. inventory |
a. sales
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In a computer-based system, the flat file that contains accounts receivable data for the current period is an example of?
a. master file b. transaction file c. reference file d. archive file |
a. master file
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Which of the following statement about subsidiary ledger is incorrect?
a. subsidiary ledger serves for a control purpose because it contains the details for a control account b. Subsidiary ledger often helps top level management to make strategic decisions c. subsidiary ledger often supports lower level ee's day-to-day operations d. the numbers in subsidiary ledger should be consistent with the numbers in corresponding general ledger account |
b. Subsidiary ledger often helps top level management to make strategic decisions
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Which of the following is NOT a characteristic of useful information?
a. relevance b. accuracy c. precision d. summarization |
c. precision
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Which of the following is NOT a formal procedure of an information system?
a. economic events generate data b. date are collected c. data are processed into information d. information is distributed to users |
a. economic events generate data
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Cycle & Subsystem?
Preparing the weekly payroll for personnel |
Cycle:Expenditure cycle
Subsystem: Payroll |
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Cycle & Subsystem?
Releasing the RM for use in the manufacturing process |
Cycle: Conversion cycle
Subsystem: Production |
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Cycle & Subsystem?
Recording the receipt of payment for goods sold |
Cycle: Revenue cycle
Subsytem: Cash receipt |
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Cycle & Subsystem?
Recording the order placed by a customer |
Cycle: Revenue cycle
Subsystem: Sales order |
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Cycle & Subsystem?
Purchase the of buildings for sale by a real estate company |
Cycle: Expenditure
Subsystem: Purchases |
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Which sections of the SOX Act require that a company's management provide formal reports on the assessment of the company's internal control?
a. Section 302 b. Section 404 c. neither d. both of them |
d. both of them
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Which sections of the SOX Act require that the auditor of company attest to and report on the effectiveness of internal control?
a. Section 302 b. Section 404 c. neither d. both of them |
b. Section 404
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Prior to SOX, auditor can compare accounting records and neglect the system and procedures that generate these records. This audit approach is called?
a. audit ignoring the computer b. audit around the computer c. audit through the computer d. audit with the computer |
b. audit around the computer
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Which type of the following documentation techniques are commonly used for computer programmers?
a. data flow diagrams b. document flowcharts c. system flowcharts d. program flowcharts |
d. program flowcharts
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What are the two basic subsystem within the revenue cycle?
a. sales and cash receipts b. taking order and approving credits c. shipping and billing d. sales and customer services |
a. sales and cash receipts
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In credit sales process, shipping function can be conceptualized as the duty of:
a. authorization b. recording c. custody d. independent check |
c. custody
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In credit sales process, billing function can be conceptualized as the duty of:
a. authorization b. recording c. custody d. independent check |
b. recording
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Invoice is prepared by:
a. order taking b. cashier c. billing clerk d. mailroom clerk |
c. billing clerk
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Which one of the following documents allows the WH clerk to prepare products?
a. customer order b. sales order c. stock release d. packing slip |
c. stock release
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Which one of the following documents is sent to the customer along with the products?
a. customer order b. sales order c. stock release d. packing slip |
d. packing slip
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Which one of the following documents transfers the custody of inventory from the seller to the shipping company?
a. invoices b. sales order c. bill of lading d. remittance advice |
c. bill of lading
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Which function records credit sales in sales journal?
a. billing b. accounts receivable function c. inventory control d. general ledger function |
a. billing
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Which function updates individual customers' receivable balances?
a. billing b. accounts receivable function c. inventory control d. general ledger function |
b. accounts receivable function
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Who deposits the checks to the bank?
a. mailroom clerk b. cash receipt clerk c. accounts receivable function d. the controller |
b. cash receipt clerk
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Based on the COSO framework, setting up both inventory control function and warehouse function is an example of?
a. control environment b. authorization control c. segregation of duties d. independent verification |
c. segregation of duties
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Based on the COSO framework, shipping clerk verifying that the products sent from the warehouse are correct in type and quantity is an example of?
a. control environment b. authorization control c. segregation of duties d. independent verification |
d. independent verification
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Which one of the following functions in the manual systems is most likely to be replaced with computer operation?
a. warehouse b. shipping c. supervision of employee d. book keeping |
d. book keeping
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Which one of the following reflects a unique control in typical point-of-sale systems?
a. credit card voucher b. register tape c. independent check of supervisor d. the elimination of shipping |
b. register tape
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Which of the following statement is correct regarding a table in a relational database?
a. a table can have multiple primary keys b. a tables can have only one foreign key c. a primary key can consist of multiple attributes d. a specific value of primary key can identify multiple instances |
c. a primary key can consist of multiple attributes
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Information about a customer cannot be entered in a table unless he/she has purchased goods/services from the company. This problem is an example of
a. delete anomaly b. insert anomaly c. update anomaly d. normalization anomaly |
b. insert anomaly
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The problem that users are unable to obtain additional information as his or her needs change in a flat file system is referred to as:
a. data storage problem b. data updating problem c. task-data dependence problem d. data currency problem |
c. task-data dependence problem
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Which of the following statement is correct about Entity-Relationship (ER) diagram?
a. an ER diagram doesn't tell us the instances of the tables in the database b. an ER diagram doesn't tell us the tables in the database c. an ER diagram doesn't tell us the attributes of each table in the database d. an ER diagram doesn't tell us the relationships between two tables in the database |
a. an ER diagram doesn't tell us the instances of the tables in the database
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The objectives of an IS include each except:
a. support the stewardship responsibilities of management b. furthering support financial interests of shareholders c. support for management decision making d. support firms day-to-day operations |
b. furthering support financial interests of shareholders
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In general, a special journal would NOT be used to record?
a. stock issuances b. payroll c. cash receipts d. purchases |
a. stock issuances
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Which of the following statements about MS Excel look-up is correct?
a. look-up function is necessary to execute sum function b. look-up function is necessary to execute a macro c. look-up function only works when security level is lower than high on excel d. look-up works only if look-up value is known |
d. look-up works only if look-up value is known
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Which system is NOT a part of expenditure cycle?
a. cash disbursement b. payroll c. production/planning d. purchases/accounts payable |
c. production/planning
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Which accounts is least likely to have a subsidiary ledger?
a. accounts receivable b. accounts payable c. sales d. inventory |
c. sales
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Dis-advantage of distributed data processing include all except:
a. data redundancy b. hardware/software in-compatibility c. higher hardware requirements d. difficulty in hiring IT professionals |
c. higher hardware requirements
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The transaction processing system includes all of the following cycles except?
a. revenue cycle b. administrative cycle c. expense cycle d. conversion cycle |
b. administrative cycle
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Subsidiary ledgers are used in the manual environment. What file is comparable to the subsidiary ledger in the computerized environment?
a. archive file b. reference file c. transaction file d. master file |
d. master file
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Which is not a typical problem associated with top-level management fraud?
a. it typically involves in financial statement frauds b. earning numbers usually understated c. performanced based compensation is usually short term d. misappropriated of assets usually shrouded by maze of complex business transactions |
b. earning numbers usually understated
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Decision to extend credit beyond normal credit level is example of?
a. independent verification b. access control c. segregation of function d. none of the above |
d. none of the above (I think it would be authorization)
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A professional criminal who works in mailroom and stole checks when customers forgot to send other supporting documents. Fraud is an example of?
a. skimming b. leaking c. lapping d. kitting |
a. skimming
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Which is correct of GL/FRS system?
a. its a subsytem of transaction processing system b. its a subsystem of management reporting system c. it collects data from transaction processing system d. it collects data from management reporting system |
c. it collects data from transaction processing system
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In purchase process, accounts payable can be conceptualized as a duty of:
a. authorization b. recording c. custody d. independent check |
b. recording
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Invoice is received by:
a. customers' purchase function b. customers' billing function c. customers' receiving clerk d. customers' accounts payable function |
d. customers' accounts payable function
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Which document does warehouse clerk prepare when products are received from vendors?
a. shipping notice b. receiving report c. bill of lading d. packing slip |
b. receiving report
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Which document justifies need to purchase office supplies?
a. customer order b. sales order c. purchase order d. purchase requisition |
d. purchase requisition
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Which document transfers custody of inventory from seller to shipping company?
a. invoices b. sales order c. bill of lading d. none of the above |
c. bill of lading
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Which function records credit sales in sales journal?
a. sales clerk b. accounts receivable function c. inventory control d. none of the above |
d. none of the above (billing clerk)
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Which function updates individual vendors' balances?
a. accounts receivable function b. accounts payable function c. general ledger function d. none of the above |
b. accounts payable function
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Which function periodically reconciles total accounts payable subsidiary ledger?
a. billing function b. accounts receivable function c. inventory control function d. none of the above |
d. none of the above
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How do large automakers re-engineer their systems to significantly increase the efficiency of expenditure cycle?
a. use computer to generate receiving report b.use computer to generate purchase requisition c. use computer to update accounts payable once file products are received d. use computer to perform various general ledger tasks |
c. use computer to update accounts payable once file products are received
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What documents are used to support the cash disbursement voucher in purchase process?
a. purchase requisition, bill of lading, and vendor invoice b. purchase order, receiving report, and vendor invoice c. purchase order, packing slip, and seller invoice d. none of the above |
b. purchase order, receiving report, and vendor invoice
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Strength or Weakness?
The company constantly re-engineers its business processes |
weakness
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Strength or Weakness?
Internal auditors are hired by the audit committee of the board, which consists of all independent directors of financial expertise |
strength
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Strength or Weakness?
No code of conduct and/or ethics policy has been established |
weakness
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Strength or Weakness?
There are over a dozen different information systems used by various department. in the company's strategic planning, there is no mentioning of a consistent infrastructure that supports financial reporting |
weakness
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Strength or Weakness? And Physical Control?
Production supervisor submits time cards and distributes worker pay checks |
weakness
supervision |
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Strength or Weakness? And Physical Control?
Cash receipt clerk deposits customers' checks to the bank and updates customers' records in the AR subsidiary ledger |
weakness
segregation of functions |
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Strength or Weakness? And Physical Control?
While many financial transactions are recorded in the book, the auditor cannot find supporting source documents |
weakness
accounting records |
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Strength or Weakness? And Physical Control?
When purchase manager is absent, user departments aren't allowed to directly contact vendors and make purchases |
strength
authorization |
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Strength or Weakness? And Physical Control?
Cameras installed in mailroom |
Strength
Supervision |
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Strength or Weakness? And Physical Control?
After counting and checking the products received from the supplier, receiving clerk records the products in the inventory subsidiary ledger |
Weakness
segregation of duties |
