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Enterprise Resource Planning > Accounting Process > Flashcards

Accounting Process Flashcards

1
Q

Uses of Coding in AIS: _____ represent large amounts of ___ information that would otherwise be unmanageable

A

Concisely, complex

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2
Q

Uses of Coding in AIS: Provide a means of _______ over the _______of the transactions processed

A

accountability, completeness

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3
Q

Used to prenumber source documents and track each transaction processed

A

Sequential Code

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4
Q

What are the disadvantages of using sequential codes

A

-Arbitrary Information
-No information outside of the sequence
-Hard to reinsert files because it need renumbering

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5
Q

Used for chart of accounts and to represent whole classes

A

Block Codes

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6
Q

What are the advantages and disadvantages of block codes?

A

Advantages:
- Easy insertion of new codes within a block (no restructuring needed)
Disadvantages:
- Information is not readily apparent

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7
Q

Represent complex items or events involving two or more pieces of data using fields with specific meaning

A

Group Codes

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8
Q

Group Codes facilitate the representation of_________
allows complex data structures to be represented in a hierarchical form that is logical and more ________ by humans.
Permits _______ both within an item class and across different classes of items

A

large amounts of diverse data, easily remembered, detailed analysis and reporting

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9
Q

What are the disadvantages of group codes?

A

Overused and sometimes overly complex

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10
Q

Used for the many of the same purpose as numeric codes

A

Alphabetic Codes

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11
Q

Alphabetic codes can represent up to __ variations per field

A

26

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12
Q

What are the disadvantages of Alphabetic Codes?

A
  • difficult to rationalize the meaning sequentially
  • difficult to sort
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13
Q

Codes that are not needed to be memorized?

A

Mnemonic Codes

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14
Q

The General Ledger System Database is composed of?

A
  • GL Master File
    -GL History File
  • Journal Voucher File
  • Journal Voucher History File
  • Responsibility center file
    -Budge Master File
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15
Q

The principal FRS file is based on?

A

Chart of accounts

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16
Q

What is the trigger for the financial reporting process?

A

An economic event

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17
Q

What are the reports of the General Ledger?

A
  1. Listing of Transaction
  2. Allocation of expenses to cost center
  3. comparison of account balances from prior periods
  4. trial balances
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18
Q

What are the managerial reports in the general ledger system?

A

Analysis of:
1. Cash
2. Receivables
3. Sales

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19
Q

GL/FRS Control Issues: Transaction Authorization

A

journal vouchers must be authorized by a manager at the source dept

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20
Q

GL/FRS Control Issues SOD: G/L clerks should not?

A

-have recordkeeping responsibility for special journals or subsidiary ledgers
-prepare journal vouchers
-have custody of physical assets

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21
Q

GL/FRS Control Issues: Access Controls - Sarbanes-Oxley

A

Requires controls that limit database access to only authorized individuals

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22
Q

GL/FRS Control Issues: Independent Verification

A

G/L dept. reconciles journal vouchers and summaries

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23
Q

What are the two important operational reports used for independent verification

A
  1. Journal Voucher Listing
  2. General ledger change report
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24
Q

What two databases are bumped against each other in a GLS that uses databases?

A

Journal Voucher Transaction File and General Ledger Master

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25
Q

Database Tech removes what?

A

Separation of Transaction Authorization and processing

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26
Q

What is the control added for the Separation of Transaction Authorization and processing in database tech

A

Detailed JV listing and account activity reports

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27
Q

T or F: Database Technology provides decentralized access to accounting records

A

False

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28
Q

T or F: MRS only produce non financial information

A

False. Financial information are also produced

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29
Q

Is MRS a necessity?

A

No. It is discretionary

30
Q

What does Sarbanes-Oxley say about MRS?

A

It is required because it provides a formal means to monitor internal controls

31
Q

formalization of tasks structure around?

A

tasks rather than individual skills

32
Q

obligation to achieve desired results

A

Responsibility

33
Q

power to make decisions within the limist of that responsibility

A

authority

34
Q

Responsiblity and Authority are delegated by who?

A

Managers

35
Q

Responsiblity and Authority define the _____________through which information flows

A

vertical reporting channels

36
Q

the number of subordinates directly under the manager’s control

A

Span of control

37
Q

What is the difference between narrow and wide span of control

A

Detailed reports: Narrow
Summarized: Wide

38
Q

Management by exception:Reports should focus on changes in key factors that are ____ of potential problems.

A

asymptomatic

39
Q

Management Function, Level, and Decision Type: In the pyramid What is the role of Top, Middle, and Operations Management

A

Top Management: Strategic Planning

Middle Management: Tactical Planning and Management Control

Operations Management: Operational Control

40
Q

Which of the three management levels and Decision Type handle management philosophy?

A

Top Management, Strategic Planning Decisions

41
Q

What sources of information does strategic planning decisions need?

A

External and internal information sources

42
Q

Subordinate to strategic decisions

A

Tactical Planning Decisions

43
Q

using resources as productively as possible in all functional areas

A

Management Control Decisions

44
Q

Why is measuring performance difficult?

A

Sound decisions with long-term benefits may negatively impact the short-term goals

45
Q

What are the 3 basic elements in operational control?

A
  1. Attainable Standards
  2. Evaluate performance
  3. Corrective Action
46
Q

In terms of scope, what decision type is lower and medium impact?

A

Lower Impact: Management Control
Medium Impact: Tactical Planning

47
Q

In terms of level of detail, which decision type is moderately summarized and highly detailed?

A

Moderately Summarized: Management Control

Highly Detailed: Operational Control

48
Q

In terms of Certainty which decision type is highly certain and uncertain

A

Uncertain- Strategic Planning and Management Control

Highly Certain- Tactical Planning and Operational Control

49
Q

reflects and affects how well decision makers understand and solve problems

A

Problem Structure

50
Q

What are the elements of a problem structure?

A
  1. Data
  2. Procedures
  3. Objectives
51
Q

How are problem structures handle from top management to operations?

A

Unstructured to Structured

52
Q

What are the report Attributes?

A

Relevance – useful to decision making
Summarization – appropriate level of detail
Exception orientation – identify risks
Accuracy – free of material errors
Completeness – essential information
Timeliness – in time for decisions
Conciseness – understandable format

53
Q

According to the FASB Conceptual Framework, What are the attributes in Relevant Information?

A

Feedback Value, Timely, Predictive Value

54
Q

According to the FASB Conceptual Framework, What are the attributes in reliable information?

A

Representational Faithfulness
Verifiable
Neutral

55
Q

What type of reports are produced at specified intervals

A

Scheduled Reports

56
Q

What type of reports are triggered by events?

A

On-demand Reports

57
Q

What type of reports are created when situations arise that require new information

A

Ad hoc reports

58
Q

What is responsibility accounting?

A

Implies that every economic event that affects the organization is the responsibility of and can be traced to an individual manager

59
Q

Budget Information flows? and becomes?

A

downward, increasingly detailed

60
Q

The ___ flows upward as ____ reports

A

Performance information, responsibility

61
Q

responsible for keeping costs within budgetary limits

A

Cost Center

62
Q

responsible for both cost control and revenue generation

A

Profit Center

63
Q

has general authority to make a wide range of decisions affecting costs, revenue, and investments in assets

A

Investment Center

64
Q

___ and ___ help to appropriately assign authority and responsibility.

A

MRS and Compensation Schemes

64
Q

What will happen when compensation measures are not carefully designed?

A

Managers may engage in actions not optimal for the organization

65
Q

Occurs when managers receive more information than they can assimilate

A

Information Overload

66
Q

Information Overload cause managers to disregard what?

A

Formal information

67
Q

What are the exampls of inappropriate measures?

A

-price variance
- quotas
- profit measures

68
Q

can affect the quality of the items purchased

A

Price Variance

69
Q

can affect quality control, material usage efficiency, labor relations, plant maintenance

A

quota

70
Q

can affect plant investment, employee training, inventory reserve levels, customer satisfaction

A

Profi Measures

Enterprise Resource Planning (3 decks)

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