Chapter 2 Flashcards
Which of the following commonly initiates the data input process?
A) a business activity
B) automatic batch processing
C) an accounting department source document
D) a trial balance query
A) a business activity
A typical source document could be A) some type of paper document. B) a computer data entry screen. C) the company's financial statements. D) both A and B
D) both A and B
Which step below is not considered to be part of the data processing cycle? A) data input B) feedback from external sources C) data storage D) data processing
B) feedback from external sources
A delivery of inventory from a vendor, with whom a credit line is already established, would be initially recorded in which type of accounting record and as part of what transaction cycle?
A) purchases journal; expenditure cycle
B) general journal; expenditure cycle
C) general ledger; expenditure cycle
D) cash disbursements journal; production cycle
A) purchases journal; expenditure cycle
Identify the four parts of the transaction processing cycle.
A) data input, data storage, data processing, information output
B) data input, data recall, data processing, information output
C) data input, data recall, data transmission, information output
D) data input, data recall, data transmission, data storage
Answer: A
A) data input, data storage, data processing, information output
What is the most frequent revenue cycle transaction? A) purchase of inventory B) receipt of cash C) sale to customer D) billing
C) sale to customer
The existence of relevant data guarantees the data are useful.
FALSE
Identify the item below that is not one of the four different types of data processing activities. A) creating B) reading C) using D) deleting
C) using
What is the final step in the data processing cycle? A) output B) storage C) processing D) input
A) output
The general ledger
A) is the initial place to record general expenses.
B) is posted in total to the general journal.
C) only includes balance sheet accounts.
D) summarizes the transactions in journals.
D) summarizes the transactions in journals.
For a retail business, a delivery of inventory, from a vendor (with whom there is an established credit relationship) would be initially recorded in which type of accounting record as part of which transaction cycle?
A) purchases journal; expenditure cycle
B) general journal; expenditure cycle
C) general ledger; expenditure cycle
D) cash disbursements journal; production cycle
A) purchases journal; expenditure cycle
Data must be collected about three facets of each business activity. What are they?
A) the business activity, the resources it affects, the people who participate
B) the business activity, the transactions it creates, the impact on the financial statements
C) the inputs, outputs and processes used
D) who is involved, what was sold, how much was paid
A) the business activity, the resources it affects, the people who participate
Issuing a purchase order is part of which transaction cycle? A) the revenue cycle B) the expenditure cycle C) the human resources cycle D) the production cycle
B) the expenditure cycle
The collection of employee time sheets is part of which transaction cycle? A) the revenue cycle B) the production cycle C) the human resources cycle D) the expenditure cycle
C) the human resources cycle
Common source documents for the revenue cycle include all of the following except A) sales order. B) receiving report. C) delivery ticket. D) credit memo
B) receiving report.
Which of the following documents would be found in the expenditure cycle? A) delivery ticket B) time card C) credit memo D) purchase order
B) time card
Documents that are sent to customers or suppliers and then sent back to the company in the course of a business transaction are known as A) turnaround documents. B) source documents. C) input documents. D) transaction documents.
A) turnaround documents.
Which of the following is an example of source data automation?
A) a utility bill
B) POS (point-of-sale) scanners in retail stores
C) a bill of lading
D) a subsidiary ledger
B) POS (point-of-sale) scanners in retail stores
Pre-numbering of source documents helps to verify that
A) documents have been used in order.
B) company policies were followed.
C) all transactions have been recorded.
D) source data automation was used to capture data.
C) all transactions have been recorded.
Source documents generally help to improve accuracy in transaction processing because
A) they specify which information to collect.
B) logically related data can be grouped in the same area of the document.
C) they provide directions and steps for completing the form.
D) All of the above are correct.
D) All of the above are correct.
In transaction processing, generally which activity comes first? A) recording data in a journal B) posting items to special journals C) capturing data on source documents D) recording data in a general ledger
C) capturing data on source documents
Which of the following statements is true?
A) Batch processing ensures that stored information is always current.
B) Batch input is more accurate than on-line data entry.
C) On-line batch processing is a combination of real-time and batch processing.
D) Batch processing is not frequently used.
C) On-line batch processing is a combination of real-time and batch processing.
The data processing method used by FedEx to track packages is an example of A) real-time processing. B) batch processing. C) online batch processing. D) real-time batch processing.
A) real-time processing.
Data processing includes all of the following except
A) verifying subsidiary ledger balances.
B) changing customer addresses.
C) removing inventory items no longer offered.
D) adding the name of a new vendor.
A) verifying subsidiary ledger balances.
Which of the following statements about data processing methods is true?
A) Online real-time processing does not store data in a temporary file.
B) Batch processing cannot be used to update a master file.
C) Control totals are used to verify accurate processing in both batch and online batch processing.
D) Online real-time processing is only possible with source data automation.
A) Online real-time processing does not store data in a temporary file.
Source data automation refers to
A) using devices to capture transaction data in machine-readable form at the time the transaction is initiated.
B) using the internet as the operating platform of an accounting information system.
C) using an accounting information system to electronically bill customers.
D) using an accounting information system to automate a previously manual transaction process.
A) using devices to capture transaction data in machine-readable form at the time the transaction is initiated.
What is the first step in the data processing cycle? A) input B) output C) storage D) purchasing
A) input
A purchase requisition is a common source document used to facilitate which business activity? A) customer sale B) receipt of goods C) inventory purchase D) purchase request
D) purchase request
Identify the statement below that is not true with regards to the accounts receivable subsidiary ledger.
A) Every credit sale is entered individually into the subsidiary ledger.
B) Debits and credits in the subsidiary ledger must always equal.
C) The subsidiary ledgers play an important role in maintaining the accuracy of the data stored in the AIS.
D) The total of the subsidiary ledgers must equal the control account.
B) Debits and credits in the subsidiary ledger must always equal.
Which of the following is not usually a consideration when designing a coding system? A) government coding regulations B) standardization C) future expansion needs D) ease of reporting
A) government coding regulations
