MCQ - Chapter 7 Flashcards
Which of the following functions is NOT performed corporate general ledger system?
Select one:
Recording of all information that a firm needs to sent to its regulator
Recording of all assets
Recording of expenditure
Recording of all liabilities
Recording of all information that a firm needs to sent to its regulator
Which system receives reports from clearing houses, custodians and correspondent banks about which trades have settled and which have not?
Select one:
Main settlement system
Equities Trading system
Reconciliation system
Trade capture system
Main settlement system
The rules for deciding to which account a money amount of a transaction should be posted are held within:
Select one:
An explosion table
A Transaction table
The general ledger
A Balance grid
An explosion table
General Ledger technology often serves as a backbone for creating accurate balance sheets. What is a key benefit of integrating such technology with advanced analytics?
Select one:
It enables the creation of complex trading algorithms
It provides real-time social media analytics for traders
It allows for a thorough analysis and reconciliation of balance sheet data
It facilitates faster internet connectivity for trading platforms
It allows for a thorough analysis and reconciliation of balance sheet data
Specialist reconciliation systems are primarily developed to compare settlement records with which of the following?
Select one:
Front office systems and third-party systems
Front office systems and externally transmitted transaction details
Back office systems and externally transmitted transaction details
Back office systems and third-party systems
Front office systems and externally transmitted transaction details
Which of the following is NOT a category of information captured in the first six columns of the explosion table?
Select one:
Transaction Type
Operation
Account Balance
Market Code
Account Balance
The configuration origin code tells the general ledger which of the many systems in the configuration produced the transaction. Under which data category does this code belong to?
Select one:
Transaction Information Items
Reference data Items
Balance Information Items
Pricing data
Transaction Information Items
Human and technical errors are usually associated with which types of systems?
Select one:
Trade capture systems, operations systems and financial control systems
Operations systems
Trade capture systems
Financial control systems
Trade capture systems, operations systems and financial control systems
For bond transactions, the trading system is usually responsible for calculating:
Select one:
Interest that is due to the holder
Interest and trade proceeds
Commissions paid by clients for performing the transaction
Fees levied by the Stock Exchange and Regulatory bodies
Interest that is due to the holder
Interest and trade proceeds, human errors and technical errors are all impacts on Financial control caused by …
Select one:
Equities Trading System
Bond Trading System
Derivatives Trading System
The FX and Money market Trading System
The FX and Money market Trading System
Which sub-department of the financial control department (FCD) is responsible for making payments for costs?
Select one:
Financial operations
Management accounting
Accounts management
Statutory reporting
Financial operations
A stock record could be a component of what other system?
Select one:
Main Settlement System
Double-Entry Bookkeeping System
General Ledger
Revenue Recording System
Main Settlement System
In many system diagrams, “clouds” are commonly represented. Which of the following statements about these clouds is FALSE?
Select one:
Clouds in a diagram can suggest that systems are hosted externally, in a cloud-based infrastructure, as opposed to on-premises.
In the context of a front office, clouds might signify that the trading system is integrated with external market data providers, exchanges, or other platforms.
Clouds associated with a back office can indicate the use of external Central Counterparty (CCP
Clouds in the back office diagram signify that the institution uses electronic trading platforms absent from the institution’s internal infrastructure.
Clouds in the back office diagram signify that the institution uses electronic trading platforms absent from the institution’s internal infrastructure.
Which of the following accounts is NOT mentioned as a type affected by postings in a stock record?
Book Account
Client Account
Depot Account
Revenue Account
Revenue Account
Which of the following best describes the role of product control in management accounting with respect to balance sheets?
Select one:
Ensuring the accuracy and completeness of balance sheet data
Implementing real-time trading algorithms
Facilitating direct market access
Enhancing the graphical representation of financial data
Ensuring the accuracy and completeness of balance sheet data
The stock record system allows firms to use the double entry bookkeeping convention to record stock quantities and balances. Which of the following types of accounts are NOT affected by such postings?
Select one:
Ledger account
Book account
Depot account
Client account
Ledger account
The mathematical equation used by the general ledger to ensure that debits and credits are always in balance is …
Select one:
Liabilities = Assets + Shareholders’ Equity
Shareholders’ Equity = Assess + Liabilities
Equity = Liabilities + Shareholders’ Liability
Assets = Liabilities + Shareholders’ Equity
Assets = Liabilities + Shareholders’ Equity
When a firm sells shares it does not own this is:
A short position, which is a debit balance in the GLA
A long position, which is a debit balance in the GLA
A long position which is a credit balance on the GLA
A short position which is a credit balance on the GLA
What type of information is held in an accounting ‘Explosion table’
Whether an account is a n asset or a liability
The unique codes and names given to each general ledger account
The rules for deciding to which account a monetary amount of a transaction should be posted to
The date on which the last entry was posted to a particular account.
The rules for deciding to which account a monetary amount of a transaction should be posted to
Reference data items held on an IT system about an individual general ledger account should include
Transaction type code for this account
Configuration origin code
Opening balance for this account
Identity of currency in which postings are made for this account
Identity of currency in which postings are made for this account
