Test 3

Question 1

Which of the following data entry controls would not be useful if you are recording the checkout of library books by memebers
A. sequence check
B. prompting
C. validity check
D. concurrent update control

Answer 1

A. sequence check

Question 2

a customer failed to include her account number on her check, and he accounts receivable clerk credited her payment to a different customer with the same last name. Which control have been used to most effectively to prevent this error
A. closed loop verification
B. duplicate values check
C. validity check
D. reconciliation of a batch control total

Answer 2

A. closed loop verification

Question 3

\_\_\_\_\_ enables a system to continue functioning in the event that particular component fails
A. an incremental backup procedure
B. fault tolerance
C. preventative maintenance
D.  a concurrent update control

Answer 3

B. fault tolerance

Question 4

This data entry control compares the IDnmber in transaction data to a master file to verify that the ID number exists
A. reasonableness
B. user review
C. data matching
D. validity check

Answer 4

D. validity check

Question 5

When I enter a correct customer number, th data entry screen displays the customer name and address. This is an example of
A. prompting
B. preformatting
C. closed loop feedback
D. error checking

Answer 5

C. closed loop feedback

Question 6

Parity checks are an example of a 
A. data entry control
B. data transmission control
C. output control
D. processing control

Answer 6

B. data transmission control

Question 7

The _____ normally triggers the billing process in the revenue cycle
A. sales order received fro the sales department
B. picking ticket received from the sales department
C. packing slip received from the shipping department
D. journal voucher received from the shopping department

Answer 7

C. packing slip received from the shipping department

Question 8

The \_\_\_\_\_\_ normally triggers the customer payment recording process
A. sales invoice
B. deposit slip
C. remittance advice
D. customer monthly statement

Answer 8

C. remittance advice

Question 9

In the \_\_\_\_\_\_ method of tracking accounts receivable, customers pay according to the amount showing on their monthly statement and payments are applied against the total account balance
A. specific identification
B. open invoice
C. balance forward
D. remittance advice

Answer 9

C. balance forward

Question 10

A\_\_\_\_\_\_ system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month
A. continuous
B. open-invoice
C. cycle billing
D. balance forward

Answer 10

C. cycle billing

Question 11

An account receivable aging report is useful for doing everything except
A. estimating bad debts
B. estimating future sales
C. projecting the estimating of future cash flows
D. deciding whether to increase a specific customer’s credit limit

Answer 11

B. estimating future sales

Question 12

Regularly reviewing an accounts receivable aging report can help management do what?
A. spot firms who are falling behind in their payments
B. identify customers who have not purchased anything lately
C. improve the speed which customers make payments
D. determine whether the firm’s pricing policy is effective

Answer 12

A. spot firms who are falling behind in their payments

Question 13

Which of the following is not one of the controls when customer payments are commingled with other mail?
A. preparing a remittance list as mail is opened
B. restrictively endorsing checks when received
C. requiring two mail room clerks to open ail together
D. requiring the controller to be personally present when mail is received and opened

Answer 13

B. restrictively endorsing checks when received

Question 14

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

Answer 14

A. completeness test

Question 15

All of the following edit checks for online editing of accounts receivable transactions would probably be included except
A. validity check on customer id and invoice numbers
B. check digit verification on the amount of the sale
C. closed loop verification on the customer id
D. field checks on the values in dollar fields

Answer 15

B. check digit verification on the amount of the sale

Question 16

Which of the following is least likely to be a major criterion on vendor selection
A. prices of goods
B. credit rating of the vendor
C. quality of goods
D. ability to deliver on time

Answer 16

B. credit rating of the vendor`

Question 17

Which of the following is generally not shown on a receiving report
A. price of the items
B. quantity of the items
C. purchase order number
D. counted and inspected by

Answer 17

A. price of the items

Question 18

Which of the following is not an activity performed in the expenditure cycle
A. ordering
B. receiving
C. cash disbursement
D. shipping

Answer 18

D. shipping

Question 19

Which of the following would probably be the least effective control to mitigate the risk of paying a phony invoice payable for inventory purchases that were never made
A. only pay from original invoices
B. require three way match for all inventory purchase invoices
C. Cancel all invoices and supporting documentation when paid
D. establish strict access and authorization controls for the approved vendor master file

Answer 19

A. only pay from original invoices

Question 20

What is the best way to prevent the acceptance of goods that were never ordered?
A. Order only from approved vendors
B. Enforce an appropriate conflict of interest policy in place
C. match the packing slip to a purchase order before accepting delivery
D. require specific authorization form the purchasing manager before accepting any goods

Answer 20

C. match the packing slip to a purchase order before accepting delivery

Question 21

A surprise count of an imprest petty cash fund should find the total of \_\_\_\_\_ equal to the amount authorized for the fund
A. cash and credit memos
B. cash and receipts
C. cash 
D. cash and checks

Answer 21

B. cash and receipts

Question 22

The receiving clerk at Wattana Technologies examines incoming shipments and reconciles their contents with the relevant purchase orders. A receiving report is then sent to accounts payable and the vendor’s invoice is approved for payment. Which of the following would correct control weaknesses related to these activities
A. Accounts payable should reconcile the purchase order and the receiving report
B. the invoice should approved for payment by the shipping clerk after the purchase order and receiving report are reconciled.
C. Invoices, purchase orders, and receiving report should be reconciled by the receiving clerk
D. controls are adequate under the current system

Answer 22

A. Accounts payable should reconcile the purchase order and the receiving report

Question 23

Which of the following is not a product design objective
A. Design a product that meets customer requirements
B. Design a quality product
C. Minimize production costs
D. Make the design easy to track for cost accounting purposes.

Answer 23

D. Make the design easy to track for cost accounting purposes.

Question 24

What is the main difference between MRP-II and JIT manufacturing systems
A. the length of the planning horizon
B. JIT uses long term customer demand for planning purposes, but MRP-II uses short term customer demand for planning purposes
C. MRP-II relies on EDI, but JIT does not
D. there are no significant differences between the two

Answer 24

A. the length of the planning horizon

Question 25

A master production schedule is used to develop detailed
A. timetables of daily production and determine raw material needs
B. reports on daily production and material usage
C. daily reports on direct labor needs
D. inventory charts

Answer 25

A. timetables of daily production and determine raw material needs

Question 26

Yasamin roshni owns and operates a small deli in Miami, Florida. She maintains a file that contains the ingredients used to make each of her famous subs. The ingredients needed to make specific sub are most similar to a 
A. operations list
B. production order
C. bill of materials
D. materials requisition

Answer 26

C. bill of materials

Question 27

What specific control can help restrict the rights of authorized users to only the portion of a database needed to complete their specific job duties 
A. an access control matrix
B. passwords and use ids
C. closed loop verification
D. specific authorization

Answer 27

A. an access control matrix

Question 28

An organization can implement which of the following controls to reduce the threat of inventory theft or damage
A. review and approval of fixed asset acquisitions
B. improved and more timely reporting
C. better production and planning systems
D. document all movement of inventory through the production process

Answer 28

D. document all movement of inventory through the production process

Question 29

The best control procedure for accurate data entry is
A. the use of online terminals
B. an access control matrix
C.passwords and user ids
D. automation of data collection

Answer 29

D. automation of data collection

Question 30

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 things held constant, a decrease in the number of defective units will increase throughput by
A. increasing productive capacity
B. increasing productive processing time
C. increasing yield
D. increasing all components of throughput

Answer 30

C. increasing yield