Deck 16: The General Ledger and Business Reporting GLBR Process

Question 1

The source code field of each GL entry provides a beginning point of reference for developing a proper chart of accounts.

Answer 1

False

Question 2

The financial reporting officer is primarily responsible for budgeting.

Answer 2

False

Question 3

XBRL is an XML-based language consisting of a set of tags that are used to unify the presentation of business reporting information into a single format that can be easily read by almost any software package and can be easily searched by Web browsers.

Answer 3

True

Question 4

A performance report compares actual results with budgeted expectations.

Question 5

The general ledger master data contains summarized information of all of an organization's business event data.

Question 6

Business intelligence is the integration of statistical and analytical tools with decision support technologies to facilitate complex analyses of data warehouses by managers and decision makers.

Question 7

The driving force in constructing a chart of accounts is to add structure to the classification of financial information.

Question 8

The intent of the Sarbanes-Oxley Act of 2002 is to protect the company by improving the accuracy and reliability of all corporate disclosures made pursuant to the securities laws.

Question 9

The business reporting process comprises accumulating, classifying, and recording data, fueling the financial reporting, business reporting, and other reporting subsystems.

Question 10

The general ledger process is concerned with preparing external financial statements, ensuring they conform to GAAP, generating Web-based forms of key financial statement and related business reporting via the Internet, and supporting the generation of both ad hoc and predetermined business reports.

Question 11

A feeder process is any business process that accumulates business event data that are then communicated to and processed within the GL.

Question 12

The managerial reporting officer is responsible for reporting GAAP financial statements.

Question 13

As we move toward an enterprise system environment, the chart of accounts becomes increasingly more important.

Question 14

A journal voucher is an internal source document used to notify the GL to make an accounting entry.

Question 15

XML is a generalized system for the customized tagging of data to enable the definition, transmission, and interpretation of data over the Internet.

Question 16

Performance reports are often part of a managerial reporting system known as a responsibility accounting/reporting system.

Question 17

Balanced scorecard is methodology for assessing an organization's business performance via four components: (1) financial, (2) external business process, (3) vendors, and (4) innovation and improvement activities.

Question 18

The GL/BR process is an interacting structure of people, equipment, activities, and controls that is designed to accomplish both operations and information system functions with the purpose of generating accounting and other reports.

Question 19

The financial statements contain detailed information of all of an organization's business event data.

Question 20

The controller notifies the business reporting process of investing and financing transaction activities,

Question 21

Balanced scorecard is methodology for assessing an organization's business performance via four components: (1) financial, (2) internal business process, (3) customers, and (4) innovation and improvement activities.

Question 22

A limitation of the general ledger approach is that financial and non-financial information is combined and business event source data is retained.

Question 23

The source code field of each GL entry provides a beginning point of reference for developing a proper audit trail.

Question 24

The business reporting process is concerned with preparing external financial statements, ensuring they conform to GAAP, generating Web-based forms of key financial statement and related business reporting via the Internet, and supporting the generation of both ad hoc and predetermined business reports.

Question 25

Typically, you would expect general ledger updates for periodic adjusting entries to be fed to the GL/BR process by:

A) the controller
B) the treasurer
C) the chief executive officer (CEO)
D) one of the AIS feeder systems

Question 26

The financial reporting officer typically prepares performance reports.

Question 27

The managerial reporting officer is responsible for preparing performance reports.

Question 28

The general ledger process comprises all of the following except:

A) providing information for financial reporting
B) servicing the needs of managerial reporting
C) classifying data by general ledger accounts
D) ensuring that the external financial statements conform to GAAP

Question 29

The financial reporting officer is responsible for reporting GAAP financial statements.

Question 30

Continuous assurance (continuous auditing) is the process by which assurance is provided through monitoring of automated controls and business events in real time or near real time.

Question 31

Convergence implies that GAAP and IFRS standards will blend together, with differences reconciled, and ultimately we will have one set of standards that can be used world-wide.

Question 32

The financial reporting system is also known as the responsibility accounting/reporting system.

Question 33

The business reporting process comprises all of the following except:

A) preparing general purpose external financial statements
B) generating ad hoc and predetermined business reports for management
C) ensuring that the external financial statements adhere to GAAP
D) fueling the financial reporting, business reporting, and other reporting subsystems by providing the information needed to prepare external and internal reports

Question 34

The treasurer notifies the business reporting process of investing and financing transaction activities.

Question 35

XML is an XBRL-based language consisting of a set of tags that are used to unify the presentation of business reporting information into a single format that can be easily read by almost any software package and can be easily searched by Web browsers.

Question 36

An instance document is an XBRL document that contains all information, at a given point in time, including tags, about the occurrence of an item.

Question 37

Typically, you would expect general ledger updates for financing and investing activities to be fed to the GL/BR process by:

A) the controller
B) the treasurer
C) the chief executive officer (CEO)
D) one of the AIS feeder systems

Question 38

When implementing an ERP system, it is best to provide all users with access to all menu systems, so they can see what is going on within the system.

Question 39

In contrast to the managerial reporting process, the financial reporting process prepares all of the following financial statements except:

A) the balance sheet
B) the income statement
C) the standard costing variance report
D) the statement of owner equity

Question 40

The general ledger process comprises accumulating, classifying, and recording data, fueling the financial reporting, business reporting, and other reporting subsystems.

Question 41

Which of the following advises and assists the cost center, profit center, and investment center managers in preparing the budget?

A) the financial reporting officer
B) the budgeting department
C) the treasurer
D) the managerial reporting officer

Question 42

A responsibility accounting/reporting system includes the following:

A) upward reporting of information
B) aggregation of data as it flows upward
C) appropriate information detail for each decision maker
D) All of the above

Question 43

The general ledger master data does not contain:

A) adjusting entry data
B) customer number
C) business event transaction
D) source code field

Question 44

Which of the following statements related to journal vouchers is false for most ERP systems?

A) The person completing the adjustment will enter it directly into the computer.
B) The voucher will be electronic.
C) Journal voucher should be signed by the person(s) authorized to initiate the entry.
D) To provide an adequate audit trail, a printed copy of journal vouchers is required.

Question 45

Inputs to a GL/BR process typically include all of the following except:

A) adjusting entry journal voucher
B) adjusted trial balance
C) finalized budget
D) GAAP-based financial statements

Question 46

Which of the following has responsibilities and expertise to preparing internal reports?

A) the financial reporting officer
B) the managerial reporting officer
C) the treasurer
D) the budgeting department

Question 47

An account in the chart of accounts has the number 7111. Which of the following does the 7 likely represent?

A) Revenues
B) sales region
C) merchandise sales
D) golf merchandise sales

Question 48

Which of the following individuals should possess the greatest knowledge of GAAP?

A) managerial reporting officer
B) budgeting department manager
C) financial reporting officer
D) managerial reporting officer

Question 49

Adjusted trial balance figures are usually sent from the business reporting department to the:

A) the financial reporting officer
B) the managerial reporting officer
C) the treasurer
D) the budgeting department

Question 50

Which of the following usually would be responsible for preparing operating center budgets?

A) managerial reporting officer
B) budgeting department manager
C) financial reporting officer
D) operating line managers

Question 51

Which of the following provides data to the GL/BR process?

A) the order entry/sales process
B) the billing/accounts receivable/cash receipts process
C) the purchasing/accounts payable/cash disbursements process
D) All of the above

Question 52

Performance reports to various cost center, profit center, and investment center managers are usually sent by?

A) the controller
B) the treasurer
C) the managerial reporting officer
D) the budgeting department

Question 53

Normally, you would expect that business event updates would be sent to the GL/BR process by:

A) the controller
B) the treasurer
C) the vice president of finance
D) various feeder processes

Question 54

Limitations of the general ledger approach include the following:

A) combining of financial and non-financial information
B) purging of detailed event level data
C) use of a chart of accounts
D) inability to conform to GAAP

Question 55

Tracing back to individual business events that have been aggregated into account balances is done by means of a(n):

A) electronic reference service
B) general ledger account
C) audit trail
D) data dictionary

Question 56

Finalized budget figures are sent to the GL/BR process by:

A) the financial reporting officer
B) the budgeting department
C) the treasurer
D) the managerial reporting officer

Question 57

The coding system typically used in the general ledger chart of accounts is:

A) serial coding
B) hierarchical coding
C) block coding
D) mnemonic coding

Question 58

Which of the following usually would be responsible for preparing operating center performance reports?

A) managerial reporting officer
B) budgeting department manager
C) financial reporting officer
D) operating line managers

Question 59

Which of the following could be a journal voucher?

A) general ledger cash disbursements update
B) customer invoice
C) receiving report
D) purchase requisition

Question 60

GAAP based financial statements are sent by:

A) the controller
B) the treasurer
C) the financial reporting officer
D) the managerial reporting officer

Question 61

Often, performance reports are part of a managerial reporting system known as a(n) ______________________________ system.

Question 62

Which of the following statements related to XBRL is false?

A) is an XML-based language consisting of a set of tags that are used to unify the presentation of business reporting information into a single format
B) it is easily read by almost any software package, and easily searched by Web browsers
C) it provides an identifying tag for each individual item of data that is computer readable
D) it treats financial information as a block of text

Question 63

The ______________________________ notifies the general ledger/business reporting process of investing and financing transaction activities,

Question 64

A(n) ______________________________ report compares actual results with budgeted expectations.

Question 65

The ______________________________ is a list of all the accounts in the general ledger.

Question 66

Which of the following should be considered when designing a coding scheme for a chart of accounts?

A) Which internal reports will be required?
B) Is there a need for segmental reporting?
C) Both a. and b.
D) Neither a. nor b.

Question 67

The intent of the Sarbanes-Oxley Act of 2002 is to:

A) protect investors by improving the accuracy and reliability of corporate disclosures
B) establish who is responsible for financial reporting
C) strengthen internal control
D) All of the above

Question 68

Which of the following items is not one of the four components of the balanced scoreboard methodology?

A) Customers
B) Financial
C) competitive environment
D) internal business processes

Question 69

To be effectives business intelligence requires:

A) a balanced scorecard
B) XBRL
C) integration of statistical and analytical tools with decision support technologies
D) convergence of GAAP and IFRS

Question 70

Continuous assurance (continuous auditing) will lead to:

A) fewer financial statement audits
B) use of audit modules embedded in ERP systems
C) convergence of GAAP and IFRS
D) All of the above

Question 71

The ______________________________ officer possesses expertise in generally accepted accounting principles.

Question 72

Which of the following items is a component of the balanced scoreboard methodology?

A) Customers
B) Financial
C) Innovation and improvement
D) All of the above

Question 73

GAAP and IFRS convergence will lead to:

A) the end of the FASB
B) the blending of GAAP and IFRS standards
C) decreased role for the AICPA
D) less costly processes for financial reporting

Question 74

The ______________________________ officer possesses expertise in preparing internal management reports.

Question 75

The ______________________________ process is an interacting structure of people, equipment, activities, and controls that is designed to accomplish both operations and information system functions with the purpose of generating accounting and other reports.

Question 76

The ______________________________ process comprises preparing external financial statements, ensuring they conform to GAAP, generating Web-based forms of key financial statement and related business reporting information via the Internet, and supporting the generation of both ad hoc and predetermined business reports.

Question 77

The ______________________________ process comprises accumulating, classifying, and recording data, fueling the financial reporting, business reporting, and other reporting subsystems.

Question 78

A(n) ______________________________ process is any business process that accumulates business event data that are then communicated to and processed within the GL.

Question 79

Sarbanes-Oxley Act of 2002 may lead to:

A) convergence of GAAP and IFRS
B) continuous or real-time reporting
C) Worldwide acceptance of XBRL
D) obscuring of the economic reality of business events

Question 80

An instance document:

A) is an XBRL document that contains all information, at a given point in time, including tags, about the occurrence of an item
B) is a feature of a relational database
C) is used to comply with SOX Section 409 regarding rapid disclosure of material changes
D) summarizes instances of GAAP and IFRS reporting differences