Deck 16: 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 statements contain detailed information of all of an organization's business event data.

Answer 2

False

Question 3

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.

Answer 3

False

Question 4

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

Question 5

A performance report compares actual results with budgeted expectations.

Question 6

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

Question 7

The intent of Sarbanes Oxley is to protect the company by improving the accuracy and reliability of all disclosures.

Question 8

The financial reporting officer is primarily responsible for budgeting.

Question 9

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

Question 10

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

Question 11

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

Question 12

The GL/BR process is an interacting structure of people, equipment, methods, and controls that is designed to accomplish both operations and information system functions.

Question 13

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

Question 14

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 15

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

Question 16

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

Question 17

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

Question 18

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 19

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

Question 20

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 21

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 22

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 23

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 24

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

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

Question 25

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 changes

Question 26

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 27

Which of the following is least likely to be part of the relevant environment of 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)the inventory process

Question 28

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 business reporting department
D)the budgeting department

Question 29

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

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

Question 30

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

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

Question 31

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 business reporting department
D)the managerial reporting officer

Question 32

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

A)general ledger accounting department
B)budgeting department
C)financial reporting officer
D)operating line managers

Question 33

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 34

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

A)general ledger accounting department
B)budgeting department
C)financial reporting officer
D)managerial reporting officer

Question 35

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 36

GAAP based financial statements are sent by:

A)the controller
B)the treasurer
C)the financial reporting officer
D)the business reporting department

Question 37

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 38

Which person has responsibilities similar to those of the financial reporting officer?

A)Controller
B)Treasurer
C)managerial reporting officer
D)internal auditor

Question 39

The general ledger process comprises all of the following except:

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

Question 40

Normally, you would expect that operating event data 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 41

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

Question 42

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

Question 43

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

Question 44

Which of the following statements related to XBRL is false?

A)XBRL is being developed by a nonprofit consortium of approximately 450 major companies, organizations, and government agencies..
B)To date world-wide implementation and acceptance of XBRL has been slow.
C)XBRL can handle data in different languages and accounting standards as well.
D)XBRL offers cost savings, greater efficiency, and improved accuracy and reliability to all those involved in supplying or using financial data.

Question 45

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

Question 46

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

Question 47

Which of the following represent a typical coding scheme for a general ledger account?

A)1XXX assets X1XX current assets
XX1X cash accounts
XXX3 cash in bank
B)1XXX cash in bank X1XX cash accounts
XX1X current assets
XXX3 assets
C)1XXX non-current assets X1XX current assets
XX1X cash accounts
XXX3 cash in bank
D)none of the above are correct

Question 48

The ______________________________ officer possesses expertise in preparing internal management reports.

Question 49

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 50

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 51

The general ledger master data does not contain:

A)adjusting entry data
B)customer number
C)totals extracted by event type from business event data
D)a chart of accounts

Question 52

The ______________________________ 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 53

The ______________________________ officer possesses expertise in generally accepted accounting principles.

Question 54

The intent of the Sarbanes Oxley Act is:

A)to protect investors by improving the accuracy and reliability of corporate disclosures
B)to improve GAAP
C)to increase the speed of disclosures
D)to strengthen the internal audit department

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

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

Question 57

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 58

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 59

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

Question 60

In a logical DFD for the general ledger/business reporting (GL/BR) process, which of the following processes normally would not update the general ledger master data?

A)Record budget.
B)Post events data.
C)Record adjustments.
D)Prepare financial statements.

Question 61

A(n) ______________________________ is an internal source document used to notify the general ledger to make an accounting entry.

Question 62

TB Figure 16.1 is a Level zero DFD for the GL/BR process.Required:
Explode bubble 3.0, for the "Record Adjustments" process into a level 1DFD

Question 63

The intent of ______________________________ is to protect investors by improving the accuracy and reliability of corporate disclosures.

Question 64

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

Question 65

The important information services functions of the GL/BR process emphasized in chapter 16 included two categories: (1) general ledger activities and (2) other business reporting.Briefly discuss what comprises the general ledger (GL) process comprises and what comprises the business reporting process.

Question 66

The ___________________________________ data contains summarized information of all an organization's business event data.

Question 67

TB Figure 16.3 is a Level zero DFD for the GL/BR process.Required:
Explode bubble 4.0, for the "Prepare Business Reports" process into a level 1DFD

Question 68

Sarbanes-Oxley, Section 409 states that companies ''shall disclose to the public on a ____________________ and ____________________ basis such additional information concerning material changes in the financial condition or operations of the issuer....''

Question 69

____________________ of financial information is a potential information use problem that may arise when changing account numbers and account number structure.

Question 70

___________________________________ 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 71

______________________________ 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 72

____________________________________ is the process by which assurance is provided through monitoring of automated controls and business events in real-time or near real time.

Question 73

_____________________________________________ 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.

Question 74

Consider the GL account number "1122".From right to left, where each successive digit's rank order is subordinate to the rank to the left is known as _________________________ coding.

Question 75

Chapter 16 includes a discussion The Sarbanes Oxley Act of 2002.Describe the three sections of Sarbanes Oxley that were discussed, and how these may impact financial reporting.

Question 76

Sarbanes-Oxley Section 401 covers ____________________ in financial reports.

Question 77

____________is a generalized system for the customized tagging of data to enable the definition, transmission, and interpretation of data over the Internet.XML uses predefined tags to let information providers create uniform information for users.

Question 78

Discuss the following components of the balanced scorecard:
(1) financial
(2) internal business processes
(3) customers
(4) innovation and improvement activities