Deck 4: Data Flows, Activities, and Structure of Accounting Systems

Question 1

What does the data processing activity of sorting involve?

A) Rearranging the records in a file into a meaningful sequence
B) Determining which data must be archived
C) Grouping all files into related categories
D) Grouping all data by specific type of account

Answer 1

A

Question 2

What are the support activities of an accounting information system?

A) People, input, process
B) People, technology, input
C) People, technology, control
D) People, process, control

Answer 2

C

Question 3

Which of the following is not a type of processing function?

A) Retrieving
B) Sorting
C) Comparison
D) Summarization

Answer 3

A

Question 4

What are the primary activities of an accounting information system?

A) Input (capture), store, process, output (communicate) data
B) Interface, communicate, store, process information
C) Input, store, post, process information
D) Classify, compare, summarize, calculate data

Question 5

Which of the following statements about the input activity is correct?

A) Input is an interface between users and the accounting system.
B) Input is an information process activity that produces an output.
C) Input captures and classifies transactions in an accounting system.
D) Input captures and transforms data according to a prescribed set of instructions.

Question 6

Which of the following is not an example of master file maintenance?

A) Increasing and decreasing account balances in records
B) Adding new records to a file
C) Deleting unwanted records from a file
D) Changing the content of existing records

Question 7

Which of the following is not true about input data?

A) Input data is an interface between the computer software and the accounting system.
B) Input data can be captured on source documents.
C) Input data can be prone to errors.
D) Input data can be verified by various activities.

Question 8

When inputting data, what is one of the most common errors that can occur?

A) Misspelling of names
B) Transposing digits in a number
C) Making an incorrect journal entry
D) Duplicating entries

Question 9

Which of the following statements about updating an open customer invoice file is correct?

A) Only cash sales are added.
B) Only credit sales are added.
C) Both cash and credit sales are added, but the cash sales are eliminated at the end of the accounting period.
D) Both cash and credit sales are added, because the file provides a source of sales history.

Question 10

What should be characteristics of the information provided by an accounting system?

A) Useful
B) Timely and inexpensive
C) Easy to understand
D) Useful and easy to understand
E) All of these D

Question 11

Which of the following statements about information processing activities is not correct?

A) Capturing transaction data in machine-readable form reduces error input data.
B) File maintenance is a nonroutine process in which changes are made to a master file through direct intervention by a user.
C) Typical master file maintenance changes are updating account balances, deleting unwanted records, and adding new records to a file.
D) The basic types of processing are classification, comparison, summarization and calculation.

Question 12

Which of the following is one of the most common processing activities?

A) Merging
B) Summarization
C) Comparison
D) Updating, or posting

Question 13

Which of the following statements is not correct?

A) The sales transaction file is used to update the customer master file.
B) The open customer invoice file holds data about incomplete transactions.
C) The customer master file is used to update the open customer invoice file.
D) The sales transaction file captures detailed sales transaction data in chronological order.

Question 14

What is a process activity that updates balances in a master file?

A) Classification
B) Calculation
C) Posting
D) Summarization

Question 15

Which of the following is necessary for printing of the sales journal?

A) Open customer invoice file and customer master file
B) Customer master file and cash receipts transaction file
C) Customer master file and sales transaction file
D) Sales transaction file and open customer invoice file

Question 16

Which of the following is (are) true regarding transactions?

A) May be reported individually
B) May be reported as part of aggregate information
C) May be reported to external auditors only
D) A & B
E) B & C D

Question 17

Which of the following processes requires the direct intervention by users?

A) Updating and posting
B) File maintenance
C) Calculation
D) Summarization

Question 18

What are the primary activities of an accounting information system?

A) Input (capture) data
B) Store data
C) Process data
D) Output (communicate) data
E) All of the above are primary activities. E

Question 19

What is an example of a transaction?

A) A meeting between middle and upper-level managers
B) Deciding on corporate strategy
C) Depreciation of equipment
D) Taking action on a customer for non-payment of goods/services

Question 20

Which of the following activities involve an interface between users and the accounting system?

A) Input and process
B) Process and store
C) Input and output
D) Output and process

Question 21

Which is not true about the financial process?

A) Revenue, purchasing, and production events are initially recorded in the financial process.
B) Transaction data that are captured in other processes are transferred to the financial process.
C) Some transactions are originally recorded in the financial process.
D) Some end-of-period adjustments are required in the financial process.

Question 22

Which of the following statements regarding subsystems is not true?

A) The components of a system are referred to as subsystems.
B) A subsystem has its own data inputs, processes, storage, and outputs.
C) Subsystems generally operate independently of each other.

Question 23

The payroll subsystem can be a part of which business process?

A) Revenue
B) Expense
C) Inventory
D) Purchasing

Question 24

Which of the following statements regarding subsystems is true?

A) Subsystems are defined in the broadest terms.
B) The same subsystems are present in all types of organizations.
C) Subsystems perform well-defined transaction-processing functions.
D) Subsystems are referred to as "logical branches" in accounting software packages.

Question 25

It is possible for a transaction to be initiated by programmed instructions in a computer program.

Question 26

The following block diagram shows the integration of some accounting subsystems and an overview of an accounting information system. Use this diagram to answer the next two questions.


-What is the subsystem labeled (2)?

A) General ledger
B) Cost accounting
C) Customer invoicing
D) Inventory management

Question 27

What framework has proved to be a successful attempt to unify the elements and processes that are common to all accounting systems?

A) Business processes
B) Accounting data base
C) Hierarchies
D) Road maps

Question 28

Which of the following is not a subsystem in the revenue process?

A) Shipping
B) Receiving
C) Customer invoicing
D) Cash receipts

Question 29

Which of the following is a decision support activity?

A) The sales subsystem
B) The accounts receivable subsystem
C) The sales analysis subsystem
D) The shipping subsystem

Question 30

Which of the following files is not used in the customer invoicing subsystem?

A) Sales transaction file
B) Open sales order file
C) Customer master file
D) Open customer invoice file

Question 31

What are information formats called?

A) Paper reports
B) Activity requirements
C) General ledger summaries
D) Forms

Question 32

Which subsystem is responsible for accounting for the raw materials, finished goods, and merchandise inventories?

A) Production control
B) Sales order processing
C) Inventory management
D) Purchase order processing

Question 33

Which of the following subsystems are in the inventory process?

A) Production control, inventory management, cost accounting
B) Inventory management, cost accounting, accounts payable
C) Inventory management, cost accounting, accounts receivable
D) Production control, receiving, inventory management

Question 34

What is an example of a status report?

A) Income statement
B) List of all sales transactions for a certain period
C) Report on effectiveness of controls in the system
D) Report of the estimated purchases for the year

Question 35

A transaction's final resting place ordinarily is in an archive file.

Question 36

Assume that data from the purchases transaction file have been transferred to the general journal transaction file. The general journal transaction file has been used to update the general ledger master file. What is the result if a trial balance is prepared at this time?

A) Inventory shows an increase, and accounts payable shows a decrease
B) Inventory shows a decrease, and accounts payable shows an increase
C) Inventory shows an increase, and accounts payable shows an increase
D) Inventory shows no change, and accounts payable shows no change

Question 37

The sales analysis subsystem refers to what activity and supports which business process?

A) Shows current sales information; supports the financial process.
B) Matches sales with accounts receivable information; supports the revenue process.
C) Analyzes historical sales data; supports the revenue process.
D) Matches sales with accounts receivable information; supports the financial process

Question 38

Which of the following are subsystems of the inventory process in both manufacturing and service organizations?

A) Production, control, cost accounting
B) Production, control, inventory management
C) Cost accounting, inventory management
D) Cost accounting, inventory management, production control

Question 39

The following block diagram shows the integration of some accounting subsystems and an overview of an accounting information system. Use this diagram to answer the next two questions.


-What is the subsystem labeled (5)?

A) Receiving
B) General ledger
C) Shipping
D) Customer invoicing

Question 40

Assume a firm has paid an invoice for merchandise it purchased earlier and the appropriate data have been entered in the cash disbursements transaction file. Data from the cash disbursements transaction file have been transferred to the general journal transaction file. What is the result if a trial balance is prepared at this point?

A) Accounts payable shows a decrease, and cash shows an increase
B) Accounts payable shows no change and cash shows no change
C) Accounts payable shows a decrease, and cash shows a decrease
D) Accounts payable shows an increase, and cash shows an increase

Question 41

File maintenance is a routine process that occurs at specific time intervals.

Question 42

Only one status or activity report may be produced from a single file formatted to meet a specific need.

Question 43

The transaction data in the general journal transaction file are used to update the customer master file.

Question 44

All transaction data are classified by the account they affect.

Question 45

The four business processes in an accounting information system are revenue, purchasing, inventory, and investment.

Question 46

The cash receipts transaction file is used to update the open customer invoice file and the

Question 47

A new account is added to the Chart of Accounts through the sales transaction file.

Question 48

A cash sale is recorded in only the cash receipts transaction file.

Question 49

Any organization that provides goods or services on demand requires a sales subsystem.

Question 50

One of the subsystems of the purchasing process is receiving.

Question 51

The income statement and the balance sheet are prepared from data in the general ledger master file.

Question 52

Output from the accounting system is reserved for internal users only.

Question 53

One type of processing in an accounting system is merging.

Question 54

The business processes comprise the most specific level of subsystems in an accounting information system.

Question 55

More than one status or activity report may be produced from a single file, each formatted to meet a different need.

Question 56

Periodically, data in the sales transaction file and the cash receipts transaction file are summarized and transferred to the general journal transaction file.

Question 57

Each of the accounting subsystems, for example, purchase order processing, receiving, vendor invoicing, cash disbursements, is a stand-alone system.

Question 58

When a user enters a customer code in the sales transaction screen, the user also enters the customer name.

Question 59

Status reports focus on the balances recorded in the transaction files after updating has been completed.

Question 60

The two interfaces between an accounting system and its users are the outputs and the general ledger file.

Question 61

What are the major activities of an accounting information system?

Question 62

Name, explain, and give examples of four different ways that data are processed.

Question 63

Name the subsystems of the inventory process in a manufacturing organization.

Question 64

What is one of the most common errors made when inputting data?

Question 65

Identify three subsystems of the business processes you described in the previous question.

Question 66

Name one accounting system activity other than input data.

Question 67

List three of the four processes covered by an accounting information system. Choose one of those processes, and list two examples of subsystems (modules) that might be included in that process.

Question 68

Name three business processes.

Question 69

What are the support activities of an accounting information system?

Question 70

Name and give a brief description of two business processes.

Question 71

What are the two major types of reports that are produced by an accounting information system?

Question 72

What are the support activities of an accounting information system?