Deck 2: Introduction to Transaction Processing

Question 1

The general journal is used to record recurring transactions that are similar in nature.

Answer 1

False

Question 2

Auditors may prepare program flowcharts to verify the correctness of program logic.

Answer 2

True

Question 3

The most significant characteristic of direct access files is access speed.

Answer 3

True

Question 4

Batch processing is best used when timely information is needed because this method processes data efficiently.

Question 5

A control account is a general ledger account which is supported by a subsidiary ledger.

Question 6

Batch processing systems can store data on direct access storage devices.

Question 7

System flowcharts represent the input sources,programs,and output products of a computer system.

Question 8

Data flow diagrams represent the physical system.

Question 9

An inverted triangle with the letter "N" represents a file in "name" order.

Question 10

Selecting a specific record from a master file containing millions of records requires a direct access file environment.

Question 11

Document flowcharts are used to represent systems at different levels of detail.

Question 12

The portion of the monthly bill that the customer returns to the credit card company with the payment is an example of a turnaround document.

Question 13

Program flowcharts depict the type of media being used (paper,magnetic tape,or disks)and terminals.

Question 14

Directing work-in-process through its various stages of manufacturing is part of the conversion cycle.

Question 15

Program flowcharts are used to describe the logic represented in system flowcharts.

Question 16

System flowcharts are often used to depict processes that are handled in batches.

Question 17

Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems.

Question 18

The box symbol represents a temporary file.

Question 19

Real-time processing is used for routine transactions in large numbers.

Question 20

The process of acquiring raw materials is part of the conversion cycle.

Question 21

Batch processing of non-critical accounts improves operational efficiency.

Question 22

In a flat-file system,files are easily shared by users.

Question 23

Mnemonic codes are appropriate for items in either an ascending or descending sequence,such as the numbering of checks or source documents.

Question 24

The flat-file approach is most often associated with so-called legacy systems.

Question 25

To avoid deadlocks,batch processing is recommended for general ledger accounts.

Question 26

A ledger is organized by

A)transaction number
B)account number
C)date
D)user

Question 27

Which of the following is a turnaround document?

A)remittance advice
B)sales order
C)purchase order
D)payroll check

Question 28

Block codes restrict each class to a pre-specified range.

Question 29

The block code is the coding scheme most appropriate for a chart of accounts.

Question 30

Real-time processing in systems that handle large volumes of transactions each day can create operational inefficiencies.

Question 31

Which system is not part of the expenditure cycle?

A)cash disbursements
B)payroll
C)production planning/control
D)purchases/accounts payable

Question 32

The order of the entries made in the general journal is by

A)date
B)account number
C)user
D)customer number

Question 33

Operational inefficiencies occur because accounts common to many concurrent transactions need to be updated in real time.

Question 34

Batch processing of accounts common to many concurrent transactions reduces operational efficiency.

Question 35

In general,a special journal would not be used to record

A)sales
B)cash disbursements
C)depreciation
D)purchases

Question 36

A key feature of a database management system is that users are given access only to the information they need to perform their jobs.

Question 37

For a given field size,a system that uses alphabetic codes can represent far more situations than a system with that uses numeric codes.

Question 38

Which system produces information used for inventory valuation,budgeting,cost control,performance reporting,and make-buy decisions?

A)sales order processing
B)purchases/accounts payable
C)cash disbursements
D)cost accounting

Question 39

Sequential codes may be used to represent complex items or events involving two or more pieces of related data.

Question 40

Operational inefficiencies occur because accounts unique to many concurrent transactions need to be updated in real time.

Question 41

Which document is not a type of source document?

A)a sales order
B)an employee time card
C)a paycheck
D)a sales return receipt

Question 42

Which type of graphical documentation represents systems at different levels of detail?

A)data flow diagram
B)document flowchart
C)system flowchart
D)program flowchart

Question 43

A journal is used in manual accounting environments.What file is comparable to a journal in a computerized environment?

A)archive file
B)reference file
C)transaction file
D)master file

Question 44

Which symbol represents an on-page connector?

A)
B)
C)
D)

Question 45

All of the following can provide evidence of an economic event except

A)source document
B)turnaround document
C)master document
D)product document

Question 46

Which account is least likely to have a subsidiary ledger?

A)sales
B)accounts receivable
C)fixed assets
D)inventory

Question 47

System flowcharts

A)depict logical tasks that are being performed, but not who is performing them
B)illustrate the relationship between database entities in systems
C)represent relationships between key elements of both manual and computer systems
D)describe the internal logic of computer applications in systems

Question 48

An entity is

A)a physical resource
B)an event
C)an agent
D)all of the above are entities

Question 49

When determining the batch size,which consideration is the least important?

A)achieving economies by grouping together large numbers of transactions
B)complying with legal mandates
C)providing control over the transaction process
D)balancing the trade-off between batch size and error detection

Question 50

A(n)________ structure employs an algorithm that converts the primary key of a record directly into a storage address.

A)hashing
B)indexed
C)pointer
D)sequential

Question 51

Data flow diagrams

A)depict logical tasks that are being performed, but not who is performing them
B)illustrate the relationship between processes, and the documents that flow between them and trigger activities
C)represent relationships between key elements of the computer system
D)describe in detail the logic of the process

Question 52

Which of the following is an archive file?

A)an accounts payable subsidiary ledger
B)a cash receipts file
C)a list of approved suppliers
D)a file of accounts receivable that have been written off

Question 53

Subsidiary ledgers are used in manual accounting environments.What file is comparable to a subsidiary ledger in a computerized environment?

A)archive file
B)reference file
C)transaction file
D)master file

Question 54

The most important purpose of a turnaround document is to

A)serve as a source document
B)inform a customer of the outstanding amount payable
C)provide an audit trail for the external auditor
D)inform the bank of electronic funds deposits

Question 55

Both the revenue and the expenditure cycle can be viewed as having two key parts.These are

A)manual and computerized
B)physical and financial
C)input and output
D)batch and real-time

Question 56

In a computerized environment,a list of authorized suppliers would be found in the

A)master file
B)transaction file
C)reference file
D)archive file

Question 57

The type of transaction most suitable for real-time processing is

A)recording fixed asset purchases
B)recording interest earned on long-term bonds
C)adjusting prepaid insurance
D)recording a sale on account

Question 58

The type of transaction most suitable for batch processing is

A)airline reservations
B)credit authorization
C)payroll processing
D)adjustments to perpetual inventory

Question 59

In contrast to a real-time system,in a batch processing system

A)there is a lag between the time when the economic event occurs and the financial records are updated
B)relatively more resources are required
C)a greater resource commitment per unit of output is required
D)processing takes place when the economic event occurs

Question 60

In contrast to a batch processing system,in a real-time system

A)a lag occurs between the time of the economic event and when the transaction is recorded
B)relatively fewer hardware, programming, and training resources are required
C)a lesser resource commitment per unit of output is required
D)processing takes place when the economic event occurs

Question 61

Which accounting application is least suited to batch processing?

A)general ledger
B)vendor payments
C)sales order processing
D)payroll

Question 62

Which symbol represents accounting records?

A)
B)
C)
D)

Question 63

Which symbol represents a manual operation?

A)
B)
C)
D)

Question 64

A cardinality of 1:M indicates a

A)many to one connection
B)one to one connection
C)one to many connection
D)any of the above

Question 65

Operational efficiencies can be improved by

A)updating accounts both common and unique to many concurrent transactions in real time
B)updating accounts both common and unique to many concurrent transactions in batch mode
C)updating accounts unique to many concurrent transactions in real time and updating common accounts in batch mode
D)none of the above

Question 66

The most important advantage of an alphabetic code is that

A)meaning is readily conveyed to users
B)sorting is simplified
C)the capacity to represent items is increased
D)missing documents can be identified

Question 67

A file that stores data used as a standard when processing transactions is

A)a reference file
B)a master file
C)a transaction file
D)an archive file

Question 68

Sequential storage means

A)data is stored on tape
B)access is achieved through an index
C)access is direct
D)reading record 100 requires first reading records 1 to 99

Question 69

Which symbol represents a decision?

A)
B)
C)
D)

Question 70

The coding scheme most appropriate for a chart of accounts is

A)sequential code
B)block code
C)group code
D)mnemonic code

Question 71

List two of the three transaction cycles.

Question 72

A common use for sequential coding is

A)creating the chart of accounts
B)identifying inventory items
C)identifying documents
D)identifying fixed assets

Question 73

Which accounting application is best suited to batch processing?

A)general ledger
B)updating inventory reductions to the subsidiary ledger
C)sales order processing
D)payroll processing

Question 74

When a firm wants its coding system to convey meaning without reference to any other document,it would choose

A)an alphabetic code
B)a mnemonic code
C)a group code
D)a block code

Question 75

Operational inefficiencies occur because

A)accounts both common and unique to many concurrent transactions need to be updated in real time
B)accounts common to many concurrent transactions need to be updated in real time
C)accounts unique to many concurrent transactions need to be updated in real time
D)none of the above

Question 76

Which symbol represents a magnetic tape (sequential storage device)?

A)
B)
C)
D)

Question 77

Which symbol represents a document?

A)
B)
C)
D)

Question 78

The characteristics that distinguish between batch and real-time systems include all of the following except

A)time frame
B)resources used
C)file format
D)efficiency of processing

Question 79

Real-time processing would be most beneficial in handling a firm's

A)fixed asset records
B)retained earnings information
C)merchandise inventory
D)depreciation records

Question 80

The most important advantage of sequential coding is that

A)missing or unrecorded documents can be identified
B)the code itself lacks informational content
C)items cannot be inserted
D)deletions affect the sequence