Deck 2: Introduction to Transaction Processing

Question 1

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

Answer 1

False

Question 2

Data flow diagrams represent the physical system.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

The portion of the monthly bill from a credit card company is an example of a turn-around document.

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

The box symbol represents a temporary file.

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

Batch processing of non-critical accounts improves operational efficiency.

Question 25

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

Question 26

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

A) Date
B) account number
C) User
D) customer number

Question 27

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

Question 28

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

Question 29

The order of the entries made in the ledger is by

A) transaction number
B) account number
C) Date
D) User

Question 30

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 31

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

Question 32

Which system is not part of the expenditure cycle?

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

Question 33

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

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

Question 34

Which account is least likely to have a subsidiary ledger?

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

Question 35

Which of the following is a turn-around document?

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

Question 36

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

Question 37

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 38

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

Question 39

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

Question 40

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 41

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 42

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 43

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 44

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 45

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 46

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 47

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 48

Which symbol represents a manual operation?

A)
B)
C)
D)

Question 49

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 50

An entity is

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

Question 51

Which symbol represents accounting records?

A)
B)
C)
D)

Question 52

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 53

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 54

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 55

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 56

Which symbol represents an on-page connector?

A)
B)
C)
D)

Question 57

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 58

Which of the following is an archive file?

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

Question 59

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

A) source document
B) turn-around document
C) master document
D) product document

Question 60

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 61

Which symbol represents a decision?

A)
B)
C)
D)

Question 62

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

A)
B)
C)
D)

Question 63

______________________________________ are the two data processing approaches used in modern systems.

Question 64

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 65

List two of the three transaction cycles.

Question 66

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) credit checking

Question 67

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 are true statements

Question 68

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 are true statements

Question 69

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 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

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 72

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

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

Question 73

Documents that are created at the beginning of the transaction are called __________________________.

Question 74

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 75

Which accounting application is least suited to batch processing?

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

Question 76

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 77

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

Question 78

Which symbol represents a document?

A)
B)
C)
D)

Question 79

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 80

Give a specific example of a turn-around document.