Deck 3: Introduction to Accounting

Question 1

Which element is not a part of the typical company code data in general ledger accounts?

A)Tax-related data
B)Field status groups
C)Line item display
D)Reconciliation account data
E)None of the above

Answer 1

E

Question 2

Which process is used to manage money owed by customers for goods and services purchased from the company?

A)General ledger accounting
B)Accounts receivable accounting
C)Fixed asset accounting
D)Bank ledger accounting
E)All of the above

Answer 2

B

Question 3

Which term represents the costs associated with creating and selling products and services?

A)Assets
B)Expenses
C)Liabilities
D)Equity
E)None of the above

Answer 3

B

Question 4

Which of the following is a key process in financial accounting?

A)Sales order processing
B)Accounts receivable accounting
C)Credit management
D)Income verification
E)All of the above

Question 5

____________ is concerned with recording the financial impacts of business processes as they are executed.

A)Management accounting
B)Financial accounting Fl)
C)Controlling CO)
D)Bank ledger accounting
E)None of the above

Question 6

Which of the following is used to implement multiple ledgers and use each ledger for different purposes?

A)Financial accounting document
B)Subsidiary ledger
C)Sub-ledger
D)Parallel Accounting
E)None of the above

Question 7

Which term is a general ledger account that consolidates data from a group of related sub-ledger accounts?

A)Subsidiary ledger
B)Sub-ledger
C)Reconciliation account
D)Line item display
E)None of the above

Question 8

Which of the following records the impact of a transaction step on financial accounting?

A)Financial accounting document
B)Parallel accounting document
C)Sub-ledger
D)Subsidiary ledger
E)None of the above

Question 9

Which term represents what a company owns,such as cash,inventory of materials,and buildings?

A)Liabilities
B)Equity
C)Assets
D)Revenues
E)None of the above

Question 10

Which term represents what a company owes to others,including money owed to vendors and loans from financial institutions?

A)Liabilities
B)Equity
C)Assets
D)Revenues
E)None of the above

Question 11

Which process is concerned with recording data associated with bank statements?

A)Bank ledger accounting
B)Fixed asset accounting
C)General ledger accounting
D)Accounts receivable accounting
E)None of the above

Question 12

____________ are internal divisions of an enterprise that are used to define areas of responsibility or to meet the external reporting requirements of an enterprise segment.

A)Cost centers
B)Depreciation areas
C)Business areas
D)Sub-ledgers
E)None of the above

Question 13

Which term refers to an ordered listing of accounts that comprise a company's general ledger?

A)General ledger
B)Balance sheet
C)Bank ledger
D)Chart of accounts COA)
E)None of the above

Question 14

Which of the following is not a mode of acquiring an asset for a company?

A)Acquiring internally via the production process
B)Acquire from a vendor using the purchasing process
C)Acquire from a vendor without using the purchasing process
D)Selling equipment
E)Acquiring without a vendor

Question 15

Which of the following best describes the operative chart of accounts?

A)Contains the operational accounts that are used to record the financial impact of an organization's day-to-day transactions
B)Used to enable companies to meet special country-specific reporting requirements
C)Contains accounts that are used by multiple companies to consolidate their financial reporting
D)Contains only accounts payable transactions
E)Contains only accounts receivable transaction

Question 16

Which term represents the monies a company earns by selling its products and services?

A)Liabilities
B)Assets
C)Expenses
D)Revenue
E)Equity

Question 17

Which type of asset has a physical form?

A)Master asset
B)Tangible asset
C)Informal asset
D)Intangible asset
E)None of the above

Question 18

Which of the following is used to report data needed to meet legal and regulatory requirements?

A)Assets
B)Equity
C)Tangible document
D)Financial statement
E)None of the above

Question 19

Which type of asset has a non-physical form?

A)Master asset
B)Tangible asset
C)Informal asset
D)Intangible asset
E)None of the above

Question 20

All of the following are transaction types that occur during the life of an asset except ___________ .

A)Acquisition
B)Depreciation
C)Allocation
D)Retirement

Question 21

What are the most common transaction types that occur during the life of an asset?

A)Production
B)Allocation
C)Acquisition
D)Depreciation
E)Retirement

Question 22

From which of the following can financial statements be generated?

A)Operative chart of accounts
B)Country-specific chart of accounts
C)Revenue accounts
D)Assets
E)Liability accounts

Question 23

A cost center: a)Absorbs costs
B)Can be associated with a department
C)Is similar to a cost object
D)Is associated with locations where costs are incurred

Question 24

Balance sheet accounts are grouped into which of the following categories?

A)Revenue
B)Assets
C)Liabilities
D)Equity
E)Expenses

Question 25

What are the primary ways in which an asset can be acquired?

A)Internally by production
B)Internally by inventory tracking
C)Externally by vendor
D)Externally without a vendor
E)By asset liquidation

Question 26

What does the COA data include? a)Client segment
B)Storage location segment
C)Plant segment
D)Company code segment

Question 27

Tangible assets can include which of the following?

A)Computers
B)Bonds
C)Production Machinery
D)Real Estate
E)Mortgage

Question 28

Which of the following statements concerning the leading ledger are true? a)It is a type of sub-ledger
B)Global accounting principles are consolidated into it
C)Having a leading ledger is optional
D)All transaction data are posted to it

Question 29

Financial statements can be generated from which of the following?

A)Operative COA
B)Country-specific COA
C)Both operative and country-specific COAs
D)Neither operative nor country-specific COAs

Question 30

Which of the following are types of chart of accounts?

A)Operative COA
B)Country specific COA
C)Active COA
D)Group COA

Question 31

Which of the following are common depreciation areas used in the US?

A)Book depreciation
B)Cost accounting depreciation
C)Legal depreciation
D)Special depreciation
E)Physical depreciation

Question 32

Which of the following statements concerning reconciliation accounts are true? a)Reconciliation account for customers is accounts payable
B)Reconciliation account for customers is accounts receivable
C)Reconciliation account for vendors is accounts payable
D)Reconciliation account for vendors is accounts receivable

Question 33

An organization can possess which of the following types of assets?

A)Tangible
B)Intangible
C)Financial
D)Economic
E)Virtual

Question 34

Reporting in financial accounting is broadly divided into which of the following two categories?

A)Posting goods issue
B)Displaying account information
C)Generating financial statements
D)Recording transactions
E)Automatic posting of accounts

Question 35

What is true about a business area?

A)It is a internal division of an enterprise
B)It helps management monitor performance
C)It is used for external reporting
D)It is associated with one company code

Question 36

Which attributes are present in the FI document header? a)Amount
B)Document type
C)Posting date
D)Currency
E)Posting key

Question 37

Which of the following statements regarding reconciliation accounts are not true? a)Data are posted directly into them
B)Data are automatically posted into them after they are posted to the corresponding sub-ledger
C)The reconciliation account includes the sum of the postings of the sub-ledgers.d)None of the above

Question 38

Which attributes are present in the FI document items? a)Amount
B)Document type
C)Posting date
D)Currency
E)Posting key

Question 39

The COA segment of the COA data includes which of the following? a)Account currency
B)Account number
C)Account group
D)Short text

Question 40

Which of the following does the balance sheet include? a)Revenue
B)Expenses
C)Assets
D)Liabilities

Question 41

Account currency determines the currency in which all the transactions are recorded.

Question 42

Accounts payable accounting is not associated with the procurement process.

Question 43

Financial accounting Fl)is concerned with recording the financial impacts of business processes as they are executed.

Question 44

When does a debit take place? a)When assets and expenses decrease
B)When assets and expenses increase
C)When revenue and liabilities decrease
D)When revenue and liabilities increase

Question 45

In accounts receivable,which general ledger accounts are affected? a)Accounts receivable reconciliation
B)Sales revenue
C)Bank
D)Supplies expense

Question 46

Assets are monies the company earns by selling its products and services.

Question 47

A reconciliation account records the impact of a transaction step on financial accounting.

Question 48

Accounting processes are broadly divided into two main categories: financial accounting and management accounting.

Question 49

Liabilities are what the company owns,such as cash,land,and buildings.

Question 50

In accounts payable,which general ledger accounts are affected? a)Accounts payable reconciliation
B)Vendor
C)Supplies expense
D)Bank

Question 51

The general ledger is used to record the financial impacts of business process steps.

Question 52

When does a credit take place? a)When assets and expenses decrease
B)When assets and expenses increase
C)When revenue and liabilities decrease
D)When revenue and liabilities increase

Question 53

Balance sheet accounts are grouped into: a)Assets
B)Liabilities
C)Equity
D)Revenue

Question 54

Business areas are external departments of an enterprise that are used to define areas of responsibility or to meet the internal requirements of a division.

Question 55

The balance sheet is a snapshot of the organization at a point in time.

Question 56

A segment is a division of an enterprise for which management monitors performance separately from other segments.

Question 57

Management accounting,or controlling CO),is intended primarily for audiences outside the organization.

Question 58

A list of accounts that can be included in a general ledger is called master data.

Question 59

A chart of accounts COA)is an ordered listing of accounts that comprise a company's general ledger.

Question 60

Expenses are what the company owes to others,including money owed to vendors and loans from financial institutions.

Question 61

Accounts payable accounting is concerned with vendors.

Question 62

A financial accounting document is a general ledger account that consolidates data from a group of sub-ledger accounts,such as customers and vendors.

Question 63

Tangible assets are non-physical items such as trademarks and patents.

Question 64

Intangible assets are physical items such as buildings,machinery,and computers.

Question 65

Reporting within financial accounting is divided into two categories: generating financial statements and displaying account information.

Question 66

Financial accounting is affected any time money either leaves or comes into the company.

Question 67

Financial statements can be generated for different organizational levels including one or more company codes and business areas.

Question 68

Accounts receivable accounting is concerned with customers.

Question 69

An increase in revenue or liability results in a debit posting.

Question 70

An increase in an asset account or an expense account results in a credit posting.

Question 71

Parallel accounting consists of implementing multiple ledgers and using each ledger for different purposes.

Question 72

Within accounts receivable accounting,when a payment is made the bank account is debited and the appropriate customer account is credited.