Question 1

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

Accepted Answer

The source code field of a GL entry typically indicates the origin of the transaction (e.g., sales, purchases) rather than serving as a basis for developing a chart of accounts, which is a structured list of all the financial accounts in the general ledger, organized by asset, liability, equity, revenue, and expense categories.

Question 2

The financial reporting officer is primarily responsible for budgeting.

Accepted Answer

The financial reporting officer is primarily responsible for preparing financial reports, analyzing financial data, and providing financial recommendations to management. Budgeting may be a part of their responsibilities but it is not their primary responsibility.

Question 3

XBRL 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 that can be easily read by almost any software package and can be easily searched by Web browsers.

Accepted Answer

XBRL is an XML-based language that uses a set of tags to standardize the presentation of business reporting information, allowing for easy reading by software and searching through web browsers.

Question 4

A performance report compares actual results with budgeted expectations.

Accepted Answer

A performance report is a document that compares actual results with budgeted expectations, highlighting variances and identifying areas of success and areas for improvement.

Question 5

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

Accepted Answer

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

Question 6

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.

Accepted Answer

This statement accurately describes what business intelligence is. It involves using various tools and technologies to analyze data in order to make informed decisions.

Question 7

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

Accepted Answer

The main purpose of a chart of accounts is to provide a systematic and organized way of classifying and storing financial information. It breaks down a company's financial transactions into categories and subcategories that facilitate financial reporting and analysis. By doing so, it enables managers, investors, and other stakeholders to understand the financial health of the company and make informed decisions. Therefore, it adds structure to the classification of financial information.

Question 8

The intent of the Sarbanes-Oxley Act of 2002 is to protect the company by improving the accuracy and reliability of all corporate disclosures made pursuant to the securities laws.

Accepted Answer

The answer of The intent of the Sarbanes-Oxley Act of...

Question 9

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

Accepted Answer

The answer of The business reporting process comprises accumulating, classifying,...

Question 10

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.

Accepted Answer

The general ledger process primarily focuses on recording and summarizing financial transactions of a business, ensuring accuracy and completeness for internal management and external reporting. The preparation of external financial statements and ensuring conformity to GAAP are part of the financial reporting process, which uses information from the general ledger. Generating web-based forms and supporting business reports, while they may utilize data from the general ledger, are not its primary concerns.

Question 11

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

Accepted Answer

A feeder process is indeed a business process that collects business event data and communicates it to the GL for processing.

Question 12

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

Accepted Answer

The managerial reporting officer is not responsible for reporting GAAP financial statements. Their role is to provide internal management reports and analysis to assist with decision-making. This responsibility falls on the company's accounting department and external auditors.

Question 13

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

Accepted Answer

The answer of As we move toward an enterprise system...

Question 14

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

Accepted Answer

A journal voucher is a document used internally within an organization to notify the general ledger (GL) to make an accounting entry. It includes details such as the account name, amount, and description of the transaction being recorded. The GL clerk then uses the information from the journal voucher to create the appropriate accounting entry in the company’s financial records.

Question 15

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

Accepted Answer

XML (eXtensible Markup Language) is a widely used markup language for encoding documents in a format that is both human-readable and machine-readable. It is designed to be versatile and customizable, allowing developers to define their own tags to represent data in a way that makes sense for their specific application or use case. XML is commonly used for data interchange between software applications over the Internet, and it is supported by a wide range of programming languages and platforms.

Question 16

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

Accepted Answer

Performance reports are a key component of responsibility accounting/reporting systems, which enable managers to monitor the performance of individual units or departments within an organization. These reports provide important information about the financial and operational performance of these units, making it easier for managers to identify areas where improvements are needed and take action to improve overall performance.

Question 17

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.

Accepted Answer

The four components of the balanced scorecard methodology are (1) financial, (2) customer, (3) internal business processes, and (4) learning and growth (innovation and improvement activities), not vendors.

Question 18

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

Accepted Answer

The statement accurately describes the GL/BR process as an integrated system designed to perform operations and information system functions to produce accounting reports.

Question 19

The financial statements contain detailed information of all of an organization's business event data.

Accepted Answer

Financial statements summarize the financial performance and position of an organization, but they do not contain detailed information of all business event data.

Question 20

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

Accepted Answer

The answer of The controller notifies the business reporting process...

Quiz 16: The General Ledger and Business Reporting GLBR Process