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 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 3

XML is an XBRL-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

XML (eXtensible Markup Language) is a markup language used to encode documents in a format that is both human-readable and machine-readable. XBRL (eXtensible Business Reporting Language) is a specific application of XML designed for business and financial data reporting. XML itself is not based on XBRL; rather, XBRL is based on XML.

Question 4

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 5

A performance report compares actual results with budgeted expectations.

Accepted Answer

A performance report is a tool used to compare actual results with the budgeted expectations. It provides information on how well an organization is meeting its goals and objectives and helps in identifying areas where improvements can be made.

Question 6

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

Accepted Answer

A feeder process is a process that collects data and sends it to the GL for further processing.

Question 7

The intent of Sarbanes Oxley is to protect the company by improving the accuracy and reliability of all disclosures.

Accepted Answer

The answer of The intent of Sarbanes Oxley is to...

Question 8

The financial reporting officer is primarily responsible for budgeting.

Accepted Answer

The financial reporting officer is primarily responsible for financial reporting and ensuring the accuracy and integrity of financial information. Budgeting may be a part of their responsibilities, but it is not their primary responsibility.

Question 9

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 indeed a method for tagging data in a customizable way, facilitating data transmission and interpretation over the Internet.

Question 10

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 11

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...

Question 12

The GL/BR process is an interacting structure of people, equipment, methods, and controls that is designed to accomplish both operations and information system functions.

Accepted Answer

The statement accurately describes the GL/BR process as an integrated system that combines operational and information system functions through various elements, including people, equipment, methods, and controls. Therefore, the answer is true.

Question 13

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

Accepted Answer

A journal voucher is an internal document used to notify the GL to make an accounting entry. It is usually prepared by an accountant or a bookkeeper and serves as a supporting document for the source transaction. The GL uses the journal voucher to make the necessary adjustments to the accounts and ensure that the financial statements are accurate and complete.

Question 14

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 15

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

Accepted Answer

Performance reports are often used in a responsibility accounting system, where managers are accountable for specific areas of a company's operations. These reports help evaluate how well managers are meeting their responsibilities and can be used to make decisions about allocating resources and setting goals.

Question 16

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

Accepted Answer

The purpose of a chart of accounts is to provide a consistent framework for organizing financial transactions and information, allowing for accurate and efficient reporting and analysis. It helps to categorize and group financial data into specific accounts, making it easier to identify and track specific transactions and balances. Therefore, it's true that the driving force in constructing a chart of accounts is to add structure to the classification of financial information.

Question 17

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

Accepted Answer

The general ledger master data does contain summarized information of all business event data, making it a central source of financial information for the organization.

Question 18

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 19

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 20

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

Business intelligence refers to the use of various tools and technologies, such as data warehouses, statistical analytics, and decision support systems, to enable managers and decision makers to make informed decisions based on insights derived from large and complex data sets.

Quiz 16: General Ledger and Business Reporting Glbr Process