Question 1

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

This statement accurately describes the GL/BR process as a system that combines operational and information functions to generate accounting and other reports.

Question 2

A performance report compares actual results with budgeted expectations.

Accepted Answer

A performance report typically includes a comparison of actual results with budgeted expectations, as well as an analysis of variances and explanations for any significant differences.

Question 3

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

Accepted Answer

False

Question 4

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

Accepted Answer

The statement correctly defines a feeder process as a process that gathers event data to be processed within the GL.

Question 5

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 6

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

Accepted Answer

The chart of accounts provides a systematic way of organizing financial information and helps to ensure consistency in financial reporting. It allows for easy categorization of transactions and facilitates the preparation of financial statements.

Question 7

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 8

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

This statement is true. XML (Extensible Markup Language) uses tags to label data and make it easy to understand and exchange between different software applications on the Internet.

Question 9

The financial reporting officer is primarily responsible for budgeting.

Accepted Answer

While the financial reporting officer may play a role in budgeting, their primary responsibility is to prepare and distribute financial reports to stakeholders to provide transparency and accountability for the organization's financial performance.

Question 10

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 involves the use of various technologies to analyze data from data warehouses and make informed decisions.

Question 11

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

Accepted Answer

The general ledger master data contains summarized information of all of an organization's business event data, such as accounts payable, accounts receivable, and cash transactions. This data is used to generate financial statements and reports for internal and external stakeholders.

Question 12

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 13

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 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 to notify the GL (General Ledger) to make an accounting entry. It is an internal source document and is usually prepared by an accountant or bookkeeper.

Question 15

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 16

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 indeed an XML-based language that uses tags to unify business reporting information in a standardized format that is easily readable and searchable.

Question 17

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

Accepted Answer

Performance reports are typically used within a responsibility accounting system to evaluate the performance of individuals, departments, or other units within an organization. This helps managers to better understand how resources are being used and how performance can be improved in specific areas.

Question 18

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 financial, customer, internal business processes, and learning and growth activities. Vendors are not specifically included as a component.

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,and recording...

Question 20

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.

Quiz 16: The General Ledger and Business Reporting Glbrprocess