Question 1

Which of the following is the appropriate format for an element in XBRL? A) 40000 B) 40000 C) Inventories:40000:/Inventories D)

Accepted Answer

Option A is the correct format for an element in XBRL. It uses the angle brackets to enclose the element name, followed by the value of the element, and close the element using the angle brackets with a forward slash before the element name. Option B is incorrect as it does not close the element correctly, while options C and D use a different format that is not recognized by XBRL.

Question 2

Numbers that should be used for unique identifiers for coding an audit trail are pre- numbered documents that represent the initiation of a transaction and numbers of externally generated documents.

Accepted Answer

Unique identifiers for an audit trail should be internally generated to ensure control and traceability, rather than relying solely on pre-numbered or externally generated documents.

Question 3

What is the advantage of extensible business reporting language (XBRL) over extensible markup language (XML)?
A) XBRL employs standardized tags.
B) XBRL is objective.
C) XBRL is independent.
D) XBRL allows the user to define the tags.

Accepted Answer

XBRL uses standardized tags which allows for more consistent and accurate reporting, whereas XML allows the user to define their own tags which can lead to inconsistencies and errors.

Question 4

Which of the following identifies the organization that maintains the definitions of elements used in XBRL?
A) Namespace
B) Taxonomy
C) Element
D) Instance document

Accepted Answer

The answer of Which of the following identifies the organization...

Question 5

What is a document that has been tagged according to the rules of XBRL?
A) Extensible document
B) Interchange document
C) Instance document
D) X.12 document

Accepted Answer

An instance document is a document that has been tagged according to the rules of XBRL. It contains all the financial data that needs to be reported using XBRL. Option A is not a term used in XBRL, Option B is not specific to XBRL, and Option D refers to a different standard.

Question 6

Generally, the less frequently accounting data are reported, the better.

Accepted Answer

Less frequent reporting of accounting data allows for more time to gather and verify the data, resulting in higher quality and accuracy.

Question 7

Concise reports contain only physical measures.

Accepted Answer

Concise reports can include both physical and non-physical measures, but they are focused on presenting information in a clear and concise manner.

Question 8

Generally, the more frequently accounting data are reported, the better.

Accepted Answer

More frequent reporting can lead to information overload and may not necessarily improve decision-making. It can also increase costs and administrative burden.

Question 9

Which of the following statements is correct regarding extensible business reporting language (XBRL)?
A) XBRL avoids errors by eliminating the need to reenter data.
B) XBRL is equivalent to hypertext markup language (HTML).
C) XBRL does NOT require the use of tags.
D) XBRL was developed by a single company.

Accepted Answer

XBRL enhances accuracy and efficiency by eliminating the need for data re-entry, reducing mistakes that can occur when inputting data. Option B is incorrect because XBRL and HTML are two entirely different markup languages, and Option C is false since XBRL works on tagged data, which is the purpose of the language. Finally, XBRL is an open standard invented by a group of companies and regulators.

Question 10

Production managers usually prefer the use of financial measure of performance over physical measures of performance in reports that cover a short period of time.

Accepted Answer

Financial measures of performance are more commonly used for long-term evaluations, while physical measures (such as units produced, machine downtime, etc.) are often preferred for short-term operational monitoring and decision-making by production managers.

Question 11

Numbers that should be used for unique identifiers for coding an audit trail are prenumbered documents that represent the completion of a transaction and numbers of internally generated documents.

Accepted Answer

Prenumbered documents are already unique and sequential, providing a reliable way to track transactions. Additionally, internally generated documents can also be assigned unique identifiers to ensure their traceability in an audit trail.

Question 12

Receipt of a sales order could be used for event coding in accounting information systems.

Accepted Answer

Receipt of a sales order can trigger various events in accounting information systems, such as updates to inventory records, creation of invoices, and recording of sales revenue. Therefore, it can be useful for event coding purposes.

Question 13

Extensible business reporting language (XBRL) has which of the following characteristics?
A) XBRL allows for reliable and automatic exchange of financial information across all software formats.
B) XBRL essentially is hypertext markup language (HTML) for financial data and t therefore is basically the same as HTML.
C) XBRL does NOT require the use of tags.
D) XBRL was developed by a single company, whereas HTML was developed by a consortium of many companies, government agencies, and organizations.

Accepted Answer

XBRL allows for reliable and automatic exchange of financial information across all software formats. XBRL is designed specifically for financial reporting, unlike HTML which is designed for general web pages. XBRL uses tags to provide standardized descriptions of financial data, enabling consistent analysis and comparison of data across different organizations, sectors, and countries.

Question 14

Which of the following computer languages would best support the activity of identifying the balances of the cash and cash equivalent accounts of several companies and extracting them to an electronic spreadsheet for analysis?
A) Extensible markup language (XML)
B) Extensible business reporting language (XBRL)
C) Electronic data gathering and retrieval (EDGAR)
D) Hypertext markup language (HTML)

Accepted Answer

Extensible business reporting language (XBRL) is specifically designed for financial reporting and analysis, allowing for easy extraction and comparison of financial data. It would be the best language for identifying and analyzing cash and cash equivalent balances across multiple companies.

Question 15

What are dictionaries of element names that represent financial report concepts?
A) Namespaces
B) Taxonomies
C) Elements
D) Instance documents

Accepted Answer

Dictionaries of element names that represent financial report concepts are referred to as taxonomies.

Question 16

Effective exception reporting requires the ability to select records based on the similarities between an account's current balance and its prior year's balance.

Accepted Answer

Effective exception reporting typically focuses on identifying anomalies or deviations from expected patterns, which may not necessarily involve comparing an account's current balance to its prior year's balance. It can include a variety of criteria and thresholds beyond just balance comparisons.

Question 17

A purchase order number would not be suitable as a reference identifier in an audit trail.

Accepted Answer

A purchase order number may be used to track a specific purchase transaction, but it would not provide enough information or detail for auditing purposes. A proper reference identifier in an audit trail should be able to trace the transaction through various stages, including approvals, authorizations, and payments, while capturing relevant information like date, time, and parties involved.

Question 18

Most accounting software packages provide the capability for exception reporting.

Accepted Answer

The answer of Most accounting software packages provide the capability...

Question 19

Which of the following is/are TRUE with regard to XBRL?
A)XBRL has tags which provide financial information in a context.
B)XBRL adds the ability to search across platforms.
C)XBRL facilitates the handling of financial data and reduces the potential for errors.
D) All of these are true statements about XBRL.

Accepted Answer

All of the statements A, B, and C are true regarding XBRL. The tags in XBRL provide financial information in a context, which facilitates searching and organizing financial data. The use of XBRL reduces the potential for errors in financial data handling.

Question 20

Record sequencing is the process of placing data in a specified order.

Accepted Answer

Record sequencing is indeed the process of placing data in a specified order.

Quiz 5: Reporting Process, Coding Methods, and Audit Trails

Which of the following is the appropriate format for an element in XBRL?

Numbers that should be used for unique identifiers for coding an audit trail are pre- numbered documents that represent the initiation of a transaction and numbers of externally generated documents.

What is the advantage of extensible business reporting language (XBRL) over extensible markup language (XML) ?

Which of the following identifies the organization that maintains the definitions of elements used in XBRL?

What is a document that has been tagged according to the rules of XBRL?

Generally, the less frequently accounting data are reported, the better.

Concise reports contain only physical measures.

Generally, the more frequently accounting data are reported, the better.

Which of the following statements is correct regarding extensible business reporting language (XBRL) ?

Production managers usually prefer the use of financial measure of performance over physical measures of performance in reports that cover a short period of time.

Numbers that should be used for unique identifiers for coding an audit trail are prenumbered documents that represent the completion of a transaction and numbers of internally generated documents.

Receipt of a sales order could be used for event coding in accounting information systems.

Extensible business reporting language (XBRL) has which of the following characteristics?

Which of the following computer languages would best support the activity of identifying the balances of the cash and cash equivalent accounts of several companies and extracting them to an electronic spreadsheet for analysis?

What are dictionaries of element names that represent financial report concepts?

Effective exception reporting requires the ability to select records based on the similarities between an account's current balance and its prior year's balance.

A purchase order number would not be suitable as a reference identifier in an audit trail.

Most accounting software packages provide the capability for exception reporting.

Which of the following is/are TRUE with regard to XBRL?

Record sequencing is the process of placing data in a specified order.