Deck 7: Accounting Information Systems and Business Processes: Part I

Question 1

Block codes are commonly used in constructing charts of accounts.

Answer 1

True

Question 2

Codes are seldom used in an AIS because they use excess space.

Answer 2

False

Question 3

The first trial balance produced by an AIS in the accounting cycle, is the adjusted trial balance.

Answer 3

False

Question 4

Group codes are very flexible in identifying accounting data.

Question 5

The purchasing process is complete when goods are received from vendors.

Question 6

A ledger is a chronological record of business events by account.

Question 7

Debit/credit memoranda are issued when there is a discrepancy about the amount owed or when goods are returned.

Question 8

Block codes consist of a combination of a sequence code and a mnemonic code.

Question 9

The purchasing process begins with a request for goods or services and ends with payment to the vendor.

Question 10

The AIS should bill customers for goods at the time they are ordered.

Question 11

A cash disbursements journal is an example of a special journal.

Question 12

A shipping notice is a source document that accompanies goods sent to a customer.

Question 13

Three major objectives of a data collection process are accuracy, timeliness, and cost-effectiveness.

Question 14

A two-digit alphabetic code has many more different combinations of symbols than a two-digit numeric code.

Question 15

Managerial reports are the primary output of the financial accounting system.

Question 16

Which of the following is not one of the trial balances typically produced as part of the financial accounting cycle?

A)Closing trial balance
B)Unadjusted trial balance
C)Adjusted trial balance
D)Post-closing trial balance

Question 17

Subsidiary ledgers are frequently maintained for accounts receivable and inventory accounts.

Question 18

A company's chart of accounts is used to organize its general ledger.

Question 19

The sales process begins with placing an order with a vendor.

Question 20

The purchasing process begins with a request for goods or services and ends with receipt of the goods or services.

Question 21

Which source document is used to request goods?

A)Purchase order
B)Shipping notice
C)Purchase requisition
D)Sales order

Question 22

The bill of lading:

A)Reflects freight charges on goods shipped
B)Signifies release of goods for shipment to customers
C)Is sent to the customer with the purchase invoice
D)Is used to control inventory

Question 23

Which of the following is not a primary objective of coding systems today?

A)To compress data
B)To uniquely identify objects
C)To convey special meanings that are not apparent to the public-at-large
D)To use numbers instead of alphabetic characters in order to save on computer data storage costs

Question 24

Which of the following is not an example of a source document?

A)Receiving report
B)Purchase order
C)Sales order
D)Aging report

Question 25

The primary objective in processing revenues is to:

A)Sell as many goods as possible
B)Achieve timely and efficient cash collection
C)Maximize an organization's sales orders
D)Only sell goods to customers who can pay their bills

Question 26

The sales process begins with:

A)Placing an order with a vendor
B)A customer order for goods or services
C)Production of goods or services
D)Delivery of goods or services

Question 27

To forecast cash receipts, information must be collected from:

A)The purchasing process
B)Payroll processing
C)Inventory control systems
D)The sales process

Question 28

Inputs to transaction processing systems:

A)Are always in hard copy
B)Are best when input in a graphical format
C)May be in an electronic format when an EDI system is used
D)May never be audio

Question 29

The financial accounting cycle ends with:

A)The production of financial statements
B)The production of a post closing trial balance
C)The production of an adjusted trial balance
D)Development of cash forecasts

Question 30

Well-designed output reports are characterized by all but which of the following?

A)They are useful
B)They are conveniently formatted
C)They never include graphs
D)They are easily identifiable

Question 31

Which of the following is not an objective of the purchasing process?

A)Inventory control
B)Fastest possible processing of payments to vendors
C)Maintaining vendor records
D)Forecasting cash outflows

Question 32

Forecasting cash flows:

A)Is an objective of transaction processing
B)Is never considered an objective of transaction processing
C)Is only possible in computerized AISs
D)Is considered as a risky activity with which accountants should not be associated

Question 33

A general ledger:

A)Is a chronological listing of an organization's transactions
B)Is a listing of an organization's transactions, organized by account
C)Does not include every account in an organization's chart of accounts
D)Is the same thing as a transaction listing

Question 34

The Year 2000 problem was a prime example of:

A)Information overload
B)A coding problem
C)Poorly designed report structures
D)The short-sightedness of accountants

Question 35

Which of the following is not an objective of the sales process?

A)Controlling inventory
B)Tracking sales of goods and/or services to customers
C)Billing for goods and services
D)Forecasting sales and cash receipts

Question 36

Performance reports are:

A)Reports that compare budgets with actual performance
B)Reports that show any exceptional conditions in an organization
C)Never presented in an exception format
D)Transaction listings

Question 37

An important input to the sales process is:

A)A customer sales order
B)The cash forecast
C)Aged accounts receivable information
D)A receiving report

Question 38

All of the following are inputs source documents)to the sales process except:

A)Sales order
B)Shipping notice
C)Remittance advice
D)all of the above are source documents to the sales process

Question 39

Which of the following is not usually a design consideration in coding systems?

A)Consistency
B)Standardization
C)Government regulation
D)Plans for future expansion

Question 40

Information overload:

A)Refers to a problem that can result when an AIS produces too many reports
B)Refers to the situation that occurs when a company's database is too large
C)Almost always results when an AIS is computerized
D)Cannot be avoided in the Information Age

Question 41

All of the following are inputs source documents)to the purchasing process except:

A)Purchase order
B)Vendor listing
C)Bill of lading
D)all of the above are source documents to the purchasing process

Question 42

In the sales process, in an online environment, ______ occurs before ______.

A)Customer payment, customer order
B)Customer payment, shipping notice
C)Vendor order, vendor payment
D)Work in process, finished goods

Question 43

Business organizations are recognizing the value of sales data and are purchasing software solutions to gather, maintain, and use these data to provide better service and promote customer loyalty.These software solutions are called:

A)Customer relations data solutions
B)Customer relationship management solutions
C)Sales data management solutions
D)none of the above

Question 44

Networked enterprises and globalization have enabled a new business model called "business-without-boundaries." Which of the following statements describes this business model?

A)Companies no longer have all of their employees in one location
B)It is called offshoring and companies contract with firms in other countries to do such business processes as human resources, payroll, and accounting
C)Companies are under a great deal of scrutiny to manage costs and generate revenue so they contract with foreign firms to do various business processes at a lower cost to the company
D)all of the above statements describe this model

Question 45

Which of the following statements best describes business process outsourcing?

A)A company focuses on its core business processes and contracts with another firm to do the other processes
B)Companies frequently outsource core business processes
C)Due to networked enterprises and advanced technology, more employees may work from their homes or alternate locations
D)Initially, companies engaged in business process outsourcing offered employees more opportunities to travel and more career choices for advancement

Question 46

The information management wants to see in ______ determines many of the fields in the firm's ______.

A)Subforms, queries
B)Reports, database
C)Ledgers, journal entries
D)Business processes, EDI

Question 47

Which of the following Business Process Management BPM)software solutions is most often associated with the sales process?

A)Enterprise resource management
B)Integrated management
C)Customer relationship management
D)Supply chain management
E)none of the above

Question 48

Why do firms like Walmart and Procter & Gamble create supply chain partnerships?

A)These firms are chain stores, and they need supply chains
B)Supply chains make inventory management more efficient
C)Supply chains make database designs more efficient
D)Supply chains allow the firms to be more independent

Question 49

Which of the following statements best describes a business process?

A)It is a collection of activities in an organization that creates value
B)The nature and type of processes might vary from industry to industry
C)It is an activity that increases and/or decreases dollar amounts on the financial statements
D)It is an economic event in the life of an organization

Question 50

Much of the input and output related to business processes is now electronic.Which of the following technologies is becoming increasingly popular to manage inventory?

A)EDI
B)RFID tags
C)Magnetic ink characters that can be quickly and easily scanned
D)Bluetooth and wireless-enabled laptop computers

Question 51

Which of the following is an objective of the purchasing process?

A)Collecting information for the financial statements
B)Making timely and accurate vendor payments
C)Forecasting cash requirements
D)Tracking bills of lading