Question 1

The existence of relevant data guarantees the data are useful.

Accepted Answer

The existence of relevant data does not guarantee that they are useful. The data may need to be processed, analyzed, and interpreted in order to derive useful insights or information. Additionally, the relevance of the data may also depend on the particular context or question being asked.

Question 2

Which step below is not considered to be part of the data processing cycle?

Accepted Answer

Feedback from external sources is not a direct part of the data processing cycle, as it is not a step involved in the processing and manipulation of data within a system. However, it may be considered part of a larger feedback loop for improving the overall data processing cycle.

Question 3

Which of the following is not considered a source document?

Accepted Answer

A copy of the company's financial statements is not considered a source document because it is a summary of the company's financial transactions, rather than a record of the individual transactions themselves.

Question 4

Identify the item below that is not one of the four different types of data processing activities.

Accepted Answer

Creating, reading, and deleting are recognized data processing activities, often summarized as CRUD (Create, Read, Update, Delete). "Using" is not typically classified as a distinct data processing activity in this context.

Question 5

John Pablo works in the accounting department of a multinational manufacturing company.His job includes updating accounts payable based on purchase orders and checks.His responsibilities are part of the company's

Accepted Answer

John Pablo's job involves updating accounts payable based on purchase orders and checks, which indicates his responsibilities are related to the expenditure cycle. The expenditure cycle involves purchasing goods and services, paying for them, and recording the transactions in the accounting system.

Question 6

Describe the basic cycles and business activities for a typical merchandising company.

Accepted Answer

The answer of Describe the basic cycles and business activities...

Question 7

What is the final step in the data processing cycle?

Accepted Answer

Output is the final step in the data processing cycle where the processed data or results are presented in a desired format to the user or recipient.

Question 8

Making payments to a vendor,with whom a credit line is already established,would be initially recorded in which type of accounting record and as part of what transaction cycle?

Accepted Answer

Making payments to a vendor with an already established credit line is a disbursement transaction, which would be recorded in the cash disbursements journal as part of the expenditure cycle. The purchases journal is used for the purchase of inventory and goods, while the general journal and general ledger are used for more miscellaneous and non-routine transactions.

Question 9

Issuing a purchase order is part of which transaction cycle?

Accepted Answer

Issuing a purchase order is part of the expenditure cycle, which involves purchasing goods and services for the business.

Question 10

For a retail business,a delivery of inventory,from a vendor (with whom there is an established credit relationship)would be initially recorded in which type of accounting record as part of which transaction cycle?

Accepted Answer

A delivery of inventory from a vendor with whom there is an established credit relationship would be recorded in the purchases journal as part of the expenditure cycle. This journal is used to record all purchases made by the business on credit from its vendors.

Question 11

A delivery of inventory from a vendor,with whom a credit line is already established,would be initially recorded in which type of accounting record and as part of what transaction cycle?

Accepted Answer

A delivery of inventory from a vendor, with whom a credit line is already established, is an example of a purchase transaction in the expenditure cycle. The initial recording of this transaction would be in the purchases journal, which is used to record all purchases of inventory and supplies on credit. The general ledger is a master record of all transactions, and the cash disbursements journal is used to record payments made to vendors, so neither of these options would be the initially recorded accounting record for this transaction. The production cycle involves manufacturing or assembling goods and would not be relevant to the purchase of inventory from a vendor.

Question 12

A typical source document could be

Accepted Answer

A typical source document can be a paper document or a computer data entry screen. Both options are valid sources of original information that provide the basis for recording transactions in an accounting system. Financial statements, on the other hand, are not source documents but rather a summary of the information already recorded in the accounting system.

Question 13

The general ledger

Accepted Answer

The general ledger is a collection of all the accounts used in recording transactions for the business. It summarizes the transactions recorded in different journals, such as the sales journal, cash receipts journal, and purchases journal. Therefore, option D, "summarizes the transactions in journals," is the correct answer.

Question 14

Identify the four parts of the transaction processing cycle.

Accepted Answer

The transaction processing cycle involves four main stages: data input, data storage, data processing, and information output. The correct order of these stages is important for accurate and efficient processing of transactions. The other options do not accurately reflect the four stages of the transaction processing cycle.

Question 15

Many small businesses choose to outsource their payroll activities to firms that specialize in providing payroll services.Dolores Yu operates a payroll processing business in Calabasas,California.When she sends bills out to her clients,her work is part of her firm's

Accepted Answer

Dolores Yu's billing to clients for payroll processing services is part of her firm's revenue cycle, as it generates incoming revenue for the business. The revenue cycle includes all activities involved in selling goods or services to customers and collecting payment.

Question 16

What is the most frequent revenue cycle transaction?

Accepted Answer

The sale to the customer is the most frequent revenue cycle transaction because it involves the day-to-day activities of a business in generating revenue. It includes activities like taking orders, preparing invoices, and shipping products or providing services to customers.

Question 17

Which of the following commonly initiates the data input process?

Accepted Answer

A business activity commonly initiates the data input process as it generates the need for data to be recorded and processed.

Question 18

What is the first step in the data processing cycle?

Accepted Answer

The first step in the data processing cycle is inputting the data, which can be done through various means such as typing on a keyboard, scanning a document, or using a sensor.

Question 19

Data must be collected about three facets of each business activity.What are they?

Accepted Answer

The three facets of each business activity that must be collected are the business activity itself, the resources it affects, and the people who participate in it. This provides a comprehensive view of the activity's context, impact, and participants.

Question 20

John Pablo works in the accounting department of a multinational manufacturing company.His job includes updating accounts receivable based on sales orders and remittance advices.His responsibilities are part of the company's

Accepted Answer

John Pablo's job of updating accounts receivable based on sales orders and remittance advices is a part of the revenue cycle. The revenue cycle includes all the activities related to sales and cash receipts, and updating accounts receivable is an important component of this cycle. Therefore, the best choice in this case would be option A.

Quiz 2: Overview of Transaction Processing and Enterprise Resource Planning Systems