Question 1

In Petaluma,California,electric power is provided to consumers by Pacific Power.Each month Pacific Power mails bills to 186,000 households and then processes payments as they are received.What is the best way for this business to ensure that payment data entry is efficient and accurate?

Accepted Answer

The answer of In Petaluma,California,electric power is provided to consumers...

Question 2

In transaction processing,generally which activity comes first?

Accepted Answer

Capturing data on source documents is the first activity in transaction processing as it involves the initial recording of the transaction details. Source documents like invoices, bills, receipts, etc., provide evidence of the transaction and are used to record the data accurately. Once the data is captured, it can be further processed for recording in journals and ledgers.

Question 3

The collection of customer payment is part of which transaction cycle?

Accepted Answer

The collection of customer payment is a key step in the revenue cycle, which involves the sale of goods or services, billing and invoicing, and the collection of payments.

Question 4

What is a turnaround document? Provide at least one example of a turnaround document.

Accepted Answer

The answer of What is a turnaround document? Provide at...

Question 5

The collection of employee time sheets is part of which transaction cycle?

Accepted Answer

The collection of employee time sheets is a part of the human resources cycle. This cycle involves managing employee data and processes such as recruitment, training, payroll, and other human resource functions. Employee time sheets are used to track the amount of time worked by employees and are essential for calculating their pay and benefits. Therefore, collecting time sheets falls under the human resources cycle.

Question 6

Pre-numbering of shipping documents helps to verify that

Accepted Answer

Pre-numbering of shipping documents helps in ensuring that all transactions have been recorded by providing a means to track any missing documents, thereby ensuring completeness in the recording process.

Question 7

Documents that are sent to customers or suppliers and then sent back to the company in the course of a business transaction are known as

Accepted Answer

Turnaround documents are documents that are sent to customers or suppliers and then returned to the company to complete a transaction. Examples include invoices, purchase orders, and shipping documents. They are called "turnaround" documents because they are created by one party, sent to another, then returned to the original party to complete a transaction. Option B) Source documents are the original documents that provide information for accounting records, while option C) Input documents are any documents that are entered into a system or process for further use, and option D) Transaction documents are any documents that record a business transaction. However, turnaround documents specifically refer to documents that are sent and returned during a transaction.

Question 8

Common source documents for the revenue cycle include all of the following except

Accepted Answer

The receiving report is not a common source document for the revenue cycle; it is used in the purchasing cycle to document the receipt of goods.

Question 9

Data processing includes all of the following except

Accepted Answer

Data processing includes changing, removing, and adding information to a system. Verifying subsidiary ledger balances is a task of the auditing process, rather than the processing of data itself.

Question 10

The Cape Fear Rocket Club heads out to the dunes of Cape Fear,Oregon every August to pierce the sky with their fiery projectiles.An enterprising seller of t-shirts has devised a series of designs that capture the spirit of the event in silk-screened splendor.His employees can be found on many of the major intersections selling his products out of the backs of pickup trucks.What is the best way for this business to ensure that sales data entry is efficient and accurate?

Accepted Answer

The answer of The Cape Fear Rocket Club heads out...

Question 11

What is the purpose of source documents? What controls are embedded in source documents? Give two examples of source documents.

Accepted Answer

The answer of What is the purpose of source documents?...

Question 12

Which of the following documents would be found in the expenditure cycle?

Accepted Answer

The purchase order is a key document in the expenditure cycle, as it initiates the purchase of goods or services. The delivery ticket (A) would be found in the inventory cycle, the time card (B) would be found in the payroll cycle, and the credit memo (C) would be found in the revenue cycle.

Question 13

Which of the following statements about data processing methods is true?

Accepted Answer

The answer of Which of the following statements about data...

Question 14

Build Smarts is a supplier of building materials to more than 150 builders in the state of Illinois.What is the best way for Build Smarts to ensure that all sales are recorded?

Accepted Answer

Sequentially numbered sales invoices help ensure that all sales are recorded by providing a unique identifier for each transaction, making it easier to track and verify sales, and reducing the risk of missing or duplicating records.

Question 15

Street Smarts is a retailer located in Naperville,Illinois.During the peak tourist season,it has average daily cash and credit card sales in excess of $10,000.What is the best way for Street Smarts to ensure that sales data entry is efficient and accurate?

Accepted Answer

Source data automation, such as using an electronic point of sale (POS) system, would be the best option for ensuring efficient and accurate sales data entry. It can eliminate the need for manual data entry, reduce errors, and improve the speed of processing transactions. Well-designed paper forms, turnaround documents, and sequentially numbered sales invoices all rely on manual data entry and are more susceptible to errors and delays.

Question 16

The data processing method used by FedEx to track packages is an example of

Accepted Answer

The data processing method used by FedEx to track packages is real-time processing, which means the data is processed immediately as it is received. This allows customers to track their packages in real-time and receive up-to-date information on its whereabouts.

Question 17

Describe the methods used to collect data about business activities.Describe design and control considerations for each of the data collection methods.

Accepted Answer

The answer of Describe the methods used to collect data...

Question 18

Source documents generally help to improve accuracy in transaction processing because

Accepted Answer

Source documents help to improve accuracy in transaction processing because they specify which information to collect, logically related data can be grouped in the same area of the document, and they provide directions and steps for completing the form. Therefore, all of the above are correct.

Question 19

Which of the following is an example of source data automation?

Accepted Answer

POS scanners in retail stores are an example of source data automation, as they automatically capture data at the point of sale and transfer it to the system for processing. Utility bills, bill of lading, and subsidiary ledger are not examples of source data automation.

Question 20

Which of the following statements is true?

Accepted Answer

On-line batch processing is a hybrid technique that involves real-time and batch processing. It allows users to input data into the system while also incorporating batch processing methods to process large volumes of data in the background. A is incorrect as batch processing doesn't ensure that stored information is always current. B is incorrect as on-line data entry can be more accurate than batch input as it can include data validation and real-time error checking. D is incorrect as batch processing is still widely used today in a variety of industries.

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