Question 1

Within the administrative processes, systems and controls result from transactions that are:

Accepted Answer

A) Large volumes of daily materials transactions. 
B) Large volumes of daily sales and cash inflow transactions. 
C) Periodic. 
D) Infrequent or intermittent. 
A) Large volumes of daily materials transactions. 
B) Large volumes of daily sales and cash inflow transactions. 
C) Periodic. 
D) Infrequent or intermittent.

Question 2

In the case of a manual accounting system, an approved journal voucher must be forwarded to the general ledger department before transactions can be recorded.

Accepted Answer

A) True 
 B)False

Question 3

When management has designed, implemented, and continually manages processes and internal controls, it is helping to ensure proper ________.

Accepted Answer

A) Stewardship 
B) Ethics 
C) Administrative processes 
D) Capital processes 
A) Stewardship 
B) Ethics 
C) Administrative processes 
D) Capital processes

Question 4

Capital usually comes from assets or short-term debt.

Accepted Answer

A) True 
 B)False

Question 5

The decision to raise or acquire capital funds is:

Accepted Answer

A) The responsibility of contract stock underwriters. 
B) The responsibility of contract bond underwriters. 
C) Affects only bonds. 
D) Is the responsibility of the board of directors. 
A) The responsibility of contract stock underwriters. 
B) The responsibility of contract bond underwriters. 
C) Affects only bonds. 
D) Is the responsibility of the board of directors.

Question 6

Capital or investment processes:

Accepted Answer

A) Is a regular and frequent event. 
B) Only requires the specific approval of someone such as a senior accountant. 
C) Requires the specific approval of top management or board of directors. 
D) Can be considered revenue since it results in cash inflows. 
A) Is a regular and frequent event. 
B) Only requires the specific approval of someone such as a senior accountant. 
C) Requires the specific approval of top management or board of directors. 
D) Can be considered revenue since it results in cash inflows.

Question 7

The board of directors must decide between debt, assets, or equity for capital funds.

Accepted Answer

A) True 
 B)False

Question 8

Reports disseminated to lower level managers are usually used to provide feedback and establish production schedules or sales goals.

Accepted Answer

A) True 
 B)False

Question 9

Subsidiary ledgers:

Accepted Answer

A) Would not contain the detailed information of a customer's account. 
B) Would contain the detailed information of a customer's account. 
C) Would contain only information related to secondary interests of the organization. 
D) Would not be utilized in automated accounting processes. 
A) Would not contain the detailed information of a customer's account. 
B) Would contain the detailed information of a customer's account. 
C) Would contain only information related to secondary interests of the organization. 
D) Would not be utilized in automated accounting processes.

Question 10

The factor that does NOT affect internal reports is:

Accepted Answer

A) The type of organization. 
B) The audit status of the organization. 
C) The underlying function being managed. 
D) The time horizon. 
A) The type of organization. 
B) The audit status of the organization. 
C) The underlying function being managed. 
D) The time horizon.

Question 11

When transactions are posted in a computerized accounting system:

Accepted Answer

A) The user must post all transactions awaiting in the module. 
B) Segregation of duties is not a factor. 
C) The user can select which batches of transactions to post. 
D) Anyone with general ledger access can post the transactions. 
A) The user must post all transactions awaiting in the module. 
B) Segregation of duties is not a factor. 
C) The user can select which batches of transactions to post. 
D) Anyone with general ledger access can post the transactions.

Question 12

The ________ provides) details for all the account within the chart of accounts and is the entire set of T-accounts for the organization.

Accepted Answer

A) Trial balance 
B) Adjust entries 
C) Financial statements 
D) General ledger 
A) Trial balance 
B) Adjust entries 
C) Financial statements 
D) General ledger

Question 13

Internal reports of financial information:

Accepted Answer

A) Are standardized by the AICPA. 
B) Are the same as those distributed to the external users. 
C) Vary by the user. 
D) Are distributed on the same time schedule as external reports. 
A) Are standardized by the AICPA. 
B) Are the same as those distributed to the external users. 
C) Vary by the user. 
D) Are distributed on the same time schedule as external reports.

Question 14

The sales journal would have columns for a:

Accepted Answer

A) Debit to sales, a credit to accounts receivable. 
B) Debit to cash, a debit to accounts receivable, and a credit to sales. 
C) Debit to accounts receivable and a credit to cost of goods sold. 
D) Debit to accounts receivable and a credit to sales. 
A) Debit to sales, a credit to accounts receivable. 
B) Debit to cash, a debit to accounts receivable, and a credit to sales. 
C) Debit to accounts receivable and a credit to cost of goods sold. 
D) Debit to accounts receivable and a credit to sales.

Question 15

Capital is/are the funds:

Accepted Answer

A) Utilized to acquire long-term and short-term or current assets. 
B) Received from customers from accounts receivable. 
C) Utilized to acquire long-term assets 
D) That are cash inflows regardless of source. 
A) Utilized to acquire long-term and short-term or current assets. 
B) Received from customers from accounts receivable. 
C) Utilized to acquire long-term assets 
D) That are cash inflows regardless of source.

Question 16

Approvals for each journal voucher are specific authorizations.

Accepted Answer

A) True 
 B)False

Question 17

In automated accounting:

Accepted Answer

A) Paper vouchers are still required before the posting process is started. 
B) Transaction information may be held in a special module awaiting posting. 
C) General ledger accounts are updated as transactions are recorded in special journals. 
D) Authorization is required for each specific transaction. 
A) Paper vouchers are still required before the posting process is started. 
B) Transaction information may be held in a special module awaiting posting. 
C) General ledger accounts are updated as transactions are recorded in special journals. 
D) Authorization is required for each specific transaction.

Question 18

A service firm would focus on:

Accepted Answer

A) Raw materials and work in process. 
B) Sales and project status. 
C) Work in process and labor. 
D) Raw materials and labor. 
A) Raw materials and work in process. 
B) Sales and project status. 
C) Work in process and labor. 
D) Raw materials and labor.

Question 19

Which of the following statements about reporting is true?

Accepted Answer

A) External users need detailed, rather than summarized, information. 
B) All reports, internal and external, are derived only from general ledger data. 
C) All organizations need similar internal reports. 
D) Internal reports are tailored to the specific needs of each management level and function. 
A) External users need detailed, rather than summarized, information. 
B) All reports, internal and external, are derived only from general ledger data. 
C) All organizations need similar internal reports. 
D) Internal reports are tailored to the specific needs of each management level and function.

Within the administrative processes, systems and controls result from transactions that are:

In the case of a manual accounting system, an approved journal voucher must be forwarded to the general ledger department before transactions can be recorded.

When management has designed, implemented, and continually manages processes and internal controls, it is helping to ensure proper ________.

Capital usually comes from assets or short-term debt.

The decision to raise or acquire capital funds is:

Capital or investment processes:

The board of directors must decide between debt, assets, or equity for capital funds.

Reports disseminated to lower level managers are usually used to provide feedback and establish production schedules or sales goals.

Subsidiary ledgers:

The factor that does NOT affect internal reports is:

When transactions are posted in a computerized accounting system:

The ________ provides) details for all the account within the chart of accounts and is the entire set of T-accounts for the organization.

Internal reports of financial information:

The sales journal would have columns for a:

Capital is/are the funds:

Approvals for each journal voucher are specific authorizations.

In automated accounting:

A service firm would focus on:

Which of the following statements about reporting is true?

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters

Exam 12: Administrative Processes and Controls

Within the administrative processes, systems and controls result from transactions that are:

In the case of a manual accounting system, an approved journal voucher must be forwarded to the general ledger department before transactions can be recorded.

When management has designed, implemented, and continually manages processes and internal controls, it is helping to ensure proper ________.

Capital usually comes from assets or short-term debt.

The decision to raise or acquire capital funds is:

Capital or investment processes:

The board of directors must decide between debt, assets, or equity for capital funds.

Reports disseminated to lower level managers are usually used to provide feedback and establish production schedules or sales goals.

Subsidiary ledgers:

The factor that does NOT affect internal reports is:

When transactions are posted in a computerized accounting system:

The ________ provides) details for all the account within the chart of accounts and is the entire set of T-accounts for the organization.

Internal reports of financial information:

The sales journal would have columns for a:

Capital is/are the funds:

Approvals for each journal voucher are specific authorizations.

In automated accounting:

A service firm would focus on:

Which of the following statements about reporting is true?

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters