Question 1

Which of the following is true about IFRS?

Accepted Answer

A) There is a global trend towards using IFRS for reporting purposes,though U.S.companies are not currently required to do so. 
B) The switch to IFRS is required by the Sarbanes-Oxley Act. 
C) IFRS is only slightly different than U.S.GAAP. 
D) The switch to IFRS is cosmetic only-there isn't any real impact on AIS. 
A) There is a global trend towards using IFRS for reporting purposes,though U.S.companies are not currently required to do so. 
B) The switch to IFRS is required by the Sarbanes-Oxley Act. 
C) IFRS is only slightly different than U.S.GAAP. 
D) The switch to IFRS is cosmetic only-there isn't any real impact on AIS.

Question 2

Which of the following statements is not true regarding XBRL?

Accepted Answer

A) XBRL is a variant of XML. 
B) XBRL is specifically designed for use in communicating the content of financial data. 
C) XBRL creates unique tags for each data item. 
D) XBRL's adoption will require accountants and systems professionals tag data for their clients. 
A) XBRL is a variant of XML. 
B) XBRL is specifically designed for use in communicating the content of financial data. 
C) XBRL creates unique tags for each data item. 
D) XBRL's adoption will require accountants and systems professionals tag data for their clients.

Question 3

Which of the following is not one of the principles of proper graph design for bar charts?

Accepted Answer

A) Include data values with each element. 
B) Use 3-D rather than 2-D bars to make reading easier. 
C) Use colors or shades instead of patterns to represent different variables. 
D) Use titles that summarize the basic message. 
A) Include data values with each element. 
B) Use 3-D rather than 2-D bars to make reading easier. 
C) Use colors or shades instead of patterns to represent different variables. 
D) Use titles that summarize the basic message.

Question 4

Which of the following controls can minimize the threat of inaccurate or invalid general ledger data?

Accepted Answer

A) Training and experience in applying IFRS and XBRL. 
B) Responsibility accounting. 
C) Backup and disaster recovery procedures. 
D) Restriction of access to general ledger. 
A) Training and experience in applying IFRS and XBRL. 
B) Responsibility accounting. 
C) Backup and disaster recovery procedures. 
D) Restriction of access to general ledger.

Question 5

It is important to verify that all temporary accounts have a zero balance at least two times during the time period covered by the financial statements.

Accepted Answer

A) True 
 B)False

Question 6

What control procedure(s)should be used to reduce the risk of the destruction of financial statement master data?

Accepted Answer

A) Multifactor authentication. 
B) Backup and disaster recovery. 
C) Encryption. 
D) All of the above. 
A) Multifactor authentication. 
B) Backup and disaster recovery. 
C) Encryption. 
D) All of the above.

Question 7

Identify the year the SEC will require American companies to switch from U.S.-based GAAP to IFRS as the basis for preparing financial statements.

Accepted Answer

A) 2016 
B) 2018 
C) 2020 
D) At this point it is unclear when the SEC will require American companies to implement IFRS,though the SEC remains committed to requiring U.S.companies use IFRS at some point. 
A) 2016 
B) 2018 
C) 2020 
D) At this point it is unclear when the SEC will require American companies to implement IFRS,though the SEC remains committed to requiring U.S.companies use IFRS at some point.

Question 8

If you believe not all adjusting entries were posted in the general ledger,you should prepare a general ledger control report listing journal vouchers in

Accepted Answer

A) numerical sequence. 
B) chronological order. 
C) general ledger account number order. 
D) any order,since you have to review them all anyway. 
A) numerical sequence. 
B) chronological order. 
C) general ledger account number order. 
D) any order,since you have to review them all anyway.

Question 9

Which of the following statements is not true about an XBRL instance document?

Accepted Answer

A) An instance document includes instruction code as to how the document should be physically arranged and displayed. 
B) An instance document contains facts about specific financial statement line items. 
C) An instance document uses separate tags for each specific element. 
D) An instance document can be used to tag financial and nonfinancial elements. 
A) An instance document includes instruction code as to how the document should be physically arranged and displayed. 
B) An instance document contains facts about specific financial statement line items. 
C) An instance document uses separate tags for each specific element. 
D) An instance document can be used to tag financial and nonfinancial elements.

Question 10

The general ledger and reporting system consists of the ________ involved in ________ the general ledger and ________ reports.

Accepted Answer

A) business transactions;updating;processing 
B) data processing;business transactions for;printing 
C) information processing;updating;creating 
D) business transactions;data processing;preparing 
A) business transactions;updating;processing 
B) data processing;business transactions for;printing 
C) information processing;updating;creating 
D) business transactions;data processing;preparing

Question 11

Which of the following balanced scorecard dimensions provides measures on how well the organization is developing new products and training its workforce to continuously improve service and results?

Accepted Answer

A) Financial. 
B) Internal operations. 
C) Innovation and learning. 
D) Customer. 
A) Financial. 
B) Internal operations. 
C) Innovation and learning. 
D) Customer.

Question 12

How is an audit trail used in the general ledger and reporting system?

Accepted Answer

An audit trail shows the path of a trans

Question 13

Not all journal entries affect cash flow.Adjusting entries that reflect events that have already occurred,but have no effect on cash,are classified as

Accepted Answer

A) accruals. 
B) deferrals. 
C) revaluations. 
D) corrections. 
A) accruals. 
B) deferrals. 
C) revaluations. 
D) corrections.

Question 14

Which of the following controls can minimize the threat of loss or destruction of data?

Accepted Answer

A) Training and experience in applying IFRS and XBRL. 
B) Responsibility accounting. 
C) Backup and disaster recovery procedures. 
D) Restriction of access to general ledger. 
A) Training and experience in applying IFRS and XBRL. 
B) Responsibility accounting. 
C) Backup and disaster recovery procedures. 
D) Restriction of access to general ledger.

Question 15

Which of the following statements is true about the chart below?

Accepted Answer

A) The x-axis is in reverse chronological order,which violates a principle of proper graph design. 
B) The chart appears to conform to the principles of proper graph design. 
C) The vertical axis doesn't appear to start at the origin (zero). 
D) The chart used 2-D bars instead of 3-D,which violates a principle of proper graph design. 
A) The x-axis is in reverse chronological order,which violates a principle of proper graph design. 
B) The chart appears to conform to the principles of proper graph design. 
C) The vertical axis doesn't appear to start at the origin (zero). 
D) The chart used 2-D bars instead of 3-D,which violates a principle of proper graph design.

Question 16

Which of the following tasks are facilitated by maintaining a strong and secure audit trail?

Accepted Answer

A) Tracing a transaction from original source document to the general ledger to a report. 
B) Tracing an item in a report back through the general ledger to the original source document. 
C) Tracing changes in general ledger accounts from beginning to ending balances. 
D) All of the above are facilitated by the audit trail. 
A) Tracing a transaction from original source document to the general ledger to a report. 
B) Tracing an item in a report back through the general ledger to the original source document. 
C) Tracing changes in general ledger accounts from beginning to ending balances. 
D) All of the above are facilitated by the audit trail.

Question 17

When updating the general ledger,sales,purchases,and production are examples of ________ entries,and issuance or retirement of debt and the purchase or sale of investment securities are examples of ________ entries.

Accepted Answer

A) adjusting;controller originated 
B) accounting subsystem;treasurer originated 
C) adjusting;special journal 
D) controller generated;special journal 
A) adjusting;controller originated 
B) accounting subsystem;treasurer originated 
C) adjusting;special journal 
D) controller generated;special journal

Question 18

Performance reports for sales departments should compare actual revenue versus budgeted

Accepted Answer

A) revenue. 
B) cost. 
C) return on investment. 
D) profit. 
A) revenue. 
B) cost. 
C) return on investment. 
D) profit.

Question 19

Discuss the value and role of budgets as managerial reports.

Accepted Answer

Budgets are managerial reports that can

Question 20

Each specific data item in an XBRL document is called a(n)

Accepted Answer

A) taxonomy. 
B) element. 
C) instance. 
D) schema. 
A) taxonomy. 
B) element. 
C) instance. 
D) schema.

Exam 16: General Ledger and Reporting System

Which of the following is true about IFRS?

Which of the following statements is not true regarding XBRL?

Which of the following is not one of the principles of proper graph design for bar charts?

Which of the following controls can minimize the threat of inaccurate or invalid general ledger data?

It is important to verify that all temporary accounts have a zero balance at least two times during the time period covered by the financial statements.

What control procedure(s)should be used to reduce the risk of the destruction of financial statement master data?

Identify the year the SEC will require American companies to switch from U.S.-based GAAP to IFRS as the basis for preparing financial statements.

If you believe not all adjusting entries were posted in the general ledger,you should prepare a general ledger control report listing journal vouchers in

Which of the following statements is not true about an XBRL instance document?

The general ledger and reporting system consists of the ________ involved in ________ the general ledger and ________ reports.

Which of the following balanced scorecard dimensions provides measures on how well the organization is developing new products and training its workforce to continuously improve service and results?

How is an audit trail used in the general ledger and reporting system?

Not all journal entries affect cash flow.Adjusting entries that reflect events that have already occurred,but have no effect on cash,are classified as

Which of the following controls can minimize the threat of loss or destruction of data?

Which of the following statements is true about the chart below?

Which of the following tasks are facilitated by maintaining a strong and secure audit trail?

When updating the general ledger,sales,purchases,and production are examples of ________ entries,and issuance or retirement of debt and the purchase or sale of investment securities are examples of ________ entries.

Performance reports for sales departments should compare actual revenue versus budgeted

Discuss the value and role of budgets as managerial reports.

Each specific data item in an XBRL document is called a(n)

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

The general ledger and reporting system consists of the involved in the general ledger and reports.

When updating the general ledger,sales,purchases,and production are examples of entries,and issuance or retirement of debt and the purchase or sale of investment securities are examples of entries.