Question 1

Which of the following statements regarding reports is true?

Accepted Answer

A) Reports should contain as many data as possible so that readers are able to understand the reports thoroughly. 
B) Poorly arranged data in reports can be misleading. 
C) Simple issues such as selecting the appropriate font size or column heading are unlikely to impact on the understandability of a report. 
D) All of the options are correct. 
A) Reports should contain as many data as possible so that readers are able to understand the reports thoroughly. 
B) Poorly arranged data in reports can be misleading. 
C) Simple issues such as selecting the appropriate font size or column heading are unlikely to impact on the understandability of a report. 
D) All of the options are correct.

Question 2

Which of the following statements regarding operational reports is true?

Accepted Answer

A) Any operational report that is based on accrual accounting assumptions can only be relied upon if it is generated using correctly adjusted data. 
B) Operational reports can be generated at any time after a transaction is recorded 
C) Operational reports usually extract and report data directly from summarised general ledgers. 
D) Operational reports are constructed in accordance with the requirements of the relevant accounting standards and they are freely available to both external and internal users. 
A) Any operational report that is based on accrual accounting assumptions can only be relied upon if it is generated using correctly adjusted data. 
B) Operational reports can be generated at any time after a transaction is recorded 
C) Operational reports usually extract and report data directly from summarised general ledgers. 
D) Operational reports are constructed in accordance with the requirements of the relevant accounting standards and they are freely available to both external and internal users.

Question 3

The purpose of budgeting is to:

Accepted Answer

A) Get a forecast of resource usage of the next financial year only. 
B) Facilitate organisational planning and control. 
C) Request more funding. 
D) All of the options are correct. 
A) Get a forecast of resource usage of the next financial year only. 
B) Facilitate organisational planning and control. 
C) Request more funding. 
D) All of the options are correct.

Question 4

Which of the following statements regarding reports is true?

Accepted Answer

A) Financial reports are more detailed than management reports. 
B) Financial reports have an internal focus. 
C) Management reports can be distributed externally. 
D) Basic reports contain even more detailed information than financial reports and management reports. 
A) Financial reports are more detailed than management reports. 
B) Financial reports have an internal focus. 
C) Management reports can be distributed externally. 
D) Basic reports contain even more detailed information than financial reports and management reports.

Question 5

Common reports produced in the general ledger and financial reporting cycle include:

Accepted Answer

A) Profitability analysis for the organisation or a division 
B) Cost management analysis for decision-making. 
C) Analysis of profitability potential to guide future investment decisions 
D) All of the options are correct. 
A) Profitability analysis for the organisation or a division 
B) Cost management analysis for decision-making. 
C) Analysis of profitability potential to guide future investment decisions 
D) All of the options are correct.

Question 6

The main risk attached to producing financial reports is:

Accepted Answer

A) unauthorised distribution of financial reports 
B) unauthorised access of financial reports 
C) reporting incorrect data 
D) reporting too many data 
A) unauthorised distribution of financial reports 
B) unauthorised access of financial reports 
C) reporting incorrect data 
D) reporting too many data

Question 7

Setting budget targets requires a balance between:

Accepted Answer

A) the current financial situation of the organisation and the forecasted cash flow 
B) what is desired in terms of performance and what is thought to be possible 
C) the expenditure and the revenue of the organisation 
D) All of the options are correct. 
A) the current financial situation of the organisation and the forecasted cash flow 
B) what is desired in terms of performance and what is thought to be possible 
C) the expenditure and the revenue of the organisation 
D) All of the options are correct.

Question 8

To reduce the risks of incomplete and inaccurate data during data extraction and validation in the process of updating general ledger,which of the following controls can be used?

Accepted Answer

A) Batch totals 
B) Hash totals 
C) Use ledger control accounts 
D) All of the options are correct. 
A) Batch totals 
B) Hash totals 
C) Use ledger control accounts 
D) All of the options are correct.

Question 9

Which of the following documents (or information on these documents)does not flow into the general ledger and financial reporting cycle through the cash disbursements journal?

Accepted Answer

A) Production costs 
B) Payroll 
C) Cheques 
D) Purchase invoice 
A) Production costs 
B) Payroll 
C) Cheques 
D) Purchase invoice

Question 10

The degree of granularity of a budget refers to which of the following:

Accepted Answer

A) Budgeting by line item rather than in aggregate 
B) Producing an annual budget or month by month 
C) The amount of stretch built into the budget 
D) Which level of management were involved in the estimates 
A) Budgeting by line item rather than in aggregate 
B) Producing an annual budget or month by month 
C) The amount of stretch built into the budget 
D) Which level of management were involved in the estimates

Question 11

The general ledger and financial reporting cycle commences when:

Accepted Answer

A) data are received from other cycles 
B) budgets are created 
C) it is time to generate and distribute financial reports 
D) budget variances are examined 
A) data are received from other cycles 
B) budgets are created 
C) it is time to generate and distribute financial reports 
D) budget variances are examined

Question 12

Which of the following is not helpful in reducing the risk of journal entries errors during the preparation of adjusting journals?

Accepted Answer

A) Independent approval of journal entries by senior accounting staff 
B) Attach full working papers to support journal entry calculations 
C) Document assumptions and algorithms relied on when calculating journal amounts 
D) Performing a reasonableness check. 
A) Independent approval of journal entries by senior accounting staff 
B) Attach full working papers to support journal entry calculations 
C) Document assumptions and algorithms relied on when calculating journal amounts 
D) Performing a reasonableness check.

Question 13

What are the key considerations when setting budget targets?

Accepted Answer

Setting budget targets requires balance

Question 14

High-quality decision-making requires:

Accepted Answer

A) valid,timely,accurate,and complete data and comprehensible reports 
B) valid,timely,accurate,and complete data and comprehensive reports 
C) good data and comprehensive reports 
D) comprehensive data and comprehensible reports 
A) valid,timely,accurate,and complete data and comprehensible reports 
B) valid,timely,accurate,and complete data and comprehensive reports 
C) good data and comprehensive reports 
D) comprehensive data and comprehensible reports

Question 15

Which of the following must be taken into consideration before a general journal adjustment is authorised?

Accepted Answer

A) The need to incorporate data from external sources such as bank statements 
B) Accounting policies and procedures 
C) Accounting standards 
D) All of the options are correct 
A) The need to incorporate data from external sources such as bank statements 
B) Accounting policies and procedures 
C) Accounting standards 
D) All of the options are correct

Question 16

Which of the following is NOT a KPI that can be used to measure the objective "To validate and correctly transfer all relevant transactional data"?

Accepted Answer

A) Number of data errors detected 
B) The volume of transactional data transferred 
C) Reconciled balances in subsidiary ledger control accounts 
D) Number of un-cleared transactions in suspense accounts 
A) Number of data errors detected 
B) The volume of transactional data transferred 
C) Reconciled balances in subsidiary ledger control accounts 
D) Number of un-cleared transactions in suspense accounts

Question 17

Which of the following is NOT a KPI that can be used to measure the objective "To ensure all adjusting journal entries are accurately prepared and independently authorised"?

Accepted Answer

A) Number of erroneous adjustments detected 
B) Level of unadjusted balances in asset and liability accounts 
C) The number of authorisation performed 
D) Degree of compliance with accounting policy 
A) Number of erroneous adjustments detected 
B) Level of unadjusted balances in asset and liability accounts 
C) The number of authorisation performed 
D) Degree of compliance with accounting policy

Question 18

Which of the following technologies can be used in the general ledger and financial reporting cycle?

Accepted Answer

A) ERP and XBRL 
B) ERP and CAD 
C) RFID and XBRL 
D) CAD and RFID 
A) ERP and XBRL 
B) ERP and CAD 
C) RFID and XBRL 
D) CAD and RFID

Question 19

Who uses the data produced by the general ledger and financial reporting cycle?

Accepted Answer

A) All levels of management 
B) Investors and analysts 
C) Regulatory bodies 
D) All of the options are correct 
A) All levels of management 
B) Investors and analysts 
C) Regulatory bodies 
D) All of the options are correct

Question 20

An internet-based banking facility that allows organisations to manage and view their bank accounts online and conduct transactions such as transfers from those accounts is called:

Accepted Answer

A) Online reconciliation 
B) Online payment 
C) Online banking 
D) Online financial management 
A) Online reconciliation 
B) Online payment 
C) Online banking 
D) Online financial management

Which of the following statements regarding reports is true?

Which of the following statements regarding operational reports is true?

The purpose of budgeting is to:

Which of the following statements regarding reports is true?

Common reports produced in the general ledger and financial reporting cycle include:

The main risk attached to producing financial reports is:

Setting budget targets requires a balance between:

To reduce the risks of incomplete and inaccurate data during data extraction and validation in the process of updating general ledger,which of the following controls can be used?

Which of the following documents (or information on these documents)does not flow into the general ledger and financial reporting cycle through the cash disbursements journal?

The degree of granularity of a budget refers to which of the following:

The general ledger and financial reporting cycle commences when:

Which of the following is not helpful in reducing the risk of journal entries errors during the preparation of adjusting journals?

What are the key considerations when setting budget targets?

High-quality decision-making requires:

Which of the following must be taken into consideration before a general journal adjustment is authorised?

Which of the following is NOT a KPI that can be used to measure the objective "To validate and correctly transfer all relevant transactional data"?

Which of the following is NOT a KPI that can be used to measure the objective "To ensure all adjusting journal entries are accurately prepared and independently authorised"?

Which of the following technologies can be used in the general ledger and financial reporting cycle?

Who uses the data produced by the general ledger and financial reporting cycle?

An internet-based banking facility that allows organisations to manage and view their bank accounts online and conduct transactions such as transfers from those accounts is called:

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Internal Controls II

Transaction Cycle The Revenue Cycle

Transaction Cycle The Expenditure Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

Filters

Exam 13: Transaction Cycle The General Ledger and Financial Reporting Cycle

Which of the following statements regarding reports is true?

Which of the following statements regarding operational reports is true?

The purpose of budgeting is to:

Which of the following statements regarding reports is true?

Common reports produced in the general ledger and financial reporting cycle include:

The main risk attached to producing financial reports is:

Setting budget targets requires a balance between:

To reduce the risks of incomplete and inaccurate data during data extraction and validation in the process of updating general ledger,which of the following controls can be used?

Which of the following documents (or information on these documents)does not flow into the general ledger and financial reporting cycle through the cash disbursements journal?

The degree of granularity of a budget refers to which of the following:

The general ledger and financial reporting cycle commences when:

Which of the following is not helpful in reducing the risk of journal entries errors during the preparation of adjusting journals?

What are the key considerations when setting budget targets?

High-quality decision-making requires:

Which of the following must be taken into consideration before a general journal adjustment is authorised?

Which of the following is NOT a KPI that can be used to measure the objective "To validate and correctly transfer all relevant transactional data"?

Which of the following is NOT a KPI that can be used to measure the objective "To ensure all adjusting journal entries are accurately prepared and independently authorised"?

Which of the following technologies can be used in the general ledger and financial reporting cycle?

Who uses the data produced by the general ledger and financial reporting cycle?

An internet-based banking facility that allows organisations to manage and view their bank accounts online and conduct transactions such as transfers from those accounts is called:

Systems Fundamentals

Systems Characteristics and Considerations

Database Concepts I

Database Concepts II

XBRL Reporting

System Mapping and Documentation

Internal Controls I

Internal Controls II

Transaction Cycle The Revenue Cycle

Transaction Cycle The Expenditure Cycle

Transaction Cycle The Production Cycle

Transaction Cycle The HR Management and Payroll Cycle

Systems Development

Auditing of Accounting Information Systems

Ethics, fraud and Computer Crime

Filters