Question 1

Which type of graph is the most commonly used to display trends in financial data?

Accepted Answer

A) Pie chart. 
B) Scatterplot chart. 
C) Bar chart. 
D) Stochastic chart. 
A) Pie chart. 
B) Scatterplot chart. 
C) Bar chart. 
D) Stochastic chart.

Question 2

Standard XBRL taxonomies can cover most accounting situations.

Accepted Answer

A) True 
 B)False

Question 3

A major way in which IFRS differs from GAAP that will affect the design of a company's general ledger and reporting system is an IFRS principle known as

Accepted Answer

A) componentization. 
B) monetization. 
C) securitization. 
D) centralization. 
A) componentization. 
B) monetization. 
C) securitization. 
D) centralization.

Question 4

XBRL stands for

Accepted Answer

A) extensible business reporting language. 
B) external business reporting ledgers. 
C) external business reporting language. 
D) extensive business report logic. 
A) extensible business reporting language. 
B) external business reporting ledgers. 
C) external business reporting language. 
D) extensive business report logic.

Question 5

At a minimum,a switch to IFRS from GAAP will affect companies' accounting information system by

Accepted Answer

A) requiring companies to increase the processing power of their existing accounting information systems. 
B) requiring IT departments to hire programmers that are fluent in languages besides English. 
C) requiring the creation of additional fields in research and development (R&
D) records to capture information about the stage of research and development that costs are incurred in. 
D) requiring firms to completely redesign their existing accounting information systems because current systems are not compatible with IFRS accounting principles. 
A) requiring companies to increase the processing power of their existing accounting information systems. 
B) requiring IT departments to hire programmers that are fluent in languages besides English. 
C) requiring the creation of additional fields in research and development (R&
D) records to capture information about the stage of research and development that costs are incurred in. 
D) requiring firms to completely redesign their existing accounting information systems because current systems are not compatible with IFRS accounting principles.

Question 6

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 7

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The amounts debited and credited are not equal.Please correct and try again." This is an example of a

Accepted Answer

A) validity check. 
B) field check. 
C) zero-balance check. 
D) completeness test. 
A) validity check. 
B) field check. 
C) zero-balance check. 
D) completeness test.

Question 8

Which of the following balanced scorecard dimensions provides measures on new products?

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 9

What control procedure(s)should be used to reduce the risk of unauthorized disclosure of the financial statements?

Accepted Answer

A) Multifactor authentication. 
B) Physical security. 
C) Encryption. 
D) All of the above. 
A) Multifactor authentication. 
B) Physical security. 
C) Encryption. 
D) All of the above.

Question 10

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The account number referenced in your journal entry does not exist.Create a new account?" This is an example of a

Accepted Answer

A) validity check. 
B) closed loop verification. 
C) zero-balance check. 
D) completeness test. 
A) validity check. 
B) closed loop verification. 
C) zero-balance check. 
D) completeness test.

Question 11

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.

Question 12

Which item below is not considered a major input to the general ledger and reporting system?

Accepted Answer

A) summary entries from the major subsystems 
B) reports from managers 
C) adjusting entries 
D) financing and investing activities 
A) summary entries from the major subsystems 
B) reports from managers 
C) adjusting entries 
D) financing and investing activities

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

Adjusting entries that are made to counteract the effects of errors found in the general ledger are called

Accepted Answer

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

Question 15

Identify the most correct statement with regard to how the various accounting subsystems update the general ledger.

Accepted Answer

A) Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours. 
B) Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger. 
C) The controller or treasurer must approve accounting subsystem journal entries before any updating may occur. 
D) Nonroutine transactions are entered into the system by the treasurer's office. 
A) Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours. 
B) Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger. 
C) The controller or treasurer must approve accounting subsystem journal entries before any updating may occur. 
D) Nonroutine transactions are entered into the system by the treasurer's office.

Question 16

Periodic account reconciliations are a control that can be used to reduce the risk of employees creating unauthorized adjusting entries.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following are used to document entries made to update the general ledger?

Accepted Answer

A) general journal 
B) subsidiary journal 
C) subsidiary ledgers 
D) journal vouchers 
A) general journal 
B) subsidiary journal 
C) subsidiary ledgers 
D) journal vouchers

Question 18

The balanced scorecard attempts to solve what major issue associated with traditional accounting reports?

Accepted Answer

A) Traditional accounting reports focus too narrowly on financial performance. 
B) Traditional accounting reports are not easily understood by non-accountants. 
C) Traditional accounting reports are expensive to produce. 
D) Traditional accounting reports are produced too slowly to provide value. 
A) Traditional accounting reports focus too narrowly on financial performance. 
B) Traditional accounting reports are not easily understood by non-accountants. 
C) Traditional accounting reports are expensive to produce. 
D) Traditional accounting reports are produced too slowly to provide value.

Question 19

Adjusting entries that are made to reflect differences between the actual and recorded value of an asset or a change in accounting principle are called

Accepted Answer

A) reconciliations. 
B) revaluations. 
C) estimates. 
D) accruals. 
A) reconciliations. 
B) revaluations. 
C) estimates. 
D) accruals.

Question 20

One way of ensuring that recurring adjusting journal entries are made each month would be to

Accepted Answer

A) make all the entries a month in advance. 
B) rotate the responsibility among the accounting staff. 
C) program the entries to be made automatically. 
D) create a standard adjusting journal entry file. 
A) make all the entries a month in advance. 
B) rotate the responsibility among the accounting staff. 
C) program the entries to be made automatically. 
D) create a standard adjusting journal entry file.

Exam 16: General Ledger and Reporting System

Which type of graph is the most commonly used to display trends in financial data?

Standard XBRL taxonomies can cover most accounting situations.

A major way in which IFRS differs from GAAP that will affect the design of a company's general ledger and reporting system is an IFRS principle known as

XBRL stands for

At a minimum,a switch to IFRS from GAAP will affect companies' accounting information system by

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

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The amounts debited and credited are not equal.Please correct and try again." This is an example of a

Which of the following balanced scorecard dimensions provides measures on new products?

What control procedure(s)should be used to reduce the risk of unauthorized disclosure of the financial statements?

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The account number referenced in your journal entry does not exist.Create a new account?" This is an example of a

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

Which item below is not considered a major input to 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

Adjusting entries that are made to counteract the effects of errors found in the general ledger are called

Identify the most correct statement with regard to how the various accounting subsystems update the general ledger.

Periodic account reconciliations are a control that can be used to reduce the risk of employees creating unauthorized adjusting entries.

Which of the following are used to document entries made to update the general ledger?

The balanced scorecard attempts to solve what major issue associated with traditional accounting reports?

Adjusting entries that are made to reflect differences between the actual and recorded value of an asset or a change in accounting principle are called

One way of ensuring that recurring adjusting journal entries are made each month would be to

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

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