Question 1

Depreciation expense and bad debt expense are examples of which type of adjusting journal entry?

Accepted Answer

A)  deferrals 
B)  accruals 
C)  revaluations 
D)  estimates 
A)  deferrals 
B)  accruals 
C)  revaluations 
D)  estimates D

Question 2

Adjusting entries that are made to recognize revenue that has been received but not yet earned are classified as

Accepted Answer

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

Question 3

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. A

Question 4

Which of the following balanced scorecard dimensions provides measures on how efficiently and effectively the organization is performing key business processes?

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 5

Cheryl Liao is an accountant at Folding Squid Technologies.While making an adjusting entry to the general ledger,she received the following error message,"Your journal entry must be a numeric value.Please reenter." This message was the result 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 6

Performance reports for cost centers should compare actual versus budget ________ costs.

Accepted Answer

A)  controllable 
B)  uncontrollable 
C)  fixed 
D)  variable 
A)  controllable 
B)  uncontrollable 
C)  fixed 
D)  variable

Question 7

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 8

Adjusting entries that reflect a change in accounting principle used to value inventories are classified as

Accepted Answer

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

Question 9

Performance reports for sales deparments should compare actual versus budget

Accepted Answer

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

Question 10

Cheryl Liao is an accountant at Folding Squid Technologies.While making an adjusting entry to the general ledger,she received the following error message,"The account number referenced in your journal entry does not exist.Do you want to create a new account?" This message was the result 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

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 12

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 13

Explain the purpose of a journal voucher file.

Accepted Answer

A journal voucher is a form on which jou

Question 14

The operating budget

Accepted Answer

A)  compares estimated cash flows from operations with planned expenditures. 
B)  shows cash inflows and outflows for each capital project. 
C)  depicts planned revenues and expenditures for each organizational unit. 
D)  is used to plan for the purchase and retirement of property, plant, and equipment. 
A)  compares estimated cash flows from operations with planned expenditures. 
B)  shows cash inflows and outflows for each capital project. 
C)  depicts planned revenues and expenditures for each organizational unit. 
D)  is used to plan for the purchase and retirement of property, plant, and equipment.

Question 15

The general ledger system of an organization should be designed to serve the information requirements of both internal and external users.This means that the system should support

Accepted Answer

A)  producing expansive regular periodic reports to cover all information needs. 
B)  the real-time inquiry needs of all users. 
C)  producing regular periodic reports and respond to real-time inquiry needs. 
D)  access by investors and creditors of the organization to general ledger balances. 
A)  producing expansive regular periodic reports to cover all information needs. 
B)  the real-time inquiry needs of all users. 
C)  producing regular periodic reports and respond to real-time inquiry needs. 
D)  access by investors and creditors of the organization to general ledger balances.

Question 16

Financial statements are prepared in a certain sequence.Which statement is prepared last in the sequence?

Accepted Answer

A)  the adjusted trial balance 
B)  the income statement 
C)  the balance sheet 
D)  the statement of cash flows 
A)  the adjusted trial balance 
B)  the income statement 
C)  the balance sheet 
D)  the statement of cash flows

Question 17

Information about financing and investing activities for use in making general ledger entries is typically provided by the

Accepted Answer

A)  budget department. 
B)  controller. 
C)  treasurer. 
D)  chief executive officer. 
A)  budget department. 
B)  controller. 
C)  treasurer. 
D)  chief executive officer.

Question 18

An adjusting entry made at the end of an accounting period that reflects the exchange of cash prior to performance of a related event is classified as a(n)

Accepted Answer

A)  accrual entry. 
B)  deferral entry. 
C)  revaluation entry. 
D)  correcting entry. 
A)  accrual entry. 
B)  deferral entry. 
C)  revaluation entry. 
D)  correcting entry.

Question 19

Entries to update the general ledger are often documented by which of the following?

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 20

Departments that mostly provide services to other units and charge those units for services rendered should be evaluated as ________ centers.

Accepted Answer

A)  cost 
B)  profit 
C)  investment 
D)  revenue 
A)  cost 
B)  profit 
C)  investment 
D)  revenue

Exam 16: General Ledger and Reporting System

Depreciation expense and bad debt expense are examples of which type of adjusting journal entry?

Adjusting entries that are made to recognize revenue that has been received but not yet earned are classified as

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

Which of the following balanced scorecard dimensions provides measures on how efficiently and effectively the organization is performing key business processes?

Cheryl Liao is an accountant at Folding Squid Technologies.While making an adjusting entry to the general ledger,she received the following error message,"Your journal entry must be a numeric value.Please reenter." This message was the result of a

Performance reports for cost centers should compare actual versus budget ________ costs.

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

Adjusting entries that reflect a change in accounting principle used to value inventories are classified as

Performance reports for sales deparments should compare actual versus budget

Cheryl Liao is an accountant at Folding Squid Technologies.While making an adjusting entry to the general ledger,she received the following error message,"The account number referenced in your journal entry does not exist.Do you want to create a new account?" This message was the result of a

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

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.

Explain the purpose of a journal voucher file.

The operating budget

The general ledger system of an organization should be designed to serve the information requirements of both internal and external users.This means that the system should support

Financial statements are prepared in a certain sequence.Which statement is prepared last in the sequence?

Information about financing and investing activities for use in making general ledger entries is typically provided by the

An adjusting entry made at the end of an accounting period that reflects the exchange of cash prior to performance of a related event is classified as a(n)

Entries to update the general ledger are often documented by which of the following?

Departments that mostly provide services to other units and charge those units for services rendered should be evaluated as ________ centers.

Accounting Information Systems: an Overview

Overview of Transaction Processing and Erp Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Information Systems Controls for System Reliability Part 1: Information Security

Information Systems Controls for Systems Reliability Part 2: Confidentiality and Privacy

Information Systems Controls for Systems Reliability Part 3: Processing Integrity and Availability

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

The Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

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.