Question 1

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 2

Which of the following is true about accounting for fixed assets?

Accepted Answer

A)  Depreciation expense under IFRS will likely be higher than under GAAP, because acquisitions of assets with multiple components must be separately depreciated under IFRS, whereas under GAAP assets could be bundled and depreciated over the longest of the useful life for any of the components. 
B)  IFRS doesn't allow capitalization of any asset that separately accounts for less than 20% of total assets. 
C)  Depreciation expense under IFRS will likely be less than under GAAP, because standards for depreciable lives on asset classes are much longer than under GAAP. 
D)  IFRS and GAAP account for fixed assets in much the same way. 
A)  Depreciation expense under IFRS will likely be higher than under GAAP, because acquisitions of assets with multiple components must be separately depreciated under IFRS, whereas under GAAP assets could be bundled and depreciated over the longest of the useful life for any of the components. 
B)  IFRS doesn't allow capitalization of any asset that separately accounts for less than 20% of total assets. 
C)  Depreciation expense under IFRS will likely be less than under GAAP, because standards for depreciable lives on asset classes are much longer than under GAAP. 
D)  IFRS and GAAP account for fixed assets in much the same way.

Question 3

Budgets and performance reports should be developed on the basis of

Accepted Answer

A)  responsibility accounting. 
B)  generally accepted accounting principles. 
C)  financial accounting standards. 
D)  managerial accounting standards. 
A)  responsibility accounting. 
B)  generally accepted accounting principles. 
C)  financial accounting standards. 
D)  managerial accounting standards.

Question 4

IFRS is an acronym for what?

Accepted Answer

A)  International Financial Reporting Standards 
B)  Internal Forensic Response System 
C)  Input and Financial Reporting Standards 
D)  Internal Fault Recovery System 
A)  International Financial Reporting Standards 
B)  Internal Forensic Response System 
C)  Input and Financial Reporting Standards 
D)  Internal Fault Recovery System

Question 5

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 6

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 7

Concerning XBRL,which of the following statements is not true?

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 8

Which of the following is true about IFRS?

Accepted Answer

A)  Financial statements likely must be prepared using IFRS beginning in 2015. 
B)  The switch to IFRS is required by the Sarbanes-Oxley Act. 
C)  IFRS is only slightly different than US GAAP. 
D)  The switch to IFRS is cosmetic only there isn't any real impact on AIS. 
A)  Financial statements likely must be prepared using IFRS beginning in 2015. 
B)  The switch to IFRS is required by the Sarbanes-Oxley Act. 
C)  IFRS is only slightly different than US GAAP. 
D)  The switch to IFRS is cosmetic only there isn't any real impact on AIS.

Question 9

Which of the following scenarios will not be allowed under IFRS?

Accepted Answer

A)  A landscaping and garden retail store keeps piles of river rock, gravel, paving stones, and small decorative rocks in a fenced area on the side of the store. The store uses the most recent inventory costs when calculating cost of goods sold, since new inventory is piled on top of the older inventory. 
B)  A grocery store strictly enforces a shelf rotation policy, so that older inventory is always at the front and sold first. The store uses the oldest inventory costs to calculate cost of goods sold. 
C)  A farm chemical supplier maintains a large holding tank of chemicals, into which deliveries are periodically combined with the older chemicals. The supplier averages the cost of all inventory to calculate cost of goods sold. 
D)  All of the above are acceptable under IFRS. 
A)  A landscaping and garden retail store keeps piles of river rock, gravel, paving stones, and small decorative rocks in a fenced area on the side of the store. The store uses the most recent inventory costs when calculating cost of goods sold, since new inventory is piled on top of the older inventory. 
B)  A grocery store strictly enforces a shelf rotation policy, so that older inventory is always at the front and sold first. The store uses the oldest inventory costs to calculate cost of goods sold. 
C)  A farm chemical supplier maintains a large holding tank of chemicals, into which deliveries are periodically combined with the older chemicals. The supplier averages the cost of all inventory to calculate cost of goods sold. 
D)  All of the above are acceptable under IFRS.

Question 10

Recording interest earned on an investment is an example of which type of adjusting journal entry?

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 11

Adjusting entries that reflect events that have already occurred,but for which no cash flow has taken place are classified as

Accepted Answer

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

Question 12

Explain the benefits of XBRL.

Accepted Answer

XBRL (Extensible Business Reporting Lang

Question 13

A type of data entry control that would ensure that adjusting entries are posted to existing general ledger accounts is called a(n)________ check.

Accepted Answer

A)  validity 
B)  existence 
C)  closed loop verification 
D)  reasonableness 
A)  validity 
B)  existence 
C)  closed loop verification 
D)  reasonableness

Question 14

Who provides the adjusting entries for a well-designed general ledger and reporting system?

Accepted Answer

A)  various user departments 
B)  the treasurer's area 
C)  the other major AIS subsystems 
D)  the controller's area 
A)  various user departments 
B)  the treasurer's area 
C)  the other major AIS subsystems 
D)  the controller's area

Question 15

Discuss the value and role of budgets as managerial reports.

Accepted Answer

Budgets are managerial reports that can

Question 16

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 17

Communications technology and the Internet can be used to reduce the time and costs involved in disseminating financial statement information.Users of such financial information still struggle in that many recipients have different information delivery requirements and may have to manually reenter the information into their own decision analysis tools.The ideal solution to solve these problems and efficiently transmit financial information via the Internet is to use

Accepted Answer

A)  HTML code. 
B)  XML. 
C)  pdf file. 
D)  XBRL. 
A)  HTML code. 
B)  XML. 
C)  pdf file. 
D)  XBRL.

Question 18

If you believe a general ledger account was not adjusted properly or at all,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 19

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 20

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

Accepted Answer

An audit trail shows the path of a trans

Exam 16: General Ledger and Reporting System

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

Which of the following is true about accounting for fixed assets?

Budgets and performance reports should be developed on the basis of

IFRS is an acronym for what?

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

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

Concerning XBRL,which of the following statements is not true?

Which of the following is true about IFRS?

Which of the following scenarios will not be allowed under IFRS?

Recording interest earned on an investment is an example of which type of adjusting journal entry?

Adjusting entries that reflect events that have already occurred,but for which no cash flow has taken place are classified as

Explain the benefits of XBRL.

A type of data entry control that would ensure that adjusting entries are posted to existing general ledger accounts is called a(n)________ check.

Who provides the adjusting entries for a well-designed general ledger and reporting system?

Discuss the value and role of budgets as managerial reports.

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

If you believe a general ledger account was not adjusted properly or at all,you should prepare a general ledger control report listing journal vouchers in

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

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

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

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