1) The general ledger and reporting system consists of the ________ involved in ________ the general ledger and ________ reports. A) business transactions; updating; processing B) data processing; business transactions for; printing C) information processing; updating; creating D) business transactions; data processing; preparing 2) Identify the most correct statement with regard to how the various accounting subsystems update the general ledger. 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. 3) Immediately after the adjusting entries are posted, the next step in the general ledger and reporting system is to prepare A) an adjusted trial balance. B) closing entries. C) financial statements. D) an unadjusted trial balance. 4) Marina Filimena is an accountant at Jasmina Hair Products. Marina received the following error message while making an adjusting entry to the general ledger: "Your journal entry must be a numeric value. Please reenter." This is an example of a A) validity check. B) field check. C) zero-balance check. D) completeness test. 5) Which of the following statements is not true regarding XBRL? 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. 6) Budgets used for internal planning purposes and performance evaluation should be developed on the basis of A) responsibility accounting. B) generally accepted accounting principles. C) financial accounting standards. D) managerial accounting standards. 2 7) Which of the following balanced scorecard dimensions provides measures on how efficiently and effectively the organization is performing key business processes? A) financial B) internal operations C) innovation and learning D) customer 8) Which of the following statements is true about the chart below? 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. 9) Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat. 10) What is the correct sequence of the phases in the systems development life cycle? A) conceptual design, physical design, system analysis, implementation and conversion, and operations and maintenance B) operations and maintenance, conceptual design, system analysis, physical design, implementation and conversion C) system analysis, conceptual design, physical design, implementation and conversion, and operations and maintenance D) system analysis, physical design, conceptual design, and operations and maintenance, implementation and conversion