1.A data processing system can be defined as:

A) activities that are performed on inputs

B) any device used to capture data including manual keying and scanning.

C) any process that an accountant is involved in.

D) something that takes inputs, applies a set of rules or processes to the inputs and generates outputs

2.An advantage of sequential coding of purchase orders is that

A) missing or unrecorded documents can be identified

B) the code itself lacks informational content

C) items cannot be inserted

D) deletions affect the sequence

3.Which of the following is an advantage of the Evaluated Receipt Settlement (ERS) process?

A) Invoices coming from the supplier are posted automatically

B) Goods receipt and invoice receipt are cleared automatically

C) Prices are automatically adjusted

D) Invoice verification is no longer affected by price and quantity variances

4.Batch processing is the periodic updating of the data stored about resources and agents. Which of the following is most suitable for batch processing

A) hotel reservations

B) recording sales

C) adjustments to perpetual inventory

D) adjustments for accruals

5.______________is (are) a series interconnecting activities that work to achieve some predetermined organisational goal

A) An economic event

B) Accounting transactions

C) A business process

D) A Operational objective

6.Which of following journal entry is most appropriate for the use of real time processing

A) recording fixed asset purchases

B) recording interest earned on long term bonds

C) adjusting prepaid insurance

D) recording a sale on account