accounting and information system

2.10 Answer the following 10 multiple choice questions. Which of the following statements is (are) true? a. Tunaround documents are company output sent to an external party and returned as b. Data is one of a company's most important resources but, to function properly, most c. Each type of entity possesses the same set of attributes or characteristics of interest an input document. organizations do not have to have the data readily and easily accessible. that are stored, but the specific data values for those attributes will differ depending on the entity processing. requires conscious effort and involvement by top management. d. Online data processing is almost always cheaper and more efficient than batch e. Reaping the potential benefits of ERP systems and mitigating their disadvantages 2. Which of the following statements is (are) true? a. The data capture or input process is usually triggered by a top management decision b. With sequence codes, items are numbered consecutively to account for all items, and missing items cause a gap in the numerical sequence c. Cumulative accounting information is stored in general and subsidiary journals. d. Computers store data in a field; the fields containing data about entity attributes constitute a record e. Updating done periodically, such as daily or weekly, is referred to as batch processing 3. Which of the following statements is (are) true? a. Source data automation devices capture transac b. General ledgers are often used for accounts receivable, inventory, fixed assets, c. Master files are permanent and exist across fiscal periods; individual master file d. When choosing an ERP system, make sure it has a module for every critical company e. If an ERP system does not meet your needs, t can almost always be inexpensively tion data in paper form at the time and place of their origin. and accounts payable records may change frequently proce ss and that you are not p or modules that you do not need. modified to meet your unique needs 4. Which of the following statements is (are) true? a. Using source data automation or well-designed turnaround documents and data entry b. If the sum of all subsidiary ledger account balances does not equal its general ledger c. Online, real-time processing updates transactions as they occur, helping ensure stored d. s usually best to let a user determine what data to input rather than have data input e. A group code is derived from the description of the item and is usually easy to screens helps ensure captured data are accurate and complete control account balance, a recording error has occurred. information is current and useful in making decision screens list the data the user needs to enter memorize c. Online, real-time processing updates transactions as they occur, helping ensure stored information is current and useful in making decision. d. t s usually best to let a user determine what data to input rather than have data input screens list the data the user needs to enter. e. A group code is derived from the description of the item and is usually easy to memorize 5. Which of the following statements is (are) true? a. Online batch processing is where transaction data are entered, edited, and processed b. ERP implementation costs for large companies with multiple sites are usually about c. Well-designed documents and screens improve accuracy and completeness by d. Data in ledgers is organized logically using coding techniques that assign numbers e. In an ERP system, data entry controls such as validating data item and checking them as they occur half the cost of the ERP user license providing instructions or prompts about what data to collect. or letters to items to classify and organize them. for accuracy at the time of initial entry are not needed. 6. Which of the following statements is (are) true? a. Input controls are improved by using pre-numbered source documents or by the b. With mnemonic codes, blocks of numbers are reserved for specific categories c. As ERP modules do not automatically trigger additional actions in other modules d. In an integrated ERP system, undetected data entry errors can automatically propagate e. A purchase to pay ERP module facilitates production scheduling, work-in-process, system automatically assigning a sequent of data. it is less important to understand business proce throughout the system. quality control, cost management, and manufacturing processes. ial number to each transaction. sses and their interactions. 7. Which of the following statements is (are) true? a. To ensure credit sales policies are followed, the system can be programmed to check a customer's credit limit and payment history b. A transaction file contains records of individual business transactions and is similar to a general ledger in a manual AIS c. An ERP system uses a centralized database to share information across business processes and coordinate activities. d. It is difficult for an ERP system to provide management with the up-to-date informa tion needed to plan, control, and evaluate an organization's business. e. Use of pre-numbered documents makes it harder to verify that all transactions have been recorded and that none has been misplaced 8. Which of the following statements is (are) true a. A chart of accounts facilitates preparing financial statements because data stored in individual accounts can easily be summed for presentation. b. A database query can provide the information needed to deal with problems and questions that need rapid action or answers. c. Repetitive and frequently used database queries are usually developed by users; one-time queries are usually developed by information systems specialists. d. Transaction files are permanent and must be maintained for several years for backup purposes. e. A journal entry shows the accounts and amounts to be debited and credited 9. Which of the following statements is (are) true? a. Transaction data are almost always recorded in a ledger before they are entered into a journal b. Documents are records of transaction or other company data that can be printed out or stored as electronic images in a computer c. ERP systems are not effective in integrating nonfinancial company operations with a traditional accounting system. d. Since batch processing data are current and accurate only immediately after process- ing, it is used for applications that do not need frequent updating e. Well-designed screens improve accuracy and completeness by using checkoff boxes or pull-down menus to present the available options 10. Which of the following statements is (are) true? a. An audit tai is a transaction path through a data processing system from point of origin to final output, but not backward from final output to point of origin b. The need for reports should be periodically assessed, because they are often prepared 10. Which of the following statements is (are) true? a. An audit trail is a transaction path through a data processing system from point of b. The need for reports should be periodically assessed, because they are often prepared c. An AIS has traditionally been referred to as a transaction processing system because d. Accountants and systems developers do not need to understand how data are captured e. A master file, like a ledger in a manual AIS, stores cumulative information about an origin to final output, but not backward from final output to point of origin. long after they are needed, wasting time, money, and resources. its only concern was financial data and accounting transactions. organized, stored, processed, or accessed organization