Question 1

What is the most frequent revenue cycle transaction?

Accepted Answer

A)  purchase of inventory
B)  receipt of cash
C)  sale to customer
D)  billing

Question 2

A general journal

Accepted Answer

A)  would be used to record monthly depreciation entries.
B)  simplifies the process of recording large numbers of repetitive transactions.
C)  records all detailed data for any general ledger account that has individual sub-accounts.
D)  contains summary-level data for every account of the organization. A

Question 3

In Petaluma,California,electric power is provided to consumers by Pacific Power.Each month Pacific Power mails bills to 186,000 households and then processes payments as they are received.What is the best way for this business to ensure that payment data entry is efficient and accurate?

Accepted Answer

A)  well-designed paper forms
B)  source data automation
C)  turnaround documents
D)  sequentially numbered bills

Question 4

In an ERP system,the module used to record data about transactions in the disbursement cycle is called

Accepted Answer

A)  order to cash.
B)  purchase to pay.
C)  financial.
D)  customer relationship management.

Question 5

What is the first step in the data processing cycle?

Accepted Answer

A)  output
B)  storage
C)  processing
D)  input

Question 6

John Pablo works in the accounting department of a multinational manufacturing company.His job includes updating accounts payable based on purchase orders and checks.His responsibilities are part of the company's

Accepted Answer

A)  revenue cycle.
B)  expenditure cycle.
C)  financing cycle.
D)  production cycle.

Question 7

Source data automation refers to

Accepted Answer

A)  using devices to capture transaction data in machine-readable form at the time the transaction is initiated.
B)  using the internet as the operating platform of an accounting information system.
C)  using an accounting information system to electronically bill customers.
D)  using an accounting information system to automate a previously manual transaction process.

Question 8

Build Smarts is a supplier of building materials to more than 150 builders in the state of Illinois.What is the best way for Build Smarts to ensure that all sales are recorded?

Accepted Answer

A)  well-designed paper forms
B)  source data automation
C)  turnaround documents
D)  sequentially numbered sales invoices

Question 9

Data must be collected about three facets of each business activity.What are they?

Accepted Answer

A)  the business activity, the resources it affects, the people who participate
B)  the business activity, the transactions it creates, the impact on the financial statements
C)  the inputs, outputs and processes used
D)  who is involved, what was sold, how much was paid

Question 10

Which step below is not considered to be part of the data processing cycle?

Accepted Answer

A)  data input
B)  feedback from external sources
C)  data storage
D)  data processing

Question 11

In an ERP system,the module used to record marketing data is called

Accepted Answer

A)  marketing.
B)  advertising.
C)  customer relationship management.
D)  customer service.

Question 12

A specialized journal would be most likely to be used to enter

Accepted Answer

A)  sales transactions.
B)  monthly depreciation adjustments.
C)  annual closing entries.
D)  stock issuance transactions.

Question 13

In transaction processing,generally which activity comes first?

Accepted Answer

A)  recording data in a journal
B)  posting items to special journals
C)  capturing data on source documents
D)  recording data in a general ledger

Question 14

Which of the following statement is true about master file?

Accepted Answer

A)  Individual master file records are permanent.
B)  Individual master file records may change frequently.
C)  Individual master file records are sometime being referred to as date value.
D)  Individual master file records are sometime being referred to as entity.

Question 15

The type of journal that records large numbers of repetitive transactions such as sales,cash receipts,and cash disbursements is

Accepted Answer

A)  a general journal.
B)  a subsidiary journal.
C)  a specialized journal.
D)  a detailed transaction journal.

Question 16

Which of the following is conceptually similar to a journal in a manual AIS?

Accepted Answer

A)  database
B)  master file
C)  record
D)  transaction file D

Question 17

Which statement below is true with regards to an audit trail?

Accepted Answer

A)  An audit trail begins with the general journal.
B)  An audit trail provides the means to check the accuracy and validity of ledger postings.
C)  An audit trail is a summary of recorded transactions.
D)  An audit trail is automatically created in every computer-based information system.

Question 18

In an ERP system,the module used to record data about transactions in the production cycle is called

Accepted Answer

A)  order to cash.
B)  purchase to pay.
C)  manufacturing.
D)  logistics.

Question 19

Pre-numbering of shipping documents helps to verify that

Accepted Answer

A)  documents have been used in order.
B)  company policies were followed.
C)  all transactions have been recorded.
D)  source data automation was used to capture data. C

Question 20

Which of the following statements regarding special journals is not true?

Accepted Answer

A)  The balances in a special journal must always reconcile to the general ledger.
B)  Special journals are used to record large numbers of repetitive transactions.
C)  Special journals are periodically summarized and posted to the general ledger.
D)  Special journals provide a specialized format for recording similar transactions.

Exam 2: Overview of Transaction Processing and Enterprise Resource Planning Systems

What is the most frequent revenue cycle transaction?

Correct AnswerverifiedShow Answer

A general journal

Correct AnswerverifiedA

In Petaluma,California,electric power is provided to consumers by Pacific Power.Each month Pacific Power mails bills to 186,000 households and then processes payments as they are received.What is the best way for this business to ensure that payment data entry is efficient and accurate?

Correct AnswerverifiedShow Answer

In an ERP system,the module used to record data about transactions in the disbursement cycle is called

Correct AnswerverifiedShow Answer

What is the first step in the data processing cycle?

Correct AnswerverifiedShow Answer

John Pablo works in the accounting department of a multinational manufacturing company.His job includes updating accounts payable based on purchase orders and checks.His responsibilities are part of the company's

Correct AnswerverifiedShow Answer

Source data automation refers to

Correct AnswerverifiedShow Answer

Build Smarts is a supplier of building materials to more than 150 builders in the state of Illinois.What is the best way for Build Smarts to ensure that all sales are recorded?

Correct AnswerverifiedShow Answer

Data must be collected about three facets of each business activity.What are they?

Correct AnswerverifiedShow Answer

Which step below is not considered to be part of the data processing cycle?

Correct AnswerverifiedShow Answer

In an ERP system,the module used to record marketing data is called

Correct AnswerverifiedShow Answer

A specialized journal would be most likely to be used to enter

Correct AnswerverifiedShow Answer

In transaction processing,generally which activity comes first?

Correct AnswerverifiedShow Answer

Which of the following statement is true about master file?

Correct AnswerverifiedShow Answer

The type of journal that records large numbers of repetitive transactions such as sales,cash receipts,and cash disbursements is

Correct AnswerverifiedShow Answer

Which of the following is conceptually similar to a journal in a manual AIS?

Correct AnswerverifiedD

Which statement below is true with regards to an audit trail?

Correct AnswerverifiedShow Answer

In an ERP system,the module used to record data about transactions in the production cycle is called

Correct AnswerverifiedShow Answer

Pre-numbering of shipping documents helps to verify that

Correct AnswerverifiedC

Which of the following statements regarding special journals is not true?

Correct AnswerverifiedShow Answer

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A

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D

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C

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