ACCG100 Lecture Notes - Lecture 7: Financial Statement, Income Statement, Financial Accounting
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Question 1
Identify the item below that is not one of the four different types of data processing activities.
| deleting | ||
| reading | ||
| creating | ||
| using |
Question 2
All of the following are advantages of an ERP system except
| ERPs permit manufacturing plants to receive new orders in real time. | ||
| in an ERP, data input is captured or keyed once. | ||
| it takes considerable experience and training to use an ERP system effectively. | ||
| ERPs permit management to gain greater visibility into every area of the enterprise. |
Question 3
Sam Jones has been the controller of Downtown Tires for 25 years. Ownership of the firm recently changed hands and the new owners are conducting an audit of the financial records. The audit has been unable to reproduce financial reports that were prepared by Sam. While there is no evidence of wrongdoing, the auditors are concerned that the discrepancies might contribute to poor decisions. Which of the following characteristics of useful information is absent in the situation described above?
| relevant | ||
| reliable | ||
| complete | ||
| timely | ||
| understandable | ||
| verifiable | ||
| accessible |
Question 4
An ERP system might facilitate the purchase of direct materials by all of the following except
| preparing a purchase order when inventory falls to reorder point. | ||
| routing a purchase order to a purchasing agent for approval. | ||
| communicating a purchase order to a supplier. | ||
| selecting the best supplier by comparing bids. |
Question 5
Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and condition are provided for each fan, along with many pictures of each fan. In Antia's database, the price of the Japanese fans is a(n)
| entity. | ||
| attribute. | ||
| field. | ||
| record. |
Question 6
Which of the following is not considered a source document?
| A copy of the company's shipping document. | ||
| A copy of the company's ledger. | ||
| A copy of the company's sales journal. | ||
| A copy of the company's financial statements. |
Question 7
In an ERP system, the module used to record data about transactions in the disbursement cycle is called
| financial. | ||
| order to cash. | ||
| customer relationship management. | ||
| purchase to pay. |
Question 8
Baggins Incorporated identifies new product development and product improvement as the top corporate goals. An employee developed an innovation that will correct a shortcoming in one of the company's products. Although Baggins current Return on Investment (ROI) is 12%, the product innovation is expected to generate ROI of only 10%. As a result, awarding bonuses to employees based on ROI resulted in
| goal conflict. | ||
| information overload. | ||
| decreased value of information. | ||
| goal congruence. |
Question 9
________ are examples of activities that constitute inbound logistics.
| Activities that transform inputs into final products or services | ||
| Activities that provide post-sale support to customers | ||
| Activities that consist of receiving, storing, and distributing the materials used as inputs by the organization to create goods and/or services it sells | ||
| Activities that help customers to buy the organization's products or services |
Question 10
In which transaction cycle would information for inventory purchases be most likely to pass between internal and external accounting information systems?
| the revenue cycle | ||
| the expenditure cycle | ||
| the human resources / payroll cycle | ||
| the financing cycle |
Question 11
The collection of customer payment is part of which transaction cycle?
| the human resources cycle | ||
| the production cycle | ||
| the revenue cycle | ||
| the expenditure cycle |
Question 12
Which of the following is an example of source data automation?
| POS (point-of-sale) scanners in retail stores | ||
| a bill of lading | ||
| a subsidiary ledger | ||
| a utility bill |
Question 13
All of the following are guidelines for developing a good coding system except
| be as sophisticated as possible to promote usage. | ||
| be consistent with its intended use. | ||
| be flexible to allow for growth. | ||
| be consistent with the company's organization structure. |
Question 14
What is a key decision that needs to be made with regards to borrowing money from lenders?
| the location | ||
| pro forma income statement | ||
| how much capital to acquire | ||
| job descriptions |
Question 15
Identify the false statement below.
| A service company does not have an inventory system. | ||
| Retail stores do not have a production cycle. | ||
| Financial institutions have installment-loan cycles. | ||
| Every organization should implement every transaction cycle module. |
Question 16
The chart of accounts of a fast-food restaurant would probably include
| a list of customers. | ||
| a list of financial statement accounts. | ||
| a list of vendors. | ||
| a list of employees. |
Question 17
Which statement below regarding the AIS is false?
| Traditionally, most AIS have been designed so that both financial and operational data are stored in a manner that facilitates their integration in reports. | ||
| The AIS must be able to provide managers with detailed and operational information about the organization's performance. | ||
| Both traditional financial measures and operational data are required for proper and complete evaluation of performance. | ||
| The AIS was often just one of the information systems used by an organization to collect and process financial and nonfinancial data. |
Question 18
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?
| well-designed paper forms | ||
| turnaround documents | ||
| source data automation | ||
| sequentially numbered bills |
Question 19
Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If the same information can be reproduced by two independent and knowledgeable people, it is representative of the characteristic of
| verifiability. | ||
| truthful. | ||
| relevance. | ||
| reliability. |
Question 20
Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and condition are provided for each fan, along with many pictures of each fan. In Antia's database, the data about each Japanese fan represents a(n)
| entity. | ||
| attribute. | ||
| field. | ||
| record. |
