Accounting Information Systems 8th Edition Hall Test Bank

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Accounting Information Systems 8th Edition Hall Test Bank

 

Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
Chapter 2—Introduction to Transaction Processing
TRUE/FALSE
1. Processing more transactions at a lower unit cost makes batch processing more efficient than real-time
systems.
ANS: T PTS: 1
2. The process of acquiring raw materials is part of the conversion cycle.
ANS: F PTS: 1
3. Directing work-in-process through its various stages of manufacturing is part of the conversion cycle.
ANS: T PTS: 1
4. The portion of the monthly bill from a credit card company is an example of a turn-around document.
ANS: T PTS: 1
5. The general journal is used to record recurring transactions that are similar in nature.
ANS: F PTS: 1
6. Document flowcharts are used to represent systems at different levels of detail.
ANS: F PTS: 1
7. Data flow diagrams represent the physical system.
ANS: F PTS: 1
8. System flowcharts are often used to depict processes that are handled in batches.
ANS: T PTS: 1
9. Program flowcharts depict the type of media being used (paper, magnetic tape, or disks) and terminals.
ANS: F PTS: 1
10. System flowcharts represent the input sources, programs, and output products of a computer system.
ANS: T PTS: 1
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
11. Program flowcharts are used to describe the logic represented in system flowcharts.
ANS: T PTS: 1
12. Batch processing systems can store data on direct access storage devices.
ANS: T PTS: 1
13. Backups are automatically produced in a direct access file environment.
ANS: F PTS: 1
14. The box symbol represents a temporary file.
ANS: F PTS: 1
15. Auditors may prepare program flowcharts to verify the correctness of program logic.
ANS: T PTS: 1
16. A control account is a general ledger account which is supported by a subsidiary ledger.
ANS: T PTS: 1
17. The most significant characteristic of direct access files is access speed.
ANS: T PTS: 1
18. Real time processing is used for routine transactions in large numbers.
ANS: F PTS: 1
19. Batch processing is best used when timely information is needed because this method processes data
efficiently.
ANS: F PTS: 1
20. An inverted triangle with the letter “N” represents a file in “name” order.
ANS: F PTS: 1
21. Real-time processing in systems that handle large volumes of transactions each day can create
operational inefficiencies.
ANS: T PTS: 1
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
22. Operational inefficiencies occur because accounts unique to many concurrent transactions need to be
updated in real time.
ANS: F PTS: 1
23. Operational inefficiencies occur because accounts common to many concurrent transactions need to be
updated in real time.
ANS: T PTS: 1
24. Batch processing of non-critical accounts improves operational efficiency.
ANS: T PTS: 1
25. Batch processing of accounts common to many concurrent transactions reduces operational efficiency.
ANS: F PTS: 1
26. The block code is the coding scheme most appropriate for a chart of accounts.
ANS: T PTS: 1
27. Sequential codes may be used to represent complex items or events involving two or more pieces of
related data.
ANS: F PTS: 1
28. Block codes restrict each class to a pre-specified range.
ANS: T PTS: 1
29. For a given field size, a system that uses alphabetic codes can represent far more situations than a
system with that uses numeric codes.
ANS: T PTS: 1
30. Mnemonic codes are appropriate for items in either an ascending or descending sequence, such as the
numbering of checks or source documents.
ANS: F PTS: 1
31. The flat-file approach is most often associated with so-called legacy systems.
ANS: T PTS: 1
32. In a flat-file system, files are easily shared by users.
ANS: F PTS: 1
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
MULTIPLE CHOICE
1. Which system is not part of the expenditure cycle?
a. cash disbursements
b. payroll
c. production planning/control
d. purchases/accounts payable
ANS: C PTS: 1
2. Which system produces information used for inventory valuation, budgeting, cost control,
performance reporting, and make-buy decisions?
a. sales order processing
b. purchases/accounts payable
c. cash disbursements
d. cost accounting
ANS: D PTS: 1
3. Which of the following is a turn-around document?
a. remittance advice
b. sales order
c. purchase order
d. payroll check
ANS: A PTS: 1
4. The order of the entries made in the ledger is by
a. transaction number
b. account number
c. date
d. user
ANS: B PTS: 1
5. The order of the entries made in the general journal is by
a. date
b. account number
c. user
d. customer number
ANS: A PTS: 1
6. In general, a special journal would not be used to record
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
a. sales
b. cash disbursements
c. depreciation
d. purchases
ANS: C PTS: 1
7. Which account is least likely to have a subsidiary ledger?
a. sales
b. accounts receivable
c. fixed assets
d. inventory
ANS: A PTS: 1
8. Subsidiary ledgers are used in manual accounting environments. What file is comparable to a
subsidiary ledger in a computerized environment?
a. archive file
b. reference file
c. transaction file
d. master file
ANS: D PTS: 1
9. A journal is used in manual accounting environments. What file is comparable to a journal in a
computerized environment?
a. archive file
b. reference file
c. transaction file
d. master file
ANS: A PTS: 1
10. In a computerized environment, a list of authorized suppliers would be found in the
a. master file
b. transaction file
c. reference file
d. archive file
ANS: C PTS: 1
11. Which of the following is an archive file?
a. an accounts payable subsidiary ledger
b. a cash receipts file
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
c. a sales journal
d. a file of accounts receivable that have been written off
ANS: D PTS: 1
12. Which document is not a type of source document?
a. a sales order
b. an employee time card
c. a paycheck
d. a sales return receipt
ANS: C PTS: 1
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
13. The most important purpose of a turnaround document is to
a. serve as a source document
b. inform a customer of the outstanding amount payable
c. provide an audit trail for the external auditor
d. inform the bank of electronic funds deposits
ANS: A PTS: 1
14. Which type of graphical documentation represents systems at different levels of detail?
a. data flow diagram
b. document flowchart
c. system flowchart
d. program flowchart
ANS: A PTS: 1
15. Data flow diagrams
a. depict logical tasks that are being performed, but not who is performing them
b. illustrate the relationship between processes, and the documents that flow between them
and trigger activities
c. represent relationships between key elements of the computer system
d. describe in detail the logic of the process
ANS: A PTS: 1
16. System flowcharts
a. depict logical tasks that are being performed, but not who is performing them
b. illustrate the relationship between database entities in systems.
c. represent relationships between key elements of both manual and computer systems.
d. describe the internal logic of computer applications in systems. .
ANS: CPTS: 1
17. When determining the batch size, which consideration is the least important?
a. achieving economies by grouping together large numbers of transactions
b. complying with legal mandates
c. providing control over the transaction process
d. balancing the trade off between batch size and error detection
ANS: B PTS: 1
18. In contrast to a real-time system, in a batch processing system
a. there is a lag between the time when the economic event occurs and the financial records
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
are updated
b. relatively more resources are required
c. a greater resource commitment per unit of output is required
d. processing takes place when the economic event occurs
ANS: A PTS: 1
19. In contrast to a batch processing system, in a real-time system
a. a lag occurs between the time of the economic event and when the transaction is recorded
b. relatively fewer hardware, programming, and training resources are required
c. a lesser resource commitment per unit of output is required
d. processing takes place when the economic event occurs
ANS: D PTS: 1
20. The type of transaction most suitable for batch processing is
a. airline reservations
b. credit authorization
c. payroll processing
d. adjustments to perpetual inventory
ANS: C PTS: 1
21. The type of transaction most suitable for real-time processing is
a. recording fixed asset purchases
b. recording interest earned on long-term bonds
c. adjusting prepaid insurance
d. recording a sale on account
ANS: D PTS: 1
22. Which step is not found in batch processing using sequential files?
a. control totals
b. sort runs
c. edit runs
d. immediate feedback of data entry errors
ANS: D PTS: 1
23. Both the revenue and the expenditure cycle can be viewed as having two key parts. These are
a. manual and computerized
b. physical and financial
c. input and output
d. batch and real-time
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
ANS: B PTS: 1
24. All of the following can provide evidence of an economic event except
a. source document
b. turn-around document
c. master document
d. product document
ANS: C PTS: 1
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
25. Which method of processing does not use the destructive update approach?
a. batch processing using direct access files
b. real-time processing
c. batch processing using sequential files
d. all of the above use the destructive update approach
ANS: C PTS: 1
26. Which symbol represents a data store?
a.
b.
c.
d.
ANS: B PTS: 1
27. Which symbol represents a manual operation?
a.
b.
c.
d.
ANS: D PTS: 1
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
28. Which symbol represents accounting records?
a.
b.
c.
d.
ANS: A PTS: 1
29. Which symbol represents a document?
a.
b.
c.
d.
ANS: B PTS: 1
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
30. Which symbol represents a magnetic tape (sequential storage device)?
a.
b.
c.
d.
ANS: D PTS: 1
31. Which symbol represents a decision?
a.
b.
c.
d.
ANS: A PTS: 1
Accounting Information Systems, 8e—Test Bank, Chapter 2
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
32. The characteristics that distinguish between batch and real-time systems include all of the following
except
a. time frame
b. resources used
c. file format
d. efficiency of processing
ANS: C PTS: 1
33. A file that stores data used as a standard when processing transactions is
a. a reference file
b. a master file
c. a transaction file
d. an archive file
ANS: A PTS: 1
34. Sequential storage means
a. data is stored on tape
b. access is achieved through an index
c. access is direct
d. reading record 100 requires first reading records 1 to 99
ANS: D PTS: 1
35. Real-time processing would be most beneficial in handling a firm’s
a. fixed asset records
b. retained earning information
c. merchandise inventory
d. depreciation records
ANS: C PTS: 1
36. Which accounting application is least suited to batch processing?
a. general ledger
b. vendor payments
c. sales order processing
d. payroll
ANS: C PTS: 1