related general ledger account

CIS430 Unit 2 Quiz C2

Question 1

Which of the following is false?

A reference file stores data that are used as standards for processing transactions

A master file generally contains account data

An archive file contains records of past transactions that are retained for future reference

A transaction file is a temporary file of transaction records used to change or update data in a master file

All of the above are true

Question 2

Which of the following is true of the relationship between subsidiary ledgers and general ledger accounts?

The relationship between the two provides an audit trail from the financial statements to the source documents

The two contain different and unrelated data

All general ledger accounts have subsidiaries

The total of subsidiary ledger accounts usually exceeds the total in the related general ledger account

Question 3

Which of the following statements is NOT true?

Sorting records that are coded alphabetically tends to be more difficult for users than sorting numeric sequences

Mnemonic coding requires the user to memorize codes

Sequential codes carry no information content beyond their order in the sequence

Mnemonic codes are limited in their ability to represent items within a class

Question 4

Which statement is NOT true?

Business activities begin with the acquisition of materials, property, and labor in exchange for cash

The conversion cycle includes the task of determining raw materials requirements

Manufacturing firms have a conversion cycle but retail firms do not

A payroll check is an example of a product document of the payroll system

Question 5

Which statement is NOT correct?

Indexed random files use disk storage space efficiently

Indexed random files are dispersed throughout the storage device without regard for physical proximity with related records

Indexed random files are efficient when processing a large portion of a file at one time

Indexed random files are easy to maintain in terms of adding records

Question 6

A coding scheme in the form of acronyms and other combinations that convey meaning is

sequential code

block code

alphabetic code

mnemonic code

Question 7

Which statement is NOT correct?

Records in an indexed random file are dispersed throughout a disk without regard to their physical disks

In a sequential structure the application starts at the geginning of the file and process each record in sequence

Sequential file systems are not efficient when the user is interested in locating only one record in the file

The sequential access method allows accessing a record directly

Question 8

2 out of 2 points

Which statement is NOT correct?

Legacy systems may process financially significant transactions

Legacy systems tend to use mainframe computers and be batch oriented

The flat file approach is often associated with legacy systems

All the above are true.

Question 9

2 out of 2 points

The expenditure, conversion and revenue cycles exist in all types of businesses to include both for profit and not for profit



Question 10

2 out of 2 points

An advantage of a physical address pointer is that

it points directly to the actual disk storage location

it points directly to the actual disk storage location

it is easily recovered if it is inadvertently lost

it remains unchanged when disks are reorganized

all of the above are advantages of the physical address pointer

CIS430 Unit 2 Quiz C3

Question 1

Which of the following is not a major factor that contributes to small business fraud?

Inadequate employee prescreening

Too much trust

Limited controls

Excessive cash on hand

Question 2

A shell company fraud involves:

stealing cash from an organization before it is recorded

stealing cash from an organization after it has been recorded

setting up a fake company and manufacturing false purchase orders, receiving reports, and invoices

A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor

Question 3

When duties cannot be segregated, the most important internal control procedure is


independent verification

accounting records

access controls

Question 4

To conceal the theft of a check from customers in payment of their accounts, which of the following journal entries should the bookkeeper make?

Debit Miscellaneous Expense; Credit Cash

Debit Petty; Credit Cash

Debit Cash; Credit Accounts Receivable

Debit Sales Returns; Credit Accounts Receivable

None of the above

Question 5

Cash larceny involves stealing cash from an organization before it is recorded on the organization’s books and records



Question 6

When certain customers made cash payments to reduce their accounts receivable, the bookkeeper embezzled the cash and wrote off the accounts as uncollectible. Which control procedure would most likely prevent this irregularity?

segregation of duties

maintaining a general ledger

insuring debits equal credits in the accounting system

access controls

Question 7

2 out of 2 points


Which of the following indicates a strong internal control environment?

the internal audit group reports to the audit committee of the board of directors

there is no segregation of duties between organization functions

there are questions about the integrity of management

adverse business conditions exist in the industry

Question 8

Which of the following is not a limitation of the internal control system?

errors are made due to employee fatigue

fraud occurs because of collusion between two employees

the industry is inherently risky

management instructs the bookkeeper to make fraudulent journal entries

Question 9

The external auditor is responsible for establishing and maintaining the internal control system.



Question 10

Which of the following is NOT an element of the fraud triangle?

rationalization (ethics)

justifiable reliance

pressure (motive)


CIS430 Unit 3 Quiz C4

Question 1

Which type of control is considered a compensating control?

segregation of duties

access control


accounting records

Question 2

In regard to the bill of lading which of the following is false?

The shipping clerk normally prepares the bill of lading.

It is a formal contract between the seller and the shipping company.

It establishes legal ownership and responsibility for assets in transit.

It is completed before the packing slip and shipping notice.

Question 3

The bill of lading is prepared by the

sales clerk

warehouse clerk

shipping clerk

billing clerk

Question 4

Good internal controls in the revenue cycle should ensure all of the following except

all sales are profitable

all sales are recorded

credit is authorized

inventory to be shipped is not stolen

Question 5

Which of following functions should be segregated?

opening the mail and recording cash receipts in the journal

authorizing credit and determining reorder quantities

shipping goods and preparing the bill of lading

providing information on inventory levels and reconciling the bank statement

Question 6

Which situation indicates a weak internal control structure?

the AR clerk authorizes the write off of bad debts

the record- keeping clerk maintains both AR and AP subsidiary ledgers

the inventory control clerk authorizes inventory purchases

the AR clerk prepares customer statements every month

Question 7

When will a credit check approval most likely require specific authorization by the credit department?

when verifying that the current transaction does not exceed the customer’s credit limit

when verifying that the current transaction is with a valid customer

when a valid customer places a materially large order

when a valid customer returns goods

Question 8

Which of the following is not one of the three rules that govern segregation of duties?

All transactions should be independently verified to verify the completeness and accuracy of the transaction.

Transaction authorization should be separate from transaction processing.

Asset custody should be separate from the task of asset record keeping.

The organization should be structured so that the perpetration of a fraud requires collusion between two or more individuals.

Question 9

Which situation indicates a weak internal control structure?

the mailroom clerk authorizes credit memos

the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers

the warehouse clerk obtains a signature before releasing goods for shipment

the accounts receivable clerk prepares customer statements every month

Question 10

The credit department

prepares credit memos when goods are returned

approves credits to accounts receivable when payments are received

authorizes the granting of credit to customers

none of the above

CIS430 Unit 4 Quiz C5

Question 1

The documents in a voucher packet include all of the following except

a check

a purchase order

an invoice

a receiving report

Question 2

The greatest advantage of the automated inventory system over its manual counterpart is improved ability to manager inventory needs.



Question 3

Vendors approved by an organization are maintained in a valid vendor file. Insuring that vendors used are in the valid vendor file will insure the most competitive price will be obtained.



Question 4

Which document helps to ensure that the receiving clerks actually count the number of goods received?

packing list

blind copy of purchase order

shipping notice


Question 5

Which document typically triggers the process of recording a liability?

purchase requisition

purchase order

receiving report

supplier’s invoice

Question 6

Which of the following tasks should the cash disbursement clerk NOT perform?

review the supporting documents for completeness and accuracy

prepare checks

approve the liability

mark the supporting documents paid

Question 7

Which of the following is not a major risk exposures associated with the receiving department?

goods are accepted without a physical count

there is no inspection for goods damaged in shipment

inventories are not secured on the receiving dock

the audit trail is destroyed

Question 8

Which statement is NOT correct for a cash disbursement system with proper internal controls?

The bank reconcilement should be an independent verification (ie: by Controller).

The accounts payable function authorizes the cash disbursement via the cash disbursement voucher.

The accounts payable function prepares the cash disbursement check.

Separate the accounts payable, cash disbursements and general ledger functions.

Question 9

Goods received are inspected and counted to

determine that the goods are in good condition

determine the quantity of goods received

preclude payment for goods not received or received in poor condition

all of the above

Question 10

Close supervision in the receiving department reduces the risks of both theft of assets and failure to properly inspect assets.



CIS430 Unit 5 Quiz C8

Question 1

Which statement below best describes an investment center?

The authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital.

The authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply.

The authority to provide specialized support to other units within the organization.

The responsibility for developing markets for and selling of the output of the organization.

Question 2

A profit center manager has responsibility for both cost control and revenue generation.



Question 3

The core benefits of XBRL adoption include all of the following except:

Improved information quality

Cost reduction through tagging of each item with information so that data is easy to identify

Cost reduction through the ability to use data just once.

Cost reduction through enhancing comparability of information because XBRL lays out a common set of definitions by which all organizations will tag their data.

Question 4

An audit trail should:

Provide the ability to answer inquiries from customers or vendors.

Be able to reconstruct files if they are destroyed.

Provide historical data required by auditors.

Fulfill government requirements.

Provide a means for preventing, detecting and correcting errors.

All of the above.

Question 5


is an application of XML to business information reporting, that uses tags or structure, that will make data dramatically easier to create, aggregate, distribute and analyze.

will improving the quality of the information used by companies, analysts and investors to make decisions.

enables the creation of “interactive, intelligent” data that allows information to be automatically processed and analyzed and vastly improves transparency.

is an acronym for eXtensible Business Reporting Language (XBRL).

Question 6

At what level of management is the long range planning function most important?

at top management levels

at middle management levels

at lower management levels

for staff functions e. for line functions

Question 7

The General ledger System (GLS) may be characterized as a hub in the center that is connected to other systems of the firm through spokes of information.



Question 8

Which of the following is NOT a potential exposure of the FRS?

defective audit trail

general ledger accounts that are out of balance with subsidiary accounts

unauthorized access to the check register

unauthorized access to the general ledger

Question 9

The Ozment Corporation uses a performance reporting system that shows online the data for each subordinate who reports to a supervisor. The data presented show the actual costs incurred during the period, the budgeted costs, and all variances from budget for that subordinate’s department. The name of this system of reporting is

responsibility accounting.

flexible budgeting.

program budgeting.

cost benefit accounting.

CIS430 Unit 5 Quiz C11 latest 2017 november

Question 1

In regard to ERP which of the following is false?

There is no need to be concerned about segregation of duties because ERP systems possess strong computer controls.

Managers in an ERP environment must be concerned about granting access to too many employees.

ERP systems are often installed because they tend to eliminate the need for contingency disaster planning.

Access security is critical in an ERP environment and must be maintained to establish data confidentiality, integrity and availability.

Question 2

In regard to an enterprise resource system (ERP) which of the following is false?

An organization may need to change the way it conducts business to take full advantage of the ERP.

ERP systems are custom packages designed for specific organizations.

The ERP system integrates key processes of the organization so a single computer system can serve the needs of each functional area.

ERP systems utilize a single database to facilitate the sharing of information and to improve communications across the organization.

Question 3

There are a number of risks that may be associated with ERP implementation. Which of the following was NOT stated as a risk in the chapter?

A drop in firm performance after implementation because the firm looks and works differently than it did while using a legacy system.