Question 1

Performance reports for cost centers should compare actual versus budget ________ costs.

Accepted Answer

A)  controllable
B)  uncontrollable
C)  fixed
D)  variable

Question 2

Corrections are entries made to correct errors found in

Accepted Answer

A)  all journals.
B)  special journals.
C)  the general ledger.
D)  the financial statements.

Question 3

Budgets used for internal planning purposes and performance evaluation should be developed on the basis of

Accepted Answer

A)  responsibility accounting.
B)  generally accepted accounting principles.
C)  financial accounting standards.
D)  managerial accounting standards.

Question 4

What system privileges should an employee involved in the general ledger and reporting system be given?

Accepted Answer

A)  General privileges to create,delete,update,or modify data.
B)  No privileges permitting the creation,deletion,updating,or modification of data.
C)  Only the specific privileges necessary to perform an employee's assigned duties.
D)  Read-only privileges.

Question 5

What control procedure(s) should be used to reduce the risk of unauthorized disclosure of the financial statements?

Accepted Answer

A)  Multifactor authentication.
B)  Physical security.
C)  Encryption.
D)  All of the above.

Question 6

At a minimum,a switch to IFRS from GAAP will affect companies' accounting information system by

Accepted Answer

A)  requiring companies to increase the processing power of their existing accounting information systems.
B)  requiring IT departments to hire programmers that are fluent in languages besides English.
C)  requiring the creation of additional fields in research and development (R&
D)  records to capture information about the stage of research and development that costs are incurred in.
D)  requiring firms to completely redesign their existing accounting information systems because current systems are not compatible with IFRS accounting principles.

Question 7

The benefits of XBRL include

Accepted Answer

A)  organizations can publish financial information only once,using standard XBRL tags.
B)  tagged data is readable and interpretable by computers,so users don't need to re-enter data in order to work with it.
C)  Both are benefits of XBRL.
D)  Neither is a benefit of XBRL.

Question 8

Which of the following balanced scorecard dimensions provides measures on how efficiently and effectively the organization is performing key business processes?

Accepted Answer

A)  Financial.
B)  Internal operations.
C)  Innovation and learning.
D)  Customer.

Question 9

Who should provide the adjusting entries in a well-designed general ledger and reporting system?

Accepted Answer

A)  Various user departments.
B)  The treasurer department.
C)  Anyone who has access to the other major AIS subsystems.
D)  The controller office.

Question 10

Which of the following are appropriate controls for the general ledger and reporting system?

Accepted Answer

A)  Using well-designed documents and records.
B)  Online data entry with the use of appropriate edit checks.
C)  Prenumbering documents and accounting for the sequence numbers.
D)  All of the above are appropriate.

Question 11

Recording interest earned on an investment is an example of which type of adjusting journal entry?

Accepted Answer

A)  Accrual entry.
B)  Deferral entry.
C)  Closing entry.
D)  Correcting entry.

Question 12

Communications technology and the Internet can be used to reduce the time and costs involved in disseminating financial statement information.Users of such financial information still struggle in that many recipients have different information delivery requirements and may have to manually reenter the information into their own decision analysis tools.The ideal solution to solve these problems and efficiently transmit financial information via the Internet is to use

Accepted Answer

A)  HTML.
B)  XML.
C)  ACH.
D)  XBRL.

Question 13

If you believe a general ledger account was not adjusted properly or at all,you should prepare a general ledger control report listing journal vouchers in

Accepted Answer

A)  numerical sequence.
B)  chronological order.
C)  general ledger account number order.
D)  any order,since you have to review them all anyway.

Question 14

Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

Accepted Answer

THREAT 1: Errors in updating the general...

Question 15

Periodic account reconciliations are a control that can be used to reduce the risk of employees creating unauthorized adjusting entries.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following controls can minimize the threat of inaccurate financial statements?

Accepted Answer

A)  Training and experience in applying IFRS and XBRL.
B)  Responsibility accounting.
C)  Backup and disaster recovery procedures.
D)  Restriction of access to general ledger.

Question 17

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The data you have entered does not include a source reference code.Please enter this data before saving." This is an example of a

Accepted Answer

A)  validity check.
B)  field check.
C)  zero-balance check.
D)  completeness test.

Question 18

Which of the following balanced scorecard dimensions provides measures on how well the organization is working to improve customer satisfaction and become the preferred supplier for key customers?

Accepted Answer

A)  Financial.
B)  Internal operations.
C)  Innovation and learning.
D)  Customer.

Question 19

Which of the following balanced scorecard dimensions provides measures on new products?

Accepted Answer

A)  Financial.
B)  Internal operations.
C)  Innovation and learning.
D)  Customer.

Question 20

Which of the following is true about accounting for fixed assets?

Accepted Answer

A)  Depreciation expense under IFRS will likely be higher than under GAAP,because acquisitions of assets with multiple components must be separately depreciated under IFRS,whereas under GAAP assets could be bundled and depreciated over the longest of the useful life for any of the components.
B)  IFRS doesn't allow capitalization of any asset that separately accounts for less than 20% of total assets.
C)  Depreciation expense under IFRS will likely be less than under GAAP,because standards for depreciable lives on asset classes are much longer than under GAAP.
D)  IFRS and GAAP account for fixed assets in much the same way.

Exam 16: General Ledger and Reporting System

Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

Correct Answer
verified
THREAT 1: Errors in updating the general...
View Answer

Which of the following are appropriate controls for the general ledger and reporting system?

Correct Answer
verified

Which of the following balanced scorecard dimensions provides measures on how well the organization is working to improve customer satisfaction and become the preferred supplier for key customers?

Correct Answer
verified

Periodic account reconciliations are a control that can be used to reduce the risk of employees creating unauthorized adjusting entries.

Correct Answer
verified

Which of the following controls can minimize the threat of inaccurate financial statements?

Correct Answer
verified

If you believe a general ledger account was not adjusted properly or at all,you should prepare a general ledger control report listing journal vouchers in

Correct Answer
verified

What system privileges should an employee involved in the general ledger and reporting system be given?

Correct Answer
verified

Which of the following balanced scorecard dimensions provides measures on how efficiently and effectively the organization is performing key business processes?

Correct Answer
verified

Corrections are entries made to correct errors found in

Correct Answer
verified

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The data you have entered does not include a source reference code.Please enter this data before saving." This is an example of a

Correct Answer
verified

At a minimum,a switch to IFRS from GAAP will affect companies' accounting information system by

Correct Answer
verified

Which of the following is true about accounting for fixed assets?

Correct Answer
verified

Who should provide the adjusting entries in a well-designed general ledger and reporting system?

Correct Answer
verified

Performance reports for cost centers should compare actual versus budget ________ costs.

Correct Answer
verified

The benefits of XBRL include

Correct Answer
verified

Recording interest earned on an investment is an example of which type of adjusting journal entry?

Correct Answer
verified

Correct Answer
verified

What control procedure(s) should be used to reduce the risk of unauthorized disclosure of the financial statements?

Correct Answer
verified

Which of the following balanced scorecard dimensions provides measures on new products?

Correct Answer
verified

Budgets used for internal planning purposes and performance evaluation should be developed on the basis of

Correct Answer
verified

Exam 16: General Ledger and Reporting System

Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

Correct AnswerverifiedTHREAT 1: Errors in updating the general...View AnswerShow Answer

Which of the following are appropriate controls for the general ledger and reporting system?

Correct AnswerverifiedShow Answer

Which of the following balanced scorecard dimensions provides measures on how well the organization is working to improve customer satisfaction and become the preferred supplier for key customers?

Correct AnswerverifiedShow Answer

Periodic account reconciliations are a control that can be used to reduce the risk of employees creating unauthorized adjusting entries.

Correct AnswerverifiedShow Answer

Which of the following controls can minimize the threat of inaccurate financial statements?

Correct AnswerverifiedShow Answer

If you believe a general ledger account was not adjusted properly or at all,you should prepare a general ledger control report listing journal vouchers in

Correct AnswerverifiedShow Answer

What system privileges should an employee involved in the general ledger and reporting system be given?

Correct AnswerverifiedShow Answer

Which of the following balanced scorecard dimensions provides measures on how efficiently and effectively the organization is performing key business processes?

Correct AnswerverifiedShow Answer

Corrections are entries made to correct errors found in

Correct AnswerverifiedShow Answer

Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The data you have entered does not include a source reference code.Please enter this data before saving." This is an example of a

Correct AnswerverifiedShow Answer

At a minimum,a switch to IFRS from GAAP will affect companies' accounting information system by

Correct AnswerverifiedShow Answer

Which of the following is true about accounting for fixed assets?

Correct AnswerverifiedShow Answer

Who should provide the adjusting entries in a well-designed general ledger and reporting system?

Correct AnswerverifiedShow Answer

Performance reports for cost centers should compare actual versus budget ________ costs.

Correct AnswerverifiedShow Answer

The benefits of XBRL include

Correct AnswerverifiedShow Answer

Recording interest earned on an investment is an example of which type of adjusting journal entry?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What control procedure(s) should be used to reduce the risk of unauthorized disclosure of the financial statements?

Correct AnswerverifiedShow Answer

Which of the following balanced scorecard dimensions provides measures on new products?

Correct AnswerverifiedShow Answer

Budgets used for internal planning purposes and performance evaluation should be developed on the basis of

Correct AnswerverifiedShow Answer

Correct Answer
verified
THREAT 1: Errors in updating the general...
View Answer

Correct Answer
verified

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