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Which of the following terms best explains the idea that anyone can add to XBRL?
A. Extensible
B. Specification
C. Taxonomy
D. Namespace
Which of the following elements of the conceptual framework fit within the same
category?
A. Economic entity, historical cost
B. Conservatism, historical cost
C. Economic entity, conservatism
D. Conservatism, materiality
One output of the accounting information system is the statement of cash flows.
Transactions commonly associated with an organization's acquisition/payment process
are most likely to be reflected in which section of the statement of cash flows?
A. Operating
B. Investing
C. Financing
D. Non-cash investing and financing
MNR Corporation uses block coding for its chart of accounts. Selected account titles
are listed below on the left in alphabetic order; account numbers for those accounts are
listed in random order on the right. Match each account name with the most appropriate
number using the principles of block coding.1>Capital stock
A. 302
2>Accumulated depreciation--equipment
B. 520
3>Wages payable
C. 304
4>Notes payable
D. 107
5>Inventory
E. 203
6>Bonds payable F. 409
7>Discount on bonds payable G. 515
8>Treasury stock H. 204
9>Retained earnings I. 408
10>Prepaid rent J. 110
11>Equipment K. 105
12>Accounts receivable L. 510
Please refer to the following case as you answer the question:
Comprehensive Waste Management (CWM) provides trash hauling services for several
communities in southern California. When a new client wants to establish service, the
client calls the company's main office on the phone. A CWM employee collects the
following information from the client: name, street address, city, state, ZIP code, area
code, telephone number, e-mail address. The employee gives the new client information
regarding regular weekly service dates, special services provided by the company, fees
and billing procedures. CWM bills its clients every two months in advance of the
service; for example, bills are sent to clients at the beginning of January for the months
of January and February. Initially, CWM does all its billing manually; they send out
paper bills and collect payment from clients via check. Once service is established, a
client can create an online account; the online account provides an option for paperless
billing and a separate option for charging a credit card rather than paying with a mailed
check. To create an online account, the client creates login credentials (user name and
password); they provide their CWM account number (provided on the invoice) and
relevant credit card data (type of card, name, billing address, and security code).
CWM's database uses the account number to look up the client's original information,
then merges the new information with it.
CWM's manual billing process will be represented in a data flow diagram with a(n):
A. Circle
B. Arrow
C. Rectangle
D. Set of parallel lines
Casa Ruiz is a Mexican restaurant in southern California. Its inventory purchasing
process involved several steps. On a weekly basis, the head chef estimated the total
supplies needed in the kitchen; the head waiter estimated the total supplies needed for
the dining room. The head waiter summarized all the information and prepared a list of
needed supplies for Mr. Ruiz, the owner. Mr. Ruiz kept an alphabetized list of potential
suppliers; each week, he would contact one supplier from the list to place the
restaurant's order. The order was placed over the phone; the salesperson quoted the total
price for the order to Mr. Ruiz. When the goods arrived, Mr. Ruiz would check the total
order price against the supplier's catalog. If the prices matched, Mr. Ruiz received the
inventory and paid the delivery person in cash. If the prices did not match, Mr. Ruiz
sent the entire order back and called the next supplier on the list.
You have been hired to develop a better inventory purchasing process for Casa Ruiz
following the generalized model of business process management discussed in the text.
Fill in each blank below with one action you would take to achieve that goal; the first
two steps have been completed as an example. Do not list the steps in the model; rather,
explain what you would do for each step.
1) This project will analyze the inventory purchasing project, beginning with initial
needs identification and ending with paying for delivered inventory.
2) You have interviewed Casa Ruiz employees and observed the process from start to
finish, yielding the description above.
3) _______________________________________________________________
4) ________________________________________________________________
5) ________________________________________________________________
6) ________________________________________________________________
7) ________________________________________________________________
Which element of Carter's taxonomy of computer crime is associated with each item
below?
a. Computer is not required for the crime but is related to the criminal act
b. Computer is used to commit the crime
c. Computer use may make a crime more difficult to trace
d. Growth of the Internet creates new ways of reaching victims
e. Objective is to impact the confidentiality, availability and/or integrity of data
f. Presence of computers has generated new versions of fairly traditional crimes
g. Targets the system or its data
h. Technological growth creates new crime targets
i. Use of the computer simplifies criminal actions
j. Uses the computer to further a criminal end
Leticia and Omar were evaluating payroll software packages for their company. They
considered three factors with the following weights: adaptability, 9; ease of use, 10;
cost, 7. They narrowed their choices down to three packages with the following
rankings on each factor:
Using the weighted-rating technique discussed in the text, calculate a score for each
software package. Rank the packages based on their scores.
STC Corporation's enterprise resource planning system contains a cash payments table,
a cash receipts table and a cash table. Foreign keys in the cash receipts table would
include: (i) customer ID, (ii) account number, (iii) cash receipt date.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
Which of the following schools of ethical thought teaches that ethical actions are a
natural outgrowth of being a fundamentally ethical person?
A. ethical egoism
B. utilitarianism
C. deontology
D. virtue ethics
The text discussed five key terms related to XBRL. Which one best applies to each of
the following items?
a. Amanda said: "Here is the list of asset accounts we'll need to tag in XBRL; it includes
items like cash and accounts receivable."
b. Eugene expected to finish tagging the company's financial statements before the end
of the day.
c. Jeff asked his supervisor which set of XBRL tags the company should use.
d. Molly wondered where she could find the meaning and interpretation of XBRL tags.
e. Sue commented: "Our company is so unique, I'm sure we'll need to supplement
existing tags before we can use XBRL."
Consider the following case as you respond to the questions:
HSO Corp. designs, manufactures and sells golf carts, scooters and similar vehicles.
When a prospective client contacts one of their seven corporate offices, the office
manager fills out an "intake questionnaire" to determine if HSO can meet the
prospective client's needs. The office manager assembles a team of employees with
expertise in design, production, marketing and accounting; the team reviews the intake
questionnaire and determines if HSO can take on the order. If so, the office manager
prepares a three-page written proposal for the prospective client; the proposal explains
the responsibilities of both HSO and the client, along with a timeline and a budget. The
proposal is forwarded to the prospective client electronically, and the client has ten
calendar days to accept it. If HSO cannot take on the order, the prospective client
receives an automatically generated form letter; if the prospective client does not accept
the proposal within ten calendar days, they receive a different form letter. The new
client remits half of the fee at the time the proposal is accepted, and HSO prepares
weekly progress reports as the project moves forward. The reports are filed in HSO's
database; a hard copy is sent to the client. On a monthly basis, HSO's office manager
prepares a comprehensive status report for all current engagements. One week before
each project is concluded, HSO bills the client for half of the remaining amount due;
after the client has paid all outstanding invoices, HSO completes the work and bills the
client for all remaining amounts. HSO delivers the finished product; the client must pay
the full amount due within 30 days of the final invoice date. If the client pays within 15
days, HSO gives a 3% discount off the amount due.
Which of the following phrases from the case exemplifies the sixth step of the
sales/collection process?
A. The new client remits half of the fee at the time the proposal is accepted.
B. HSO prepares weekly progress reports as the project moves forward.
C. Both the new client remits half of the fee at the time the proposal is accepted and
HSO prepares weekly progress reports as the project moves forward
D. Neither the new client remits half of the fee at the time the proposal is accepted nor
HSO prepares weekly progress reports as the project moves forward
Which of the following internal controls can be applied to the sales/collection process
based on the role and purpose of the process?
A. Separation of duties
B. Bank reconciliation
C. Both separation of duties and bank reconciliation
D. Neither separation of duties nor bank reconciliation
