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A clear understanding of the steps in the accounting cycle is likely to be useful in:
A. Financial audits.
B. Investigative audits.
C. Both financial audits and investigative audits.
D. Neither financial audits nor investigative audits.
Missouri Can Corporation (MCC) manufactures and sells a variety of can types, such as
soft drink cans, oil cans and many others. MCC has adopted a functional organization
structure that includes departments for accounting, marketing, manufacturing, human
resources and information systems. One part of MCC's manufacturing department
produces generic cans, while another part of the department customizes them for
specific clients. MCC's system is therefore best described as:
A. process costing
B. job costing
C. hybrid costing
D. view-driven costing
Fran was unhappy with her firm's transaction processing software. Which of the
following tools would be most useful to her in making it better?
A. The capability maturity model
B. The accounting cycle
C. The systems development life cycle
D. COSO's internal control framework
Which of the following pairs provides examples of appropriately using technical
knowledge in accounting?
A. Closing nominal accounts at the end of the year, reconciling a bank statement
B. Closing nominal accounts at the end of the year, using Steps for Better Thinking
C. Reconciling a bank statement, using Steps for Better Thinking
D. Adjusting the accounts for accrued revenue, applying complex FASB standards
A line in a data flow diagram may be labeled similarly to which shape in a systems
flowchart?
A. A line
B. A circle
C. A document symbol
D. A cylinder
Which UMUC evaluation criterion is indicated by each of the following questions?
a. Can you establish the writer's credentials?
b. Can you tell when the source was created/written?
c. Can you tell who created the information?
d. Does the information contain advertising?
e. Does the information contain any obvious errors of fact?
f. Does the source cover the subject with sufficient depth?
g. Does the source tell you where the information came from?
h. Is the information available freely?
i. Is the source still under construction?
j. When was the last time the source was updated?
Consider the following diagram as you answer the questions:
Jon and Sam are current employees. Jon has never hired a new employee, but Sam has
hired many. Which of the following is most appropriate for "E?"
A. (0,1)
B. (1,1)
C. (0,*)
D. (1,*)
Consider the following table as you respond to the questions:
Which of the following is the best choice for Item G in the table?
A. The risk is high.
B. Long-time purchasing department employees may not be motivated to make any
changes.
C. DFN wants to reduce the cost of processing purchase orders.
D. To reduce risk, DFN will offer financial incentives for long-time employees to retire.
After attending a seminar on the importance of knowledge management, the managers
of TCH Corporation developed a set of objectives their knowledge management system
should address. As their next step, the managers should:
A. Lay out database specifications for the system.
B. Interview employees to determine their level of knowledge and misunderstanding of
organizational processes.
C. Both lay out database specifications for the system and interview employees to
determine their level of knowledge and misunderstanding of organizational processes.
D. Neither lay out database specifications for the system nor interview employees to
determine their level of knowledge and misunderstanding of organizational processes.
Bell's characteristics of a professional are listed below on the right. Match each
example on the left with the most appropriate characteristic on the right. Use each
characteristic exactly once.
1>Samantha compared the costs and benefits of a set of internal controls.
A.Integrates knowledge from many disciplines
2>Jordan considered the impact of foreign currency exchange rates on an investment.
B.Recognizes the influence of political, social, economic, legal and regulatory forces
3>Joshua calculated straight-line depreciation.
C.Actively seeks additional knowledge
4>Albert wrote an e-mail to a prospective new client.
D.Appropriately uses technical knowledge
5>Hal participated in an online conference about tax law changes.
E.Exhibits ethical professional behavior
6>Robert refused to falsify a tax return. F.Thinks rationally, logically and coherently
7>Maria used the systems development life cycle to design a new AIS.
G.Communicates effectively
Common internal controls associated with source documents include: (i) sequential
numbering, (ii) physical security, (iii) equality of debits and credits.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
CRX Corporation uses general ledger software as a processing tool in its accounting
information system, which creates certain risk exposures. Internal controls to address
those risk exposures include:
A. Daily file backup.
B. Periodic employee training.
C. Both daily file backup and periodic employee training.
D. Neither daily file backup nor periodic employee training.
WebTrust and SysTrust are most closely related to which of the following?
A. Elements of Brown's risk taxonomy
B. Flowcharting
C. Expectancy theory
D. All of these
At the end of 2014, CNC Corporation's accounting information system produced the
following trial balance:
CNC completed the following transactions in January 2015:
a. Purchased inventory on account, $300.
b. Collected cash from customers for prior year sales, $500.
c. Paid current month's wages, $900.
d. Had land appraised. Cost of doing the appraisal (paid in cash), $700. Appraised value
of land, $3,000.
e. Sold inventory with a cost basis of $200 on account, $800.
f. Declared dividends, $50.
g. Hired additional sales staff. Expected monthly salaries, $80.
h. Purchased supplies for cash, $150.
i. Paid creditors for previous purchases, $150.
j. Signed a contract for annual employee retreat, $450.
The ninth step in the accounting cycle prepares the accounting information system for a
new period. Which of the following accounts in CNC's trial balance will be part of the
ninth step?A. Accounts receivable
B. Supplies
C. Retained earnings
D. Equipment
Consider the following illustration as you respond to the questions:
The most appropriate label for Symbol C is:
A. qualified applicants data
B. interviewee data
C. rejection letter
D. Symbol C should not be labeled.
Create REA model cardinalities for each of the following independent situations. a. A
department manager conducts weekly meetings with his staff. b. Each factory worker is
required to attend group classes on safety in the workplace. c. Each employee in the
finance department is evaluated annually by his/her immediate supervisor. d. A
company's board of directors assembles a committee to investigate the IPO process. e.
One employee in the human resources department screens application materials for
prospective new employees.
McDonald wrote that professionals utilize a specialized knowledge base. Which of the
following is the best example of the specialized knowledge base in accounting?
A. Reconciling a bank statement
B. Writing a check
C. Making adjusting entries
D. Using spreadsheet software
COBIT's enablers include services, infrastructure and applications. Which of the
following best pairs one of those with an example based on ISACA's explanation of the
enabler?
A. services, payroll department
B. applications, software that calculates payroll amounts
C. Both services, payroll department and applications, software that calculates payroll
amounts
D. Neither services, payroll department nor applications, software that calculates
payroll amounts
