What feature of XBRL is indicated by the highlighted phrase in each of the following
items? (Do not limit yourself to the five key terms discussed in the text.)
a. A bank would use a different set of XBRL tags than a manufacturer.
b. Certain sets of XBRL tags conform to both a specific version of XBRL and XBRL
guidelines for specific sets of tags.
c. Companies can tag their general purpose financial statements with XBRL, as well
as their SEC filings.
d. No-one pays to use XBRL.
e. Software capable of interpreting XBRL tags can look on the Internet to find the
meaning of those tags.
f. Some sets of XBRL tags conform only to a specific version of XBRL; they need
further development.
g. Syntax and punctuation are important when creating an instance document.
h. There are many languages similar to XBRL; all of them belong to the larger XML
family.
i. There is an entire set of tags devoted to managing internal information, such as a
chart of accounts or journal entries.
j. XBRL facilitates interpretation of accounting numbers.
XBRL allows organizations to simplify the process and reduce the costs involved in
regulatory reporting to agencies such as:
A. The IRS.
B. The SEC.
C. Both the IRS and the SEC.
D. Neither the IRS nor the SEC.
As a form of internal control, separation of duties can be applied to which steps in the
acquisition/payment process?
A. Second step
B. Fourth step
C. Fifth step
D. All of these
From an accountant’s perspective, one of the benefits of XBRL is the ability to focus
effort on analysis and value-added work. Value-added work includes such items as
A. Posting entries from the journal to the ledger.
B. Interpreting financial statement ratios.
C. Both posting entries from the journal to the ledger and interpreting financial
statement ratios.
D. Neither posting entries from the journal to the ledger nor interpreting financial
statement ratios.
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. Which of the following internal controls is unique
to the business process indicated?
A. adequate supervision, human resources
B. annual operating budgets, financing
C. Both adequate supervision, human resources and annual operating budgets, financing
D. Neither adequate supervision, human resources nor annual operating budgets,
financing
In which of the following situations would a document flowchart be appropriate?
A. Documenting the steps in a financial statement audit
B. Tracing the flow of a bank deposit slip
C. Both documenting the steps in a financial statement audit and tracing the flow of a
bank deposit slip
D. Neither documenting the steps in a financial statement audit nor tracing the flow of a
bank deposit slip
Which of the following statements about the acquisition/payment process is least true?
A. The same document is an output of the first step and an input to the second step.
B. The document commonly used in the second step is both an output and an input.
C. The document commonly used in the second step is never used in other steps of the
acquisition/payment process.
D. Many documents from the first step can be combined into a single document in the
second step.
Refer to the following case as you respond to the question:
The Celebration Theatre is a small, independent theatre that puts on 12 plays per year.
30 days before the start of each calendar quarter, Celebration prepares advertising for
the productions in the upcoming quarter. They advertise on their web site, via e-mail to
their season subscribers and via direct mail and brochures to others.
Patrons can buy tickets for a single play; alternatively, they can subscribe to all three
plays each quarter. Quarterly subscriptions offer a 25% discount from the prices of
single tickets. Patrons may purchase tickets over the phone, at the box office or via the
theatre’s web site. All tickets are held at the box office where they can be picked up as
early as one week prior to the performance. The theatre has an “open seating” plan, so
patrons do not reserve a specific seat at any performance.
If tickets are purchased in person at the box office, non-subscribers may pay with cash
or a major credit card; subscribers can pay with cash, major credit card or check. All
tickets purchased over the phone or via the web site must be paid for with a major credit
card. Celebration maintains an electronic database to track all ticket sales; paper tickets
are printed at least ten days prior to a performance.
Any paid tickets that are not claimed at least thirty minutes prior to the performance are
sold on a “first-come, first-serve” basis at a 50% discount.
Refer to the previously presented set of flowcharting symbols labeled Symbol A
through Symbol J. In a systems flowchart of the Celebration Theatre case, Symbol H is
most likely to appear in which column?
A. Patron
B. Theatre personnel
C. Subscriber database
D. Patron database
In management accounting, students learn to prepare budgets, calculate cost variances
and interpret those variances. Which of the following best links those topics with AIS
study?
A. Use of professional judgment
B. Journal entry preparation
C. Both use of professional judgment and journal entry preparation
D. Neither use of professional judgment nor journal entry preparation
Most companies make adjusting entries for depreciation because:
A. Their plant assets lose market value over time.
B. The matching concept must be upheld in financial statements.
C. Both their plant assets lose market value over time and the matching concept must be
upheld in financial statements.
D. Neither their plant assets lose market value over time nor the matching concept must
be upheld in financial statements.
The second step in the acquisition/payment process promotes strong internal control
through:
A. Properly labeled documents.
B. Separation of duties.
C. Both properly labeled documents and separation of duties.
D. Neither properly labeled documents nor separation of duties.