44) The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi
Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a
superior level of customer service. In particular, the store’s database system was designed to make
detailed information about each individual action figure’s characteristics easily accessible. Price
information and condition are also provided for each inventory item. In this database, the price of figures
is a(an)
A) entity.
B) attribute.
C) field.
D) record.
45) The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi
Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a
superior level of customer service. In particular, the store’s database system was designed to make
detailed information about each individual action figure’s characteristics easily accessible. Price
information and condition are also provided for each inventory item. In this database, the data about an
individual figure is a(an)
A) entity.
B) attribute.
C) field.
D) record.
46) The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi
Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a
superior level of customer service. In particular, the store’s database system was designed to make
detailed information about each individual action figure’s characteristics easily accessible. Price
information and condition are also provided for each inventory item. In this database, action figures
(collectively) are a(an)
A) entity.
B) attribute.
C) field.
D) record.
47) The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi
Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a
superior level of customer service. In particular, the store’s database system was designed to make
detailed information about each individual action figure’s characteristics easily accessible. Price
information and condition are also provided for each inventory item. In this database, the data about an
individual figure’s price is stored in a(an)
A) entity.
B) attribute.
C) field.
D) record.
48) Hector Sanchez works in the accounting department of a multinational manufacturing company. His
job includes updating accounts receivable based on sales orders and remittance advices. His
responsibilities are part of the company’s
A) revenue cycle.
B) expenditure cycle.
C) financing cycle.
D) production cycle.
49) Hector Sanchez works in the accounting department of a multinational manufacturing company. His
job includes updating accounts payable based on purchase orders and checks. His responsibilities are
part of the company’s
A) revenue cycle.
B) expenditure cycle.
C) financing cycle.
D) production cycle.
50) Many small businesses choose to outsource their payroll activities to firms that specialize in
providing payroll services. Dolores Yu operates a payroll processing business in Calabasas, California.
When she sends bills out to her clients, her work is part of her firm’s
A) revenue cycle.
B) expenditure cycle.
C) financing cycle.
D) production cycle.
51) The coding technique most likely used for sales orders is called a
A) group code.
B) block code.
C) data code.
D) sequence code.
52) Data processing includes all of the following except
A) verifying subsidiary ledger balances.
B) changing customer addresses.
C) removing inventory items no longer offered.
D) adding the name of a new vendor.
53) Which of the following is an example of an ERP system?
A) Alexis uses a computerized information system to keep track of all the financial data generated by
her bakery. She is considering opening a new bakery on the east side of town.
B) Betty has a system that keeps track of the accounts payable and receivable for her plumbing business.
At the end of the year, the system helps her to prepare her taxes in just two hours.
C) Charlie keeps records of all his business records in a shoe box. Each week he enters all of the data
into spreadsheets that automatically generate purchase orders, based on predetermined inventory reorder
points. Production quotas for the coming week are also automatically generated based on customer
orders.
D) Doug is a free-lance photographer. He keeps records of all expenses and revenues on his cell phone
and then emails them to himself every month. The files are stored on his personal computer and backed
up to CD quarterly.
54) A specialized journal would be most likely to be used to enter
A) sales transactions.
B) monthly depreciation adjustments.
C) annual closing entries.
D) stock issuance transactions.
55) The Cape Fear Rocket Club heads out to the dunes of Kittyhawk, North Carolina every August to
pierce the sky with their fiery projectiles. An enterprising seller of t-shirts has devised a series of designs
that capture the spirit of the event in silk-screened splendor. His employees can be found on many of the
major intersections hawking his wares out of the backs of station wagons and pickup trucks. What is the
best way for this business to ensure that sales data entry is efficient and accurate?
A) Well-designed paper forms
B) Source data automation
C) Turnaround documents
D) Sequentially numbered forms
56) Which of the following information would most likely be reviewed by management on an exception
report?
A) Monthly cash budget
B) Quality control system failures
C) Unit sales by territory and salesperson
D) Income statement
57) All of the following situations would likely be communicated in an exception report except
A) production stoppages.
B) weekly credit and cash sales comparison.
C) low inventory level.
D) expense variances outside acceptable range.
58) Changing an employee’s hourly wage rate would be recorded where?
A) Employee master file
B) Employee transaction file
C) Special journal
D) Employee update file
59) Which of the following statements is not correct?
A) The audit trail is intended to verify the validity and accuracy of transaction recording.
B) The audit trail consists of records stored sequentially in an audit file.
C) The audit trail provides the means for locating and examining source documents.
D) The audit trail is created with document numbers and posting references.
60) Data about which of the following facets of a business activity is most likely to be recorded in a
transaction file?
A) Business activity
B) Resources affected by the business activity
C) People who participate in the business activity
D) Place the business activity occurs
61) Data about all of the following facets of a business activity are most likely to be recorded in a master
file except the
A) business activity.
B) resources affected by the business activity.
C) people who participate in the business activity.
D) place the business activity occurs.
62) Which of the following statements about data processing methods is true?
A) Online real-time processing does not store data in a temporary file.
B) Batch processing cannot be used to update a master file.
C) Control totals are used to verify accurate processing in both batch and online batch processing.
D) Online real-time processing is only possible with source data automation.
63) In an ERP system, the module used to record data about transactions in the revenue cycle is called
A) order to cash.
B) purchase to pay.
C) financial.
D) customer relationship management.
64) A delivery of inventory from a vendor, with whom a credit line is already established, would be
initially recorded in which type of accounting record and as part of what transaction cycle?
A) purchases journal; expenditure cycle
B) general journal; expenditure cycle
C) general ledger; expenditure cycle
D) cash disbursements journal; production cycle
65) Implementation of an ERP system requires increased focus on all except which of the following
controls ?
A) Segregation of duties between custody, authorization, and recording
B) Data entry controls on validity and accuracy
C) Controls over access to data
D) Appropriate disposal of hard copy reports
66) Which statement below regarding the AIS and managerial reports is false?
A) The AIS is best utilized for financial data while the management information system is best utilized
for operational data.
B) The AIS must be able to provide managers with detailed operational information about the
organization’s performance.
C) Both financial and nonfinancial data are required for proper and complete evaluation of
organizational performance.
D) Most source documents capture both financial and nonfinancial data about business transactions.
67) What is the purpose of source documents? What controls are embedded in source documents? Give
two examples of source documents.
68) Describe an audit trail.
69) Explain how data is organized and stored in an AIS.
70) Describe the basic cycles and business activities for a typical merchandising company.
71) Describe guidelines to follow for a well-designed coding system.
72) Describe the relationship between the general and subsidiary ledgers.
73) Describe four advantages and four disadvantages of implementing an ERP system at a multinational
corporation.
74) Describe the methods used to collect data about business activities. Describe design and control
considerations for each of the data collection methods.