A(n) ________ system posts an approved invoice to the vendor account and stores it in
an open invoice file until payment is made by check.
A) nonvoucher
B) voucher
C) cycle
D) evaluated receipt settlement
Which of the following is not true about program flowcharts?
A) Program flowcharts are a high-level overview of all business processes.
B) Program flowcharts document the processing logic of computer programs.
C) A program flowchart will exist for every computer process symbol on a system
flowchart.
D) Program flowcharts increase computer programmer productivity.
According to a survey discussed in your textbook, what percentage of companies
outsourced some or all of their information systems?
A) 5%.
B) 25%.
C) 50%.
D) Greater than 50%.
Which type of graph is the most commonly used to display trends in financial data?
A) Pie chart.
B) Scatterplot chart.
C) Bar chart.
D) Stochastic chart.
Which of the following controls can minimize the threat of inaccurate or invalid general
ledger data?
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.
When the sum of all entries in the subsidiary ledger equals the balance in the
corresponding general ledger account, it is assumed that
A) the recording processes were accurate.
B) all source documents were recorded.
C) adjusting entries are not required.
D) no errors exist in the subsidiary ledger.
Which of the following is a commonly used technique to identify potential events?
A) Using data mining.
B) Browsing news articles.
C) Hiring a business process consultant.
D) None of the above.
Which of the following controls can minimize the threat of theft of inventory?
A) The use of innovative performance metrics.
B) The use of periodic physical counts of inventory and reconciliation of those counts
to recorded quantities.
C) The use of encryption.
D) The use of production planning systems.
Fraud perpetrators are often referred to as
A) bad actors.
B) blue-collar criminals.
C) white-collar criminals.
D) outlaws.
Yasamin Roshni owns and operates a small deli in Miami, Florida. Each morning she
prepares a list that describes the quantity and variety of subs that will be prepared
during the day. This list is an example of a(n)
A) bill of materials.
B) operations list.
C) materials requisition.
D) production order.
The most important element of any preventive control is
A) the people.
B) the performance.
C) the procedure(s).
D) the penalty.
Which of the following scenarios will not be allowed under IFRS?
A) A landscaping and garden retail store keeps piles of river rock, gravel, paving stones,
and small decorative rocks in a fenced area on the side of the store. The store uses the
most recent inventory costs when calculating cost of goods sold, since new inventory is
piled on top of the older inventory.
B) A grocery store strictly enforces a shelf rotation policy, so that older inventory is
always at the front and sold first. The store uses the oldest inventory costs to calculate
cost of goods sold.
C) A farm chemical supplier maintains a large holding tank of chemicals, into which
deliveries are periodically combined with the older chemicals. The supplier averages
the cost of all inventory to calculate cost of goods sold.
D) All of the above are acceptable under IFRS.
In a data flow diagram of the vendor payment process, what symbol would most
appropriately reflect an update of the payables account?
A) a square
B) a circle
C) two horizontal lines
D) none of the above
Which of the following is not a key decision that needs to be made in the revenue
cycle?
A) How should merchandise be delivered to customers?
B) Should credit be extended to customers?
C) How can customer payments be processed to maximize cash flow?
D) Which vendor should inventory be purchased from?
Which of the following is a key control regarding the minimization of system
downtime?
A) fault tolerance
B) disaster recovery plans
C) backup procedures
D) all of the above
In an REA diagram, resource entities
A) can be linked to event entities in Business Cycle A and to event entities in Business
Cycle B.
B) cannot be linked to event entities in Business Cycle A and to event entities in
Business Cycle B.
C) cannot be linked to agent entities.
D) none of the above
Which of the following transactions is represented by the diagram below?
A) Each sale is associated with a single order, and there is a time lag between the time
an order is taken and delivery of the product.
B) Each sale can be comprised of multiple orders, and each order can be associated
with multiple sales or no sales.
C) Each sale can be comprised of multiple orders, and each order can be associated
with one or more sales.
D) Each sale is associated with a single order, and there is no time lag between the time
an order is taken and delivery of the product.
The security technology that evaluates IP packet traffic patterns in order to identify
attacks against a system is known as
A) an intrusion prevention system.
B) stateful packet filtering.
C) static packet filtering.
D) deep packet inspection.
Relationships that affect the quantity of a resource are sometimes referred to as
________ relationships.
A) commitment
B) exchange
C) stockflow
D) duality
Identify the primary means of protecting data stored in a cloud from unauthorized
access.
A) authentication
B) authorization
C) virtualization
D) securitization
A major way in which IFRS differs from GAAP that will affect the design of a
company’s general ledger and reporting system is an IFRS principle known as
A) componentization.
B) monetization.
C) securitization.
D) centralization.
Which of the following is not one of the types of documentation that should be prepared
for a new system?
A) Management.
B) Operations.
C) User.
D) Development.
Which of the following is not one of the three basic types of data about a specific sales
transaction that should be captured by an Accounting Information System?
A) name of the employee who completed the sale
B) daily sales quota
C) product sold
D) date
Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor.
He has been asked to document the existing accounting information system, and focus
on the activities and flow of data between activities. He decides to begin with a
summary description of the sources and uses of data in the organization and how they
are processed by the system. The documentation tool that he should employ for this
purpose is a
A) data flow diagram.
B) document flowchart.
C) system flowchart.
D) program flowchart.
This network access control determines which IP packets are allowed entry to a network
and which are dropped.
A) access control list
B) deep packet inspection
C) stateful packet filtering
D) static packet filtering
A laptop computer belonging to the Novak group was stolen from the trunk of a sales
manager’s car while she was attending a conference. After reporting the theft, the
manager considered the implications for the company’s network security and concluded
there was little to worry about because
A) the computer was insured against theft.
B) the computer was protected by a password.
C) the data stored on the computer was encrypted.
D) it was unlikely that the thief would know how to access the company data stored on
the computer.
Social engineering is
A) verifying credit card validity; buying and selling stolen credit cards.
B) inserting a sleeve into an ATM so that it will not eject the victim’s card, pretending to
help the
victim as a means of obtaining his PIN, and using the card and PIN to drain the account.
C) a technique that tricks a person into disclosing confidential information.
D) changing data before, during, or after it is entered into the system in order to delete,
alter, or add key system data.
________ model is the basic model used to create a framework for an economic
feasibility analysis.
A) The capital budgeting
B) The cash budgeting
C) The cost/benefit
D) The profit margin
Which of the following transactions is represented by the diagram below?
A) Vendors send a bill for each inventory item purchased which is payable on receipt.
B) A single purchase of inventory is paid for with multiple payments.
C) Inventory vendors send a monthly bill for merchandise delivered. The seller does not
accept or allow installment payments.
D) Some inventory purchases are paid for with multiple payments and some payments
may apply to multiple purchases.
In which transaction cycle would information for initiating back orders for out of stock
goods be most likely to pass between internal and external accounting information
systems?
A) the revenue cycle
B) the expenditure cycle
C) the human resources / payroll cycle
D) the financing cycle
Which of the following is the most costly and least risky method of converting from
one system to another?
A) Direct conversion.
B) Parallel conversion.
C) Pilot conversion.
D) Phase-in conversion.
In a data flow diagram of the vendor payment process, “Vendor” will appear above or in
A) a square.
B) a circle.
C) two horizontal lines.
D) none of the above