Archives: Quiz

Direct labor cost is an example of a period cost. Answer: Assets are increased with debits and decreased with credits. Answer: TRUE The budgeted balance sheet assumes that all operating and financing plans are met. Answer: TRUE The process of […]

A formal written statement of management’s plans for the future, expressed in financial terms, is called a budget. Answer: Bonds may be purchased directly from the issuing corporation or through one of the bond exchanges. Answer: TRUE The fixed cost […]

When estimated costs are used in applying the cost-plus approach to product pricing, the estimates should be based upon normal levels of performance. Answer: The balance of the Allowance for Doubtful Accounts is added to Accounts Receivable on the balance […]

A perpetual inventory system is an effective means of control over inventory. Answer: Service department charges are similar to the expenses of a profit center that purchased services from a source outside the company. Answer: TRUE At the end of […]

If the costs for direct materials, direct labor, and factory overhead were $60,000, $35,000, and $25,000, respectively, for 20,000 equivalent units of production, the conversion cost per equivalent unit was $6. Answer: Under the Internal Revenue Code, corporations are required […]

(Xoa dong nay de nhap cau hoi) Answer: Manufacturers use labor, plant, and equipment to convert direct materials into finished products. Answer: TRUE At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses. […]

What is a PERT chart and why is it helpful in planning a project? Answer: One conclusion that we can draw about cybercrime is that it is growing. Answer: T Predictive analytics use large data warehouses to help organizations improve […]

Program comparison tools can detect unauthorized changes to accounting systems. Answer: The approach to purchasing accounting software is the same, regardless of software complexity or price range. Answer: F SAP R/3 is a good example of a middle-range AIS software […]

Data flow diagrams use more symbols than system flowcharts. Answer: An example of a financial report that would be prepared by a managerial accountant (instead of a financial accountant) is a budget report. Answer: T The acronym ERP stands for […]

Managerial accounting principally provides decision-making information to a company’s internal managers. Answer: What is the purpose of a Systems Steering Committee if an outside consultant is hired to perform the system study? Answer: The steering committee serves as an oversight […]

A Social Security number is a good example of a useful primary record key. Answer: What is the difference between mainframe/host computing and microcomputer client/server computing? Answer: In centralized computing systems, the mainframe/host computer or minicomputer/host performs most, if not […]

A PERT network diagram reflects the logical sequence of systems implementation activities. Answer: Controls are rarely established during the implementation of a new computer systemthis must wait for the first audit of the system. Answer: F Project management software allows […]

A completeness test is an internal equipment control to test whether or not all transactions have been processed. Answer: NFC is an example of cloud computing. Answer: F PRM stands for Personnel Relationship Management. Answer: F Using Microsoft Access to […]

A printer is an example of an input device. Answer: As a result of computerized information processing systems in many organizations today, the need for accountants in these organizations has significantly declined. Answer: F “Schedule feasibility” refers to whether or […]

Programs such as Windows Vista and Unix are examples of application programs. Answer: Biometric identifications are irrelevant to computer network systems. Answer: F The first stage in the systems development life cycle is planning the systems study itself. Answer: T […]

A paradoxical matter in the TRW Case was that the prosecution had trouble acquiring testimonies because the buyers as well as the sellers of the credit information were in technical violation of the law. Answer: Both external and internal file […]

“Analysis paralysis” means “analyzing a system to death” at the expense of reaching a conclusion. Answer: An important advantage of cloud accounting include the availability of backup services, multi-user access, but not upgrades to newer versions of the software. Answer: […]

Output controls for the computerized accounting information system focus primarily on the security and distribution of print media prepared by the computer center. Answer: An internal label may be used only with magnetic tape systems. Answer: F The information needs […]

The processing power of a computer is often measured by the power of its CPU. Answer: An accounting information system database is a collection of facts and figures that serves the accounting information needs of one or more organizational subsystems. […]

A flat file is a database with no records. Answer: Certified Information Systems Auditors must have an accounting degree. Answer: F Groupware is the technology that enables knowledge sharing and knowledge management among employees. Answer: T A hash total is […]

A good audit trail is an important element within a company’s internal control system. Answer: In the “AIS at Work” case, Mar-Bal installed an integrated accounting package rather than an ERP system. Answer: F Process maps are a special kind […]

Equipment that surrounds a computer and assists it with input and output tasks is called “peripheral equipment.” Answer: An alternative to developing its own AIS, an organization might consider outsourcing the processing to an external company. Answer: T In order […]

Which of the following is not a part of a form? a) A heading section b) A detail section c) A design section d) A navigation bar Answer: Which type of company is most likely to use MICR? a) Grocery […]

All of these are examples of typical benefits that a company might enjoy when switching to a new computer system except: a) Reduced clerical costs b) Enhanced sales c) Better customer service d) Lower hardware and software costs Answer: The […]

Historically, financial data used in one application was not easily transferable to other applications. However, the problem was fixed with which one of the following? a) XMP b) ERP c) XBRL d) XMLP Answer: A rule of thumb in industry […]

Which of the following best describes documents initially prepared by a company, then sent to individuals, and returned to an organization for data processing? a) Mark-sense media b) Source documents c) Turnaround documents d) MICR documents Answer: Which of these […]

A “flying-start site” for disaster recovery purposes is a location that includes: a) A computer system configured similarly to the system normally used b) A computer system configured similarly to the system normally used plus up-to-date backup data and software […]

Which of the following is true? a) An AIS must be computerized to be useful b) An AIS always produces useful information c) An AIS always produces financial information d) none of these Answer: Within the context of accounting packages […]

A general rule that should be followed when developing control procedures for a company’s assets is: a) The cost of the control procedure will likely exceed the procedure’s benefit b) The procedure should not be designed and implemented unless an […]

Compared to top management’s system information goals, obtaining the information needs of operating management is normally: a) Easier b) More difficult c) No different d) Not required Answer: Which of the following is not an objective of a computerized database? […]

A “default value” for an Access data field is: a) The value of last resort b) A value that Access will assume if the user does not enter one c) A value that Access will take from the last record […]

At present, we think that cybercrime is: a) Falling b) Random c) Rising d) Flat Answer: Which of these is a business reporting language often used in recording or transmitting accounting data? a) XBRL b) XFile c) ABC d) Accounting […]

Which of these is not a general systems goal? a) Relevant output b) Cost awareness c) Flexible structure d) Higher salaries Answer: One form of access security is determining authentic users by “who they are.” Which of the following is […]

The “S” in the acronym “AIS” stands for: a) Standard b) System c) Symbol d) none of these Answer: Which of these is not an example of a cloud service provider? a) A company that performs backup services over the […]

Within a database context, the relationship between “assigned parking space” and “car” would most likely be: a) One-to-one b) One-to-many c) Many-to-one d) Many-to-many Answer: Controls that require a database to either execute a transaction completely, or not at all, […]

Which of these secondary storage media is likely to hold the most data? a) Hard disk b) Blue-ray disc c) CD-ROM d) Flash drive Answer: Which of the following is not typically checked by an auditor in a review of […]

Business process reengineering: a) Is an incremental approach to redesigning business processes b) Involves redesigning business processes from scratch c) Is rarely successful in cutting an organization’s costs d) Is always welcomed by an organization’s employees Answer: AIS documentation is […]

All of these are common selection criteria for choosing a final software package from a vendor except: a) Evaluate the performance capabilities of each proposed system b) Weigh the costs and benefits of each proposed system c) Evaluate the maintainability […]

All of the following are examples of parameters that might be used to set passwords except: a) A minimum password length of six digits b) Restriction of passwords to numeric characters only c) Required use of words that can be […]

For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once there are four terms that are not used. 1) ______ […]

The word “integrated” in the term “integrated accounting software” means: a) The software is color blind b) The software can interface with non-accounting software such as spreadsheets. c) The software combines several accounting functions in one package. d) all of […]

A set of XBRL tags identifies the data it contains as well as indicates how to display that data. Answer: Enterprise-wide AISs: a) Almost never pay for themselves b) Do not include many more features than middle-range accounting software packages […]

Which of these are the five feasibility areas that a design team should examine? a) Technical, legal, social, economic, schedule b) Economic, software, legal, hardware, schedule c) Organizational, hardware, operational, legal, economic d) Schedule, economic, operational, technical, legal Answer: Forecasting […]

A computer virus is: a) A disease that computer programmers are very susceptible to b) A small processing routine that the user accidentally introduces into the system c) A misnomer, since unlike biological viruses, computer viruses cannot reproduce themselves d) […]

The principal cause for more timely performance reports in the typical modern organization is due to: a) Better educated management b) Adoption of progressive management philosophies which stress participative management (e.g., MBO) c) Information processing systems d) Need for less […]

Reference: 8-16 Pong Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During December, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was […]

Excerpts from Zorra Corporation’s most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,370 and the cost of goods sold was $850. The acid-test ratio at the end of Year 2 is closest to: A. […]

Reference: 8-31 Kibodeaux Corporation makes a product with the following standard costs: The company budgeted for production of 3,300 units in June, but actual production was 3,400 units. The company used 33,240 liters of direct material and 320 direct labor-hours […]

Stanfa Corporation’s standard wage rate is $10.50 per direct labor-hour (DLH) and according to the standards, each unit of output requires 8.0 DLHs. In January, 3,700 units were produced, the actual wage rate was $10.80 per DLH, and the actual […]

The following partially completed T-accounts summarize transactions for Fabatz Company during the year: The manufacturing overhead was: A. $2,200 underapplied B. $2,200 overapplied C. $400 overapplied D. $400 underapplied Answer: Reference: 8-29 Hurren Corporation makes a product with the following […]