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ACCTG 456 CH 2
Terms in this set (26)
What is the final step in the data processing cycle?
Which of the following commonly initiates the data input process?
-automatic batch processing
-a business activity
-a trial balance query
-an accounting department source document
A business activity
The general ledger
-is posted in total to the general journal.
-summarizes the transactions in journals.
-is the initial place to record general expenses.
-only includes balance sheet accounts.
Summarizes the transactions in journals
Street Smarts (SS) is a retailer located in Naperville, Illinois. During the peak tourist season, it has average daily cash and credit card sales in excess of $7,000. What is the best way for SS to ensure that sales data entry is efficient and accurate?
-sequentially numbered sales invoices
-source data automation
-well-designed paper forms
Source data automation
A specialized journal
-is used to record infrequent or non-routine transactions.
-records all detailed data for any general ledger account that has individual sub-accounts.
-simplifies the process of recording large numbers of repetitive transactions.
-contains summary-level data for every account of the organization.
Simplifies the process of recording large numbers of repetitive transactions
Changing an employee's hourly wage rate would be recorded where?
-employee transaction file
-employee update file
-employee master file
Employee master file
When displayed on a monitor, data output is referred to as
The existence of multiple systems which provide information can result in all of the following except
All of the following are reasons that implementing a new ERP may fail except
-ERPs can take years to fully implement.
-employees may resist using the ERP system.
-ERPs may require procedures and reports to be standardized across business units.
-employees may refuse to share sensitive information with different departments.
ERPs may require procedures and reports to be standardized across business units
In an ERP system, the module used to record data about transactions in the disbursement cycle is called
-purchase to pay.
-order to cash.
-customer relationship management.
Purchase to pay
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?
-cash disbursements journal; production cycle
-general journal; expenditure cycle
-purchases journal; expenditure cycle
-general ledger; expenditure cycle
Purchases journal; expenditure cycle
John Pablo 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
Data must be collected about three facets of each business activity. What are they?
-the business activity, the resources it affects, the people who participate
-who is involved, what was sold, how much was paid
-the business activity, the transactions it creates, the impact on the financial statements
-the inputs, outputs and processes used
The business activity, the resources it affects, the people who participate
Issuing a purchase order is part of which transaction cycle?
-the human resources cycle
-the revenue cycle
-the expenditure cycle
-the production cycle
The expenditure cycle
The efficiency of recording numerous business transactions can be best improved by the use of
-prenumbered source documents.
Which of the following statements regarding special journals is not true?
-Special journals are used to record large numbers of repetitive transactions.
-Special journals are periodically summarized and posted to the general ledger.
-The balances in a special journal must always reconcile to the general ledger.
-Special journals provide a specialized format for recording similar transactions.
The balances in a special journal must always reconcile to the general ledger.
The quality assurance department at a large manufacturing business enters data into the AIS that is used to produce a weekly report that summarizes the proportion of defective units in each product line. This is an example of
-external nonfinancial information.
-external financial information.
-internal financial information.
-internal nonfinancial information.
Internal nonfinancial infomration
Which of the following information would most likely be reviewed by management on an exception report?
-monthly cash budget
-unit sales by territory and salesperson
-quality control system failures
Quality control system failures.
In an ERP system, the module used to record data about transactions in the revenue cycle is called
-customer relationship management.
-order to cash.
-purchase to pay.
Order to cash
Advantages of implementing an ERP system at a multinational company:
-Integrating information breaks down barriers between departments and streamlines the flow of information.
-Data input is captured or keyed only once.
-Management gains greater visibility into every area of the enterprise and has improved monitoring capabilities.
-Better access control is established by consolidating multiple permissions and security models into a single data access structure.
-Standardization of procedures and reports across business units.
-Customer service improves as employees can quickly access data.
-Increased productivity of employees.
Disdvantages of implementing an ERP system at a multinational company:
-ERP systems are very costly.
-Implementation is time consuming.
-Changes to business processes are sometimes required, in order to minimize the customization needed.
-Complexity of the system.
-Employees may be resistant to implement and use an ERP system and change business processes.
Steps in processing input are:
-Capture transaction data triggered by a business activity (event)
-Make sure captured data are accurate and complete
-Ensure company policies are followed (e.g. Approval of transaction)
Information collected for an activity includes:
-Activity of interest (e.g. sale)
-Resources affected (e.g. inventory and cash)
-People who participated (e.g. customer and employee)
*Information comes from source documents
Four types of data processing (acronym)
Creating new records (e.g. adding a customer)
Reading existing data
Updating previous record or data
Question for specific information in a database, e.g. What division had the most sales for the month?
ERP system integrates activities from the entire organization:
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