Vipul Agrawal
Chapter 10
1.
Which activity is part of the sales order entry process?
a. Setting customer credit limits
b. preparing a bill of lading
c. checking customer credit
d. approving sales returns
C is correct answer
2. Which document often accompanies merchandise shipped to a customer?
a. picking list
b. packing slip
c. credit memo
d. sales order
B is the correct answer
3. Which method is most likely used when a company offers customers discounts for prompt payment?
a. open-invoice method
b. balance-forward method
c. accounts receivable aging method
d. cycle billing method
A is the correct answer
4. Which of the following techniques is the most efficient way to process customer payments and update accounts
receivable?
a. EFT
b. VMI
c. FEDI
d. ACH
C is the correct answer
Chapter 11
5. Which of the following inventory control methods is most likely to be used by a company that purchases
inventory in response to customer orders?
a. JIT
b. EOQ
c. MRP
d. ABC
A is the correct answer
6. Which of the following matches is performed in evaluated receipt settlement?
a. the vendor invoice with the receiving report
b. the purchase order with the receiving report
c. the vendor invoice with the purchase order
d. the vendor invoice, the receiving report, and the purchase order
B is the correct answer
7. Which of the following is true?
a. ERS systems use disbursement vouchers
b. Setting up petty cash as an imprest fund violates segregation of duties
c. The EOQ formula is used to identify the reorder point
d. A voucher package usually includes a debit memo
B is the correct answer
8. Which document is used to establish a contract for the purchase of goods or services from a supplier?
a. vendor invoice
b. purchase requisition
c. purchase order
d. disbursement voucher
C is the correct answer
Chapter 12
9. Most costs are locked in at which stage in the production cycle?
a. product design
b. production planning
1
c. production operations
d. cost accounting
A is the correct answer
10. Which report or measure provides the most information about production efficiency?
a. cost-of-quality report
b. activity-based cost reports
c. throughput
d. MPS
C is the correct answer
11. Which document lists the components needed to manufacture a specific product?
a. operations list
b. master production schedule
c. bill of materials
d. production order
C is the correct answer
12. Which document captures information about labor used in production?
a. move ticket
b. job-time ticket
c. operations list
d. bill of materials
B is the correct answer
Chapter 13
13. Traditionally, accountants have been most involved with which portion of the HRM/payroll cycle?
a. hiring
b. payroll
c. training
d. performance evaluation
B is the correct answer
14. Which of the following statements is true?
a. Financial statements report the value of employee knowledge and skills
b. Turnover and absenteeism are costly
c. Outsourcing of HRM and payroll functions improves effectiveness
d. Default configurations of ERP packages typically provide good segregation of duties
B is the correct answer
15. Which document lists the current amount and year-to-date totals of gross pay, deductions, and net pay for one
employee?
a. payroll register
b. time card
c. paycheck
d. earnings statement
D is the correct answer
16. Online processing is most useful for which of these tasks?
a. preparing payroll checks
b. reconciling job-time tickets and time cards
c. paying payroll tax obligations
d. making changes in employee benefit choices
D is the correct answer
Paul Ambrozewicz
Chapter 10
1. Which of the following is not part of the four basic activities performed in the revenue cycle?
a.
b.
c.
d.
sales order entry
shipping
ordering
billing
2
2. This could compare the amount of the order and any existing customer account balance to that customer's credit limit.
a. limit check
b. completeness test
c. reasonable test
d. validity check
3. This is a legal contract that defines responsibility for the goods in transit.
a. packing slip
b. purchase order
c. bill of lading
d. invoice
Chapter 11
1. This is a document, or electronic form, that identifies the requisitioner; specifies the delivery location and date
needed; identifies the item numbers, descriptions, quantity, and price of each item requested; and may suggest a supplier.
a. economic order quantity
b. purchase requisition
c. purchase order
d. invoice
2. This is a document or electronic form that formally requests a supplier to sell and deliver specified products at
designated prices.
a. invoice
b. bill of lading
c. purchase order
d. debit memo
3. This is a gift from suppliers to purchasing agents fro the purpose of influencing their choice of suppliers
a. kickbacks
b. holiday bonus
c. pay raise
d. sales order
Chapter 12
1. This authorizes the removal of the necessary quantity of raw materials from the storeroom to the factory location
where they will be used
a. production order
b. materials requisition
c. move ticket
d. invoice
2. What assigns costs to specific production batches, or jobs, and is used when the product or service being sold consists
of discretely identifiable items?
a. process costing
b. lay-offs
c. job-order costing
d. trimming
3. Which of these is not an Activity-Based Costing systems type of overhead?
a. batch-related overhead
b. product-related overhead
c. administrative overhead
d. companywide overhead
Chapter 13
1. What is a report that lists each employee's gross pay, payroll deductions, and net pay in a multicolumn format?
a. deduction register
b. payroll register
3
c. general ledger
d. cash receipts
2. This maintains the payroll master file for each of its clients and performs the payroll processing activities described in
this section.
a. Internal Revenue Service
b. professional employer organization
c. payroll service bureau
d. accounting department
3. This comes with each paycheck and lists the amount of gross pay, deductions, and net pay for the current period and
year-to-date totals for each category.
a. earnings statement
b. payroll register
c. accounts receivable ledger
d. general ledger
Chapter 14
1. This represents entries made at the end of the accounting period to reflect events that have occurred but for which cash
has not yet been received or disbursed.
a. accruals
b. deferrals
c. estimates
d. corrections
2. Which of the following is not needed to ensure that data input is accurate and complete?
a. validity check
b. completeness test
c. closed-loop verification
d. sign check
e. all of the above are needed
3. What depicts the path of a transaction through the accounting system.
a. audit trail
b. document flow chart
c. data flow diagram
d. closed-loop verification
Kelli Black
Accounting 322 11:30-12:45
Chapter 10
1) This lists the items, and quantities of each item that the customer ordered?
a) Picking ticket
b) Back order
c) Packing slip
d) Bill of lading
2) This method is when customers typically pay according to each invoice and usually two copies of the invoice are
mailed to the customer, who is requested to return one copy with the payment?
a) Balance forward method
b) Open-invoice method
c) Remittance advice
d) Sales invoice method
3) A postal address to which customers send their remittances is?
a) EFT
4
b) FEDI
c) Lock box
d) Cash box
Chapter 11
1) The traditional approach that is based on calculating an optimal order size to minimize the sum of ordering, carrying,
and stock out costs?
a) Just in Time
b) Economic order quantity
c) Materials requirement planning
d) Disbursement order quantity
2) Which document is used to establish a contract for the purchase of goods or services from a supplier?
a) Vendor invoice
b) Purchase requisition
c) Purchase order
d) Disbursement voucher
3) Which of the following expenditure cycle activities can be eliminated through the use of IT or reengineering?
a) Ordering goods
b) Approving vendor invoices
c) Receiving goods
d) Cash disbursements
Chapter 12
1) This cycle is recurring set of business activities and elated data processing operations associated with the manufacture
of products?
a) Expenditure cycle
b) Production cycle
c) Revenue cycle
d) Cash disbursements cycle
2) This authorizes the removal of the necessary quantity of raw materials from the storeroom to the factory location
where they will be used?
a) Materials requisition
b) Production order
c) Move tickets
d) Move sights
3) This assigns costs to specific production batches, or jobs, and is used when the product or service being sold consists
of discretely identifiable items?
a) Process costing
b) Production costing
c) Job order costing
d) Specific process costing
Chapter 13
1) This is a report that lists each employee’s gross pay, payroll deductions, and net pay in a multicolumn format?
a) Earnings statement
b) Deduction register
c) Earning register
d) Payroll register
2) Traditionally accountants have been most involved with which portion of the HRM/payroll cycle?
a) Hiring
b) Payroll
c) Training
5
d) Performance evaluation
3) Which department should have responsibility for authorizing pay-rate changes?
a) Timekeeping
b) Payroll
c) HRM
d) Accounting
Chapter 14
1) XBRL stands for?
a) Xerox Book Reporting Language
b) Extensible Book Reporting Language
c) Extensible Business Reporting Language
d) Extensible Business Resource Language
2) From where do adjusting entries usually come?
a) treasurer
b) Controller
c) Various accounting cycle subsystems, such as sales order entry
d) Unit managers
3) Which of the following shows the implied linkages among the portions of the balanced scorecard?
a) Financial—Internal—Learning and innovation—Customer
b) Learning and innovation—Internal—Customer—Financial
c) Customer—Financial—Internal—Learning and Innovation
d) Internal—Customer—Learning and Innovation--Financial
Chapter 10
1.
A _________ is placed on each customer depending their past credit history and their ability to pay.
a.
b.
c.
d.
credit rating
credit limit
credit report
credit card
ans: b. credit limit
2.
A ________ is issued by a credit manager upon notification from the receiving department that goods had been
returned
a. credit memo
b. credit limit
c. credit report
d. credit summary
ans: a. credit memo
3.
A method of safeguarding customer remittances is known as a ____________
a.
b.
c.
d.
mail box
clerk
lockbox
black box
ans: c. lockbox
6
Chapter 11
1.
Economic order quality (EOQ) formula is used to calculate ___________.
a.
b.
c.
d.
how much to order
how little to order
how big to order
how often to order
ans: a. how much to order
2.
MPR systems enable companies to carry __________.
a.
b.
c.
d.
less inventory
more inventory
no inventory
cheap inventory
ans: a less inventory
3.
JIT systems are most effectively used with products that have _________.
a.
b.
c.
d.
predictable patterns of demand
unpredictable patterns of demands
no pattern of demand
short patterns of demand
ans: b. unpredictable patterns of demand
Chapter 12
1.
Manufacturing costs that are not economically feasible to trace directly to specific jobs are considered
____________.
a.
b.
c.
d.
manufacturing overhead
untraceable costs
Underhead
None of the above
ans: a. manufacturing overhead
2.
Anything that has a cause and effect relationship on cost is known as a __________.
a.
b.
c.
d.
relational cost
cost inhibitor
cost driver
all of the above
ans: b cost driver
3.
Lean manufacturing extends the principles of the _________ inventory system.
a.
b.
c.
d.
MRP
ERS
EOQ
JIT
7
ans: d. JIT
Chapter 13
1.
What is the first step in the HRM/ payroll cycle?
a.
b.
c.
d.
updating payroll master file
updating info about tax rates
all the above
none of the above
ans: a updating the payroll master file
2.
A __________ is used to record an employees arrival and departure time.
a.
b.
c.
d.
Pay check
Tax return
Time card
None of the above
Ans: c Time card
3.
Which of the following is not one of the HRM/ Payroll cycle activities?
a.
b.
c.
d.
Recruiting and hiring
Training
Compensation
All of the above
Ans: d. all of the above
Tyler Bridgette
Ch. 10
1. The
is a recurring set of business activites and related inforotion processing operations associated
with providing goods and serivecs to customers and collecting cash in payment for those sales.
a) Billing cycle
b) Expense cycle
c) Revenue cycle
d) None of the above
Answer: C
2. Which contains information about item numbers, quantities, prices, and other terms of the sale?
a) Sales order
b) Credit limit
c) Background check
d) Bill of lading
Answer: A
3. What is known as the maximum allowable account balance?
a) Back order
b) Picking ticket
c) Packing Slip
8
d) Credit limit
Answer: D
Ch. 11
1. Which of the following is a recurring set of business activities and related data processing operations associated with
the purchase of and payment for goods and services?
a) Revenue cycle
b) Production cycle
c) Expenditure cycle
d) All of the above
Answer: C
2. Which is another alternative approach h to managing inventory that attempts to minimize carrying inventory by only
purchasing and producing goods in response to actual sales?
a) EOQ
b) JIT
c) Purchase requisition
d) MRP
Answer: JIT
3. Which is a document or electronic form that formally requests a supplier to sell and deliver specified products at
designated prices?
a) Sales order
b) Purchase order
c) Purchase requisition
d) Debit memo
Answer: B
Ch. 12
1. Which is a recurring set of business activities and related data processing operations associated with the manufacture
of products?
a) Production cycle
b) Revenue cycle
c) Expense cycle
d) Payroll cycle
Answer: A
2. Which is a key document that specifies the part number, description, and quantity of each component used in a finished
product?
a) Operations list
b) Lean manufacturing
c) MRP-II
d) Bill of materials
Answer: D
3. Which is a key document that specifies the wequence of steps to follow in making the product, which equipment to
use, and how long each step should take?
a) Operations list
b) Lean manufacturing
c) MRP-II
9
d) Bill of materials
Answer: A
Ch. 13
1. What is the recurring set of business activities and related data processing operations associated with effectively
managing the employee workforce?
a) Production cycle
b) Human resources management/payroll cycle
c) Expense cycle
d) Payroll cycle
Answer: B
2. Which is a report that lists each employee’s gross pay, payroll deductions, and net pay in a multicolumn format?
a) Deduction registers
b) Earnings statement
c) Payroll registers
d) None of the above
Answer: C
3. Which lists the amount of gross pay, deductions, and net pay for the current period and year-to-date totals for each
category?
a) Deduction registers
b) Earnings statement
c) Payroll registers
d) None of the above
Answer: B
Ch. 14
1. Which is a report that lists the balances for all general ledger accounts?
a) Trial balance
b) Court balance
c) Jury balance
d) Judged balance
Answer: A
2. Which adjusting entry category represents entries made to counteract the effect of errors found in the general ledger?
a) Accruals
b) Deferrals
c) Corrections
d) Estimates
Answer: C
3. Which adjusting entry category represents entries that reflect a portion of expenses that occur over a number of
accounting periods.
a) Accruals
b) Deferrals
c) Corrections
d) Estimates
Answer: D
Cara Colavita
10
Chapter 10
1.
The __________ cycle is a recurring set of business activities and related information processing operations
associated with providing goods and services to customers and collecting cash in payment for those sales.
a.
b.
c.
d.
2.
The _________ lists the quantity and description of each item included in the shipment.
a.
b.
c.
d.
3.
expenditure
revenue
sales
accounting
packing slip
bill of lading
shipping slip
order slip
Under the ___________, customers typically pay according to the amount shown on a monthly statement, rather
than by individual invoices.
a.
b.
c.
d.
backward-balance method
sales invoice method
open-invoice method
balance-forward method
Chapter 11
1.
A _________ is a document or electronic form that formally requests a supplier to sell and deliver specified
products at designated prices.
a.
b.
c.
d.
2.
________ are gifts from suppliers to purchasing agents for the purpose of influencing their choice of suppliers.
a.
b.
c.
d.
3.
purchase order
economic order form
blanket purchase order
receiving report
voucher packages
disbursements
kickbacks
funds
A __________ attempts to minimize, of not totally eliminate, carrying inventory by only purchasing and
producing goods in response to actual, rather than forecasted, sales.
a.
b.
c.
d.
materials requirement planning
just-in-time inventory system
economic order quantity system
actual inventory system
Chapter 12
1.
The ____________ is a recurring set of business activities and related data processing operations associated
with the manufacture of products.
11
a.
b.
c.
d.
2.
The ___________ specifies how much of each product is to be produced during the planning period and when
that production should occur.
a.
b.
c.
d.
3.
revenue cycle
expenditure cycle
production cycle
manufacture cycle
master production schedule
manufacture list
material requisition form
production list
Examples of manufacturing overhead costs include all of the following except?
a.
b.
c.
d.
utilities
raw materials
rent
misc. supplies
Chapter 13
1.
Which of the following is NOT an important task of the human resources management/payroll cycle?
a.
b.
c.
d.
2.
The ________ is a report that lists each employee’s gross pay, payroll deductions, and net pay in a multicolumn
format.
a.
b.
c.
d.
3.
training
compensation
accounts receivable
performance evaluation
payroll register
deduction register
earnings statement
employee pay list
Where should unclaimed paychecks be returned?
a.
b.
c.
d.
accounts receivable clerk
the human resource manager
cashier
payroll department
Chapter 14
1.
Journal entries to update the general ledger may be documented on a form called a _________.
a.
b.
c.
d.
2.
trial balance
journal voucher
adjusted trial balance
income statement
A _________is done to ensure that the amount field in the journal entry contains only numeric data.
a.
zero-balance check
12
b.
c.
d.
3.
sign check
validity check
field (format) check
The _________ depicts the path of a transaction though the accounting system.
a.
b.
c.
d.
accounting path
information system
management trail
audit trail
Chapter 14
1.
_________ is a form used to document journal entries to update the general ledger.
a.
b.
c.
d.
Journal Voucher
W-2
W-4
None of the above
Ans: a. journal voucher
2.
_________ is used to house data for a number of years
a.
b.
c.
d.
Data Barn
Hard drive
Data warehouse
All of the above
Ans: c. Data warehouse
3.
A report that is used to provide a multidimensional perspective of an organizations performance is a
__________.
a.
b.
c.
d.
Journal Voucher
W-2
Balanced score card
All of the above
Ans: c. balanced score card
Chapter 10
1. What is a credit limit?
A. maximum allowable account balance
B. minimum allowable account balance
C. maximum allowable cash advance
D. minimum allowable payment
2. Customers pay their balance according to each invoice under the _____ method?
A. balance-forward
B. cycle-billing
C. open-invoice
D. credit
3. A technology used for inventory and product management is ____?
A. EFT
B. FEDI
13
C. ACH
D. RFID
Chapter 11
1. The method of ordering materials based on optimal order size to minimize associated cost is known as _____?
A. Materials Requirement Panning
B. Economic Order Quantity
C. Just-in-Time
D. Blanket Purchase Ordering
2. Which of the following is an advantage provided by the use of disbursement vouchers?
A. Reduces the number of checks to be written
B. Simplifies the tracking of all payables
C. Limits the time between invoice approval and invoice payment
D. All of the above
3. A commitment to purchase specified items at designated prices from a particular supplier for a set time period is
known as what?
A. Kickback
B. Blanket purchase order
C. Purchase requisition
D. None of the above
Chapter 12
1. What is job-order costing?
A. Assigning costs to each process in the production cycle
B. Assigning costs based on profitability of each product
C. Assigning costs to specific production batches
D. Assigning costs by rate of production
2. Which of the following is not an example of a cost driver?
A. Utility Usage
B. Sales Orders
C. Purchase Orders
D. Goods Shipped
3. Which of the following is not a quality control cost?
A. Prevention of defects
B. Inspection of finished goods
C. Internal failure costs of reworking
D. Batch setup costs
Chapter 13
1. Experts estimate that the costs of replacing an employee are ____ times the employee’s annual salary.
A. 2
B. 1
C. 0.5
D. 1.5
2. What information is contained on a Form W-2?
A. Employer’s quarterly federal tax return
B. Report of income paid to independent contractors
C. Report of wages and withholdings for each employee
D. Report of all taxable income for the year
3. _____ is a general ledger account used to check the accuracy of recording payroll costs and their subsequent
allocation to appropriate cost centers.
A. Payroll expense
B. Payroll clearing
C. Wages payable
D. Work-in-progress
Chapter 14
1. _____ represent entries made at the end of an accounting period to reflect events that have occurred but for which
cash has not yet been received or disbursed.
A. Deferrals
B. Estimates
14
C. Accruals
D. Revaluations
2. A zero-balance check is used to do what?
A. to ensure that the amount field in the journal entry contains only numeric data
B. to verify that total debits equal total credits in a journal entry
C. matches account numbers with account descriptions
D. check that general ledger accounts exists for each account number referenced
3. _____ is a report that provides a multidimensional perspective of organizational performance in the four areas of
financials, customers, internal operations, and innovation and learning.
A. SWOT analysis
B. Balanced scorecard
C. Six Sigma
D. Value chain analysis
Peter Estes
Acct 322- Exam 3 questions
Ch 10
1.
2.
3.
which of the following is not one of the four basic business activities performed in the revenue cycle?
a. sales order entry
b. shipping
c. billing
d. reporting
e. cash collections
_________ contains information about item numbers, quantities, price, and other terms of sale.
a. credit limit
b. sales order
c. vendor-managed inventory
d. lockbox
which document often goes along with merchandise shipped to a customer?
a. packing list
b. credit memo
c. packing slip
d. sales order
ch 11
1.____________________ is another alternative approach to managing inventory, it system attempts to minimize, if not
totally eliminate, carrying inventory by only purchasing and producing goods in response to actual rather than forecasted
sales
a. materials requirement planning
b. just-in-time inventory system
c. economic order quantity
d. purchase requisition
2. which of the following is the primary document used in the receiving subsystem of the expenditure cycle?
a. item number
b. receiving report
c. debit memo
d. blanket purchase memo
3. _______________ is the combination of vender invoice and supporting documentation.
a. voucher package
b. nonvoucher system
c. voucher system
d. disbursement voucher
15
ch 12.
1.
2.
3.
ch 13
1.
which of the following authorizes the removal of the necessary quantity of raw materials from the storeroom to
the factory location where they will be used?
a.move tickets
b. production order
c. materials requisition
d. operation description
_________ assigns the costs to specific production batches, or jobs and is used when the product or service
being sold consists of discretely identifiable items.
a. process costing
b. job-order costing
c. request for proposal
d. cost driver
__________ is anything that has a cause-and effect relationship on costs.
a. activity based costing
b. cost driver
c. systems analysis
d. lean manufacturing
a ___________ is when each employee receives minimum coverage in medical coverage and pension
contributions, plus additional benefit credits that can be used to acquire extra vacation time
a. payroll service
b. professional organization
c. flexible benefit
d. taxes
2.
where should unclaimed paychecks be returned?
a. HRM department
b. Cashier
c. Payroll department
d. Supervisisor
3.
which department should be responsible for authorizing raises in hourly rate?
a. timekeeping
b. accounting
c. HRM
d. Payroll
Ch 14
1.
2.
3.
entries that are used to update the general ledger may be documented in this form?
a. journal voucher
b. general journal listing
c. balanced scorecard
d. data marts
where do adjusting entries come from?
a. unit managers
b. controller
c. unit managers
d. OLAP
which is an important part of the audit trial?
a. journal vouchers
b. data warehouses
16
c.
d.
flexible budgets
trial balance
Amy Everett
Exam Questions
Chapter 10
1.
A legal contract that defines responsibility for the goods in transit is a:
a)
b)
c)
d)
2.
Under the _____________, customers typically pay according to the amount shown on a monthly statement,
rather than by individual invoices.
a)
b)
c)
d)
3.
packing slip
sales invoice
bill of lading
picking ticket
open-invoice method
remittance advice
balance-forward method
monthly statement
The _________ provides precise estimates of cash inflows and outflows.
a)
b)
c)
d)
sales analysis reports
profitability analysis reports
cash budget
accounts receivable aging schedule
Chapter 11
1.
___________ seeks to reduce required inventory levels by improving the accuracy of forecasting techniques to
better schedule purchases to satisfy production needs.
a)
b)
c)
d)
2.
A __________ is a document or electronic form that formally requests a supplier to sell and deliver specified
products at designated prices.
a)
b)
c)
d)
3.
economic order quantity
reorder point
materials requirements planning
just-in-time inventory system
purchase requisition
blanket purchase order
purchase order
receiving report
The ____________ identifies the supplier, lists the outstanding invoices, and indicates the net amount to be paid
after deducting any applicable discounts and allowances.
a)
b)
c)
d)
nonvoucher system
voucher system
disbursement system
voucher package
Chapter 12
17
1.
A __________ authorizes the removal of the necessary quantity of raw materials from the storeroom to the
factory location where they will be used.
a)
b)
c)
d)
2.
__________ assigns costs to each process, or work center, in the production cycle, then calculates the average
cost for all units produced.
a)
b)
c)
d)
3.
production order
move tickets
materials requisition
bill of materials
job-order costing
activity-based costing
process costing
cost driver
Which of the following is a type of overhead?
a)
b)
c)
d)
batch-related
product-related
companywide
all of the above
Chapter 13
1.
The _________ is a report that lists each employee’s gross pay, payroll deductions, and net pay in multicolumn
format.
a)
b)
c)
d)
2.
Payroll services bureaus and PEOs are especially attractive to small and midsize businesses for which reasons?
a)
b)
c)
d)
3.
deduction register
earnings statement
payroll register
position control report
reduced costs
wider range of benefits
freeing up computer resources
all of the above
Which of the following is a threat to payroll processing?
a)
b)
c)
d)
unauthorized changes to payroll master file
inaccurate time data
inaccurate processing of payroll
all of the above
Chapter 14
1.
Which of the following is a category in which an adjusting entry would fall into?
a)
b)
c)
d)
accruals
deferrals
estimates
all of the above
18
2.
Audit trails facilitate the following tasks:
a)
tracing any transaction from its original source document to the general ledger and to any report or
other document using that data
b) tracing any item appearing in a report back through the general ledger to its original source document
c) tracing all changes in general ledger accounts from their beginning balance to their ending balance
d) all of the above
3.
__________ uses sophisticated statistical analysis, including artificial intelligence techniques such as neural
networks, to “discover” unhypothesized relationships in the data.
a)
b)
c)
d)
data warehouse
data marts
data mining
online analytical processing
Marty Fagler
Accounting 322
Exam 3 questions
Chapter 10
1) Once inventory availability has been determined, the system then creates a ______________ that lists the items, and
quantities of each item that the customer ordered.
a) back order
b) picking ticket
c) credit limit
d) bill of lading
ANSWER: b) picking ticket
2) The third basic activity in the revenue cycle is_______________?
a) billing customers
b) filing customer orders
c) the receipt of orders from customers
d) collecting cash
ANSWER: a) billing customers
3) Which of the following is not one of the four basic business activities performed in the revenue cycle?
a) Billing
b) Cash Collecting
c) Shipping
d) Borrowing
ANSWER: d) Borrowing
Chapter 11
1) ______________ costs are those that result from inventory shortages, such as lostsales or production delays?
a) Stockout
b) Carrying
c) Ordering
d) Variance
ANSWER: a) Stockout
19
2) The _______________is a document, or electronic form, that identifies the requisitioner; specifies the delivery
location and date needed; identifies the item numbers, descriptions, quatitiy, and price of each item requested; and may
suggest a supplier?
a) reorder print
b) just-in-time inventory system
c) purchase requisition
d) bill of lading
ANSWER: c) purchase requisition
3) Which of the following inventory control methods is most likely to be used by a company that purchases inventory in
response to customer orders?
a) JIT
b) EOQ
c) MRP
d) ABC
ANSWER: a) JIT
Chapter 12
1) Subsequent transfers of raw materials throughout the factory are documented on ______________, which identify the
parts being transferred, the laction to which they are transferred, and the time of transfer?
a) Move Ticket
b) Production Order
c) Materials Requisition
d) Master Production Schedule (MPS)
ANSWER: a) Move Ticket
2) ____________ assigns costs to specific production batches, or jobs, and is used when the product or service being sold
consists of discretely indentifiable items?
a) Process Costing
b) Product Costing
c) Job-Order Costing
d) Purchase Costing
ANSWER: c) Job-Order Costing
3) Activity-based costing (ABC) can refine and improve cost allocations under?
a) Both job-order and process cost systems
b) Job-order cost system only
c) Process cost system only
d) Throughput cost system only
ANSWER: a) Both job-order and process cost systems
Chapter 13
1) Traditionally, accountants have been most involved with which portion of the HRM/payroll cycle?
a) Hiring
b) Payroll
c) Training
d) Performance Evaluation
ANSWER: b) Payroll
20
2) Which documents lists the current amount and year-to-date totals of gross pay, deductions, and net pay for on
employee?
a) Payroll register
b) Time card
c) Paycheck
d) Earnings statement
ANSWER: d) Earnings statement
3) Where should unclaimed paychecks be returned?
a) HRM department
b) Cashier
c) Payroll department
d) Absent employee’s supervisor
ANSWER: b) Cashier
Chapter 14
1) The ______________ is a report that lists the balances for all general ledger accounts?
a) Income statement
b) Retained earnings statement
c) Trial Balance
d) Statement of Changes in Cash Flows
ANSWER: c) Trial Balance
2) The _____________ depicts the path of a transaction through the accounting system?
a) Audit Trail
b) Cash Cycle
c) General Journal Listing
d) None of the above
ANSWER: a) Audit Trail
3) A ____________ contains both detailed and summarized data for a number of years and is used for analysis rather
than transaction processing?
a) Data Mart
b) Data Document
c) Data Flow Document
d) Data Warehouse
ANSWER: d) Data Warehouse
Michael Gainer
Chapter 10
1.
Which cycle is a recurring set of business activities and related information processing operations
associated with providing goods and services to customers and collecting cash in payment for those sales?
a. revenue
b. expenditure
c. production
d. payroll
21
2.
Which edit check is not performed to ensure complete accuracy?
a. Validity
b. Completeness
c. Reasonableness
d. Limit
3.
Which is not a threat to Sales Order Entry?
a. Incomplete or inaccurate customer orders
b. Credit sales to customers with poor credit
c. Theft of inventory
d. Legitimacy of orders
Chapter 11
1.
Which is a threat to ordering goods in the expenditure cycle?
a. Purchasing goods from authorized suppliers
b. Purchasing goods of superior quality
c. Ordering unnecessary items
d. Purchasing goods at stable prices
2.
Which isn’t a threat in receiving and storing goods?
a. Receiving unordered goods
b. Making errors in counting goods received
c. Stealing inventory
d. Unauthorized orders
3.
Which is a threat to the paying of vendor invoices?
a. Paying for goods not received
b. Failing to take advantage of purchase discounts
c. Paying the same invoice twice
d. All of the above
Chapter 12
1.
A company’s AIS plays a vital role in the production cycle.
a. True
b. False
2.
Product design is the first step in the production cycle.
a. True
b. False
3.
What is the only threat to product design?
a. Over or under production
b. Poor product design
c. Disruption of operations
d. Poor performance
Chapter 13
1.
Employee morale is important to an organization.
a. True
b. False
2.
What is the first activity in the HRM/payroll cycle
a. validate time and attendance data
22
b.
c.
d.
3.
update tax rates
update payroll master file
prepare payroll
Which is a reason payroll service bureaus are attractive to small and midsize businesses?
a. reduced costs
b. wider range of benefits
c. freeing up of computer resources
d. all of the above
Danielle Grimm
Test 3 questions
Chapter 10
1. The document that lists the items and quantities of each item that the customer ordered is called?
a. back order
b. picking ticket
c. bill of lading
d. remittance advice
answer: b
2. Under this method customers typically pay according to each invoice.
a. open-invoice
b. monthly statement
c. balance-forward
d. remittance advice
answer: a
3. ________ integrates the exchange of funds with the exchange of the remittance data.
a. electronic lockbox
b. electronic funds transfer
c. financial electronic data interchange
d. vendor management inventory
answer: c
Chapter 11
1. This approach is based on calculating an optimal order size to minimize the sum of ordering, carrying, and stock out
costs.
a. EOQ
b. MRP
c. JIT
d. FEDI
answer: a
2. This is a document that formally requests a supplier to sell and deliver specified products at designated prices.
a. receiving report
b. purchase order
c. debit memo
d. credit memo
23
answer: b
3. Threats relating to receiving and storing goods include all of the following except:
a. receiving unordered goods
b. making errors in counting goods received
c. stealing inventory
d. purchasing goods of inferior quality
answer: d
Chapter 12
1. ________ is an extension of materials resource planning that seeks to balance existing production capacity and raw
materials needs to meet forecasted sales demand.
a. lean manufacturing
b. manufacturing resource planning
c. master production schedule
d. computer-integrated manufacturing
answer: b
2. _______ identifies the parts being transferred, the location to which they are transferred, and the time of transfer.
a. move tickets
b. production order
c. operations list
d. master production schedule
answer: a
3. Quality control costs can be divided into which of the following areas:
a. prevention costs
b. inspection costs
c. external and internal failure costs
d. all of the above
answer: d
Chapter 13
1. Employee’s paychecks typically include:
a. earnings statement
b. deduction register
c. payroll register
d. none of the above
answer: a
2. Payroll processing threats include all the following except:
a. hiring unqualified employees
b. inaccurate time data
c. inaccurate processing of payroll
d. fraudulent paychecks
answer: a
3. ________ not only processes payroll, but also provides HRM services such as employee benefit design and
administration.
a. payroll clearing account
b. payroll service bureau
24
c. professional employer organization
d. flexible benefit plans
answer: c
Chapter 14
1. Adjusting entries fall into which of the following categories:
a. accruals
b. deferrals
c. estimates
d. all of the above
answer: d
2. A balanced scorecard contains measures reflecting the perspectives of the organization that includes all the following
except:
a. internal operations
b. external operations
c. financial
d. customer
answer: b
3. _______ is using sophisticated statistical analysis, including artificial intelligence techniques.
a. business intelligence
b. data mining
c. data marks
d. data warehouse
answer: b
LeeAnne Harris Test 3 Questions
Chapter 10
1.
______ is the maximum allowable account balance for each customer based on the customer’s past credit history
and ability to pay.
a.
b.
c.
d.
credit maximum
credit amount
credit allowed
credit limit
Answer: d
2.
Which of the following is one of the 2 main functions in shipping?
a.
b.
c.
d.
pick & pack order
take order
check credit
call customer
Answer: a
3.
______ adds complexity to outbound logistics.
25
a.
b.
c.
d.
internationalization
outsourcing
billing
globalization
Answer: d
Chapter 11
1.
The ______ records the adjustment being requested.
a.
b.
c.
d.
debit memo
receiving report
purchase order
sales receipt
Answer: a
2.
Evaluated Receipt Settlement Approach is _______?
a.
b.
c.
d.
one-way match
three-way match
all-way match
two-way match
Answer: d
3.
All of the following are threats associated with Ordering Goods, except?
a.
b.
c.
d.
receiving unordered goods
kickbacks
purchasing goods at inflated prices
ordering unnecessary items
Answer: a
Chapter 12
1.
A ______ is used to collect data about labor activity.
a.
b.
c.
d.
late ticket
overhead ticket
job-time ticket
on-time ticket
Answer: c
2.
The Production Cycle includes ____ threats.
a.
b.
c.
d.
2
5
7
8
Answer: d
3.
Anything that has a cause-and-effect relationship on costs is a(n)?
26
a.
b.
c.
d.
cost wedge
cost increaser
cost driver
cost ticket
Answer: c
Chapter 13
1.
A ________ lists the miscellaneous voluntary deductions for each employee.
a.
b.
c.
d.
deduction register
pay stub
net amount
tax stub
Answer: a
2.
One threat of Employment Practices is?
a.
b.
c.
d.
theft of checks
inaccurate time data
loss of data
violation of employment law
Answer: d
3.
A _______ is used to record an employee’s arrival and departure times.
a.
b.
c.
d.
time card
clock button
lockbox
pay counter
Answer: a
Chapter 14
1.
Smaller versions of data warehouses are called _______.
a.
b.
c.
d.
data room
data lab
data mart
data library
Answer: c
2.
Using sophisticated statistical analysis to discover unhypothesized relationships in data is called _____?
a.
b.
c.
d.
data diddling
data hunting
data surfing
data mining
Answer: d
27
3.
General journal listing shows the detail of each entry posed to the _______.
a.
b.
c.
d.
personal record
account listing
general ledger
accounts receivable
Answer: c
Megan Hartman
Chapter 10
1.) Four basic business activities performed in the revenue cycle include all of the following except:
A: Billing
B: Shipping
C: Cash Collections
D: Ordering Goods
Answer: D
2.) _______________ is a legal contract that defines responsibility for the goods in transit.
A: Remittance List
B: Bill of Lading
C: Credit Memo
D: Packing Slip
Answer: B
3.) The basic document created in the billing process, the_____________________, notifies customers of the amount to
be paid and where to send the payment.
A: Remittance Advice
B: Packing Slip
C: Sales invoice
D: Bill of Lading
Answer: C
Chapter 11
1.) Three basic business activities in the expenditure cycle include all of the following except:
A: Ordering goods, supplies, and services
B: Shipping goods supplies, and services
C: Receiving goods, supplies, and services
D: Paying for goods, supplies, and services
Answer: B
2.) A ________________ attempts to minimize, if not totally eliminate, carrying inventory by only purchasing and
producing foods in response to actual, rather than forecasted sales.
A: Economic order quantity
B: Materials requirement planning
C: Evaluated receipt settlement
D: Just-in-time inventory system
Answer: D
28
3.) A ________________ documents details about each delivery, including the date received, shipper, supplier, and
purchase order number.
A: Receiving report
B: Purchase Order
C: Debit Memo
D: Purchase Requisition
Answer: A
Chapter 12
1.) The _________________ cycle is a recurring set of business activities and related data processing operations
associated with the manufacture of products.
A: Revenue
B: Production
C: Expenditure
D: Payroll
Answer: B
2.) A(n) _______________ specifies the part number, description, and quantity of each component used in a finished
product.
A: Bill of Materials
B: Operations List
C: Materials requisition
D: Production Order
Answer: A
3.) __________________ assigns costs to each process, or work center, in the production cycle, then calculates the
average cost for all units.
A: Job-Order Costing
B: Product Costing
C: Operation Costing
D: Process Costing
Answer: D
Chapter 13
1.) The ________________ cycle is a recurring set of business activities and related data processing operations
associated with effectively managing the employee workforce.
A: Revenue
B: Production
C: Expenditure
D: Human Resource Management/Payroll
Answer: D
2.) _________________ lists the amount of gross pay, deductions, and net pay for the current period and year-to-date
totals for each category.
A: Payroll Register
B: Time Card
C: Earnings Statement
D: Flexible Benefit Plans
Answer: C
3.) _______________ records the employee’s arrival and departure times for each work shift.
A: Payroll Register
B: Time Card
29
C: Earnings Statement
D: Flexible Benefit Plans
Answer: B
Chapter 14
1.) Updating the general ledger consists of posting journal entries that originate from __________________.
A: Accounting Subsystems
B: the Treasurer
C: None of the Above
D: Both A & B
Answer: D
2.) _______________ represent entries made at the end of the accounting period to reflect events that have occurred but
for which cash has not yet been paid.
A: Accruals
B: Deferrals
C: Estimates
D: Revaluations
Answer: A
3.) _______________ represent entries that reflect a portion of expenses that occur over a number of accounting periods.
A: Accruals
B: Deferrals
C: Estimates
D: Revaluations
Answer: C
Amy Hines
Test 3 Questions
Ch. 10
1. Which of the following is not one of the four basic activities performed in the revenue cycle?
a. Billing
b. Shipping
c. Cash Collections
d. Ordering Goods, Supplies, and Services
e. NONE OF THE ABOVE
Answer: d
2. A legal contract that defines responsibility for goods in transit is called a/an ___________.
a. Packing Slip
b. Picking Ticket
c. Bill of Lading
d. Sales Invoice
e. NONE OF THE ABOVE
Answer: c
3. Which method for maintaining accounts receivable involves returning a remittance advice with payment for a specific
invoice?
a. open-invoice method
b. balance-forward method
c. monthly billing method
30
d. cycle billing
e. NONE OF THE ABOVE
Answer: a
Ch. 11
1. This type of inventory control method attempts to minimize if not totally eliminate, carrying inventory by only
purchasing and producing goods in response to actual sales.
a. EOQ, Economic Order Quantity
b. MRP, Materials Requirement Planning
c. JIT, Just-in-Time Inventory
d. NONE OF THE ABOVE
Answer: c
2. A ______________ is a commitment to purchase specified items at designated prices from a particular supplier for a
set time period.
a. Purchase requisition
b. Blanket purchase order
c. Purchase order
d. Contract purchase order
e. NONE OF THE ABOVE
Answer: b
3. This document is prepared after a supplier agrees to take back damaged or poor-quality goods or to grant a price
reduction.
a. credit memo
b. receiving report
c. disbursement voucher
d. debit memo
e. NONE OF THE ABOVE
Answer: d
Ch. 12
1. Which document details how much of each product is to be produced during the planning period and when that
production should occur?
a. master production schedule
b. bill of materials
c. operations list
d. production order
e. NONE OF THE ABOVE
Answer: a
2. Which of the following is not one of the categories of overhead distinguished by the ABC system?
a. Companywide overhead
b. Manufacturing overhead
c. Product-related overhead
d. Batch-related overhead
e. NONE OF THE ABOVE
Answer: b
31
3. A __________________ authorizes the removal of the necessary quantity of raw materials from the storeroom to the
factory location where they will be used.
a. Move ticket
b. Bill of materials
c. Materials requisition
d. Job-time ticket
e. NONE OF THE ABOVE
Answer: c
Ch. 13
1. The ________________ is a report that lists each employee’s gross pay, payroll deductions, and net pay in a
multicolumn format.
a. Earnings statement
b. Deduction register
c. Form 941
d. Payroll register
e. NONE OF THE ABOVE
Answer: d
2. What is the key control procedure for dealing with the threat of unauthorized changes to the payroll file?
a. Segregation of duties
b. Authorization
c. Cross-footing the payroll register
d. Authentication
e. NONE OF THE ABOVE
Answer: a
3. A _________________ not only processes payroll but also provides HRM services such as employee benefit design
and administration.
a. DHHR, Department of Health and Human Resources
b. PEO, Professional Employer Organization
c. Payroll Service Bureau
d. ALL OF THE ABOVE
Answer: b
Ch. 14
1. Adjusting entries made at the end of the accounting period to reflect events that have occurred but for which cash has
not yet been received or disbursed are called __________.
a. Accruals
b. Deferrals
c. Estimates
d. Revaluations
e. NONE OF THE ABOVE
Answer: a
2. Depreciation and bad-debt expenses are examples of which category of adjusting entries?
a. Accruals
b. Deferrals
32
c. Estimates
d. Revaluations
e. NONE OF THE ABOVE
Answer: c
3. The process of accessing the data contained in a data warehouse and using it for strategic decision making is often
referred to as ______________.
a. Online analytical processing
b. Data mining
c. Business intelligence
d. Responsibility accounting
e. NONE OF THE ABOVE
Answer: c
Jay Henry
Accounting 322
Test #3 questions
Chapter 10
1. The ___________ contains information about item numbers, quantities, prices, and other terms of sale.
A. sales order
B. payment
C. billing
D. credit limit
2. A _________ lists the items and quantities of each item that a customer ordered.
A. back order
B. payment
C. picking ticket
D. credit limit
3. The __________ lists the quantity and description of each item included in a shipment.
A. bill of lading
B. packing slip
C. picking ticket
D. back order
Chapter 11
1. The _________ cycle is a recurring set of activities and related data processing operations associated with the
purchase of and payment for goods and services.
A. expenditure
B. revenue
C. business
D. inventory
2. A ________ is a document or electronic form that formally requests a supplier to sell and deliver specified
products at designated prices.
A. purchase order
B. revenue cycle
C. packing slip
D. picking ticket
3. _________ are gifts from suppliers to purchasing agents for the purpose of influencing their choice suppliers.
A. Kickbacks
B. Toys
C. Threats
D. Throwbacks
Chapter 12
33
1.
The __________ cycle is a recurring set of business activities and related data processing operations associated
with the manufacture of products.
A. production
B. expenditure
C. revenue
D. payment
2. A ________ order authorizes the manufacture of a specified quantity of a particular product.
A. production
B. purchase
C. money
D. account
3. Most costs are locked in at which stage in the production cycle?
A. product design
B. production planning
C. production operations
D. cost accounting
Chapter 13
1. The _______ cycle is a recurring set of activities and related data processing operations associated with
effectively managing the employee workforce.
A. production
B. payroll
C. revenue
D. expenditure
2. Companies use a ______ to record the employee’s arrival and departure times.
A. honor code
B. signature
C. time card
D. voice recognition
3. The _________ is a report that lists each employee’s gross pay, payroll deductions, and net pay in a multi
column format.
A. payroll register
B. earnings statement
C. paycheck
D. payroll cash machine
Chapter 14
1. The ________ is a report that lists the balances for all general ledger accounts.
A. trial balance
B. general ledger
C. balance sheet
D. income statement
2. A __________ is a report that provides a multidimensional perspective of organizational performance.
A. balanced scorecard
B. net income
C. balance sheet
D. trial balance
3. ___________ is using sophisticated statistical analysis to discover unhypothesized relationships in the data.
A. data mining
B. data looking
C. data changing
D. data investigation
Joshua Arnold
Chapter 10
1.) A legal contract that defines responsibility for the goods in transit?
a) Packing slip
b) Bill of lading
c) Invoice
d) Credit memo
34
2.) A ______ lists all transactions, including both sales and payments, that occurred during the past month and
informs customers of their currents account balances?
a) Remittance list
b) Credit memo
c) Sales order
d) Monthly statement
3.) Customers typically pay according to each invoice, which method does this describe?
a) Open-invoice method
b) Balance-forward method
c) Vendor managed inventory
d) Electronic funds transfer
Chapter 11
1.) A _____ is a document or electronic form that formally requests a supplier to sell and deliver specified product
at designated prices?
a) Purchase requisition
b) Purchase order
c) Reorder point
d) Debit memo
2.) _____ are gifts from suppliers to purchasing agents for the purpose of influencing their choice of suppliers?
a) Kickbacks
b) Imprest funds
c) JIT
d) Blanket purchase order
3.) Which of the following inventory control methods is most likely to be used by a company that purchases
inventory in response to customer order?
a) JIT
b) EOQ
c) MRP
d) ABC
Chapter 12
1.) Which document specifies the part number, description, and quantity of each component used in a finished product?
a) Operations list
b) Bill of materials
c) Production order
d) Materials requisition
2.) Most costs are locked in at which stage in the production cycle?
a) Production design
b) Production planning
c) Production operations
d) Cost accounting
3.) Activity-based costing can be used to refine which of the following?
a) Job-order costing
b) Process costing
c) Both
d) Neither
Chapter 13
1.) Traditionally, accountants have been most involved with which portion of the HRM/payroll cycle?
35
a)
b)
c)
d)
Hiring
Payroll
Training
Performance evaluation
2.) Which of the following are important tasks involved with the HRM/payroll cycle?
a) Recruiting and hiring new employees
b) Training
c) Job assignment
d) All of the above
3.) Which department should have responsibility for authorizing pay-rate changes?
a) Timekeeping
b) Payroll
c) HRM
d) Accounting
Chapter 14
1.) From where do adjusting entries come from?
a) Treasurer
b) Controller
c) Various accounting cycle subsystems
d) Unit managers
2.) A _____ contains both detailed and summarized data for a number of years and is used for analysis rather than
transaction processing?
a) Data warehouse
b) Data mart
c) Data storage
d) None of the above
3.) Measures of cycle time would most likely appear in which part of the balanced scorecard?
a) Innovation and learning
b) Customer
c) Internal operations
d) Financial
Mitzy Kenny
Chapter 10
1) A list of items and quantities of each item that authorizes the inventory control function to release merchandise
to the shipping department is called a:
a)
b)
c)
d)
packing list
picking ticket
shipping ticket
order list
2) A ___________________ is a legal contract that defines responsibility for the goods in transit.
a) packing slip
b) picking ticket
c) bill of lading
d) shipping order
3) In the balance-forward method of payment, customers typically
a) pay according to the amount shown on a monthly statement, rather than by individual invoices.
b) Pay according to each invoice.
c) Pay according to their own ability.
36
d) None of the above.
Chapter 11
1) The _______ approach to managing inventory seeks to reduce required inventory levels by improving the
accuracy of forecasting techniques to better schedule purchases to satisfy production needs.
a) EOQ
b) MRP
c) JIT
d) None of the above
2) Which of the following documents details about each delivery, including the date received, shipper, supplier,
and purchase order number?
a) shipping label
b) packing slip
c) receiving report
d) delivery confirmation
3) Characteristics of an imprest fund include:
a) It is set at a fixed amount
b) It requires vouchers for every disbursement
c) A only
d) B only
e) A and B
Chapter 12
1) A Coca-Cola manufacturing plant is an example of
a) process costing
b) job-order costing
c) manufacturing costing
d) plant costing
2) Construction of a custom built home is an example of
a) process costing
b) job-order costing
c) manufacturing costing
d) plant costing
3) Research and development is an example of
a) Companywide overhead
b) Batch-related overhead
c) Product-related overhead
d) None of the above
Chapter 13
1) The _________________ portion of an employee paycheck lists the amount of gross pay, deductions, and net
pay for the current period and year-to-date totals for each category.
a. Earnings statement
b. Payroll summary
c. Wage report
d. None of the above
2) When notification of changes in tax rates and other payroll deductions is received, who should update the
information?
a) Provisioning department
37
b) Payroll department
c) Payment department
d) All of the above
3) A flexible benefit plan may also be called a
a) employee choice plan
b) cafeteria plan
c) fringe plan
d) none of the above
Chapter 14
1) Which of the following is (are) one of the five basic categories of adjusting entries?
a) Revaluations
b) Estimates
c) Deferrals
d) A and B only
e) All of the above
2) ____________________ accounting is reporting financial results on the basis of managerial responsibilities
within an organization
a) managerial
b) financial
c) responsibility
d) none of the above
3) Smaller data warehouses are called
a) data marts
b) data stores
c) databases
d) none of the above
Laura Yost
Acct 322
EXAM Questions
Chpt 10
1.
There are 4 basic business activities, which of the following is one of them?
A. Sales order entry
B. Shipping
C. Billing
D. Cash Collection
E. All of the above
Answer: E
2.
If someone is in charge of the record keeping for a particular buisness cycle they are prohibited from also doing
which of the following?
A. Bank Reconciliation
B. Custody
C. Authorization
D. B and C
E. None of the above
Answer: E
3.
_______ is a legal contract that defines responsibility for goods in transit
38
A.
B.
C.
D.
Packing slip
Purchase order
Bill of lading
Sales Receipt
Answer: C
Chpt 11
1.
The ________ specifies when to order.
A. Purchase point
B. Reorder point
C. End point
D. Empty point
Answer: B
2.
Which of the following is one of the three basic activities of the expenditure cycle?
A. Ordering
B. Receiving
C. Payment
D. All of the above
Answer: D
3.
The ERS approach is also called the __________ approach.
A. Orderless
B. Invoice
C. Invoiceless
D. None of the above
Answer: C
Chpt 12
1.
The ________is a recurring set of business activities and related data processing operations associated with the
manufacture of products.
A. Pricing cycle
B. Production cycle
C. Order cycle
D. Inventory cycle
Answer: B
2.
_________is an extension of materials resource planning that seeks to balance existing production capacity and
raw materials needed to meet forecasted sales demand.
A. MPRII
B. MPS
C. MAP
D. PRM
Answer: A
3.
Subsequent transfers of raw materials throughout the factory are documented on a/an__________.
A. inventory check
B. invoicing ticket
C. theater ticket
D. movie ticket
Answer: D
Chpt 13
1.
The payroll cycle is part of which of the following?
39
A.
B.
C.
D.
Purchasing
Human Resources Management
Operational functions
Inventory
Answer: B
2.
For employees paid hourly companies use a __________ to record the employee’s arrival and departure times
for each work shift.
A. Stamp
B. Clock card
C. Time card
D. None of the above
Answer: C
3.
__________lists the amount of gross pay, deductions, and net pay for current period.
A. Earnings Statement
B. Deductions Register
C. Payroll Register
D. HRM software
Answer: A
Chpt 14
1.
Journal entries to update the general ledger may be documented on a form called a _______.
A. reporting system
B. trial balance
C. journal voucher
D. general journal invoice
Answer: C
2.
__________accounting is reporting financial results on the basis of managerial responsibilities with in an
organization.
A. Responsibility
B. Representative
C. Resonability
D. Duty
Answer: A
3.
The basic activities in the GLARS are which of the following?
A. Update the general ledger.
B. Post adjusting entries
C. Prepare financial statements
D. Produce managerial reports
E. All of the above
Answer: E
Chapter 10
1.
Which of the following is not a business activity performed in the revenue cycle?
a. Sales order entry
b. Shipping
c. Billing
d. Cash Collections
e. All of the above
f. None of the Above
2.
Which of the following is considered a threat to cash collections?
40
a.
b.
c.
d.
e.
f.
3.
Incomplete customer order
Theft of inventory
Billing errors
Theft of cash
C and D
All of the above
A ___________ provides precise estimates of cash inflows and outflows.
a. Sales analysis report
b. Cash budget
c. Profitability report
d. A and C
e. None of the above
Chapter 11
1.
Which of the following are considered to be the basic activities of the expenditure cycle?
a. Ordering goods, supplies, and services
b. Receiving and storing goods, supplies, and services
c. Paying for goods, supplies, and services
d. All of the above
2.
Which of the following is considered to be crucial in the decision of selecting inventory suppliers?
a. Price
b. Dependability in making deliveries
c. Quality of materials
d. All of the above
e. None of the above
3.
AIS must provide operational information needed to perform which of the following expenditure cycle functions?
a. Selecting the appropriate suppliers
b. Verifying the accuracy of vendor invoices
c. A and B
d. None of the above
Chapter 12
1.
Which of the following is not an activity performed during the production cycle?
a. Billing
b. Product Design
c. Planning and Scheduling
d. Cost accounting
e. Production operations
2.
__________ assigns costs to each process or work center in the production cycle, then calculates the average cost
for all units produced.
a. Job order costing
b. Process costing
c. A and B
d. None of the above
3.
Activity based costing systems separate overhead into which of the following categories?
a. Batch-related and product-related
b. Product and company-wide
c. Batch and company-wide
d. Batch, product, and company-wide
e. None of the above
41
Chapter 13
1.
Payroll service bureaus are attractive to small and midsize businesses for which of the following reasons?
a. Wider range of benefits
b. Frees up computer resources
c. Reduced costs
d. None of the above
e. A, B, and C
2.
Which control procedure would be effective in verifying the accuracy of payroll disbursements?
a. Zero-balance check
b. Field check
c. Limit check
d. Validity check
3.
Which of the following kinds of decisions can be made from HR information collected by payroll systems?
a. Future staffing needs
b. Employee promotions
c. Addition of fringe benefits
d. All of the above
Chapter 14
1.
____________ represent entries made at the end of the accounting period to reflect events that have occurred but for
which cash has not been received
a. Deferrals
b. Accruals
c. Estimates
d. Corrections
2.
__________ ensure that general ledger accounts exist for each account number referenced in a journal entry.
a. Field checks
b. Validity checks
c. Zero balance checks
d. Completeness checks
3.
An audit trail depicts which of the following tasks?
a. Tracing any transaction from its original source document to the general ledger and to any report or other
document using that data.
b. Tracing any item appearing in a report back to the general ledger to its original source document.
c. Tracing all changes in general ledger accounts from their beginning to ending balances.
d. All of the above
e. A and B
f. None of the above
John Lutz
Ch. 10
1. The __________ is a recurring set of business activities and related information processing operations
associated with providing goods and services to customers and collecting cash in payment for those sales.
a. Revenue cycle
b. Expenditure cycle
c. Payroll cycle
d. Production cycle
Answer: A
42
2.
Which edit check must be performed to ensure accuracy of customer orders?
a. Validity check
b. Completeness test
c. Reasonableness test
d. All of the above
D
3.
If there is not sufficient inventory on hand to fill an order, a _______ for those items is created.
a. Credit
b. Back order
c. Picking ticket
d. Bill of lading
B
Ch. 11
1. The __________ is a recurring set of business activities and related data processing operations associated with
the purchase of and payment for goods and services.
a. Revenue cycle
b. Expenditure cycle
c. Payroll cycle
d. Production cycle
B
2.
________ are gifts from suppliers to purchasing agents for the purpose of influencing their choice of suppliers.
a. Voucher packages
b. Debit memos
c. Kickbacks
d. EOQs
C
3.
Which of these is not one of the threats associated with ordering goods?
a. Purchasing goods at inflated prices
b. Kickbacks
c. Ordering unnecessary items
d. Misappropriating cash
D
Ch. 12
1. The ________ is a recurring set of business activities and related dada processing operations associated with the
manufacture of products.
a. Revenue cycle
b. Expenditure cycle
c. Payroll cycle
d. Production cycle
D
2.
Which of these is not of one of the four basic acitivities in the production cycle?
a. Product design
b. Planning and scheduling
c. Production operations
d. Cost accounting
e. They are all activities in production cycle
43
E
3.
A ________ authorizes the manufacture of a specified quantity of a particular product.
a. Production order
b. Materials requisition
c. Move ticket
d. Master production schedule
A
Ch. 13
1. The _________ is a recurring set of business activities and related data processing operations associated with
effectively managing the employee workforce.
a. Revenue cycle
b. Expenditure cycle
c. Payroll cycle
d. Production cycle
C
2.
The ________ is used by companies to record the employee's arrival and departure times for each work shift.
a. Payroll register
b. Time card
c. Earnings statement
d. Payroll clearing account
B
3.
The _________ is a report that lists each employee's gross pay, payroll deductions, and net pay.
a. Payroll register
b. Time card
c. Earnings statement
d. Payroll clearing account
A
Ch 14
1.
Which of these is specifically designed for use in communicating the contest of financial data?
a. ASCII
b. HTML
c. XML
d. XBRL
D
2.
The _________ shows the details of each entry posted to the general ledger.
a. Journal voucher
b. Audit trail
c. General journal listing
d. Balanced scorecard
C
3.
Which of the following is not a threat to general ledger and reporting systems?
a. Errors in updating the general ledger and generating reports
b. Loss or unauthorized disclosure of alteration of financial data
c. Poor performance
d. All of these are threats
e. None of these are threats
44
D
Jill Mayor
Test #3
Chapter 10
1) Which of the following is not a sales order entry threat?
a) Legitimacy of orders
b) Credit sales to customers with poor credit
c) Failure to bill customers
d) Stockouts, carrying costs, and markdowns
Answer: C
2) When receiving a sales order entry, what checks should be done?
a) limit check
b) validity check
c) reasonableness check
d) A, B, & C
e) B & C
Answer: E
3) The invoice the customer returns along with payment is called the:
a) Remittance advice
b) Bill of lading
c) Packing slip
d) Credit memo
Answer: A
Chapter 11
1) What inventory control method attempts to minimize or eliminate inventories?
a) Economic Order Quantity
b) Just-in-Time Inventory System
c) Materials Requirements Planning
d) Blanket Purchasing Inventory System
Answer: B
2) A purchase order is a:
a) contract
b) promise to pay
c) formal request to sell and deliver specific goods
d) all of the above
Answer: D
3) The commitment to purchase specified items at designated prices from a particular supplier for a set period of time is
called a(n):
a) Imprest order
b) Disbursement order
c) Blanket purchase order
d) Economic quantity order
Answer: C
Chapter 12
1) Which is not one of the four basic activities in the production cycle?
a) Cost accounting
b) Planning and scheduling
c) Product design
45
d) production orders
Answer: D
2) What specifies the labor and machine requirements needed to manufacture a product?
a) Bill of materials
b) Operations list
c) Master production schedule
d) Materials requisition
Answer: B
3) Which is a treat during the planning and scheduling step in the production cycle?
a) Over or underproduction
b) Inaccurate cost data
c) Poor product design
d) Disruption of operations
Answer: A
Chapter 13
1) On average, costs associated with replacing an employee are estimated to be _______ times that of an employee’s
annual salary.
a) .5
b) 1.5
c) 2.5
d) 4.0
Answer: B
2) In the payroll cycle, what step needs to be taken before the payroll is prepared?
a) Calculate Employer-Paid Benefits & Taxes
b) Update Payroll Master File
c) Nothing, preparing the payroll is the first step in the cycle
d) Update general ledger
Answer: B
3) To reduce unintentional inaccuracies in time data, a company should
a) Automate by using badge readers or bar code scanners
b) Properly segregate duties
c) Crossfoot the payroll register
d) Use a payroll clearing account
Answer: A
Chapter 14
1) _____________ are entries that reflect a portion of expenses that occur over a number of accounting periods.
a) Accruals
b) Deferrals
c) Revaluations
d) Estimates
Answer: D
2) This creates tags for each data item that looks much like the tags used by HTML.
a) NAARS
b) EDGAR
c) XBRL
d) BRX
Answer: C
3) Using the data in a data warehouse to strategically make decisions is called:
a) Warehousing
46
b) Business intelligence
c) Artificial intelligence
d) Data Mining
Answer: B
Chapter 10
1. The ________ cycle is a recurring set of business activities and related information processing operations associated
with providing goods and services to customers and collecting cash in payment for those sales.
A. Cash
B. Revenue
C. Expenditure
D. Purchasing
Answer: B
2. The _________ contains information about item numbers, quantities, prices and other terms of the sale.
A. sales order
B. purchase order
C. billing statement
D. packing slip
Answer: A
3. The bill of lading is a legal contract that defines responsibility for __________.
A. goods in transit
B. packing
C. billing
D. accounts receivable
Answer: A
Chapter 11
1. The _______ cycle is a recurring set of business activities and related data processing operations associated with the
purchase of and payment for goods and services.
A. expenditure
B. revenue
C. purchasing
D. billing
Answer: A
2. The reorder point specifies ________ to order.
A. how
B. when
C. where
D. why
Answer: B
3. The “invoiceless” approach is called:
A. computer
B. evaluated receipt settlement
C. invoice voucher
D. evaluated invoice
47
Answer: B
Chapter 12
1. Which of these is not a threat of the production cycle?
A. over/under production
B. disruption of operations
C. poor performance
D. dissatisfied employees
Answer: D
2. Which of these is not an example of batch related overhead?
A. set up costs
B. inspections
C. materials handling
D. research and development
Answer: D
3. Which of these is not an example of product related overheard?
A. research and development
B. set up costs
C. expediting
D environmental regulations
Answer: B
Chapter 13
1. The ______ is a report that lists each employees gross pay, payroll deductions and net pay.
A. payroll register
B. deduction register
C. earnings statement
D. pay check
Answer: A
2. PEO stands for:
A. personal employee organization
B. professional employer organization
C. payroll extension organization
D. positive employee organization
Answer: B
3. Which is not a task of Human Resources?
A. recruiting
B. training
C. compensation
D. create reports
Answer: D
Chapter 14
48
1. Responsibility accounting is reporting financial results on the basis of ____ responsibilities within an organization.
A. managerial
B. employee
C. employer
D. CEO
Answer: A
2. A balanced scorecard is a report that provides a multidimensional perspective of _____ performance.
A. organizational
B. compensation
C. collective
D. management
Answer: A
3. Which of these is not a category of adjusting entries?
A. accruals
B. revaluations
C. corrections
D. closing
Answer: D
Keith Morgan
Acct 322
November 2, 2006
Test #3 Questions
Chapter 10
1.
The _______ cycle is a recurring set of business activities and related information processing operations
associated with providing goods and services to customers and collecting their cash payments.
A.
B.
C.
D.
production cycle
expenditure cycle
revenue cycle
payroll cycle
Answer: C
2.
The sales order entry process entails which of the following steps
A.
B.
C.
D.
Taking the customers order.
Checking and approving customer credit.
Checking inventory availability.
All of the above
Answer: D
3.
Once inventory availability has been determined a __________ is created that lists the items and quantities of
each item that the customer ordered.
A. Picking ticket
B. Freight bill
49
C. Bill of lading
D. Packing slip
Answer: A
Chapter 11
4.
The _______ cycle is a recurring set of business activities and related data processing operations associated with
the purchase of and payment for goods and services.
A.
B.
C.
D.
production cycle
expenditure cycle
revenue cycle
payroll cycle
Answer: b
5.
This inventory approach attempts to minimize, if not totally eliminate carrying inventory by only purchasing and
producing good in response to actual, rather than forecasted, sales.
A.
B.
C.
D.
Economic order quantity
Materials requirements planning
One at a time inventory system
Just-in-time inventory system
Answer: D
6.
The _______ is a document or electronic form that formally requests a supplier to sell and deliver specified
products at designated prices. It is also a promise to pay and becomes a contract once the supplier accepts it.
A.
B.
C.
D.
Purchase requisition
Receiving report
Purchase order
Debit memo
Answer: C
Chapter 12
7.
The _______ cycle is a recurring set of business activities and related data processing operations associated with
the manufacture of products.
A.
B.
C.
D.
production cycle
expenditure cycle
revenue cycle
payroll cycle
Answer: A
8.
A _______ authorizes the removal of the necessary quantity of raw materials from the storeroom to the factory
location where they will be used.
A. Move tickets
B. Materials requisition
C. Operations list
D. None of the above
Answer: B
50
9.
Decisions made during _________ determine the majority of costs.
A.
B.
C.
D.
Cost accounting
Production operations
Production planning
Product design
Answer: D
Chapter 13
10. This document summarizes the amount to be paid to each employee and is sent to the accounts payable
department for use in preparing a disbursement voucher to authorize the transfer of funds to the payroll account.
A.
B.
C.
D.
Earnings statement
Time card
Payroll register
None of the above
Answer: C
11. Which document lists the current amount and year-to-date totals of gross pay deductions and net pay for one
employee?
A.
B.
C.
D.
Earnings statement
paycheck
time card
payroll register
Answer: A
12. The _______ cycle is a recurring set of business activities and related data processing operations associated with
effectively managing the employee workforce.
A.
B.
C.
D.
production cycle
human resource management/payroll cycle
revenue cycle
expenditure cycle
Answer: B
Chapter 14
13. _______ is the process used to discover new relationships in data.
A.
B.
C.
D.
data warehousing
querying
accrual
data mining
Answer: D
14. A _________ is an entry used to record the results of judgmental analysis.
A. revaluation
B. journal voucher
C. estimate
51
D. deferral
Answer: C
15. Which one of the following provides information concerning the source of changes to the general ledger
accounts.
A.
B.
C.
D.
Journal vouchers
Trial balances
Data warehouses
Flexible budgets
Answer: A
Marjorie Mullins
Chapter 10
1.
Which activity is part of the sales order entry process?
A. setting customer credit limits
B. preparing a bill of lading
C. Approving sales returns
D. checking customer credit
Answer: D
2. Which of the following techniques is the most efficient way to process customer payments and update accounts
receivable?
A. ACH
B. FEDI
C. VMI
D. EFT
Answer: B
3. Which report would be most useful for estimating likely bad debts?
A. profitability analysis
B. sales analysis
C. cash budget
D. accounts receivable aging schedule
Answer: D
Chapter 11
1. Which of the following inventory control methods is most likely to be used by a company that purchases inventory in
response to customer orders?
A. EOQ
B. MRP
C. JIT
D. ABC
Answer: C
2. Which document is used to establish a contract for the purchase of goods or services from a supplier?
52
A. purchase order
B. vendor invoice
C. purchase requisition
D. disbursement voucher
Answer: A
3. Which of the following expenditure cycle activities can be eliminated through the use of IT or reengineering?
A. ordering goods
B. receiving goods
C. cash disbursements
D. approving vendor invoices
Answer: D
Chapter 12
1.
Most costs are locked in at which stage in the production cycle?
A. production planning
B. product design
C. cost accounting
D. production operations
Answer: B
2.
Which document captures information about labor used in production?
A. move ticket
B. operations list
C. bill of materials
D. job-time ticket
Answer: D
3.
What is the number of good units produced in a given period of time called?
A. productive capacity
B. productive processing time
C. throughput
D. yield
Answer: C
Chapter 13
1.
Traditionally, accountants have been most involved with which portion of the HRM/payroll cycle?
A. payroll
B. hiring
C. training
D. performance evaluation
Answer: A
2.
Which document lists the current amount and year-to-date totals of gross pay deductions and net pay for one
employee?
A. paycheck
B. earnings statement
C. payroll register
53
D. time card
Answer: B
3.
Where should unclaimed paychecks be returned?
A. absent employee’s supervisor
B. payroll department
C. HRM department
D. cashier
Answer: D
Chapter 14
1.
From where do adjusting entries usually come?
a. controller
b. treasurer
c. various accounting cycle subsystems, such as sales order entry
d. unit managers
Answer: A
2.
Measures of cycle time would most likely appear in which part of the balanced scorecard?
a. innovation and learning
b. customer
c. financial
d. internal operations
Answer: D
3.
Which of the following is an important part of the audit trail?
a. journal vouchers
b. trial balance
c. flexible budgets
d. data warehouse
Answer: A
Chapter 10
1. The four basic business activities performed in the revenue cycle are all of the following
except__________________.
a. Sales order entry
b. Shipping
c. Receiving
d. Billing
Answer: C
2. _________________________ can be used to link a company directly with its customer to receive orders or
even manage their customers inventory.
a. Electronic data interchange
b. Customer relationship management
c. Intranets
d. Extranets
Answer: A
3. The shipping process contains ______ steps.
a. 2
54
b.
c.
d.
3
4
5
Answer: A
Chapter 11
1. __________________ seeks to reduce inventory levels by improving the accuracy of forecasting techniques and
carefully scheduling production and purchasing around that forecast
a. economic order quality
b. just in time
c. materials requirements planning
d. none of the above
Answer: C
2. A __________________ order is a commitment to buy specified items at specified prices from a particular
supplier for a set time period.
a. Purchase
b. Blanket
c. Remittance
d. Time specific
Answer: B
3. What does not improve efficiency and effectiveness of the receiving activities?
a. Approval of vendor invoices
b. Audits
c. Bar coding
d. RFID
Answer: A
Chapter 12
1. The _________________ cycle is a recurring set of business activities and related data processing operations
associated with the manufacture of products.
a. Production
b. Expenditure
c. Revenue
d. None of these
Answer: A
2. All of the following are key documents except:
a. Master production skill
b. Materials requisition
c. Move ticket
d. Product design
Answer: D
3. _______________________ assigns costs to a specific production batch or job.
a. Cost accounting
b. Process accounting
c. Job-order costing
d. Production accounting
Answer: C
Chapter 13
1. What does Human resources management handle?
a. Recruiting
b. Training
c. Job assignment
d. All of the above
Answer: D
2. the data entry program does all of the following except:
55
a.
b.
c.
d.
3.
field checks
range checks
limit checks
validity checks
Answer: B
___________________ statement lists the amount of gross pay, deductions, and net pay fro the current period
of they year-to-date totals for each category
a. general journal
b. deductions
c. payroll
d. earnings
Answer: D
Chapter 14
1. The _______________________ is a report that lists the balances for all general ledger accounts.
a. General journal
b. Trial balance
c. Balance sheet
d. Income statement
Answer: B
2. ___________________________ accounting is reporting financial results on the basis of managerial
responsibilities within an organization
a. managerial
b. responsibility
c. financial
d. cost
Answer: B
3. A _______________________ contains both detailed and summarized data for a number of years and is used
for analysis rather than transaction processing
a. Data warehouse
b. Data mart
c. Data dictionary
d. Data processing
Answer: A
Ryan Owens
Chapter 10
1. Which of the following is not a step in the Sales Order Entry.
a) Taking the customers order
b) Checking the customers credit
c) Checking available inventory
d) Recording wages payable to salesmen
Answer d
2. The sales order indicates all of the following except.
a) Item numbers ordered
b) Quantities
c) Prices
d) Reason for cancellation of order
Answer d
3. IT can improve the Sales Order Entry Process by
a) Automatically checking credit limits and balances
b) Emailing the credit manager for accounts needing specific authorization
56
c) Reducing Prices
d) A and B
Answer d
Chapter 11
1. Which is not one of the three basic activities performed in the expenditure cycle are
a) Ordering goods, supplies, and services
b) Receiving and storing these items
c) Paying for these items
d) Checking the customers credit
Answer d
2. Key consideration(s) when selecting a supplier is (are).
a) Price
b) Quality
c) Dependability
d) all of the above
Answer d
3. A _________ is a document or electronic form that formally requests a supplier to sell and deliver specified products
at specified prices.
a) Packing Slip
b) Invoice
c) Purchase Order
d) Customer Receipt
Answer c
Chapter 12
1. A decision that does not need to be made in the production cycle is
a) When should the customer receive the product?
b) How should products be priced?
c) How should resources be allocated?
d) What mix of products should be produced?
Answer a
2. Which is not one of the four basic activities in the production cycle
a) Product design
b) Customer Billing
c) Planning and scheduling
d) Production operations
Answer b
3. Threats in product design include
a) Poor product design
b) Over production
c) Poor investments in fixed assets
d) all of the above
57
Answer d
Chapter 13
1. Tasks preformed in the HRM/payroll cycle include
a) Hiring new employees
b) Training
c) Job assignment
d) All of the above
Answer d
2. The average cost of replacing an employee is
a) Negligible
b) 1.5 times their annual salary
c) $10,000
d) Not a consideration of HRM
Answer b
3. Threats in payroll processing include
a) Unauthorized changes to the master file
b) Inaccurate time data
c) Theft of paychecks
d) All of the above
Answer d
Chapter 14
1. Which of the following is not a basic activity in the GLARS.
a) Updating the General Ledger
b) Posting adjusting entries
c) Preparing financial statements
d) Product design
Answer d
2. Journal Entries are often documented on a form called a __________
a) Memo
b) Journal Voucher
c) General Journal Receipt
d) Journal Application
Answer b
3. Which of the following is a type of adjusting entry
a) Accruals
b) Deferrals
c) Estimates
d) All of the above
Answer d
Test 3 Questions
58
CH. 10
1. Which report would be most useful for estimating likely bad debts?
A. Accounts receivable aging schedule
B. Profitability analysis
C. Sales analysis
D. Cash budget
Answer: a
2. ____ is a legal contract that defines responsibility for the goods in transit.
A. Bill of lading
B. Packing slip
C. Invoice
D. Credit Memo
Answer: a
3. Which of the following are control issues related to sales order entry?
A. Incomplete or inaccurate customer orders
B. Credit sales to customers with poor credit
C. Legitimacy of orders
D. All of the above
Answer: D
CH. 11
1. Which document is used to establish a contract for the purchase of goods or services from a supplier?
A. Vendor invoice
B. Purchase requisition
C. Purchase order
D. Disbursement voucher
Answer: C
2. What are the basic business activities in the expenditure cycle?
A. Ordering goods, supplies, and services
B. Receiving and storing goods, supplies, and services
C. Paying for goods, supplies, and services
D. All of the above
Answer: D
3. For good internal controls, who should sign checks?
A. Cashier
B. Accounts payable
C. Purchasing agent
D. Controller
Answer: A
CH. 12
1.______ assigns costs to each process, in the production cycle, then calculates the average cost for all units produced
A. Job-order costing
B. Process costing
C. Weighted Average costing
D. None of the Above
Answer: B
2. _____ is anything that has a cause and effect relationship on costs.
A. Activity Based Costing
B. Overhead
C. Cost Driver
Answer: C
3. Most costs are locked in at which stage in the production cycle?
A. Cost Accounting
B. Production operations
C. Production planning
D. Product design
Answer: D
59
CH 13
1. Which of the following is not associated with the HRM/ Payroll cycle
A. Recruiting new employees
B. Job Assignment
C. Training
D. All are part of the payroll cycle
Answer: D
2. _____ is a report that lists each employees gross pay, payroll deductions, and net pay in a multicolumn format
A. Deduction register
B. Payroll register
C. Bill of lading
D. Earning Statement
Answer: B
3. Which department should have responsibility for authorizing pay-rate changes?
A. Timekeeping
B. Payroll
C. HRM
D. Accounting
Answer: C
CH. 14
1. _______ contains both detailed and summarized data for a number of years
A. Data warehouse
B. Data marts
C. Audit Trail
D. None of the above
Answer: A
2. From where do adjusting entries usually come?
A. Treasurer
B. Controller
C. Unit Mangers
Answer: B
3. Which of the following is an important part of the audit trail?
A. Journal vouchers
B. Flexible budgets
C. Trial balances
D. Data warehouses
Answer: A
Chapter 10
1. The ---------- revenue cycle is a recurring set of business activities and related information processing operations with
providing goods and services to customers and collecting cash in payment for those sales.
a. expenditure
b. production
c. revenue
d. payroll
answer: c
2 Which activity is not four basic activities in the revenue cycle?
a. Sales order entry
b. shipping
c. Billing
d. purchasing
answer: d
2.
a.
b.
Which document often accompanies merchandise shipped to a customer?
packing slip
packing list
60
c. sales order
d. bill of landing
answer: b
Chapter 11
1. The traditional approach that managing inventory is to maintain sufficient stock called
a. Purchase requisition
b. just in time inventory system
c. economic order quantity
d. MRP
Answer: c
2 The -------- memo records the adjustment being requested.
a. credit
b. debit
c. revenue
d. none of the above
answer: b
3. For good internal control, who should sign checks?
a. controller
b. cashier
c. accounts payable
d. purchasing agent
answer: b
Chapter 12
1. ----------- is an extension of material resource planning that seeks to balance existing production capacity and raw
materials needs to meet forecasted sales demands.
a. lean manufacturing
b. Manufacturing resource planning
c. Operation planning
d. None of the above
Answer: b
2. Which document captures information about labor used in production?
a. operation ticket
b. move ticket
c. job time ticket
d. production order
Answer: c
3.
---------- costing assigns costs to specific production batches, jobs and is used when the product or service being sold
consists of discretely identifiable items.
a. Process costing
b. Job order costing
c. Move order costing
d. Production costing
Answer: b
Chapter 13
1. A repot that lists each employee’s gross pay, payroll deductions and net pay in a multicolumn format.
a. Payroll register
b. Deduction register
c. Earning statement
d. None of the above
Answer: a
61
2. Which department has responsibility for authorizing pay-rate changes?
a. Accounting
b. Timekeeping
c. Payroll
d. HRM
Answer: d
3. Where unclaimed paycheck should be returned?
a. HRM
b. Payroll
c. Cashier
d. None of the above
Answer: c
Chapter 14
1. Reporting financial results on the basis of managerial responsibilities within an organization called
a. Duty accounting
b. Responsibility accounting
c. Liability accounting
d. Office accounting
Answer: b
2.
---------- is the new common business reporting computer language designed for use in communicating the content of
financial data.
a. XML
b. NML
c. XBRL
d. SQL
Answer: c
3. Which of the following is to update the general ledger may be documented on a form?
a. Trial Balance
b. General vouchers
c. Data warehouse
d. Flexible budgets
Answer: b
Scott Reider
Test 3
Chapter 10
1. What is a recurring set of business activities and related information processing operations associated with providing
goods and services to customers and collecting cash in payment for those sales?
a. Accounting Cycle
b. Expense Cycle
c. Billing Cycle
d. Revenue Cycle
Answer: d. revenue cycle
2. What is created if there is not sufficient inventory on had to fill the order?
62
a. front order
b. layaway
c. back order
d. picking ticket
Answer: c. back order
3. The ___________ is a legal a contract that defines responsibility for the goods in transit.
a. packing slip
b. bill of lading
c. picking ticket
d. receiving report
Answer: b. bill of lading
Chapter 11
1. A ___________ system attempts to minimize, if not totally eliminate, carrying inventory by only purchasing and
producing goods in response to actual, rather than forecasted sales.
a. economic order
b. just-in-time inventory
c. materials requirements planning
d. reorder point
Answer: b. just-in-time inventory
2. The ________ specifies when to order.
a. purchase requisition
b. reorder point
c. purchase order
d. blanket purchase
Answer: b. reorder point
3. What formula is used to calculate how much to order?
a. just-in-time
b. inventory
c. materials requirements planning
d. economic order quantity
Answer: d. economic order quantity
Chapter 12
1. What specifies the part number, description, and quantity of each component used in a finished product?
a. operations list
63
b. invoice
c. bill of materials
d. bill of lading
Answer: c
2. What extends the principles of the just-in-time inventory system?
a. lean manufacturing
b. mass manufacturing
c. manufacturing resource planning
d. manufacturing inventory planning
Answer: a. lean manufacturing
3. _____________ can refine and improve cost allocations under both job-order and process cost systems.
a. cost driver
b. activity-based costing
c. computer-integrated manufacturing
d. master production schedule
Answer: b activity-based costing
Chapter 13
1. What lists the amount of gross pay, deductions, and net pay for the current period and year-to-date totals for each
category?
a. payroll register
b. earnings statement
c. deduction register
d. flexible statement
Answer: c. deduction register
2. A ____________ not only processes payroll but also provides HRM services such as employee benefit design and
administration.
a. payroll service bureau
b. human resources management
c. professional employer organization
d. payroll register
Answer: c. professional employer organization
3. What general ledger account is used in a two-step process to check the accuracy and completeness of recording
payroll costs and their subsequent allocation to appropriate cost centers?
64
a. payroll register account
b. deduction register account
c. time card account
d. payroll clearing account
Answer: d. payroll clearing account
Chapter 14
1. Journal entries to update the general ledger may be documented on a form called a _______.
a. journal voucher
b. journal ledger
c. data marts
d. data voucher
Answer: a. journal voucher
2. What is a report that lists the balances for all general ledger accounts?
a. trial report
b. ledger report
c. trial balance
d. general ledger balance
Answer: c. trial balance
3. What shows the details of each entry posted to the general ledger?
a. general ledger listing
b. general journal account
c. balanced scorecard
d. general journal listing
Answer: d. general journal listing
Ch.10
1.
a.
b.
c.
d.
Which of the following is NOT one of the four basic business activities performed in the revenue cycle?
Sales Order Entry
Shipping
Management
Billing
answer: c
2. What is the term used to describe the maximum allowable account balance for each customer, based on past credit
history and ability to pay?
a. back order
b. credit limit
c. validity checks
d. limit check
answer: b
3. What is the legal contract that defines responsibility for the goods in transit?
a. bill of lading
65
b. packing slip
c. picking ticket
d. sales invoice
answer: a
Ch.11
1.
a.
b.
c.
d.
Which of the following is NOT one of the three basic business activities in the expenditure cycle?
ordering goods, supplies, and services
shipping goods and supplies
receiving and storing goods, supplies, and services
paying for goods, supplies, and services
answer: b
2. What is the document or electronic form that formally requests a supplier to sell and deliver specified products at
designated prices?
a. receiving report
b. debit memo
c. purchase order
d. purchase requisition
answer: c
3.
a.
b.
c.
d.
______________ are gifts from suppliers to purchasing agents for the purpose of influencing their choice of suppliers.
imprest funds
evaluated receipts settlements
disbursement vouchers
kickbacks
answer: d
Ch.12
1. The ______________________ is a recurring set of business activities and related data processing operations
associated with the manufacture of products.
a. revenue cycle
b. expenditure cycle
c. production cycle
d. payroll cycle
answer: c
2.
a.
b.
c.
d.
What is anything that has a cause-and-effect relationship on costs?
activity-based costing
cost management
product-related overhead
cost driver
answer: d
3. A __________________ authorizes the removal of the necessary quantity of raw materials from the storeroom to the
factory location where they will be used.
a. materials requisition
b. production order
c. master production schedule
66
d. operations list
answer: a
Ch. 13
1.
a.
b.
c.
d.
Which of the following is NOT an important task in the Human Resources Management (HRM)/payroll cycle?
recruiting and hiring new employees
compensation (payroll)
producing goods or services
training
answer: c
2. What item lists the amount of gross pay, deductions, and net pay for the current period and year-to-date totals for each
category?
a. payroll register
b. deduction register
c. earnings statement
d. time card
answer: c
3.
a.
b.
c.
d.
If a paycheck is not claimed by an employee, where should the paycheck be returned?
cashier
CEO or business owner
payroll department
departmental secretary
answer: a
Ch. 14
1.
a.
b.
c.
d.
Which of the following is NOT one of the four basic activities performed by the general ledger and reporting system?
update general ledger
post adjusting entries
prepare financial statements
paying for materials
answer: d
2. A _________________ ensures that general ledger accounts exist for each account number referenced in a journal
entry.
a. zero-balance check
b. sign check
c. field check
d. validity check
answer: d
3. What are the databases that contain both detailed and summarized data for a number of years and are used for analysis
rather than transaction processing?
a. data warehouses
b. data marts
c. business intelligence
d. online analytical processes
67
answer: a
Ryan McCauley
Craig Schiffbauer
Ch 10
1. The document that shows what products and quantities a customer has ordered for the purpose of releasing the
inventory is called a:
a. invoice
b. packing slip
c. picking ticket
d. credit memo
2. A legal contract that defines responsibility for goods in transit is a(n):
a. picking ticket
b. packing list
c. invoice
d. bill of lading
3. What accounts receivable method allows customers to pay according to each invoice?
a. open-invoce
b. remittance advice
c. balance-forward
d. monthly statement
Ch 11
1. What inventory system tries to minimize or eliminate carrying inventory?
a. JIT
b. EOQ
c. MRP
d. EPP
2. What document or electronic form formally requests a supplier to sell and deliver specified products at
designated prices?
a. receiving report
b. inventory report
c. purchase order
d. contact memo
3. From a control standpoint, who is best suited to signing checks?
a. accounts payable
b. controller
c. CEO
d. cashier
Ch 12
1. Which planning method extends just-in-time inventory principals to the entire production process?
a. MRP-II
b. lean manufacturing
c. MPS
d. focus planning
2. What document specifies part numbers, description, and quantity of each component used in a finished product?
a. bill of materials
b. operations list
c. source document
d. picking slip
3. Production labor information would be found on a:
a. movie ticket
b. move ticket
c. job-time ticket
d. operations list
Ch 13
1. Which report lists each employee's gross pay, payroll deductions, and net pay in a multi-column format?
a. payroll register
b. deductions register
68
2.
3.
Ch 14
1.
2.
3.
c. earnings statement
d. IRS1066
Which report lists the current amount and year-to-date totals of gross pay, deductions, and net pay?
a. payroll register
b. deductions register
c. earnings statement
d. IRS1066
Pay-rate changes should be authorized by:
a. accounting
b. payroll
c. HRM
d. N/A – industry standards should be used
Journal entries may be documented on a:
a. journal voucher
b. journal memo
c. ledger update request
d. balance change form
Detailed and summarized date used for analysis (not transaction processing) would be found in a:
a. date mine
b. date warehouse
c. data stores
d. data dump
Which of the following is NOT an important part of the audit trail?
a. journal voucher
b. picking slip
c. packing list
d. data warehouse
Scott Campbell
Chapter 10
1) Which of the following is not a threat to billing and accounts receivable?
a) failure to bill customers
b) billing errors
c) theft of inventory
d) posting errors in updating accounts receivable
2) Which of the following is a threat to cash collections?
a) theft of cash
b) poor performance
c) billing errors
d) legitimacy of orders
3) Monthly statements being prepared for subsets of customers at different times is?
a) normal billing
b) cycle billing
c) remittance billing
d) packing billing
Chapter 11
1) Which of the following is not a threat to receiving and storing goods?
a) receiving unordered goods
b) stealing inventory
c) kickbacks
d) making errors in counting goods received
69
2) Which of the following is not a threat to ordering goods?
a) kickbacks
b) purchasing goods at inflated prices
c) ordering unnecessary items
d) stealing inventory
3) Which of the following is a general control issue?
a) loss, alteration, or unauthorized disclosure of data
b) performing poorly
c) both a and b
d) neither a or b
Chapter 12
1) Which of the following is a threat to cost accounting?
a) poor product design
b) over or under production
c) inaccurate cost data
d) disruption of operations
2) Which of the following is a threat to product design?
a) poor product design
b) suboptimal investment in fixed assets
c) inaccurate cost data
d) disruption of operations
3) In which stage of the production cycle are most costs locked in?
a) production planning
b) product design
c) production operations
d) cost accounting
Chapter 13
1) Which of the following is not an edit check necessary in a data entry program?
a) field check
b) automation check
c) limit check
d) validity check
2) The current amount and year-to-date gross pay are listed on which document?
a) earnings statement
b) paycheck
c) payroll register
d) time card
3) Which department should have the authority on pay rate changes?
a) payroll
b) HRM
c) accounting
d) timekeeping
Chapter 14
1) Who usually does adjusting entries?
a) treasurer
70
b) CEO
c) controller
d) unit manager
2) The audit trail includes which of the following?
a) journal vouchers
b) trial balance
c) flexible budgets
d) data warehouse
3) The extensible business reporting language is also known as
a) EBRL
b) EBSRL
c) XBL
d) XBRL
Chapter 10
1.
__________- contains information about item numbers, quantities, prices and other terms of the sale.
A. Packing slip
B. Sales order
C. Sales voucher
D. Invoice
2. __________- is the maximum allowable account balance.
A. Credit terms
B. Bill of lading
C. Credit limit
D. Extended Credit
3._________- this invoice method has customers pay according to a monthly balance while ________ has customers
pays according to each invoice.
A. Monthly statement, open invoice`
B. Balance forward, remittance invoice
C. monthly statement, remittance invoice
D. Balance forward, open invoice
Chapter 11
1.
2.
3.
Which is not part of the expenditure cycle?
A. paying
B. receiving
C. selling
D. ordering
_________-is a document or electronic form that identifies the requisitioner, specifies delivery location, item
numbers, quantity and price.
A. Purchase requisition
B. Purchase list
C. Just in time order
D. Requisition slip
_______- are gifts from suppliers to purchasing agents for the purpose of influencing their choice of suppliers.
A. Donations
B. Kickbacks
C. Hand outs
Chapter 12
1.
_________- is a recurring set of business activities and related data processing operations associated with
the manufacture of products
A. Spending cycle
71
2.
3.
B. Production Cycle
C. Revenue Cycle
D. Shipping cycle
________-assigns costs to specific production batches, or jobs and is used when the product or service
being sold consists of discreetly identifiable items.
A. process costing
B. item costing
C. job order costing
D. line costs
_________-manufacturing costs that are not economically feasible to trace directly to specific jobs or
process.
A. Manufacturing overhead
B. Added costs
C. Built in costs
D. Excess costs
Chapter 13
1.
2.
3.
_________- is a report that lists each employees gross pay, payroll deductions, in net pay in a multicolumn
format.
a. Deduction register
b. Earnings statement
c. Payroll register
d. Pay stub
Professional employer organizations are attractive to small businesses for all the reasons except.
a. Reduced costs
b. Wider range if benefits
c. Freeing up computer resources
d. All are attractive to business
___________- is a general ledger account that is used in a 2 step process to check accuracy and
completeness of recording payroll costs.
A. Payroll clearing account
B. Double check account
C. Payroll dual account
D. Payroll checking account
Chapter 14
1. ______- depicts the path of a transaction through the accounting system.
A. Transaction path
B. Audit trail
C. Transaction detail
D. Audit path
2. ______- is reporting financial results on the basis of managerial responsibilities in an organization.
A. Accountability reporting
B. Managerial responsibility
C. Responsibility accounting
D. Management accounting
3. ______- this provides a multidimensional perspective of organizational performance.
A. Balanced scorecard
B. Organizational Scorecard
C. Financial Reports
D. Performance grades.
Test 3 Questions
Chapter 10
1) The _______ is a recurring set of business activities and related information processing operations associated with
providing goods and services to customers and collecting cash in payment for those sales.
A) Revenue cycle
72
B) Expenditure cycle
C) Payroll cycle
D) Production cycle
2) Which of the following is one of the four basic business activities performed in the revenue cycle?
A) Sales order entry
B) Billing
C) Shipping
D) Cash Collections
E) All the above
3) ______ is the maximum allowable account balance for each customer based on the customer’s past credit history and
ability to pay.
A) Credit limit
B) Back order
C) Limit check
D) Validity check
Chapter 11
1) The _________ is a recurring set of business activities and related data processing operations associated with the
purchase of and payment for goods and services.
A) Revenue cycle
B) Expenditure cycle
C) Payroll cycle
D) Production cycle
2) Which of the following is one of the three basic business activities performed in the expenditure cycle?
A) Ordering goods, supplies, and services.
B) Receiving and storing goods, supplies and services
C) Paying for goods, supplies and services
D) All the above
3) ________ seeks to reduce inventory levels by improving the accuracy of forecasting techniques to better schedule
purchases to satisfy production needs.
A) Economic order quantity
B) Materials requirements planning
C) Just-in-time inventory
D) Vendor managed inventory
Chapter 12
1) The _______ is a recurring set of business activities and related data processing operations associated with the
manufacture of products.
A) Revenue cycle
B) Expenditure cycle
C) Payroll cycle
D) Production cycle
2) The product design creates two main documents. Which of the following is one of these?
A) Bill of materials
B) Operations list
C) Picking slip
D) Both A and B
3) The ________ specifies how much of each product is to be produced during the planning period and when that
production should occur.
A) Master production schedule
B) Manufacturing resource planning
C) Materials requisition
D) Production order
Chapter 13
1) The ________ is a recurring set of business activities and related data processing operations associated with
effectively managing employee workforce.
A) Revenue cycle
B) Expenditure cycle
C) HRM/ Payroll cycle
73
D) Production cycle
2) Which of the following is one of the more important tasks of the HRM/ Payroll cycle
A) Training
B) Job assignment
C) Compensation
D) All the Above
3) The ________ is a report that lists each employee’s gross pay, payroll deductions, and net pay in multicolumn format.
A) Payroll register
B) Deduction register
C) Earnings statement
D) Payroll clearing account
Chapter 14
1) Journal entries to update the general ledger may be documented on a form called a ________.
A) Journal voucher
B) Trial balance
C) Financial statement
D) Managerial report
2) Which of the following are control objectives to the general ledger and reporting system?
A) All updates to the general ledger are properly authorized
B) All recorded general ledger transactions are valid
C) All general ledger transactions are accurately recorded.
D) All the above
3) From where do adjusting entries usually come?
A) Treasurer
B) Controller
C) Customer
D) Manager
Jessica Simpson
Exam 3 Questions
Chapter 10
1. For good internal control over customer remittances, the mailroom clerk should separate the checks from the
remittance advices and sent the customer payments to which department?
a.
b.
c.
d.
billing
accounts receivable
cashier
sales
Answer: c
2. Which report would be most useful for estimating likely bad debts?
a.
b.
c.
d.
accounts receivable aging schedule
shipping
billing
cash collections
Answer: a
3. Which of the following revenue cycle activities can potentially be eliminated by technology?
a.
b.
c.
d.
sales order entry
shipping
billing
cash collections
74
Answer: c
Chapter 11
1. Which document is used to establish a contract for the purchase of goods or services from a supplier?
a.
b.
c.
d.
vendor invoice
purchase requisition
purchase order
disbursement voucher
Answer: c
2. Which method would provide the greatest efficiency improvements for the purchase of noninventory items such as
miscellaneous office supplies?
a.
b.
c.
d.
bar-coding
EDI
procurement cards
EFT
Answer: c
3. Which of the following expenditure cycle activities can be eliminated through the use of IT or reengineering?
a.
b.
c.
d.
ordering goods
approving vendor invoices
receiving goods
cash disbursements
Answer: b
Chapter 12
1. What is the number of good units produced in a given period of time called?
a.
b.
c.
d.
productive capacity
productive processing time
yield
throughput
Answer: d
2. The development of an MPS would be most effective in preventing which of the following threats?
a.
b.
c.
d.
recording and posting errors
loss of inventory
production of poor-quality goods
excess production
Answer: d
3. Most costs are locked in at which stage in the production cycle?
a.
product design
75
b.
c.
d.
production planning
production operations
cost accounting
Answer: a
Chapter 13
1. Which of the following is important supporting documentation to authorize the transfer of funds to the payroll bank
account?
a.
b.
c.
d.
earnings statement
time card
payroll register
W-2 form
Answer: c
2. Which department should have responsibility for authorizing pay-rate changes?
a.
b.
c.
d.
timekeeping
payroll
HRM
Accounting
Answer: c
3. Where should unclaimed paychecks be returned?
a.
b.
c.
d.
HRM department
cashier
payroll department
absent employee’s supervisor
Answer: b
Chapter 14
1. Which of the following is an important part of the audit trail?
a.
b.
c.
d.
journal vouchers
flexible budgets
trial balance
data warehouse
Answer: a
2. From where do adjusting entries usually come?
a.
b.
c.
d.
treasurer
controller
various accounting cycle subsystems, such as sales order entry
unit managers
Answer: b
76
3. Measures of cycle time would most likely appear in which part of the balances scorecard?
a.
b.
c.
d.
innovation and learning
customer
internal operations
financial
Answer: c
George Sperdute
Chapter 10
1. ________ contains information about items numbers, quantities, prices, and other terms of the sale.
a. sales order
b. vendor managed inventory
c. back order
d. credit limit
2.
The ________ lists the quantity and each item included in the shipment.
a. bill of lading
b. packing slip
c. open-invoice method
d. monthly statement
3.
Under the ________ customers typically pay according to each invoice.
a. balance-forward method
b. open-invoice method
c. FEDI
d. EFT
Chapter 11
1. The ___________ is a document, or electronic form, that identifies the requisitioner, and specifies the delivery
location and date needed.
a. purchase order
b. purchase requisition
c. debit memo
d. voucher package
2.
The “invoiceless” approach is called _____________.
a. Evaluated Receipt Settlement
b. Non-Voucher System
c. Voucher System
d. Disbursement System
3.
__________ are gifts from suppliers to purchasing agents for the purpose of influencing their choice of
suppliers.
a. Returns on investment
b. EDI’s
c. Services
d. Kickbacks
Chapter 12
1. __________ extends the principles of just-in-time inventory systems to the entire production process.
a. lean manufacturing
b. MPS
c. Move Tickets
d. Production Order
77
2.
A __________ authorizes the manufacture of a specified quantity of a particular product.
a. materials requisition
b. production order
c. bill of materials
d. operations list
3.
A document called a ____________ specifies the desired properties of the asset.
a. request for proposal
b. job-time ticket
c. materials requisition
d. cost-of-quality report
Chapter 13
1. The ___________ lists the amount of gross pay, deductions, and net pay for the current period and year-to-date
totals for each category.
a. deduction register
b. payroll register
c. earnings statement
d. paycheck
2.
Which of the following is not one of the threats of the HRM/Payroll cycle?
a. Hiring unqualified of larcenous employees
b. Inaccurate Time Data
c. Accurate Records
d. Inaccurate Processing of Payroll
3.
Companies use a _________ to record the employee’s arrival and departure time for each work shift.
a. time card
b. payroll master file
c. performance evaluation
d. payroll register
Chapter 14
1. Which of the following is not one of the five categories of adjusting entries?
a. Deferrals
b. Accruals
c. Evaluations
d. Revaluations
2.
___________ is a variant of XML specifically designed for used in communicating the content of financial data.
a. XBRL
b. HTML
c. HTTP
d. AIS
3.
A ____________ is a report that provides a multidimensional perspective of organizational performance.
a. balanced scorecard
b. audit trail
c. general journal listing
d. data mart
Josh Underwood
Test 3
Chapter 10
1) The _______ cycle is a recurring set of business activities and related information processing operations associated
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with providing goods and services to customers and collecting cash in payment for those sales.
A. Revenue
B. Expenditure
C. Journal Voucher
D. Back Order
Answer: A
2) The _______ order contains information about item numbers, quantity, prices, and other terms of the sale.
A. sales
B. credit limit
C. monthly statement
D. lockbox
Answer: A
3) The __________ is a legal contract that defines responsibility for the goods in transit.
A. bill of lading
B. back order
C. electronic funs transfer
D. picking slip
Answer: A
Chapter 11
1) The _______ specifies when to order goods.
A. reorder point
B. expenditure cycle
C. kickbacks
D. disbursement voucher
Answer: A
2) A ________ is a document or electronic form that formally requests a supplier to sell and deliver specified products at
designated prices.
A. purchase order
B. receiving reports
C. debit memo
D. imprest fund
Answer: A
3) Which document is used to establish a contract for the purchase of goods or services from a supplier?
A. vendor invoice
B. purchase requisition
C. purchase order
D. disbursement voucher
Answer: C
Chapter 12
1) The ________ is a recurring set of business activities and related data processing operations associated with the
manufacture of products.
A. production cycle
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B. cost driver
C. throughput
D. yield
Answer: A
2) What is the number of good units produced in a given period of time called?
A. productive capacity
B. productive processing time
C. yield
D. throughput
Answer: D
3) An increase in which component of quality costs is most likely to result in a decrease in the other three components?
A. prevention costs
B. inspection costs
C. external failure costs
D. internal failure costs
Answer: A
Chapter 13
1) Many companies use __________ to record the employee’s arrival and departure times for each shift.
A. payroll register
B. time card
C. earnings statement
D. flexible benefit plans
Answer: B
2) Traditionally, accountants have been most involved with which portion of the HRM/payroll cycle?
A. hiring
B. payroll
C. training
D. performance evaluation
Answer: B
3) The ________ is a report that lists each employee’s gross pay, payroll deductions, and net pay in a multicolumn
format.
A. time card
B. payroll register
C. flexible benefit plan
D. training
Answer: B
Chapter 14
1) Journal entries to update the general ledger may be documented on a form called a _________.
A. journal voucher
B. data warehouse
C. data marts
D. data mining
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Answer: A
2) From where do adjusting entries usually come?
A. treasurer
B. controller
C. various accounting cycle subsystems, such as sales order entry
D. unit manager
Answer: B
3) A _____________ is a report that provides a multidimensional perspective of organizational performance.
A. balance scorecard
B. data mining
C. audit trail
D. data marts
Answer: A
Kristin Walton
Test 3 Questions
November 2, 2006
Chapter 10
1. The ___________ cycle is a recurring set of business activities and related information processing operations
associated with providing goods and services to customers and collecting cash in payment for those sales.
a)
b)
c)
d)
Revenue cycle
Expenditure cycle
Sales cycle
Statement of cash flows
Answer: A
2. VMI stands for __________.
a)
b)
c)
d)
Vendor maintained inventory
Vendor monitored inventory
Vendor managed inventory
None of the above
Answer: C
3. The final step in the revenue cycle is _________________.
a)
b)
c)
d)
Credit memo
Invoicing
Reconciling accounts receivable
Cash collections
Answer: D
Chapter 11
1. Kickbacks are ________________.
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a)
b)
c)
d)
Purchasing goods of inferior quality
Ordering unnecessary items
Gifts from suppliers to purchasing agents.
Part of information processing procedures
Answer: C
2. In a ____________, each approved invoice is posted to individual supplier records in the accounts payable file and is
then stored in an open invoice file.
a)
b)
c)
d)
Voucher system
Non-voucher system
Disbursement voucher
Evaluated receipt settlement system
Answer: B
3. The characteristics of an imprest fund include all of the following except ____________.
a)
b)
c)
d)
e)
f)
It is set at a fixed amount
It is not set at a fixed amount
It requires vouchers for every disbursement
It is when you pay the same invoice twice.
Both a and c
Both b and d
Answer: F
Chapter 12
1. _____________ identify the parts being transferred, the location to which they are transferred and the time of transfer.
a)
b)
c)
d)
Movie tickets
Materials requisitions
RFIDs
All of the above
Answer: A
2. Which one of these is a category that ABC systems distinguish as a category of overhead?
a)
b)
c)
d)
e)
f)
Batch related overhead
Product related overhead
Material related overhead
Company wide overhead
A, B and C
A, B and D
Answer: F
3. Prevention costs are associated with ____________.
a)
b)
c)
d)
Defective products being sold to customers
Testing to ensure that products meet quality standards
Information about management control
Changes to production processes designed to reduce the product defect rate.
Answer: D
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Chapter 13
1. ___________ is useful in planning future workforce needs and training programs.
a)
b)
c)
d)
Skills inventory report
Form 941
Cumulative earnings register
Position control report
Answer: A
2. A payroll service bureau _________________.
a)
b)
c)
d)
Reduces costs for the employer
Frees up computer resources for the employer
Maintains the payroll master file for each of its clients
All of the above
Answer: C
3. The fourth step in the payroll cycle is _______________.
a)
b)
c)
d)
Preparing payroll
Show the sequence of activities in processing payroll
Collecting employee time and attendance data
Updating tax rates and deductions
Answer: A
Chapter 14
1. The third activity in the general ledger and reporting system is ____________.
a)
b)
c)
d)
Preparing financial statements
Producing managerial reports
Posting adjusting entries
Estimating expenses
Answer: A
2. A ___________ contains both detailed and summarized data for a number of years and is used for analysis rather than
transacting processing.
a)
b)
c)
d)
Data warehouse
Data marts
Data installations
Data systems
Answer: A
3. _________ is using sophisticated statistical analysis, including artificial intelligence techniques such as neural
networks to discover un-hypothesized relationships in the data.
a)
b)
c)
d)
Business intelligence
Online analytical processing
Data mining
Principles of graph design
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Answer: C
Erica Wolford
Chapter 10
1. Which of the following documents does NOT accompany the shipment?
a. The packing slip
b. The credit memo
c. A copy of the bill of lading
d. The freight bill
2. Which of the following approaches to cash collection has the customer remit payments to a bank PO Box?
a. Electronic Funds Transfer
b. Electronic Bill Payments
c. Lockbox Arrangements
d. None of the above
e. All of the above
3. To maintain good internal controls who should authorize credit to customer accounts?
a. The Credit Manager
b. The Accounts Receivable Department
c. The Customer Service Department
d. The Cashier
Chapter 11
1. Which inventory control method attempts to minimize or eliminate inventory by purchasing or producing only in
response to ACTUAL sales?
a. Economic Order Quantity
b. Just in Time Inventory
c. Material Requirements Planning
d. None of the above
2. Who is responsible for the payment of invoices?
a. The cashier
b. The accounts payable department
c. The purchasing agent
d. The controller
3. Which document is used to specify which accounts to debit when paying the vendor?
a. Vendor invoice
b. Purchase requisition
c. Purchase order
d. Disbursement voucher
Chapter 12
1. Which of the following receives information from the production cycle about finished goods available for sale?
a. The payroll cycle
b. The expenditure cycle
c. The revenue cycle
d. The general ledger and reporting system
2. Which document authorizes production of a specified quantity of a product?
a. Master production schedule
b. Production order
c. Move ticket
d. Materials requisition
3. __________________ is the component of throughput that measures the proportion of good units produced per
batch.
a. Productive capacity
b. Cost driver
c. Yield
d. Productive processing time
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Chapter 13
1. Which document is a means of transferring funds?
a. Paycheck
b. Earnings statement
c. Payroll register
d. Time card
2. Which department should have responsibility for authorizing pay-rate changes?
a. Time keeping
b. HRM
c. Payroll
d. Accounting
3. Where should unclaimed paychecks be returned?
a. HRM department
b. Cashier
c. Payroll department
d. Absent employee’s supervisor
Chapter 14
1. Measures of cycle time would most likely appear in which part of the balanced scorecard?
a. Innovation and learning
b. Customer
c. Internal operations
d. Financial
2. An adjusting journal entry to record interest revenue that has been earned but not yet received is an example of
which of the following?
a. Accrual
b. Deferral
c. Estimate
d. Revaluation
3. __________________ is guided discovery of hypothesized relationships, usually by writing queries.
a. Data warehousing
b. OLAP
c. Data mining
d. Querying
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