Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

$29.99

 

Title : Accounting Information Systems

Author : George H. Bodnar – William S. Hopwood

Edition : 11th Edition

Type : TestBank

Product Description

Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

 

Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

 

sample

 

Accounting Information Systems, 11e (Bodnar/Hopwood)

Chapter 7   Electronic Data Processing Systems

 

1) A sales order is an example of a source document that may be prepared manually.

Answer:  TRUE

Diff: 1

Learning Obj.:  1

 

2) The absence of control procedures over data transmitted between user departments and the data processing department could represent a serious weakness in the system.

Answer:  TRUE

Diff: 2

Learning Obj.:  1

 

3) The use of input control documents is not necessary when forwarding data to the data entry group for input into the system.

Answer:  FALSE

Diff: 2

Learning Obj.:  1

 

4) A batch control form should require the preparer’s signature or name.

Answer:  TRUE

Diff: 2

Learning Obj.:  1

 

5) When key-verification software is used, the software automatically corrects any mismatches to ensure smooth and uninterrupted processing.

Answer:  FALSE

Diff: 2

Learning Obj.:  1

 

6) Visual verification is another highly effective method used to detect data-entry errors.

Answer:  FALSE

Diff: 2

Learning Obj.:  1

 

7) Program data editing is often used in place of verification.

Answer:  FALSE

Diff: 2

Learning Obj.:  1

 

8) Data editing routines may be applied to each of the basic data structures.

Answer:  TRUE

Diff: 2

Learning Obj.:  1

 

 

9) An edit program performs a table lookup when it compares the actual value of a field to acceptable values found in a table.

Answer:  TRUE

Diff: 2

Learning Obj.:  1

10) A check digit is a value found in an input field that is visually compared, or “checked.”

Answer:  FALSE

Diff: 2

Learning Obj.:  1

 

11) Accounting data entered into an Accounting Information System must be in the form of debits and credits.

Answer:  FALSE

Diff: 2

Learning Obj.:  1

 

12) Sophisticated information systems can capture system events and their attributes.

Answer:  TRUE

Diff: 2

Learning Obj.:  1

 

13) Bar coding is a manual identification technique used in a real-time system.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

14) Bar coding is an automatic identification technique used in a real-time system.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

15) The Internet has enhanced the real-time sales system by extending it to customers who are off-site.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

16) A company can use bar coding technology to achieve maximum benefit without code standardization.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

 

17) Sending an electronic catalog has the same advantages as sending it in paper form.

Answer:  FALSE

Diff: 3

Learning Obj.:  2

 

18) A company will often analyze its customers’ sales trends and predict future needs.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

19) There are two major EDI phases.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

20) The essential EDI phases include the physical receipt of the order, validation and authentication, and decryption and translation.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

21) A transmission acknowledgment reports in detail the items in the received message.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

22) A functional acknowledgment acknowledges receipt of the message and reports in detail the items in the received message.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

23) An input document control form documents real-time totals of input data transmitted between user departments and the data processing department.

Answer:  FALSE

Diff: 2

Learning Obj.:  1

Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

24) An output distribution register is maintained to control the disposition of reports.

Answer:  TRUE

Diff: 2

Learning Obj.:  1

 

25) All electronic input systems are referred to as on-line input systems.

Answer:  TRUE

Diff: 1

Learning Obj.:  1

26) Matching a vendor code to a table file of valid vendor codes is an example of a valid code check.

Answer:  TRUE

Diff: 2

Learning Obj.:  1

 

27) Using an electronic input system helps ensure the segregation of duties and provides a solid audit trail.

Answer:  FALSE

Diff: 2

Learning Obj.:  1

 

28) Tagging occurs when additional, audit-oriented information is included with original transaction data.

Answer:  TRUE

Diff: 2

Learning Obj.:  1

29) A common example of an automated identification system is an automated Point-of-Sale system used in most retail, grocery, and discount stores.

Answer:  TRUE

Diff: 1

Learning Obj.:  2

 

30) All electronic input systems require no human intervention.

Answer:  FALSE

Diff: 1

Learning Obj.:  2

 

31) Few manual processing systems are batch oriented.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

32) Batch processing is economical when large numbers of transactions must be processed.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

33) Batch processing can only be performed using random-accessed (i.e., direct or indexed) file updating.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

 

34) A sequentially organized master file commonly resides on a direct-access storage device.

Answer:  TRUE

Diff: 3

Learning Obj.:  2

 

35) When preparing the transaction file, occasional data editing of source documents prior to input is suggested.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

36) Editing as a function may be placed between the input and process functions in a processing flow diagram.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

37) There are three major aspects to the operation of a computerized general ledger system.

Answer:  FALSE

Diff: 2

Learning Obj.:  3

38) All entries into the general ledger should be documented with journal vouchers.

Answer:  TRUE

Diff: 2

Learning Obj.:  3

 

39) Line coding is the process that links general ledger accounts and the reports in which they appear.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

40) Line codes should never be stored within the general ledger file itself.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

41) Sequential-access file updating is simpler than random-access file updating.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

 

42) An accounts receivable control file is a summary of the accounts receivable by type of account, such as “installment” or “net 30 days.”

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

43) The last step in the cash remittance processing of customer payments by check is to restrictively endorse the checks.

Answer:  FALSE

Diff: 2

Learning Obj.:  3

 

44) Paid customer invoice records are retained on-line for a year and are available for inquiries.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

45) Comparing the activity file and the bank summary file does not ensure that all cash has been deposited and has been applied and recorded on the activity file.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

46) Using an OLRS, master files are always up-to-date because they are updated as soon as transaction data is input.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

47) Control of transaction process is far less involved in OLRS than it is in batch-oriented systems.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

48) A significant degree of cooperation among trading partners is required to implement real-time sales systems.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

49) Batch-processing systems rely almost exclusively on wands and scanners for UPC bar code recognition.

Answer:  FALSE

Diff: 2

Learning Obj.:  2

 

50) Point-of-sale systems provide a variety of timely and detailed reports concerning operations, which is of great benefit to the management of a retail firm.

Answer:  TRUE

Diff: 2

Learning Obj.:  2

 

51) EDI documents typically contain three control numbers, two at the beginning of the message and one at the end.

Answer:  FALSE

Diff: 3

Learning Obj.:  1

 

52) Because real-time sales systems pose certain internal control problems, good computer security and careful program data edit checks are essential.

Answer:  TRUE

Diff: 2

Learning Obj.:  1

 

53) On-line, real-time electronic systems produce significant amounts of output.

Answer:  FALSE

Diff: 1

Learning Obj.:  2

 

54) The use of ________ control over the entire data processing input-process-output sequence is fundamental to organizational independence.

Answer:  batch

Diff: 2

Learning Obj.:  1

 

55) The use of programmed edit checks to discriminate among acceptable data is called ________ ________ auditing.

Answer:  continuous operational

Diff: 3

Learning Obj.:  1

56) Using ________ ________ can compensate for the loss of manual internal controls.

Answer:  transaction logs or transaction registers

Diff: 2

Learning Obj.:  1

 

57) ________ ________ input sales data into the computer system for processing immediately at the time and point of sale.

Answer:  Point-of-Sale Systems

Diff: 2

Learning Obj.:  2

 

 

58) Many manual, batch-oriented systems use ________ file processing.

Answer:  sequential

Diff: 2

Learning Obj.:  2

 

59) Using son-father-grandfather retention, if the old master file is the ________, the backup master file must be the ________.

Answer:  father; grandfather

Diff: 2

Learning Obj.:  1

 

60) Computer processing of accounting data is typically a(n) ________ procedure.

Answer:  two-step

Diff: 1

Learning Obj.:  3

 

61) The summary of the current month’s general ledger activity is the general ledger by ________.

Answer:  account

Diff: 2

Learning Obj.:  3

 

62) Each month ________ ________ should be reconciled to reports prepared from the bank summary file.

Answer:  bank statements

Diff: 1

Learning Obj.:  2

 

63) Users interactively input data in ________ ________ systems.

Answer:  data entry

Diff: 2

Learning Obj.:  1

 

64) The technologies that make real-time sales systems feasible are the ________ system; bar coding for automatic identification, and the ________ ordering system.

Answer:  POS; EDI

Diff: 2

Learning Obj.:  2

65) The ________ has enhanced the real-time sales system by extending it to customers who are off-site.

Answer:  Internet

Diff: 2

Learning Obj.:  2

 

 

66) In a real-time sales system, ________ can be used to transmit retail sales data captured from the retail store to vendors.

Answer:  EDI

Diff: 2

Learning Obj.:  2

 

67) A group that is often part of the internal audit function that is charged with monitoring EDP operations is the ________ ________ group.

Answer:  EDP control

Diff: 2

Learning Obj.:  3

 

68) Fundamental controls over data transfer between user departments and data processing include

  1. A) batch control totals.
  2. B) data transfer registers.
  3. C) activity file totals.
  4. D) Answers A and B are both correct.

Answer:  D

Diff: 1

Learning Obj.:  1

 

69) Input data should be accompanied by the completion of a(n)

  1. A) data transfer log.
  2. B) input document control form.
  3. C) data transfer register.
  4. D) key verification control procedure.

Answer:  B

Diff: 1

Learning Obj.:  1

Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

70) Errors in the keying operation can be detected using

  1. A) a key verification control procedure.
  2. B) a data transfer control register.
  3. C) program data editing.
  4. D) None of these is correct.

Answer:  A

Diff: 2

Learning Obj.:  1

 

71) In a manual input system, batch controls are prepared initially by the

  1. A) EDP department.
  2. B) computer software.
  3. C) user department.
  4. D) general ledger department.

Answer:  C

Diff: 1

Learning Obj.:  1

 

72) A software-based control procedure that checks for some errors as they are being input is called

  1. A) input verification.
  2. B) key verification.
  3. C) input control testing.
  4. D) transcription checking.

Answer:  B

Diff: 1

Learning Obj.:  1

 

73) Key verification is often used

  1. A) to verify only selected essential fields.
  2. B) to verify essential and nonessential numeric fields.
  3. C) to verify all input fields, both alpha and numeric.
  4. D) when two or more people key input data in unison.

Answer:  A

Diff: 2

Learning Obj.:  1

 

74) As a control procedure, key verification requires that

  1. A) user departments key all of their own data.
  2. B) input fields are visually verified.
  3. C) key mismatches are electronically corrected.
  4. D) each source document is key-transcribed a second time.

Answer:  D

Diff: 2

Learning Obj.:  1

 

75) Key verification control procedures

  1. A) edit data.
  2. B) do not use batch totals.
  3. C) do not edit data.
  4. D) electronically replace incorrect data with data from an existing database.

Answer:  C

Diff: 2

Learning Obj.:  1

 

76) Program data editing is a software technique that should

  1. A) be used in addition to verification.
  2. B) be used in place of verification.
  3. C) be applied only to characters within input fields.
  4. D) only be used after visual verification has detected errors in the input.

Answer:  A

Diff: 2

Learning Obj.:  1

 

77) Program data editing techniques may be applied to

  1. A) fields.
  2. B) records.
  3. C) files.
  4. D) All of these answers are correct.

Answer:  D

Diff: 1

Learning Obj.:  1

 

78) A data editing routine that compares data with acceptable values is a

  1. A) limit test.
  2. B) table lookup.
  3. C) financial total check.
  4. D) valid code check.

Answer:  B

Diff: 1

Learning Obj.:  1

 

79) A data editing routine that compares numeric data input within a range is a(n)

  1. A) table lookup.
  2. B) hash total check.
  3. C) limit test.
  4. D) internal label test.

Answer:  C

Diff: 1

Learning Obj.:  1

 

80) An extra digit added to a code number verified by applying mathematical calculations to the individual code number characters is a

  1. A) control digit.
  2. B) hash digit.
  3. C) check digit.
  4. D) verification digit.

Answer:  C

Diff: 1

Learning Obj.:  1

 

81) Check digits are especially effective at detecting

  1. A) transposition errors.
  2. B) accidental keying mistakes.
  3. C) incorrect account numbers.
  4. D) customer accounts that were never assigned.

Answer:  A

Diff: 2

Learning Obj.:  1

 

82) The use of check digits

  1. A) is highly unusual in today’s EDP environment.
  2. B) is very common because of the high reliability of this procedure.
  3. C) eliminates using key verification as a control procedures.
  4. D) eliminates using data editing routines as a method to detect errors.

Answer:  B

Diff: 2

Learning Obj.:  1

 

83) Electronic data entry

  1. A) requires no human intervention.
  2. B) is sequentially processed.
  3. C) is always manually entered.
  4. D) is on-line.

Answer:  D

Diff: 2

Learning Obj.:  1

 

84) An essential input field that should contain data is empty. The data edit control that would detect this error is a

  1. A) limit check.
  2. B) completeness check.
  3. C) sequence check.
  4. D) hash total check.

Answer:  B

Diff: 2

Learning Obj.:  1

 

85) The “amount due” field of a bill is checked to ensure that the sign is positive. This is an example of a field

  1. A) sign check.
  2. B) length check.
  3. C) format check.
  4. D) type check.

Answer:  A

Diff: 1

Learning Obj.:  1

86) During input, a data entry clerk incorrectly keyed product codes “ABXY” as “BAXY.” Both ABXY and BAXY are valid codes. Which of the following controls would prevent this situation?

  1. A) A table-lookup procedure
  2. B) A check digit test
  3. C) Key verification
  4. D) Limit test

Answer:  C

Diff: 2

Learning Obj.:  1

 

87) The compensating control for the loss of segregation of duties in an electronic input system is

  1. A) supervision and review.
  2. B) input document control forms.
  3. C) prenumbered documents.
  4. D) transaction logs.

Answer:  D

Diff: 2

Learning Obj.:  1

 

88) Three technologies make extended supply-chain systems feasible. Which of the below is not one?

  1. A) XML-type data generation
  2. B) POS system
  3. C) Bar coding for automatic identification
  4. D) EDI ordering system

Answer:  A

Diff: 2

Learning Obj.:  2

 

89) A transaction log that is “tagged” means that

  1. A) it has been catalogued in the EDP library.
  2. B) it is full and cannot hold any more information.
  3. C) it has been key verified and data edited.
  4. D) additional, audit-oriented information is included with original transaction data.

Answer:  D

Diff: 2

Learning Obj.:  1

 

 

90) Sue Pang enters sales data directly into the computer-input program using a keyboard. The type of system Sue is using is a(n)

  1. A) automatic identification system.
  2. B) manual data entry system.
  3. C) point-of-sale system.
  4. D) electronic data interchange system.

Answer:  B

Diff: 2

Learning Obj.:  2

91) In an electronic input system requiring human intervention, the main processing phases and their proper sequence are

  1. A) (1) data input and (2) data editing.
  2. B) (1) data editing and (2) data input.
  3. C) (1) data input and editing, and (2) transfer to the host application system.
  4. D) (1) data input, (2) transfer to the host application system, and (3) data editing.

Answer:  C

Diff: 2

Learning Obj.:  1

Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

92) A customer pumps gas at a local convenience store. The customer pays for the gasoline by inserting a credit card into the gasoline pump. This is an example of a(n)

  1. A) networked vending machine.
  2. B) point-of-sale system.
  3. C) automatic identification system.
  4. D) electronic data interface system.

Answer:  A

Diff: 2

Learning Obj.:  2

 

93) A batch processing system would work best when processing

  1. A) inventory.
  2. B) payroll.
  3. C) accounts receivable.
  4. D) accounts payable.

Answer:  B

Diff: 2

Learning Obj.:  2

 

94) The first step in a batch-processing environment using sequential file updating is

  1. A) preparing general ledger reports.
  2. B) updating the master file.
  3. C) preparing the transaction file.
  4. D) updating the general ledger.

Answer:  C

Diff: 2

Learning Obj.:  2

95) In a system using batch processing with sequential file updating, at what point is the general ledger updated?

  1. A) After all master files are updated
  2. B) After each transaction batch is entered
  3. C) After all transactions are entered
  4. D) After each transaction batch is edited

Answer:  A

Diff: 2

Learning Obj.:  1

96) When preparing the transaction file in a batch processing with sequential file system, the edit program

  1. A) builds a transaction file from processed batch input.
  2. B) performs batch balancing procedures.
  3. C) ensures all documents are accounted for prior to processing.
  4. D) accumulates revised batch-control totals for the input data.

Answer:  D

Diff: 2

Learning Obj.:  1

 

97) When a system sorts edited data immediately before a master file update in a batch-oriented system, the operation sequence for editing and sorting is called

  1. A) sort and edit.
  2. B) edit and sort.
  3. C) sort and update.
  4. D) edit and update.

Answer:  B

Diff: 1

Learning Obj.:  2

 

98) Alberta Products Company updates their accounts receivable master file each day. The EDP department uses the son-father-grandfather retention of master files. A computer operator accidentally destroyed the most recent accounts receivable master file by using the purchase transaction file to update it. The operator now has today’s correct transaction file. How can the operator reconstruct the accounts receivable master file for the update?

  1. A) Process yesterday’s son against today’s transaction file.
  2. B) Process yesterday’s grandfather against yesterday’s transaction file.
  3. C) Process yesterday’s father against yesterday’s transaction file.
  4. D) Process yesterday’s son against yesterday’s transaction file.

Answer:  C

Diff: 3

Learning Obj.:  1

 

 

99) The master file in a computer system is equivalent to which one of the following manual system features?

  1. A) Subsidiary ledger
  2. B) Journal
  3. C) Register
  4. D) Log

Answer:  A

Diff: 1

Learning Obj.:  3

 

100) For a general ledger accounting system to be properly maintained, data must be

  1. A) collected.
  2. B) recorded.
  3. C) properly classified and entered into appropriate records for further summations.
  4. D) All of these answers are correct.

Answer:  D

Diff: 1

Learning Obj.:  3

101) In a general ledger file update, all entries into the general ledger are

  1. A) first documented using a journal voucher.
  2. B) updated by each user department as necessary.
  3. C) dumped and not processed if any invalid data is found in any entry.
  4. D) first documented using a journal voucher, then are used to build a journal voucher file.

Answer:  D

Diff: 2

Learning Obj.:  3

 

102) Computer processing of accounting data is typically composed of

  1. A) producing preliminary reports and then final listings after submission of corrections.
  2. B) five steps which occur in four separate and distinct cycles.
  3. C) seven steps (following the typical accounting cycle).
  4. D) a series of mathematical algorithms.

Answer:  A

Diff: 2

Learning Obj.:  3

 

103) In a general ledger accounting system, the link created between the general ledger accounts and the report(s) in which they appear is called

  1. A) a line locator.
  2. B) line coding.
  3. C) soft coding.
  4. D) hard coding.

Answer:  B

Diff: 2

Learning Obj.:  3

 

104) The type of file updating which should be used in a DBMS system using batch processing is

  1. A) random-access.
  2. B) sequential-access.
  3. C) automatic.
  4. D) peer-to-peer.

Answer:  C

Diff: 1

Learning Obj.:  2

 

105) In a cash remittance processing, the open-items accounts receivable file serves as the

  1. A) billing data.
  2. B) credit sales journal.
  3. C) accounts receivable control account.
  4. D) subsidiary accounts receivable ledger.

Answer:  D

Diff: 1

Learning Obj.:  3

106) An electronic processing system can be used

  1. A) only in a batch environment.
  2. B) with real-time, on-line processing.
  3. C) in either a batch or real-time, on-line processing environment.
  4. D) in situations where documentation is not a priority.

Answer:  C

Diff: 2

Learning Obj.:  2

 

107) The type of OLRS system in which users do not input, but only request information, is a(n)

  1. A) data entry system.
  2. B) inquiry/response system.
  3. C) file processing system.
  4. D) transaction processing system.

Answer:  B

Diff: 2

Learning Obj.:  2

 

108) Which application would not be ideally suited to processing by an OLRS system?

  1. A) Payroll
  2. B) On-line reservations
  3. C) Inventory control
  4. D) Customer accounts

Answer:  A

Diff: 2

Learning Obj.:  2

 

 

109) A technology that is not typically used in a real-time sales system is

  1. A) bar coding.
  2. B) sequential file processing.
  3. C) a POS system.
  4. D) an EDI ordering system.

Answer:  B

Diff: 2

Learning Obj.:  2

 

110) A retail sales Point-of-Sale terminal

  1. A) records cash and charge sales.
  2. B) updates inventory records.
  3. C) provides data for posting to daily sales records.
  4. D) All of these answers are correct.

Answer:  D

Diff: 1

Learning Obj.:  2

111) Automatic identification of products is greatly enhanced by

  1. A) using UPC as a base.
  2. B) employing JIT processing.
  3. C) manually prepared price tags affixed by receiving personnel upon delivery.
  4. D) transaction tagging using each manufacturer’s unique inventory control numbers.

Answer:  A

Diff: 1

Learning Obj.:  2

 

112) In a real-time sales system, which transaction-processing step below would not be performed entirely by using EDI?

  1. A) Receiving and translating an incoming customer order
  2. B) Sending an acknowledgement of the incoming order
  3. C) Sending the customer a three-ring bound catalogue using the U.S. mail
  4. D) Transmitting an advanced shipping notice to the customer

Answer:  C

Diff: 3

Learning Obj.:  2

 

113) Output systems can be manual, electronic, or something in between. Irrespective of the media used in an output system, output distribution should be controlled using a

  1. A) distribution register.
  2. B) transaction register.
  3. C) check register.
  4. D) POS terminal.

Answer:  A

Diff: 1

Learning Obj.:  1

 

114) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms.

 

Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once.

 

________ 1. Key verification

________ 2. Valid code check

________ 3. OLRS

________ 4. Output distribution register

________ 5. Tagging

________ 6. Check digit

________ 7. Output controls

________ 8. Son-father-grandfather retention

________ 9. Table lookup

________ 10. Batch processing

Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

  1. Designed to check that processing results in valid output and that outputs are distributed properly to users
  2. On-line real-time system
  3. Source documents are accumulated into groups for periodic processing
  4. A table-lookup procedure in which the table file consists of valid data codes
  5. Audit-oriented information that is included with original transaction data when they are recorded
  6. A control procedure to ensure the accuracy of the key-transcribed input data
  7. A log maintained to control the disposition of outputs and reports
  8. An extra digit added to a code number which is verified by applying mathematical calculations to the individual digits in the code number
  9. An edit program that compares the value of a field to the acceptable values contained in a table file
  10. Retaining the old master and the transaction file for backup over the new master file

Answer:  1. F, 2. D, 3. B, 4. G, 5. E, 6. H, 7. A, 8. J, 9. I, 10. C

Diff: 2

Learning Obj.:  1

 

115) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms.

 

Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once.

 

________ 1. Key verification

________ 2. Real-time

________ 3. On-line, real time computing

________ 4. Input document control form

________ 5. Tagging

________ 6. Program data editing

________ 7. Valid code check

________ 8. Transaction processing system

________ 9. Table lookup

________ 10. POS system

 

  1. A table-lookup procedure in which the table file consists of valid data codes
  2. A system that processes input data immediately after they are input and can provide immediate output to users
  3. Technology that enhances the traditional cash register to allow it to function as a source data-entry device for sales transactions
  4. A computer environment where immediate or fast-response processing occurs
  5. Audit-oriented information that is included with original transaction data when they are recorded.
  6. A control procedure to ensure the accuracy of the key-transcribed input data
  7. Documents batch control totals for batches of input data transmitted between user departments and the data processing department
  8. A software technique used to screen data prior to computer processing
  9. An edit program that compares the value of a field to the acceptable values contained in a table file
  10. A system that collects and processes transactions and provides immediate output concerning processing

Answer:  1. F, 2. D, 3. B, 4. G, 5. E, 6. H, 7. A, 8. J, 9. I, 10. C

Diff: 2

Learning Obj.:  1, 2

 

116) Base your answer using the following version of the Modulus 11-check digit found in Chapter 6.

 

For a four-digit account number:

  1. Multiply each digit separately by the corresponding digit in the sequence: 5, 4, 3, 2.
  2. Add results of digit multiplication in Step 1, digit-by-digit.
  3. Subtract Step 2 results from the next highest multiple of 11.
  4. The Step 3 result is the check digit.

 

Required: Calculate the check digit for each of the following account numbers:

  1. 8369
  2. 2386

Answer:

  1. The check digit is 8, as follows:

8 × 5 = 40        4 + 0 + 1 + 2 + 1 + 8 + 1 + 8 = 25;           33 – 25 = 8

3 × 4 = 12

6 × 3 = 18

9 × 2 = 18

 

  1. The check digit is 9, as follows:

2 × 5 = 10       1 + 0 + 1 + 2 + 2 + 4 + 1 + 2 = 13;           22 – 13 = 9

3 × 4 = 12

8 × 3 = 24

6 × 2 = 12

Diff: 2

Learning Obj.:  1

 

 

117) Base your answer using the following version of Modulus 11-check digit found in Chapter 6.

 

For a four-digit account number:

  1. Multiply each digit separately by the corresponding digit in the sequence: 5, 4, 3, 2.
  2. Add results of digit multiplication in Step 1, digit-by-digit.
  3. Subtract Step 2 results from the next highest multiple of 11.
  4. The Step 3 result is the check digit.

 

Required: Calculate the check digit for each of the following account numbers:

  1. 2596
  2. 7428

Answer:

  1. The check digit is 7, as follows:

2 × 5 = 10        1 + 0 + 2 + 0 + 2 + 7 + 1 + 2 = 15;           22 – 15 = 7

5 × 4 = 20

9 × 3 = 27

6 × 2 = 12

 

  1. The check digit is 5, as follows:

7 × 5 = 35        3 + 5 + 1 + 6 + 6 +1 + 6 = 28;      33 – 28 = 5

4 × 4 = 16

2 × 3 = 6

8 × 2 = 16

Diff: 2

Learning Obj.:  1

118) The following input is in an accounts receivable application:

 

Account number            Gross amount

 

5864                            8362

1438                            7866

2289                            6483

9822                            8968

2877                            5214

 

Required: Calculate the appropriate (a) record count; (b) financial total; and (c) hash total.

Answer:

  1. 5
  2. 36,893
  3. 22,290

Diff: 2

Learning Obj.:  1

 

 

119) The following input is in an accounts payable application:

 

Account number            Gross amount

 

6289                            9482

3276                            4860

1280                            7298

9764                            9062

1283                            5775

 

Required: Calculate the appropriate (a) record count; (b) financial total; and (c) hash total.

Answer:

  1. 5
  2. 36,477
  3. 21,892

Diff: 2

Learning Obj.:  1

 

120) For each of the following situations, indicate the program data editing technique that is appropriate to detect the error:

 

  1. A system user transposed digits when entering a customer’s account number.

 

  1. An input clerk input the wrong sales territory number for employee number 35 in a sales commissions payable program.

 

  1. The data processing department failed to process all the items in a batch.

Answer:

  1. check digit
  2. combination field check
  3. record count or financial total or hash total

Diff: 2

Learning Obj.:  1

 

121) For each of the following situations, indicate the program data editing technique that is appropriate to detect the error:

 

  1. Calgary Mountain Equipment Company uses prenumbered sales orders. The company is not sure that it can account for all sales orders for the week of October 21, 200X.

 

  1. The amount of a check in a vouchers payable program was negative.

 

  1. A data entry clerk failed to complete customer address information in a batch of sales orders.

Answer:

  1. sequence check
  2. limit check
  3. completeness check

Diff: 2

Learning Obj.:  1

 

122) Describe how random-access file updating differs from sequential file updating.

Answer:  Suggested answer:

 

Random-access file updating does not require that transactions be sorted before the master file update. Also, random-access file updating changes the records on the master file without creating a new master file. Sequential-access transactions are sorted before updating the master file, and process the transaction file against the previous run’s master file to create a new master file.

Diff: 2

Learning Obj.:  1

 

123) Describe how a son-father-grandfather master file retention system works. Describe how a master file destroyed in an update can be restored using this retention system.

Answer:  Suggested answer:

 

In an SFG system, the transaction file is processed against the current master file. After processing, the old (outdated) master file, the new master file, and the transaction file are retained as backups. As many generations of the old master files and related transaction files can be retained as desired. The current master file is the “son, ” the next oldest master is the “father,” and so on. If the “son” is destroyed in the next master file update, it can be restored by processing the previous run’s transaction file against the “father.” The new “son” can then be used in the next processing run.

Diff: 2

Learning Obj.:  1

 

124) Discuss the components necessary to operate a real-time sales system.

Answer:  Suggested answer:

 

There are a minimum of three modern technologies required to make a real-time sales system work and feasible for a retailer:

  • a POS (point-of-sale) system
  • bar coding for automatic identification of inventory
  • an EDI ordering system

 

When inventory items are uniformly coded (using UPC bar codes), a POS system can easily scan items purchased by customers. This automatically allows critical records (such as inventory and sales receipts) to be updated and kept current in a convenient electronic format. It also allows the real-time sales system to initiate orders for additional items when order quantity reaches its “safety stock” reorder point. This is why almost all real-time retail systems use the UPC coding system (which is practically universal). For other types of sales systems other coding schemes may be used (such as the EAN Bookland bar code system used by most publishers, bookstores and chain book retailers such as Borders and Barnes & Noble). Since the POS system has captured and generated inventory and sales information in an electronic format, the electronic data interface (EDI) ordering system can almost instantly place orders with vendors. Sales information can also be transmitted from retail stores to vendors to help them with inventory planning and control.

 

One unique benefit of such a real-time sales system is that it can be adapted to a Web site and accessed by customers over the Internet. Such a system operates without any human intervention, thus significantly cutting costs, and with Internet access virtually worldwide, customers can “order without borders.” Also, the “Internet store” is open 24 × 7, 365 days per year.

Diff: 2

Learning Obj.:  2

 

125) What are the benefits of program data editing?

Answer:  Suggested answer:

 

Input data should be thoroughly edited after entry to ensure valid content. Program data editing is a software technique used to screen data for errors prior to processing. Such software should be used in addition to verification, not in place of it. Data editing routines may be applied to any of the basic data structures: characters, fields, records, and files. Data editing checks for validity, completeness, format, sign assignment, length, and reasonableness among other criteria. Data editing techniques use hash totals, record count totals, and financial totals to ensure the integrity of the input data.

Diff: 2

Learning Obj.:  1

 

126) Discuss how batch totals are prepared and used. Explain how the use of batch totals and data transfer logs helps to establish segregation of duties between user departments and the data processing department.

Answer:  Suggested answer:

 

User departments prepare batch totals when submitting documents to data processing. A user includes batch totals on an input document control form that accompanies the documents when they are sent to data processing. Data processing records the control form information, including the batch totals, in a data transfer log. Data processing reconciles the batch output, which includes calculations of batch totals, to the amounts on the control form. Data processing sends the output to the user, who reconciles the batch totals to the previously prepared totals. The user department’s establishment of the control total prevents data processing from inserting, deleting, or changing transactions in the batch.

Diff: 2

Learning Obj.:  1

Accounting Information Systems 11th Edition, Test Bank – George H. Bodnar

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