WGU D104 Pre- Assessment V2– Intermediate Accounting II (Latest 2026/ 2027 Update) 100% Verified Questions & Answers | Grade A

WGU D104 Pre- Assessment V2– Intermediate Accounting II (Latest 2026/ 2027 Update) 100% Verified Questions & Answers | Grade A Question: What are the advantages of using data coding in accounting information systems? Concisely representing large amounts of complex information that would otherwise be unmanageable How is the digital audit trail like the paper audit trail? The digital audit trail allows transaction tracing. What does an external auditor's responsibility involve? Determining validity, accuracy, and completeness Which type of digital computer file stores payroll programs and other data that are used as standards for processing? Reference file With which cycle does the fixed asset system share some characteristics? Expenditure cycle Which company cycle transforms or converts input resources; such as raw materials, labor, and overhead; into finished products or services for sale? Conversion cycle Data coding involves creating simple numeric or alphabetic codes to represent complex economic phenomena that facilitate efficient data processing. An entry takes a great deal of recording space, is time-consuming to record, and is prone to many types of errors. Which information flow supports preparing the financial statements of an organization? GOT WRONG Internal vertical What is the relationship between the transaction processing system (TPS) and the general ledger system (GLS)? GOT WRONG Data from the TPS are input for the GLS. Which accounting information system (AIS) component provides information to external users? Financial reporting system (FRS) Useful information has the following characteristics: relevance, timeliness, accuracy, completeness, and summarization. What happens if the information is irrelevant? The decision maker wastes time analyzing the information A grocery store updates its inventory levels in the accounting information system in real time. However, the store frequently reports petty theft and has trouble locating inventory on the shop floor.Which characteristic of useful information is missing from this scenario? Reliable Which component of an information system is used to produce an operational budget? Management reporting system (MRS) Why would an organization decide to buy a turnkey information system (IS)? The organization can implement it with little or no modification. Who are the primary recipients of financial information? Investors and creditors which item represents a characteristic of a detailed and rich audit trail for a general ledger? Providing a means for detecting errors Which risk does automating general ledger (GL) postings pose to a company? Having no human intervention means the company could have errors in the data. What describes the network of information that can be used as an audit trail? Documents, journals, and ledgers What is the purpose of a purchase requisition? The purchase requisition ensures items purchased are only from authorized vendors. What are the accounting functions for the accounts payable? Collect data and invoices to properly complete transactions How do internal controls affect daily activities? They protect an organization from risk, and therefore, physical controls and IT controls are used. Which items make up the three-way match? Supplier's invoice, receiving report and purchase order Which items does a payroll department need in order to prepare the payroll register? Pay rate, withholding information, and hours worked Which document contains details on the acquisition of a fixed asset? Depreciation report which process represents proper design for funding a payroll imprest account? The Cash Disbursements department creates a single check to fund the payroll imprest account for the company payroll disbursement. Which items are included in the subsidiary ledger? Customer name, customer address, current balance, available credit, transaction dates, invoice numbers, credit for payments, returns What are the duties of the mail room clerk? The mail room clerk opens the envelopes and reconciles checks and remittances. What is a method for verification control? A copy of the signature to verify the signature How many surprise checks must an organization undergo annually to maintain the International Computer Security Association seal? GOT WRONG Two Which changes to mission-critical functions such as procurement and cash disbursements by electronic commerce are affecting the control environment? Transactions are performed automatically and in real time. What are the key problems an organization faces when trying to convey competence and conduct business fairly with customers, trading partners, and employees? Implementing the technological infrastructure and assuring partner's safeguards are in place and working Which activity represents electronic commerce? Trading stocks Which topics create new challenges for the accounting profession because of a changing legal environment? Intellectual property rights, privacy, and security What must a business do to qualify for the Better Business Bureau (BBB) seal (BBBOnLine)? Respond promptly to customer complaints What is a consequence of the task-data dependency of a flat-file approach? As users' needs change, additional data need to be gathered or recreated. Some companies pool their data to be shared by all users. Where would this data be located? In a database Where is a description of every data element in a database stored? Data dictionary An organization uses improperly normalized tables. Every inventory item also includes the following information about the vendor: name, address, telephone number.Which anomaly does this scenario reflect? Update anomaly Enterprise resource planning (ERP) system functionalities fall into general groups of applications. Which applications operationally support the day-to-day activities of a business? GOT WrONG Core applications What makes an enterprise resource planning (ERP) system more than simply an elaborate transaction processing system? It is a decision support tool. What can be accomplished through the use of enterprise resource planning (ERP)? A single computer system can serve the unique needs of each functional area. Why is there a lack of effective communication between systems in the traditional, non-ERP model? It is the consequence of a fragmented systems design process. Why are accountants and auditors concerned with computer systems that emerge from the systems development process and the financial data produced by these systems? The quality of an organization's financial statements is directly related to the quality of the accounting information systems that process and report the financial statements. How would systems engineers, database designers, and programmers who actually build a system be classified as participants in systems development? GOT WRONG Systems professionals What is a factor that has contributed to the growth of the commercial software market? General commercial software has a relatively low cost as compared to customized software. Which type of commercial system is completely finished, tested, and ready for implementation? Turnkey system Which systems are software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS), which are offered by cloud-based service providers, examples of? Vendor-supported systems What is a systems analyst classified as within systems development? GOT WRONG Systems professional Which type of commercial system would an organization choose if it wanted its office staff to be more productive? Office automation system Which turnkey system is a spreadsheet program an example of? Office automation system Which software option is mass-produced and designed to serve a wide variety of user needs, enabling the vendor to reduce development cost? General accounting systems Which commercial system creates a dependency for maintenance? Vendor-supported system Which phases of the system development life cycle are associated with both in-house development and systems that are purchased from an outside vendor? Phases involving needs analysis and system specification Why might a medical firm decide to purchase a commercial system after having chosen an in house system in the past? Special-purpose commercial systems are available for the medical field. Workers in an office need to update their ability to produce professional documents. Which type of system should the firm purchase? Office automation system What is a characteristic of general accounting systems? They are a standard system. Anika, an experienced programmer, takes a job with a small company in her hometown. In the first few days, it is apparent that the system she inherited maintenance responsibility for is poorly documented and, therefore, difficult to interpret, test, and debug. She concludes that the organization does not have adequate segregation of duties in place. Which kind of segregation of duties could have prevented this problem? Separating new systems development from maintenance Which controls do organizations use to ensure the completeness, accuracy, and validity of financial transactions? GOT WRONG Application controls Which outcome can occur if systems development is not separated from a database administrator (DBA)? GOT WRONG Deficient database access controls What can an organization use to address the risk of a perpetrator inserting a fraudulent payroll transaction along with legitimate transactions directly into the information system? GOT WRONG Internal controls to detect unauthorized changes Which reconciliation is tested in a three-way match? GOT WRONG Quantities ordered with quantities received What do validity tests ensure data values conform to? Specified tolerances Why are knowledgeable personnel in a client's organization interviewed as part of the black box approach? STUDY GUESSED To understand functional characteristics What should an auditor request to gain an understanding of an application and construct an accurate simulation? GOT WRONG Complete and current documentation What is used to convert a high-level language into machine-level language for execution? Compiler Which control strengthens the use of reusable passwords? A software automatically scans password files and notifies users that their passwords have expired and need to be changed. What is programmed into a network-level firewall to accept or deny access requests? GOT WRONG Filtering rules What does the Sarbanes-Oxley Act require as part of the annual reporting on internal controls for an organization? STUDY GUESSED A statement regarding management's responsibility for establishing and maintaining internal controls What is the most efficient type of control in the preventive-detective-corrective (PDC) control model? Preventive An organization uses a grandfather-father-son (GFS) backup system. Depreciation journal