Test Bank for Accounting Information Systems, 10th Edition, James A. Hall

Chapter 02 Introduction to Transaction Processing True / False 1. Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems. a. True b. False ANSWER: True 2. The process of acquiring raw materials is part of the conversion cycle. a. True b. False ANSWER: False 3. Directing work-in-process through its various stages of manufacturing is part of the conversion cycle. a. True b. False ANSWER: True 4. The portion of the monthly bill that the customer returns to the credit card company with the payment is an example of a turnaround document. a. True b. False ANSWER: True 5. The general journal is used to record recurring transactions that are similar in nature. a. True b. False ANSWER: False 6. Document flowcharts are used to represent systems at different levels of detail. a. True b. False ANSWER: False 7. Data flow diagrams represent the physical system. a. True b. False ANSWER: False 8. System flowcharts are often used to depict processes that are handled in batches. a. True b. False ANSWER: True 9. Program flowcharts depict the type of media being used (paper, magnetic tape, or disks) and terminals. a. True b. False ANSWER: False 10. System flowcharts represent the input sources, programs, and output products of a computer system. a. True b. False ANSWER: True 11. Program flowcharts are used to describe the logic represented in system flowcharts. a. True b. False ANSWER: True 12. Batch processing systems can store data on direct access storage devices. a. True b. False ANSWER: True 13. Selecting a specific record from a master file containing millions of records requires a direct access file environment. a. True b. False ANSWER: True 14. The box symbol represents a temporary file. a. True b. False ANSWER: False 15. Auditors may prepare program flowcharts to verify the correctness of program logic. a. True b. False ANSWER: True 16. A control account is a general ledger account which is supported by a subsidiary ledger. a. True b. False ANSWER: True 17. The most significant characteristic of direct access files is access speed. a. True b. False