Test Bank for Accounting Information Systems 9th Edition James A Hall

Chapter 2—Introduction to Transaction Processing TRUE/FALSE 1. Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems. ANS: T PTS: 1 2. The process of acquiring raw materials is part of the conversion cycle. ANS: F PTS: 1 3. Directing work-in-process through its various stages of manufacturing is part of the conversion cycle. ANS: T PTS: 1 4. The portion of the monthly bill from a credit card company is an example of a turn-around document. ANS: T PTS: 1 5. The general journal is used to record recurring transactions that are similar in nature. ANS: F PTS: 1 6. Document flowcharts are used to represent systems at different levels of detail. ANS: F PTS: 1 7. Data flow diagrams represent the physical system. ANS: F PTS: 1 8. System flowcharts are often used to depict processes that are handled in batches. ANS: T PTS: 1 9. Program flowcharts depict the type of media being used (paper, magnetic tape, or disks) and terminals. ANS: F PTS: 1 10. System flowcharts represent the input sources, programs, and output products of a computer system. ANS: T PTS: 1 MULTIPLE CHOICE 1. Which system is not part of the expenditure cycle? a. cash disbursements b. Payroll c. production planning/control d. purchases/accounts payable ANS: C PTS: 1 2. Which system produces information used for inventory valuation, budgeting, cost control, performance reporting, and make-buy decisions? a. sales order processing b. purchases/accounts payable c. cash disbursements d. cost accounting ANS: D PTS: 1 3. Which of the following is a turn-around document? a. remittance advice b. sales order c. purchase order d. payroll check ANS: A PTS: 1 4. The order of the entries made in the ledger is by a. transaction number b. account number c. Date d. User ANS: B PTS: 1 5. The order of the entries made in the general journal is by a. Date b. account number c. User d. customer number ANS: A PTS: 1 6. In general, a special journal would not be used to record a. sales b. cash disbursements c. depreciation