Chapter 2 - Overview of Transaction Processing and Enterprise Resource Planning Systems Test 100% GRADES ASSURED

Identify the statement below that is not true with regards to the accounts receivable subsidiary ledger. Question options: A) Every credit sale is entered individually into the subsidiary ledger. B) Debits and credits in the subsidiary ledger must always equal. C) The subsidiary ledgers play an important role in maintaining the accuracy of the data stored in the AIS. D) The total of the subsidiary ledgers must equal the control account. - answersB Which of the following is not usually a consideration when designing a coding system? Question options: A) government coding regulations B) standardization C) future expansion needs D) ease of reporting - answersA Which of the following is an example of source data automation? Question options: A) a utility bill B) POS (point-of-sale) scanners in retail stores C) a bill of lading D) a subsidiary ledger - answersB Pre-numbering of source documents helps to verify that Question options: A) documents have been used in order. B) company policies were followed. C) all transactions have been recorded. D) source data automation was used to capture data. - answersC Identify the statement below that is false with regards to effective coding practices. Question options: A) Codes should allow for growth. B) Codes should be consistent with intended use. C) Codes should be customized for each division of an organization. D) Codes should be as simple as possible. - answersC he coding technique most likely used for sales orders is Question options: A) block code. B) group code. C) sequence code. D) data code. - answersC Data processing includes all of the following except Question options: A) verifying subsidiary ledger balances. B) changing customer addresses. C) removing inventory items no longer offered. D) adding the name of a new vendor. - answersA A general journal Question options: A) would be used to record monthly depreciation entries. B) simplifies the process of recording large numbers of repetitive transactions. C) records all detailed data for any general ledger account that has individual sub-accounts. D) contains summary-level data for every account of the organization. - answersA A specialized journal would be most likely to be used to enter Question options: A) sales transactions. B) monthly depreciation adjustments. C) annual closing entries. D) stock issuance transactions. - answersA John Pablo works in the accounting department of a multinational manufacturing company. His job includes updating accounts receivable based on sales orders and remittance advices. His responsibilities are part of the company's Question options: A) revenue cycle. B) expenditure cycle. C) financing cycle. D) production cycle. - answersA Catarina Boards is a skateboard retailer located in Pueblo, New Mexico. Catarina Boards is a sole proprietorship that stocks an inventory of between 30 and 50 different skateboards. Inventory is updated in real time by the AIS. If Catarina wishes to keep detailed information about the purchase price of each skateboard in a place outside of the general ledger, it might use a Question options: A) relational ledger. B) transaction file. C) master file. D) specific ledger. - answersB The collection of employee time sheets is part of which transaction cycle? Question options: A) the revenue cycle B) the production cycle C) the human resources cycle D) the expenditure cycle - answersC Which of the following information would most likely be reviewed by management on an exception report? Question options: A) monthly cash budget B) quality control system failures C) unit sales by territory and salesperson D) income statement - answersB The general ledger Question options: A) is the initial place to record general expenses. B) is posted in total to the general journal. C) only includes balance sheet accounts. D) summarizes the transactions in journals. - answersD A purchase requisition is a common source document used to facilitate which business activity? Question options: A) customer sale B) receipt of goods