WGU D217 ACCOUNTING
INFORMATION SYSTEMS/163
QUESTIONS AND ANSWERS
(A+)
Which of the following is a problem usually
associated with the flat-file approach to data
management? - =data redundancy
-Which problem is characteristically associated
with the flat-file approach to data management? -
=the inability to determine what data is available
-A description of the physical arrangement of
records in the database is - =the internal view.
-Which of the following may provide many distinct
views of the database? - =the user view
-The update anomaly in unnormalized tables -
=occurs because of data redundancy.
-The deletion anomaly in unnormalized tables -
=may result in the loss of important data.
-Which document triggers the revenue cycle? -
=the customer purchase order
,-Which department is least likely to be involved in
the revenue cycle? - =The accounts payable
department is least likely to be involved in the
revenue cycle. Accounts payable is charged with
managing the segment of the expenditure cycle
that involves payments to vendors and creditors.
-The purpose of the sales invoice is to - =The
purpose of the sales invoice is to bill the customer.
The sales invoice will be sent to the customer for
payment. At the same time the invoice will also
update inventory, send a journal to the general
ledger, and record the sales journal.
-Which type of control is considered a
compensating control for customer payments? -
=Supervision is a compensating control for
customer payments. Compensating controls are
put in place when more effective controls are
deemed too difficult or costly to implement.
Supervision is the simplest and most common
form of compensating control.
-Commercial accounting systems have fully
integrated modules. The word "integrated" means
that - =The word "integrated" means that the
transfer of information among modules occurs
automatically. In a fully integrated system, the
shipping advice will generate the request for
invoice automatically. This eliminates the risk that
,the invoice request is not processed or is
processed for a different amount.
-A copy of the purchase order (PO) is sent to the -
=A copy of the purchase order (PO) is sent to the
vendor. The purchase order is the formal
document that tells the vendor what material is
needed, at what price, in what quantity and on
what date.
-The departments involved in the purchasing
process are purchasing, receiving, inventory
control and - =The departments involved in the
purchasing process are purchasing, receiving,
inventory control and accounts payable. Accounts
payable completes the purchasing process by
authorizing and executing the cash disbursement
based on a signal from receiving or inventory
control.
-When a cash disbursement in payment of an
accounts payable is recorded - =When a cash
disbursement in payment of an accounts payable
is recorded the liability account is decreased. On
the Balance Sheet, accounts payable is a current
liability. When a cash disbursement is recorded,
the liability will be reduced.
-The greatest risk of misappropriation of funds
occurs in - =The greatest risk of misappropriation
, of funds occurs in accounts payable. This may
take the form of payments for goods not ordered
or received and to vendors that do not exist. The
risk can be reduced through supervision,
segregation of duties, independent verification, or
automated processes.
-In a firm with proper segregation of duties,
adequate supervision as a compensating control is
still necessary in - =In a firm with proper
segregation of duties, adequate supervision is
most critical in receiving. Every day materials
arrive on the receiving dock. Until those receipts
are recorded in the system, they are invisible to
anyone but the receivers and their supervisors.
Supervision is a compensating control appropriate
before more automated controls take effect.
Scanning technology and automated three-way
match are technological controls that reduce risk.
-The fixed asset system records the - =The fixed
asset system records the purchase of a new plant.
The fixed asset system records property, plant,
and equipment used in the operation of the
business. These represent the largest investments
of the firm.
-In a technology enabled payroll system,
Personnel, Time Keeping, Payroll, and Accounts
Payable connect to which department to pay
INFORMATION SYSTEMS/163
QUESTIONS AND ANSWERS
(A+)
Which of the following is a problem usually
associated with the flat-file approach to data
management? - =data redundancy
-Which problem is characteristically associated
with the flat-file approach to data management? -
=the inability to determine what data is available
-A description of the physical arrangement of
records in the database is - =the internal view.
-Which of the following may provide many distinct
views of the database? - =the user view
-The update anomaly in unnormalized tables -
=occurs because of data redundancy.
-The deletion anomaly in unnormalized tables -
=may result in the loss of important data.
-Which document triggers the revenue cycle? -
=the customer purchase order
,-Which department is least likely to be involved in
the revenue cycle? - =The accounts payable
department is least likely to be involved in the
revenue cycle. Accounts payable is charged with
managing the segment of the expenditure cycle
that involves payments to vendors and creditors.
-The purpose of the sales invoice is to - =The
purpose of the sales invoice is to bill the customer.
The sales invoice will be sent to the customer for
payment. At the same time the invoice will also
update inventory, send a journal to the general
ledger, and record the sales journal.
-Which type of control is considered a
compensating control for customer payments? -
=Supervision is a compensating control for
customer payments. Compensating controls are
put in place when more effective controls are
deemed too difficult or costly to implement.
Supervision is the simplest and most common
form of compensating control.
-Commercial accounting systems have fully
integrated modules. The word "integrated" means
that - =The word "integrated" means that the
transfer of information among modules occurs
automatically. In a fully integrated system, the
shipping advice will generate the request for
invoice automatically. This eliminates the risk that
,the invoice request is not processed or is
processed for a different amount.
-A copy of the purchase order (PO) is sent to the -
=A copy of the purchase order (PO) is sent to the
vendor. The purchase order is the formal
document that tells the vendor what material is
needed, at what price, in what quantity and on
what date.
-The departments involved in the purchasing
process are purchasing, receiving, inventory
control and - =The departments involved in the
purchasing process are purchasing, receiving,
inventory control and accounts payable. Accounts
payable completes the purchasing process by
authorizing and executing the cash disbursement
based on a signal from receiving or inventory
control.
-When a cash disbursement in payment of an
accounts payable is recorded - =When a cash
disbursement in payment of an accounts payable
is recorded the liability account is decreased. On
the Balance Sheet, accounts payable is a current
liability. When a cash disbursement is recorded,
the liability will be reduced.
-The greatest risk of misappropriation of funds
occurs in - =The greatest risk of misappropriation
, of funds occurs in accounts payable. This may
take the form of payments for goods not ordered
or received and to vendors that do not exist. The
risk can be reduced through supervision,
segregation of duties, independent verification, or
automated processes.
-In a firm with proper segregation of duties,
adequate supervision as a compensating control is
still necessary in - =In a firm with proper
segregation of duties, adequate supervision is
most critical in receiving. Every day materials
arrive on the receiving dock. Until those receipts
are recorded in the system, they are invisible to
anyone but the receivers and their supervisors.
Supervision is a compensating control appropriate
before more automated controls take effect.
Scanning technology and automated three-way
match are technological controls that reduce risk.
-The fixed asset system records the - =The fixed
asset system records the purchase of a new plant.
The fixed asset system records property, plant,
and equipment used in the operation of the
business. These represent the largest investments
of the firm.
-In a technology enabled payroll system,
Personnel, Time Keeping, Payroll, and Accounts
Payable connect to which department to pay
