TEST BANK FOR ACCOUNT-
ING 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
, 11. Program flowcharts are used to describe the logic represented in system flowcharts.
ANS: T PTS: 1
12. Batch processing systems can store data on direct access storage devices.
ANS: T PTS: 1
13. Selecting a specific record from a master file containing millions of records requires a direct access file
environment.
ANS: T PTS: 1
14. The box symbol represents a temporary file.
ANS: F PTS: 1
15. Auditors may prepare program flowcharts to verify the correctness of program logic.
ANS: T PTS: 1
16. A control account is a general ledger account which is supported by a subsidiary ledger.
ANS: T PTS: 1
17. The most significant characteristic of direct access files is access speed.
ANS: T PTS: 1
18. Real time processing is used for routine transactions in large numbers.
ANS: F PTS: 1
19. Batch processing is best used when timely information is needed because this method processes data
efficiently.
ANS: F PTS: 1
20. An inverted triangle with the letter “N” represents a file in “name” order.
ANS: F PTS: 1
21. Real-time processing in systems that handle large volumes of transactions each day can create
operational inefficiencies.
ANS: T PTS: 1
22. Operational inefficiencies occur because accounts unique to many concurrent transactions need to be
updated in real time.
ANS: F PTS: 1
ING 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
, 11. Program flowcharts are used to describe the logic represented in system flowcharts.
ANS: T PTS: 1
12. Batch processing systems can store data on direct access storage devices.
ANS: T PTS: 1
13. Selecting a specific record from a master file containing millions of records requires a direct access file
environment.
ANS: T PTS: 1
14. The box symbol represents a temporary file.
ANS: F PTS: 1
15. Auditors may prepare program flowcharts to verify the correctness of program logic.
ANS: T PTS: 1
16. A control account is a general ledger account which is supported by a subsidiary ledger.
ANS: T PTS: 1
17. The most significant characteristic of direct access files is access speed.
ANS: T PTS: 1
18. Real time processing is used for routine transactions in large numbers.
ANS: F PTS: 1
19. Batch processing is best used when timely information is needed because this method processes data
efficiently.
ANS: F PTS: 1
20. An inverted triangle with the letter “N” represents a file in “name” order.
ANS: F PTS: 1
21. Real-time processing in systems that handle large volumes of transactions each day can create
operational inefficiencies.
ANS: T PTS: 1
22. Operational inefficiencies occur because accounts unique to many concurrent transactions need to be
updated in real time.
ANS: F PTS: 1
