WGU D217 COMPREHENSIVE QUESTIONS AND
ANSWERS SURE A+
✔✔An important reconciliation in the payroll system is - ✔✔An important reconciliation
in the payroll system is that the general ledger compares the labor distribution summary
from cost accounting to the disbursement voucher from accounts payable. Cost
accounting will be tracking the job tickets to properly account for work in process.
Accounts payable will produce a disbursement voucher based on input from timecards.
Job tickets and timecards should match when hours and hourly rates are extended.
✔✔Which of the following situations represents an internal control weakness? - ✔✔The
distribution of paychecks by the employees' immediate supervisor is an internal control
weakness. Paychecks should go directly to employees either by mail or through direct
deposit. Giving the responsibility for distribution to the supervisor creates the possibility
of loss, theft, or withholding of pay from an employee that the supervisor simply does
not like. An additional risk arises if the employee is absent on payday and the
supervisor has no secure storage for the check until the employee is back.
✔✔Which of the following is NOT a reasonable control for fixed assets? - ✔✔Requiring
that fully depreciated assets be disposed of immediately is not a reasonable control for
fixed assets. Fully depreciated assets may have years of useful life remaining. For
example, manufacturing machinery may be depreciated over three years but many
factories use machines that are 10, 15, or 20 years old if they are well maintained.
✔✔What type of data is found in the general ledger master file? - ✔✔Balances for each
account in the chart of accounts are found in the general ledger master file. The text
describes the general ledger file as the information hub for the accounting system. Each
record in the general ledger master file corresponds with one of the accounts in the
chart of accounts. Each record is either a GL Master account (i.e., Sales) or a control
account (i.e. Accounts Receivables control)
✔✔Which report is an output of the financial reporting system (FRS)? - ✔✔A
comparative balance sheet is an output of the financial reporting system. The law
,requires that corporations generate a series of financial reports - Income Statement,
Balance Sheet, Statement of Cash Flows, Tax Returns, and others. This requirement is
met by the financial reporting system.
✔✔A characteristic of the management reporting system (MRS) is - ✔✔The
management reporting system (MRS) focuses on internal decision-making information.
The MRS is the source for reports that managers will use to analyze business
performance such as variance analysis, production efficiency, sales, and purchases.
✔✔Big data analytics are characterized by - ✔✔Big data analytics are characterized by
volume, velocity, and variety of data. These are referred to as the three Vs: extreme
volumes of data (megabytes, terabytes, petabytes, etc.), the rapid velocity at which the
data must be processed (particularly in applications involving machine learning and
artificial intelligence), and the wide variety of structured and unstructured data types that
need to be integrated (audio, video, external web data, social media, the financial
reporting system, the management reporting system).
✔✔What function does prescriptive analytics serve? - ✔✔Prescriptive analytics tells the
user what actions should be taken in response to specific questions. For example, some
companies use predictive analytics to optimize trade promotions. Prescriptive analytics
helps them determine which campaigns to run and for which products.
✔✔Which item reflects vital information such as quantities and unit prices? - ✔✔The
sales order contains vital information such as unit prices and quantities.
✔✔How do inventory control functions adjust inventory at the time of a return? - ✔✔An
approved credit memo triggers the system to adjust the inventory when items are
returned.
✔✔Which risk is associated with charge accounts within the revenue cycle? - ✔✔The
clerk can be careless and allow purchases from individuals who do not pay their bills.
✔✔Which function reflects the expenditure cycle? - ✔✔Inventory is a part of the
expenditure cycle because the quantities and condition are updated.
✔✔What is the purpose of the blind copy? - ✔✔The blind copy is used to force the clerk
to count contents to verify items match.
✔✔Which items reflect fixed assets? - ✔✔Buildings can sold and converted to cash.
✔✔What contributes to the success of the electronic data interchange system? -
✔✔Implementation of agreements contributes to the success by circumventing
discrepancies.
, ✔✔What is an example of a payroll system information technology (IT) control? -
✔✔Direct deposit is an example of an IT control.
✔✔Which department is responsible for receiving the supplier's invoice, the purchase
order, and the receiving report in order to post the acquisition of fixed assets? -
✔✔Accounts Payable receives the supplier's invoice, purchase order, and receiving
report to post the acquisition of fixed assets in the accounts payable subledger.
✔✔Which information from timecards provides an audit trail to support financial
reporting? - ✔✔Payroll expenses should be supported with hours worked by employees
on a specified date.
✔✔Why are journal vouchers reviewed and approved before entry into the general
ledger (GL)? - ✔✔Journal vouchers are entered into the GL and require a level of
review and approval to ensure information is accurate, complete, authorized, and
supported.
✔✔Why is a management reporting system a control? - ✔✔Management reporting
systems are implemented at the discretion of organization management based on
internal user needs to manage and control business activities.
✔✔Why is the general ledger history file used for comparative financial reports? -
✔✔The same format and account structures allow for transactions to be grouped and
categorized consistently from year to year.
✔✔Which comparison serves as a tool for managers by using data from the budget
master file and from the responsibility center file? - ✔✔A comparison of budgeted
amounts in accounts to actual revenue and expense amounts by responsibility center in
accounts can signal accounts that require further inquiry.
✔✔Which strategic agreement is made between buyer and seller for electronic data
interchange? - ✔✔The strategic agreement of the electronic data interchange
technology has specific terms agreed on prior to utilization of the service.
✔✔What is a reason for sales returns? - ✔✔Late deliveries can affect sales returns.
✔✔Which risk is associated with charge accounts within the revenue cycle? - ✔✔The
clerk can be careless and allow purchases from individuals who do not pay their bills.
✔✔What is a risk associated with one clerk receiving inventory? - ✔✔Unauthorized
purchases can cause excessive inventory and tie up funds.
ANSWERS SURE A+
✔✔An important reconciliation in the payroll system is - ✔✔An important reconciliation
in the payroll system is that the general ledger compares the labor distribution summary
from cost accounting to the disbursement voucher from accounts payable. Cost
accounting will be tracking the job tickets to properly account for work in process.
Accounts payable will produce a disbursement voucher based on input from timecards.
Job tickets and timecards should match when hours and hourly rates are extended.
✔✔Which of the following situations represents an internal control weakness? - ✔✔The
distribution of paychecks by the employees' immediate supervisor is an internal control
weakness. Paychecks should go directly to employees either by mail or through direct
deposit. Giving the responsibility for distribution to the supervisor creates the possibility
of loss, theft, or withholding of pay from an employee that the supervisor simply does
not like. An additional risk arises if the employee is absent on payday and the
supervisor has no secure storage for the check until the employee is back.
✔✔Which of the following is NOT a reasonable control for fixed assets? - ✔✔Requiring
that fully depreciated assets be disposed of immediately is not a reasonable control for
fixed assets. Fully depreciated assets may have years of useful life remaining. For
example, manufacturing machinery may be depreciated over three years but many
factories use machines that are 10, 15, or 20 years old if they are well maintained.
✔✔What type of data is found in the general ledger master file? - ✔✔Balances for each
account in the chart of accounts are found in the general ledger master file. The text
describes the general ledger file as the information hub for the accounting system. Each
record in the general ledger master file corresponds with one of the accounts in the
chart of accounts. Each record is either a GL Master account (i.e., Sales) or a control
account (i.e. Accounts Receivables control)
✔✔Which report is an output of the financial reporting system (FRS)? - ✔✔A
comparative balance sheet is an output of the financial reporting system. The law
,requires that corporations generate a series of financial reports - Income Statement,
Balance Sheet, Statement of Cash Flows, Tax Returns, and others. This requirement is
met by the financial reporting system.
✔✔A characteristic of the management reporting system (MRS) is - ✔✔The
management reporting system (MRS) focuses on internal decision-making information.
The MRS is the source for reports that managers will use to analyze business
performance such as variance analysis, production efficiency, sales, and purchases.
✔✔Big data analytics are characterized by - ✔✔Big data analytics are characterized by
volume, velocity, and variety of data. These are referred to as the three Vs: extreme
volumes of data (megabytes, terabytes, petabytes, etc.), the rapid velocity at which the
data must be processed (particularly in applications involving machine learning and
artificial intelligence), and the wide variety of structured and unstructured data types that
need to be integrated (audio, video, external web data, social media, the financial
reporting system, the management reporting system).
✔✔What function does prescriptive analytics serve? - ✔✔Prescriptive analytics tells the
user what actions should be taken in response to specific questions. For example, some
companies use predictive analytics to optimize trade promotions. Prescriptive analytics
helps them determine which campaigns to run and for which products.
✔✔Which item reflects vital information such as quantities and unit prices? - ✔✔The
sales order contains vital information such as unit prices and quantities.
✔✔How do inventory control functions adjust inventory at the time of a return? - ✔✔An
approved credit memo triggers the system to adjust the inventory when items are
returned.
✔✔Which risk is associated with charge accounts within the revenue cycle? - ✔✔The
clerk can be careless and allow purchases from individuals who do not pay their bills.
✔✔Which function reflects the expenditure cycle? - ✔✔Inventory is a part of the
expenditure cycle because the quantities and condition are updated.
✔✔What is the purpose of the blind copy? - ✔✔The blind copy is used to force the clerk
to count contents to verify items match.
✔✔Which items reflect fixed assets? - ✔✔Buildings can sold and converted to cash.
✔✔What contributes to the success of the electronic data interchange system? -
✔✔Implementation of agreements contributes to the success by circumventing
discrepancies.
, ✔✔What is an example of a payroll system information technology (IT) control? -
✔✔Direct deposit is an example of an IT control.
✔✔Which department is responsible for receiving the supplier's invoice, the purchase
order, and the receiving report in order to post the acquisition of fixed assets? -
✔✔Accounts Payable receives the supplier's invoice, purchase order, and receiving
report to post the acquisition of fixed assets in the accounts payable subledger.
✔✔Which information from timecards provides an audit trail to support financial
reporting? - ✔✔Payroll expenses should be supported with hours worked by employees
on a specified date.
✔✔Why are journal vouchers reviewed and approved before entry into the general
ledger (GL)? - ✔✔Journal vouchers are entered into the GL and require a level of
review and approval to ensure information is accurate, complete, authorized, and
supported.
✔✔Why is a management reporting system a control? - ✔✔Management reporting
systems are implemented at the discretion of organization management based on
internal user needs to manage and control business activities.
✔✔Why is the general ledger history file used for comparative financial reports? -
✔✔The same format and account structures allow for transactions to be grouped and
categorized consistently from year to year.
✔✔Which comparison serves as a tool for managers by using data from the budget
master file and from the responsibility center file? - ✔✔A comparison of budgeted
amounts in accounts to actual revenue and expense amounts by responsibility center in
accounts can signal accounts that require further inquiry.
✔✔Which strategic agreement is made between buyer and seller for electronic data
interchange? - ✔✔The strategic agreement of the electronic data interchange
technology has specific terms agreed on prior to utilization of the service.
✔✔What is a reason for sales returns? - ✔✔Late deliveries can affect sales returns.
✔✔Which risk is associated with charge accounts within the revenue cycle? - ✔✔The
clerk can be careless and allow purchases from individuals who do not pay their bills.
✔✔What is a risk associated with one clerk receiving inventory? - ✔✔Unauthorized
purchases can cause excessive inventory and tie up funds.
