TEST BANK FOR ACCOUN T-
ING INFORMATION SYST EMS 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 mon thly 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 f lowcharts 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 containin g 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 transact ions 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 SYST EMS 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 mon thly 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 f lowcharts 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 containin g 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 transact ions 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
