Test Bank to Accompany Accounting: Building
Business Skills 4TH EDITION By Shirley Carlon,
Rosina Mladenovic and Chrisann Palm
Batch processing - answer-Processing more transactions at a lower unit cost
makes batch processing more efficient than real-time systems.
Conversion cycle - answer-The process of acquiring raw materials is part of the
conversion cycle.
Work-in-process - answer-Directing work-in-process through its various stages of
manufacturing is part of the conversion cycle.
Turn-around document - answer-The portion of the monthly bill from a credit
card company is an example of a turn-around document.
General journal - answer-The general journal is used to record recurring
transactions that are similar in nature.
Document flowcharts - answer-Document flowcharts are used to represent
systems at different levels of detail.
,Ledger Entry Order - answer-Entries made in the ledger are ordered by account
number.
General Journal Entry Order - answer-Entries made in the general journal are
ordered by date.
Special Journal - answer-A journal that is not used to record depreciation.
Subsidiary Ledger - answer-An account that is least likely to have a subsidiary
ledger is sales.
Real-time processing benefits - answer-Real-time processing would be most
beneficial in handling a firm's merchandise inventory.
Least suited accounting application to batch processing - answer-Sales order
processing is least suited to batch processing.
Best suited accounting application to batch processing - answer-Credit checking is
best suited to batch processing.
Improving operational efficiencies - answer-Operational efficiencies can be
improved by updating accounts unique to many concurrent transactions in real
time and updating common accounts in batch mode.
, Coding scheme for chart of accounts - answer-The coding scheme most
appropriate for a chart of accounts is block code.
Common use for sequential coding - answer-A common use for sequential coding
is identifying documents.
Advantage of sequential coding - answer-The most important advantage of
sequential coding is that missing or unrecorded documents can be identified.
Coding system conveying meaning - answer-When a firm wants its coding system
to convey meaning without reference to any other document, it would choose a
mnemonic code.
Advantage of alphabetic code - answer-The most important advantage of an
alphabetic code is that the capacity to represent items is increased.
Transaction cycles - answer-Two of the three transaction cycles are expenditure
cycle and revenue cycle.
Source documents - answer-Documents that are created at the beginning of the
transaction are called source documents.
Data processing approaches - answer-The two data processing approaches used
in modern systems are batch processing and real-time processing.
Data flow diagrams - answer-Data flow diagrams represent the physical system.
Business Skills 4TH EDITION By Shirley Carlon,
Rosina Mladenovic and Chrisann Palm
Batch processing - answer-Processing more transactions at a lower unit cost
makes batch processing more efficient than real-time systems.
Conversion cycle - answer-The process of acquiring raw materials is part of the
conversion cycle.
Work-in-process - answer-Directing work-in-process through its various stages of
manufacturing is part of the conversion cycle.
Turn-around document - answer-The portion of the monthly bill from a credit
card company is an example of a turn-around document.
General journal - answer-The general journal is used to record recurring
transactions that are similar in nature.
Document flowcharts - answer-Document flowcharts are used to represent
systems at different levels of detail.
,Ledger Entry Order - answer-Entries made in the ledger are ordered by account
number.
General Journal Entry Order - answer-Entries made in the general journal are
ordered by date.
Special Journal - answer-A journal that is not used to record depreciation.
Subsidiary Ledger - answer-An account that is least likely to have a subsidiary
ledger is sales.
Real-time processing benefits - answer-Real-time processing would be most
beneficial in handling a firm's merchandise inventory.
Least suited accounting application to batch processing - answer-Sales order
processing is least suited to batch processing.
Best suited accounting application to batch processing - answer-Credit checking is
best suited to batch processing.
Improving operational efficiencies - answer-Operational efficiencies can be
improved by updating accounts unique to many concurrent transactions in real
time and updating common accounts in batch mode.
, Coding scheme for chart of accounts - answer-The coding scheme most
appropriate for a chart of accounts is block code.
Common use for sequential coding - answer-A common use for sequential coding
is identifying documents.
Advantage of sequential coding - answer-The most important advantage of
sequential coding is that missing or unrecorded documents can be identified.
Coding system conveying meaning - answer-When a firm wants its coding system
to convey meaning without reference to any other document, it would choose a
mnemonic code.
Advantage of alphabetic code - answer-The most important advantage of an
alphabetic code is that the capacity to represent items is increased.
Transaction cycles - answer-Two of the three transaction cycles are expenditure
cycle and revenue cycle.
Source documents - answer-Documents that are created at the beginning of the
transaction are called source documents.
Data processing approaches - answer-The two data processing approaches used
in modern systems are batch processing and real-time processing.
Data flow diagrams - answer-Data flow diagrams represent the physical system.
