Expenditure Cycle & Audit Trail – Accounting Exam

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Expenditure Cycle & Audit Trail - Accounting Exam
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Expenditure Cycle, Audit Trail, Purchase Order, Credit Memo, Chart of Accounts

The key terms in these Finance chapters include Expenditure Cycle, Audit Trail, Purchase Order, Credit Memo, Chart of Accounts, Coding Technique, Alpha-Numeric


Which of the following documents would be found in the expenditure cycle?

delivery ticket

purchase orderCorrect

credit memo

time card


To be effective, the chart of accounts must

utilize only one coding technique.

begin with account 001.

contain sufficient detail.Correct

not use alpha-numeric characters.


Which statement below is true with regards to an audit trail?

An audit trail provides the means to check the accuracy and validity of ledger postings.Correct

An audit trail begins with the general journal.

An audit trail is a summary of recorded transactions.


Information is best described as

facts that are useful when processed in a timely manner.

raw facts about transactions.

Data that has been organized and processed so that it is meaningful to the user.Correct

the same thing as data.


Transaction cycles can be summarized on a high level as “give-get” transactions. An example of “give-get” in the revenue cycle would be

give cash, get goods.

give goods, get cash.Correct

give cash, get cash.

give cash, get labor.


Which of the following documents would be found in the expenditure cycle?

delivery ticket

purchase orderCorrect

credit memo

time card


To be effective, the chart of accounts must

utilize only one coding technique.

begin with account 001.

Contain sufficient detail.Correct

not use alpha-numeric characters.


Which statement below is true with regards to an audit trail?

An audit trail provides the means to check the accuracy and validity of ledger postings.Correct

An audit trail begins with the general journal.

An audit trail is a summary of recorded transactions.


Use the chart below to answer the following questions regarding flow chart symbols.


Which symbol would be used in a flowchart to represent a general ledger master file kept on magnetic disk?

#2

#8

#11

#7 – Correct


In which transaction cycle would information for inventory purchases be most likely to pass between internal and external accounting information systems?

the revenue cycle

the expenditure cycleCorrect

the human resources / payroll cycle

the financing cycle


The day after Christmas, Jane Olson, Chief Information Officer at American Trading Corporation (ATC), received some bad news. The hard drive use to store the company’s system data backups was lost while it was being transported to an offsite storage location. Jane called a meeting of her technical staff to discuss the implications of the loss. Which of the following is most likely to relieve her concerns over the potential cost of the loss?

ATC has a comprehensive disaster recovery plan.

The hard drive was encrypted and password protected.Correct

The shipper has insurance that will reimburse ATC for the cost of the hard drive.


A fraud technique that allows a hacker to place himself or herself between a client and a host to intercept network traffic is called the ________ technique.

man-in-the-middleCorrect

salami

Trojan horse

trap door


Redirecting traffic to a spoofed website to obtain confidential information is known as

pharming.Correct

cyber-bullying.

vishing.

hacking.


A system that creates logs of all network traffic that was permitted to pass the firewall and then analyzes those logs for signs of attempted or successful intrusions is called

intrusion detection systems.Correct

log analysis.

defense in depth.

continuous monitoring.


Identify one aspect of systems reliability that is not a source of concern with regards to a public cloud.

confidentiality

privacy

EfficiencyCorrect

availability


A well-known hacker started her own computer security consulting business. Many companies pay her to attempt to gain unauthorized access to their network. If she is successful, she offers advice as to how to design and implement better controls. What is the name of the testing for which the hacker is being paid?

Penetration test.Correct

Buffer overflow test.

Deep packet inspection

Vulnerability scan.


Which of the following documents would be found in the expenditure cycle?

delivery ticket

purchase orderCorrect

credit memo

time card


To be effective, the chart of accounts must

utilize only one coding technique.

begin with account 001.

Contain sufficient detail.Correct

not use alpha-numeric characters.


Which statement below is true with regards to an audit trail?

An audit trail provides the means to check the accuracy and validity of ledger postings.Correct

An audit trail begins with the general journal.

An audit trail is a summary of recorded transactions.


Identify one aspect of systems reliability that is not a source of concern with regards to a public cloud.

confidentiality

privacy

efficiencyCorrect

availability


A well-known hacker started her own computer security consulting business. Many companies pay her to attempt to gain unauthorized access to their network. If she is successful, she offers advice as to how to design and implement better controls. What is the name of the testing for which the hacker is being paid?

Penetration test.Correct

Buffer overflow test.

Deep packet inspection

Vulnerability scan.


Which statement below is true with regards to an audit trail?

An audit trail provides the means to check the accuracy and validity of ledger postings.Correct

An audit trail begins with the general journal.

An audit trail is a summary of recorded transactions.


In which transaction cycle would information for inventory purchases be most likely to pass between internal and external accounting information systems?

the revenue cycle

the expenditure cycleCorrect

the human resources / payroll cycle

the financing cycle


The day after Christmas, Jane Olson, Chief Information Officer at American Trading Corporation (ATC), received some bad news. The hard drive use to store the company’s system data backups was lost while it was being transported to an offsite storage location. Jane called a meeting of her technical staff to discuss the implications of the loss. Which of the following is most likely to relieve her concerns over the potential cost of the loss?

ATC has a comprehensive disaster recovery plan.

The hard drive was encrypted and password protected.Correct

The shipper has insurance that will reimburse ATC for the cost of the hard drive.


A fraud technique that allows a hacker to place himself or herself between a client and a host to intercept network traffic is called the ________ technique.

man-in-the-middleCorrect

salami

Trojan horse

trap door


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