Sales Tax – Accounting And Finance Test
The key terms in these Finance chapters include accounting information system, Company Insurance, database management system, external-level schema, Data Definition Language, National Sales Tax, database management software (DBMS), workforce inventory, Internal Control Model’s component, Virtual Private Networks VPN.
Mary Lamb is an insurance sales representative. Her company has provided her with a laptop computer that uses wireless connectivity to access the accounting information system from virtually anywhere in the country. She has access to view customer and insurance product information. She also has access that allows her to enter and cancel customer orders. The permissions for Mary (and other sales reps) define a ________ in the company’s database management system.
conceptual-level schema
physical view
data dictionary
external-level schema – Correct
If a national sales tax were implemented, which language would be used to add a new field in the sales table to track the sales tax due?
Data Manipulation Language
Update Data Language
Data Definition Language – Correct
Data Query Language
The ________ handles the link between the way data are physically stored and each user’s logical view of that data.
data warehouse
data dictionary
database management software (DBMS) – Correct
database manager
A workforce inventory report
is used in preparing labor-related reports for government agencies. – Correct
is used to document compliance with applicable regulations.
used for employee information and annual payroll reports.
All of the following are controls that should be implemented in a payroll process, except
restrict access to blank payroll checks and documents.
supervisors distribute paychecks since they should know all employees in their department. – Correct
sequential numbering of paychecks and accounting for the numbers.
someone independent of the payroll process should reconcile the payroll bank account.
The principle of identifying and assessing changes that could significantly impact the system of internal control belongs to which of the COSO’s Internal Control Model’s component?
Information and communication.
Control environment.
Control activities.
Risk assessment. – Correct
Which of the following is not true regarding virtual private networks (VPN)?
Using VPN software to encrypt information while it is in transit over the Internet in effect creates private communication channels, often referred to as tunnels, which are accessible only to those parties possessing the appropriate encryption and decryption keys.
It is more expensive to reconfigure VPNs to include new sites than it is to add or remove the corresponding physical connections in a privately owned network.
VPNs provide the functionality of a privately owned network using the Internet.
Data matching is an example of a(n)
processing control. – Correct
data entry control.
data transmission control.
input control.
One of the basic activities in the expenditure cycle is the receiving and storage of goods, supplies, and services. What is the counterpart of this activity in the revenue cycle?
shipping function – Correct
cash payments activity
cash collection activity
sales order entry process
Which of the following controls can minimize the threat of errors in supplier invoices?
The use of positive pay.
Do not inform receiving employees about quantity ordered.
The use of ERS. – Correct
Perpetual inventory system.
Just-In-Time (JIT) inventory is best characterized by
frequent deliveries of smaller quantities of items to the work centers. – Correct
infrequent bulk deliveries of items directly to work centers.
less frequent deliveries of large quantities of goods to central receiving.
Mary Lamb is an insurance sales representative. Her company has provided her with a laptop computer that uses wireless connectivity to access the accounting information system from virtually anywhere in the country. She has access to view customer and insurance product information. She also has access that allows her to enter and cancel customer orders. The permissions for Mary (and other sales reps) define a ________ in the company’s database management system.
conceptual-level schema
physical view
data dictionary
external-level schema – Correct
If a national sales tax were implemented, which language would be used to add a new field in the sales table to track the sales tax due?
Data Manipulation Language
Update Data Language
Data Definition Language – Correct
Data Query Language
The ________ handles the link between the way data are physically stored and each user’s logical view of that data.
data warehouse
data dictionary
database management software (DBMS) – Correct
database manager
A workforce inventory report
is used in preparing labor-related reports for government agencies. – Correct
is used to document compliance with applicable regulations.
used for employee information and annual payroll reports.
All of the following are controls that should be implemented in a payroll process, except
restrict access to blank payroll checks and documents.
supervisors distribute paychecks since they should know all employees in their department. – Correct
sequential numbering of paychecks and accounting for the numbers.
someone independent of the payroll process should reconcile the payroll bank account.
The principle of identifying and assessing changes that could significantly impact the system of internal control belongs to which of the COSO’s Internal Control Model’s component?
Information and communication.
Control environment.
Control activities.
Risk assessment. – Correct
Which of the following is not true regarding virtual private networks (VPN)?
Using VPN software to encrypt information while it is in transit over the Internet in effect creates private communication channels, often referred to as tunnels, which are accessible only to those parties possessing the appropriate encryption and decryption keys.
It is more expensive to reconfigure VPNs to include new sites than it is to add or remove the corresponding physical connections in a privately owned network.
VPNs provide the functionality of a privately owned network using the Internet.
Data matching is an example of a(n)
processing control. – Correct
data entry control.
data transmission control.
input control.
One of the basic activities in the expenditure cycle is the receiving and storage of goods, supplies, and services. What is the counterpart of this activity in the revenue cycle?
shipping function – Correct
cash payments activity
cash collection activity
sales order entry process
Which of the following controls can minimize the threat of errors in supplier invoices?
The use of positive pay.
Do not inform receiving employees about quantity ordered.
The use of ERS. – Correct
Perpetual inventory system.
Just-In-Time (JIT) inventory is best characterized by
frequent deliveries of large quantities to be held at the work centers.
frequent deliveries of smaller quantities of items to the work centers. – Correct
infrequent bulk deliveries of items directly to work centers.
less frequent deliveries of large quantities of goods to central receiving.