Turnaround Documents – Accounting And Finance Test

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Turnaround Documents, Business Transaction, Source Documents, Specialized Journal

The key terms in these Finance chapters include Turnaround Documents, Customers, Suppliers, Business Transaction, Source Documents, Specialized Journal


Documents that are sent to customers or suppliers and then sent back to the company in the course of a business transaction are known as

turnaround documents.Correct

input documents.

source documents.

transaction documents.


The type of journal that records large numbers of repetitive transactions such as sales, cash receipts, and cash disbursements is

a detailed transaction journal.

a specialized journal.Correct

a subsidiary journal.

a general journal.


The general ledger

simplifies the process of recording large numbers of repetitive transactions.

is used to record infrequent or non-routine transactions.

contains summary-level data for every account of the organization.Correct

records all detailed data for any general ledger account that has individual sub-accounts.


Which of the following statements below shows the contrast between data and information?

Data and information are the same.

The Data is the primary output of an accounting information system.

Data is more useful in decision making than information.

Information is the primary output of an accounting information system.Correct


Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If information can help reduce uncertainty, improves decision making, or confirms or corrects prior expectations, it is representative of the characteristic of

complete.

reliability.

truthful.

relevance.Correct

In 2015, Singh Manufacturing implemented a Web-based information system that allows all employees to access mission-critical information. The intention was to increase production efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and costs increased. Shaman Gupta, the director of information technology services, asked Ashlee Wells to come in and talk with him about the system. Ashlee is a long-time employee of Singh, and her opinion is valued by her peers and by her supervisor. “So Ashlee, how’s it going down there in the shop?”

“Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan production. Now, we got that computer system. Most of the time we can’t get all of the information that we need. Is there some way to print out a list that has everything that we need?” Shaman thought for a while before responding. “Well, Ashlee, to tell you the truth, I’m not so sure how to do it myself, but there must be a way. We’ll bring in the consultants that helped us build the system. Maybe they can help.”
Which of the following characteristics of useful information is absent in the situation described above?

relevant

reliable

completeCorrect

timely

understandable

verifiable

accessible


Documents that are sent to customers or suppliers and then sent back to the company in the course of a business transaction are known as

turnaround documents.Correct

input documents.

source documents.

transaction documents.


The type of journal that records large numbers of repetitive transactions such as sales, cash receipts, and cash disbursements is

a detailed transaction journal.

a specialized journal.Correct

a subsidiary journal.

a general journal.


The general ledger

simplifies the process of recording large numbers of repetitive transactions.

is used to record infrequent or non-routine transactions.

contains summary-level data for every account of the organization.Correct

records all detailed data for any general ledger account that has individual sub-accounts.


Identify the primary means of protecting data stored in a cloud from unauthorized access.

virtualization

securitization

authorization

authenticationCorrect

Virtualization refers to the ability of

using the Internet to perform all needed system functions.

eliminating the need for a physical computer.

using web-based security to protect an organization.

running multiple systems simultaneously on one physical computer.Correct


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

Which of the following is an example of output fraud?

A man used desktop publishing to prepare bills for office supplies that were never ordered or delivered and mailed them to local companies. The invoices were for less than $300, an amount that often does not require purchase orders or approvals. A high percentage of the companies paid the bills.

Two accountants without the appropriate access rights hacked into Cisco’’s stock option system, transferred over $6.3 million of Cisco stock to their brokerage accounts, and sold the stock. They used part of the funds to support an extravagant lifestyle, including a $52,000 Mercedes-Benz, a $44,000 diamond ring, and a $20,000 Rolex watch.

The office manager of a Wall Street law firm sold information to friends and relatives about prospective mergers and acquisitions found in Word files. They made several million dollars trading the securities.

A fraud perpetrator scanned a company paycheck, used desktop publishing software to erase the payee and amount, and printed fictitious paychecks.Correct


Why is computer fraud often much more difficult to detect than other types of fraud?

Because most perpetrators do not spend their illegal income immediately, concealing key evidence.

Most computer criminals are older and more cunning than perpetrators of other types of fraud.

Because fraud can be committed in only seconds, leaving little-to-no evidence.Correct

Because perpetrators usually only steal immaterial amounts of money at a time, requiring a long period of time to pass before discovery


Which of the following is not a way to improve fraud detection?

Install fraud detection software.

Employ a computer security officer.

Implement a fraud hotline.

Implement computer-based controls over input, processing, storage, and output activities.Correct


In 2015, Singh Manufacturing implemented a Web-based information system that allows all employees to access mission-critical information. The intention was to increase production efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and costs increased. Shaman Gupta, the director of information technology services, asked Ashlee Wells to come in and talk with him about the system. Ashlee is a long-time employee of Singh, and her opinion is valued by her peers and by her supervisor.
“So Ashlee, how’s it going down there in the shop?”

“Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan production. Now, we got that computer system. Most of the time we can’t get all of the information that we need. Is there some way to print out a list that has everything that we need?”
Shaman thought for a while before responding. “Well, Ashlee, to tell you the truth, I’m not so sure how to do it myself, but there must be a way. We’ll bring in the consultants that helped us build the system. Maybe they can help.”
Which of the following characteristics of useful information is absent in the situation described above?

relevant

reliable

completeCorrect

timely

understandable

verifiable

accessible


Who bears the responsibility for information security in an organization?

CIO.

CISO.Correct

COO.

CFO.


Identify the primary means of protecting data stored in a cloud from unauthorized access.

virtualization

securitization

authorization

authenticationCorrect


Virtualization refers to the ability of

using the Internet to perform all needed system functions.

eliminating the need for a physical computer.

using web-based security to protect an organization.

running multiple systems simultaneously on one physical computer.Correct


Documents that are sent to customers or suppliers and then sent back to the company in the course of a business transaction are known as

turnaround documents.Correct

input documents.

source documents.

transaction documents.


The type of journal that records large numbers of repetitive transactions such as sales, cash receipts, and cash disbursements is

a detailed transaction journal.

a specialized journal.Correct

a subsidiary journal.

a general journal.


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