Kristelle B.

Moyano
BSA 3A
MULTIPLE CHOICE

d 1. Which of the following is not a business resource?

a. raw material
b. labor
c. information
d. all are business resources
b 2. Which level of management is responsible for short-term planning and coordination of activities
necessary to accomplish organizational objectives?
a. operations management
b. middle management
c. top management
d. line management
c 3. Which level of management is responsible for controlling day-to-day operations?
a. top management
b. middle management
c. operations management
d. executive management
c 4. Location-independent computing in which shared data centers deliver hosted IT services over the
Internet.
a. IT outsourcing
b. Network administration
c. Cloud computing
d. Custom software
c 5. The value of information for users is determined by all of the following but
a. Reliability
b. Relevance
c. convenience
d. completeness
c 6. An example of a nonfinancial transaction is
a. sale of products
b. cash disbursement
c. log of customer calls
d. purchase of inventory

a 7. An example of a financial transaction is

a. the purchase of computer
b. a supplier’s price list
c. a delivery schedule
d. an employee benefit brochure
b 8. Which subsystem is not part of the Accounting Information System?
a. Transaction Processing System
b. Expert System
c. General Ledger/Financial Reporting System
d. Management Reporting System
 a 9. The major difference between the Financial Reporting System (FRS) and the Management Reporting
System (MRS) is the
a. FRS provides information to internal and external users; the MRS provides information to
internal users
b. FRS provides discretionary information; the MRS provides nondiscretionary information
c. FRS reports are prepared using information provided by the General Ledger System; the
MRS provides information to the General Ledger System
d. FRS reports are prepared in flexible, nonstandardized formats; the MRS reports are
prepared in standardized, formal formats
d 10. The purpose of the Transaction Processing System includes all of the following except
a. converting economic events into financial transactions
b. recording financial transactions in the accounting records
c. distributing essential information to operations personnel to support their daily operations
d. measuring and reporting the status of financial resources and the changes in those
resources
b 11. The Transaction Processing System includes all of the following cycles except
a. the revenue cycle
b. the administrative cycle
c. the expenditure cycle
d. the conversion cycle

a 12. The primary input to the Transaction Processing System is

a. a financial transaction
b. an accounting record
c. an accounting report
d. a nonfinancial transaction

c 13. When designing the data collection activity, which type of data should be avoided?
a. data that is relevant
b. data that is efficient
c. data that is redundant
d. data that is accurate
d 14. The most basic element of useful data in the database is
a. the record
b. the key
c. the file
d. the attribute
c 15. In a database, a complete set of attributes for a single occurrence of an entity class is called
a. a key
b. a file
c. a record
d. a character
d 16. Effective information has all of the following characteristics except
a. relevance
b. completeness
c. summarization
 d. structure
a 17. Database management tasks do not include
a. summarization
b. storage
c. retrieval
d. deletion
a 18. The author distinguishes between the Accounting Information System and the management Information
System based on
a. whether the transactions are financial or nonfinancial
b. whether discretionary or nondiscretionary reports are prepared
c. the end users of the reports
d. the organizational structure of the business
d 19. Which activity is not part of the finance function?
a. cash receipts
b. portfolio management
c. credit
d. general ledger
c 20. Market research and advertising are part of which business function?
a. materials management
b. finance
c. marketing
d. production
b 21. Which function manages the financial resources of the firm through portfolio management, banking,
credit evaluation, and cash receipts and disbursements?
a. accounting
b. finance
c. materials management
d. distribution
d 22. Which of the following is not part of the accounting function?
a. managing the financial information resource of the firm
b. capturing and recording transactions in the database
c. distributing transaction information to operations personnel
d. managing the physical information system of the firm
b 23. The term “accounting independence” refers to
a. data integrity
b. separation of duties, such as record keeping and custody of physical resources
c. generation of accurate and timely information
d. business segmentation by function
d 24. In the distributed data processing approach
a. computer services are consolidated and managed as a shared organization resource
b. the computer service function is a cost center
c. the end users are billed using a charge-back system
d. computer services are organized into small information processing units under the control
of end users
c 25. Which of the following is not a cloud computing service?
 a. Software as a service
b. Infrastructure as a service
c. Network as a service
d. Platform as a service

c 26. Which system is not part of the expenditure cycle?

a. cash disbursements
b. Payroll
c. production planning/control
d. purchases/accounts payable

d 27. Which system produces information used for inventory valuation, budgeting, cost control, performance
reporting, and make-buy decisions?
a. sales order processing
b. purchases/accounts payable
c. cash disbursements
d. cost accounting

a 28. Which of the following is a turn-around document?

a. remittance advice
b. sales order
c. purchase order
d. payroll check

b 29. the order of the entries made in the ledger is by

a. transaction number
b. account number
c. Date
d. User

a 30. The order of the entries made in the general journal is by

a. Date
b. account number
c. User
d. customer number

c 31. In general, a special journal would not be used to record

a. sales
b. cash disbursements
c. depreciation
d. purchases

a 32. Which account is least likely to have a subsidiary ledger?

a. sales
b. accounts receivable
c. fixed assets
d. inventory

a 33. Subsidiary ledgers are used in manual accounting environments. What file is comparable to a subsidiary
ledger in a computerized environment?
 a. archive file
b. reference file
c. transaction file
d. master file
c 34. A journal is used in manual accounting environments. What file is comparable to a journal in a
computerized environment?
a. archive file
b. reference file
c. transaction file
d. master file

c 35. In a computerized environment, a list of authorized suppliers would be found in the

a. master file
b. transaction file
c. reference file
d. archive file

d 36. Which of the following is an archive file?

a. an accounts payable subsidiary ledger
b. a cash receipts file
c. a sales journal
d. a file of accounts receivable that have been written off

c 37. Which document is not a type of source document?

a. a sales order
b. an employee time card
c. a paycheck
d. a sales return receipt

a 38. The most important purpose of a turnaround document is to

a. serve as a source document
b. inform a customer of the outstanding amount payable
c. provide an audit trail for the external auditor
d. inform the bank of electronic funds deposits

a 39. Which type of graphical documentation represents systems at different levels of detail?
a. data flow diagram
b. document flowchart
c. system flowchart
d. program flowchart

a 40. Data flow diagrams

a. depict logical tasks that are being performed, but not who is performing them
b. illustrate the relationship between processes, and the documents that flow between them
and trigger activities
c. represent relationships between key elements of the computer system
d. describe in detail the logic of the process

b 41. System flowcharts

a. depict logical tasks that are being performed, but not who is performing them
b. illustrate the relationship between database entities in systems.
 c. represent relationships between key elements of both manual and computer systems.
d. describe the internal logic of computer applications in systems. .

b 42. When determining the batch size, which consideration is the least important?
a. achieving economies by grouping together large numbers of transactions
b. complying with legal mandates
c. providing control over the transaction process
d. balancing the trade-off between batch size and error detection

a 43. In contrast to a real-time system, in a batch processing system

a. there is a lag between the time when the economic event occurs and the financial records
are updated
b. relatively more resources are required
c. a greater resource commitment per unit of output is required
d. processing takes place when the economic event occurs

d 44. In contrast to a batch processing system, in a real-time system

a. a lag occurs between the time of the economic event and when the transaction is recorded
b. relatively fewer hardware, programming, and training resources are required
c. a lesser resource commitment per unit of output is required
d. processing takes place when the economic event occurs

c 45. The type of transaction most suitable for batch processing is

a. airline reservations
b. credit authorization
c. payroll processing
d. adjustments to perpetual inventory

d 46. The type of transaction most suitable for real-time processing is

a. recording fixed asset purchases
b. recording interest earned on long-term bonds
c. adjusting prepaid insurance
d. recording a sale on account

a 47. A(n) ________ structure employs an algorithm that converts the primary key of a record directly into a
storage address.
a. hashing
b. indexed
c. pointer
d. sequential

b 48. Both the revenue and the expenditure cycle can be viewed as having two key parts. These are
a. manual and computerized
b. physical and financial
c. input and output
d. batch and real-time

c 49. All of the following can provide evidence of an economic event except
a. source document
b. turn-around document
 c. master document
d. product document

d 50. An entity is
a. a physical resource
b. an event
c. an agent
d. all of the above are entities

The End!