Chapter 2 Flashcards - Quizlet

3/22/22, 10:56 PM Chapter 2 Flashcards | Quizlet
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Chapter 2
Terms in this set (57)
Multiple Choice 1
a. Data collection
Which of the following is NOT a
step in the data processing
cycle?
a. Data collection
b. Data input
c. Data storage
d. Data processing
Multiple Choice 2
b. Online, real-time processing
Recording and processing
information about a transaction
at the time it occurs is referred
to as which of the following?
a. Batch processing
b. Online real-time processing
c. Captured transaction
processing
d. Chart of accounts
processing
Chapter 2
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Multiple Choice 3
d. The order in which they appear in financial
How does the chart of statements
accounts list general ledger
accounts?
a. Alphabetical order
b. Chronological order
c. Size order
d. The order in which they

appear in financial statements
Multiple Choice 4
c. Recording
Which one below is not a type
of data processing activity?
a. Creating
b. Updating
c. Recording
d. Reading
Multiple Choice 5 d. Simplicity and reduced costs

Which of the following is NOT
an advantage of an ERP
system?
a. Better access control
b. Standardization of
procedures and reports
c. Improved monitoring
capabilities
d. Simplicity and reduced costs
Chapter 2
Multiple Choice 6
a. a business activity
Which of the following
commonly initiates the data
input process?
a. a business activity
b. automatic batch processing
c. an accounting department
source document
d. a trial balance query
Multiple Choice 7
a. A copy of the company's financial statements.
Which of the following is not
considered a source
document?
a. A copy of the company's

financial statements.
b. A copy of the company's

shipping document.
c. A copy of the company's

sales journal.
d. A copy of the company's

ledger.
Chapter 2
Multiple Choice 8
A) revenue cycle.
John Pablo works in the
accounting department of a
multinational manufacturing
company. His job includes
updating accounts receivable
based on sales orders and
remittance advices. His
responsibilities are part of the
company's
A) revenue cycle.
B) expenditure cycle.
C) financing cycle.
D) production cycle.
Multiple Choice 9
John Pablo works in the
accounting department of a
multinational manufacturing
company. His job includes
updating accounts payable
based on purchase orders and
checks. His responsibilities are
part of the company's
A) revenue cycle.
C) financing cycle.
Chapter 2
Multiple Choice 10
A) revenue cycle.
Many small businesses choose
to outsource their payroll
activities to firms that
specialize in providing payroll
services. Dolores Yu operates a
payroll processing business in
Calabasas California. When she
sends bills out to her clients
her work is part of her firm's
A) revenue cycle.
C) financing cycle.
Multiple Choice 11
A) purchases journal/ expenditure cycle
A delivery of inventory from a
vendor with whom a credit line
is already established would
be initially recorded in which
type of accounting record and
as part of what transaction
cycle?
A) purchases journal/
expenditure cycle
B) general journal/ expenditure

cycle
C) general ledger/ expenditure

cycle
D) cash disbursements journal/

production cycle
Chapter 2
Multiple Choice 12
D) cash disbursements journal/ expenditure cycle
Making payments to a vendor
with whom a credit line is
already established would be
initially recorded in which type
of accounting record and as
part of what transaction cycle?
A) purchases journal/
expenditure cycle
B) general journal/ expenditure

cycle
C) general ledger/ expenditure

cycle
D) cash disbursements journal/

expenditure cycle
Multiple Choice 13
A) data input, data storage, data processing,
Identify the four parts of the information output
transaction processing cycle.
A) data input/ data storage/

data processing/ information
output
B) data input/ data recall/ data

processing/ information output
C) data input/ data recall/ data

transmission/ information
output
D) data input/ data recall/ data

transmission/ data storage
Chapter 2
Multiple Choice 14
C) using
Identify the item below that is
not one of the four different
types of data processing
activities.
A) creating
B) reading
C) using
D) deleting
Multiple Choice 15
A) output
What is the final step in the
data processing cycle?
A) output
B) storage
C) processing
D) input
Multiple Choice 16
D) input
What is the first step in the data
processing cycle?
A) output
B) storage
C) processing
D) input
Chapter 2
Multiple Choice 17
D) summarizes the transactions in journals.
The general ledger
A) summarizes the information

on the trial balance.
B) is posted in total to the

general journal.
C) only includes balance sheet

accounts.
D) summarizes the transactions

in journals.
Multiple Choice 18
B) receiving report.
Common source documents
for the revenue cycle include
all of the following except
A) sales order.
B) receiving report.
C) delivery ticket.
D) credit memo.
Multiple Choice 19
C) all transactions have been recorded.
Pre-numbering of shipping
documents helps to verify that
A) documents have been used

in order.
B) company policies were

followed.
C) all transactions have been
recorded.
D) source data automation was

used to capture data.
Chapter 2
Multiple Choice 20
C) capturing data on source documents
In transaction processing,
generally which activity comes
first?
A) recording data in a journal
B) posting items to special

journals
C) capturing data on source

documents
D) recording data in a general

ledger
Multiple Choice 21
D) sequentially numbered sales invoices
Build Smarts is a supplier of
building materials to more than
150 builders in the state of
Illinois. What is the best way for
Build Smarts to ensure that all
sales are recorded?
A) well-designed paper forms
B) source data automation
C) turnaround documents
D) sequentially numbered sales

invoices
Chapter 2
Multiple Choice 22
A) using devices to capture transaction data in
Source data automation refers machine-readable form at the time the transaction is
to
initiated.
A) using devices to capture
transaction data in machine-
readable form at the time the
transaction is initiated.
B) using the internet as the

operating platform of an
accounting information system.
C) using an accounting
information system to
electronically bill customers.
D) using an accounting
information system to
automate a previously manual
transaction process.
Multiple Choice 23
D) Processing.
What is the second step in the
data processing cycle?
A) Input.
B) Output.
C) Storage.
D) Processing.
Chapter 2
Multiple Choice 24
B) Debits and credits in the subsidiary ledger must
Identify the statement below always equal.
that is not true with regards to
the accounts receivable
subsidiary ledger.
A) Every credit sale is entered

individually into the subsidiary
ledger.
B) Debits and credits in the

subsidiary ledger must always
equal.
C) The subsidiary ledgers play

an important role in
maintaining the accuracy of the
data stored in the AIS.
D) The total of the subsidiary

ledgers must equal the control
account.
Multiple Choice 25
A) sequence codes.
Pre-numbered shipping
documents and pre-numbered
invoices are examples of
A) sequence codes.
B) block codes.
C) group codes.
D) mnemonic codes.
Chapter 2
Multiple Choice 26
B) a list of financial statement accounts.
The chart of accounts of a fast-
food restaurant would
probably include
A) a list of vendors.
B) a list of financial statement

accounts.
C) a list of customers.
D) a list of employees.
Multiple Choice 27
D) contains summary-level data for every account of
The general ledger
the organization.
A) is used to record infrequent
or non-routine transactions.
B) simplifies the process of

recording large numbers of
repetitive transactions.
C) records all detailed data for

any general ledger account
that has individual sub-
accounts.
D) contains summary-level data

for every account of the
organization.
Multiple Choice 28
D) transaction file
Which of the following is
conceptually similar to a
journal in a manual AIS?
A) database
B) master file
C) record
D) transaction file
Chapter 2
Multiple Choice 29
D) record.
Anita Carmie is the largest
collector and retailer of
Japanese fans in the St. Louis
area. Anita uses computer
technology to provide superior
customer service. The store's
database system was designed
to make detailed information
about each Japanese fan easily
accessible to her customers.
Accordingly, the fan price and
condition are provided for
each fan, along with many
pictures of each fan. In Antia's
database, the data about each
Japanese fan represents a(n)
A) entity.
B) attribute.
C) field.
D) record.
Chapter 2
Multiple Choice 30
B) Individual master file records may change
Which of the following frequently.
statement is true about master
file?
A) Individual master file

records are permanent.
B) Individual master file

records may change
frequently.
C) Individual master file

records are sometime being
referred to as date value.
D) Individual master file

records are sometime being
referred to as entity.
Multiple Choice 31
A) an ERP provides an integrated view of the
All of the following are organization's data.
disadvantages of an ERP
system except
A) an ERP provides an
integrated view of the
organization's data.
B) ERP software and hardware

can cost midsized companies
between 10 million and 20
million dollars.
C) ERPs frequently cause

organizations to change their
business processes to
standardized ones.
D) ERPs are relatively complex.
Chapter 2
Multiple Choice 32
A) Dell.
All of the following are ERP
vendors except
A) Dell.
B) SAP.
C) Oracle.
D) Microsoft.
Multiple Choice 33
A) selecting the best supplier by comparing bids.
An ERP system might facilitate
the purchase of direct
materials by all of the following
except
A) selecting the best supplier

by comparing bids.
B) preparing a purchase order

when inventory falls to reorder
point.
C) routing a purchase order to

a purchasing agent for
approval.
D) communicating a purchase
order to a supplier.
Multiple Choice 34
C) customer relationship management.
In an ERP system, the module
used to record marketing data
is called
A) marketing.
B) advertising.
C) customer relationship
management.
D) customer service.
Chapter 2
Multiple Choice 35
B) purchase to pay.
In an ERP system, the module
used to record data about
transactions in the
disbursement cycle is called
A) order to cash.
B) purchase to pay.
C) financial.
D) customer relationship
management.
______________________Coding based Chart of accounts

on order in the financial
statement
______________________ Summary info General ledger

for every asset, liability, equity,
revenue & expense
______________________ Sales Journal, Transaction journals

Purchases Journal, Cash
Journal
______________________ Accounts Subsidiary ledgers

Receivable, Accounts Payable
______________________ is the Coding

systematic assignment of
numbers or letters to items to
classify and organize them.
Chapter 2
______________________ items Sequence codes

numbered consecutively to
account for all items (pre
numbered forms)
______________________ blocks of Block code

numbers reserved for specific
categories of data (product
numbers that start with a 2 are
refrigerators)
______________________ two or more Group codes

subgroups of digits used to
code items (car vin numbers)
______________________ letters and Mnemonic codes

numbers interspersed to
identify an item (Dry300W05 is
low end (300), white (W) dryer
(DRY) made by Sears (05))
______________________ The items Entity

about which information is
stored in a record. (an
employee, an inventory item
and a customer.
______________________ The properties, Attributes

identifying numbers and
characteristics of interest of an
entity that is stored in a
database. (Employee number,
pay rate, name and address.
Chapter 2
______________________ The portion of Field

a data record where the data
value for a particular attribute
is stored. (In Excel each row
might represent a customer
and each column is an attribute
of the customer. Each cell in a
spreadsheet is a field.
______________________ A set of fields Record

whose data values describe
specific attributes of an entity,
such as all payroll data relating
to a single employee. (A row in
a spreadsheet)
______________________ - The actual Data Value

value stored in a field. (A
company name)
______________________ A group of File

related records. (Payroll
records of all employees)
______________________ A permanent Master File

file of records that stores
cumulative data about an
organization. (transactions will
require the master file is
updated to keep them current)
Chapter 2
______________________ A file that Transaction File

contains the individual business
transactions that occur during a
specific fiscal period. (Similar
to a journal in a manual AIS)
______________________ A set of Database

interrelated, centrally
coordinated files that are
stored with as little data
redundancy as possible.
(Accounts Receivable file
combined with customer, sales
analysis to form a customer
database.
Creating new records (Example: adding a customer,

adding a new employee)
______________________ 4 Types of Reading, retrieving or viewing existing data
Data Processing Activities
Updating previous record or data
Deleting data (Example: Purging vendor master file)
______________________ Accumulating Batch Processing

transaction records into groups
or batches for processing at a
regular interval like daily or
weekly.
Chapter 2
______________________ The computer Online, Real-time Processing

system processes data
immediately. Individual
transactions are entered
directly into the computer via a
terminal as they occur,
therefore, ensuring that stored
information is always current.
______________________ A system that ERP System "Enterprise Resource Planning"

integrates all aspects of an
organization's activities like
accounting, finance, marketing,
human resources,
manufacturing, inventory
management into one system.

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3/22/22, 10:56 PM Chapter 2 Flashcards | Quizlet

Study sets, textbooks, questions Upgrade: free 7-da...

b. Online real-time processing

d. The order in which they

Multiple Choice 5 d. Simplicity and reduced costs

a. Better access control

d. Simplicity and reduced costs

b. automatic batch processing

d. a trial balance query

a. A copy of the company's

b. A copy of the company's

c. A copy of the company's

d. A copy of the company's

B) general journal/ expenditure

C) general ledger/ expenditure

D) cash disbursements journal/

B) general journal/ expenditure

C) general ledger/ expenditure

D) cash disbursements journal/

A) data input/ data storage/

B) data input/ data recall/ data

C) data input/ data recall/ data

D) data input/ data recall/ data

A) summarizes the information

B) is posted in total to the

C) only includes balance sheet

D) summarizes the transactions

A) documents have been used

B) company policies were

D) source data automation was

A) recording data in a journal

B) posting items to special

C) capturing data on source

D) recording data in a general

A) well-designed paper forms

B) source data automation

D) sequentially numbered sales

B) using the internet as the

A) Every credit sale is entered

B) Debits and credits in the

C) The subsidiary ledgers play

D) The total of the subsidiary

B) a list of financial statement

B) simplifies the process of

C) records all detailed data for

D) contains summary-level data

A) Individual master file

B) Individual master file

C) Individual master file

D) Individual master file

B) ERP software and hardware

C) ERPs frequently cause

D) ERPs are relatively complex.

A) selecting the best supplier

B) preparing a purchase order

C) routing a purchase order to

______________________Coding based Chart of accounts

______________________ Summary info General ledger