Accounting
Systems 3110 test 1
The Committee of Sponsoring Organizations of the Treadway
Commission on Fraudulent Financial Reporting framework includes _____.
A) control
activities and the control environment
B) information
and communication
C) risk
assessment and monitoring
D) all of the
above
E) A and C,
only
Question 2 5
/ 5 points
Examples of internal control include _____.
A) bank
reconciliation and user training
B) restrictive
endorsement and daily deposit of checks
C) separation
of duties and document matching.
D) all of the
above
E) A and C,
only
Question 3 5
/ 5 points
The expectancy that effort will lead to success is a
function of _____.
A) instrumentality
(will success be rewarded)
B) valence
(is the reward valued)
C) both A
and B
D) either A
or B, but not both
E) neither A
nor B
Question 4 5
/ 5 points
The financial activity on the accrual basis for a period of
time is found in the _____.
A) balance
sheet
B) income
statement
C) retained
earnings statement
D) statement
of cash flows
E) none of
the above
Question 5 5
/ 5 points
Steps in the accounting cycle that occur Steps that occur at
the end of the fiscal year include to _____.
A) prepare
financial statements and record and post-closing entries
B) prepare
post-closing trial balance
C) record
and post adjusting entries and to prepare an adjusted trial balance
D) all of the
above
E) A and C,
only
Question 6 5
/ 5 points
Business process management is a systematic approach to
analyzing, redesigning, improving and managing a specific process.
A) true
B) false: it
does not include redesigning a specific
C) false: it
is unrelated to managing a specific process
D) both B and
C
E) none of
the above
Question 7 5
/ 5 points
Internal control can be defined as a process, effected by an
entity’s board of directors, management and other personnel designed to provide
reasonable assurance regarding the achievement of objectives in the following
categories: effectiveness and efficiency
of operations, reliability of financial reporting and compliance with
applicable laws and regulations.
A) True
B) Internal
control is not a process but rather the end result
C) False:
internal control is not effected by an entity’s board of directors
D) both B and
C
E) none of
the above
Question 8 5
/ 5 points
The accounting cycle includes steps completed each period to
_____.
A) identify
recordable transactions
B) measure
related dollar amounts
C) prepare
general purpose financial statements
D) record
transactions in the AIS
E) all of
the above
Question 9 0
/ 5 points
Examples of internal control include _____.
A) biometric
access to IT assets and video surveillance
B) forced
vacations and job rotation
C) password
policies and forced vacations
D) all of the
above
E) B and C,
only
Question 10 5
/ 5 points
An accounting information system is a set of interrelated
_____.
A) Activities
B) Documents
C) Technologies
D) all of the
above
E) A and B,
only
Question 11 0
/ 5 points
A deterministic question _____.
A) has
multiple right answers
B) has one
right answer
C) is
exemplified by, “What is the journal entry to record a cash sale of services?”
D) A and C,
only
E) B and C,
only
Question 12 5
/ 5 points
One important component of critical thinking is the ability
to _____.
A) find
needed information
B) recognize
when information is needed
C) use
information for decisions
D) all of the
above
E) none of
the above
Question 13 5
/ 5 points
An example of an internal control is _____.
A) adequate
documentation
B) physical
controls
C) separation
of duties
D) all of the
above
E) A and C,
only
Question 14 5
/ 5 points
The conceptual framework was _____.
A) designed
to provide some structure and guidance for the development of future accounting
principles
B) developed
by the FASB in 1977
C) required
by Sarbanes-Oxley Act of 2002
D) A and B
E) A and C
Question 15 0
/ 5 points
_____ organizations determine their internal controls by
thinking about their risk exposures.
A) All
B) Many
C) Some
D) Few
E) no
Question 16 5
/ 5 points
In the risk assessment component of an enterprise risk
management system, risks are assessed on _____ basis.
A) an
inherent
B) a
residual
C) both A
and B
D) either A
or B, but not both
E) neither A
nor B
Question 17 0
/ 5 points
Reasonable assurance _____.
A) considers
the cost-benefit constraint
B) does not
consider the cost-benefit constraint
C) is
unrelated to the cost-benefit constraint
D) must not
consider the cost-benefit constraint
E) none of
the above
Question 18 5
/ 5 points
The purpose of _____ entries is to account for timing
differences between cash flow and accrual basis revenue and expense.
A) adjusting
B) closing
C) journal
D) opening
E) none of
the above
Question 19 5
/ 5 points
An accounting information system is designed to _____.
A) collect
data
B) process
data
C) report
information
D) all of the
above
E) A and B,
only
Question 20 5
/ 5 points
Systems risk and human error risk are examples of _____
risk.
A) financial
B) hazard
C) operational
D) strategic
E) none of
the above
Question 21 5
/ 5 points
A purpose of internal control purposes is to _____.
A) encourage
compliance with management directives
B) ensure
reliable financial reporting
C) promote
operating efficiency
D) safeguard
assets
E) all of
the above
Question 22 5
/ 5 points
A cost form associated with an accounting information system
is _____.
A) behavioral
B) financial
C) psychological
D) all of the
above
E) A and C,
only
Question 23 5
/ 5 points
A non-deterministic question _____.
A) has
multiple right answers
B) has one
right answer
C) is
exemplified by, “What is the journal entry to record a cash sale of services?”
D) A and C,
only
E) B and C,
only
Question 24 0
/ 5 points
Internal control ensures _____.
A) compliance
with management directives
B) operating
efficiency
C) reliable
financial reporting
D) all of the
above
E) A and B,
only
Question 25 5
/ 5 points
Legal risk, regulatory risk, and business strategy risk
examples of _____ risk.
A) financial
B) hazard
C) operational
D) strategic
E) none of
the above
Question 26 5
/ 5 points
Bookkeeping is _____.
A) communicating
economic information to permit Informed judgments and decisions by users of the
information
B) part of
accounting
C) the
totality of accounting
D) unrelated
to accounting
E) none of
the above
Question 27 5
/ 5 points
Market risk, credit risk, and liquidity risk are examples of
_____ risk.
A) financial
B) hazard
C) operational
D) strategic
E) none of
the above
Question 28 5
/ 5 points
Expectance theory _____ accounting information systems.
A) can be
applied to the implementation and application of
B) is the
only component of
C) is based
on the principle that all people are lazy and must be constantly monitored in
order to implement and apply an
D) unrelated
to
E) none of
the above
Question 29 5
/ 5 points
The importance of AIS is that it
A) gives a
“big picture” view of accounting
B) is needed
in all organizations
C) offers
opportunity for developing critical thinking skills
D) touches
virtually every other area of accounting
E) all of
the above
Question 30 5
/ 5 points
Accounting Information Systems have generic elements
including _____.
A) inputs and
outputs
B) internal
controls
C) processes
and storage
D) all of the
above
E) A and C,
only