d.

FRS reports are prepared in flexible, non

1. Which of the following is not a business standardized formats; the MRS reports are
resource? prepared in standardized, formal formats
a.raw material
b. labor G. The major difference between the Financial
c.information Reporting System (FRS) and the Management
d.all are business resources Reporting System (MRS) is the
a.FRS provides information to internal and
2. Which level of management is external users; the MRS provide information
responsible for short-term necessary to to internal users
accomplish organizational objectives? b. FRS provides discretionary information;
a.operations management the MRS provides nondiscretionary information
b. middle management c.FRS reports are prepared using information
c.top management provided by the General Ledger system; the MRS
d.line management provides information to the General Ledger
System
3. Which level of management is d.FRS reports are prepared in flexible, non
responsible for controlling day-to-day standardized formats; the MRS reports are
Operations? prepared in standardized, formal formats
a.top management
b. middle management 10. The purpose of the Transaction
c.operations management Processing System includes all of the
d.executive management following except
a. converting economic events into financial
4. The ability to achieve the goals of a transactions
system depends upon the effective functioning b. recording financial transactions in the
and harmonious interaction between its accounting records
subsystems. This is called c.distributing essential information to
a.system decomposition operations personnel to support their daily
b. system redundancy operations
c.backup system d.measuring and reporting the status of
d.subsystem interdependency financial resources and the changes in those
resources
5. The value of information for users is
determined by all of the following but 11. The Transaction Processing System
a.Reliability includes all of the following cycles except
b. Relevance a.the revenue cycle
c.convenience b. the administrative cycle
d. completeness c.the expenditure cycle
d.the conversion cycle
6. An example of a nonfinancial transaction is
a.sale of products 12. The primary input to the Transaction
b. cash disbursement Processing System is
c.log of customer calls a. a financial transaction
d. purchase of inventory b. an accounting record
c.an accounting report
7. An example of a financial transaction is d.a nonfinancial transaction
a.the purchase of computer
b. a supplier's price list 13. When designing the data collection
c.a delivery schedule activity, which type of data should be avoided?
d.an employee benefit brochure a.data that is relevant
b. data that is efficient
8. Which subsystem is not part of the c.data that is redundant
Accounting Information System? d.data that is accurate
a. Transaction Processing System
b. Expert System 14. The most basic element of useful data in
c.General Ledger/Financial Reporting System the database is
d.Management Reporting System a.the record
b. the key
G. The major difference between the Financial c.the file
Reporting System (FRS) and the Management d.the attribute
Reporting System (MRS) is the
a.FRS provides information to internal and 15. In a database, a complete set of attributes
external users; the MRS provides information for a single occurrence of an entity class is
to internal users called
b. FRS provides discretionary information; a. a key
the MRS provides nondiscretionary information b. a file
c.FRS reports are prepared using information c.a record
provided by the General ledger system; the MRS d.a character
provides information to the General Ledger
System 16. Effective information has all of
the following characteristics except
 a.Relevance
b. completeness

c. summarization c. . liaison between the end user and data

d. structure processing
d. providing safe storage for off-line data files
17. Database management tasks do not
include 26. Which system is not part of the expenditure
a.summarization cycle?
b. storage a.cash disbursements
c.retrieval b. payroll
d.deletion c.production planning/control
d. purchases/accounts payable
18. The author distinguishes between
the Accounting Information System and 27. Which system produces information
the management Information System used for inventory valuation,
based on budgeting, cost control, performance
a.whether the transactions are financial or reporting, and make- buy decisions?
nonfinancial a.sales order processing
b. whether discretionary or b. purchases/accounts payable
nondiscretionary reports are prepared c.cash disbursements
c.the end users of the reports d. cost accounting
d.the organizational structure of the business
28. Which of the following is a turn-around
1G. Which activity is not part of the finance document?
function? a.remittance advice
a.cash receipts b. sales order
b. portfolio management c.purchase order
c.credit d. payroll check
d.general ledger
2G. The order of the entries made in the ledger is
20. Market research and advertising by
are part of which business function? a.transaction number
a.materials management b. account number
b. finance c.date
c.marketing d. user
d.production
30. The order of the entries made in the general
21. Which function manages the financial journal is by
resources of the firm throughbportfolio a.date
management, banking, credit evaluation, and b. account number
cash receipts and disbursements? c.user
a. accounting d.customer number
b. finance
c.materials management 31. In general a special journal would not be
d.distribution used to record
a.sales
22. Which of the following is not part of b. cash disbursements
the accounting function? c.depression
a.managing the financial information resource of d. purchases
the firm
b. capturing and recording transactions in the 32. Which account is least likely to have a
database subsidiary ledger?
c.distributing transaction information to a.sales
operations personnel b. accounts receivable
d.managing the physical information system of c.fixed assets
the firm d. inventory

23. The term "accounting independence" refers 33. Subsidiary ledgers are used in
to manual accounting environments. What
a.data integrity file
b. separation of duties, such as record is comparable to a subsidiary ledger in a
keeping and custody of physical resources computerized environment?
c.generation of accurate and timely information a. archive file
d. business segmentation by function b. reference file
c.transaction file
24. In the distributed data processing approach d.master file
a. computer services are consolidated
and managed as a shared organization 34. A journal is used in manual accounting
resource environments.
b. the computer service function is a cost What file is
center comparable to a journal in a computerized
c.the end users are billed using a charge-back environment?
system a. archive file
d. computer services are organized into b. reference file
small information processing units under the c.transaction file
control of end users d.master file

25. The data control group is responsible for

a.performing the day-to-day processing of
transactions
b. security and integrity of the database

35. In a computerized environment, a list 43. In contrast to a real-time system, in a

of authorized suppliers would be batch processing system
found in the a.there is a lag between the time when the
a.master file economic event occurs and the financial
b. transaction file records are updated
c.reference file b. relatively more resources are required
d.archive file c.a greater resource commitment per unit
of output is required
36. Which of the following is an archive file? d.processing takes place when the economic event
a. an accounts payable subsidiary ledger occurs
b. a cash receipts file
c.a şales journal 44. In contrast to a batch processing system, in a
d.a file of accounts receivable that have been real-time system
written off a. a lag occurs between the time of the
economic event and when the transaction is
37. Which, document is not a type of source b. recorded
document? c.relatively fewer hardware, programming,
a. a sales order and training resources are acquired
b. an employee time card d.a lesser resource commitment per unit
c.a paycheck of output is required
d.sales return receipt e. processing takes place when the economic
event occurs
38. The most important purpose of a turn-
around document is to 45. The type of transaction most suitable for
a.serve as a source document batch processing is
b. inform a customer of the outstanding a. airline reservations
amount payable b. credit authorization
c.provide an audit trail for the external auditor c.payroll processing
d. inform the bank of electronic funds deposits d.adjustments to perpetual inventory

3G. Which type of graphical documentation 46. The type of transaction most
represents systems at different levels of detail? suitable for real-time processing is
a.data flow diagram a.recording fixed asset purchases
b. document flowchart b. recording interest earned on long-term
c.system flowchart bonds
d.program flowchart c.adjusting prepaid insurance
d.recording a sale on account
40. Data flow diagrams
a.depict logical tasks that are being performed, 47. Which step is not found in batch
but not who is performing them processing using 'sequential files?
b. illustrate the relationship between a. control totals
processes, and the documents that flow b. sort runs
between them and trigger activities c.edit runs
c.represent relationships between key d. immediate feedback of data entry errors
elements of the computer system
d.describe in detail the logic of the process 48. Both the revenue and the expenditure
cycle can be viewed as having two
41. Document flowcharts key parts. These are
a.depict logical tasks that are being performed, a.manual and computerized
but not who is performing b. physical and financial
them c.input and output
b. illustrate the relationship between d. batch and real-time
processes, and the documents that flow
between them and trigger activities 4G. All of the following can provide evidence of an
c.represent relationships between key economic
elements of the computer system a.source document
d.describe the logic of the process b. turn-around document
c.master document
42. When determining the batch size, which
consideration is the least 50. Which method of processing does not use
important? the destructive update
a. achieving economies by grouping approach?
together large numbers of transactions a. batch processing using direct access files
b. complying with legal mandates b. real-time processing
c.providing control over the transaction process c.batch processing using sequential files
d. balancing the trade off between d.all of the above use the destructive update
batch size and error detection records are approach
updated

57. The characteristics that distinguish 65. Disadvantages of the distributed

between batch and real-time systems data processing approach include all of
include all of the following except the following except
a.time frame a.possible mismanagement of organization
b. resources used resources
c.file format b. redundancy of tasks
d.efficiency of processing c.software incompatibility
d.system is not responsive to the user's situation
58. A file that stores data used as a standard
when processing transactions is 66. ERP packages include all of the following
a. a reference file modules except
b. a master file a. human resources
c.a transaction file b. general ledger
d.an archive file c.inventory management
d.they include all of the above
5G. Sequential storage means
a.data is stored on tape 67. All of the following are external end users
b. access is achieved through an index except
c.access is direct a. cost accountants
d.reading record 100 requires first reading records b. creditors
1 to GG c.stockholders
d.tax authorities
60. Real-time processing would be
most beneficial in handling a firm's 68. Useful information must possess all
a.fixed asset records of the following characteristics except
b. retained earning information a.relevance
c.merchandise inventory b. timelessness
d.depreciation records c.accuracy
d. completeness
61. Which accounting application is least
suited for batch processing? 6G. The objectives of an information system
a.general ledger include each of the following except
b. vendor payments a.support for the stewardship
c.sales order processing responsibilities of management
d. payroll b. furthering the financial interests of
shareholders
62. Which accounting application is best c.support for management decision making
suited for batch processing? d.support for the firm's day-to-day operations
a.general ledger
b. vendor payments 70. Accountants play many roles relating to
c.sales order processing the accounting information system, including
d. payroll all of the following except
a.system users
63. Operational inefficiencies occur because b. system designers
a. accounts both common and unique to c.system auditors
many concurrent transactions need to be d.system converters
updated in real time.
b. accounts common to many concurrent
transactions need to be updated real time.
c.accounts unique to many concurrent
transactions need to be updated in real time.
d.None of the above are true statements

64. Operational efficiencies can be improved by

a. updating accounts both common and
unique to many concurrent transactions in
real time.
b. updating accounts both common and
unique to many concurrent transactions in
batch mode.
c.updating accounts unique to many concurrent
transactions in real time and udating common
accounts in batch mode.
d.None of the above are true statements