[TEST BANK]ACCOUNTING
INFORMATION SYSTEMS, 15THEDITION BY ROMNEY,
STEINBART,SUMMERS, WOOD
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Chapter 1 Overview of Transaction Processing and
... [Show More] Enterprise Resource
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Planning Systems
2.1 Describe the four parts of the data processing cycle and the major activities in each.
1) 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
Answer: A
2) A typical source document could be
A) some type of paper document.
B) a computer data entry screen.
C) the company'sfinancial statements.
D) both A and B
Answer: D
3) Which step below is not considered to be part of the data processing cycle?
A) data input
B) feedback from externalsources
C) data storage
D) data processing
Answer: B
4) John Pablo worksin 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.
Answer: A
5) John Pablo worksin 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.
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B) expenditure cycle.
C) financing cycle.
D) production cycle.
Answer: B
6) 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.
B) expenditure cycle.
C) financing cycle.
D) production cycle.
Answer: A
7) 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) purchasesjournal; expenditure cycle
B) general journal; expenditure cycle
C) general ledger; expenditure cycle
D) cash disbursementsjournal; production cycle
Answer: A
9) Identify the four parts of the 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
Answer: A
10) What isthe most frequent revenue cycle transaction?
A) purchase of inventory
B) receipt of cash
C) sale to customer
D) billing
Answer: C
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12) 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
Answer: C
13) What is the final step in the data processing cycle?
A) output
B) storage
C) processing
D) input
Answer: A
2.2 Describe documents and procedures used to collect and processtransaction data.
1) The general ledger
A) is the initial place to record general expenses.
B) is posted in total to the general journal.
C) only includes balance sheet accounts.
D) summarizes the transactions in journals.
Answer: D
2) For a retail business, a delivery of inventory, from a vendor (with whom there is an
established credit relationship) would be initially recorded in which type of accounting record
as part of which transaction cycle?
A) purchasesjournal; expenditure cycle
B) general journal; expenditure cycle
C) general ledger; expenditure cycle
D) cash disbursementsjournal; production cycle
Answer: A
3) Data must be collected about three facets of each business activity. What are they?
A) the business activity, the resourcesit affects, the people who participate
B) the business activity, the transactions it creates, the impact on the financialstatements
C) the inputs, outputs and processes used
D) who is involved, what was sold, how much was paid
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Answer: A
4) Issuing a purchase order is part of which transaction cycle?
A) the revenue cycle
B) the expenditure cycle
C) the human resources cycle
D) the production cycle
Answer: B
5) The collection of employee time sheets is part of which transaction cycle?
A) the revenue cycle
B) the production cycle
C) the human resources cycle
D) the expenditure cycle
Answer: C
6) 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.
Answer: B
7) Which of the following documents would be found in the expenditure cycle?
A) delivery ticket
B) time card
C) credit memo
D) purchase order
Answer: D
8) 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
A) turnaround documents.
B) source documents.
C) input documents.
D) transaction documents [Show Less]