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1 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Accounting Information Systems, 12e (Romney/Steinbart) Chapter 2 Overview of Transaction Processing and ERP Systems
1) What usually initiates data input into a system?
- The transaction system automatically checks each hour to see if any new data is available for input
- The performance of some business activity generally serves as the trigger for data input.
- A general ledger program is queried to produce a trial balance at the end of an accounting period.
- Data is only input when a source document is submitted to the accounting department.
and processing.
Answer: B
Page Ref: 26
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
2) An ERP system might facilitate the purchase of direct materials by all of the following except
- selecting the best supplier by comparing bids.
- preparing a purchase order when inventory falls to reorder point.
- routing a purchase order to a purchasing agent for approval.
- communicating a purchase order to a supplier.
Answer: A
Page Ref: 37
Objective: Learning Objective 5
Difficulty : Moderate
AACSB: Reflective Thinking
3) Which of the following is not true about the accounts receivable subsidiary ledger?
- Debits and credits in the subsidiary ledger must always equal.
- Every credit sale is entered individually into the subsidiary ledger.
- The total of the subsidiary ledgers must equal the control account.
- The subsidiary ledgers play an important role in maintaining the accuracy of the data stored in the
AIS.
Answer: A
Page Ref: 28
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking
4) Which of the following is not usually a consideration when designing a coding system?
- Government regulations on coding systems
- Standardization
- Future expansion needs
- Facilitating report preparation
Answer: A
Page Ref: 29
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic
Accounting Information Systems 12th Edition Romney Test Bank Visit TestBankDeal.com to get complete for all chapters
2 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 5) The general ledger
- summarizes the transactions in journals.
- only includes balance sheet accounts.
- is posted in total to the general journal.
- is the initial place to record depreciation expense.
Answer: A
Page Ref: 28
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Reflective Thinking
6) 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?
- purchases journal; expenditure cycle
- general journal; expenditure cycle
- general ledger; expenditure cycle
- cash disbursements journal; production cycle
Answer: A
Page Ref: 31
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Reflective Thinking
7) Which of the following statements regarding special journals is not true?
- The balances in a special journal must always reconcile to the general ledger.
- Special journals are used to record large numbers of repetitive transactions.
- Special journals are periodically summarized and posted to the general ledger.
- Special journals provide a specialized format for recording similar transactions.
Answer: A
Page Ref: 31
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic
8) Changing an employee's hourly wage rate would be recorded in which file?
- Employee master file
- Employee transaction file
- Payroll master file
- Payroll transaction file
Answer: A
Page Ref: 32
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking
3 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9) A typical source document could be
- in some paper form.
- a computer data entry screen.
- a notepad entry.
- both A and B
Answer: D
Page Ref: 27
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
10) Which step below is not considered to be part of the data processing cycle?
- data input
- feedback from external sources
- data storage
- data processing
Answer: B
Page Ref: 26
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
11) Data must be collected about three facets of each business activity. What are they?
- the business activity, the resources it affects, the people who participate
- the business activity, the transactions it creates, the impact on the financial statements
- the inputs, outputs and processes used
- who is involved, what was sold, how much was paid
Answer: A
Page Ref: 26
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic
12) The issuing of a purchase order is part of which transaction cycle?
- the revenue cycle
- the production cycle
- the human resources cycle
- the expenditure cycle
Answer: D
Page Ref: 27
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic
4 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 13) The collection of job time tickets or time sheets is part of which transaction cycle?
- revenue cycle
- production cycle
- human resources cycle
- expenditure cycle
Answer: C
Page Ref: 27
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic
14) Common source documents for the revenue cycle include all of the following except
- sales order.
- receiving report.
- delivery ticket.
- credit memo.
Answer: B
Page Ref: 27
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic
15) Which of the following documents would be found in the expenditure cycle?
- delivery ticket
- time card
- credit memo
- purchase order
Answer: D
Page Ref: 27
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic
16) 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
- turnaround documents.
- source documents.
- source data automation.
- transaction documents.
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