WGU D217 Accounting Information Systems

WGU D217 Accounting Information Systems

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Students also studied Terms in this set (163) Western Governors UniversityC 722 Save D217 Accounting Information Syste...226 terms vanessa_harris263 Preview WGU D217 Accounting Information ...249 terms Mobell70Preview Operations and Supply Chain Mana...245 terms rwdixon1993Preview D215 Au 336 term Sav Which of the following is a problem usually associated with the flat-file approach to data management?data redundancy Which problem is characteristically associated with the flat-file approach to data management?the inability to determine what data is available A description of the physical arrangement of records in the database is the internal view.Which of the following may provide many distinct views of the database?the user view The update anomaly in unnormalized tablesoccurs because of data redundancy.The deletion anomaly in unnormalized tablesmay result in the loss of important data.Which document triggers the revenue cycle?the customer purchase order Which department is least likely to be involved in the revenue cycle?The accounts payable department is least likely to be involved in the revenue cycle. Accounts payable is charged with managing the segment of the expenditure cycle that involves payments to vendors and creditors.The purpose of the sales invoice is toThe purpose of the sales invoice is to bill the customer. The sales invoice will be sent to the customer for payment. At the same time the invoice will also update inventory, send a journal to the general ledger, and record the sales journal.

Which type of control is considered a compensating control for customer payments?Supervision is a compensating control for customer payments. Compensating controls are put in place when more effective controls are deemed too difficult or costly to implement. Supervision is the simplest and most common form of compensating control.Commercial accounting systems have fully integrated modules. The word "integrated" means that The word "integrated" means that the transfer of information among modules occurs automatically. In a fully integrated system, the shipping advice will generate the request for invoice automatically. This eliminates the risk that the invoice request is not processed or is processed for a different amount.A copy of the purchase order (PO) is sent to the A copy of the purchase order (PO) is sent to the vendor. The purchase order is the formal document that tells the vendor what material is needed, at what price, in what quantity and on what date.The departments involved in the purchasing process are purchasing, receiving, inventory control and The departments involved in the purchasing process are purchasing, receiving, inventory control and accounts payable. Accounts payable completes the purchasing process by authorizing and executing the cash disbursement based on a signal from receiving or inventory control.When a cash disbursement in payment of an accounts payable is recorded When a cash disbursement in payment of an accounts payable is recorded the liability account is decreased. On the Balance Sheet, accounts payable is a current liability. When a cash disbursement is recorded, the liability will be reduced.The greatest risk of misappropriation of funds occurs in The greatest risk of misappropriation of funds occurs in accounts payable. This may take the form of payments for goods not ordered or received and to vendors that do not exist. The risk can be reduced through supervision, segregation of duties, independent verification, or automated processes.In a firm with proper segregation of duties, adequate supervision as a compensating control is still necessary in In a firm with proper segregation of duties, adequate supervision is most critical in receiving. Every day materials arrive on the receiving dock. Until those receipts are recorded in the system, they are invisible to anyone but the receivers and their supervisors. Supervision is a compensating control appropriate before more automated controls take effect. Scanning technology and automated three-way match are technological controls that reduce risk.The fixed asset system records theThe fixed asset system records the purchase of a new plant. The fixed asset system records property, plant, and equipment used in the operation of the business. These represent the largest investments of the firm.In a technology enabled payroll system, Personnel, Time Keeping, Payroll, and Accounts Payable connect to which department to pay employees?In a technology-enabled payroll system, Personnel, Time Keeping, Payroll and Accounts Payable connect to cash disbursements to pay employees. Personnel inputs the basic employee information and rate of pay; Time Keeping collects hours worked and verifies time cards; Payroll inputs the hours worked into the payroll system which calculates gross and net pay, taxes, and other deductions; Accounts Payable approves the payment amount; and finally cash disbursements issues pay checks or direct deposit. The general ledger will be updated after the cash disbursement occurs.

An important reconciliation in the payroll system is An important reconciliation in the payroll system is that the general ledger compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable. Cost accounting will be tracking the job tickets to properly account for work in process. Accounts payable will produce a disbursement voucher based on input from timecards. Job tickets and timecards should match when hours and hourly rates are extended.Which of the following situations represents an internal control weakness?The distribution of paychecks by the employees' immediate supervisor is an internal control weakness. Paychecks should go directly to employees either by mail or through direct deposit. Giving the responsibility for distribution to the supervisor creates the possibility of loss, theft, or withholding of pay from an employee that the supervisor simply does not like. An additional risk arises if the employee is absent on payday and the supervisor has no secure storage for the check until the employee is back.Which of the following is NOT a reasonable control for fixed assets?Requiring that fully depreciated assets be disposed of immediately is not a reasonable control for fixed assets. Fully depreciated assets may have years of useful life remaining. For example, manufacturing machinery may be depreciated over three years but many factories use machines that are 10, 15, or 20 years old if they are well maintained.What type of data is found in the general ledger master file?Balances for each account in the chart of accounts are found in the general ledger master file. The text describes the general ledger file as the information hub for the accounting system. Each record in the general ledger master file corresponds with one of the accounts in the chart of accounts. Each record is either a GL Master account (i.e., Sales) or a control account (i.e. Accounts Receivables control) Which report is an output of the financial reporting system (FRS)?A comparative balance sheet is an output of the financial reporting system. The law requires that corporations generate a series of financial reports - Income Statement, Balance Sheet, Statement of Cash Flows, Tax Returns, and others. This requirement is met by the financial reporting system.A characteristic of the management reporting system (MRS) is The management reporting system (MRS) focuses on internal decision-making information. The MRS is the source for reports that managers will use to analyze business performance such as variance analysis, production efficiency, sales, and purchases.Big data analytics are characterized byBig data analytics are characterized by volume, velocity, and variety of data. These

are referred to as the three Vs: extreme volumes of data (megabytes, terabytes,

petabytes, etc.), the rapid velocity at which the data must be processed (particularly in applications involving machine learning and artificial intelligence), and the wide variety of structured and unstructured data types that need to be integrated (audio, video, external web data, social media, the financial reporting system, the management reporting system).What function does prescriptive analytics serve? Prescriptive analytics tells the user what actions should be taken in response to specific questions. For example, some companies use predictive analytics to optimize trade promotions. Prescriptive analytics helps them determine which campaigns to run and for which products.

Which item reflects vital information such as quantities and unit prices?The sales order contains vital information such as unit prices and quantities.How do inventory control functions adjust inventory at the time of a return?An approved credit memo triggers the system to adjust the inventory when items are returned.Which risk is associated with charge accounts within the revenue cycle?The clerk can be careless and allow purchases from individuals who do not pay their bills.Which function reflects the expenditure cycle?Inventory is a part of the expenditure cycle because the quantities and condition are updated.What is the purpose of the blind copy?The blind copy is used to force the clerk to count contents to verify items match.Which items reflect fixed assets?Buildings can sold and converted to cash.What contributes to the success of the electronic data interchange system?Implementation of agreements contributes to the success by circumventing discrepancies.What is an example of a payroll system information technology (IT) control?Direct deposit is an example of an IT control.Which department is responsible for receiving the supplier's invoice, the purchase order, and the receiving report in order to post the acquisition of fixed assets?Accounts Payable receives the supplier's invoice, purchase order, and receiving report to post the acquisition of fixed assets in the accounts payable subledger.Which information from timecards provides an audit trail to support financial reporting?Payroll expenses should be supported with hours worked by employees on a specified date.Why are journal vouchers reviewed and approved before entry into the general ledger (GL)?Journal vouchers are entered into the GL and require a level of review and approval to ensure information is accurate, complete, authorized, and supported.Why is a management reporting system a control? Management reporting systems are implemented at the discretion of organization management based on internal user needs to manage and control business activities.Why is the general ledger history file used for comparative financial reports?The same format and account structures allow for transactions to be grouped and categorized consistently from year to year.Which comparison serves as a tool for managers by using data from the budget master file and from the responsibility center file?A comparison of budgeted amounts in accounts to actual revenue and expense amounts by responsibility center in accounts can signal accounts that require further inquiry.Which strategic agreement is made between buyer and seller for electronic data interchange?The strategic agreement of the electronic data interchange technology has specific terms agreed on prior to utilization of the service.What is a reason for sales returns?Late deliveries can affect sales returns.Which risk is associated with charge accounts within the revenue cycle?The clerk can be careless and allow purchases from individuals who do not pay their bills.