General Ledger and Publicly Accessible Website

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Information Accounting Systems, 7eTest Bank, Chapter 8 Chapter 8General Ledger, Financial Reporting, and Management Reporting Systems TRUE/FALSE 1. The most common means of making entries in the general ledger is via the journal voucher. ANS: T PTS: 1 2. Individuals with access authority to general ledger accounts should not prepare journal vouchers. ANS: T PTS: 1 3. The journal voucher is the document that authorizes entries to be made to the general ledger. ANS: T PTS: 1 4. Each account in the chart of accounts has a separate record in the general ledger master file. ANS: T PTS: 1 5. The responsibility center file is primarily used by the Financial Reporting System. ANS: F PTS: 1 6. Management reporting is often called discretionary reporting because it is not mandated as is financial reporting. ANS: T PTS: 1 7. Primary recipients of financial statement information are internal management. ANS: F PTS: 1 8. The Management Reporting System is a nondiscretionary system. ANS: F PTS: 1 9. When evaluating decision alternatives, one option is to take no action. ANS: T PTS: 1 10. In most cases intangible decision criteria can be quantified. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole o r in part. ANS: F PTS: 1 11. One benefit of the Management Reporting System is that it can alert management to delays in project implementation. ANS: T PTS: 1 12. Responsibility refers to an individuals obligation to achieve desired results. ANS: T PTS: 1 13. A firm with a wide span of control tends to have relatively more layers of management. ANS: F PTS: 1 14. The control function entails evaluating a process against a standard and, if necessary, taking corrective action. ANS: T PTS: 1 15. Standards are the basis for evaluating actual performance. ANS: T PTS: 1 16. A report is said to have information content if it eliminates uncertainty associated with a problem facing the decision maker. ANS: F PTS: 1 17. An inventory out-of-stock report is an example of a programmed, on-demand report. ANS: T PTS: 1 18. A principle of responsibility accounting is that managers are responsible for controllable and uncontrollable costs. ANS: F PTS: 1 19. The manager of a cost center is responsible for cost control and revenue generation. ANS: F PTS: 1 20. Designing an effective management reporting system does not require an understanding of the information managers need to deal with the problems they face. ANS: F PTS: 1 Accounting Information Systems, 7eTest Bank, Chapter 8 21. The formalization of tasks principle suggests that management should structure the firm around the unique skills sets of key individuals. ANS: F PTS: 1 22. If a manager delegates responsibility to a subordinate, he or she must also grant the subordinate authority to make decisions. ANS: T PTS: 1 23. Operational control involves motivating managers at all levels to use resources, including materials, personnel, and financial assets, as productively as possible. ANS: F PTS: 1 24. XBRL taxonomies are classification schemes that are compliant with the XBRL specifications to accomplish a specific information exchange. ANS: T PTS: 1 25. An income statement is an example of an XBRL instance document. ANS: T PTS: 1 MULTIPLE CHOICE 1. Which statement is not true/ a. The journal voucher is the only source of input into the general ledger. b. A journal voucher can be used to represent summaries of similar transactions or a single unique transaction. c. Journal vouchers are not used to make adjusting entries and closing entries in the general ledger. d. Journal vouchers offer a degree of control against unauthorized general ledger entries. ANS: C PTS: 1 2. Entries into the General Ledger System (GLS) can be made using information from a. the general journal b. a journal voucher which represents a summary of similar transactions c. a journal voucher which represents a single, unusual transaction d. all of...
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