Quiz #1 Instructions: Ensure that the following information is included in your answer: Question # and your answer, listed vertically Example: #1-b #2-a #3-c Select the one most appropriate answer. An answer that includes two correct components is more correct that an answer that includes only one correct component. If you select more than one answer, your question will not be graded. Each multiple choice question is worth one mark. This quiz is a review of material in the text and course materials for Chapters 1-4.
1) When two knowledgeable people acting independently each produce the same information, this information is said to be A) relevant. B) complete. C) verifiable. D) reliable. 2) The primary objective of accounting is to A) ensure the profitability of an organization. B) provide useful information to decision makers. C) prepare financial statements. D) implement strong internal controls. 3) The process of creating value for customers is the result of nine activities that form a A) successful business. B) support system. C) value chain. D) profitable operation. 4) An example of inbound logistics would consist of A) the activities that consist of receiving, storing, and distributing the materials used as inputs by the organization to create goods and/or services it sells. B) the activities that provide post-sale support to customers. C) the activities that transform inputs into final products or services. D) the activities that help customers to buy the organization's products or services.
5) Inventory information is provided in real time by a firm's accounting information system. The accuracy of this information is questionable, however, since the production manager often reports stock outs of components that the system indicates are in stock. Which of the following characteristics of useful information is absent in the situation described above? A) Reliable B) Timely C) Understandable D) Accessible E) Verifiable F) Complete G) Relevant 6) Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the revenue cycle would be A) give cash, get cash. B) give goods, get cash. C) give cash, get labor. D) give cash, get goods. 7) An ERP system might facilitate the purchase of direct materials by all of the following except A) routing a purchase order to a purchasing agent for approval. B) preparing a purchase order when inventory falls to reorder point. C) communicating a purchase order to a supplier. D) selecting the best supplier by comparing bids. 8) 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) general ledger; expenditure cycle B) purchases journal; expenditure cycle C) general journal; expenditure cycle D) cash disbursements journal; production cycle 9) 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) source data automation. B) turnaround documents. C) source documents. D) transaction documents. 10) When the sum of all entries in the subsidiary ledger equals the balance in the corresponding general ledger account, it is assumed that A) the recording processes were accurate. B) all source documents were recorded. C) no errors exist in the subsidiary ledger. D) adjusting entries are not required.
11) A subsidiary ledger A) simplifies the process of recording large numbers of repetitive transactions. B) is used to record infrequent or non-routine transactions. C) records all detailed data for any general ledger account that has individual sub-accounts. D) contains summary-level data for every account of the organization. 12) An audit trail A) begins with the general journal. B) is a summary of recorded transactions. C) provides the means to check the accuracy and validity of ledger postings. D) is...
Please join StudyMode to read the full document