Deck 1: Accounting Systems Insights

Question 1

An accounting system spans which of the following Value Chain components?

A)Support
B)Purchase
C)Customers
D)All the above except C.

Answer 1

D

Question 2

Which of the following data is shared between a Supply Chain Management system and an accounting system?

A)The sale price of the finished product
B)The current inventory levels of the raw materials
C)The product delivery costs
D)The number of hours employees worked to create the product

Answer 2

B

Question 3

Match the following enterprise subsystem with the business process it supports.

A)Tracking and Coordinating Operations to Make the Service, Product, or Experience
B)Purchasing Items from Vendors
C)Marketing and Sales Activities
Customer Relationship Management (CRM)

Answer 3

Answers: C

Question 4

Which of the following professionals is the most important group an IT auditor must be able to communicate?

A)Accounting and Human Resource professionals
B)IT and Sales professionals
C)Accounting and IT professionals
D)Sales and Human Resource professionals

Question 5

Match the following enterprise subsystem with the business process it supports.

A)Tracking and Coordinating Operations to Make the Service, Product, or Experience
B)Purchasing Items from Vendors
C)Marketing and Sales Activities
Operations/Production System (OPS)

Question 6

What is the purpose of Enterprise Resource Planning (ERP)software?

A)Identify new trends in consumer purchasing
B)Help managers control organizational resources
C)Help identify the end of a product's life cycle
D)Analyze an organization's sales projections

Question 7

Match the following accounting cycles to the appropriate subsystems.

A)Customer Relationship Management
B)Operations/Production System
C)Supply Chain Management
Purchasing Cycle

Question 8

When data is "hard keyed" into the program, which of the following is true?

A)Changing the data is cost efficient and may be accomplished in a matter of minutes.
B)Changing the data is costly and may take days or weeks.
C)Changing the data requires purchasing additional computer storage and may take days or weeks.
D)Changing the data requires recreating (recoding)the entire program.

Question 9

Which of the following data is shared between a operations/production system and an accounting system?

A)The cost of the raw materials
B)The monthly sales levels
C)The current inventory levels of the finished product
D)Customer information

Question 10

Match the following accounting cycles to the appropriate subsystems.

A)Customer Relationship Management
B)Operations/Production System
C)Supply Chain Management
Payroll Cycle

Question 11

Match the following accounting cycles to the appropriate subsystems.

A)Customer Relationship Management
B)Operations/Production System
C)Supply Chain Management
Sales Cycle

Question 12

The three basic functions of an enterprise system are

A)Processing, Output, and Reports
B)Input, Data, and Reports
C)Input, Processing, and Output
D)Business Intelligence, Processing, and Output

Question 13

An IT auditor must understand the terms and definitions used by accounting and IT professionals.

Question 14

Enterprise Resource Planning (ERP)software focuses on integrating information flows across an entire enterprise.

Question 15

What is the main benefit of a company giving vendors access to the enterprise system?

A)To suggest new products to sell
B)To help test the system security
C)To provide suggestions on improving the enterprise system
D)To coordinate inventory deliveries

Question 16

Only internal users, for example accountants, directors, and executives, may use an integrated enterprise system.

Question 17

Match the following enterprise subsystem with the business process it supports.

A)Tracking and Coordinating Operations to Make the Service, Product, or Experience
B)Purchasing Items from Vendors
C)Marketing and Sales Activities
Supply Chain Management (SCM)

Question 18

What is an alternative to "hard keyed" data?

A)Using variables in the program, such as cell addresses in a spreadsheet
B)Creating the program in a way that does not require data
C)If user requirements are correctly defined, the data will not change and may be "hard keyed."
D)Alternatives to "hard keyed" data is not possible. All data must be "hard keyed."

Question 19

An integrated enterprise system allows different departments to use the same information.

Question 20

A Supply Chain Management (SCM)system is a subsystem of an Accounting System.

Question 21

The purchasing cycle consists of transactions between which entities?

A)A company and vendors
B)A company and employees
C)A company and customers
D)A company and a bank

Question 22

The database is a key component of an accounting system.

Question 23

You are an intern at a small mom-and-pop type corner grocery store. The owner's accountant is trying to talk the owners into purchasing an integrated enterprise system for small businesses. The owner thinks the accountant is just trying find a way to charge more money. How would you convince the owner each piece of the integrated enterprise system would help the business?

Question 24

The Customer Module of a baseline accounting system includes creating purchase orders.

Question 25

A primary key may be used to associate customer information (name, address, phone number, etc.)with a sales order.

Question 26

Which of the following data is shared between a Customer relationship management system and an accounting system?

A)Employee information
B)The advertising costs
C)The cost of goods sold
D)Vendor information

Question 27

What types of data does an operations/production system and an accounting system need to share? How does each system use that data?

Question 28

The Financial Module of a baseline accounting system includes payroll transactions.

Question 29

Which of the following is the best way to protect information assets?

A)Limit the number of users that can access the data at the same time to 5 people.
B)Implement policies and procedures for data deletion (destruction).
C)Limit the amount of time a user may access the data.
D)Require an ID and password to access data in the databases.

Question 30

A database may have two or more tables with the exact same name.

Question 31

You are an accountant and one of your clients is a small business that sells only over the Internet. How would you convince the owner to purchase an integrated enterprise system?

Question 32

What types of data does a Supply Chain Management system and an accounting system need to share? How does each system use that data?

Question 33

Understanding how the data will be used is essential when designing a database.

Question 34

Spreadsheet software can be used to perform analysis on data the cannot be done within a relational database.

Question 35

How does an enterprise system support people in the same company to perform different but related business activities? Please provide an example.

Question 36

Database queries search the database to answer a specific question and extract information from one or more tables.

Question 37

Business Intelligence tools use queries to extract data directly from the relational database, bypassing the OLAP cube and any accompanying delay.

Question 38

The enterprise-wide view of accounting enables the accountant to see how the accounting system interacts with other subsystems in the enterprise system.

Question 39

A database record is a collection of related database tables.

Question 40

What are the results of using "hard keyed" data in a program and why? Please provide an example.

Question 41

Private companies (companies that are not publicly traded)are not required to have their internal controls assessed by an independent CPA firm.

Question 42

Match the following cycles with their corresponding accounting system module.

A)Banking Module
B)Employees Module
C)Financial Module
D)Customers Module
E)Vendors Module
Financial Cycle

Question 43

Match the following cycles with their corresponding accounting system module.

A)Banking Module
B)Employees Module
C)Financial Module
D)Customers Module
E)Vendors Module
Sales Cycle

Question 44

Which accounting software is designed for a large-scale company?

A)SAP Business All-in-One
B)SAP Business One
C)Oracle's JD Edwards EnterpriseOne
D)Oracle's PeopleSoft Enterprise

Question 45

When looking at an accounting system using the zoom view, you see

A)Accounting information available to internal users, primarily management
B)Detailed information recorded in the accounting system
C)An enterprise-wide view of an organization showing the entire accounting system
D)Information available on the tax reports for the Internal Revenue Service and other tax agencies

Question 46

Which transactions are usually performed in the Customers module of the Baseline Accounting System?

A)Pay Bills
B)Create Purchase Order
C)Create Invoice
D)Receive Inventory

Question 47

Data cubes allow you to view data in two dimensions.

Question 48

To record an inventory order, the information would be entered in a screen that looks similar to which paper form?

A)Check
B)Sales Receipt
C)Purchase Order
D)Invoice

Question 49

Which event is part of the Purchasing Cycle?

A)Enter Bill
B)Pay Bill
C)Make Deposit
D)Create Invoice

Question 50

The ________ module consists of transactions for payroll.

A)Customers
B)Banking
C)Employees
D)Vendors

Question 51

The ________ module in the Baseline Accounting System consists of transactions such as the purchasing of goods or services from a vendor.

A)Customers
B)Banking
C)Employees
D)Vendors

Question 52

What modules comprise a baseline accounting system?

A)Vendors, Employees, Sales, Banking, Financial, and Reports
B)Inventory, Employees, Sales, Banking, Financial, and Reports
C)Inventory, Employees, Sales, Banking, Accounting, and Reports
D)Vendors, Employees, Customers, Banking, Financial, and Reports

Question 53

When making adjusting entries, you are using the ________ module in the base line accounting system.

A)Reporting
B)Financial
C)Banking
D)Company

Question 54

Which event is part of the Sales Cycle?

A)Receive Item
B)Enter Time
C)Make Deposit
D)Create Purchase Order

Question 55

When looking at an accounting system using the aerial view, you see

A)Accounting information available to internal users, primarily management
B)Detailed information recorded in the accounting system
C)An enterprise-wide view of an organization showing the entire accounting system
D)Information available on the tax reports for the Internal Revenue Service and other tax agencies

Question 56

To record a payment for inventory delivered, the information would be entered in a screen that looks similar to which paper form?

A)Check
B)Sales Receipt
C)Purchase Order
D)Invoice

Question 57

Match the following cycles with their corresponding accounting system module.

A)Banking Module
B)Employees Module
C)Financial Module
D)Customers Module
E)Vendors Module
Payroll Cycle

Question 58

What is the purpose of an onscreen entry form?

A)Onscreen entry forms help ensure information is entered only once in the database.
B)Onscreen entry forms provide a familiar interface for entering information into a database.
C)Onscreen entry forms allow you perform data analysis that is cumbersome in a relational database.
D)Onscreen entry forms provide predictive modeling to gain insights from data to improve business decisions.

Question 59

Match the following cycles with their corresponding accounting system module.

A)Banking Module
B)Employees Module
C)Financial Module
D)Customers Module
E)Vendors Module
Purchasing Cycle

Question 60

The reports module produces for the following people except

A)Investors
B)Managers
C)Accountants
D)Customers

Question 61

Spreadsheets containing data extracted from a relational database are called what?

A)Ghost Data
B)Intelligent Data
C)Shadow Data
D)Gray Data

Question 62

Online Analytical Processing (OLAP)cubes allow you to

A)View the same data from just one perspective
B)Manipulate data in a spreadsheet
C)View the same data from different perspectives
D)Add data to the database

Question 63

If you were the person entering transactions into an accounting system, why would you want the input screens to look like paper forms?

Question 64

Which act requires publicly traded companies to assess the effectiveness of their internal controls and have an independent CPA firm audit this assessment?

A)Wheat Commission
B)Sarbanes-Oxley Act of 2002
C)Security Exchange Commission Act of 1934
D)The GAAP Act of 1932

Question 65

The following field names are part of a table for a company's inventory. Which field name could be the primary key for this table?

A)Vendor ID
B)Item ID
C)Cost
D)Sales Price

Question 66

When designing a database, which field would not belong in a table storing customer information?

A)Zip Code
B)Street Address
C)Last Name
D)Order Number

Question 67

A ________ is a collection of related database tables.

A)Field
B)Relational Database
C)Operational Database
D)Primary Key

Question 68

In an accounting system database, which field belongs in a table containing inventory information?

A)Invoice Number
B)Purchase Order
C)Vendor ID
D)City

Question 69

In an accounting system database, which field belongs in a table containing customer information?

A)Item Number
B)Street Address
C)Invoice Number
D)Cost

Question 70

In a relational database, how are tables connected?

A)By fields that are common in two or more tables
B)By the table names
C)By a query statement
D)By network addresses

Question 71

What is the purpose of a database query?

A)To provide a format for viewing data
B)To search the database to answer a specific question
C)To connect related tables
D)To uniquely identify a record in a database table

Question 72

What is the difference between the aerial view and zoom view of an accounting system?

Question 73

When designing an accounting database, where should you begin?

A)With the outcome in mind
B)The accounting software
C)The paper forms
D)The development phase of the software development life cycle

Question 74

How much time do accountants spend using spreadsheets?

A)30%
B)50%
C)80%
D)90%

Question 75

To find patterns in data you would use

A)A spreadsheet application
B)Business intelligence applications
C)Flat file
D)All the above except C

Question 76

When designing a database, which field would not belong in a table storing inventory information?

A)Part Number
B)Purchase Order
C)Sale Price
D)Cost

Question 77

What is the purpose of security and controls over information assets?

A)Security and controls are to prevent fraud, unauthorized access, modification, destruction, or disclosure of information assets.
B)Security and controls are to prevent data analysis.
C)Security and controls are to frustrate employees with legitimate need to access information assets.
D)Security and controls are to ensure all the information assets are available to all employees.

Question 78

The following fields are common to tables storing customer, vendor, and employee information except?

A)Area Code
B)City
C)State
D)Cost

Question 79

Identify the six modules in the baseline accounting system. Which transaction cycle is associated with each module? What type of transactions are associated with each module?

Question 80

Which field below would not be stored in an order table?

A)Order ID
B)Item ID
C)Vendor ID
D)Customer ID