Question 1

Consistency in a company's financial management system is maintained by ________.
A) supporting multiple finance-related activities and processes
B) creating bridges and interfaces to other information systems
C) generating exception reports regarding unusual financial events
D) creating compliance reports that conform to international regulations

Accepted Answer

The answer of Consistency in a company's financial management system...

Question 2

The financial management system of a software company automatically updates the general ledger whenever there are any transactions in the company's accounts receivable and accounts payable. This is an example of the financial system's ________.
A) compliance reporting
B) exception reporting
C) service delivery applications
D) integration of components

Accepted Answer

The integration of components refers to how different parts of a system work together seamlessly. In this case, the general ledger is automatically updated based on transactions in the accounts receivable and accounts payable, indicating that the financial management system has integrated these components. Compliance reporting, exception reporting, and service delivery applications are not directly related to the integration of components.

Question 3

Which of the following organizations requires the most number of modules for their financial systems?
A) a federal government agency
B) a private-sector bank
C) a steel manufacturing company
D) an IT consulting firm

Accepted Answer

Federal government agencies typically have complex financial systems with multiple requirements and regulations to adhere to, leading to a higher number of required modules.

Question 4

Modules such as budget planning, debt management, travel and expense management, and contracts management are typically included in a ________ management system.
A) supply chain
B) financial
C) human capital
D) customer relationship

Accepted Answer

Budget planning, debt management, travel and expense management, and contracts management are all financial management functions. Therefore, the best choice is B (financial management system).

Question 5

Carrie, the finance manager of an insurance company, suspects some of the sales representatives of submitting their travel expenses receipts twice. Which of the following would help her spot such fraudulent submissions?
A) electronic data interchange
B) exception reports
C) noncompliance reports
D) compliance reports

Accepted Answer

Exception reports help identify any irregularities or unusual patterns in the data, such as duplicate expenses. Electronic data interchange is a method of exchanging data between two systems, but it alone would not help identify duplicate receipts. Noncompliance reports and compliance reports are related to regulatory compliance and would not necessarily be helpful in this situation.

Question 6

Exception reports that are generated by financial information systems help organizations primarily in ________.
A) conforming to local, national, and international financial regulations
B) comparing financial results and strategies with competitor companies
C) spotting fraudulent transactions and mistakes that require a manual review
D) developing organization- and industry-specific accounting standards

Accepted Answer

Exception reports help organizations spot fraudulent transactions and mistakes that require manual review. While financial information systems can assist with regulatory compliance and financial strategy analysis, exception reports are specifically designed to identify anomalies that require further investigation. Accounting standards are typically developed by industry groups, accounting bodies, or regulatory agencies, not individual organizations.

Question 7

Giving clear definitions and tags to financial terms using eXtensible Business Reporting Language (XBRL) makes data ________.
A) less transparent
B) manually manageable
C) concise and error-free
D) computer-readable

Accepted Answer

Giving clear definitions and tags to financial terms using XBRL makes data computer-readable, which allows for easier analysis, comparison, and processing by software and computers, reducing manual errors and increasing efficiency.

Question 8

Which of the following is true of compliance reporting?
A) Supply chain management systems carry the major burden of compliance reporting.
B) Compliance reports primarily help in identifying events that fall outside accepted ranges.
C) Compliance reports relying on XBRL are more advanced than electronic PDFs.
D) In the United States, the South Eastern Conference (SEC) mandates all aspects of compliance.

Accepted Answer

The answer of Which of the following is true of...

Question 9

Which of the following components of the HCM systems is responsible for tracking employees' demographic information?
A) workforce management modules
B) talent management applications
C) human resources management modules
D) service delivery modules

Accepted Answer

Human resources management modules are responsible for tracking employees' demographic information such as age, gender, marital status, education, and employment history. Workforce management modules typically handle tasks related to scheduling, time and attendance, and payroll. Talent management applications focus on recruiting, developing, and retaining top talent. Service delivery modules support HR service delivery by streamlining processes and enhancing employee self-service.

Question 10

Which of the following activities is supported by financial management systems?
A) mapping the employee life cycle, starting from recruitment to retirement
B) deciding which suppliers to use for sourcing raw materials
C) negotiating the terms and conditions of payment agreements made with vendors
D) creating and maintaining a repository of employee contact information

Accepted Answer

Financial management systems support activities related to managing finances, including negotiating terms and conditions of payment agreements with vendors, as this directly impacts cash flow and financial operations.

Question 11

The goal of using XBRL in compliance reporting is to ________.
A) identify events that fall outside accepted ranges
B) develop a common language for financial reporting
C) create streamlined, manual workflows
D) encourage diversity in reporting practices

Accepted Answer

The use of XBRL in compliance reporting aims to develop a common language for financial reporting, making it easier for regulators and users to compare data across different companies and industries. XBRL helps to streamline financial reporting processes and reduce errors, making it a valuable tool for regulatory compliance. Identifying events that fall outside accepted ranges and encouraging diversity in reporting practices are not the primary objectives of using XBRL in compliance reporting. Streamlined, manual workflows are also not a key goal of using XBRL, as the technology is designed to automate and standardize reporting processes.

Question 12

Which of the following is the central element of the human capital management (HCM) information system?
A) employee record
B) customer service
C) marketing campaigns
D) transportation

Accepted Answer

The central element of the human capital management (HCM) information system is the employee record. This record includes information such as job history, performance evaluations, compensation, and benefits. HCM systems are designed to manage employee data and help organizations make data-driven decisions regarding their workforce. Customer service, marketing campaigns, and transportation are not central elements of HCM systems.

Question 13

The goal of using eXtensible Business Reporting Language (XBLR) in compliance reporting is to ________.
A) develop a common language for all accounting and business reports
B) avoid transparency so that financial data are kept confidential
C) ensure that only computer programs know the meaning of tagged concepts in reports
D) ensure that only humans know the meaning of tagged concepts in reports

Accepted Answer

The goal of using eXtensible Business Reporting Language (XBLR) in compliance reporting is to develop a common language for all accounting and business reports, making it easier for different organizations to communicate and compare financial data. It promotes transparency and standardization in financial reporting. Option B and C are incorrect because XBLR promotes transparency and is designed to be read by both computers and humans. Option D is also incorrect because XBLR is designed to be easily readable by both humans and computers.

Question 14

Which of the following is a function of the human capital management system?
A) optimizing labor schedules
B) planning terrestrial transport rounds
C) tracking all correspondence with customers
D) creating a centralized repository of customer contact information

Accepted Answer

The function of human capital management system is to optimize labor schedules by tracking employee time, attendance, leaves, and availability, as well as managing performance, training, and development. Choices B, C, and D are not related to human capital management.

Question 15

________ involves the automatic tagging of unusual events in financial transactions and is used to spot mistakes and fraudulent activities.
A) Exception reporting
B) Compliance reporting
C) Human capital management
D) Electronic data interchange

Accepted Answer

Exception reporting involves automatic identification of unusual events in financial transactions, which can help spot mistakes and fraudulent activities. Compliance reporting refers to monitoring whether the organization is following regulations and laws. Human capital management relates to managing human resources, such as hiring and payroll. Electronic data interchange refers to the computer-to-computer exchange of business documents in a structured format.

Question 16

Which of the following is the primary function of the International Accounting Standards Board (IASB)?
A) representing accountants employed in public sector companies around the world
B) representing accountants employed in public sector companies in developed countries
C) developing and promoting a single worldwide set of financial reporting standards
D) training professional accountants worldwide on ethical accounting practices

Accepted Answer

The primary function of the IASB is to develop and promote a single set of worldwide financial reporting standards. It aims to enhance financial reporting comparability across different countries and industries.

Question 17

The first targets of process improvements through integration of modules and creation of workflows in companies were ________.
A) financial analytics and financial reporting
B) general ledger and asset management
C) cash management and budget planning
D) procurement and accounts payable

Accepted Answer

Procurement and accounts payable were some of the initial targets for process improvements through integration of modules and creation of workflows in companies. This is because these processes involve a lot of manual work and are often prone to errors and inefficiencies. Streamlining these processes through automation can lead to significant cost savings and increased efficiency.

Question 18

Which of the following components of the HCM systems keep track of employee time and attendance, sick leave, vacation leave, and project assignments?
A) talent management applications
B) human resources management applications
C) service delivery modules
D) workforce management modules

Accepted Answer

Workforce management modules are responsible for managing employee time and attendance, leave requests, and project assignments. Talent management applications focus on employee development and performance management, while human resources management applications cover more general HR functions such as payroll and benefits administration. Service delivery modules are typically used for customer service interactions, not employee management.

Question 19

Which of the following components of the HCM systems would airport managers use for optimizing the task schedules of ground personnel?
A) talent management applications
B) service delivery modules
C) workforce management modules
D) human resources management applications

Accepted Answer

Airport managers would use workforce management modules to optimize the task schedules of ground personnel. Talent management applications are used for recruiting, developing, and retaining employees, while service delivery modules focus on customer service and support. Human resources management applications cover a broad range of HR functions, including payroll, benefits, and compliance.

Question 20

Which of the following is true of the eXtensible Business Reporting Language (XBRL)?
A) It reduces the transparency in a reporting process.
B) It makes data computer-readable.
C) It specializes only in financial reporting.
D) It has failed to advance over electronically delivered PDFs.

Accepted Answer

XBRL is a language for the electronic communication of business and financial data that makes data computer-readable. It enhances transparency in the reporting process by allowing users to easily analyze and compare information. It is not limited to financial reporting, as it can be used in various types of reporting, including sustainability and regulatory reporting. XBRL has advanced beyond electronically delivered PDFs and is widely used in financial reporting.

Quiz 5: Information Systems for the Enterprise

Consistency in a company's financial management system is maintained by ________.

The financial management system of a software company automatically updates the general ledger whenever there are any transactions in the company's accounts receivable and accounts payable. This is an example of the financial system's ________.

Which of the following organizations requires the most number of modules for their financial systems?

Modules such as budget planning, debt management, travel and expense management, and contracts management are typically included in a ________ management system.

Carrie, the finance manager of an insurance company, suspects some of the sales representatives of submitting their travel expenses receipts twice. Which of the following would help her spot such fraudulent submissions?

Exception reports that are generated by financial information systems help organizations primarily in ________.

Giving clear definitions and tags to financial terms using eXtensible Business Reporting Language (XBRL) makes data ________.

Which of the following is true of compliance reporting?

Which of the following components of the HCM systems is responsible for tracking employees' demographic information?

Which of the following activities is supported by financial management systems?

The goal of using XBRL in compliance reporting is to ________.

Which of the following is the central element of the human capital management (HCM) information system?

The goal of using eXtensible Business Reporting Language (XBLR) in compliance reporting is to ________.

Which of the following is a function of the human capital management system?

________ involves the automatic tagging of unusual events in financial transactions and is used to spot mistakes and fraudulent activities.

Which of the following is the primary function of the International Accounting Standards Board (IASB) ?

The first targets of process improvements through integration of modules and creation of workflows in companies were ________.

Which of the following components of the HCM systems keep track of employee time and attendance, sick leave, vacation leave, and project assignments?

Which of the following components of the HCM systems would airport managers use for optimizing the task schedules of ground personnel?

Which of the following is true of the eXtensible Business Reporting Language (XBRL) ?