Question 1

One of the essential elements of a paper-based accounting system is the posting of data.

Accepted Answer

The answer of One of the essential elements of a...

Question 2

Which of the following defines a shipping transaction file in a computerized system?
A) A file that stores data about sales requiring more than one shipment
B) A file that stores data about purchases
C) A file that stores data about purchases requiring the receipt of more than one shipment
D) A file that stores data about sales

Accepted Answer

A shipping transaction file in a computerized system stores data about sales requiring more than one shipment. This helps the system keep track of which items have been shipped and which items are still pending. The file typically includes information such as the order number, customer name and address, items ordered, shipping dates, and tracking numbers.

Question 3

The general ledger master file stores information that supports both accounting and operating activities while the subsidiary ledger master files stores information that mainly supports accounting activities.

Accepted Answer

The answer of The general ledger master file stores information...

Question 4

An example of a source document is a receiving report.

Accepted Answer

A receiving report is an example of a source document because it is a document that provides information about the receipt of goods or services. Source documents are important for record-keeping and accounting purposes.

Question 5

A ledger lists transactions in chronological order and is considered "the book of original entry."

Accepted Answer

A journal lists transactions in chronological order and is considered "the book of original entry," while a ledger organizes these transactions by account.

Question 6

A bill of lading is a written contract between the shipper and the consignee.

Accepted Answer

A bill of lading is a legal document between the shipper of goods and the carrier detailing the type, quantity, and destination of the goods being carried.

Question 7

Four types of files in a computerized accounting system are scratch files, backup files, application files, and archive files.

Accepted Answer

The answer of Four types of files in a computerized...

Question 8

Some examples of elements of a paper-based accounting system include accounts, chart of accounts, ledgers, and outputs.

Accepted Answer

All of the listed elements (accounts, chart of accounts, ledgers, and outputs) are typically found in a paper-based accounting system.

Question 9

A bill of lading is a written contract between the shipper, the carrier engaged in the transportation of the goods, and the receiver of the goods.

Accepted Answer

A bill of lading is a document issued by a carrier to a shipper, detailing the type, quantity, and destination of the goods being carried. It serves as a shipment receipt when the carrier delivers the goods at the predetermined destination. It does not directly involve the receiver in the contract between the shipper and the carrier.

Question 10

As with general journals in a paper-based accounting system, the main purpose of subsidiary master files in a computerized system is to store detailed information about general control accounts.

Accepted Answer

Subsidiary master files store detailed information about specific subsidiary accounts, not general control accounts.

Question 11

A journal is a listing in chronological order that is created to record a particular type of transaction.

Accepted Answer

A journal is a record of transactions in chronological order. It records all the transactions in a single place before they are posted to the respective accounts in the ledger.

Question 12

Which of the following defines sales (customer) invoice?
A) A document that captures the data about a sale to a customer
B) A document that captures the data about a purchase from a vendor
C) A document used to bill a vendor
D) A written contract between a shipper and a carrier

Accepted Answer

A sales (customer) invoice captures the data about a sale to a customer.

Question 13

The source documents and outputs are very similar in paper-based and computerized accounting systems.

Accepted Answer

Whether paper-based or computerized, accounting systems have similar source documents such as invoices, receipts, and bank statements. The outputs, such as financial statements and reports, will also be similar in both systems. However, the main difference is in the method of data entry and processing.

Question 14

One of the essential elements of a paper-based accounting system is a chart of accounts.

Accepted Answer

A chart of accounts is a vital tool in a paper-based accounting system. It is a listing of all the accounts used by a company to record financial transactions. The chart of accounts provides the framework for organizing and reporting financial information in a consistent and standardized format. It helps to maintain accuracy, simplify data entry, and facilitate financial analysis and reporting.

Question 15

Which of the following are essential data elements in a customer master file?
A) Customer code, name, address, customer type, credit limit, credit terms, account balance beginning of year, year-to-date sales, year-to-date payments, amount owing
B) Vendor code, name, address, credit limit, credit terms, account balance, year-to date purchases, amount owed
C) Employee code, name, address, spouse/dependents, job skills, pay rate, birth date, deductions code, insurance
D) Security code, name, number of shares/units, purchase date, cost, interest/dividends received

Accepted Answer

The essential data elements in a customer master file include customer code, name, address, customer type, credit limit, credit terms, account balance beginning of year, year-to-date sales, year-to-date payments, and amount owing.

Question 16

An open file contains the data about transactions that have been started but cannot be fully processed until a subsequent event occurs.

Accepted Answer

This describes a typical scenario for a transaction log file, which records partially completed transactions until they can be fully committed or rolled back.

Question 17

Which of the following defines a cash receipts prelist?
A) A written contract between the shipper and the carrier
B) A list of transactions in chronological order
C) An element in an accounting system to classify monetary measurements
D) A record (by date) of all cash receipts

Accepted Answer

A cash receipts prelist is a record of all cash receipts, organized by date. It is typically prepared in advance of depositing the cash into a bank account, and is used to reconcile the bank statement and ensure that all receipts have been accounted for.

Question 18

The major difference in outputs from a computerized system and a paper-based system is the number and speed with which outputs from a computerized system can be generated.

Accepted Answer

Computerized systems can generate outputs at a much faster rate than paper-based systems, leading to greater efficiency and productivity.

Question 19

Which of the following statements is NOT correct?
A) In batch posting, the master and open file records are up to date only after posting is completed.
B) Batch posting is more expensive than real-time posting.
C) Batch posting is best done when there is no conflicting activity on the system.
D) With batch posting, a user can print a proof list of the transaction file before posting to try to catch errors.

Accepted Answer

Batch posting is generally less expensive than real-time posting as it can be scheduled during off-peak hours when system activity is low, reducing the load on the system.

Question 20

As accountants, we are interested in how a file is organized in a logical, or conceptual, sense as opposed to the how the file is organized physically.

Accepted Answer

Accountants focus on the logical or conceptual organization of a file, rather than the physical organization.

Quiz 3: Essential Elements and Basic Activities of Accounting Systems