Question 1

The general journal is used to record recurring transactions that are similar in nature.

Accepted Answer

The general journal is used to record unique or non-recurring transactions that do not fit into other specialized journals such as the sales journal, purchases journal, or cash receipts journal.

Question 2

Auditors may prepare program flowcharts to verify the correctness of program logic.

Accepted Answer

Program flowcharts can help auditors identify potential errors in program logic and ensure that all functions and steps are properly documented and accounted for.

Question 3

The most significant characteristic of direct access files is access speed.

Accepted Answer

Direct access files allow for quick and easy access to specific sections of a file, rather than having to read through the entire file sequentially. This results in faster access speeds compared to sequential access files.

Question 4

Batch processing is best used when timely information is needed because this method processes data efficiently.

Accepted Answer

Batch processing is not ideal for situations where timely information is needed as it processes data in batches rather than in real-time. It's best used when large amounts of data need to be processed efficiently, such as end-of-day banking transactions or payroll processing.

Question 5

A control account is a general ledger account which is supported by a subsidiary ledger.

Accepted Answer

A control account summarizes information from a subsidiary ledger, which contains detailed information about specific transactions.

Question 6

Batch processing systems can store data on direct access storage devices.

Accepted Answer

Batch processing systems are capable of storing data on direct access storage devices (DASD) such as hard disk drives, solid-state drives, and optical disc drives for efficient and faster access.

Question 7

System flowcharts represent the input sources,programs,and output products of a computer system.

Accepted Answer

System flowcharts indeed represent the input sources, programs, and output products of a computer system. They depict the flow of data and the sequence of operations that take place within a system. The flowchart allows developers, analysts, and other stakeholders to understand and analyze the system's behavior and identify potential bottlenecks or areas for improvement.

Question 8

Data flow diagrams represent the physical system.

Accepted Answer

Data flow diagrams represent the functional aspects of a system, not the physical aspects. They show how data moves through a system and how processes transform that data. The physical components of the system are not represented in a data flow diagram.

Question 9

An inverted triangle with the letter "N" represents a file in "name" order.

Accepted Answer

An inverted triangle with the letter "N" typically represents sorting in descending order by name, not merely "name" order.

Question 10

Selecting a specific record from a master file containing millions of records requires a direct access file environment.

Accepted Answer

A direct access file environment allows for fast retrieval of specific records based on their unique identifier, such as a key field. This is necessary for efficiently selecting a single record from a massive master file with millions of records.

Question 11

Document flowcharts are used to represent systems at different levels of detail.

Accepted Answer

The answer of Document flowcharts are used to represent systems...

Question 12

The portion of the monthly bill that the customer returns to the credit card company with the payment is an example of a turnaround document.

Accepted Answer

This statement is true. A turnaround document is a document that is created by one department or company and then sent to another department or company, who then completes the document and sends it back to the original department or company. In this case, the credit card company creates the monthly bill and sends it to the customer, who then completes the payment portion of the bill and sends it back to the credit card company, thus making it a turnaround document.

Question 13

Program flowcharts depict the type of media being used (paper,magnetic tape,or disks)and terminals.

Accepted Answer

Program flowcharts depict the sequence of steps and decision points in a program's logic. They do not typically depict the type of media being used or terminals.

Question 14

Directing work-in-process through its various stages of manufacturing is part of the conversion cycle.

Accepted Answer

Directing work-in-process through its various stages of manufacturing is an essential part of the conversion cycle.

Question 15

Program flowcharts are used to describe the logic represented in system flowcharts.

Accepted Answer

Program flowcharts depict the logical flow of the programming code, whereas system flowcharts depict the flow of data and control between system elements. The two types of flowcharts serve different purposes.

Question 16

System flowcharts are often used to depict processes that are handled in batches.

Accepted Answer

System flowcharts are commonly used to illustrate batch processing workflows.

Question 17

Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems.

Accepted Answer

Batch processing allows multiple transactions to be processed at once, which can lead to a lower unit cost compared to real-time systems that process transactions as they happen. This is because real-time systems require more resources to process each transaction individually, whereas batch processing can efficiently handle a large volume of transactions at once, resulting in a lower unit cost per transaction.

Question 18

The box symbol represents a temporary file.

Accepted Answer

The box symbol typically represents a placeholder or a container, but it does not necessarily represent a temporary file.

Question 19

Real-time processing is used for routine transactions in large numbers.

Accepted Answer

The answer of Real-time processing is used for routine transactions...

Question 20

The process of acquiring raw materials is part of the conversion cycle.

Accepted Answer

The process of acquiring raw materials is part of the procurement cycle, not the conversion cycle. The conversion cycle involves transforming these raw materials into finished goods.

Quiz 2: Introduction to Transaction Processing