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Periodic account reconciliations are a control that can be used to reduce the risk of employees creating unauthorized adjusting entries.

A) True
B) False

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XBRL stands for


A) extensible business reporting language.
B) external business reporting ledgers.
C) external business reporting language.
D) extensive business report logic.

E) C) and D)
F) B) and C)

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Which of the following are used to document entries made to update the general ledger?


A) general journal
B) subsidiary journal
C) subsidiary ledgers
D) journal vouchers

E) B) and C)
F) C) and D)

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Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The amounts debited and credited are not equal.Please correct and try again." This is an example of a


A) validity check.
B) field check.
C) zero-balance check.
D) completeness test.

E) A) and D)
F) A) and C)

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Each specific data item in an XBRL document is called a(n)


A) taxonomy.
B) element.
C) instance.
D) schema.

E) B) and C)
F) All of the above

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Adjusting entries that are made to counteract the effects of errors found in the general ledger are called


A) accruals.
B) corrections.
C) deferrals.
D) estimates.

E) B) and C)
F) All of the above

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What control procedure(s) should be used to reduce the risk of unauthorized disclosure of the financial statements?


A) Multifactor authentication.
B) Physical security.
C) Encryption.
D) All of the above.

E) B) and C)
F) A) and B)

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Identify the most correct statement with regard to how the various accounting subsystems update the general ledger.


A) Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours.
B) Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger.
C) The controller or treasurer must approve accounting subsystem journal entries before any updating may occur.
D) Nonroutine transactions are entered into the system by the treasurer's office.

E) A) and D)
F) A) and C)

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A major way in which IFRS differs from GAAP that will affect the design of a company's general ledger and reporting system is an IFRS principle known as


A) componentization.
B) monetization.
C) securitization.
D) centralization.

E) A) and B)
F) C) and D)

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Which type of graph is the most commonly used to display trends in financial data?


A) Pie chart.
B) Scatterplot chart.
C) Bar chart.
D) Stochastic chart.

E) B) and C)
F) A) and D)

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Not all journal entries affect cash flow.Adjusting entries that reflect events that have already occurred,but have no effect on cash,are classified as


A) accruals.
B) deferrals.
C) revaluations.
D) corrections.

E) A) and B)
F) B) and C)

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Which item below is not considered a major input to the general ledger and reporting system?


A) summary entries from the major subsystems
B) reports from managers
C) adjusting entries
D) financing and investing activities

E) C) and D)
F) B) and D)

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At a minimum,a switch to IFRS from GAAP will affect companies' accounting information system by


A) requiring companies to increase the processing power of their existing accounting information systems.
B) requiring IT departments to hire programmers that are fluent in languages besides English.
C) requiring the creation of additional fields in research and development (R&D) records to capture information about the stage of research and development that costs are incurred in.
D) requiring firms to completely redesign their existing accounting information systems because current systems are not compatible with IFRS accounting principles.

E) A) and B)
F) B) and C)

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One way of ensuring that recurring adjusting journal entries are made each month would be to


A) make all the entries a month in advance.
B) rotate the responsibility among the accounting staff.
C) program the entries to be made automatically.
D) create a standard adjusting journal entry file.

E) B) and D)
F) B) and C)

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Which of the following balanced scorecard dimensions provides measures on new products?


A) Financial.
B) Internal operations.
C) Innovation and learning.
D) Customer.

E) A) and B)
F) B) and D)

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Marina Filimena is an accountant at Jasmina Hair Products.Marina received the following error message while making an adjusting entry to the general ledger: "The account number referenced in your journal entry does not exist.Create a new account?" This is an example of a


A) validity check.
B) closed loop verification.
C) zero-balance check.
D) completeness test.

E) B) and C)
F) None of the above

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Standard XBRL taxonomies can cover most accounting situations.

A) True
B) False

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Adjusting entries that are made to reflect differences between the actual and recorded value of an asset or a change in accounting principle are called


A) reconciliations.
B) revaluations.
C) estimates.
D) accruals.

E) A) and D)
F) A) and C)

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The balanced scorecard attempts to solve what major issue associated with traditional accounting reports?


A) Traditional accounting reports focus too narrowly on financial performance.
B) Traditional accounting reports are not easily understood by non-accountants.
C) Traditional accounting reports are expensive to produce.
D) Traditional accounting reports are produced too slowly to provide value.

E) None of the above
F) C) and D)

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Which of the following tasks are facilitated by maintaining a strong and secure audit trail?


A) Tracing a transaction from original source document to the general ledger to a report.
B) Tracing an item in a report back through the general ledger to the original source document.
C) Tracing changes in general ledger accounts from beginning to ending balances.
D) All of the above are facilitated by the audit trail.

E) All of the above
F) B) and C)

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