Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  reconciliations.
B)  revaluations.
C)  estimates.
D)  accruals.E) None of the above
F) B) and C)

Question 3

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

Accepted Answer

A)  taxonomy.
B)  element.
C)  instance.
D)  schema.E) C) and D)
F) All of the above

Question 4

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

Accepted Answer

A)  validity check.
B)  closed loop verification.
C)  zero-balance check.
D)  completeness test.E) All of the above
F) A) and D)

Question 5

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

Accepted Answer

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) B) and D)
F) All of the above

Question 6

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

Accepted Answer

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

Question 7

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

Accepted Answer

A)  accruals.
B)  deferrals.
C)  revaluations.
D)  corrections.E) A) and B)
F) A) and C)

Question 8

Standard XBRL taxonomies can cover most accounting situations.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

A)  accruals.
B)  corrections.
C)  deferrals.
D)  estimates.E) B) and C)
F) A) and D)

Question 11

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

Accepted Answer

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) B) and D)
F) None of the above

Question 12

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

Accepted Answer

A)  componentization.
B)  monetization.
C)  securitization.
D)  centralization.E) A) and D)
F) B) and D)

Question 13

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

Accepted Answer

A)  validity check.
B)  field check.
C)  zero-balance check.
D)  completeness test.E) C) and D)
F) None of the above

Question 14

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

Accepted Answer

A)  general journal
B)  subsidiary journal
C)  subsidiary ledgers
D)  journal vouchersE) A) and B)
F) A) and C)

Question 15

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

Accepted Answer

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 C)
F) A) and D)

Question 16

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

Accepted Answer

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) A) and C)
F) None of the above

Question 17

XBRL stands for

Accepted Answer

A)  extensible business reporting language.
B)  external business reporting ledgers.
C)  external business reporting language.
D)  extensive business report logic.E) All of the above
F) C) and D)

Question 18

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

Accepted Answer

A)  summary entries from the major subsystems
B)  reports from managers
C)  adjusting entries
D)  financing and investing activitiesE) None of the above
F) All of the above

Question 19

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

Accepted Answer

A)  Pie chart.
B)  Scatterplot chart.
C)  Bar chart.
D)  Stochastic chart.E) B) and D)
F) None of the above

Question 20

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

Accepted Answer

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

Exam 16: General Ledger and Reporting System

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Standard XBRL taxonomies can cover most accounting situations.

Correct AnswerverifiedShow Answer

XBRL stands for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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