Test Bank For Accounting Information Systems, 12 Edition Marshall B. Romney

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Test Bank For Accounting Information Systems, 12 Edition Marshall B. Romney

Accounting Information Systems, 12e (Romney/Steinbart)

Chapter 2   Overview of Transaction Processing and ERP Systems

1) What usually initiates data input into a system? 

A) The transaction system automatically checks each hour to see if any new data is available for input and processing. 

B) The performance of some business activity generally serves as the trigger for data input. 

C) A general ledger program is queried to produce a trial balance at the end of an accounting period. 

D) Data is only input when a source document is submitted to the accounting department.

2) An ERP system might facilitate the purchase of direct materials by all of the following except

A) selecting the best supplier by comparing bids.

B) preparing a purchase order when inventory falls to reorder point.

C) routing a purchase order to a purchasing agent for approval.

D) communicating a purchase order to a supplier.

3) Which of the following is not true about the accounts receivable subsidiary ledger?

A) Debits and credits in the subsidiary ledger must always equal.

B) Every credit sale is entered individually into the subsidiary ledger.

C) The total of the subsidiary ledgers must equal the control account.

D) The subsidiary ledgers play an important role in maintaining the accuracy of the data stored in the AIS.

4) Which of the following is not usually a consideration when designing a coding system?

A) Government regulations on coding systems

B) Standardization

C) Future expansion needs

D) Facilitating report preparation

5) The general ledger

A) summarizes the transactions in journals.

B) only includes balance sheet accounts.

C) is posted in total to the general journal.

D) is the initial place to record depreciation expense.

6) For a retail business, a delivery of inventory, from a vendor (with whom there is an established credit relationship) would be initially recorded in which type of accounting record as part of which transaction cycle?

A) purchases journal; expenditure cycle

B) general journal; expenditure cycle

C) general ledger; expenditure cycle

D) cash disbursements journal; production cycle

7) Which of the following statements regarding special journals is not true?

A) The balances in a special journal must always reconcile to the general ledger.

B) Special journals are used to record large numbers of repetitive transactions.

C) Special journals are periodically summarized and posted to the general ledger.

D) Special journals provide a specialized format for recording similar transactions.

8) Changing an employee’s hourly wage rate would be recorded in which file?

A) Employee master file

B) Employee transaction file

C) Payroll master file

D) Payroll transaction file

9) A typical source document could be 

A) in some paper form. 

B) a computer data entry screen. 

C) a notepad entry. 

D) both A and B 

10) Which step below is not considered to be part of the data processing cycle? 

A) data input 

B) feedback from external sources 

C) data storage 

D) data processing 

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