ACCT 427 - CH.1 &2 EXAM QUESTIONS
WITH VERIFIED ANSWERS { GRADED
A+}
A company in the insurance industry would least likely have activities in which
business process cycle? - ✔✔Production
Which types of screens are accessed more frequently to record journal entries? -
✔✔Documents screens
Why are documents screens more commonly used over journal entry screens?
Select all that apply. - ✔✔They capture more details about the transaction and
they are less confusing for users of the AIS who do not understand debits and
credits
Why should a Clerk have the type of access it has within the AIS? - ✔✔They are
less experienced and therefore their work should be reviewed and approved by a
supervisor.
,A teaching assistant helps grade homework assignments. After they are done
grading, the instructor reviews the grading for accuracy and releases grades. The
teaching assistant in the course has what kind of segregation of duties category? -
✔✔Recording.
I have controls in place related to the risk that grading errors occurred on an exam
and were recorded incorrectly in the gradebook. One of the controls I have related
to this risk is that I utilize a rubric while I'm grading by hand, which specifies the
amount of points to award or deduct for each question, depending on the answers.
Which of the following best describes this control? - ✔✔Preventative; manual
What data type would this be considered: The attendance record of all students
who attended class on the second day of class. - ✔✔Transactional data
Why is master data considered high risk? - ✔✔Because if it is inaccurate, it can
affect many transactions
Which of the following statements about ERP's is true? - ✔✔An ERP software
will have more features than an AIS software.
Is SAP generally considered an ERP? - ✔✔Yes
, Which of the following statements about Chapter 1 & 2 content is true? - ✔✔A
report may be relatively incomplete if a system uses batch processing (depending
on the timing of report and when a batch was last run) rather than real-time
processing.
What is the revenue cycle? - ✔✔Goods and services are sold for cash or promise
to pay to receive cash.
What is the expenditure cycle? - ✔✔Purchases of inventory for resale or raw
materials use to produce products in exchange for cash or a future promise to pay.
What is the production cycle? - ✔✔Raw materials are transformed into finished
goods.
What is the HR/Payroll cycle? - ✔✔employees are hired, trained, compensated,
evaluated, promoted, and terminated.
What is the financing cycle? - ✔✔companies issues shares/extend ownership in
the company to investors and borrow money and lenders, where investors are paid
dividends and interest is paid on loans.
WITH VERIFIED ANSWERS { GRADED
A+}
A company in the insurance industry would least likely have activities in which
business process cycle? - ✔✔Production
Which types of screens are accessed more frequently to record journal entries? -
✔✔Documents screens
Why are documents screens more commonly used over journal entry screens?
Select all that apply. - ✔✔They capture more details about the transaction and
they are less confusing for users of the AIS who do not understand debits and
credits
Why should a Clerk have the type of access it has within the AIS? - ✔✔They are
less experienced and therefore their work should be reviewed and approved by a
supervisor.
,A teaching assistant helps grade homework assignments. After they are done
grading, the instructor reviews the grading for accuracy and releases grades. The
teaching assistant in the course has what kind of segregation of duties category? -
✔✔Recording.
I have controls in place related to the risk that grading errors occurred on an exam
and were recorded incorrectly in the gradebook. One of the controls I have related
to this risk is that I utilize a rubric while I'm grading by hand, which specifies the
amount of points to award or deduct for each question, depending on the answers.
Which of the following best describes this control? - ✔✔Preventative; manual
What data type would this be considered: The attendance record of all students
who attended class on the second day of class. - ✔✔Transactional data
Why is master data considered high risk? - ✔✔Because if it is inaccurate, it can
affect many transactions
Which of the following statements about ERP's is true? - ✔✔An ERP software
will have more features than an AIS software.
Is SAP generally considered an ERP? - ✔✔Yes
, Which of the following statements about Chapter 1 & 2 content is true? - ✔✔A
report may be relatively incomplete if a system uses batch processing (depending
on the timing of report and when a batch was last run) rather than real-time
processing.
What is the revenue cycle? - ✔✔Goods and services are sold for cash or promise
to pay to receive cash.
What is the expenditure cycle? - ✔✔Purchases of inventory for resale or raw
materials use to produce products in exchange for cash or a future promise to pay.
What is the production cycle? - ✔✔Raw materials are transformed into finished
goods.
What is the HR/Payroll cycle? - ✔✔employees are hired, trained, compensated,
evaluated, promoted, and terminated.
What is the financing cycle? - ✔✔companies issues shares/extend ownership in
the company to investors and borrow money and lenders, where investors are paid
dividends and interest is paid on loans.
