Chapter 2 - True/False Flashcards
A. Turnaround documents are company output sent to an external party and returned as an input document
B. Data is one of a company’s most important resources but, to function properly, most organizations do not have to have the data readily and easily acccessible
c. Each type of entity possesses the same set of attributes or characteristics of interest
that are stored, but the specific data values for those attributes will differ depending on
the entity
d. Online data processing is almost always cheaper and more efficient than batch
processing
e. Reaping the potential benefits of ERP systems and mitigating their disadvantages
requires conscious effort and involvement by top management
ACE
Which of the following statements is (are) true?
a. The data capture or input process is usually triggered by a top management
decision.
b. With sequence codes, items are numbered consecutively to account for all items,
and missing items cause a gap in the numerical sequence.
c. Cumulative accounting information is stored in general and subsidiary journals.
d. Computers store data in a field; the fields containing data about entity attributes
constitute a record.
e. Updating done periodically, such as daily or weekly, is referred to as batch
processing.
BDE
Which of the following statements is (are) true?
a. Source data automation devices capture transaction data in paper form at the time
and place of their origin.
b. General ledgers are often used for accounts receivable, inventory, fixed assets,
and accounts payable.
c. Master files are permanent and exist across fiscal periods; individual master file
records may change frequently.
d. When choosing an ERP system, make sure it has a module for every critical company process and that you are not paying for modules that you do not need.
e. If an ERP system does not meet your needs, it can almost always be inexpensively
modified to meet your unique needs
CD
Which of the following statements is (are) true?
a. Using source data automation or well-designed turnaround documents and data entry
screens helps ensure captured data are accurate and complete.
b. If the sum of all subsidiary ledger account balances does not equal its general ledger
control account balance, a recording error has occurred.
c. Online, real-time processing updates transactions as they occur, helping ensure stored
information is current and useful in making decision.
d. It is usually best to let a user determine what data to input rather than have data input
screens list the data the user needs to enter.
e. A group code is derived from the description of the item and is usually easy to
memorize.
ABC
Which of the following statements is (are) true?
a. Online batch processing is where transaction data are entered, edited, and processed
as they occur.
b. ERP implementation costs for large companies with multiple sites are usually about
half the cost of the ERP user license.
c. Well-designed documents and screens improve accuracy and completeness by
providing instructions or prompts about what data to collect.
d. Data in ledgers is organized logically using coding techniques that assign numbers
or letters to items to classify and organize them.
e. In an ERP system, data entry controls such as validating data item and checking them
for accuracy at the time of initial entry are not needed.
CD
Which of the following statements is (are) true?
a. Input controls are improved by using pre-numbered source documents or by the
system automatically assigning a sequential number to each transaction.
b. With mnemonic codes, blocks of numbers are reserved for specific categories
of data.
c. As ERP modules do not automatically trigger additional actions in other modules,
it is less important to understand business processes and their interactions.
d. In an integrated ERP system, undetected data entry errors can automatically propagate
throughout the system.
e. A purchase to pay ERP module facilitates production scheduling, work-in-process,
quality control, cost management, and manufacturing processes.
d
Which of the following statements is (are) true?
a. To ensure credit sales policies are followed, the system can be programmed to check
a customer’s credit limit and payment history.
b. A transaction file contains records of individual business transactions and is similar to
a general ledger in a manual AIS.
c. An ERP system uses a centralized database to share information across business
processes and coordinate activities.
d. It is difficult for an ERP system to provide management with the up-to-date informa-
tion needed to plan, control, and evaluate an organization’s business.
e. Use of pre-numbered documents makes it harder to verify that all transactions have
been recorded and that none has been misplaced.
AC
Which of the following statements is (are) true?
a. A chart of accounts facilitates preparing financial statements because data stored in
individual accounts can easily be summed for presentation.
b. A database query can provide the information needed to deal with problems and
questions that need rapid action or answers.
c. Repetitive and frequently used database queries are usually developed by users;
one-time queries are usually developed by information systems specialists.
d. Transaction files are permanent and must be maintained for several years for backup
purposes.
e. A journal entry shows the accounts and amounts to be debited and credited.
BE
Which of the following statements is (are) true?
a. Transaction data are almost always recorded in a ledger before they are entered into a
journal.
b. Documents are records of transaction or other company data that can be printed out or
stored as electronic images in a computer.
c. ERP systems are not effective in integrating nonfinancial company operations with a
traditional accounting system.
d. Since batch processing data are current and accurate only immediately after process-
ing, it is used for applications that do not need frequent updating.
e. Well-designed screens improve accuracy and completeness by using checkoff boxes
or pull-down menus to present the available options.
gv
Which of the following statements is (are) true?
a. An audit trail is a transaction path through a data processing system from point of
origin to final output, but not backward from final output to point of origin.
b. The need for reports should be periodically assessed, because they are often prepared
long after they are needed, wasting time, money, and
resources.
c. An AIS has traditionally been referred to as a transaction processing system because
its only concern was financial data and accounting transactions.
d. Accountants and systems developers do not need to understand how data are captured,
organized, stored, processed, or accessed.
e. A master file, like a ledger in a manual AIS, stores cumulative information about an
organization.
BCE
