prelims

Question 1

Agreement between two entities to exchange goods or services or other events that can be measured in economic terms.

Answer 1

Transaction

Question 2

Involves transactions with customers.

Answer 2

Revenue cycle

Question 3

Involves interactions with suppliers.

Answer 3

Expenditure cycle

Question 4

When raw materials and labor are transformed into finished goods.

Answer 4

Production cycle

Question 5

When employees are trained, hired, paid, evaluated, promoted, their benefits, and terminated.

Answer 5

Payroll cycle

Question 6

Involves interactions with investors and creditors.

Answer 6

Financing cycle

Question 7

To efficiently and effectively process the data about a company’s transactions.

Answer 7

Data processing

Question 8

Data is entered into paper journals and ledgers

Answer 8

Manual systems

Question 9

Series of operations performed on data.

Answer 9

Computer-based systems

Question 10

Any data or instructions you enter into a computer.

Answer 10

Data input

Question 11

What data input is about:

Answer 11

events, esources, agents

Question 12

Manipulating input (data) to produce output (information

Answer 12

Data process

Question 13

When data has been processed into information

Answer 13

Data output

Question 14

Recording data in the journal

Answer 14

Data storage

Question 15

Ways to improve data input

Answer 15

Turnaround documents, source data automation, well-designed source documents data entry screens, using pre-numbered documents

Question 16

When the customer account number is coded on the document in machine-readable form, reduces the probability of human error in applying the check to the correct account.

Answer 16

Turnaround documents

Question 17

Captures data with minimal human intervention.

Answer 17

Source data automation

Question 18

File used to store cumulative information about resources and agents.

Answer 18

Ledger

Question 19

Where we keep track of the beginning balance, increases, decreases, an ending balance for each asset, owner’s equity, revenue, expense, gain, loss, and dividend account

Answer 19

T-accounts

Question 20

Summary level information for all accounts.

Answer 20

General ledger

Question 21

Contains detail accounts associated with related general ledger account.

Answer 21

Subsidiary ledger

Question 22

Group coding schemes are often used in assigning general ledger accounts.

Answer 22

Coding techniques

Question 23

List of general ledger accounts an organization uses.

Answer 23

Chart of accounts

Question 23

First place that transactions are entered

Answer 23

Journals

Question 24

Sufficient documentation to allow the tracing of a transaction from beginning to end or vice versa.

Answer 24

Audit trail

Question 25

Special Journals

Answer 25

Routine transactions are recorded, transactions are totaled, individual line items are posted in subsidiary ledgers.

Question 26

General ledgers

Answer 26

non-routine transactions are recorded, summary entries, items are posted on the general ledger account.

Question 27

Something about which information is stored.

Answer 27

Entity

Question 28

Characteristics of interest with respect to the entity.

Answer 28

Attributes

Question 29

Physical space where an attribute is stored.

Answer 29

Field

Question 30

The set of attributes stored for a particular instance of an entity.

Answer 30

Record

Question 31

Intersection of the row and column.

Answer 31

Data value

Question 32

Group of related records

Answer 32

File

Question 33

File that stores cumulative information about the organization's entities

Answer 33

Master file

Question 34

File that contains records of individual transactions that occur in a fiscal period.

Answer 34

Transaction file