Shared Flashcard Set

Details

Accounting 320 Test 1 TF
Accounting TF
82
Accounting
Undergraduate 4
09/14/2013

Additional Accounting Flashcards

 


 

Cards

Term

Information is a business resource

Definition

 True

Term

An information system is an example of a natural system

Definition

False

Term

Transaction processing systems convert non-financial transactions into financial transactions.

Definition

False

Term

Information lacking reliability may still have value.

Definition

False

Term

A balance sheet prepared in conformity with GAAP is an example of discretionary reporting.

Definition

False

Term

The Management Reporting System provides the internal financial information needed to manage a business.

Definition

True

Term

Most of the inputs to the General Ledger System come from the Financial Reporting System.

 

Definition

False

Term

When preparing discretionary reports, organizations can choose what information to report and how to present it.

Definition

True

Term

Retrieval is the task of permanently removing obsolete or redundant records from the database

Definition

False

Term

Systems development represents 80 to 90 percent of the total cost of a computer system.

Definition

False

Term

The database administrator is responsible for the security and integrity of the database.

Definition

True

Term

A backbone system is completely finished, tested, and ready for implementation.

Definition

False

Term

The internal audito h the interests of third-party outsiders.

Definition

False

Term

Information Technology (IT) audits can be performed by both internal and external auditors.

Definition

True

Term

The single largest user of computer services is the personnel function.

Definition

False

Term

Increased control is one of the key advantages of distributed data processing.

Definition

False

Term

The flat-file approach is most often associated with so-called legacy systems.

Definition

True

Term

In a flat-file system, files are easily shared by users.

Definition

False

Term

Legacy systems were eliminated in the effort to make systems Y2K compliant.

Definition

False

Term

One of the greatest disadvantages of database systems is that all data is always available to all users.

Definition

False

Term

Under SOX legislation public accounting firms are no longer allowed to provide consulting services to audit clients.

Definition

True

Term

Under SOX legislation public accounting firms are no longer allowed to provide consulting services to their clients.

Definition

False

Term

Processing more transactions at a lower unit cost makes batch processing more effective than real-time systems.

Definition

True

Term

The process of acquiring raw materials is part of the conversion cycle.

Definition

False

Term

Directing work-in-process through its various stages of manufacturing is part of the conversion cycle.

Definition

True

Term

The portion of the monthly bill from a credit card compnay is an example of a turn-around document.

Definition

True

Term

The general journal is used to record recurring transactions that are similar in nature.

Definition

False

Term

Document flowcharts are used to represent systems at different levels of detail.

Definition

False

Term

Data flow diagrams represent the physical system.

Definition

False

Term

System flowcharts are often used to depict processes that are handled in batches.

Definition

True

Term

Program flowcharts depict the type of media being used (paper, magnetic tape, or discs) and terminals.

Definition

False

Term

System flowcharts represent the input sources, programs, and output products of a computer system.

Definition

True

Term

Program flowcharts are used to describe the logic represented in system flowcharts.

Definition

True

Term

Batch processing systems can store data on direct access storage devices.

Definition

True

Term

Backups are automatically produced in a direct access file environment.

Definition

False

Term

The box symbol represents a temporary file.

Definition

False

Term

Auditors may prepare program flowcharts to verify the correctness of program logic.

Definition

True

Term

A control account is a general ledger account which is suported by a subsidiary ledger.

Definition

True

Term

The most significant characteristic of direct access files is access speed.

Definition

True

Term

Real time processing is used for routine transactions in large numbers.

Definition

False

Term

Batch processing is best used when timely information is needed because this method processes data efficiently

Definition

False

Term

An inverted triangle with the letter "N" represents a file in "name" order.

Definition

False

Term

Real-time processing in systems that handle large volumes of transactions each day can create operational inefficiencies.

Definition

True

Term

Operational inefficiencies occur because accounts unique to many concurrent transactions need to be updated in real time.

Definition

False

Term

Operational inefficiencies occur because accounts common to many concurrent transactions need to be updated in real time.

Definition

True

Term

Batch processing of non-critical accounts improves operational efficiency.

Definition

True

Term

Batch processing of accounts common to many concurrent transactions reduces operational efficiency.

Definition

False

Term

The block code is the coding scheme most appropriate for a chart of accounts.

Definition

True

Term

Sequential codes may be used to represent complex items or events involving two or more pieces of related data.

Definition

False 

Term

Block codes restrict each class to a pre-specified range.

Definition

True

Term

For a given field size, a system that uses alphabetic codes can represent far more situations than a system with that uses numeric codes.

Definition

True

Term

Mnemonic codes are appropriate for items in either an ascending or descending sequence, such as the numbering of checks or source documents.

Definition

False

Term

The ethical principle of justice asserts that the benefits of the decision should be distributed fairly to those who share the risks.

Definition

True

Term

The ethical principle of informed consent suggests that the decision should be implemented so as to minimize all of the risks and to avoid any unnecessary risks.

Definition

False

Term

Employees should be made aware of the firm's commitment to ethics.

Definition

True

Term

Business ethics is the analysis of the nature and social impact of computer technology, and the corresponding formulation and justification of policies for the ethical use of such technology.

Definition

False

Term

Para computer ethics is the exposure to stories and reports found in the popular media regarding the good or bad ramifications of computer technology.

Definition

False

Term

Computer programs are intellectual property.

Definition

True

Term

Copyright laws and computer industry standards have been developed jointly and rarely conflict.

Definition

False

Term

Business bankruptcy cases always involve faudulent behavior.

Definition

False

Term

Defalcation is another word for financial fraud.

Definition

True

Term

The trend toward distributed data processing increases the exposure to fraud from remote locations.

Definition

True

Term

The external auditor is reponsible for establishing and maintaining the internal control system. 

Definition

False

Term

Segregation of duties is an example of an internal control procedure.

Definition

True

Term

Of the three fraud factors (situational pressure, ethics, and opportunity), situational pressure is the factor that actually facilitates the act.

Definition

False

Term

Preventive controls are passive techniques designed to reduce fraud.

Definition

True

Term

Ethical issues and legal issues are essentially the same.

Definition

False

Term

Internal control systems are recommended but not required of firms subject to the Sarbanes-Oxley Act.

Definition

False

Term

Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.

Definition

False.

Term

The Sarbanes-Oxley Act requires only that a firm keep good records.

Definition

False

Term

A key modifying assumption in internal control is that the internal control system is the responsibility of management. 

Definition

True

Term

Database management fraud includes altering, updating, and deleting an organization's data.

Definition

False

Term

While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients, they are not prohibited from performing such services for non-audit clients or privately held companies.

Definition

True

Term

The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.

Definition

True

Term

Section 404 requires that corporate management (including the CEO) certify their organization's internal controls on a quarterly and annual basis.

Definition

False

Term

Section 302 requires the management of public companies to assess and formally report on the effectiveness of their organization's internal controls.

Definition

False

Term

The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process.

Definition

True

Term

The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.

Definition

False

Term

Situational pressure includes personal or job related stresses that could coerce an individual to act dishonestly.

Definition

True

Term

Opportunity involves direct access to assets and/or access to information that controls assets.

Definition

True

Term

Cash larceny involves stealing cash from an organization before it is recorded on the organization's books and records.

Definition

False

Term

Skimming involves stealing cash from an organization after it is recorded on the organization's books and records.

Definition

False

Supporting users have an ad free experience!