Worksheetsquiz for R.E.A
Total questions: 80
Worksheet time: 40mins
Each account in the chart of accounts has a separate record in the general ledger master file
true
false
Financial statements are prepared from the
general ledger
adjusted trial balance
trial balance
general journal
In most cases intangible decision criteria can be quantified.
True
False
The Management Reporting System is a nondiscretionary system.
True
False
Primary recipients of financial statement information are internal management
True
False
What account appears on the post closing trial balance
interest income
income summary
machinery
rent expense
When evaluating decision alternatives, one option is to take no action
True
False
Entries into the General Ledger System (GLS) can be made using information from
a journal voucher which represents a single, unusual transaction
all of the above
journal voucher which represents a summary of similar transactions
the general journal
The responsibility center file is primarily used by the Financial Reporting System
True
False
Risk exposures in the General Ledger and Financial Reporting Systems include all of the following except
unauthorized access to the general ledger
general ledger account out of balance with the subsidiary account
loss of physical assets
loss of the audit trail
Which statement is not true?
Journal vouchers offer a degree of control against unauthorized general ledger entries
A journal voucher can be used to represent summaries of similar transactions or a single unique transaction
Journal vouchers are not used to make adjusting entries and closing entries in the general ledger
The journal voucher is the only source of input into the general ledger.
Individuals with access authority to general ledger accounts should not prepare journal vouchers.
True
False
Which statement is not correct?
one purpose of preparing the unadjusted tal balance is to ensure that debits equal credits
financial statements are prepared based on the unadjusted trial balance
the unadjusted that balance reports control account balances but omits subsidiary ledger detail
the post-closing trial balance reports the ending balance of each account in the
general edger
Which steps in the Financial Accounting Process are in the correct sequence?
record the transaction, prepare the unadjusted trial balance, record adjusting journal entries, record closing entries, prepare financial statements
record the transaction, post to the ledger, record adjusting entries, prepare the unadjusted trial balance, prepare financial statements
record the transaction post to the ledger, prepare the adjusted trial balance, enter adjusting entries, prepare financial statements
record the transaction post to the ledger, prepare the adjusted trial balance, prepare
financial statements, record closing entries
Which statement is not correct? The general ledger master file
based on the firm's chart of account
contains a record for control accounts
an output of the Financial Reporting System (FRS)
supplies information for management decision making
Management reporting is often called discretionary reporting because it is not mandated as is financial reporting
False
true
The journal voucher is the document that authorizes entries to be made to
the general ledger
False
True
Which report is not an output of the Financial Reporting System (FRS)?
variance analysis report
comparative balance sheet
statement of cash flows
tax return
The most common means of making entries in the general ledger is via the journal voucher
true
false
What type of data is found in the general ledger master file
the balance of each account in the chart of accounts
subsidiary details supporting control account
a chronological record of all transactions
budget records for each account in the chart of accounts
REA modeling embraces two classes of events: economic events and support events.
true
false
The concept of duality means that a REA diagram must consist of: *
two agents, one of them internal and the other external
two resources, one increased and the other decreased by the same event
none of these
two events, one of them economic the other support
According to the REA philosophy, information systems should support only the needs of accounting professionals.
false
true
In REA resources are assets that include accounts receivable.
false
true
Which of the following are characteristics of internal agents?
All of the above
They participate in economic events, but do not assume control of the resources
They participate in economic events, but not in support events
They are employees of the company whose system is being modeled
The 'E' in REA stands for
economics
events
estimates
entities
All of the following are examples of economic events except
receiving raw materials from a supplier
disbursing cash for inventories received
shipping product to a customer
checking a customer's credit prior to processing a sales order
At least two REA agents participate in each an economic event."
false
true
In a REA diagram each economic event is always
linked to another economic event
linked to at least two resource entities
linked to two internal agents
linked to two external agents
Modern managers need both financial and nonfinancial information that
traditional GAAP-based accounting systems are incapable of providing
true
false
The events depicted on an REA diagram are transformed into computer processes while the resources and agents become relational database
tables.
true
false
Under the REA approach support events may directly affect a change in resources.
true
false
Many believe that the accounting profession should shift away from financial statement reporting toward providing information that assists
decision-making.
true
false
Which of the following is true?*
ER diagrams present a static picture of the underlying business phenomena
Events entity names in REA diagrams are in the verb form
REA diagram entities are arranged in constellations by entity class.
All of these
Which statement is NOT true? REA resources are:
affected by support events
scarce
assets
under the control of agents
Which of the following events would be least likely to be modeled in a REA
diagram?
sales to a customer
posting accounts payable
customer inquires
receiving cash
An example of an economic event is checking customer credit prior to
processing a sale.
false
true
The 'R' in REA stands for
ratios
reserves
resources
relationships
The 'A' in REA stands for
apportionment
allocation
agents
assets
The REA model is an alternative accounting framework for modeling an organization's critical resources, events, and accounts.
true
false
Cement and petrochemicals are produced by the batch manufacturing method.
true
false
Which process creates a homogeneous product through a continuous
series of standard procedures?
Make-to-order process
none of these
batch process
Continuous Processing
The philosophy of customer satisfaction permeates the world-class firm
true
false
The bill of materials specifies the types and quantities of the raw materials and subassemblies used in producing a single unit of finished product.
true
false
A move ticket
specifies the materials and production required for each batch
authorizes the storekeeper to release materials to work centers
records the work done in each work center
is the formal plan and authority to begin production
Batch processing creates a homogeneous product through a continuous
series of standard procedures.
true
false
Move tickets authorize the storekeeper to release materials to work
centers
true
false
The cost accounting system authorizes the release of raw materials into
production
true
false
When one of the following statements is true?
ERP evolved directly from MPP
MRP II evolved from MRP and MRP evolved into ERP
None of these
ERP evolved into MRP and MRP evolved into MRP
Reports generated by the cost accounting system include performance
reports and budget reports
true
false
A purchase requisition authorizes the storekeeper to release materials to
Individuals or work centers in the production process
true
false
An example of a continuous process is the production of
wedding invitations
all of these
jet aircraft
milk products
The work-in-process file is the subsidiary ledger for the work-in-process control account.
true
false
All of the following are characteristics of batch processing except
setting up and retooling is required for different batches
each item in the batch is similar
batches are produced to replenish depleted inventory levels
batches are produced in accordance with detailed customer specifications
The internal control significance of the excess materials requisition is that it
indicates the amount of material released to work centers
identifies materials used in production that exceed the standard amount allowed
indicates the standard quantities required for production
documents the return to raw materials inventory of unused production materials
Which function is not a part of the batch production process?
Perform cost accounting
Prepare purchase orders
Maintain inventory control
Plan and control production
The production schedule is
the expected demand for the firm's finished goods for a given year
the sequence of operations during manufacturing
the formal plan and authority to begin production
a description of the type and quantity of raw materials and subassemblies used to produce a single unit of finished product
Which statement is true?
World-class companies must maintain strategic agility and be able to turn on a dime
Manufacturing firms that achieve world-class status do so by following a philosophy of lean manufacturing
All of these are true
World-class companies motivate and treat employees like appreciating assets.
The purpose of the cost accounting system is to
direct the movement of work-in-process
authorize release of raw materials
produce information for inventory valuation
determine material requirements
The objective of the Economic Order Quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs.
true
false
Users access the database
all of these
by direct query
by developing operating software
by constantly interacting with systems programmers
In the relational model, a data element is called a relation.
true
false
A description of the physical arrangement of records in the database is
the conceptual view
the subschema
the internal view
the external view
The task of searching the database to locate a stored record for processing is called
data attribution
data retrieval
data storage
data deletion
To the user, data processing procedures for routine transactions, such as entering sales orders, appear to be identical in the database environment and in the traditional environment.
true
false
An important feature associated with the traditional approach to data management is the ability to produce ad hoc reports.
true
false
There is more than one conceptual view of the database
true
false
Which of the following may provide many distinct views of the database?
the conceptual view
the internal view
the user view
the schema
A customer name and an unpaid balance is an example of a one-to-many
relationship.
true
false
The textbook refers to four interrelated components of the database
concept. Which of the following is not one of the components?
he physical database
the database administrator
the database management system
the conceptual database
The database approach to data management is sometimes called the flat file approach.
true
false
Which of the following is not a problem usually associated with the flat-file 2 poin approach to data management?
data redundancy
restricting access to data to the primary user
currency of information
data storage
Which characteristic is not associated with the database approach to data
management?
the ability to process data without the help of a programmer
the ability to control access to the data
constant production of backups
the inability to determine what data is available
The data definition language is used to insert special database commands
into application programs.
true
false
Which characteristic is associated with the database approach to data management?
excessive storage costs
data sharing
data redundancy
multiple storage procedures
In the database method of data management, access authority is maintained by systems programming.
true
false
Which of the following is not a responsibility of the database management system?
ensure that the internal schema and external schema are consistent
provide an interface between the users and the physical database
provide security against a natural disaster
authorize access to portions of the database
The physical database is an abstract representation of the database.
true
false
The database management system provides a controlled environment for
accessing the database.
true
false
All of the following are basic data management tasks except
data deletion
data retrieval
data storage
data attribution
