AIS Ch 7 – Flashcards

In class Quiz

1. The financial accounting cycle ends with: a) The production of financial statement b) The production of a post closing trial balance c) The production of an adjusted trial balance d) Development of cash forecasts

2. The sales process begins with: a) Placing an order with a vendor b) A customer order for good or services c) Production of goods or services d) Delivery of goods or services

3. Which source document is used to request goods? a) Purchase order b) Shipping notice c) Purchase requisition d) Sales order

4. The bill of lading: a) Reflects freight charges on goods shipped b) Signifies release of goods for shipment to customers c) Is sent to the customer with the purchase invoice d) Is used to control inventory

5. Which of the following statements best describes business process outsourcing? a) A company focuses on its core business processes and contracts with another firm to do the other processes b) Companies frequently outsource core business processes c) Due to networked enterprises and advanced technology, more employees may work from their homes or alternate locations d) Initially, companies engaged in business process outsourcing offered employees more opportunities to travel and more career choices for advancement

6. An important input to the sales process is: a) A customer sales order b) The cash forecast c) Aged accounts receivable information d) A receiving report

7. Which of the following is not an objective of the purchasing process? a) Inventory control b) Fastest possible processing of payments to vendors c) Maintaining vendor records d) Forecasting cash outflows

8. All of the following are inputs (source documents) to the purchasing process except: a) Purchase order b) Vendor listing c) Bill of lading d) All of the above are source documents to the purchasing process

9. Networked enterprises and globalization have enabled a new business model called "business-without-boundaries." Which of the following statements describes this business model? a) Companies no longer have all of their employees in one location b) It is called off-shoring and companies contract with firms in other countries to do such business processes as human resources, payroll, and accounting c) Companies are under a great deal of scrutiny to manage costs and generate revenue so they contract with foreign firms to do various business processes at a lower cost to the company d) All of the above statements describe this model

10. In the sales process, in an online environment, ____ occurs before _____. a) Customer payment, customer order b) Customer payment, shipping notice c) Vendor order, vendor payment d) Work in process, finished goods

Textbook Quiz

Q7-1. Which of the following provides the organizational structure for the general ledger? a. Special journals b. A source document c. General journals d. The chart of accounts

Q7-2. AISs often depend on codes to record, classify, store, and retrieve financial data. Which of the following codes is a group of numbers reserved for particular uses? a. Block codes b. Mnemonic codes c. Alphanumeric codes d. Numeric codes

Q7-3. AIS reports should be consistent in at least three ways. Which of the following is not one of those ways? a. over time b. Across firms c. Across departmental or divisional levels d. With general accounting practice

Q7-4. ______ is (are) a collection of activities or flow of work in an organization that creates value. a. An economic event b. Accounting transactions c. A business process d. A chart of accounts

Q7-5. Which of the following is not an objective of the sales process? a. Controlling inventory b. Tracking sales of goods and/or services to customers c. Billing for goods and services d. Forecasting sales and cash recipts

Q7-6. Which of the following report(s) is (are) common to both the sales and the purchasing processes? a. Cash receipts forecast and cash requirements forecast b. Financial statement information c. Discrepancy reports and bad dept report d. None of the above

Q7-7. Which of the following source document(s) is (are) common to both the sales and the purchasing processes? a. Debit/credit memorandum b. Financial statement information c. Discrepancy reports and bad debt report d. None of the above

Q7-8. Which of the following business processes is most often targeted for offshoring? a. Janitorial services b. Landscaping maintenance c. Information technology d. Employee training

Q7-9. If a manager wanted to sort out any differences between quantities or amounts on the purchase order, the receiving report, and the purchase invoice, which of the following AIS reports would be most useful? a. A purchase analysis report b. An inventory control report c. A check register report d. A discrepancy report

Q7-10. Which of the following would be most helpful for a university to manage course enrollments? a. A supply chain report b. CRM software c. BPO d. BPM software

Q7-11. Which of the following is a relatively new way to manage inventory? a. A purchase analysis report b. RFID tags c. BPM software d. An inventory register