BIS 247s Chapter 3 – Flashcards
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___ is concerned with recording the financial impacts of business processes as they are executed.
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Financial Accounting (FI)
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Which of the following is a KEY process in financial accounting?
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Accounts Receivable Accounting
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Which process is used to manage money owed by customers for goods and services purchased from the company?
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Accounts receivable accounting
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Which process is concerned with recording data associated with bank statements?
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Bank ledger accounting
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____ are internal divisions of an enterprise that are used to define areas of responsibility or to meet the external requirements of an enterprise segment.
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Business Areas
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Which term refers to an ordered listing of accounts that comprise a company's general ledger?
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Chart of Accounts (COA)
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Which term represents what a company owns, such as cash, inventory of materials, and buildings?
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Assets
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Which term represents what a company owes to others, including money owed to vendors and loans from financial institutions
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Liabilities
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Which term represents the monies a company earns by selling its products and services?
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Revenue
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Which term represents the costs associated with creating and selling products and services?
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Expenses
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Which element is not part of the typical company code data in general ledger accounts?
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None of the above (tax related data, field status groups, line item display, reconciliation account data)
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Which term is a general ledger account that consolidates data from a group of related sub-ledger accounts?
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Reconciliation account
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Which of the following records the impact of a transaction step on financial accounting?
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Financial accounting document
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Which of the following is used to implement multiple ledgers and use each ledger for different purposes?
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Parallel Accounting
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Which type of asset has a physical form?
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Tangible asset
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Which type of asset has a non-physical form?
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Intangible Asset
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Which of the following is used to report data needed to meet legal and regulatory requirements?
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Financial statement
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Balance sheet accounts are grouped into which of the following categories?
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Assets, Liabilities, Equity
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An organization can possess which of the following types of assets?
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Tangible, Intangible, Financial
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Tangible assets can include which of the following?
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Computers, Production Machinery
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What are the most common transaction types that occur during the life of an asset?
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Acquisition, Depreciation, Retirement
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What are the primary ways in which an asset can be acquired?
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internally by production, externally by vendor
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Which best describes the operative chart of accounts?
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Used to enable companies to meet special country-specific reporting requirements (?)
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Which is not a mode of acquiring an asset for a company
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Selling Equipment, Acquiring without a vendor(?)
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All transaction types that occur during the life of an asset except:
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Allocation. ( These occur during the life of an asset: acquisition, depreciation,retirement.)
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Financial statements can be generated from which of the following?
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Both operative and country-specific COAs
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Which of the following are common depreciation areas used in the US?
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book depreciation, cost accounting depreciation, legal depreciation
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Reporting in financial accounting is broadly divided into which of the following 2 categories?
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Displaying account information, generating financial statements
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From which of the following can financial statements be generated?
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Operative chart of accounts, country specific chart of accounts
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What is true about business area?
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It is an internal division of an enterprise, it is used for external reporting, associated with SEVERAL company codes
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Which are types of chart of accounts?
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Operative COA, Country Specific COA, Group COA
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What does COA data include?
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Client segment, company code segment
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The COA segment of the COA data includse which of the following?
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Account number, account group, short text, long text
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Which of the following does balance sheet include?
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Assets & Liabilities
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Profit & loss statement includes what?
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Revenues & Expenses
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Which of the statements about reconciliation accounts are true?
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Reconciliation account for customers is accounts receivable, reconciliation account for vendors is accounts payable
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Which of the statements regarding reconciliation accounts is not true?
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None of the above (?)
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Which attributes are present in the FI document items?
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Amount, Posting Key
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Which attributes are present in the FI documents header?
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Document type, posting date, currency
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Which of the following statements concerning the leading ledger are true?
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All transaction data are posted to it, global accounting principles are consolidated into it
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A cost center :
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is associated with a location where costs are incurred, absorbs costs , can be associated with a department
