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web.groovymark@gmail.com
- December 12, 2024
Question 01
Which of the following is a problem usually associated with the flat-file approach to data management?
A) Data redundancy
B) Data accuracy
C) Efficient storage
D) Easy integration
Answer: A) Data redundancy
Explanation: The flat-file approach leads to data redundancy, where the same data is stored in multiple locations, increasing storage costs and the likelihood of inconsistencies.
Question 02
Which problem is characteristically associated with the flat-file approach to data management?
A) The inability to determine what data is available
B) Easy data accessibility
C) Data integration
D) Real-time updates
Answer: A) The inability to determine what data is available
Explanation: In a flat-file system, data is often scattered across multiple files, making it difficult to know what data exists or where it is located.
Question 03
A description of the physical arrangement of records in the database is:
A) Conceptual view
B) User view
C) Internal view
D) Logical view
Answer: C) Internal view
Explanation: The internal view describes how the data is physically arranged and stored within the database system.
Question 04
Which of the following may provide many distinct views of the database?
A) The internal view
B) The user view
C) The conceptual view
D) The transaction view
Answer: B) The user view
Explanation: Different users may require different views of the data, and the user view provides this customization.
Question 05
The update anomaly in unnormalized tables:
A) Results in data accuracy
B) Occurs because of data redundancy
C) Leads to faster processing
D) Removes duplicate records
Answer: B) Occurs because of data redundancy
Explanation: In unnormalized tables, redundant data can cause update anomalies where a change in one location doesn’t automatically reflect in others.
Question 06
The deletion anomaly in unnormalized tables:
A) May result in the loss of important data
B) Occurs only in normalized databases
C) Does not affect the database
D) Ensures data integrity
Answer: A) May result in the loss of important data
Explanation: In an unnormalized table, deleting certain data may unintentionally remove related information that is still needed.
Question 07
Which document triggers the revenue cycle?
A) Purchase order
B) Sales invoice
C) Customer purchase order
D) Receiving report
Answer: C) Customer purchase order
Explanation: The customer purchase order triggers the revenue cycle by initiating the process of fulfilling an order.
Question 08
Which department is least likely to be involved in the revenue cycle?
A) Accounts payable
B) Sales
C) Shipping
D) Billing
Answer: A) Accounts payable
Explanation: Accounts payable is involved in the expenditure cycle, managing payments to vendors, not the revenue cycle.
Question 09
The purpose of the sales invoice is to:
A) Track inventory
B) Bill the customer
C) Generate a purchase order
D) Record shipping details
Answer: B) Bill the customer
Explanation: The sales invoice is used to bill the customer for products or services sold.
Question 10
Which type of control is considered a compensating control for customer payments?
A) Segregation of duties
B) Supervision
C) Physical security
D) Automated verification
Answer: B) Supervision
Explanation: Supervision is a compensating control when other stronger controls cannot be implemented effectively.
Question 11
Commercial accounting systems have fully integrated modules. The word “integrated” means that:
A) Data is manually transferred between modules
B) Transfer of information among modules occurs automatically
C) The system is decentralized
D) Each module is independent
Answer: B) Transfer of information among modules occurs automatically
Explanation: In integrated systems, data flows automatically between modules, reducing the risk of errors or missed steps.
Question 12
A copy of the purchase order (PO) is sent to the:
A) Supplier
B) Customer
C) Shipping department
D) Internal audit team
Answer: A) Supplier
Explanation: The purchase order is sent to the supplier to confirm what is being ordered, the quantities, and the agreed prices.
Question 13
The departments involved in the purchasing process are purchasing, receiving, inventory control and:
A) Accounts payable
B) Accounts receivable
C) Human resources
D) Sales
Answer: A) Accounts payable
Explanation: Accounts payable completes the purchasing process by authorizing and making payments based on received goods.
Question 14
When a cash disbursement in payment of an accounts payable is recorded:
A) The liability account is decreased
B) The liability account is increased
C) The asset account is increased
D) The revenue account is decreased
Answer: A) The liability account is decreased
Explanation: Recording a payment reduces the liability account since the obligation to pay has been fulfilled.
Question 15
The greatest risk of misappropriation of funds occurs in:
A) Sales
B) Accounts payable
C) Accounts receivable
D) Inventory
Answer: B) Accounts payable
Explanation: There is a higher risk of misappropriation of funds in accounts payable due to potential fraudulent payments.
Question 16
In a firm with proper segregation of duties, adequate supervision as a compensating control is still necessary in:
A) Accounts receivable
B) Accounts payable
C) Receiving
D) Shipping
Answer: C) Receiving
Explanation: Supervision is essential in receiving to ensure goods are accurately recorded before they enter inventory.
Question 17
The fixed asset system records the:
A) Depreciation of assets
B) Purchase of a new plant
C) Sale of inventory
D) Movement of inventory
Answer: B) Purchase of a new plant
Explanation: The fixed asset system tracks and records the purchase of long-term assets like plants and equipment.
Question 18
In a technology-enabled payroll system, Personnel, Time Keeping, Payroll, and Accounts Payable connect to which department to pay employees?
A) Sales
B) Cash disbursements
C) Human resources
D) Accounts receivable
Answer: B) Cash disbursements
Explanation: The cash disbursements department processes employee payments after approval from the payroll system.
Question 19
An important reconciliation in the payroll system is:
A) Comparing bank balances
B) Matching timecards to paychecks
C) Comparing labor distribution summary to disbursement voucher
D) Reviewing overtime reports
Answer: C) Comparing labor distribution summary to disbursement voucher
Explanation: This reconciliation ensures that the payroll disbursement aligns with labor costs and the related accounting records.
Question 20
Which of the following situations represents an internal control weakness?
A) The CFO signing checks
B) Supervisors distributing paychecks
C) The accounting manager reviewing reconciliations
D) Payroll using a separate account for taxes
Answer: B) Supervisors distributing paychecks
Explanation: Supervisors should not handle payroll distribution as it opens up the opportunity for manipulation or fraud.
