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web.groovymark@gmail.com
- December 12, 2024
Question 21
Which system supports day-to-day business activities such as order processing and inventory management?
A) Transaction Processing System (TPS)
B) General Ledger System (GLS)
C) Management Information System (MIS)
D) Audit Trail System
Answer: A) Transaction Processing System (TPS)
Explanation: The TPS supports daily business operations by processing transactions such as sales, purchases, and inventory updates.
Question 22
Which document serves as a formal request to purchase goods or services?
A) Purchase order
B) Personnel action form
C) Sales invoice
D) Payroll register
Answer: A) Purchase order
Explanation: A purchase order is a formal document requesting the purchase of goods or services from a vendor.
Question 23
What is the main function of an audit trail in accounting systems?
A) To generate real-time reports
B) To track the path of a transaction from start to finish
C) To monitor employee performance
D) To process payroll records
Answer: B) To track the path of a transaction from start to finish
Explanation: An audit trail allows transactions to be traced through the input, processing, and output stages for verification and control purposes.
Question 24
Which of the following describes a mnemonic code?
A) A code assigned randomly to transactions
B) A code that uses alphabetic characters to represent data
C) A numeric code representing complex data
D) A sequence of numbers and letters with no meaning
Answer: B) A code that uses alphabetic characters to represent data
Explanation: Mnemonic codes use acronyms or combinations of letters to represent data meaningfully, such as course codes.
Question 25
What does a depreciation report contain?
A) Details of inventory movements
B) Payroll records
C) Fixed asset acquisitions and depreciation details
D) Sales orders
Answer: C) Fixed asset acquisitions and depreciation details
Explanation: Depreciation reports provide information about the acquisition and accumulated depreciation of fixed assets.
Question 26
What is the main function of completeness tests in transaction processing systems?
A) To ensure all required data fields are filled
B) To track transaction history
C) To calculate employee overtime
D) To store historical payroll records
Answer: A) To ensure all required data fields are filled
Explanation: Completeness tests verify that no critical data fields are missing, ensuring the transaction is fully recorded.
Question 27
What document reflects changes in employee pay rates or job classifications?
A) Payroll register
B) Personnel action form
C) Purchase order
D) Sales invoice
Answer: B) Personnel action form
Explanation: Personnel action forms document any changes in employee pay rates, job titles, or other relevant details in payroll systems.
Question 28
What type of report does the general ledger system produce?
A) Inventory receipt report
B) Budget variance report
C) Financial statements
D) Sales orders
Answer: C) Financial statements
Explanation: The general ledger system produces financial reports such as income statements, balance sheets, and cash flow statements.
Question 29
Which of the following is a characteristic of sequential coding?
A) Codes are assigned randomly
B) Codes represent items in a specific sequential order
C) Codes are based on alphabetic characters
D) Codes are used to group related transactions
Answer: B) Codes represent items in a specific sequential order
Explanation: Sequential codes represent items in a specific order, making it easy to identify the order in which transactions occurred.
Question 30
What is the purpose of using group codes in transaction processing systems?
A) To represent complex items or events involving multiple pieces of data
B) To randomly assign numeric values to transactions
C) To track historical data
D) To authorize payments
Answer: A) To represent complex items or events involving multiple pieces of data
Explanation: Group codes represent complex data by organizing related data into meaningful groups for easier processing.
Question 31
What is the function of a payroll register?
A) To record employee benefits
B) To track employee work schedules
C) To document employee gross pay, deductions, and net pay
D) To reconcile tax payments
Answer: C) To document employee gross pay, deductions, and net pay
Explanation: A payroll register lists all employees' gross pay, deductions, and net pay, providing a comprehensive summary of payroll details.
Question 32
Which system focuses on controlling the flow of production and related costs?
A) Revenue cycle system
B) Cost accounting system
C) Expenditure cycle system
D) Payroll system
Answer: B) Cost accounting system
Explanation: A cost accounting system controls and monitors the flow of production-related costs such as materials, labor, and overhead.
Question 33
What is the role of adjusting journal entries in the accounting process?
A) To reconcile bank statements
B) To update payroll records
C) To correct financial records for unrecorded transactions
D) To track employee benefits
Answer: C) To correct financial records for unrecorded transactions
Explanation: Adjusting journal entries are used to update the financial records for transactions that were not recorded during the accounting period.
Question 34
Which of the following is an example of a core application in ERP systems?
A) Payroll processing
B) Market research
C) Word processing
D) Employee performance tracking
Answer: A) Payroll processing
Explanation: Core ERP applications include functions such as payroll processing, accounting, and inventory management, which support essential business operations.
Question 35
What is the primary purpose of a purchase requisition?
A) To authorize payment to vendors
B) To request the purchase of goods or services
C) To track inventory movement
D) To record employee benefits
Answer: B) To request the purchase of goods or services
Explanation: A purchase requisition is used internally to request the purchase of goods or services before a formal purchase order is issued.
Question 36
Which of the following is a function of the revenue cycle system?
A) Tracking inventory movement
B) Monitoring the production process
C) Processing cash and credit sales
D) Managing payroll transactions
Answer: C) Processing cash and credit sales
Explanation: The revenue cycle system processes transactions related to cash and credit sales, ensuring timely billing and payment collection.
Question 37
What is the role of a cost accounting system in production?
A) To manage customer relationships
B) To monitor the flow of cost information related to production
C) To record employee time and attendance
D) To process payroll deductions
Answer: B) To monitor the flow of cost information related to production
Explanation: A cost accounting system tracks costs associated with labor, overhead, and materials in the production process.
Question 38
What type of system is used to manage payroll records and process employee payments?
A) Transaction processing system
B) Payroll system
C) General ledger system
D) Revenue cycle system
Answer: B) Payroll system
Explanation: The payroll system manages employee payroll records, including gross pay, deductions, and payment processing.
Question 39
Which of the following controls helps verify that transactions are processed completely?
A) Access control
B) Completeness test
C) Segregation of duties
D) Physical control
Answer: B) Completeness test
Explanation: Completeness tests help ensure that all transactions are fully processed, without missing data or incomplete records.
Question 40
What is the primary focus of preventive controls in accounting systems?
A) To detect errors after they occur
B) To correct discrepancies
C) To prevent errors or fraud before they occur
D) To track employee performance
Answer: C) To prevent errors or fraud before they occur
Explanation: Preventive controls are designed to minimize the likelihood of errors or fraud by implementing measures that prevent them from happening in the first place.
