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web.groovymark@gmail.com
- December 12, 2024
Question 41
Which document contains details on the acquisition of a fixed asset?
A) Payroll register
B) Depreciation report
C) Sales order
D) Cash receipt
Answer: B) Depreciation report
Explanation: A depreciation report contains details about the acquisition and accumulated depreciation of fixed assets over time.
Question 42
What role does segregation of duties play in an internal control system?
A) It assigns all tasks to one individual
B) It prevents unauthorized access to financial records
C) It separates responsibilities to reduce the risk of fraud
D) It reconciles financial transactions
Answer: C) It separates responsibilities to reduce the risk of fraud
Explanation: Segregation of duties divides tasks among different individuals, ensuring that no single person has control over the entire transaction process, reducing the risk of errors or fraud.
Question 43
What is a personnel action form used for in payroll systems?
A) To authorize payment for services
B) To track inventory movement
C) To record changes in employee pay rates and job classifications
D) To process sales orders
Answer: C) To record changes in employee pay rates and job classifications
Explanation: Personnel action forms document any changes in employee pay rates, job titles, and other details relevant to payroll processing.
Question 44
What is the function of independent verification in accounting systems?
A) To monitor employee performance
B) To authorize payroll payments
C) To verify that transactions are correctly processed
D) To track customer orders
Answer: C) To verify that transactions are correctly processed
Explanation: Independent verification ensures that transactions are reviewed and verified by someone other than the person who performed the task, reducing the risk of errors or fraud.
Question 45
What type of file stores records of past transactions in accounting systems?
A) Master file
B) Archive file
C) Reference file
D) Transaction file
Answer: B) Archive file
Explanation: Archive files contain records of past transactions that are retained for future reference, audit purposes, or legal requirements.
Question 46
What type of control tests ensure that only valid data values are processed?
A) Completeness tests
B) Redundancy tests
C) Validity tests
D) Audit trail tests
Answer: C) Validity tests
Explanation: Validity tests ensure that only data values conforming to specified tolerances, such as range or field tests, are processed in the system.
Question 47
Which of the following is an example of a general accounting system?
A) Time and attendance tracking
B) Payroll processing
C) Sales order management
D) Accounts payable
Answer: D) Accounts payable
Explanation: General accounting systems, such as accounts payable modules, are designed to meet common user needs and handle standard financial processes.
Question 48
What type of file is updated by transactions and stores account data?
A) Master file
B) Archive file
C) Reference file
D) Sequential file
Answer: A) Master file
Explanation: Master files store account data and are updated by transactions, such as sales or payments, in accounting systems.
Question 49
What is the primary function of an audit trail test in transaction processing systems?
A) To authorize payments
B) To track employee time
C) To ensure all transactions are recorded accurately and completely
D) To reconcile bank statements
Answer: C) To ensure all transactions are recorded accurately and completely
Explanation: Audit trail tests verify that a transaction has been properly documented and recorded, ensuring the integrity of financial data.
Question 50
What is the purpose of an access test in accounting systems?
A) To reconcile payroll discrepancies
B) To verify that individuals or programs accessing the system are valid
C) To generate financial reports
D) To track employee work hours
Answer: B) To verify that individuals or programs accessing the system are valid
Explanation: Access tests ensure that only authorized individuals, programs, or processes can access the system, safeguarding sensitive data.
