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web.groovymark@gmail.com
- December 12, 2024
Question 01
What does the term “block code” refer to in accounting systems?
A) A numeric code assigned randomly
B) A coding scheme that assigns ranges of values to specific attributes
C) An alphabetic code representing transactions
D) A sequential code representing time intervals
Answer: B) A coding scheme that assigns ranges of values to specific attributes
Explanation: Block codes assign specific ranges of values to categories, such as account classifications in a chart of accounts.
Question 02
What is an example of a group code?
A) A single alphabetic code representing a department
B) A code consisting of zones or fields that have specific meanings
C) A code that assigns a unique number to each transaction
D) A numeric code used for payroll processing
Answer: B) A code consisting of zones or fields that have specific meanings
Explanation: Group codes combine related pieces of data in a structured format for easier processing of complex transactions.
Question 03
Which document triggers the accounts payable system to make a payment?
A) Sales invoice
B) Vendor’s purchase order
C) Supplier’s invoice
D) Receiving report
Answer: C) Supplier's invoice
Explanation: The supplier's invoice is sent to accounts payable to trigger payment after the goods or services have been received.
Question 04
What is a key function of the expenditure cycle?
A) Processing cash sales
B) Authorizing payroll deductions
C) Acquiring materials, property, and labor in exchange for cash
D) Tracking production costs
Answer: C) Acquiring materials, property, and labor in exchange for cash
Explanation: The expenditure cycle focuses on acquiring resources needed for production and paying vendors for these purchases.
Question 05
Which type of code assigns alphabetic characters sequentially?
A) Mnemonic code
B) Group code
C) Alphabetical code
D) Sequential code
Answer: C) Alphabetical code
Explanation: Alphabetical codes use letters assigned in a sequential manner, often used for document identification or classification.
Question 06
Which internal control ensures that tasks are divided among employees to reduce fraud risk?
A) Segregation of duties
B) Preventive controls
C) Access controls
D) Supervisory controls
Answer: A) Segregation of duties
Explanation: Segregation of duties separates tasks to prevent any one individual from controlling an entire transaction, reducing fraud risks.
Question 07
What type of control is designed to detect errors after they occur?
A) Preventive control
B) Corrective control
C) Detective control
D) Segregation of duties
Answer: C) Detective control
Explanation: Detective controls are used to identify and expose errors or irregularities that have already occurred in the system.
Question 08
What is the role of a master file in accounting systems?
A) To store transactional data temporarily
B) To archive historical records
C) To maintain detailed account data, such as the general ledger
D) To track employee payroll data
Answer: C) To maintain detailed account data, such as the general ledger
Explanation: Master files contain permanent account data, such as ledger balances, which are updated by daily transactions.
Question 09
What is an advantage of commercial accounting software systems?
A) They can be developed quickly to meet specific user needs
B) They can be installed and implemented faster than custom systems
C) They offer unlimited customization options
D) They have low initial costs compared to in-house development
Answer: B) They can be installed and implemented faster than custom systems
Explanation: Commercial software systems are pre-built and tested, making them faster to implement than fully customized systems.
Question 10
What describes a mnemonic code?
A) A code based on numerical order
B) A code that uses abbreviations to convey meaning
C) A random sequence of numbers and letters
D) A code assigned by transaction date
Answer: B) A code that uses abbreviations to convey meaning
Explanation: Mnemonic codes use easily recognizable letters, often acronyms, to represent information meaningfully, such as course codes.
Question 11
Which type of file contains records of transactions used to update a master file?
A) Reference file
B) Transaction file
C) Archive file
D) Sequential file
Answer: B) Transaction file
Explanation: Transaction files contain temporary records of transactions that are used to update the master file with the latest data.
Question 12
In an ERP system, what do core applications typically include?
A) Marketing and HR management
B) Inventory control and payroll processing
C) Customer satisfaction surveys
D) Document storage
Answer: B) Inventory control and payroll processing
Explanation: Core ERP applications support the day-to-day operations of the business, such as inventory control, payroll, and accounting.
Question 13
What is the main focus of the expenditure cycle in accounting?
A) Processing customer payments
B) Managing cash disbursements and purchases
C) Tracking production costs
D) Recording employee payroll
Answer: B) Managing cash disbursements and purchases
Explanation: The expenditure cycle includes purchasing materials and services, and making payments to vendors.
Question 14
Which system is responsible for processing fixed asset transactions and depreciation?
A) Payroll system
B) General ledger system
C) Fixed asset system
D) Inventory system
Answer: C) Fixed asset system
Explanation: The fixed asset system tracks transactions related to property, plant, equipment, and their depreciation.
Question 15
What is the purpose of a reference file in an accounting information system?
A) To record employee payroll details
B) To store master data for standard processing, such as tax tables
C) To document all historical transactions
D) To archive past invoices
Answer: B) To store master data for standard processing, such as tax tables
Explanation: Reference files store data used as standards for processing transactions, like tax tables used for payroll.
Question 16
Which internal control ensures that access to financial records is limited to authorized personnel?
A) Independent verification
B) Physical controls
C) Segregation of duties
D) Access control
Answer: D) Access control
Explanation: Access controls limit who can view or modify financial records, ensuring that only authorized individuals can access sensitive data.
Question 17
What is a key output of the financial reporting system?
A) Cash flow forecasts
B) Variance analysis reports
C) General ledger updates
D) Financial statements
Answer: D) Financial statements
Explanation: The financial reporting system generates key financial reports such as income statements, balance sheets, and cash flow statements.
Question 18
What type of code is used to categorize related data into distinct fields or zones?
A) Mnemonic code
B) Group code
C) Alphabetical code
D) Block code
Answer: B) Group code
Explanation: Group codes categorize related data into fields or zones, making complex items easier to process and understand.
Question 19
What system supports the planning, scheduling, and control of the production process?
A) Revenue cycle system
B) Expenditure cycle system
C) Cost accounting system
D) Production system
Answer: D) Production system
Explanation: The production system manages the planning and control of the manufacturing process, ensuring efficient use of resources.
Question 20
What type of internal control focuses on fixing errors that have been detected?
A) Preventive control
B) Detective control
C) Corrective control
D) Segregation of duties
Answer: C) Corrective control
Explanation: Corrective controls are actions taken to fix errors or irregularities that have been identified by detective controls.
