Exam (elaborations)
Chapter 16 General Ledger and Reporting System
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Chapter 16 General Ledger and Reporting System Accounting Information Systems 12Th Ed by Marshall B. Romney - Test Bank
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Accounting Information Systems, 12e (Romney/Steinbart)Chapter 16 General Ledger and Reporting System
1) The general ledger and reporting system consists of the ________ involved in ________ the general
ledger and ________ reports.
A) business transactions; updating; processing
B) data processing; business transactions for; printing
C) information processing; updating; creating
D) business transactions; data processing; preparing
Answer: C
Page Ref: 463
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic
2) Which item below is not considered a major input to the general ledger and reporting system?
A) summary entries from the major subsystems
B) reports from managers
C) adjusting entries
D) financing and investing activities
Answer: B
Page Ref: 463
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
3) Who provides the adjusting entries for a well-designed general ledger and reporting system?
A) various user departments
B) the treasurer's area
C) the other major AIS subsystems
D) the controller's area
Answer: D
Page Ref: 463
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
4) The general ledger and reporting system is designed to provide information for which of the
following user groups?
A) internal users
B) external users
C) inquiry processing by internal or external users
D) all of the above
Answer: D
Page Ref: 465
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
1
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
,5) The general ledger system of an organization should be designed to serve the information
requirements of both internal and external users. This means that the system should support
A) producing expansive regular periodic reports to cover all information needs.
B) the real-time inquiry needs of all users.
C) producing regular periodic reports and respond to real-time inquiry needs.
D) access by investors and creditors of the organization to general ledger balances.
Answer: C
Page Ref: 465
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic
6) How is general ledger updating accomplished by the various accounting subsystems?
A) Individual journal entries for each accounting subsystem transaction update the general ledger every
24 hours.
B) Summary journal entries that represent the results of all transactions for a certain time period are used
to update the general ledger.
C) The controller or treasurer must approve accounting subsystem journal entries before any updating
may occur.
D) Nonroutine transactions are entered into the system by the treasurer's office.
Answer: B
Page Ref: 467
Objective: Learning Objective 1
Difficulty : Difficult
AACSB: Analytic
7) When updating the general ledger, sales, purchases, and production are examples of ________
entries, and issuance or retirement of debt and the purchase or sale of investment securities are examples
of ________ entries.
A) adjusting; controller originated
B) accounting subsystem; treasurer originated
C) adjusting; special journal
D) controller generated; special journal
Answer: B
Page Ref: 467
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic
8) Entries to update the general ledger are often documented by which of the following?
A) general journal
B) subsidiary journal
C) subsidiary ledgers
D) journal vouchers
Answer: D
Page Ref: 467
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
2
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
, 9) Adjusting entries that reflect events that have already occurred, but for which no cash flow has taken
place are classified as
A) accruals.
B) deferrals.
C) revaluations.
D) corrections.
Answer: A
Page Ref: 470
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
10) Recording interest earned on an investment is an example of which type of adjusting journal entry?
A) accrual entry
B) deferral entry
C) revaluation entry
D) correcting entry
Answer: A
Page Ref: 470
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic
11) An adjusting entry made at the end of an accounting period that reflects the exchange of cash prior
to performance of a related event is classified as a(n)
A) accrual entry.
B) deferral entry.
C) revaluation entry.
D) correcting entry.
Answer: B
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
12) Depreciation expense and bad debt expense are examples of which type of adjusting journal entry?
A) deferrals
B) accruals
C) revaluations
D) estimates
Answer: D
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
3
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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