revenue cycle/expenditure cycle.

Category : Bold Essays Writing

revenue cycle/expenditure cycle.
Question 1

The transaction cycle that includes the events of hiring employees and paying them is known as the

Answer
revenue cycle.
expenditure cycle.
human resources cycle.
financing cycle.

Question 2

Data must be converted into information to be considered useful and meaningful for decision-making. There are six characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of

Answer
relevancy.
timeliness.
understandability.
reliability.

Question 3

The primary objective of accounting is to

Answer
implement strong internal controls.
provide useful information to decision makers.
prepare financial statements.
ensure the profitability of an organization

Question 4

The business owners obtain financing from outside investors, which results in an inflow of cash into the company. This transaction is considered to be part of which cycle?

Answer
the revenue cycle
the payroll cycle
the production cycle
the financing cycle

Question 5

Information that is free from error or bias and accurately represents the events or activities of the organization is

Answer
relevant.
reliable.
verifiable.
timely

Question 6

Hector Sanchez works in the accounting department of a multinational manufacturing company. His job includes updating accounts receivable based on sales orders and remittance advices. His responsibilities are part of the company’s

Answer
revenue cycle.
expenditure cycle.
financing cycle.
production cycle

Question 7

An audit trail

Answer
provides the means to check the accuracy and validity of ledger postings.
begins with the general journal.
is automatically created in every computer-based information system.
is a summary of recorded transactions

Question 8

What usually initiates data input into a system?

Answer
The transaction system automatically checks each hour to see if any new data is available for input and processing.
The performance of some business activity generally serves as the trigger for data input.
A general ledger program is queried to produce a trial balance at the end of an accounting period.
Data is only input when a source document is submitted to the accounting department

Question 9

The general ledger account that corresponds to a subsidiary ledger account is known as a

Answer
dependent account.
attribute account.
entity account.
control account.

Question 10

The efficiency of recording numerous business transactions can be best improved by the use of

Answer
prenumbered source documents.
specialized journals.
posting references.
subsidiary ledgers

Question 11

Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to document the existing accounting information system, and focus on the activities and flow of data between activities. He decides to begin with a summary description of the sources and uses of data in the organization and how they are processed by the system. The documentation tool that he should employ for this purpose is a

Answer
data flow diagram.
document flowchart.
system flowchart.
program flowchart.

Question 12

In general, a data destination will be shown by

Answer
an arrow pointing away.
an arrow pointing in.
arrows pointing both ways.
no arrows, only two horizontal lines.

Question 13

A data flow diagram

Answer
is a graphical description of the source and destination of data that shows how data flow within an organization.
is a graphical description of the flow of documents and information between departments or areas of responsibility.
is a graphical description of the relationship among the input, processing, and output in an information system.
is a graphical description of the sequence of logical operations that a computer performs as it executes a program

Question 14

A flowchart that depicts the relationships among the input, processing, and output of an AIS is

Answer
an internal control flowchart.
a document flowchart.
a system flowchart.
a program flowchart.

Question 15

Chuck and Jill Scruggs travel in their motor home six months of the year and buy unique artifacts. Within hours after the Scruggs make a purchase, they have photographed it, written a description of it, and posted it for sale on eBay with a reservation price. Anything that does not sell within a week is shipped back to Austin, Texas, for display in The House of Curiosities, a retail business that the Scruggs operate during the balance of the year. Which symbol should be used to represent the transfer of data to eBay in a context diagram of this process?

Answer
https://blackboard.strayer.edu/courses/1/ACC564005VA016-1144-001/ppg/respondus/exam_Final_Exam_Part_1/image004512b937a.jpg
https://blackboard.strayer.edu/courses/1/ACC564005VA016-1144-001/ppg/respondus/exam_Final_Exam_Part_1/image005512b937a.jpg
https://blackboard.strayer.edu/courses/1/ACC564005VA016-1144-001/ppg/respondus/exam_Final_Exam_Part_1/image006512b937a.jpg
https://blackboard.strayer.edu/courses/1/ACC564005VA016-1144-001/ppg/respondus/exam_Final_Exam_Part_1/image007512b937a.jpg

Question 16

The ________ handles the link between the way data are physically stored and each user’s logical view of that data.

Answer
data warehouse
data dictionary
database management (DBMS) software
schema

Question 17

The logical structure of a database is described by the

Answer
data dictionary.
schema.
database management system.
internal level.

Question 18

The database requirement that foreign keys must be null or have a value corresponding to the value of a primary key in another table is formally called the

Answer
entity integrity rule.
referential integrity rule.
rule of keys.
foreign key rule

Question 19

A set of individual user views of the database is called the

Answer
conceptual-level schema.
internal-level schema.
external-level schema.
meta-schema.

Question 20

Inability to add new data to a database without violating the basic integrity of the database is referred to as the

Answer
update anomaly.
insert anomaly.
integrity anomaly.
delete anomaly.

Question 21

The US Justice Department defines computer fraud as

Answer
any crime in which a computer is used.
an illegal act in which knowledge of computer technology is essential.
any act in which cash is stolen using a computer.
an illegal act in which a computer is an integral part of the crime

Question 22

Which of the following is the greatest risk to information systems and causes the greatest dollar losses?

Answer
human errors and omissions
physical threats such as natural disasters
dishonest employees
fraud and embezzlement

Question 23

The most efficient way to conceal asset misappropriation is to

Answer
write-off a customer receivable as bad debt.
alter monthly bank statements before reconciliation.
alter monthly physical inventory counts to reconcile to perpetual inventory records.
record phony payments to vendors.

Question 24

Most fraud perpetrators are insiders because

Answer
insiders are more dishonest than outsiders.
insiders know more about the system and its weaknesses than outsiders.
outsiders are more likely to get caught than insiders.
insiders have more need for money than outsiders

Question 25

The simplest and most common way to commit a computer fraud is to

Answer
alter computer input.
alter computer output.
modify the processing.
corrupt the database

Question 26

Telefarm Industries is a telemarketing firm that operates in the Midwest. The turnover rate among employees is quite high. Recently, the information technology manager discovered that an unknown employee had used a Bluetooth-enabled mobile phone to access the firm’s database and copy a list of customers from the past three years that included credit card information. Telefarm was a victim of

Answer
Bluesnarfing.
splogging.
vishing.
typosquatting.

Question 27

Illegally obtaining and using confidential information about a person for economic gain is known as

Answer
eavesdropping.
identity theft.
packet sniffing.
piggybacking.

Question 28

A fraud technique that slices off tiny amounts from many projects is called the ________ technique.

Answer
Trojan horse
round down
salami
trap door

Question 29

Computer fraud perpetrators that modify programs during systems development, allowing access into the system that bypasses normal system controls are using

Answer
a Trojan horse.
a trap door.
the salami technique.
superzapping.

Question 30

Which of the following is the easiest method for a computer criminal to steal output without ever being on the premises?

Answer
dumpster diving
by use of a Trojan horse
using a telescope to peer at paper reports
electronic eavesdropping on computer monitors

Question 31

What is one reason why AIS threats are increasing?

Answer
LANs and client/server systems are easier to control than centralized, mainframe systems.
Many companies do not realize that data security is crucial to their survival.
Computer control problems are often overestimated and overly emphasized by management.
Many companies believe that protecting information is a strategic requirement.

Question 32

The SEC and FASB are best described as external influences that directly affect an organization’s

Answer
hiring practices.
philosophy and operating style.
internal environment.
methods of assigning authority

Question 33

According to the ERM, these objectives help ensure the accuracy, completeness and reliability of internal and external company reports.

Answer
Compliance objectives
Operations objectives
Reporting objectives
Strategic objectives

Question 34

According to the ERM, these deal with the effectiveness and efficiency of company operations, such as performance and profitability goals.

Answer
Compliance objectives
Operations objectives
Reporting objectives
Strategic objectives

Question 35

When undertaking risk assessment, the expected loss is calculated like this.

Answer
Impact times expected loss
Impact times likelihood
Inherent risk times likelihood
Residual risk times likelihood

Question 36

Compatibility tests utilize a(n) ________, which is a list of authorized users, programs, and data files the users are authorized to access or manipulate.

Answer
validity test
biometric matrix
logical control matrix
access control matrix

Question 37

In 2007, a major U.S. financial institution hired a security firm to attempt to compromise its computer network. A week later, the firm reported that it had successfully entered the system without apparent detection and presented an analysis of the vulnerabilities that had been found. This is an example of a

Answer
preventive control.
detective control.
corrective control.
standard control

Question 38

The process that allows a firewall to be more effective by examining the data in the body of an IP packet, instead of just the header, is known as

Answer
deep packet inspection.
stateful packet filtering.
static packet filtering.
an intrusion prevention system

Question 39

This protocol specifies the procedures for dividing files and documents into packets to be sent over the Internet.

Answer
Access control list
Internet protocol
Packet switching protocol
Transmission control protocol

Question 40

A special purpose hardware device or software running on a general purpose computer, which filters information that is allowed to enter and leave the organization’s information system, is known as a(n)

Answer
demilitarized zone.
intrusion detection system.
intrusion prevention system.
firewall.

Question 41

Jeff Davis took a call from a client. “Jeff, I need to interact online and real time with our affiliate in India, and I want to make sure that our communications aren’t intercepted. What do you suggest?” Jeff responded “The best solution will be to implement

Answer
a virtual private network.”
a private cloud environment.”
an asymmetric encryption system with digital signatures.”
multifactor authentication

Question 42

On March 3, 2008, a laptop computer belonging to Folding Squid Technology was stolen from the trunk of Jiao Jan’s car while he was attending a conference in Cleveland, Ohio. After reporting the theft, Jiao considered the implications of the theft for the company’s network security and concluded there was nothing to worry about because

Answer
the computer was protected by a password.
the computer was insured against theft.
it was unlikely that the thief would know how to access the company data stored on the computer.
the data stored on the computer was encrypted

Question 43

One way to circumvent the counterfeiting of public keys is by using

Answer
a digital certificate.
digital authority.
encryption.
cryptography

Question 44

An electronic document that certifies the identity of the owner of a particular public key.

Answer
Asymmetric encryption
Digital certificate
Digital signature
Public key

Question 45

Which of the following descriptions is not associated with symmetric encryption?

Answer
A shared secret key
Faster encryption
Lack of authentication
Separate keys for each communication party

Question 46

This tests a numerical amount to ensure that it does not exceed a predetermined value.

Answer
Completeness check
Limit check
Range check
Sign check

Question 47

User reviews are an example of a(n)

Answer
data entry control.
data transmission control.
output control.
processing control

Question 48

A copy of a database, master file, or software that will be retained indefinitely as a historical record is known as a(n)

Answer
archive.
cloud computing.
differential backup.
incremental backup

Question 49

This determines the correctness of the logical relationship between two data items.

Answer
Range check
Reasonableness test
Sign check
Size check

Question 50

When I enter a correct customer number, the data entry screen displays the customer name and address. This is an example of

Answer
prompting.
preformatting.
closed-loop verification.
error checking.

Version 2
Question 1

https://blackboard.strayer.edu/courses/1/ACC564003VA016-1144-001/ppg/respondus/exam_Final_Exam_Part_1/image001512b9353.jpg

Refer to the chart above. At what point, measured in terms of the net cost of information, does information overload begin?

Answer
0
5
10
12

Question 2

Which of the following statements below shows the contrast between data and information?

Answer
Data is the output of an AIS.
Information is the primary output of an AIS.
Data is more useful in decision-making than information.
Data and information are the same

Question 3

The primary objective of accounting is to

Answer
implement strong internal controls.
provide useful information to decision makers.
prepare financial statements.
ensure the profitability of an organization

Question 4

Transaction cycles can be summarized on a high level as “give-get” transactions. An example of “give-get” in the revenue cycle would be

Answer
give cash, get goods.
give goods, get cash.
give cash, get labor.
give cash, get cash.

Question 5

An example of inbound logistics would consist of

Answer
the activities that transform inputs into final products or services.
the activities that help customers to buy the organization’s products or services.
the activities that provide post-sale support to customers.
the activities that consist of receiving, storing, and distributing the materials used as inputs by the organization to create goods and/or services it sells

Question 6

Which of the following is an example of source data automation?

Answer
a utility bill
POS (point-of-sale) scanners in retail stores
a bill of lading
a subsidiary ledger

Question 7

A general journal

Answer
would be used to record monthly depreciation entries.
simplifies the process of recording large numbers of repetitive transactions.
records all detailed data for any general ledger account that has individual sub-accounts.
contains summary-level data for every account of the organization

Question 8

Hector Sanchez works in the accounting department of a multinational manufacturing company. His job includes updating accounts payable based on purchase orders and checks. His responsibilities are part of the company’s

Answer
revenue cycle.
expenditure cycle.
financing cycle.
production cycle

Question 9

The efficiency of recording numerous business transactions can be best improved by the use of

Answer
prenumbered source documents.
specialized journals.
posting references.
subsidiary ledgers.

Question 10

To be effective, the chart of accounts must

Answer
be as concise as possible.
begin with account 001.
utilize only one coding technique.
contain sufficient detail to meet the information needs of the organization.

Question 11

The Union Soup Kitchen is a non-profit organization that collects, stores, prepares and provides food to the homeless in Erie, Pennsylvania. Donations of food are recorded in a database and a receipt is provided to the donor. When food is used, the database is updated so that it always reflects the amounts and types of food that are available. In a data flow diagram, which type of symbol would be used to represent the flow of data from the donor into the system?

Answer
https://blackboard.strayer.edu/courses/1/ACC564003VA016-1144-001/ppg/respondus/exam_Final_Exam_Part_1/image004512b937a.jpg
https://blackboard.strayer.edu/courses/1/ACC564003VA016-1144-001/ppg/respondus/exam_Final_Exam_Part_1/image011512b937a.jpg
https://blackboard.strayer.edu/courses/1/ACC564003VA016-1144-001/ppg/respondus/exam_Final_Exam_Part_1/image006512b937a.jpg
https://blackboard.strayer.edu/courses/1/ACC564003VA016-1144-001/ppg/respondus/exam_Final_Exam_Part_1/image007512b937a.jpg

Question 12

In a document flowchart of a manual payroll processing system, “update employee file” will be shown by a(n) ________ symbol, and “prepare payroll check” will be shown by a(n) ________ symbol.

Answer
input; output
input; manual operation
manual operation; output
manual operation; manual operation

Question 13

When preparing a document flowchart, the names of organizational departments or job functions should appear in the

Answer
column headings.
right-hand margin.
written narrative accompanying the flowchart.
title of the flowchart.

Question 14

Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to thoroughly document the existing accounting information system in preparation for making recommendations for improvements to internal controls. He decides to begin with a description of the information stored in paper records, their sources, and their destinations. The documentation tool that he should employ for this purpose is a

Answer
data flow diagram.
document flowchart.
system flowchart.
program flowchart

Question 15

A DFD created at the highest-level or summary view is referred to as a

Answer
process diagram.
overview diagram.
content diagram.
context diagram

Question 16

The ________ acts as an interface between the database and the various application programs.

Answer
data warehouse
database administrator
database management system
database system

Question 17

The problem of changes (or updates) to data values in a database being incorrectly recorded is known as

Answer
an update anomaly.
an insert anomaly.
a delete anomaly.
a memory anomaly

Question 18

The update anomaly in file-based systems or unnormalized database tables

Answer
occurs because of data redundancy.
restricts addition of new fields or attributes.
results in records that cannot be updated.
is usually easily detected by users.

Question 19

When the human resources manager wants to gather data about vacation and personal day usage by employees and by departments, the manager would use which language?

Answer
Data Query Language
Data Manipulation Language
Data Report Language
Data Definition Language

Question 20

In a well-structured database, the constraint that ensures the consistency of the data is known as the

Answer
entity integrity rule.
referential integrity rule.
logical view.
consistency integrity rule

Question 21

In a ________ scheme, customer receipts are stolen and then subsequent payments by other customers are misapplied to cover the theft of the original receipts.

Answer
kiting
laundering
bogus expense
lapping

Question 22

Opportunity to commit fraud is comprised of three stages. The stage that often takes most time and effort would include

Answer
stealing inventory from the warehouse.
selling stolen inventory to get cash.
lapping accounts receivable.
creating false journal entries to overstate revenue

Question 23

Which characteristic of the fraud triangle often stems from a lack of internal controls within an organization?

Answer
pressure
opportunity
rationalization
concealment

Question 24

Intentional or reckless conduct that results in materially misleading financial statements is called

Answer
financial fraud.
misstatement fraud.
fraudulent financial reporting.
audit failure fraud

Question 25

Why is computer fraud often more difficult to detect than other types of fraud?

Answer
Rarely is cash stolen in computer fraud.
The fraud may leave little or no evidence it ever happened.
Computers provide more opportunities for fraud.
Computer fraud perpetrators are just more clever than other types of criminals

Question 26

In the 1960s, techniques were developed that allowed individuals to fool the phone system into providing free access to long distance phone calls. The people who use these methods are referred to as

Answer
phreakers.
hackers.
hijackers.
superzappers

Question 27

The call to tech support was fairly routine. A first-time computer user had purchased a brand new PC two months ago and it was now operating much more slowly and sluggishly than it had at first. Had he been accessing the Internet? Yes. Had he installed any “free” software? Yes. The problem is likely to be a(an)

Answer
virus.
zero-day attack.
denial of service attack.
dictionary attack.

Question 28

Developers of computer systems often include a user name and password that is hidden in the system, just in case they need to get into the system and correct problems in the future. This is referred to as a

Answer
Trojan horse.
key logger.
spoof.
back door

Question 29

I work in the information technology department of a company I’ll call CMV. On Wednesday morning, I arrived at work, scanned in my identity card and punched in my code. This guy in a delivery uniform came up behind me carrying a bunch of boxes. I opened the door for him, he nodded and went on in. I didn’t think anything of it until later. Then I wondered if he might have been

Answer
pretexting.
piggybacking.
posing.
spoofing

Question 30

When a computer criminal gains access to a system by searching records or the trash of the target company, this is referred to as

Answer
data diddling.
dumpster diving.
eavesdropping.
piggybacking

Question 31

Go-Go Corporation, a publicly traded company, has three brothers who serve as President, Vice President of Finance and CEO. This situation

Answer
increases the risk associated with an audit.
must be changed before your audit firm could accept the audit engagement.
is a violation of the Sarbanes-Oxley Act.
violates the Securities and Exchange Act

Question 32

A(n) ________ helps top-level managers with high-level activities that demand frequent and regular attention.

Answer
boundary system
diagnostic control system
interactive control system
internal control system

Question 33

When undertaking risk assessment, the expected loss is calculated like this.

Answer
Impact times expected loss
Impact times likelihood
Inherent risk times likelihood
Residual risk times likelihood

Question 34

Generally in a risk assessment process, the first step is to

Answer
identify the threats that the company currently faces.
estimate the risk probability of negative events occurring.
estimate the exposure from negative events.
identify controls to reduce all risk to zero.

Question 35

The primary purpose of the Foreign Corrupt Practices Act of 1977 was

Answer
to require corporations to maintain a good system of internal control.
to prevent the bribery of foreign officials by American companies.
to require the reporting of any material fraud by a business.
All of the above are required by the act

Question 36

A special purpose hardware device or software running on a general purpose computer, which filters information that is allowed to enter and leave the organization’s information system, is known as a(n)

Answer
demilitarized zone.
intrusion detection system.
intrusion prevention system.
firewall.

Question 37

Multi-factor authentication

Answer
involves the use of two or more basic authentication methods.
is a table specifying which portions of the systems users are permitted to access.
provides weaker authentication than the use of effective passwords.
requires the use of more than one effective password.

Question 38

Which of the following is an example of a corrective control?

Answer
Physical access controls
Encryption
Intrusion detection
Incident response teams

Question 39

The Trust Services Framework reliability principle that states that users must be able to enter, update, and retrieve data during agreed-upon times is known as

Answer
availability.
security.
maintainability.
integrity

Question 40

In 2007, a major U.S. financial institution hired a security firm to attempt to compromise its computer network. A week later, the firm reported that it had successfully entered the system without apparent detection and presented an analysis of the vulnerabilities that had been found. This is an example of a

Answer
preventive control.
detective control.
corrective control.
standard control

Question 41

Which of the following is not one of the three important factors determining the strength of any encryption system?

Answer
Key length
Key management policies
Encryption algorithm
Privacy

Question 42

Jeff Davis took a call from a client. “Jeff, I need for my customers to make payments online using credit cards, but I want to make sure that the credit card data isn’t intercepted. What do you suggest?” Jeff responded “The best solution will be to implement

Answer
a virtual private network.”
a private cloud environment.”
an encryption system with digital signatures.”
a data masking program

Question 43

These are used to create digital signatures.

Answer
Asymmetric encryption and hashing
Hashing and packet filtering
Packet filtering and encryption
Symmetric encryption and hashing

Question 44

Which of the following is not one of the 10 internationally recognized best practices for protecting the privacy of customers’ personal information?

Answer
Providing free credit report monitoring for customers
Inform customers of the option to opt-out of data collection and use of their personal information
Allow customers’ browsers to decline to accept cookies
Utilize controls to prevent unauthorized access to, and disclosure of, customers’ information

Question 45

Jeff Davis took a call from a client. “Jeff, I need to interact online and real time with our affiliate in India, and I want to make sure that our communications aren’t intercepted. What do you suggest?” Jeff responded “The best solution will be to implement

Answer
a virtual private network.”
a private cloud environment.”
an asymmetric encryption system with digital signatures.”
multifactor authentication

Question 46

Sequentially prenumbered forms is an example of a(n)

Answer
data entry control.
data transmission control.
processing control.
input control.

Question 47

Error logs and review are an example of

Answer
data entry controls.
data transmission controls.
output controls.
processing controls

Question 48

This determines if all required data items have been entered.

Answer
Completeness check
Field check
Limit check
Range check

Question 49

A facility that is pre-wired for necessary telecommunications and computer equipment, but doesn’t have equipment installed, is known as a

Answer
cold site.
hot site.
remote site.
subsidiary location

Question 50

User reviews are an example of a(n)

Answer
data entry control.
data transmission control.
output control.
processing control

VERSION 3 LATEST
Question 1

The process of creating value for customers is the result of nine activities that form a
value chain.
profitable operation.
successful business.
support system.

Question 2

When two knowledgeable people acting independently each produce the sam