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ACCOUNTING
INFORMATION
SYSTEM
SUBMITTED BY:

BABALCON, MARIA
CAALAM, KEVIN
CABANGON, ABIGAIL
DONQUE, JENNYLYN
RAMOS, ERICKA

SUBMITTED TO:

MR. RHAMIR DALIOAN


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BATCH PROCESSING

BATCH PROCESSING MULTIPLE CHOICE QUESTION

1.Type of system in which data is collected together as a single unit is considered as:
a. Batch Processing c. Batch Unit
b. Batch System d. Batch Functioning

2. Delay in processing and hiring large staff is disadvantage of:


a. Batch queue c. Batch job
b. Batch processing d. Printing job queue

3. Which of the following errors would be detected by batch controls?


a. A fictitious employee as added to the processing of the weekly time cards by the computer operator.
b. An employee who worked only 5 hours in the week was paid for 50 hours.
c. The time card for one employee was not processed because it was lost in transit between the payroll department and
the data entry function.
d. All of the above.

4. What happens when costs are not isolated in batch processing?


a. It equally distributes overheads by unit across all products which clearly subsidizes lower-volume products.
b. High-volume customers and products tend to subsidize lower-volume ones.
c. It will have to assign conditional setups (those setups only required to run a different product through the process) as a
product-level cost based on the number of different products rather than on the number of batches produced of each
product.
d. None of the above

5. First step in running and preparing batch jobs is to:


a. Write on printed sheets c. Verification work
b. Wait in queue d. Stored output

6. An employee in the receiving department keyed in a shipment from a remote terminal and inadvertently omitted the
purchase order number. The best systems control to detect this error would be.
a. Batch total c. Sequence check
b. Completeness test d. Reasonableness test

7. Jobs waiting in a line to be processed as per instruction is classified as


a. Function Job c. System Job
b. Job Queue d. Job
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8. Mill Co. uses a batch processing method to process its sales transactions. Data on Mills sales transaction tape are
electronically sorted by customer number and are subject to programmed edit checks in preparing its invoices, sales
journals, and updated customer account balances. One of the direct outputs of the creation of this tape most likely would
be a.
a. Report showing exceptions and control totals.
b. Printout of the updated inventory records.
c. Report showing overdue accounts receivable.
d. Printout of the sales price master file.

9. Batch processing is used in data transmission for


a. Very large files c. Where a fast response time is critical
b. Small files d. Data Transmission Unit activities.

10. It is processing transaction in a group or batch and no user interaction is required.


a. Interactive Processing c. Batch Processing
b. Transaction Processing d. On Line Real Time Processing

11. Which of the following is not a characteristic of a batch processed computer system?
a. The collection of like transactions which are sorted and processed sequentially against a master file.
b. Keypunching of transactions, followed by machine processing.
c. The production of numerous printouts.
d. The posting of a transaction, as it occurs, to several files, without immediate printouts.

12. Each piece of work to be processed and treated as single batch is classified as:
A. Job Terminal C. Function Job
B. Job D. System Job

13. A system that takes a set of commands or jobs, executes them and returns the result.
A. System Job C. On Line Real Time Processing
B. Transaction Processing D. Batch Processing

14. Misstatements in a batch computer system caused by incorrect programs or data may not be detected immediately
because
a. Errors in some transactions may cause rejection of other transactions in the batch.
b. The identification of errors in input data typically is not part of the program.
c. There are time delays in processing transactions in a batch system.
d. The processing of transactions in a batch system is not uniform.

15. Second step in running and preparing batch job is to:


a. Wait in queue c. Stored output
b. Write on printed sheets d. Verification work

16. At the end of the work period, the following task are performed in batch process except:
a. Labor cost are distributed to WIP, overhead and expense account
b. The Employee records file is updated
c. Paychecks are prepared, signed but will be held by supervisors
d. Funds sufficient to cover full amount of the payroll are transferred to payroll imprest account, and the transfer is recorded
in the check register

17. Which of the following is a benefit of a batch control?


a. Grouping transactions by deposit c. Grouping transactions by department
b. Payment control d. Allows entry and monitor control totals

18. Which of the following is not a benefit of batch processing?


a. It can shift the time of job processing to when the computing resources are less busy.
b. It avoids idling the computing resources with minute-by-minute manual intervention and supervision.
c. It allows the system to use different priorities for interactive and non-interactive work.
d. None of the above

19. The following are examples of batch processing except:


a. Processing of bank checks c. Payroll
b. Utility Billing d. None of the above

20. Last step in running and preparing batch job:


a. Printout is return c. Printout is queued
b. Printout is started d. Printout is verified
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ON-LINE/REAL-TIME PROCESSING

ON-LINE/REAL-TIME MULTIPLE-CHOICE QUESTIONS

1. What best defines online computer systems.


a. A system that connects gets information through the internet
b. System that enable users to access data and programs directly through terminal devices.
c. Can let access through a multiple connected computer in one location
d. Secured online based connection.

2. The Following are types of online system except.


a. Online/real time c. Online Memo Update.
b. Online batch d. All of the above

3. I. Online/real time systems are the classic online systems where transactions update the master file immediately.
II. Online batch systems are those with online data capture but not batch updates.
a. Only statement I is correct.
b. Only statement II is correct.
c. Both statements are incorrect
d. Both statements are correct

4. Effect of online systems on audit procedures.


a. Save time
b. Ease of access
c. more effective for the auditor to perform a pre-implementation review of new on-line accounting applications
than to review the applications after the installation
d. All of the above.

5. Online memo update is also known as


a. Update c. White update
b. 3-dimensional update d. Shadow update

6. On-line real-time systems and electronic data interchange systems have the advantages of providing more timely
information and reducing the quantity of documents associated with less automated systems. The advantages,
however, may create some problems for the auditor. Which of the following characteristics of these systems does not
create an audit problem?
a. The lack of traditional documentation of transactions creates a need for greater attention to programmed
controls at the point of transaction input
b. Hard copy may not be retained by the client for long periods of time, thereby necessitating more frequent visits
by the auditor
c. Control testing may be more difficult given the increased vulnerability of the client's files to destruction during the
testing process.
d. Consistent on-line processing of recurring data increases the incidence of errors.

7. Computer systems that enable users to access data and programs directly through workstations are referred to as
a. On-line computer systems
b. Personal computer systems
c. Database management systems (DBMS)
d. Database systems
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8. On-line systems allow users to initiate various functions directly. Such functions include:
I. Entering transactions
II. Requesting reports
III. Making inquiries
IV. Updating master files
a. I, II, III and IV
b. I and II
c. I, II and III
d. I and IV

9. Refers to the technique of updating files with transaction data immediately after the occurrence of the event.
a. On-line / real-time processing
b. Interactive processing
c. Time Sharing
d. Decision support system

10. Refers to processing of individual transactions as they occur from their point of origin as opposed to
accumulating them into batches
a. On-line processing system
b. Interactive processing
c. Time Sharing
d. Decision support system.

11. It is a system that can handle large volumes of process each day and create operational efficiencies.
a. On-line / Real-Time processing c. Time Sharing
b. Interactive processing d. Decision support system

12. One of the advantages of a real-time system is that the system checks for input errors, and errors can be
corrected immediately.
a. TRUE c. MAYBE
b. FALSE d. ANSWER NOT GIVEN
13. An organization that has applications having large volumes of similar transactions that can be processed at
regular intervals is best suited to use which method of processing?

a. Real-time processing c. Batch processing


b. Point of sale processing d. Sequential processing

14. The processing system where transactions are processed immediately and where output is available immediately
is referred to as:

a. Batch Processing c. On-line / Real-time processing


b. External processing d. Sequential processing

15. The advantages to On-line / real-time processing include:


a. As the data are entered, the system checks for input errors - therefore, errors can be corrected immediately.
b. Information is provided to users on a timely basis.
c. All files are constantly up-to-date.
d. All of the above are advantages

16. The disadvantages to On-line / real-time processing include:


a. Processing can take longer than normal if the master files are large
b. Adding or deleting records takes a considerable amount of time.
c. The single database that is shared is more susceptible to unauthorized access.
d. Data duplication is likely because each process uses its own master file

17. Which of the following is not correct regarding the differences in the ways that real-time systems differ from
batch systems?

On-line / Real-Time Systems Batch Systems

a. Must use direct access files. Can use simple sequential files.

b. Processing occurs on demand. Processing must be scheduled.

c. Processing choices are menu-driven. Processing is interactive.

d. Supporting documents are prepared Supporting documents are prepared

as items are processed. during scheduled runs.


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18. How would On-line/real-time processing provide a benefit to managers overseeing business processes?

a. It does not provide system check for input errors


b. It provides system check for input error.
c. It allows files not to be always available.
d. None of the above.

19. On-line/Real-time processing is best suited to applications in which there is a small volume of records, and only a
few records are needed to process any individual transaction
a. True b. False c. Maybe d. Answer not given

20. It enhances the efficiency of information availability.


a. Batch Processing c. Sequential Processing
b. On-line/Real-time Processing d. External Processing.
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REVENUE ACCOUNTING SYSTEM

REVENUE ACCOUNTING SYSTEM MULTIPLE-CHOICE QUESTIONS

1. All of the following way that a customer can pay for goods or services EXCEPT.
a. Credit card sale
b. Cash sale
c. Invoice sale
d. Credit card
2. A box of merchandise received by business would include an.
a. Invoice
b. Purchase requisition
c. Purchase order
d. Packing slip
3. Which one of the following activities is not associated with the customer section of the home page?
a. Finance charges
b. Purchase order
c. Refunds and credit
d. Statement
4. Bill of lading
a. A document issued by the common carrier specifying that it has received the foods for shipping, it can serve as title
of the goods
b. A document that latter turns into a bankers acceptance
c. A time draft that calls for payment upon physical delivery of goods
d. None of the above
5. Which of the following is not a component in SAP sales and distributed?
a. Sales support
b. Production planning
c. Billing related
d. Foreign trade
6. The document prepared by the seller is an
a. Purchase requisition
b. Invoice
c. Purchase order
d. None of the above
7. In a consignment sale
a. The exporter retains title to the merchandise that is shipped
b. The importer only pays the exporter after he has sold the merchandise
c. If the importer cannot sell the merchandise he returns it to the exporter
d. All of the above
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8. Which of the following is responsible for type of shipping, transport means and shipping materials?
a. Sales organization
b. Shipping condition
c. Shipping point
d. Transportation management
9. What are the three basic documents that a typical foreign trade transaction required
a. Letter of credit, bankers acceptance, and bill of lading
b. Letter of credit, time draft, and bill of lading
c. Letter of credit banker acceptance, and time draft
d. None of the above
10. Which document indicate of goods from the enterprise to a common carrier
a. Picking slip
b. Sales returns
c. Sales invoice
d. Bill of lading

11. Under the billing of lading, which of the following statements are true?
a. Documentary sales are designed solely to protect the interest of banks
b. Documentary sales are designed solely to protect the interest of seller
c. Documentary sales are designed solely to protect the interest of buyer
d. Documentary sales are designed solely to protect the interest of bank, buyer and seller
12. A bill of lading fulfil their main roles; it is receipts, it evident the____ and it is a document of title to the good;
a. Validity of sales
b. Remittance advice
c. Delivery receipts
d. Contract of carriage
13. A bill of lading which states that the goods are consigned to a named person without more is known as a_____ consigned
bill;
a. Seller
b. Straight
c. Buyer
d. Owner
14. A bill of lading which states that the goods are in the hands of the carrier and are to be loaded on a ship is called a
______ bill;
a. Received for shipment
b. Remittance advice
c. Bill of lading
d. Delivery receipts
15. Billing, warehouse and shipping are under in;
a. Sales information
b. Sales order
c. Bill of lading
d. Cash receipts
16. In the revenue cycle, a well-designed in AIs should provide adequate control to ensure that the following objectives are
met, except?
a. Restricting access to blank documents
b. Asset are safeguard from looking or theft
c. All valid and authorized transaction are recorded
d. Business activities are performed efficiently and effectively
17. Information is needed for the following operational tasks in the revenue cycle, except?
a. Responding to customer inquires
b. Determine inventory availability
c. Establishing policies on returns and warranties
d. Selecting merchandise delivery method
18. The third revenue cycle activity is billing customer, what are the two tasks involves?
a. Invoicing and updating accounts receivable
b. Open-invoice and balance-forward
c. Allowance for damaged goods and write-off of uncollectable
d. None of the above
19. The picked inventory is then transferred to the shipping department, technology such as;
a. Bar-code scanner
b. RFID tags, wireless device
c. A and B are correct
d. Only B are not correct

20. Normally its the cashier who is responsible for customer remittance and to deposit then into the bank?
a. Cash collection
b. Sales invoice
c. Remittance advice
d. Accounts payable department
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DISBURSEMENT ACCOUNTING SYSTEM

DISBURSMENT ACCOUNTING SYSTEM MULTIPLE-CHOICE QUESTIONS

1. Matching the suppliers invoice, the purchase order, and the receiving report normally should be the responsibility
of the:
a. Warehouse receiving function c. General accounting function
b. Purchasing function d. Treasury function
2. To avoid potential errors and irregularities, a well-designed system of internal accounting control in the accounts
payable area should include a separation of which of the following functions?
a. Cash disbursements and vendor invoice verification
b. Vendor invoice verification and merchandise ordering
c. Physical handling of merchandise received and preparation of receiving reports
d. Check signing and cancelation of payment documentation
3. Which of the following constitutes the most significant risk within the purchasing cycle?
a. Receiving department personnel sign receiving documents without inspecting or counting goods.
b. Large quantities of relatively inexpensive parts are stored in open areas near workstations to reduce
production slowdowns.
c. Poor records of transfers between warehouses often result in unnecessary purchases and excess
inventories.
d. Warehouse personnel do not compare quantities received to quantities shown on transfer tickets.
4. Which of the following documents contains the department authorization for a purchase?
a. Purchase order c. Purchase requisition
b. Blanket Purchase order d. Receiving report.
5. Which of the following would be the most appropriate test to determine whether purchase orders are being
processed on a timely basis?
a. Determine the dates of unpaid accounts payable invoices.
b. Compare dates of selected purchase orders with those of purchase requisitions.
c. Select a block of used purchase order numbers and account for all numbers in the block.
d. Discuss processing procedures with operating personnel and observe actual processing of purchases.
6. When goods are received, the receiving clerk should match the goods with the
a. purchase order and the requisition form
b. vendors invoice and the receiving report
c. vendors shipping document and the purchase order
d. receiving report and the vendors shipping document
7. The authority to accept incoming goods in receiving should be based on a(an)
a. vendors invoice c. bill of lading
b. materials requisition d. approved purchase order
8. What are the typical disbursement cycle functions?
a. Verify the accuracy of vendor invoices
b. Select the appropriate vendors from whom to order
c. Monitor the cash flow needed to pay obligation
d. All of the above

9. The receiving department prepares a receiving report indicating the receipt of goods. One copy of the report
remains in receiving. The other copy of the report
a. Goes to the accounts receivable department c. Goes to the accounts payable department
b. Goes to the purchasing department. d. Goes to the stores.
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10. What is the most effective technique used to minimize the risk of an inaccurate inventory counts?
a. Quick visual comparison of amounts received and those indicated on the packing slip
b. Using the Economic Order Quantity model
c. The use of a bar-coding or radio frequency identification tag (RFID) system
d. The use of just-in-time (JIT) accounting systems.
11. In cash disbursements application systems, the voucher package should be canceled by
a. Cash Disbursement c. Expense ledger distribution
b. Accounts Payable d. General ledger

12. In cash disbursement system, in order to provide accountability for purchasing, copies of purchase requisitions
should be sent to
a. The vendor c. Accounts Payable
b. Cash disbursement d. Receiving
13. Which of the following documents is not always a part of the voucher package?
a. Purchase order c. Vendor invoice
b. Receiving report d. Disbursement voucher
14. Within the Disbursement cycle, internal information flows
a. From the production cycle to the expenditure cycle c. To the general ledger from the expenditure cycle.
b. From the revenue cycle to the expenditure cycle d. All of the above are correct

15. What is not an advantage to using disbursement vouchers?


a. Disbursement vouchers reduce the number of checks written.
b. Disbursement vouchers can be prenumbered which simplifies the tracking of all payables.
c. Disbursement vouchers facilitate separating the time of invoice approval from the time of invoice
payment.
d. There are no disadvantages to using disbursement vouchers
16. In a typical cash disbursement procedure, who usually handles the checks and may even be able to sign checks
up to a certain dollar limit?
a. The accounts payable supervisor. c. The cashier.
b. The controller d. The treasurer

17. Its primary objective is to minimize the total cost of acquiring inventories and supplies.
a. Cash Accrual Cycle c. Disbursement Cycle
b. Revenue Cycle d. Renewal cycle

18. A key decision with respect to the disbursement cycle does not include the optimal level of inventory.

a. True b. False c. neither a or b d. none of the above

19. In cash disbursement which of the following inventory approaches best allows for products with short life cycles
and unpredictable patterns of demand?

a. economic order quantity (EOQ) b. Just-In-Time (JIT) c. Material requirements planning (MRP)

20. A voucher package should include


a. A purchase requisition, vendor invoice, and receiving report
b. A purchase order, vendor invoice, and receiving report
c. A purchase requisition, purchase order, and receiving report
d. A bill of lading and vendor invoice
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FINANCIAL REPORTING SYSTEM

FINANCIAL REPORTING SYSTEM MULTIPLE-CHOICE QUESTIONS

1. International Financial Reporting Standards (IFRS) could be used by a country by:


a. Adopting IFRS as its national GAAP.
b. Allowing domestic listed companies to use IFRS.
c. Requiring or allowing foreign companies listed on domestic stock exchanges to use IFRS.
d. Requiring domestic listed companies to use IFRS in preparing consolidated financial statements.
e. All of the above.
2. International Accounting Standards (IAS) have been developed by:
a. The International Accounting Standards Committee
b. The Financial Reporting Council
c. The International Organization of Securities Commission (IOSCO)
d. The European Commission
e. None of the above is correct
3. Which of the following items would potentially prevent a common set of standards?
a. IFRSs written or translated in several languages
b. Different interpretations of IFRS
c. Similarities in the level of accounting value
d. Principle-based standards
e. Similar national cultures
4. The body that has superseded the International Accounting Standards Committee is the:
a. International Accounting Standards Commission
b. International Financial Reporting Council
c. International Financial Reporting Board
d. International Accounting Standards Board
e. None of the above is correct
5. According to the IASB Framework, the main purpose of financial reporting is to:
a. Help the managers to run the business
b. Enable investors to make economic decisions
c. Calculate taxable income
d. Calculate prudently distributable profit
e. None of the above is correct
6. According to the IASB Framework:
a. Reliability overrides relevance
b. The relative importance of the characteristics in different cases is a matter of professional judgement
c. Prudence overrides relevance
d. Relevance overrides reliability
e. Relevance and reliability must be maximized, with a trade-off when they conflict
7. The convention of consistency refers to consistent use of accounting principles:
a. Across accounting periods
b. Among enterprises belonging to different industries
c. Throughout the accounting period
d. Within industries
e. None of the above is correct
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8. The charging of depreciation expense over the life of an asset rather than the immediate full expensing of its costs
is an example of:
a. Consistency c. Prudence e. None of the above is correct
b. Reliability d. Matching
9. Which of the following statements best describes the term 'going concern'?
a. The potential to contribute to the flow of cash and cash equivalents to the entity
b. When current assets less current liabilities become negative
c. The income less expenses of an entity are negative
d. The ability of the entity to continue in operation for the foreseeable future
e. None of the above is correct
10. Which of the following statements is true of the qualitative characteristics of 'understandability' in relation to
information in financial statements?
a. Financial statements should be free form material error
b. Financial statements should exclude complex matters
c. Users should be willing to study the information with reasonable diligence
d. Users are expected to have significant business knowledge
e. None of the above is correct
11. Which of the following terms best describes information in financial statements that is neutral?
a. Understandable c. Relevant e. None of the above is correct
b. Unbiased d. Reliable
12. Which of the following terms best describes financial statements whose basis of accounting recognizes transactions
and other events when they occur?
a. Going concern basis of accounting c. Accrual basis of accounting e. None of the above
b. Cash basis of accounting d. Invoice basis of accounting
13. Which of the following is the best description of 'reliability' in relation to information in financial statements?
a. Comprehensibility to users
b. Influence on the economic decisions of users
c. Including a degree of caution
d. Freedom from material error
e. None of the above is correct
14. Which of the following terms best describes information that influences the economic decisions of users?
a. Reliable c. Understandable e. None of the above is correct
b. Prospective d. Relevant
15. Which two of the following are listed in the IASB Framework as 'underlying assumptions' regarding financial
statements?
a. The financial statements are prepared under the accrual basis
b. The enterprise can be viewed as a going concern
c. The financial statements are reliable
d. Any changes of accounting policy are neutral
e. None of the above is correct
16. Financial statements include a balance sheet, an income statement and a statement of changes in equity. Which
two of the following are also included within the financial statements?
a. An auditor's report
b. A directors' report
c. Accounting policies
d. A cash flow statement
e. None of the above is correct
17. According to the IASB Framework, which two of the following characteristics are described as principal qualitative
characteristics that make the information provided in financial statements useful to users?
a. Relevance
b. Going concern
c. Accrual
d. Understandability
e. None of the above is correct
18. A series of reports that are time-consuming and expensive to prepare is presented to the board of directors each
month even though the reports are never used'. Which of the following qualitative characteristics or constraints is
violated by this statement?
a. Prudence
b. Materiality
c. Balance between benefit and cost
d. Completeness
e. Comparability
19. Differences between IFRS and U.S. GAAP exist. The use of the lower-of-cost-or market rule in valuing inventory and
difference in interpreting market is an example of:
a. Timing differences.
b. Disclosure differences.
c. Recognition differences.
d. Presentation differences.
e. measurement differences

20. The agreement between FASB and IASB to use their best efforts to make financial reporting standards fully
compatible and to ensure compatibility is maintained in the:
a. Business Combinations Project.
b. Convergence Framework Project.
c. Conceptual Research Project.
d. Norwalk Agreement.
e. Companies Act.
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BUS TOPOLOGY

MULTIPLE CHOICE QUESTIONS FOR BUS TOPOLOGY

1. A network setup in which each computer and network device are connected to a single cable or backbone.
a. Star Topology c. Ring Topology
b. Mesh Topology d. Bus Topology
2. This topology requires multipoint connection
a. Bus Topology c. Ring Topology
b. Mesh Topology d. Star Topology
3. Bus Topology is mostly used in:
a. LAN c. WAN
b. MAN d. Internetwork
4. Alternatively referred to as Line Topology:
a. Mesh Topology c. Ring Topology
b. Bus Topology d. Tree Topology
5. It is the simplest of network topologies
a. Bus Topology c. Ring Topology
b. Star Topology d. Mesh Topology
6. Traffic congestion is a major issue in ________
a. Star Topology c. Tree Topology
b. Ring Topology d. None of the above
7. It consists of a main run of cable with a terminator at each end, all nodes are connected to the linear cable.
a. Mesh Topology c. Bus Topology
b. Tree Topology d. Star Topology
8. It is inexpensive and easy to install:
a. Bus Topology c. Star Topology
b. Ring Topology d. Mesh Topology
9. Which of the following is an advantage of a Bus Topology?
a. It requires less cable
b. It is best suited for all networks
c. It is cheap and, easy to handle and implement
d. All of the Above
10. Which of the following is a disadvantage of Bus Topology?
a. The cable length is limited that limits the number of stations that can be connected
b. This network topology can perform well with high number of nodes
c. Both A & B
d. None of the above
11. The most common network topologies include all of the following except:
a. Bus Topology c. Tree Topology
b. Loop Topology d. Star Topology
12. All of the these are true about linear network topology except
a. Computers are connected on a single cable
b. It is also known as Bus Topology
c. It is more expensive than other topologies
d. It is most commonly used in peer-to-peer networks
13. All computers on a passive topology network can receive signals that are transmitted across the network. To avoid
signals from bouncing back on the bus to computers that already receive the signal, a __________ is used at the end
a. Terminator c. Non-bouncing signal
b. Dumb Terminal d. End cap
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14. Which one of the following topologies would require the least cabling?
a. Mesh topology. c. Bus topology.
b. Star topology. d. Tree Topology
15. All nodes like workstations, printers, laptops, servers, etc. are connected to the __________
a. Linear Cable c. Desktop
b. End Cap d. None of the above
16. Which of the following about disadvantage of Bus Topology is true?
a. It is meant to use as a stand-alone solution
b. Easy to identify the problem if the entire network shuts down
c. Terminators are not required at both ends of the backbone cable
d. Entire network shuts down if there is a break in the main cable.
17. A host on a bus network is called:
a. Station/Workstation c. Cable
b. Bus Master d. Resistor
18. Which of the following is true in Bus Topology?
a. Each network host is connected to a central hub with a point-to-point connection
b. Each node is connected to a single cable
c. Data travels around the ring in one direction
d. All nodes are interconnected
19. A topology that can only transmit data in one direction, and if any network segment is severed, all network transmission
ceases.
a. Ring Topology c. Bus Topology
b. Tree Topology d. Star Topology
20. In a ___________, only one device is allowed to transmit at a given point of time
a. Ring Topology c. Bus Topology
b. Tree Topology d. Star Topology
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STAR TOPOLOGY

MULTIPLE CHOICE QUESTIONS FOR STAR TOPOLOGY

1. A topology for a Local Area Network (LAN) in which all nodes are individually connected to a central connection point,
like a hub or a switch|
a. Star Topology c. Bus Topology
b. Ring Topology d. Mesh Topology
2. Which of the following is an advantage to using star topology networks over using bus or ring topology networks?
a. Star topology networks are more scalable.
b. Star topology networks are less expensive to install.
c. Star topology networks are easier to install.
d. Star topology networks are more secure
3. What would happen if a node in a star-wired Ethernet network failed?
a. Performance over the entire network would suffer slightly.
b. Only the failed node would be unable to transmit or receive data.
c. Data could no longer be transmitted or received at any point in the network.
d. The failed node would broadcast errors to the rest of the network
4. What is the function of a hub in a star-wired network?
a. To reduce RF emissions that may result in security breaches.
b. To increase available bandwidth by sending multiplexed signals.
c. To arbitrate addressing conflicts between sending nodes.
d. To repeat signals to all nodes on the segment
5. In a network using the star topology, five workstations and a hub would be connected via how many physical cables?
a. Three c. Five
b. Four d. Six
6. In which of the following networks would it make the most sense to implement a star topology?
a. A home network that connects two computers
b. A WAN that connects freelance writers across the nation
c. A LAN that connects a dozen computers in an insurance company
d. Both A & C
7. What would happen to a star network if one of its workgroup hubs failed?
a. All nodes connected to that hub would be unable to communicate with nodes on other segments, but they could
communicate with each other.
B. All nodes connected to that hub would be unable to communicate with nodes on other segments as well as nodes on
their own segment.
C. Nodes would be able to communicate with the network, as they would automatically connect to an alternate hub on
the backbone.
D. Communication on the entire LAN would halt.
8. What type of terminator is used on a star-wired network?
a. 20-ohm resistor c. 100-ohm resistor
b. 50-ohm resistor d. Terminators are not used on star-wired networks
9. The most common protocol for star network is:
a. Modem c. DSL
b. Cable d. Ethernet
10. In star topology if central hub goes down, it effects
a. One node c. Whole system
b. No node d. None of the above
16

11. Star topology is used in


a. LAN c. MAN
b. WAN d. Internetwork
12. In Star topology, central controller is called
a. Node c. Hub
b. Router d. Modem
13. A topology that benefit is that if a cable fails, only one node will be brought down
a. Star Topology c. Bus Topology
b. Mesh Topology d. Ring Topology

14. A __________ is an implementation of a spokehub distribution paradigm in computer networks


a. Bus Topology c. Star Topology
b. Tree Topology d. Mesh Topology
15. In star topology, __________ manages and controls all functions of the network. It also acts as a repeater for the data
flow.
a. Node c. Hub
b. Router D. Modem
16. It reduces the impact of a line failure by connecting all of the systems to a central node.
a. Star Topology c. Ring Topology
b. Ring Topology d. Bus Topology
17. Which of the following is the advantage of star topology?
a. Devices cant be added or removed without disturbing the network
b. If one node or its connection breaks it doesnt affect the other computers and their connections
c. An expensive network layout to install because of the amount of cables needed
d. None of the above
18. Which of the following is disadvantage of star topology?
a. Devices can be added or removed without disturbing the network
b. Not an expensive network layout to install because of the amount of cables needed
c. The central hub is a single point of failure for the network
d. All of the above
19. In _________ new nodes can be added easily without affecting rest of the network. Similarly, components can also be
removed easily.
a. Ring Topology c. Mesh Topology
b. Star Topology d. Tree Topology
20. Which is not a disadvantage of a star topology?

a. Too much dependency on central device has its own drawbacks. If it fails whole network goes down.
b. The use of hub, a router or a switch as central device increases the overall cost of the network.
c. Performance and as well number of nodes which can be added in such topology is depended on capacity of central
device.
d. None of the following
17

RING TOPOLOGY

MULTIPLE CHOICE QUESTIONS FOR RING TOPOLOGY

1. A network topology in which each node connects to exactly two other nodes, forming a single continuous
pathway for signals through each node
a. Ring topology b. Mesh topology c. Star topology d. Bus topology
2. In ring topology data travels from ____________.
a. wire to wire b. end to end c. node to node d. station to station
3. What kind of shape does ring topology form?
a. Star shape b. circular c. square d. oblong
4. Can we use Ring topology in both WAN and LAN?
a. Yes b. No c. neither a or b d. Answer not given
5. The following are advantages EXCEPT
I. All data flows in one direction, reducing the chance of packet collisions
II. A network server is not needed to control network connectivity between each workstation.
III. The entire network will be impacted if one workstation shuts down.
a. I b. II c. III d. answer not given
6. The following are advantages pf Ring topology EXCEPT
I. All data flows in one direction, reducing the chance of packet collisions
II. A network server is not needed to control network connectivity between each workstation.
III. Data can transfer between workstations at high speeds.
a. I b. II c. III d. none of the above
7. All data being transferred over the network must pass through each workstation on the network, which can make
it slower than a star topology. Data can transfer between workstations at high speeds.
a. both statements are disadvantage of ring topology
b. Only statement 1 is disadvantage if ring topology
c. both statements are advantage of ring topology
d. Only statement II is disadvantage of ring topology.
8. A network server is not needed to control network connectivity between each workstation.
This statement is an advantage of RING topology.
a. True b. False c. Neither A or B d. Answer not given
9. The following are disadvantages of Ring topology EXCEPT
I. All data being transferred over the network must pass through each workstation on the network, which can make
it slower than a star topology.
II. The entire network will be impacted if one workstation shuts down.
III. The hardware needed to connect each workstation to the network is more expensive than Ethernet cards and
hubs/switches.
a. I b. II c. III d. All the given sentences are disadvantage
18

10. Because a unidirectional ring topology provides only one pathway between any two nodes, unidirectional ring
networks may NOT be disrupted by the failure of a single link
a. True b. False c. Neither A or B d. Answer not given

11. A type of network topology where each node is exactly connected to two other nodes, forward and backward,
thus forming a single continuous path for signal transmission.
a. Ring topology b. Mesh topology c. Star topology d. Bus topology

12. How many types of ring topology are there?


a. 1 b. 2 c. 3 d. 105

13. What are the two types of ring topology?


a. Unidirectional and Bidirectional c. Non-directional and One directional
b. One directioner and Anti directioner d. Symmetrical and non-symmetrical

14. This type of ring topology handles data traffic in either clockwise or anticlockwise direction.
a. Bidirectional b. Unidirectional c. One-directioner d. Anti-directioner

15. A type of ring topology handles data traffic in both the direction and can be a full duplex network.
a. Bidirectional b. Unidirectional c. One-directioner d. Anti-Onedirectioner

16. In ring topology it is a permission packet which allows a particular node the permission to release information over
the network.
a. Packet b. token-passing c. cookie-passing d. bit-passing

17. Token passing makes ring topology perform better than bus topology under heavy traffic
a. Advantage of ring topology c. disadvantage of ring topology
b. Advantage of bus topology d. disadvantage of bus topology

18. In Unidirectional Ring, a data packet must pass through all the nodes.
a. Advantage of ring topology c. disadvantage of ring topology
b. Advantage of bus topology d. disadvantage of bus topology

19. Lets say A, B, C, D and E are a part of the ring network. The data flow is from A towards B and henceforth. In this
condition, if E wants to send a packet to D, the packet must
a. traverse C and B network to reach D c. traverse A and E network to reach D.
b. traverse the entire network to reach D. d. traverse B and A network to reach D.

20. Communication delay is directly proportional to number of nodes in the network.


The sentence above is advantage of ring topology
a. True b. False c. Neither A or B d. Answer not given
19

TREE TOPOLOGY

MULTIPLE CHOICE QUESTIONS FOR TREE TOPOLOGY

1. Topology that combines characteristics of linear bus and star topologies


a. Mesh Topology b. Ring Topology c. Tree Topology d. Bus Topology
2. Tree topology consists of groups of star-configured workstations connected to a linear bus backbone cable.
a. True b. False c. Neither A or B d. Answer not given
3. Advantage of tree topology
a. Point-to-point wiring for individual segments.
b. Easy to connect a computer or peripheral to a linear bus
c. Entire network shuts down if there is a break in the main cable
d. Easy to detect faults and to remove parts
4. Another advantage of tree topology
a. Overall length of each segment is limited by the type of cabling used
b. If the backbone line breaks, the entire segment goes down
c. More difficult to configure and wire than other topologies
d. Supported by several hardware and software vendors.
5. Disadvantage of tree topology
a. If the backbone line breaks, the entire segment goes down
b. Supported by several hardware and software vendors
c. Point-to-point wiring for individual segments
d. Easy to detect faults and to remove parts
6. Another disadvantage of tree topology
a. Easy to install and wire
b. No disruptions to the network when connecting or removing devices
c. Easy to detect faults and to remove parts
d. Overall length of each segment is limited by the type of cabling used
7. One of the following is a disadvantage of tree topology:
a. Easy to connect a computer or peripheral to a linear bus
b. Requires less cable length than a star topology
c. No disruptions to the network when connecting or removing devices
d. More difficult to configure and wire than other topologies
20

8. A special type of structure in which many connected elements are arranged like the branches of a tree.
a. Mesh topology b. Bus topology c. Tree topology d. Ring topology
9. Tree topology is also known as a
a. Mesh bus topology c. Star bus topology
b. Ring star topology d. Ring bus topology
10. _____ is a tree topology in which every node has a maximum of two children
a. genetic programming c. Tertiary tree
b. binary tree d. Delta tree
11. The tree like structure allows you to have many servers on the network and you can branch out the network in
many ways.
a. Bus topology c. Mesh topology
b. Tree topology d. Start topology
12. Tree Topology Feature
a. has two kinds of topology integral in it, the star and the linear way of connecting to nodes
b. Difficult to identify the problem if the entire network shuts down
c. Neither a or b
d. None of the above
13. There will be at least three levels of hierarchy in the Tree Network Topology and they all work based on the root
node
a. True b. False. c. neither a or b d. answer not given.
14. Tree topology is ideal and best works in
a. colleges, universities and schools c. Sari-sari store
b. house d. computer shop
15. A Tree Network may not suit small networks and it may be a waste of cable to use it for small networks
a. False b. True c. neither a or b d. answer not given
16. In Tree topology NOT, all l the computers have access to the larger and their immediate networks.
a. False b. True c. neither a or b d. answer not given
17. Best topology for branched out networks
a. Mesh b. Bus c. Star d. Tree
18. A network that is entirely dependent on the trunk which is the main backbone of the network. If that has to fail
then the entire network would fail.
a. Mesh b. Bus c. Star d. Tree
19. Since the Tree Topology network is big it is NOT difficult to configure and can get complicated after a certain
point.
a. False b. True c. neither a or b d. answer not given
20. In Tree topology each level in the hierarchy follows a certain pattern in connecting the nodes.
a. False b. True c. neither a or b d. answer not given
21

MESH TOPOLOGY

MULTIPLE CHOICE QUESTIONS FOR MESH TOPOLOGY

1. Which of the following is the most fault tolerant WAN topology?


A. Partial mesh
B. Full mesh
C. Ring
D. Bus
2. Which of the following types of topology has at least two network connections on every device on the network?
A. Bus
B. Mesh
C. Ring
D. Star
3. In mesh topology, devices are connected via.
A. Multipoint link
B. Point-to-point link
C. No link
D. None of the above
4. What is not multipoint topology?
A. Star
B. Ring
C. Mesh
D. Bus
5. Which of the following network topologies is the fault tolerant?
A. Mesh
B. Hierarchical star
C. Ring
D. Star
6. The most widely use topology is the internet and the telephone network.
A. Star
B. Bus
C. Mesh
D. Token ring
7. Which of the following is not a common logical topology?
A. Bus
B. Ring
C. Star
D. Mesh
22

8. A single cable that runs the length of a computer network is called.


A. Line
B. Cable
C. Segment
D. Interruption
9. Which of the following advantages does a partial mesh topology provide?
A. All node has multiple connections to the network
B. At least some nodes have multiple connection to the network
C. Any nodes can be taken down without effecting network performance
D. Network performance will be similar, no matter what kind of link is used between nodes
10. A mesh topology is also called a________,
A. Server
B. Peer-to-peer
C. Multipoint
D. Point-to-point
11. Which of the following organizations is most likely to use a full mesh WAN.
A. A school districts
B. A regional charitable organization
C. A regional power companies
D. A local chair of grocers
12. What would happen to the entire network if one of the nodes in a full mesh WAN would suffer.
A. Performance for all location on the WAN would suffer
B. The failed locations would be unable to transmit or receive data, but other locations could communicate
without a problem
C. Data would no longer be transmitted to a from any of the locations
D. The failed location would broadcast error to every other location
13. The topology with highest reliability.
A. Bus topology
B. Star topology
C. Ring topology
D. Mesh topology
14. In topology, every node has a dedicated point-to-point link every other node.
A. Star
B. Bus
C. Mesh
D. Ring
15. In the topology, each workstation is connected directly to each of the other.
A. Full mesh
B. Partial mesh
C. Both A and B
D. None of the above
16. In the topology, so workstations are connected to all the others, and some are connected only to those other
nodes with which they exchange the most data.
A. Full mesh
B. Partial mesh
C. Both A and B
D. None of the above
17. What is the name of network topology in which there are bi-directional links between each possible node?
A. Star
B. Bus
C. Mesh
D. Ring
18. Which of the following advantage of mesh topology?
A. Cost effective
B. Robust
C. Combination of two topologies
D. Heavily cabled
19. Which controller network would you recommend if your family wants to add a network at home for sharing a
printer, a desktop computer and a laptop computer?
A. Peer-to-peer
B. WAN
C. LAN
D. Server-based
20. In mesh topology, every device has a dedicated topology of.
A. Multipoint linking
B. Point-to-point linking
C. None of the above
D. Both A and B
23

E-COMMERCE/E-BUSINESS

MULTIPLE CHOICE QUESTIONS FOR MESH TOPOLOGY

1. E-commerce is often seen as simply buying and selling using the internet but do the following, perspectives apply to e-
commerce?
a. An online perspective c. A business process perspective
b. A communications perspective d. A service perspective
e. All of the above

2. E-business is a term used to describe:


a. An organization using electronic media to sell direct to its customers
b. The use of electronic communications for all business processes
c. An organization using electronic media to purchase from to its suppliers
d. Any electronically mediated communication between an organization and its stakeholders
e. None of the above
3. When you look at e-commerce and e-business, which is the most realistic relationship between these two concepts?
a. E-commerce is a subset of e-business c. E-business is a subset of e-commerce
b. E-commerce is broadly equivalent to e-business d. E-commerce has some overlap with e-business
e. None of the above
4. Buy-side e-commerce is different from sell-side e-commerce in that it involves:
a. An organization using electronic media to purchase from to its suppliers
b. An organization using electronic media to sell direct to its customers
c. The use of electronic communications for all business processes
d. Any electronically mediated communication between an organization and its stakeholders
e. None of the above
5. Different types of sell-side e-commerce exist and there are main types of online presence. Which of the following would
be suited to sell-side e-commerce?
a. All of the below c. Portal, publisher or media sites
b. Transactional e-commerce sites d. Brand-building sites
e. Services-orientated relationship building websites
6. Social network sites such as Facebook and Twitter have become increasingly popular for sell-side e-commerce and
would normally be considered to be in which category?
a. Transactional e-commerce sites c. Portal, publisher or media sites
b. Brand-building sites d. Services-orientated relationship-building websites
7. Digital marketing (also known as e-marketing or Internet marketing) is closely related to e-commerce. It is a term
increasingly used by specialist e-marketing agencies to:
a. Promote their websites c. Measure website hits
b. Recruit specialist staff d. None of the above
8. Various digital media channels can be used to reach audiences when planning, for example, online marketing
campaigns. Search engine marketing places messages on a search engine to encourage click through to a website when
the user types a specific keyword phrase. A key marketing technique involves paid placements or sponsored links using
PPC. What does PPC stand for?
a. Pay per consumer c. Pay per click
b. Personal protocol choice d. Public promotion clicks
9. Social media marketing has emerged as an important category of digital marketing. Which of the following best
describes this?
a. Creating and managing long-term arrangements to promote online services on third party websites
b. Using online ads such as banners to achieve brand awareness and encourage click-through
c. Monitoring and facilitating customer-customer interaction and participation throughout the web to
encourage engagement with a company and its brands
d. None of the above
10. Which term is taken to explain a collection of web services that facilitate interaction of web users with sites to create
user-generated content and encourage behaviors such as community or social network participation?
a. Multi-channel marketing strategy c. Multi-channel marketing
b. Web 2.0 concept d. Customer-centric marketing
24

11. Supply chain management refers to the coordination of all supply activities of an organization from its suppliers and
delivery of products to its customers. E-commerce transactions between a company and its stakeholders be their
consumers or businesses are often referred to as:
a. B2C, C2C c. B2B, C2B
b. B2C, B2B d. C2C, C2B

12. E-government is becoming more accepted as an important feature within government in many countries. What does it
provide?
a. All of the below
b. The facility to securely communicate between governments and government departments
c. Facilities for dissemination of information and online services at local and national levels
d. The ability to gather taxes more efficiently
13. Evans and Wurster produced an influential paper in 1997 and argued that there are characteristics of information,
which can contribute to a major impact on a marketplace. One of these is Reach and is a key characteristic achieved by
e-business, which refers to:
a. The depth of information about content or products available
b. How different numbers of customers can interact with categories of information or products
c. The potential effectiveness of links with partners
d. None of the above
14. Another of Evans and Wurster's suggestions included what they referred to as Richness and is another key characteristic
achieved by e-business, which refers to:
a. The economic benefits from shifting from traditional marketing tools such as brochures, catalogues,
advertising boards
b. The different number of customers can interact with: categories of information or products
c. The depth of information about content or products available
d. None of the above
15. While there are obvious e-business advantages and opportunities, there are also risks and barriers. These include:
a. Contravention of customer privacy
b. Spikes causing websites to fail at peak times
c. Internet hackers penetrating company security
d. All of the above
16. The best products to sell in B2C ecommerce are:
a. Small products
b. Digital products
c. Specialty products
d. Fresh products
17. Which products are people most likely to be more uncomfortable buying on the Internet?
a. Books
b. Furniture
c. Movies
d. All of the above
18. Digital products are best suited for B2C ecommerce because they:
a. Are commodity like products
b. Can be masscustomized and personalized
c. Can be delivered at the time of purchase
d. All of the above
19. Which is a function of Ecommerce
a. marketing
b. advertising
c. warehousing
d. all of the above
20. What is the percentage of customers who visit a Web site and actually buy something called?
a. Affiliate programs
b. Clickthrough
c. Spam
d. Conversion rate
25

PART 2. (ANSWERS)

BATCH PROCESSING (ANSWERS)

1. A. Batch Processing is the execution of a series of jobs in a program on a computer without manual intervention (non-
interactive). Strictly speaking, it is a processing mode: the execution of a series of programs each on a set or "batch" of
inputs, rather than a single input (which would instead be a custom job).

2. B. - Disadvantages of batch processing systems

Computer operators must be trained for using batch systems.


It is difficult to debug batch systems.
Batch systems are sometime costly.
If some job takes too much time i.e. if error occurs in job then other jobs will wait for unknown time.
Delay in processing and hiring large staff

3. D. All of these would be detected by batch controls:

A fictitious employee as added to the processing of the weekly time cards by the computer operator.
An employee who worked only 5 hours in the week was paid for 50 hours.
The time card for one employee was not processed because it was lost in transit between the payroll department
and the data entry function

4. B. - In batch processing, if costs are not isolated, high-volume customers and products tend to subsidize lower-volume
ones.

5. A. - First step in running and preparing batch jobs is to: Write on printed sheets

6. A. - Batch Total, the sum of a particular field in a collection of items used as a control total to ensure that all data has
been entered into the computer. For example, using account number as a batch total, all account numbers would be
summed manually before entry into the computer.

7. B. - Job Queue are jobs waiting in a line to be processed as per instruction

8. A. - Report showing control and total is most likely to be the output of batch processing method since one or more units
entered a work activity, is changed by the work activity and exits the work activity

9. A. - Batch processing is used for very large files or where a fast response time is not critical. The files to be transmitted are
gathered over a period and then send together as a batch.

10. C. - Batch Processing is processing transaction in a group or batch and no user interaction is required.

11. D. - Collection of like transactions which are sorted and processed sequentially against a master file, keypunching of
transactions, followed by machine processing, production of numerous printouts is all characteristic of batch processing but
never posting of a transaction, as it occurs, to several files, without immediate printouts.

12. B. - Each piece of work to be processed and treated as single batch is Job

13. D. - Batch Processing is a system that takes a set of commands or jobs, executes them and returns the result

14. C. - There are time delays in processing transactions in a batch system, and misstatements may not be detected right
away.

15. D. - Verification work is the second step in running and preparing batch job

16. C. - Paychecks are prepared, signed and distributed to the employees

17. D. - Allows entry and monitor control totals is a benefit of batch control. Letters A, B and C are uses of batch control.

18. D. - All given answers are benefits of batch processing.

19. D. - All given answers are examples of batch processing

20. A. - Last step in running and preparing batch job is returning of printout
26

ON-LINE/REAL-TIME (ANSWERS)

1. B
This definition is sufficiently broad as to cover all forms of online systems, including the traditional smart
server/dumb terminal variety, as well as the client/server variety because the definition covers all possibilities.
2. D.
Online/real time, Online batch, Online Memo Update, Online Inquiry are types of online processing system
being used for online processing.
3. A.
Only I statement is incorrect, since Online batch systems are those with online data capture and is batch
updates.
4. C.
E-commerce businesses are relying heavily on online sales systems that are focused on the sales and
marketing side of the business, and yet such sales and marketing applications are more important to the
business than the accounting applications, which the auditors ignore to their own peril. In any case, often,
auditors need to audit online systems after they are implemented, playing no part in the implementation
5. D.
On-line input with memo update processing, also known as shadow update, combines on-line/real time
processing with on-line batch processing
6. D.
Consistent online processing is not an audit problem and may be considered as an advantage for audit
procedure.
7. A.
In an on-line computer system, individual transactions are entered at a terminal device, validated and used
to update related computer files immediately
8. A.
I, II, III, IV - Entering transactions, requesting reports, making inquiries, updating master files are all functions
that allow users to initiate various functions directly.
9. A.
The term Real Time refers to the technique of updating files with transaction data immediately after the
occurrence of the event. Real time systems are basically online systems with one specialty in enquiry
processing. The response of the system to the enquiry itself is used to control the activity.
10. A.
On line processing of individual transaction as they occur from their point of origin as opposed to
accumulating them into batches. This is possible by direct access devices such as magnetic disk and number
of terminals connected to and controlled by central processors.
11. A.
On-line / Real-time processing is a system that can handle large volumes of process each day and create
operational efficiencies
12. A.
One of the advantages of an On-line / Real-time system is that the system checks for input errors, and errors
can be corrected immediately
13. C.
Batch Processing organization that has applications having large volumes of similar transactions that can be
processed at regular intervals is best suited to use which method of processing
14. C.
On-line / Real-time processing the processing system where transactions are processed immediately and
where output is available immediately.
15. D.
The data are entered, the system checks for input errors - therefore, errors can be corrected immediately.
Information is provided to users on a timely basis. All files are constantly up-to-date. All of the above are
advantages
16. C. The disadvantages to real-time processing single database that is shared is more susceptible to
unauthorized access
17. C.
On-line / Real-Time Systems Processing choices are menu-driven Batch Systems Processing is interactive
18. :B
Real-time processing is beneficial for business managers because it provides for system checks for input
errors. Therefore, errors can be corrected immediately, thus increasing the quality of the information for
which the manager is held accountable. In addition, real-time systems enhance the efficiency of information
availability
19. B. False.
On-line/Real-time processing is NOT best suited to applications in which there is a small volume of records,
and only a few records are needed to process any individual transaction
20. B
On-line/Real-time Processing enhances the efficiency of information availability.
27

REVENUE ACCOUNTING SYSTEM (ANSWERS)

1. C.-
Invoice sales-the sale of goods from a business to a customer is documented on a sales invoice, a sale can be
simply defined as the request of payment by the customer for goods sold or services provided the seller.
2. D. -
Packing Slip-Is intended to identify the content of a package to the person receiving is who is, then able to check
of the items they were expecting to receive against this list.
3. B. -
Purchase Order-Is a commercial docent and first official offer issued by a buyer to a seller, indicating types,
quantities and agreed prices for products or services. It is used to control the purchasing of products and services
from external suppliers.
4. A.
A document issued by a carrier, or it's agent to the shipper as a contract of carriage of goods. It is also a receipt for
cargo accepted for transaction, and must be presented for taking delivery at the destination.
5. B. -
Product Planning-Key component in SAP sales and distribution module are:
5.1. Customer and vendors master data
5.2. Sales support
5.3. Shipping of material
5.4. Sales activities
5.5. Billing related
5.6. Transportation of products
5.7. Credit management
5.8. Contract handling
5.9. Foreign trade
5.10. Information system
6. B.
Invoice-An invoice is a document issued by a seller to the buyer. It provides details about a sale or product, or an
invoice is a document sent to a buyer that specifies the amount and cost of goods of products or services that
have been provided by a seller.
7. D. -
Trading arrangement in which a seller sends good to a buyer or reseller who pays the seller only as and when the
goods are sold. The seller remains the owner (title holder) of the goods until they are paid for in full and, after a
certain period, takes back the unsold goods.
8. C. -
Shipping Point-Terms indicating that the buyer must pay to get the goods delivered with terms of FOB shipping point
the title to the goods usually passes to the buyer at the shipping point or free on-board shipping is a set of delivery
terms that transfer the title of goods to the buyer when the shipment is placed on truck for delivery.
9. B. -
9.1. letter credit-It is for safety and security of the exporter as regards payment for the goods to be exported
9.2. time draft-Are a type of short-term credit used for financing transaction of goods in international trade. They
allow the buyer a delivery in payment after accepting a shipment after exported goods
9.3. Bill of lading-Necessary and useful in export-import trade transaction, it is a document issued by the shipping
company after the shipment of goods.
10. D. -
Bill of lading-Is one of the most important documents in the shipping process and legal document between the
shipper of goods and the carriers detailing the types, quantity and destination of the goods being carrier
11. D
In a documentary sales the seller will be paid on tender of the agreed documentation until that time he has
possession and title of the goods and if the banks has taken security over the seller asset, then this will also protects
the interest of the seller banks, the buyer parts will his money only on receipts of the document, which provide him
with possession and title to the goods, a claim against the carrier for breach of contract and a claim against
insurance company is respect of insured damage to the goods.
12. D
Typically, a bill of lading has the standard terms of business of the carrier set out either on the bill itself or
incorporated by reference within it. However, by definition, since a shipping bill will only be issued after the goods
have been loaded, the contract of carriage must pre-date the bill.
13. B
Whether a bill of lading is transferable or not depends on how the consigned is described. Title to bill with no
edification of the identity of the consigned or consigned to bearer will pass on delivery, those consigned to a
named consignee or named person known as straight consigned bill are not transferrable of all
14. A
Typically, documentary form of FOB contracts the term bill of lading will be construed to mean a shipped bill,
that is to say bill which acknowledge that the goods have been loaded into ship. The alternative is a received for
shipment bill of lading, which is no more than a receipt that the carrier has physically possession of a goods as a
preliminary to lading
28

15. A
Shipping information is sent to billing, billing compiles and reconciles the relevant facts and issue an invoice to the
customer and updated the sales journal
16. A
There are several actions a company can take with respect to any cycle to reduce threats of error or irregularities
17. C
Information is needed for the strategies decision
18. A
invoice may be sent or received in paper form and updating accounts receivable are fiction report to the
controller
19. C
Can spend the movement of inventory and improve the accuracy of perpetual inventory records, there is under in
"ship the order one major decision that needs to be made when filling and shipping customer orders concern the
choice of delivery method. Another important decision concerns the location of distribution centers; RFID systems
can provide real-time information on shipping status and thus provide additional value to customers.
20. A
Because cash or check is defenseless, so control should be placed to discourage theft. The final step in the revenue
cycle is cash collections. The cashier handles customer remittances and deposits them in the bank. A remittance list
provides the names and amounts of all customer remittances, and sends it to accounts receivable. Imaging
technology can be used to improve the efficiency of processing customer payments
29

DISBURSEMENT ACCOUNTING SYSTEM (ANSWERS)

1. A
Warehouse receiving function is in charge in matching the suppliers invoice, the purchase order and the
receiving report, while the purchasing function, general accounting function and treasury function has different
task assigned.

2. A
Cash disbursements and vendor invoice verification should separate in the accounts payable to avoid potential
errors and irregularities. Letter a, b and c can be assigned to same function because they are all related in one
another.

3. A
Receiving department personnel sign receiving documents without inspecting or counting goods.

4. C
Purchase requisition

Contain the authorization to proceed with the purchase, Purchase Orders is used to control the purchasing of
products and services from external suppliers. Blanket purchase order which customer places with its supplier to
allow multiple delivery dates over a period of time, and Receiving report is a record of merchandise that a retailer
has actually received from the supplier.

5. B
Compare dates of selected purchase orders with those of purchase requisitions. Letters a b and c is not appropriate
test to determine whether the Purchase orders are process.

6. C
Vendors shipping document and the purchase order. To matched the goods received and should forward to
accounts payable department for the preparation of voucher and treasury department for issuance of check

7. D
Approved purchase order

This is to authorized for accepting incoming goods from suppliers.

8. D
All of the above.
Since disbursement cycle includes verifying the accuracy of vendor invoices, selecting the appropriate vendors
from whom to order, monitoring the cash flow needed to pay obligation.

9. C
Goes to the accounts payable department
For proper documentation and Filing of attachment subject for processing of vouchers.

10. C
The use of a bar-coding or radio frequency identification tag (RFID) system
This would be the most effective system among the others.
11. A
The voucher package should be canceled by cash disbursement application

12. C
In order to provide accountability for purchasing, copies of purchase requisitions should be sent to Accounts
Payable

13. D
Disbursement voucher is not always required in the voucher package.

14. D Within the expenditure cycle, internal information flows, production cycle to the expenditure cycle, the revenue
cycle to the expenditure cycle, general ledger from the expenditure cycle.

15. D.
There are no disadvantages to using disbursement vouchers

16. C.
The cashier usually handles the checks that may even be able to sign checks up to certain dollar limit

17. C
The primary objective of the Disbursement cycle is to minimize the total cost of acquiring inventories and supplies
30

18. B
False. A key decision with respect to the expenditure cycle INCLUDES the optimal level of inventory.

19. B
Just-in-time inventory approach best allows for products with short life cycles and unpredictable patterns of
demand.
20. B.
A voucher package should include purchase order, vendor invoice, and receiving report
31

FINANCIAL REPORTING SYSTEM (ANSWERS)

1. E. All of the above.


Letter A, B, C & D. Is all applicable for the country who can used the IFRS.
2. A. The International Accounting Standards Committee
The International Accounting Standards Committee (IASC) is an independent private-sector organization
that in its own words is a "body working to achieve uniformity in the accounting principles that are used by
businesses and other organizations for financial reporting around the world." As stated in its constitution the
IASC's goals are to "formulate and publish in the public interest accounting standards to be observed in the
presentation of financial statements and to promote their worldwide acceptance," and to "work for the
improvement and harmonization of regulations, accounting standards and procedures relating to the
presentation of financial statements
3. B. Different interpretations of IFRS
different areas of accounting, such as recognition, measurement,
4. A. International Accounting Standards Commission
The International Accounting Standards Committee (IASC) is an independent private-sector organization
that in its own words is a "body working to achieve uniformity in the accounting principles that are used by
businesses and other organizations for financial reporting around the world." As stated in its constitution the
IASC's goals are to "formulate and publish in the public interest accounting standards to be observed in the
presentation of financial statements and to promote their worldwide acceptance," and to "work for the
improvement and harmonization of regulations, accounting standards and procedures relating to the
presentation of financial statements
5. D. None of the above is correct
Letters A, B, C & D is not applicable
6. B. The relative importance of the characteristics in different cases is a matter of professional judgement
This qualitative characteristic requires pursuance of consistency in choosing accounting policies. ... If there
is undue delay in reporting the information, it may lose its relevance. ... characteristics in different cases is a
matter of professional judgement.
7. A. Across accounting periods
Stages of the accounting cycle are carried out across an accounting period, usually a fiscal quarter or
year. The period ends with publication of the period's financial statements.
8. B. Matching
equal in number or amount; equivalent.

9. D. The ability of the entity to continue in operation for the foreseeable future
that the business entity will continue its operations in the future and will not liquidate or ... to believe that it
will or will have to cease its operations in foreseeable future. ... does not impair the ability of the company
to operate as going concern.
10. C. Users should be willing to study the information with reasonable diligence
allows a user to examine a company's accounting information without concern .... of business... and
are willing to study the info with reasonable diligence"
11. B. Unbiased
showing no prejudice for or against something; impartial.
12. C. Accrual basis of accounting
Accrual basis of accounting, expenses are matched with the related revenues and/or are reported when
the expense occurs, not when the cash is paid. The result of accrual accounting is an income statement
that better measures the profitability of a company during a specific time period.
13. D. Freedom from material error
Information is material if it is significant enough to influence the decision of users. Materiality is affected by
the ... all-necessary information), 2. Neutrality (fairness and freedom from bias), and 3. Free from error (no
inaccuracies and omissions).
14. D. Relevant
is the concept that the information generated by an accounting system should impact the decision-
making of someone perusing the information. The concept can involve the content of the information
and/or its timeliness, both of which can impact decision making
15. B. The enterprise can be viewed as a going concern
The going concern principle is the assumption that an entity will remain in business for the foreseeable
future. ... its breakup value, since a going concern can potentially continue to earn profits. ... It is possible
for a company to mitigate an auditor's view of its going concern
16. D. A cash flow statement
is a financial statement that shows how changes in balance sheet accounts and income affect
cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities.
Accounting policies
17. D. Understandability
the concept that financial information should be presented so that a reader can easily comprehend it. This
concept assumes a reasonable knowledge of business by the reader, but does not require advanced business
knowledge to gain a high level of comprehension.
18. C. Balance between benefit and cost
The benefits derived from relevant and reliable information should exceed the cost of providing it.
19. E. Measurement Difference
The computation of economic or financial activities in terms of money, hours or other units. An accounting
measurement is a unit of some measurable element that is used to compare and evaluate
accounting data. Accounting is often measured in terms of money;
20. D Norwalk Agreement
the US standard setter, and the International Accounting Standards Board (IASB). The agreement is so called as it was
reached in Norwalk.
32

BUS TOPOLOGY (ANSWERS)

1. D. Bus Topology: A network setup in which each computer and network device are connected to a single cable or
backbone

2. A. - Bus Topology requires multipoint connection

3. A. - Bus Topology is mostly used in LAN

4. B. Bus Topology is alternatively referred to as Line Topology

5. A. - Bus Topology is the simplest of network topologies

6. D. - None of the above, because traffic congestion is a major issue in Bus Topology

7. C. - Bus Topology consists of a main run of cable with a terminator at each end, All nodes are connected to the linear
cable.

8. A. - Bus Topology is not expensive and easy to install

9. D. - All of the given answers are advantages of a Bus Topology

It requires less cable


It is best suited for all networks
It is cheap and, easy to handle and implement

10. A. - A disadvantage of Bus Topology: The cable length is limited that limits the number of stations that can be
connected

11. B. - Loop Topology is not one of the most common network topologies.

12. C. It is not expensive compared to other topologies

13. A. The purpose of the terminator is to absorb signals so that they do not reflect back down the line.

14. C. Bus Topology requires the least cabling

15. A. - All nodes like workstations, printers, laptops, servers, etc. are connected to the Linear Cable

16. D. - Disadvantages of bus topology

Difficult to identify the problems if the whole network goes down.


It can be hard to troubleshoot individual device issues.
Not great for large networks.
Terminators are required for both ends of the main cable.
Entire network shuts down if there is a break in the main cable.

17. A. - A host on a bus network is called Station/Workstation.

18. B. In Bus Topology, each node is connected to a single cable

19. C. - Bus topology can only transmit data in one direction, and if any network segment is severed, all network transmission
ceases.

20. C. - In Bus Topology, only one device is allowed to transmit at a given point of time
33

STAR TOPOLOGY (ANSWERS)

1. A. - Star Topology is a topology for a Local Area Network (LAN) in which all nodes are individually connected to a central
connection point, like a hub or a switch. A star takes more cable than e.g. a bus, but the benefit is that if a cable fails, only
one node will be brought down.

2. A. - An advantage to using star topology networks over using bus or ring topology networks is that they are easily
Expandable and Scalable

3. B. - Only the failed node would be unable to transmit or receive data would happen if a node in a star-wired Ethernet
network failed

4. D. - The function of a hub in a star-wired network is to repeat signals to all nodes on the segment.

5. C. - In a network using the star topology, five workstations and a hub would be connected via five (5) physical cables

6. D. - A home network that connects two computers & A LAN that connects a dozen computers in an insurance company
would make the most sense to implement a star topology

7. B. In a star network if one of its workgroup hubs failed, all nodes connected to that hub would be unable to
communicate with nodes on other segments as well as nodes on their own segment

8. D. - Terminators are not used on star-wired networks.

9. D. - The most common protocol for star network is Ethernet

10. C. - In star topology if central hub goes down, it effects the whole system

11. A. - Star topology is used in Local Area Network (LAN)

12. C. - In Star topology, central controller is called Hub.

13. A. - A Star Topology that benefit is that if a cable fails, only one node will be brought down

14. C. - A Star Topology is an implementation of a spokehub distribution paradigm in computer networks.

15. C. Hub manages and controls all functions of the network. It also acts as a repeater for the data flow.

16. A. - Star Topology reduces the impact of a line failure by connecting all of the systems to a central node.

17. B. One of the advantage of Star Topology is that, if one node or its connection breaks it doesnt affect the other
computers and their connections

18. C- C. One of the disadvantages of Star Topology is that the central hub is a single point of failure for the network

19. B. - In Star Topology, new nodes can be added easily without affecting rest of the network. Similarly, components can
also be removed easily

20. D. All of the given answers are disadvantages of Star Topology.


34

RING TOPOLOGY (ANSWERS)

1. A
Ring topology is a network topology in which each node connects to exactly two other nodes, forming a single
continuous pathway for signals through each node.

2. C.
Data travels from node to node, with each node along the way handling every packet.

3. C
a ring topology is a computer network configuration where the devices are connected to each other in a circular
shape.

4. A
Yes, Ring topologies are used in both local area network (LAN) and wide area network (WAN) setups

5. C
III. The entire network will be impacted if one workstation shuts down, is a disadvantage.

6. D.
answer not given because all the given are advantages of a ring topology.

7. B.
Only statement 1 is disadvantage if ring topology. Statement 2 is advantage of ring topology.

8. A
True. A network server is not needed to control network connectivity between each workstation is advantage.

9. D
All the given sentences are disadvantage of ring topology.

10. B
False, because a unidirectional ring topology provides only one pathway between any two nodes, unidirectional
ring networks may be disrupted by the failure of a single link.

11. A
Ring topology is a type of network topology where each node is exactly connected to two other nodes, forward
and backward, thus forming a single continuous path for signal transmission.

12. B.
There are two types of the Ring Topology based on the data flow: Unidirectional and Bidirectional

13. A.
The two types of the Ring Topology based on the data flow: Unidirectional and Bidirectional

14. B
A Unidirectional ring topology handles data traffic in either clockwise or anticlockwise direction. This data
network, thus, can also be called as a half-duplex network. A Unidirectional ring topology is thus easy to maintain
compared to the bidirectional ring topology.

15. A.
a bidirectional ring topology handles data traffic in both the direction and can be a full duplex network.

16. B
Token passing in a Ring Topology is often a term which is talked about. So, a token contains a piece of
information which is sent along with data by the source computer. In easier terms, a token is like a permission packet
which allows a particular node the permission to release information over the network

17. A
Token passing makes ring topology perform better than bus topology under heavy traffic is an advantage of ring
topology
18. C
In Unidirectional Ring, a data packet must pass through all the nodes is a disadvantage of ring topology

19. B
The data flow is from A towards B and henceforth. In this condition, if E wants to send a packet to D, the packet
must traverse then entire network to reach D.

20. B
False, because the sentence is a disadvantage of ring topology.
35

TREE TOPOLOGY (ANSWERS)

1. C
Tree topology is a topology that combines characteristics of linear bus and star topologies.

2. A.
True. It consists of groups of star-configured workstations connected to a linear bus backbone cable

3. A.
Point-to-point wiring for individual segments.

4. D.
Another advantage is, It is supported by several hardware and software vendors.

5. A
If the backbone line breaks, the entire segment goes down

6. D.
Another disadvantage is that overall length of each segment is limited by the type of cabling used

7. D.
One of the know disadvantage of tree topology is, it is more difficult to configure and wire than other topologies.

8. C
Tree topology is a special type of structure in which many connected elements are arranged like the branches of
a tree topologies are frequently used to organize the computers in a corporate network, or the information in
a database.

9. C.
In computer networks, a tree topology is also known as a star bus topology. It incorporates elements of both a bus
topology and a star topology.

10. B.
A binary tree is a tree topology in which every node has a maximum of two children. The child nodes are labeled
as "left child" or "right child." This type of data structure is often used for sorting and searching large amounts of data

11. B
Tree topology is a tree like structure allows you to have many servers on the network and you can branch out the
network in many ways.

12. A
The Tree Topology has two kinds of topology integral in it, the star and the linear way of connecting to nodes.

13. A
True there will be at least three levels of hierarchy in the Tree Network Topology and they all work based on the
root node

14. A
This is particularly helpful for colleges, universities and schools so that each of the branches can identify the
relevant systems in their own network and yet connect to the big network in some way.

15. B
True Tree Network may not suit small networks and it may be a waste of cable to use it for small networks

16. A
False, because All the computers HAVE access to the larger and their immediate networks.

17. D
Tree topology is best topology for branched out networks

18. D
The Tree Topology network is entirely dependent on the trunk which is the main backbone of the network. If that
has to fail then the entire network would fail.

19. A
False, because Since the Tree Topology network is big IT IS difficult to configure and can get complicated after a
certain point.
20. B
True, each level in the hierarchy follows a certain pattern in connecting the nodes. Like the top most level might
have only one node or two nodes and the following level in the hierarchy might have few more nodes which work on
the point to point connectivity and the third level also has asymmetrical node to node pattern and each of these
levels are connected to the root level in the hierarchy.
36

MESH TOPOLOGY (ANSWERS)

1. B.
A full-mesh topology relies on every sites WAN router having a connection to every other site on the wide area
network (WAN). Full mesh topology provides a high degree of dependability and fault tolerance, which can come
at a high price tag.
2. B.
In a mesh topology, each device is connected directly to every other device on the network. Such a structure
requires that each device have at least two network connections. The topology is not commonly implemented.
3. B.
It is a point-to-point connection to other nodes or devices. All the network nodes are connected to each other.
Mesh has physical channels to link devices.
4. C.
A network segment is a portion of a computer network that is separated from the rest of the network by a device
such as a repeater, hub, switch or router.
5. A.
In mesh topology, all device is connected directly to every device on the network, if one link fails. There is always
another available. It is the most fault-tolerant network topology.
6. C.
The most widely implemented mesh topology ate the internet and telephone network.
7. C.
The most common logically topologies ate the ring, bus and star.
8. C.
Mesh topology also called point-to-point topology not multipoint topology.
9. A.
A fully connected mesh topology has all the nodes connected to every node. If you know the graph theory, then it
is like a fully connected graph where all the nodes are connected to every other node. In the other hand, mesh
topology is a network topology in which all the network nodes are individually connected to most of the other
nodes.
10. D.
Every node has a directly point-to-point connection to every other node. Because all connections are directing the
network can handle very high-volume traffic.
11. C.
Wireless mesh network are a rapidly emerging technology, forming the backbone of an increasingly
interconnected world.
12. B.
Data can be transmitted from different devices simultaneously. Then if one of the components fails there is always
an alternative present so data transfer doesnt get affected.
13. D.
Mesh topology is a network set-up where each computer and network device is interconnected with one another,
allowing for most transmission to be distributed evenly if one of the connections go down. This topology is not
commonly used for most computer network as it is difficult and expensive to have redundant connection to every
compute. However, this topology is commonly used for wireless network.
14. C.
Dedicated point-to-point link is established between nodes it requires links to connect nodes. The advantage of
point-to-point link to mesh are:
Any nodes failure doesn't affect the network
Traffic load is very less because of fixated link
15. A.
Each and every nodes or device are connected to each other.
16. B.
Partial mesh, some nodes are organized in a full mesh scheme but other are only connected to one or two in the
network. Partial mesh topology is commonly found in peripheral networks connected to a full meshed backbone.
17. C.
Wireless mesh networks can be considered a type of wireless ad hoc network (Bi-directional links) Thus, wireless
mesh networks are closely related to mobile ad hoc networks(MANETs). Although MANETs are not restricted to a
specific mesh network topology, wireless ad hoc network or MANETs can take any form of network topology.
18. B.
The network is robust and it's very unlikely to lose the data. But it leads to unwanted load over the network.
19. A.
A WAN with single interconnection point for each location is arranged in a peer-to-peer topology. A WAN peer-to-
peer communication a LAN in that each site depends on every other site in the network to transmit and receive its
traffic.
20. B.
In mesh topology, every node a direct point-to-point connection to every other node. Because all connections are
directing the network can handle very high-volume traffic, it's also robust because if one connection fails the other
remain intact. Security is also high since data travels along a dedicated connected.
37

E-COMMERCE/E-BUSINESS (ANSWERS)

1. E. All of the above


E-commerce should be considered as all financially mediated transactions which includes the delivery of
information, products, services, or payment

2. B. The use of electronic communications for all business processes


E-business can be seen to be all electronically mediated information exchanges, both within an
organization and with external stakeholders supporting the range of business processes.

3. A. E-commerce is a subset of e-business


The extent of the overlap depends on the viewpoint taken as they are both significant but it can be
argued that e-commerce does not apply to many transactions within a business.
4. A. An organization using electronic media to purchase from to its suppliers.
Sell-side e-commerce refers to transactions involved with selling products to an organizations customers.
5. A. All of the below
Not every product is suitable for sale online so the way in which a website is used to market products will
vary. Not all of the websites will be clear-cut categories and companies can combine these depending on
which market they serve.
6. C. Portal, publisher or media sites
Because social networks are so often advertising supported, they could be considered to be under portal,
publisher or media sites categorization. The influence of social networks on customer communications
suggest that they should form a distinct category of:

7. B. Recruit specialist staff


Apart from attracting new staff, digital marketing is used to refer to sell-side e-commerce.
8. C. Pay per click
Pay per click refers to when a marketer pays for each time a hypertext link in the ad is clicked.
9. C. Monitoring and facilitating customer-customer interaction and participation throughout the web to encourage
engagement with a company and its brands
It involves encouraging customer communication on a customer's own site or a social presence on social
media or specialist publisher sites, blogs, forums and so on.
10. B. Web 2.0 concept
Web 2.0 concept is a label for a range of interactive tools and social communication techniques such as
blogs, podcasts, mashups, and social networks.

11. B. B2C, B2B


B2C - business-to-consumer B2B - business-to-business
12. C. Facilities for dissemination of information and online services at local and national levels
It refers to the application of e-commerce technologies to government and public services for citizens and
businesses.
13. B. How different numbers of customers can interact with categories of information or products
Reach conventionally refers to the potential number of customers a business can interact with
although it can also refer to the different categories and products a consumer interface can cover.

14 C. The depth of information about content or products available


The internet allows more detailed information about products, prices, and availability to be readily
accessible.

15. D. All of the above


And many other risks and barriers exist than those noted here to preclude the planned hoped for returns.
16. B. Digital Products
Digital Products are shipped electronically to the consumer through email or download from the Internet.

17. B Furniture
large movable equipment, such as tables and chairs, used to make a house, office, or other space suitable for
living or working.

18. D. All of the above


Digital products are best suited fro B2C e-commerce because they: can be delivered at the time of purchase.

19. D. All of the above


E-commerce is a transaction of buying or selling online. Electronic commerce draws on E-commerce has the
capability to integrate all inter-company and intra-company functions
20. D. Conversion rate

The conversion rate is the percentage of users who take a desired action.