JOSE RIZAL UNIVERSITY. PRELIMINARY EXAMINATION ACCOUNTING 62 MULTIPLE CHOICE 7 1. The document that captures the total amount of time that individual workers spend on each production job is called a a. time card b.) job ticket ¢. personnel action form d. labor distribution form 2. An (&) general ledger compares the labor distribution summary from cost accounting tothe" © disbursement voucher from accounts payable ‘b. personnel compares the number of employees authorized to receive a paycheck t6 the number of paychecks prepared . » production compares the number of hours reported on job tickets to the number of hours reported on time cards d. payroll compares the labor distribution summary to the hours reported on time cards 3. Which internal control isfagdan important part of the payroll system? a. Supervisors verify the accuracy of employee time cards b. Paychecks are distributed by an independent paymaster (> Accounts payable verifies the accuracy of the payroll register before transferring payroll funds to the general checking accounting, 4. General ledger reconciles the labor distribution summary ané the payroll disbursement voucher. ‘Which transaction is not processed in the Fixed Asset System? 8, purchase of building b. improvement of equipment purchase of raw materials sale of company van 5. Depreciation a. is calculated by the department that uses the fixed asset allocates the cost of the asset over its useful life “is recorded weekly results in book value approximating fair market value 6, Peprecation records inte lo the fling information about Hed assets exp .. the economic benefit of purchasing the asset & the cost of the asset c. the depreciation method being used d. the location of the asset 7. Which control is Gatd Bart ofthe Fixed Asset System? a. formal analysis of the purchase request b. review of the assumptions used in the capital budgeting snodel (E>) development of an economic order quantity modet Nie eitimates of aiticipated east savings 8. Objectives of th ;portant reconciliation in the payroll system is enea, authorizing th quQhon of b, recording depreviation expense computing gain and/or loss on disposal of fixed assets maintaining 2 record of the fair market value ofall fixed assets @ 9. Which of the following is not Mcharacteristic of the Fixed Asset System? 4) Acquisitions are routine transactions requiring general authorization. Retirements are reported on an authorized disposal report form. ©. Acquisition cost is allocated over the expected life of the asset 4. Transfer of fixed assets among departments is recorded in the fixed asset subsidiary ledger. 10. In the payroll subsystem, which function should distribute paychecks? a. personnel b, timekeeping ©) paymaster payroll 11, Where does the responsibility lie for reconciling the Jabor distribution summary and the payroll disbursement voucher? cash disbursements cost accounting & personnel @) general ledger 12. Which of the following statements is fod true? a Routine payroll processing begins with the submission of time cards. / ®) Payroll clerks must verify the hours reported on the time cards. : ©. Payroll reconciles personne! action forms with time cards and prepares paychecks. 4. Cash disbursements signs paychecks and forwards them to the paymaster f 13. Which item does not describe a world-class company? a. the goal of a world-class company is to delight its customers o customers in a world-class company are external departments only %. world-class companies work in cross-functional teams 4. a world-class company has a flat organizational structure 14, Which subsystem is not a part of the production system? directing the movement of work through the process b. determining raw material requirements ce. authorizing work to be performed @ monitoring the flow of cost information related to production 15: The purpoSe of the cost accounting system is to ‘@) produce information for inventory valuation authorize release of raw materials ©. direct the movement of work-in-process 4. determine material requirements 16, Which process creates a homogeneous product through a continuous series of standard procedures? a, batch process b. make-to-order process continuous process None of the sbove #7. An example of a continuous process is the production ofa, wedding invitations Milk products ce. jetaircratt * d. allof the above U Oo 18. All of the following are characteristics of batch processing exce a, Each item in the batch is similar ® batches are produced in accordance with detailed customer specifications batches are produced to replenish depleted inventory levels 4. setting up and retooling is required for different batches 19. When determining whieh items to produce, a firm must know a. last year’s production level b. raw material inventory levels the standard cost of the item the sales forecast 20. The production schedule is a, the expected demand for the firm’s finished goods for a given year CBD the formal plan and authority to begin production ©. a description of the type and quantity of raw materials and subassemblies used to produce a single unit of finished product 4d. the sequence of operations during manufacturing 21. A move ticket is the formal plan and authority to begin production specifies the materials and production required for each batch 1! (g) records the work done in each work center” authorizes the storekeeper to release materials to work centers 22, The internal control significance of the excess materials requisition is that it a. indicates the amount of material released to work centers (® identifies materials used in production that exceed the standard amount allowed ©. indicates the standard quantities required for production 4, documents the return to raw materials inventory of unused production materials 23,” Inventory control performs all ofthe following tasks except it 4, provides production planning and control with the inventory status report of finished goods updates the raw material inventory records (©) prepares a materials requisition for each production batch NG. records the completed production as an increase to finished goods inventory 24, The storekeeper releases raw materials based on the a, production schedule © materials requisition ~ work order 4. Dill of materials 25, ‘The coding scheme most appropriate for a chart of accounts is a. sequential code block code: : group code : 4. mnemonic code 26. A common use for sequential coding is creating the chart of accounts22x identifying inventory items (© identifying documents identifying fixed assets 27. ‘The most important advantage of sequential coding is that ©) missing or unrecorded documents can be identified the code itself lacks informational content.” ©. items cannot be inserted . deletions affect the sequence»? 28. When a firm wants its coding system to convey meaning without refererice to any other document, it would choose a, an alphabetic code (®.) a mnemonic code a group code d. ablock code 29, The most important advantage of an alphabetic code is that a. meaning is readily conveyed to users sorting is simplified the capacity to represent items is increased missing documents can be identified 30. Entries into the General Ledger System (GLS) can be made using information from a. the general journal b. a journal voucher which represents a summary of similar transactions £ ajournal voucher which represents a single, unusual transaction ® allofthe above 31. Which statement ifnotgStreet? The general ledger master file 4. is based on the firms chart of account b.. contains a record for eonirol accounts (© is an output of the Financial Reporting System (FRS) ‘supplies information for management decision making 32, What type of data is found in the general ledger master fle? a. a chronological record of all transactions (G,) the balance of each account in the chart of accounts ©. budget records for each account in the chart of accounts 4. subsidiary details supporting a control account 33. Which report is not an output of the Financial Reporting System (FRS)? variance analysis report statement of cash flows c.. tax return 4. comparative balance sheet 34, Which steps in the Financial Accounting Process are in the corréct sequence? a. record the transaction, post tothe ledger, prepare the adjusted trial balance, enter adjusting entries, prepare financial statements b, record the transaction, prepare the unadjusted trial balance, record adjusting journal entries, record closing entries, prepare financial statements © record the transaction, post to the leduer, record adjusting entries, prepare the unadjusted trial balance, prepare financial statements record the transaction, post to the ledger. prepare the adjusted trial balance, prepare financial statements, record closing entriesa. the post-losing trial bala . ledger _ one purpose of preparing the unadjusted trial balance is to ensure that debts equal credits financial statements are prepared based on the unadjusted trial balance the unadjusted triat balance reports control account balances but omits subsidiary ledger detail reports the ending balanee of each ac runt in the general 36, What account appears on the postelosing trial balance? a. income summary 7 b5) machinery % rent expense 4. interest income 37, Allof the following are basic data management tasks except a. data deletion b. data storage data attribution a. data retrieval 38, The task of searching the database to locate a stored record for processing is called a, data deletion b. data storage je. data (2B data retrieval 39, Which of the following is nota problem usually associated withthe flat-file approach to, data management? 7 Ax, data redundancy 2 (o>) restricting access to data to the primary user ©. data storage . curreney of information _« 40, Which characteristic is@ssoviat with hats Approach to data management? @ data sharing . — 16. multiple storage procedures c, data redundancy a. excessive storage costs 41, Which characteristic (noDassociated with the database aBprosch to data management? fa. the ability to process data without the help OF @ programmer \b. the ability to control aceess to the data /” ‘c. constant production of backups |” S, the inability to determine what data is available 42, “Fhe textbook refers to four interelated components ofthe database concept. Which ofthe following is not one of the components? a. the Database Management System b. the Database Administrator the physical database the conceptual database 43, Which of the following i860t@ responsibility ofthe Database Management System? ‘a, provide an interface between the users and the physical database b, provide security against a natural disaster (¢). ensure that the internal schema and external schema are consistenti. authorize access to portions of the database 44, -A description of the physical arrangement of records in the database is (a the internal view the conceptual view ©. the subschema d._ the external view 45. Which of the following may provide many distinct views of the database? a. the schema the internal view i © the user view d._ the conceptuat view 46. Users access the database G@) by direct query . B. by developing operating software ©. by constantly interacting with systems programmers 4. all of the above ; 47. ‘The Data Definition Language ) identifies, for the Database Management System, the names and relationships of all data elements, records, and files that comprise the database ®. Inserts database commands into application programs to enable standard programs 10 interact with and manipulate the database ©. permits users to process data in the database without th eed for conventional programs 4, describes every data element in the database 48, The Data Manipulstion Language a. defines the database to the Database Managenient System b. transfers data to the buffer area for manipulation enables application programs to interact with and manipulate the database describes every data element ia the database = — a assets (be) measure expected future receipts Ne scarce d. under the organization’s control 50. The REA approach leads to more efficient operations in all of the following ways except a. identifying non-value-added activities ', storage of both financial and nonfinancial data in the same database ¢. storage of detailed data to support a wider range of management decisions (@ standardizing data forms for simplicity 51. Which type of events are included in sn REA model? operating decision ©. management information 52. Recision/management events involve decisions relating to all ofthe following éxcept CQ) record keeping planning €. evaluation 4. control53. Information events involve all of the following (excen) acts of recording — acts of updating acts of evaluating ois of maintaining 54, The *R’ in REA stands for a. ratios relationships pene d. reserves 55. The *E’ in REA stands for ‘estimates economics d. entities 56. The ‘A’ in REA stands for a. assets 5 apportionment » Gas agents Gs Ox ‘Which of the following is an example of a cep) 5 a. preparing cost estimates for a new product “-Y/ os requesting a report € preparing sales invoices ¢ 4. preparing performance reports “ Offe 4 58. Allof the following are examples of operating evehis except > a, receiving raw materials from a supplier ae (6) preparing a cash disbursement voucher for payment to the supplier AZ paying for inventories received 4. shipping product to @ customer v 59. Which types‘of events are included in entity relationship diagrams? a. operating events, b. information events decision events & all of the above Which of the following represents the order of the steps inthe preparation betiaasae a, organize events in order, identify resources and agents, identify links, identify operating events, assign cardinalities ‘operating events, identify resources and agents, identify links, assign cardinalities, events in order )perating events, organize events in order, identify resources and agents, identify. libks; assign cardinalities ~ 4. identify resources and agents, identify operating events, organize events in order, identify links, assign cardinalities