Name Date Final 08.24.11 Due 08.28.

11 by Midnight Accounting Information Systems CHAPTER 13 41) What is the best control to mitigate the threat of paying prices that are too high for goods ordered? A) require the receiving department to verify the existence of a valid purchase order B) use only approved suppliers and solicit competitive bids C) only pay invoices that are supported by the original voucher package D) use bar-code technology to eliminate data entry errors 42) What is probably the most effective control for the prevention of kickbacks to purchasing agents? A) purchasing from approved vendors B) diligent supervision in the purchasing department C) a corporate policy to prohibit purchasing agents from accepting kickbacks D) reviews of vendor performance 43) One of the threats associated with the process and activity of receiving and storing goods is A) errors in counting. B) kickbacks. C) requests for unnecessary items. D) errors in vendor invoices. 44) What is the best way to prevent the acceptance of unordered goods? A) Order only from approved vendors. B) Match the packing slip to a purchase order before accepting delivery. C) Enforce an appropriate conflict of interest policy in place. D) Require specific authorization from the purchasing manager before accepting any goods. 45) Which of the following is not a common control for ensuring inventory is secure and inventory counts are accurate? A) control of physical access to the inventory storage areas B) transfers of inventory with proper documentation C) sending "blind" copies of purchase orders to inventory control for data entry D) making physical counts of inventory at least once per year

CHAPTER 14 21) For replacement of inventories and assets destroyed by fire or other disasters, an organization needs A) stand-by facilities. B) adequate insurance coverage. C) source data automation. D) All of the above are correct. 22) Overproduction or underproduction can be a threat to an organization. To which process or activity does this threat relate? A) product design B) planning and scheduling C) production operations D) cost accounting 23) What specific control can help restrict the rights of authorized users to only the portion of a database needed to complete their specific job duties? A) an access control matrix B) passwords and user IDs C) closed-loop verification D) specific authorization 24) To reduce the threat of theft or destruction of inventories and other fixed assets, the organization may wish to implement which of the following controls? A) review and approval of fixed asset acquisitions B) improved and more timely reporting C) better production and planning systems D) document all movement of inventory through the production process 25) The best control procedure for accurate data entry is A) the use of on-line terminals. B) an access control matrix. C) passwords and user IDs. D) automation of data collection.

CHAPTER 15 46) For the payroll register below, all the following data entry controls would be useful except

A) Validity check on Fed. Tax B) Sequence check on Employee No. C) Limit check on Hours D) Field check on Pay Rate

47) For the payroll register below, all the following processing controls would be useful except

A) Concurrent update control B) Cross-footing balance test C) Mathematical accuracy test D) Hash total on Employee No. 48) Describe the basic activities in an HRM/payroll cycle. The HRM/payroll cycle is a recurring set of business activities and related data processing operations associated with effectively managing the employee work force. The basic activities HRM/payroll cycle is: recruiting hiring training job assignment compensation (payroll) performance evaluation discharge of employees, due to voluntary or involuntary termination

49) Identify the two types of payroll deductions and give two examples of each type. VOLUNTARY DEDUCTION (OPTIONAL) Voluntary deductions are amounts which an employee has elected to have subtracted from gross pay. Examples are group life insurance, healthcare and /or other benefit deductions, Credit Union deductions, etc. INVOLUNTARY DEDUCTION (MANDATORY) Garnishments represent amounts which the Corporate payroll office is mandated by Federal or State low to withhold from an employees pay to satisfy an employees personal obligation.

Examples include: federal, state, county or city tax levy, court ordered child support payments, or court ordered bankruptcy. 50) Why are accurate cumulative earnings records important? Accurate records of cumulative earnings are necessary because social security and other deductions have maximum earnings amounts upon which taxes are paid; and the appropriate amount of income and payroll taxes should be remitted to the government agencies. CHAPTER 16 16) Immediately after the adjusting entries are posted, the next step in the general ledger and reporting system is to prepare A) an adjusted trial balance. B) closing entries. C) financial statements. D) an unadjusted trial balance.

17) Financial statements are prepared in a certain sequence. Which statement is prepared last in the sequence? A) the adjusted trial balance B) the income statement C) the balance sheet D) the statement of cash flows 18) A listing of journal vouchers by numerical sequence, account number, or date is an example of A) a general ledger control report. B) a budget report. C) a batch to be processed. D) responsibility accounting. 19) If you believe not all adjusting entries were posted in the general ledger, you should prepare a general ledger control report listing journal vouchers in A) numerical sequence. B) chronological order. C) general ledger account number order D) any order, since you have to review them all anyway. 20) If you believe a general ledger account was not adjusted properly or at all, you should prepare a general ledger control report listing journal vouchers in A) numerical sequence. B) chronological order. C) general ledger account number order. D) any order, since you have to review them all anyway.