Accounting 384 Spring 2009 Quiz One

Accounting 384 – Spring 2009 Quiz One

Name (please print) ______Section______

Multiple Choice (14 points total – 2 point per question) One point will be awarded for each correct multiple choice answer. Please print your selection next to the number of the question.

1. Data must be converted into information to be considered useful and meaningful for decision-making. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of a. relevancy b. timeliness c. understandability d. reliability

2. The accounting information system must include controls to ensure a. safety and availability of data b. marketing initiatives match corporate goals c. information produce from data is accurate d. both A and C

3. A decision that is repetitive, routine and well understood is a. structured b. semistructured c. unstructured d. strategic

4. Business activities that pertain to product pricing, discount and credit terms, and identifying the most and least profitable items are part of the ______activity of the organization’s value chain. a. service b. marketing and sales c. operations d. inbound logistics

5. All transaction cycles feed information directly into the a. financial statements b. governmental reports c. general ledger and reporting systems d. financing operations 6. Which step below is NOT considered to be part of the data processing cycle? a. data input b. feedback from external sources c. data storage d. data processing

7. Certain documents or forms are generated and/or processed with each transaction cycle. The issuing of a purchase order is part of which transaction cycle? a. revenue cycle b. production cycle c. human resources cycle d. expenditure cycle

Short Answer (6 points total)

8. Briefly describe two differences between the revenue cycle and expenditure cycle (2 points).

9. Briefly describe the concept of a chart of accounts. (2 points)

10. Identify whether the following transactions belong in a master file or a transaction file? (1/2 point each) a. update vendor phone numbers b. track daily purchases c. record interest payments on loans taken out by company d. change address for employees who moved to Gilbert Iowa