Question

Exercise 33- Accounting

Please follow parts 1 through 10, pick the best answer out of the ones offered.

1. Which of the following controls would assist in detecting an error when the data input clerk records a sales invoice as $12.99 when the actual amount is $122.99?
   1. Batch control totals.
   2. Echo check.
   3. Limit check.
   4. Sign check.

2. Which of the following is considered an application input control?
   1. Run control total.
   2. Edit check.
   3. Report distribution log.
   4. Exception report.

                                               

3. Compared to batch processing, real-time processing has which of the following advantages?
   1. Ease of auditing.
   2. Ease of implementation.
   3. Timeliness of information.
   4. Efficiency of processing.

4. Scarlett O'Hara “Give a Darn” tours of Atlanta has an automated system that uses information obtained from travel agents to help customers find the best tours for their interests. This is best described as a(n):
   1. Database.
   2. Data warehouse.
   3. Expert system.
   4. Data mart.

                                                                       

5. Haufinger buys one widget each day for use in his factory and pays for the widget using one bitcoin. On three recent days, the value of one bitcoin was:

Day 1	$2,200 US
Day 2	$2,400 US
Day 3	$2,500 US

According to the IRS, what is the cost of the widgets purchased for these three days for tax purposes?

1. 1 bitcoin.
2. $2,200.
3. $2,367.
4. $7,100.

6. Bitcoin uses a(n) ______________ ledger on a ______________ network.
   1. Accounting; reticulated spline.
   2. Centralized; client-server.
   3. Distributed; peer-to-peer.
   4. Wallet; peer-to-peer.

                                                           

7. Which of the following procedures would enhance the control of a computer operations department?

I. Periodic rotation of operators.

II. Mandatory vacations.                                            

III. Controlled access to the facility.

IV. Segregation of personnel who are responsible for controlling input and output.

1. I, II.
2. I, II, III.
3. III, IV.
4. I, II, III, IV.

8. What type of computerized data processing system would be most appropriate for a company that is opening a new retail location?
   1. Batch processing.
   2. Real-time processing.
   3. Sequential-file processing.
   4. Direct-access processing.

9. The use of voucher systems helps control:
   1. Unauthorized payment of invoices.
   2. Unauthorized orders of goods.
   3. The use of unauthorized vendors.
   4. Underpayments to supplier.

10. Roger buys seashells from Sally's SeaShore Sales. A more secure way for Roger to access Sally's website is by:
    1. XBRL.
    2. The intranet.
    3. The Internet.
    4. An extranet.

Answer 1

1. Solution: The correct option is “a” i.e Batch Control Totals

The batch control total only would be able to identify this error . The other option “b” would not be able to identify the error as it is a hardware control that checks whether the data that is transmitted is correct and option “c” applies only if the amounts are reversed and option “d” will be able to identify only field restrictions(negative and positive)and not this error.

2. Solution: The correct option is “b” i.e Edit Check

This edit check is an application input control as it is a check on the correctness and accuracy of the data that is being input into the system. The other options of “a” and “d” are processing controls and the option “c” is a distribution control.

3. Solution: The correct option is “c” i.e Timeliness of Information

Compared to batch processing the real time processing has the advantage of timeliness of information because in this situation everything happens real time i.e at the time the data is processed the records are also updated at the same time that the transaction is entered into.

4. Solution: The correct option is “c”i.e Expert System

This is so because the automated system uses the knowledge and information obtained from travel agents to offer the advice and help in the decision making of the customers.