Podcast
Questions and Answers
In an accounting information system, what occurs during the authorization of a cash disbursement?
In an accounting information system, what occurs during the authorization of a cash disbursement?
- Matching of purchase order, receiving report, and invoice (correct)
- Approval of employee payroll
- Preparation of financial statements
- Inventory management
What strengthens the internal controls in a company according to the given text?
What strengthens the internal controls in a company according to the given text?
- Automating only the cash disbursements process
- Creating multiple layers of management
- Outsourcing all accounting processes
- Having the same individuals complete purchasing, receiving, accounts payable, and cash disbursements processes (correct)
What is necessary for an automated matching system used in accounting information systems?
What is necessary for an automated matching system used in accounting information systems?
- No specific requirements
- Manual matching of documents
- All relevant files must be online or in databases (correct)
- Physical copies of all documents must be submitted
Who should be given the responsibility for authorizing actual payments in an accounting information system?
Who should be given the responsibility for authorizing actual payments in an accounting information system?
What is an advantage of a batch General Ledger System (GLS)?
What is an advantage of a batch General Ledger System (GLS)?
What is a characteristic of the Management Reporting System (MRS)?
What is a characteristic of the Management Reporting System (MRS)?
Which statement about authority is not true?
Which statement about authority is not true?
What is true about the manager’s span of control?
What is true about the manager’s span of control?
Which document describes the chain of events within a company's conversion process?
Which document describes the chain of events within a company's conversion process?
What is the purpose of preparing the unadjusted trial balance?
What is the purpose of preparing the unadjusted trial balance?
Which account appears on the post-closing trial balance?
Which account appears on the post-closing trial balance?
From where are financial statements prepared?
From where are financial statements prepared?
Flashcards
Authorization of Cash Disbursement
Authorization of Cash Disbursement
The process of matching a purchase order, receiving report, and invoice to approve cash payments.
Strengthening Internal Controls
Strengthening Internal Controls
Having the same individuals responsible for purchasing, receiving, accounts payable, and cash disbursements enhances controls.
Automated Matching System Requirements
Automated Matching System Requirements
All relevant files must be online or in databases to function effectively in accounting systems.
Payment Authorization Responsibility
Payment Authorization Responsibility
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Batch General Ledger System Advantage
Batch General Ledger System Advantage
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Management Reporting System Characteristic
Management Reporting System Characteristic
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Misconception about Authority
Misconception about Authority
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Manager’s Span of Control
Manager’s Span of Control
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Capital Budgeting Document Purpose
Capital Budgeting Document Purpose
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Unadjusted Trial Balance Purpose
Unadjusted Trial Balance Purpose
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Post-Closing Trial Balance Account
Post-Closing Trial Balance Account
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