Computer-Based Transaction Processing: Objectives and Functions

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What is the main purpose of the cash disbursement function in the expenditure cycle?

To prepare the cash for payment of invoices (correct)

To process petty cash disbursements

To disburse cash for other purposes

To record purchase returns and allowances

What is the primary objective of the revenue cycle?

To safeguard products and cash until shipped or deposited

To record and classify cash receipts promptly and accurately

To prepare needed financial reports and other outputs

To verify that the customers are worthy of credit (correct)

Which of the following is not a function of the revenue cycle?

Maintain accounts receivable

Post transactions to the general ledger

Obtain order from customer

Prepare the cash disbursement (correct)

What is the purpose of the accounts payable function in the expenditure cycle?

To maintain the accounts payable ledger Signup and view all the answers

What is the purpose of the general ledger posting function in the expenditure cycle?

To post transactions from the expenditure cycle to the general ledger Signup and view all the answers

Which of the following is not an objective of the revenue cycle?

To prepare the cash disbursement Signup and view all the answers

What is one of the objectives of the Conversion Cycle related to work-in-progress inventories?

To transform work-in-progress inventories into finished goods on schedule Signup and view all the answers

Which function is NOT part of the Conversion Cycle?

Preparing financial reports and other outputs Signup and view all the answers

What is an objective of the General Ledger System?

Ensuring established levels of product quality are attained Signup and view all the answers

Which activity is NOT related to the functions of the Conversion Cycle?

Processing back orders Signup and view all the answers

What is an objective of handling sales returns and allowance in the accounting system?

Collecting delinquent accounts Signup and view all the answers

Which of the following is NOT an objective related to the Conversion Cycle?

Completing and transferring finished goods Signup and view all the answers

What is the primary objective of the general ledger system?

To maintain an equality of debit and credit balances among the accounts Signup and view all the answers

Which of the following is not a function of the general ledger system?

Prepare budgets Signup and view all the answers

What type of account is considered an 'equity account' in the chart of accounts?

Liabilities Signup and view all the answers

Which of the following types of transactions is not posted to the general ledger?

Budgeting entries Signup and view all the answers

What is the purpose of recording 'reversing entries' in the general ledger?

To close out temporary accounts at the end of the period Signup and view all the answers

What is the main purpose of the 'chart of accounts' in the general ledger system?

To provide a coded listing of all the accounts Signup and view all the answers

What is the primary objective of the expenditure cycle?

To ensure all goods and services are ordered as needed Signup and view all the answers

Which of the following is NOT a function of the expenditure cycle?

Generate invoices for payment Signup and view all the answers

What is the purpose of posting obligations and cash disbursements to suppliers' accounts?

To track the organization's payables Signup and view all the answers

Which of the following is NOT an objective of the expenditure cycle?

To ensure all cash receipts are related to authorized expenditure Signup and view all the answers

What is the purpose of ascertaining the validity of the payment obligation?

To ensure that invoices are accurate and legitimate Signup and view all the answers

Which of the following is a type of transaction or data source mentioned in the text?

Routine internal transactions Signup and view all the answers