Integrated Business Processes With ERP Systems 1st Edition by Simha R.Magal – Test Bank
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Sample Test
Package Title: Test bank
Course Title: Introduction to Accounting
Question type: Multiple Choice
1. ____________
is concerned with recording the financial impacts of business processes as they
are executed.
1. Management
accounting
2. Financial
accounting (Fl)
3. Controlling
(CO)
4. Bank
ledger accounting
5. None
of the above
Answer: b
Difficulty: Medium
Section Reference: Learning Objectives
2.
Which of the following is a key process in financial accounting?
1. Sales
order processing
2. Accounts
receivable accounting
3. Credit
management
4. Income
verification
5. All
of the above
Answer: b
Difficulty: Easy
Section Reference: Learning Objectives
3. Which
process is used to manage money owed by
customers for goods and services purchased from the company?
1. General
ledger accounting
2. Accounts
receivable accounting
3. Fixed
asset accounting
4. Bank
ledger accounting
5. All
of the above
Answer: b
Difficulty: Medium
Section Reference: Learning Objectives
4. Which
process is concerned with recording data associated with bank statements?
1. Bank
ledger accounting
2. Fixed
asset accounting
3. General
ledger accounting
4. Accounts
receivable accounting
5. None
of the above
Answer: a
Difficulty: Easy
Section Reference: Learning Objectives
5. ____________
are internal divisions of an enterprise that are used to define areas of
responsibility or to meet the external reporting requirements of an enterprise
segment.
1. Cost
centers
2. Depreciation
areas
3. Business
areas
4. Sub-ledgers
5. None
of the above
Answer: c
Difficulty: Medium
Section Reference: Organizational Data
6. Which
term refers to an ordered listing of accounts that comprise a company’s general
ledger?
1. General
ledger
2. Balance
sheet
3. Bank
ledger
4. Chart
of accounts (COA)
5. None
of the above
Answer: d
Difficulty: Medium
Section Reference: Master Data
7. Which
term represents what a company owns, such as cash, inventory of materials, and
buildings?
1. Liabilities
2. Equity
3. Assets
4. Revenues
5. None
of the above
Answer: c
Difficulty: Medium
Section Reference: General Ledger Accounting
8. Which
term represents what a company owes to others, including money owed to vendors
and loans from financial institutions?
1. Liabilities
2. Equity
3. Assets
4. Revenues
5. None
of the above
Answer: a
Difficulty: Medium
Section Reference: General Ledger Accounting
9. Which
term represents the monies a company earns by selling its products and
services?
1. Liabilities
2. Assets
3. Expenses
4. Revenue
5. Equity
Answer: d
Difficulty: Medium
Section Reference: General Ledger Accounting
10. Which
term represents the costs associated with creating and selling products and
services?
1. Assets
2. Expenses
3. Liabilities
4. Equity
5. None
of the above
Answer: b
Difficulty: Medium
Section Reference: General Ledger Accounting
11. Which
element is not a
part of the typical company code data in general ledger accounts?
1. Tax-related
data
2. Field
status groups
3. Line item
display
4. Reconciliation
account data
5. None
of the above
Answer: e
Difficulty: Difficult
Section Reference: General Ledger Accounting
12. Which
term is a general ledger account that consolidates data from a group of related
sub-ledger accounts?
1. Subsidiary
ledger
2. Sub-ledger
3. Reconciliation
account
4. Line
item display
5. None
of the above
Answer: c
Difficulty: Medium
Section Reference: Subsidiary ledgers and Reconciliation Account
13. Which
of the following records the impact of a transaction step on financial
accounting?
1. Financial
accounting document
2. Parallel
accounting document
3. Sub-ledger
4. Subsidiary
ledger
5. None
of the above
Answer: a
Difficulty: Medium
Section Reference: Accounting Documents
14. Which
of the following is used to implement multiple ledgers and use each ledger for
different purposes?
1. Financial
accounting document
2. Subsidiary
ledger
3. Sub-ledger
4. Parallel
Accounting
5. None
of the above
Answer: d
Difficulty: Easy
Section Reference: Parallel Accounting
15. Which
type of asset has a physical form?
1. Master
asset
2. Tangible
asset
3. Informal
asset
4. Intangible
asset
5. None
of the above
Answer: b
Difficulty: Easy
Section Reference: Asset Accounting
16. Which
type of asset has a non-physical form?
1. Master
asset
2. Tangible
asset
3. Informal
asset
4. Intangible
asset
5. None
of the above
Answer: d
Difficulty: Easy
Section Reference: Asset Accounting
17. Which
of the following is used to report data needed to meet legal and regulatory
requirements?
1. Assets
2. Equity
3. Tangible
document
4. Financial
statement
5. None
of the above
Answer: d
Difficulty: Medium
Section Reference:
18. Which
of the following best describes the operative chart of accounts?
1. Contains
the operational accounts that are used to record the financial impact of an
organization’s day-to-day transactions
2. Used
to enable companies to meet special country-specific reporting requirements
3. Contains
accounts that are used by multiple companies to consolidate their financial
reporting
4. Contains
only accounts payable transactions
5. Contains
only accounts receivable transaction
Answer: a
Difficulty: Difficult
Section Reference: Chart of accounts
19. Which
of the following is not a mode of acquiring an asset for a company?
1. Acquiring
internally via the production process
2. Acquire
from a vendor using the purchasing process
3. Acquire
from a vendor without using the purchasing process
4. Selling
equipment
5. Acquiring
without a vendor
Answer: d
Difficulty: Easy
Section Reference: Asset Accounting
20. All
of the following are transaction types that occur during the life of an asset
except ___________ .
1. Acquisition
2. Depreciation
3. Allocation
4. Retirement
Answer: c
Difficulty: Easy
Section Reference: Asset Accounting
21. Financial
statements can be generated from which of the following?
1. Operative
COA
2. Country-specific
COA
3. Both
operative and country-specific COAs
4. Neither
operative nor country-specific COAs
Answer: c
Difficulty: Easy
Section Reference: Financial Statements
Question type: Multiple Answers
22. Balance
sheet accounts are grouped into which of the following categories?
23. Revenue
24. Assets
25. Liabilities
26. Equity
27. Expenses
Answer: b, c, d
Difficulty: Medium
Section Reference: General Ledger Accounting
23. An
organization can possess which of the following types of assets?
24. Tangible
25. Intangible
26. Financial
27. Economic
28. Virtual
Answer: a, b, c
Difficulty: Medium
Section Reference: Asset Accounting
24. Tangible
assets can include which of the following?
25. Computers
26. Bonds
27. Production
Machinery
28. Real
Estate
29. Mortgage
Answer: a, c, d
Difficulty: Medium
Section Reference: Asset Accounting
25. What
are the most common transaction types that occur during the life of an asset?
26. Production
27. Allocation
28. Acquisition
29. Depreciation
30. Retirement
Answer: c, d, e
Difficulty: Medium
Section Reference: Asset Accounting
26. What
are the primary ways in which an asset can be acquired?
27. Internally
by production
28. Internally
by inventory tracking
29. Externally
by vendor
30. Externally
without a vendor
31. By
asset liquidation
Answer: a, c, d
Difficulty: Easy
Section Reference: Acquisition
27. Which
of the following are common depreciation areas used in the US?
28. Book
depreciation
29. Cost
accounting depreciation
30. Legal
depreciation
31. Special
depreciation
32. Physical
depreciation
Answer: a, b, c. d
Difficulty: Medium
Section Reference: Depreciation
28. Reporting
in financial accounting is broadly divided into which of the following two
categories?
29. Posting
goods issue
30. Displaying
account information
31. Generating
financial statements
32. Recording
transactions
33. Automatic
posting of accounts
Answer: b, c
Difficulty: Easy
Section Reference: Reporting
29. From
which of the following can financial statements be generated?
30. Operative
chart of accounts
31. Country-specific
chart of accounts
32. Revenue
accounts
33. Assets
34. Liability
accounts
Answer: a, b
Difficulty: Difficult
Section Reference: Financial Statements
30. What
is true about a business area?
31. It is
a internal division of an enterprise
32. It
helps management monitor performance
33. It is
used for external reporting
34. It is
associated with one company code
Answer: a, b, c
Difficulty: Easy
Section Reference: Organizational Data
31. Which
of the following are types of chart of accounts?
32. Operative
COA
33. Country
specific COA
34. Active
COA
35. Group
COA
Answer: a, b, d
Difficulty: Medium
Section Reference: Chart of Accounts
32. What
does the COA data include?
33. Client
segment
34. Storage
location segment
35. Plant
segment
36. Company
code segment
Answer: a, d
Difficulty: Medium
Section General Ledger Accounts
33. The
COA segment of the COA data includes which of the following?
34. Account
currency
35. Account
number
36. Account
group
37. Short
text
Answer: b, c
Difficulty: Medium
Section General Ledger Accounts
34. Which
of the following does the balance sheet include?
35. Revenue
36. Expenses
37. Assets
38. Liabilities
Answer: c, d
Difficulty: Easy
Section General Ledger Accounts
35. Which
of the following statements concerning reconciliation accounts are true?
36. Reconciliation
account for customers is accounts payable
37. Reconciliation
account for customers is accounts receivable
38. Reconciliation
account for vendors is accounts payable
39. Reconciliation
account for vendors is accounts receivable
Answer: b, c
Difficulty: Easy
Section Subsidiary Ledgers and Reconciliation Accounts
36. Which
of the following statements regarding reconciliation accounts are not true?
37. Data
are posted directly into them
38. Data
are automatically posted into them after they are posted to the corresponding
sub-ledger
39. The
reconciliation account includes the sum of the postings of the sub-ledgers.
40. None
of the above
Answer: a
Difficulty: Easy
Section Subsidiary Ledgers and Reconciliation Accounts
37. Which
attributes are present in the FI document items?
38. Amount
39. Document
type
40. Posting
date
41. Currency
42. Posting
key
Answer: a, e
Difficulty: Medium
Section Accounting Documents
38. Which
attributes are present in the FI document header?
39. Amount
40. Document
type
41. Posting
date
42. Currency
43. Posting
key
Answer: b, c, d
Difficulty: Medium
Section Accounting Documents
39. Which
of the following statements concerning the leading ledger are true?
40. It is
a type of sub-ledger
41. Global
accounting principles are consolidated into it
42. Having
a leading ledger is optional
43. All
transaction data are posted to it
Answer: b, d
Difficulty: Medium
Section Parallel Accounting
40. A
cost center:
41. Absorbs
costs
42. Can
be associated with a department
43. Is
similar to a cost object
44. Is
associated with locations where costs are incurred
Answer: a, b, c, d
Difficulty: Easy
Section Concepts in Management Accounting
41. When does
a debit take place?
42. When
assets and expenses decrease
43. When
assets and expenses increase
44. When
revenue and liabilities decrease
45. When
revenue and liabilities increase
Answer: b, c
Difficulty: Easy
Section General Ledger Accounting
42. Balance
sheet accounts are grouped into:
43. Assets
44. Liabilities
45. Equity
46. Revenue
Answer: a, b, c
Difficulty: Easy
Section General Ledger Accounting
43. When
does a credit take place?
44. When
assets and expenses decrease
45. When
assets and expenses increase
46. When
revenue and liabilities decrease
47. When
revenue and liabilities increase
Answer: a, d,
Difficulty: Easy
Section General Ledger Accounting
44. In
accounts payable, which general ledger accounts are affected?
45. Accounts
payable reconciliation
46. Vendor
47. Supplies
expense
48. Bank
Answer: a, c, d
Difficulty: Easy
Section Accounts Payable Accounting
45. In
accounts receivable, which general ledger accounts are affected?
46. Accounts
receivable reconciliation
47. Sales
revenue
48. Bank
49. Supplies
expense
Answer: a, b, c
Difficulty: Easy
Section Accounts Receivable Accounting
Question type: True or False
46. Accounting
processes are broadly divided into two main categories: financial accounting
and management accounting.
Answer: True
Difficulty: Easy
Section Reference: Learning Objectives
47. Financial
accounting (Fl) is concerned with recording the financial impacts of business
processes as they are executed.
Answer: True
Difficulty: Medium
Section Reference: Learning Objectives
48.
Management accounting, or controlling (CO), is intended primarily for audiences
outside the organization.
Answer: False
Difficulty: Medium
Section Reference: Learning Objectives
49.
Accounts payable accounting is not associated with the procurement process.
Answer: False
Difficulty: Medium
Section Reference: Learning Objectives
50.
The general ledger is used to record the financial impacts of business process
steps.
Answer: True
Difficulty: Easy
Section Reference: Learning Objectives
51. The
balance sheet is a snapshot of the organization at a point in time.
Answer: True
Difficulty: Easy
Section Reference: Learning Objectives
52.
A segment is a division of an enterprise for which management monitors
performance separately from other segments.
Answer: True
Difficulty: Medium
Section Reference: Organizational Data:
53. Business
areas are external departments of an enterprise that are used to define areas
of responsibility or to meet the internal requirements of a division.
Answer: False
Difficulty: Difficult
Section Reference: Organizational Data
54.
A list of accounts that can be included in a general ledger is called master
data.
Answer: False
Difficulty: Difficult
Section Reference: Master Data
55.
A chart of accounts (COA) is an ordered listing of accounts that comprise a
company’s general ledger.
Answer: True
Difficulty: Easy
Section Reference: Chart of Accounts
56. Liabilities
are what the company owns, such as cash, land, and buildings.
Answer: False
Difficulty: Easy
Section Reference: General Ledger Accounts
57. Assets
are monies the company earns by selling its products and services.
Answer:
False
Difficulty: Medium
Section Reference: General Ledger Accounts
58. Expenses
are what the company owes to others, including money owed to vendors and loans
from financial institutions.
Answer: False
Difficulty: Difficult
Section Reference: General Ledger Accounts
59. Account
currency determines the currency in which all the transactions are recorded.
Answer: True
Difficulty: Easy
Section Reference: General Ledger Accounts
1. A
reconciliation account records the impact of a transaction step on financial
accounting.
Answer: False
Difficulty: Difficult
Section Reference: Subsidiary Ledgers and Reconciliation
Accounts
61. A
financial accounting document is a general ledger account that consolidates
data from a group of sub-ledger accounts, such as customers and vendors.
Answer: False
Difficulty: Difficult
Section Reference: Accounting Documents
62. Parallel
accounting consists of implementing multiple ledgers and using each ledger for
different purposes.
Answer: True
Difficulty: Easy
Section Reference: Parallel Accounting
1. An
increase in an asset account or an expense account results in a credit posting.
Answer: False
Difficulty: Medium
Section Reference: General Ledger Accounting
64. An
increase in revenue or liability results in a debit posting.
Answer: False
Difficulty: Medium
Section Reference: General Ledger Accounting
65. Accounts
payable accounting is concerned with vendors.
Answer: True
Difficulty: Easy
Section Reference: Accounts Receivable (AR) Accounting
1. Accounts
receivable accounting is concerned with customers.
Answer: True
Difficulty: Easy
Section Reference: Accounts Receivable (AR) Accounting
1. Within
accounts receivable accounting, when a payment is made the bank account is
debited and the appropriate customer account is credited.
Answer: True
Difficulty: Medium
Section Reference: Accounts Receivable (AR) Accounting
1. Intangible
assets are physical items such as buildings, machinery, and computers.
Answer: False
Difficulty: Medium
Section Reference: Asset Accounting
69. Tangible
assets are non-physical items such as trademarks and patents.
Answer: False
Difficulty: Medium
Section Reference: Asset Accounting
70. Financial
accounting is affected any time money either leaves or comes into the company.
Answer: True
Difficulty: Easy
Section Reference: Integration with other processes
71. Reporting
within financial accounting is divided into two categories: generating
financial statements and displaying account information.
Answer: True
Difficulty: Medium
Section Reference: Reporting
72. Financial
statements can be generated for different organizational levels including one
or more company codes and business areas.
Answer: True
Difficulty: Medium
Section Reference: Financial Statements
Chapter 4
The
Procurement Process
Multiple
Answer Questions
|
1. |
Which of the following are
organizational elements in purchasing? a. Shipping point b. Company code c. Vendors d. Materials e. Plant Answer:
b, e Difficulty:
Easy Page Reference:
2 Section: Organizational
Data Practice: |
|
2. |
Which of the following statements about
storage locations are true? a. A storage location must
be assigned to a plant b. A storage location can be assigned
to more than one plant c. A client can have more
than one storage location d. A plant can have more than
one storage location e. A storage location can
hold only materials with a stock status of unrestricted use Answer:
a, c, d Difficulty:
Medium Page
Reference: 2 Section: Storage
Location Practice: Yes |
|
3. |
Which of the following are
organizational elements in purchasing? a. Sales organization b. Purchasing area c. Plant d. Vendor e. Storage location Answer:
c, e Difficulty:
Easy Page Reference:
3 Section: Storage
Location Practice: |
|
4. |
Which of the following statements about purchasing organizations
are correct?
a. They negotiate
conditions of purchase with vendors b. They can purchase only for
one company c. They can purchase for
multiple plants d. They can purchase for
multiple plants, but they must be within the same company code e. They identify a buyer
or a group of buyers Answer:
a, c Difficulty:
Medium Page
Reference: 3 Section: Purchasing
Organization Practice: |
|
|
|
|
5. |
A purchase order can be
sent to which of the following? a. A vendor b. A customer c. A plant d. A purchasing organization e. A purchasing group Answer: a,
c Difficulty:
Easy Page Reference:
6 Section: Purchasing
Group Practice: |
|
6. |
Data for source determination are
obtained from: a. A purchase order b. Purchase info records c. A source list d. Contracts and agreements e. The vendor master
record Answer: b, c,
d Difficulty: Medium Page Reference:
6 Section: Purchasing
Organization Practice: |
|
7. |
Which of the following are master data
that are related to the purchasing process? a. Material master b. Vendor master c. Vendor info records d. Purchasing organization e. Customer master Answer:
a, b, c Difficulty:
Medium Page
Reference: 7 Section: Master
Data Practice: Yes |
|
8. |
Which of the following are methods of
valuing materials? a. Actual price b. Standard price c. Purchasing price d. Moving (average) price e. Selling price Answer:
b, d Difficulty:
Difficult Page
Reference: 8 |
|
|
Section: Material
Master Practice: |
|
|
|
|
9. |
Which G/L accounts are impacted by the
goods receipt step of the procurement process? a. Accounts payable b. Goods receipt / invoice
receipt account c. Inventory account d. Vendor account e. Band account Answer:
b, c Difficulty:
Difficult Page
Reference: 32 Section: Goods
Receipt Practice: |
|
10. |
Which G/L accounts are impacted by the
invoice verification step of the procurement process? a. Accounts payable b. Goods receipt / invoice
receipt account c. Inventory account d. Vendor account e. Bank account Answer:
a, b, d Difficulty:
Difficult Page
Reference: 36 Section: Invoice
Verification Practice: |
|
11. |
Which of the following data categories
are included in a purchasing info record? a. Freight b. Discounts c. Material number d. Vendor address e. Texts Answer:
a, b, e Difficulty:
Easy Page Reference:
12 Section: Purchasing Info
Records Practice: |
|
12. |
Data from which of the following
sources are automatically included in a purchase order? a. Vendor info record b. Purchasing info record c. Material master d. Vendor master e. Purchasing organization Answer:
b, c, d Difficulty:
Medium Page
Reference: 12 Section: Purchasing Info
Records Practice: |
|
13. |
Which of the following are material
types? f. Consumable material g. Raw material h. Packaging i. Consignment
material j. Non-valuated
material Answer:
a, b, c, e Difficulty:
Medium Page
Reference: 14 Section: Account
Determination Practice: |
|
14. |
Which of the following are account assignment categories?
a. Asset b. Order c. Cost center d. Sales order e. Project Answer:
a, b, c, d, e Difficulty:
Easy Page Reference: 15 Section: Account
Determination Practice: Yes |
|
15. |
Materials designated as __________ can be withdrawn only
for sampling or for scrap.
a. Goods movement b. In-quality inspection c. Blocked stock d. Material document e. Purchase info record Answer:
b, c Difficulty:
Medium Page
Reference: 17 Section: Stock Type or
Status Practice: |
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