Screenshot_20200311_121443_11_03_2020_12_14 - 4G 4G 1 12:14 0.80 KB\/s 67 Billones-AIS Read-only Read Only You can't save changes to this file V Midterm

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Unformatted text preview: 4G 4G 1 . 12:14 0.80 KB/s . . . 67 Billones-AIS - Read-only . . . Read Only - You can't save changes to this file. V Midterm Examination March 4, 2020 ITEd 102: Accounting Information System Miles Nicko Santos, CPA Billones, Dominador III, B. BS Accountancy Part 1: Introduction to Transaction Processing 1. What three business cycles exist in all businesses? Answer: The expenditure cycle, conversion cycle, and revenue cycle. 2. Name the major subsystems of expenditure cycle. Answer: Purchases/accounts payable, cash disbursements, payroll, and fixed asset systems. 3. Name the major subsystems of conversion cycle. Answer: Production system and cost accounting system. 4. Name the three types of documents. Answer: Source documents, product documents, and turnaround documents. 5. Name the two types of journals. Answer: Special journals and general journals. 6. Distinguish between a general journal and a journal voucher. Answer: A general journal refers to a book of original entry in which accountants and bookkeepers record business transactions, in order, according to the date events occur. A general journal is the first place where data is recorded, and every page in the item features dividing columns for dates, serial numbers, as well as debit or credit records. Some organizations keep specialized journals, such as purchase journals or sales journals that only record specific types of transactions. While, a journal voucher is a document on which is stored the essential information about an accounting transaction. This voucher contains the following information; unique identifying number, transaction date, transaction description, transaction amount, accounts impacted, supporting references to documentary evidence, and authorizing signature/s. A journal voucher is a written authorization to make a transaction entry, and so is a key document that is examined by auditors as part of their audit procedures. 7. Name two types of ledgers. Answer: General Ledger and Subsidiary Ledger. 8. What is an audit trail? Answer: An audit trail is a step-by-step record by which accounting or trade data can be traced to its source. Audit trails are used to verify and track many types of transactions including accounting transactions and trades in brokerage accounts. An audit trail is most often utilized when the accuracy of an item needs to be verified. Audit trails can be useful tools when determining the validity of an accounting entry, source of funds or trade. Part 2: Ethics, Fraud & Control. 1. Differentiate errors from fraud. Midterm Examination March 4, 2020 ITEd 102: Accounting Information System Miles Nicko Santos, CPA E...
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