Test Bank Ch14 - Chapter 14 MULTIPLE CHOICE 1. The general...

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Chapter 14 MULTIPLE CHOICE 1. The general ledger and reporting system consists of the __________ involved in __________ the general ledger and __________ reports. a) business transactions; updating; processing b) data processing; business transactions for; printing c) information processing; updating; creating d) business transactions; data processing; preparing 2. Which item below is not considered a major input to the general ledger and reporting system? a) summary entries from the major subsystems b) reports from managers c) adjusting entries d) financing and investing activities 3. Who provides the adjusting entries for a well-designed general ledger and reporting system? a) various user departments b) the treasurer's area c) the other major AIS subsystems d) the controller's area 4. The general ledger and reporting system is designed to provide information for which of the following user groups? a) internal users b) external users c) inquiry processing by internal or external users d) all of the above 5. The general ledger system of an organization should be designed to serve the information requirements of both financial and nonfinancial users. This means that the system should a) support producing regular periodic reports. b) support the real-time inquiry needs of all users. c) support producing regular periodic reports and respond to real-time inquiry needs. d) support access by investors and creditors of the organization to general ledger balances. 6. The first activity in the general ledger system is to update the general ledger. Updates come from the various accounting subsystems as well as from the treasurer. How is general ledger updating accomplished by the various accounting subsystems? a) Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours. b) Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger. c) The controller or treasurer must approve accounting subsystem journal entries before any updating may occur. d) Nonroutine transactions are entered into the system by the treasurer's office.
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7. When updating the general ledger, sales, purchases, and production are examples of __________ entries, and issuance or retirement of debt and the purchase or sale of investment securities are examples of __________ entries. a) adjusting; controller originated b) accounting subsystem; treasurer originated c) adjusting; special journal d) controller generated; special journal 8. Entries to update the general ledger are often documented by which of the following? a) general journal b) subsidiary journal c) subsidiary ledgers d) journal vouchers 9. In accounting terminology, the form that documents journal entry updates to the general ledger is called a) a trial balance. b)
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Test Bank Ch14 - Chapter 14 MULTIPLE CHOICE 1. The general...

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