Chapter 2 - Chapter 2 MULTIPLE CHOICE 1. An agreement...

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Chapter 2 MULTIPLE CHOICE 1. An agreement between two entities to exchange goods or services or any other event that can be measured in economic terms by an organization is a) give-get exchange b) transaction c) revenue d) processing cycle 2. The transaction cycles approach leads to efficient processing of large number of transactions because a) transaction cycles are easier to computerize. b) a large number of transactions within a given cycle can be categorized into a relatively small number of distinct types. c) the transaction cycle approach represents the natural order of business. d) transaction cycles are easy to understand. 3. What is the major difference between the revenue and the expenditure cycle? a) The revenue cycle includes marketing activities; the expenditure cycle does not. b) In the revenue cycle, cash is received; in the expenditure cycle cash is paid out. c) The expenditure cycle includes paying employees. d) The revenue cycle includes the activity of obtaining funds from investors. 4. Which of the following is not a transaction cycle? a) revenue b) expenditure c) human resources d) general ledger and reporting 5. Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the expenditure cycle would be a) give cash, get cash. b) give cash, get goods. c) give cash, get labor. d) give goods, get cash. 6. The transaction cycles relate to one another and interface with this to generate information for both management and external parties. a) general ledger and reporting system 1
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b) accounting information systems c) computer processor d) human resources cycle 7. Which of the following statements is false? a) Retail stores do not have a production cycle. b) Financial institutions have installment-loan cycles. c) A service company does not have an inventory system. d) Every organization should implement every transaction cycle module. 8. One of the steps in the data processing cycle is data input. What is the catalyst for data input into a system? a)
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This note was uploaded on 07/01/2011 for the course ECONOMIC 00128876 taught by Professor Dr.a'delmsarouh during the Summer '11 term at Hashemite University.

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Chapter 2 - Chapter 2 MULTIPLE CHOICE 1. An agreement...

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