ACC ISCh02 - 1. Chapter 2 MULTIPLE CHOICE 2. An agreement...

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Unformatted text preview: 1. Chapter 2 MULTIPLE CHOICE 2. 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 3. Groups of related business activities such as the acquisition of merchandise and payment of vendors are called a) transaction cycles. b) economic cycles. c) business events. d) transactions. 4. 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. 5. The basic "give and take" functions of a business have been grouped into transaction cycles. The cycle that includes the events of hiring employees and paying them is known as the a) revenue cycle. b) expenditure cycle. c) human resources cycle. d) financing cycle. 6. 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. 7. The business owners obtain financing from outside investors, which results in an inflow of cash into the company. This transaction is considered to be part of which cycle? a) the revenue cycle b) the payroll cycle c) the production cycle d) the financing cycle 8. Which of the following is not a transaction cycle? a) revenue b) expenditure c) human resources d) general ledger and reporting 9. All transaction cycles feed information directly into the a) financial statements. b) governmental reports. c) general ledger and reporting system. d) financing operations. 10. 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. 11. Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the revenue cycle would be a) give cash, get goods. b) give goods, get cash. c) give cash, get labor. d) give cash, get cash. 12. 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 b) accounting information systems c) computer processor d) human resources cycle 13. Many modern accounting software packages offer separate transaction cycle modules. What is the reason for this?...
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ACC ISCh02 - 1. Chapter 2 MULTIPLE CHOICE 2. An agreement...

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