Accounting 384 – Final
Spring 2008 (250 points)
Name ______________________________
Section _____________________________
Please note: By taking the exam at this time, I believe you agree to the following ethical conduct:
1. You will not discuss the exam with any person until after Thursday, May 8th, since some people will not take the
exam until Thursday.
2. If you are taking this exam on Thursday, May 8th, you did not solicit information about the exam from anyone.
3. Anyone completing the exam on Monday, May 5th, may use item two as your reason for refusing to discuss the exam,
i.e., you are helping the students who take the exam on Thursday, May 8th, avoid the situation of responding that they
did receive assistance.
Good luck as you finish your degree at ISU!! Enjoy your break and keep in touch!!!
Accounting 384 – Final
Spring 2008 (250 points)
Name ______________________________
Section _____________________________
Multiple Choice (4 points each * 30 questions = 120 total points)
Identify the choice that best completes the statement or answers the question.
1.
Efficiency and effectiveness of operations are goals of:
a.
b.
c.
d.
2.
Software that manages the interactions with the organization’s that supply the goods and services to an
enterprise is known as
a.
b.
c.
d.
3.
customer interface
supplier interface
Purchasing
Accounting
A disadvantage of the periodic mode is:
a.
b.
c.
d.
6.
DreamWeaver
Middleware
Microsoft
NetWeaver
Back office functions include:
a.
b.
c.
d.
5.
customer relationship management (CRM) software
customer self service (CSS) software
supplier relationship management (SRM) software
supply chain management (SCM) software
The general term for software that connects third-party modules to ERP systems is known as
a.
b.
c.
d.
4.
enterprise systems
risk assessment
e-business
internal control
Completeness
Accuracy
Validity
Timeliness
A process in which successive layers of data flow diagrams are constructed by "exploding" the bubbles
on a less detailed DFD to show more detailed data flows is called:
a.
b.
c.
d.
top-down partitioning
serial expansion
balanced construction
expanded data flows
________ of 24 possible24
points
Points
Final – Spring 2008
Acct 384
7.
An information processing activity could be any of the following except:
a.
b.
c.
d.
8.
a list of attributes that we wish to SELECT from the database
a WHEN clause
a list of tables where these attributes can be found
a WHERE clause
A process by which organizations select objectives, establish processes to achieve objectives, and
monitor performance is
a.
b.
c.
d.
14.
Select
Project
Join
Display
The SELECT statement has all but one of the following parts
a.
b.
c.
d.
13.
one-to-many
one-to-one
one-to-few
many-to-many
Which of the following relational commands would a manager use to combine the data from two related
relations into a third relation?
a.
b.
c.
d.
12.
create tables, identify entities, identify relationships
identify relationships, identify entities, create tables
identify entities, identify relationships, create tables
create tables, identify relationships, identify entities
Which of the following is not a relationship type?
a.
b.
c.
d.
11.
the query
the primary key
the composite key
the form
In an entity relationship diagram, the correct sequence of steps is
a.
b.
c.
d.
10.
sending or receiving data
preparing documents
data entry
verifying data
The main identifier for the records in a table in a relational database table is
a.
b.
c.
d.
9.
Page 2
enterprise risk management
internal control
organizational governance
risk assessment
A manager of a manufacturing plant alters production reports to provide the corporate office with an
inflated perception of the plant's cost effectiveness in an effort to keep the inefficient plant from being
closed. This action would be classified as a(n):
a.
b.
c.
d.
Risk
Hazard
fraud
Exposure
________ of 32 possible points
32 Points
Final – Spring 2008
Acct 384
15.
Page 3
The use of IT resources for enterprise systems and e-business
a. magnifies the importance of protecting the resources both within and outside of the organization from risks
b. magnifies the importance of protecting the resources both within but not outside the of the organization from
risks
c. makes it easier to provide internal control risk when IT resources are interlinked
d. none of the above
16.
Data in all their forms that are input, processed, and output by information system are called this IT
resource:
a.
b.
c.
d.
17.
In an information systems organizational structure, the function of ____ is a central point from which to
control data and is a central point of vulnerability.
a.
b.
c.
d.
18.
check digit verification
data encryption
preformatted screens
reasonableness checks
From the standpoint of good internal control, which of the following managers should not report (either
directly or through an intermediate supervisor) to the vice president of marketing?
a.
b.
c.
d.
21.
ensure input validity
ensure input completeness
ensure input accuracy
ensure update accuracy
A control that can be used to reduce the likelihood of a transposition occurring when an account number
is entered into a computer is:
a.
b.
c.
d.
20.
data control
data preparation (data entry)
data librarian
database administration
A written approval in the form of a signature or initials on a document indicating that a person has
authorized the event achieves the control goal of:
a.
b.
c.
d.
19.
Information
Applications
Infrastructure
People
manager--new product development
manager--customer sales and service
manager--credit department
manager--sales order department
Which of the following normally would trigger the billing process in a billing/accounts receivable/cash
receipts process?
a.
b.
c.
d.
a copy of the sales order
a shipping notice
a picking ticket
a customer acknowledgment
________ of 28 possible points
28 Points
Final – Spring 2008
Acct 384
22.
At the time that a purchasing process places an order for goods or services, which of the following is
typically updated?
a.
b.
c.
d.
23.
the balance sheet
the income statement
the standard costing variance report
the statement of owner equity changes
Tracing back to individual business events that have been aggregated into account balances is done by
means of a(n):
a.
b.
c.
d.
28.
accrue employer taxes
distribute labor costs
reconcile hours worked
pay employees
In contrast to the managerial reporting process, the financial reporting process prepares all of the
following financial statements except:
a.
b.
c.
d.
27.
accrue employer taxes
distribute labor costs
reconcile hours worked
pay employees
What is the process that is initiated by validated attendance time records?
a.
b.
c.
d.
26.
Check
purchase requisition
vendor invoice
disbursement voucher
What is the process that interfaces with the GL to provide the necessary journal entries to allocate
employee payroll?
a.
b.
c.
d.
25.
accounts payable master data
receiving report data
purchase order data
general ledger data
The document one business sends to another business that identifies the goods or services to be paid and
the amount is:
a.
b.
c.
d.
24.
Page 4
electronic reference service
general ledger account
audit trail
data dictionary
Which of the following has the task of post implementation review?
a.
b.
c.
d.
AIS Analysis
AIS Selection
AIS Implementation
AIS Operation
________ of 28 possible 28
points
Points
Final – Spring 2008
Acct 384
29.
Which of the following accountant types involved with the AIS acquisition reviews systems, makes
recommendations for systems changes, helps to ensure that systems are acquired efficiently and
effectively, and that the systems being purchased have sufficient internal controls and will be auditable?
a.
b.
c.
d.
30.
Page 5
Consultant
Internal auditor
External auditor
None of the above
Which of the following statements regarding the opportunity and cost of errors in the systems
development process is false?
a. Less errors are detected in the operation phase than in the design phase.
b. Errors detected in the design phase are less costly to correct than errors detected in the operation phase.
c. Errors detected in the implementation phase are more costly to correct than errors detected in the operation
phase.
d. More errors are detected in the analysis phase than in the design phase.
________ of 8 possible points
Final – Spring 2008
Acct 384
31.
Page 6
Four flow charts for select sales/revenue processes for It’s Finally Spring Inc. have been provided for
the following descriptions: Identify the mistake(s) in each flow chart. (4 points each, 16 points total)
a.
Clerks input orders received via postal mail into the computer and file the original order in
alphabetically order.
Order
Input
N
b.
The sales systems updates customer master file stored on magnetic disk nightly with all customer
changes stored on magnetic tape.
Customer
Changes
Update
Customer
Master File
Customer
Master
File
Final – Spring 2008
Acct 384
Page 7
c.
The cash receipts program updates the Accounts Receivable master file stored on magnetic disk
with cash receipts transaction file stored on magnetic disk and generates a Summary Accounts
Receivable report (in paper format) that is forwarded to the CEO.
Cash
receipts
tran file
Update
Customer
Master File
Accounts
Receivable
Master
file
Summary Accounts
Receivable Report
CEO
d.
The accounting clerk manually matches the sales order to the shipping report and prepares an
invoice which is forwarded to the customer.
Sales
Order
Shipping
Report
Match
Sales Order
And Report
Prepare Invoice
Invoice
Customer
________ of 16 possible points
Final – Spring 2008
Acct 384
Page 8
32. Super Cy Tennis Camp Inc. purchases tennis balls and racquets for resale to its clients. Super Cy Tennis
Camp Inc.’s automated inventory system sends a purchase request to the Purchasing Department each time the
number of tennis balls is less than 50 or the number of racquets falls below 20. The Purchasing Department
contacts several vendors to solicit bids for the tennis balls and racquets.
Once the bids are received, the Purchasing Department, along with Cy Junior, equipment manager, review the
bids and select a vendor. A purchase order is then prepared and emailed to the selected vendor.
When the goods are received from the vendor, the Warehouse employees count the goods and verify their
condition. They prepare a receiving report and forward the goods to Cy Junior for him to stock in their Super
Cy Cool Tennis Equipment Store. A copy of the receiving report is forwarded to the Accounting Clerk who
matches it with the invoice and prepares the check for the vendor. The accounting system automatically prints
out a Monthly Purchase Summary report which is forwarded to the VP Tennis Equipment and to the CEO of the
firm.
REQUIRED:
a.
Prepare a context data-flow diagram for current expenditure system at Super Cy Tennis Camp,
Inc. (8 points).
b.
List the processes to include in a zero level DFD for the expenditure system at Super Cy Tennis
Camp Inc. (4 points).
________ of 12 possible points
Purchase Line Items
Final – Spring 2008
Acct 384
Page 9
Use the following expenditure information for Brice’s Magic Basketball Inc. to answer
questions 33 to 37.
Table
Inventory
Cash
PlaceOrder
ReceiveOrder
MakePayment
PurchasePerson
WarehouseClerk
Vendor
Cashier
Inventory-PlaceOrder
Inventory-ReceiveOrder
33.
Attributes
ProductWeight, ReorderPoint, ProductNumber, Description, UnitCost,
UnitPrice, QuantityOnHand
BankID, Balance, AccountNumber
VendorNumber, PurchasePersonNumber, Terms,
PurchaseOrderNumber, OrderDate, DesiredDeliveryDate,…
WarehouseClerkNumber, VendorNumber, AmountDue,
ReceivingReportNumber, PurchaseOrderNumber, ReceiptDate
VendorNumber, CashierNumber, ReceivingReportNumber,
AccountNumber, CheckNumber, CheckDate, CheckAmount
EmployeeName, DateHired, BirthDate, EmployeeNumber, Salary,
ManagerNumber
EmployeeName, DateHired, BirthDate, EmployeeNumber, Salary,
ManagerNumber
VendorName, Street, City, State, Zip, VendorNumber, VendorPhone)
EmployeeName, DateHired, BirthDate, EmployeeNumber, Salary,
ManagerNumber
ActualPurchasePrice, OrderQuantity, ProductNumber,
PurchaseOrderNumber
QuantityReceived, ProductNumber, ReceivingReportNumber,
Identify the best primary key(s) for each table. (4 points)
Inventory
Inventory-PlaceOrder
MakePayment
Vendor
PlaceOrder
Inventory-ReceiveOrder
ReceiveOrder
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
________ of 4 possible points
Acct 384
Final – Spring 2008
Page 10
34.
Draw the segment of the REA from which the tables were created from. Be sure to add the minimum
and maximum cardinalities. (12 points)
35.
List vendor name and complete address for all vendors from Boone, Iowa. (7 points)
36.
Write a query to identify the total amount paid by Brice’s Magic Basketball Inc. to each vendor in May
2008 (hint: May has 31 days). Include vendor name and address in your results. (7 points)
(7 points)
37.
List item number, description, quantity of all items received from vendors in Ogden, Iowa on May 5,
2008. (7 points)
________ of 33 possible points
Acct 384
Final – Spring 2008
Page 11
38.
Explain how one converts a many to many relationship on a REA diagram to the actual physical
database. (7 points)
39.
Describe the early close process. (7 points)
40.
Describe two internal controls to reduce the probability that a company will hire unqualified employees.
(7 points)
41.
Describe how a logical access control matrix works. (7 points)
________ of 28 possible points
Final – Spring 2008
Acct 384
43.
Page 12
Identify the business rules diagrammed in the following REA segments. (16 points)
a.
(1, 1)
(0, N)
Labor
Acquisition
b.
(0, N)
Cash
Employee
(1, 1)
Cash
Disbursement
Acct 384
Final – Spring 2008
Page 13
c.
Labor
Acquisition
(0, N)
(1, N)
Cash
Disbursement
d.
Labor Request
(0, 1)
(1, N)
Labor Schedule
________ of 16 possible points
Acct 384
Final – Spring 2008
Page 14
44.
Describe the resources and agents involved in the cash receipts event in the financing cycle. (7 points)
45.
Describe the difference between a sign check and range check. (7 points)
46.
Describe what each of the four symbols used in a DFD represents. (7 points)
________ of 21 possible points