Multiply Choice

1. Sequential access means that

a. Data are stored on magnetic tape.

b. The address of the location of data is found through the use of either an algorithm or an index.

c. To read any record on the file, all of the preceding records must first be read.

d. Each record can be accessed in the same amount of time.

2. Which file has as its primary purpose to provide historical financial data for comparative financial reports?

a. Journal voucher history file

b. Budget master file

c. Responsibility file

d. General ledger history file

3. Which of the following statements is true?

a. Journal vouchers detailing transaction activity flow from various operational departments into the GLS, where they are independently reconciled and posted to the journal voucher history file.

b. Journal vouchers summarizing transaction activity flow from the accounting department into the GL.S, where they are independently reconciled and posted to the general ledger accounts.

c. Journal vouchers summarizing transaction activity flow from various operational departments into the GLS, where they are independently reconciled and posted to the general ledger accounts.

d. Journal vouchers summarizing transaction activity flow from various operational departments into the GLS, where they are independently reconciled and posted to the journal voucher history file.

4. Which of the following statements best describes a computer-based GL/FRS?

a. Most firms derive little additional benefit from a real-time FRS.

b. Batch processing is typically not appropriate for transaction processing of GLS.

c. The sequential file approach is an inefficient use of technology.

d. A batch system with direct access files recreates the entire data base each time the file is updated.

5. Which of the following is NOT a potential exposure of the FRS?

a. A defective audit trail.

b. General ledger accounts that are out of balance with subsidiary accounts.

c. Unauthorized access to the check register.

d. Unauthorized access to the general ledger.

6. Which task should the general ledger perform?

a. Update the general ledger

b. Prepare journal vouchers

c. Have custody of physical assets

d. Have record-keeping responsibility for special journals of subsidiary ledgers

7. The Ozment Corporation uses a performance reporting system that shows online the data for each subordinate who reports to a supervisor. The data presented show the actual costs incurred during the period, the budgeted costs, and all variances from budget for that subordinate’s department. The name of this system of reporting is

a. Contribution accounting.

b. Responsibility accounting.

c. Flexible budgeting.

d. Program budgeting.

e. Cost-benefit accounting.