General ledger and reporting system
- Update general ledger
- Post adjusting entries
- Prepare financial statements
- Produce managerial reports
A file that stores all journal entries used to update the general ledger. It forms an important part of audit trail.
Match account numbers with account descriptions to ensure correct general ledger account is being accessed.
A set of XBRL files that define elements and relationships among them.
An XBRL files that contains tagged data (value).
Define every element that appears in an instance document (name, description, data type, balance type, period type).
It defines the relationship (reference, calculation, definition/hierarchy, presentation, label).
- Innovation and learning
- Internal operations
- Customer perspective of an organization
- Financial
Two principles for designing bar charts of financial data
- Begin the vertical axis at zero
- For time series graph, order x-axis chronologically from left to right.
From where do adjusting entries usually come?
a. treasurer
b. controller
c. various accounting cycle subsystems, such as sales order entry
d. unit managers
Preparing performance reports that contain data only about items that a specific organizational unit controls is an example of which of the following?
a. flexible budget system
b. responsibility accounting system
c. closing the books
d. management by exception
b. responsibility accounting system
The definition of an XBRL element, including such information as whether its normal account balance is a debit or a credit, is found in which of the following?
a. linkbase
b. instance document
c. schema
d. style sheet
Which of the following XBRL documents contains the actual data values for a company’s net income for a particular year?
a. style sheets
b. schema
c. linkbases
d. instance document
The number of orders shipped per warehouse worker each day is a metric that would most likely appear in which part of the balanced scorecard?
a. innovation and learning
b. customer
c. internal operations
d. financial
Which of the following is an important part of the audit trail?
a. journal vouchers
b. flexible budgets
c. trial balance
d. data warehouse
An adjusting journal entry to record interest revenue that has been earned but not yet received is an example of which of the following?
a. accrual
b. deferral
c. estimate
d. revaluation
Which of the following is designed primarily to improve the efficiency of financial reporting?
a. XML
b. XBRL
c. IFRS
d. the balanced scorecard
Which of the following graph design principles is most important for ensuring that financial data are accurately interpreted?
a. including a title that summarizes the point of the graph
b. attaching data values to specific elements in the graph
c. starting the y-axis of the graph at zero
d. using different colors for different variables
c. starting the y-axis of the graph at zero
The theory underlying the Balanced Scorecard is that improvements in the _______ section will lead to improvements in the ________ section, leading to improvements in the _______ section, ultimately creating better results in the financial section.
a. customer, learning & innovation, internal
b. learning & innovation, internal, customer
c. internal, customer, learning & innovation
b. learning & innovation, internal, customer
Journal entries made by either the treasurer or controller should be subject to input edit and processing controls. A data entry application control that is designed to ensure that the total debits in a journal entry equal the total credits is called a _______.
a. sign check
b. equality check
c. reasonableness check
d. zero-balance check
Violating which of the following principles of graph design would result in distorting the magnitude of a trend in sales?
a. Displaying trend data in chronological sequence from left-to-right on the x-axis
b. Starting the y-axis at zero
c. Neither of the above
d. Both of the above
Fraudulent financial reporting is a concern in the GL/reporting cycle. The best control to deal with that potential problem is _______.
a. proper segregation of duties
b. processing integrity controls such as validity checks
c. an independent audit of all adjusting entries
d. requiring mandatory vacations for all managers
e. prenumbering of all documents
c. an independent audit of all adjusting entries
Creation and review of an audit trail is a detective control that can enable organizations to find and correct problems arising from ________.
a. inaccurate updating of the general ledger
b. unauthorized adjusting entries
c. both a and b
d. neither a nor b
An adjusting entry to record bad debt expense is an example of a(n) ________.
a. accrual
b. deferral
c. estimate
d. revaluation
e. correction
Which of the following XBRL components contains information about which items should be summed to create a category total (e.g., which items comprise current liabilities)?
a. Instance document
b. Style sheet
c. Taxonomy
d. Linkbase
e. Schema
Which of the following XBRL components can, if used too much, limit the potential benefits of comparability across organizations?
a. Presentation linkbases
b. Taxonomy extensions
c. Style sheets
d. Schemas
Which section of the Balanced Scorecard would benefit most from collecting data from external parties, rather than relying on internally-generated data?
a. Financial
b. Customer
c. Internal Operations
d. Innovation and Learning