QUESTION 1

Question

QUESTION 1
A computer contingency plan does not include
	a.	a backup plan.
	b.	an optimizing plan.
	c.	a recovery plan.
	d.	an emergency plan.
	e.	a test plan.
2 points

QUESTION 2
An audit trail describes the
	a.	link between transactions and the financial statements.
	b.	auditor’s progress towards their CPA license.
	c.	documents the auditors examined.
	d.	limitations of using an automated accounting system.
	e.	procedures the software designers used in building the accounting system.
2 points

QUESTION 3
An internal control structure for accounting information is made up of
	a.	administrators and workers.
	b.	an automated system with hardware and software.
	c.	monitoring and recording devices, such as closed circuit video.
	d.	a computer and the company’s owner.
	e.	preventive and feedback controls.
2 points

QUESTION 4
Which of the following is not one of the uses of accounting information for business managers?
	a.	Hold employees responsible for results
	b.	Determine the company’s vision
	c.	Manage and control operations
	d.	Maintain an appropriate organizational structure
	e.	Communicate with those outside of the organization
2 points

QUESTION 5
Dale has the responsibility for reviewing his company’s performance in terms of efficiency and effectiveness. Dale is conducting what type of audit?
	a.	A government audit
	b.	A management audit
	c.	An internal control audit
	d.	An external audit
	e.	A compliance audit
2 points

QUESTION 6
Her company’s financial records are disrupted when Sharon enters a value of negative $200,000 for an asset. This problem points to a problem of an automated system, called
	a.	decreased visibility of transactions.
	b.	existence of data in computer-readable form only.
	c.	a diminished audit trail.
	d.	difficulty in following a transaction.
	e.	inability of the computer to exercise logic.
2 points

QUESTION 7
A CPA is a public accountant who is licensed by the government.
 True

False

2 points

QUESTION 8
Which of the following is not one of the drawbacks of automated information systems, as compared to manual systems?
	a.	Existence of data in computer-readable form only
	b.	Diminished audit trail
	c.	Decreased visibility of transaction processing
	d.	Inability of the computer to exercise logic
	e.	Consistency of calculations and procedures
2 points

QUESTION 9
A profession, such as accounting, is built on a common body of knowledge, among other factors.
 True

False

2 points

QUESTION 10
At Samantha’s advertising agency, one worker is responsible for preparing payroll checks while another person is responsible for overseeing the payroll budget and checking the amounts paid. Separation of duties is one example of a(n)
	a.	audit.
	b.	feedback control.
	c.	ethical problem.
	d.	external control.
	e.	preventive control.
2 points

QUESTION 11
Current assets are called “current” because
	a.	they must be paid this year.
	b.	they must be reported this year.
	c.	they will become liabilities by the end of this year.
	d.	they are cash or will be converted to cash soon.
	e.	they were incurred this year.
2 points

QUESTION 12
Which financial statement shows results at one moment in time—the end of an accounting period—rather than results over an entire period of time?
	a.	The statement of cash flows
	b.	The income statement
	c.	The statement of retained earnings
	d.	The balance sheet
	e.	The expense account
2 points

QUESTION 13
An AIS is all of the following except
	a.	the set of all the organization’s financial information.
	b.	a source of information for other functional areas of the business.
	c.	a provider of information to external users.
	d.	a provider of data needed by managers as they make decisions.
	e.	a collection of financial and nonfinancial information.
2 points

QUESTION 14
Which of the following is not a likely consequence of unethical or illegal accounting practices?
	a.	The federal government will compensate stockholders.
	b.	Lenders will not be repaid.
	c.	Borrowers will pay higher interest.
	d.	Employees will lose their jobs.
	e.	Suppliers will suffer or even go bankrupt.
2 points

QUESTION 15
After an organization accounts for everything it owns (its assets) and subtracts everything it owes (its liabilities) what remains is called
	a.	long-term assets.
	b.	retained earnings.
	c.	net income.
	d.	owners’ equity.
	e.	positive cash flow.
2 points

QUESTION 16
By law, a publicly traded company’s financial statements must be audited by
	a.	Certified Public Accountants (CPAs).
	b.	government auditors.
	c.	operational auditors.
	d.	management auditors.
	e.	internal auditors.

GPT-4o mini · Answer

Here are the answers to your questions:

QUESTION 1

Answer: b. an optimizing plan.

QUESTION 2

Answer: a. link between transactions and the financial statements.

QUESTION 3

Answer: e. preventive and feedback controls.

QUESTION 4

Answer: b. Determine the company’s vision.

QUESTION 5

Answer: b. A management audit.

QUESTION 6

Answer: e. inability of the computer to exercise logic.

QUESTION 7

Answer: True.

QUESTION 8

Answer: e. Consistency of calculations and procedures.

QUESTION 9

Answer: True.

QUESTION 10

Answer: e. preventive control.

QUESTION 11

Answer: d. they are cash or will be converted to cash soon.

QUESTION 12

Answer: d. The balance sheet.

QUESTION 13

Answer: a. the set of all the organization’s financial information.

QUESTION 14

Answer: a. The federal government will compensate stockholders.

QUESTION 15

Answer: d. owners’ equity.

QUESTION 16

Answer: a. Certified Public Accountants (CPAs).

Feel free to ask if you have any further questions or need additional explanation!