Chapter 19 General Ledger and Business Reporting GL BR Process TRUE FALSE 1 The GL BR process is an interacting structure of people equipment methods and controls that is designed to accomplish both operations and information system functions 2 The business reporting process comprises accumulating classifying and record ing data fueling the financial reporting business reporting and other reporting subsystems 3 The general ledger process is concerned with preparing external financial state ments ensuring they conform to GAAP generating Web based forms of key finan cial statement and related business reporting via the Internet and supporting the generation of both ad hoc and predetermined business reports 4 A feeder process is any business process that accumulates event data that is then communicated to and processed by the general ledger financial reporting GL BR process 5 The managerial reporting officer is responsible for reporting GAAP financial state 6 The financial reporting officer is primarily responsible for budgeting 7 The controller notifies the business reporting process of investing and financing transaction activities 8 The financial statements contain detailed information of all of an organization s business event data 9 A performance report compares actual results with budgeted expectations ANS T ANS F ANS F ANS T ments ANS F ANS F ANS F ANS F ANS T 10 Often performance reports are part of a managerial reporting system known as a responsibility accounting system 11 A journal voucher is an internal source document used to notify the general ledger to make an accounting entry 12 The general ledger master data contains summarized information of all company 13 An audit trail provides the linkages necessary to trace financial transactions for ward through the general ledger financial reporting GL BR process 14 Balanced scorecard is methodology for assessing an organization s business per formance via four components 1 financial 2 external business process 3 vendors and 4 innovation and improvement activities 15 Business intelligence is the integration of statistical and analytical tools with deci sion support technologies to facilitate complex analyses of data warehouses by managers and decision makers 16 XML is an XBRL based language consisting of a set of tags that are used to unify the presentation of business reporting information into a single format that can be easily read by almost any software package and can be easily searched by web browsers 17 XML is a generic web based language that works on a set of user defined tags to determine the presentation of information on a web site and to provide a key to the tags that can be applied by web users to easily search a given site 18 The intent of Sarbanes Oxley is to protect the company by improving the accu racy and reliability of all disclosures 19 The driving force in constructing a chart of accounts the goal is to add structure to the classification of financial information ANS T ANS T event data ANS T ANS F ANS F ANS T ANS F ANS T ANS F 20 As we move toward an enterprise system environment the chart of accounts be comes increasingly more important 21 When implementing an ERP system it is best to provide all users with access to all menu systems so they can see what is going on within the system MULTIPLE CHOICE 1 The general ledger process comprises all of the following except 2 The business reporting process comprises all of the following except providing information for financial reporting serving the needs of managerial re porting classifying data by general ledger accounts none of the above preparing general purpose external financial statements generating ad hoc and predeter mined business reports for manage ment ensuring that the external financial statements adhere to GAAP none of the above the balance sheet the income statement the standard costing variance report the statement of owner equity changes 3 In contrast to the managerial reporting process the financial reporting process prepares all of the following financial statements except ANS T ANS F ANS F a b c d a b c d a b c d ANS D ANS D ANS C 4 Typically you would expect general ledger updates for financing and investing ac tivities to be fed to the general ledger financial reporting GL BR process by 5 Typically you would expect general ledger updates for periodic adjusting entries e g for depreciation accruals and the like to be fed to the general ledger fi nancial reporting GL BR process by 6 Which of the following individuals should possess the greatest knowledge of the controller the treasurer the chief executive officer CEO one of the AIS feeder systems the controller the treasurer the chief executive officer CEO one of the AIS feeder systems general ledger accounting depart ment manager budgeting department manager financial reporting officer managerial reporting officer general ledger accounting depart ment budgeting department financial reporting officer operating department managers general ledger accounting depart ment budgeting department ANS B ANS A GAAP ANS C ter budgets ANS D a b c d a b c d a b c d a b c d a b 8 Which of the following usually would be responsible for preparing operating cen ter performance reports 7 Which of the following usually would be responsible for preparing operating cen 9 Normally you would expect that operating event data updates would be sent to the general ledger business reporting GL BR process by 10 Performance reports to various cost center profit center and investment center managers are usually sent by 11 Actual and budgeted figures are usually sent to the managerial reporting officer financial reporting officer managerial reporting officer the controller the treasurer the vice president of finance various business feeder processes the controller the treasurer the managerial reporting officer the budgeting department the controller the treasurer the business reporting department the budgeting department the controller the treasurer the business reporting department the managerial reporting officer the financial reporting officer the managerial reporting officer 12 Actual and budgeted figures are usually sent to the budgeting department from ANS C ment to the 13 Adjusted trial balance figures are usually sent from the business reporting depart ANS D ANS D ANS C by ANS C c d a b c d a b c d a b c d a b c d a b 14 Which of the following has responsibilities and expertise to preparing internal re 15
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