BIONG, RISALYN L.

BSA – 5A

CHAPTER 6 MARCH 21, 2020

1. LIST TWO OF THE THREE TRANSACTION CYCLES.

- EXPENDITURE CYCLE
- CONVERSION CYCLE

2. DOCUMENTS THAT ARE CREATED AT THE BEGINNING OF THE

TRANSACTION ARE CALLED __________________________.

- SOURCE DOCUMENTS

3. ______________________________________ ARE THE TWO DATA

PROCESSING APPROACHES USED IN MODERN SYSTEMS.

- BATCH PROCESSING
- REAL TIME PROCESSING

4. GIVE A SPECIFIC EXAMPLE OF A TURN-AROUND DOCUMENT.

- METER CARDS USED TO PRODUCE COLLECTING READINGS FOR GAS

METERS, PHOTOCOPIES, WATER METERS, ETC.

5. EXPLAIN WHEN IT IS APPROPRIATE TO USE SPECIAL JOURNALS.

- USED IN MANUAL ACCOUNTING OR BOOKKEEPING SYSTEM TO REDUCE

THE TEDIOUS TASK OF RECORDING BOTH THE DEBIT AND CREIDT
GENERAL LEDGER ACCOUNT AND AMOUNTS

6. WHAT ARE THE SUBSYSTEMS OF THE REVENUE CYCLE?

- SALES ORDER PROCESSING

- CASH RECEIPTS

7. WHAT ARE THE SUBSYSTEMS OF THE EXPENDITURE CYCLE?

- PURCHASING A/P
- CASH DISBURSEMENTS
- PAYROLL
- FIXED ASSETS

8. NAME FOUR DOCUMENTATION TECHNIQUES.

- NARRATIVES
- FLOWCHARTS
- DIAGRAMS
- OTHER WRITTEN MATERIALS

9. WHY IS THE AUDIT TRAIL IMPORTANT?

- IT HELPS US PROVIDE VISIBILITY OF INFORMATION

- CREATES A SYSTEM TO ACCURATELY REVIEW HISTORICAL SECURITY
AND OPERATIONAL ACTIVITY

10. ONLY FOUR SYMBOLS ARE USED IN DATA FLOW DIAGRAMS. WHAT ARE
THEY?

- EXTERNAL ENTITY
- PROCESS
- DATA STORE
- DATA FLOW

11. WHICH DOCUMENTATION TECHNIQUE DEPICTS DATA RELATIONSHIP IN

DATABASES?

- ENTITY RELATIONSHIP DIAGRAM ALSO KNOWN AS ERD, IS A STRUCTURAL

DIAGRAM THAT IS USED FOR DATABASE DESIGN.

12. IN ONE SENTENCE, WHAT DOES UPDATING A MASTER FILE RECORD

INVOLVE?

- UPDATING A MASTER FILE INVOLVES CHANGING THE VALUE OF ONE OR

MORE OF ITS VARIABLE FIELDS TO REFLECT THE EFFECTS OF A
TRANSACTION.

13. WHAT IS DESTRUCTIVE UPDATE?

- IT INVOLVES REPLACING AN OLD DATA VALUE WITH A NEW VALUE AND

THUS DESTROYING THE ORIGINAL.

14. LIST, IN ORDER, THE STEPS IN THE FINANCIAL ACCOUNTING PROCESS.

- IDENTIFYING TRANSACTIONS AND EVENTS

- ANALYZING BUSINESS TRANSACTIONS
- RECORDING IN THE JOURNALS
- POSTING TO THE LEDGER
- UNADJUSTED TRIAL BALANCE
- ADJUSTING ENTRIES
- ADJUSTED TRIAL BALANCE
- FINANCIAL STATEMENTS
- CLOSING ENTRIES
- POST-CLOSING TRIAL BALANCE
- REVERSING ENTRIES

15. LIST TWO DUTIES THAT THE GENERAL LEDGER CLERK SHOULD NOT
PERFORM.

- MAKE ENTRIES IN SPECIAL JOURNALS OR SUBSIDIARY LEDGERS

- PREPARE JOURNAL VOUCHERS AND MAINTAIN CUSTODY OF PHYSICAL
ASSETS

16. EXPLAIN THE PURPOSE AND CONTENTS OF THE GENERAL LEDGER

MASTER FILE.

- MAINTAINS A SET OF INDIVIDUAL RECORDS, EACH OF THESE RECORDS

POSSESS DETAILED INFORMATION FOR A SPECIFIC ACCOUNT FOR A
SPECIFIC GENERAL LEDGER.

17. WHAT IS XML?

- STANDS FOR EXTENSIBLE MARKUP LANGUAGE

- A SOFTWARE AND HARDWARE INDEPENDENT TOOL FOR STORING AND
TRANSPORTING DATA

18. WHY DO MANY FIRMS NO LONGER USE A GENERAL JOURNAL? WHAT

HAS TAKEN ITS PLACE?

- MANY FIRMS HAVE REPLACED A TRADITIONAL GENERAL JOURNAL WITH

A JOURNAL VOUCHER SYSTEM. EACH ENTRY IS DOCUMENTED ON A
PRENUMBERED JOURNAL VOUCHER WHICH CONTAINS ADDITIONAL
INFORMATION, SUCH AS AUTHORIZATION, WHICH ENHANCES CONTROL.
A VOUCHER MAY CONTAIN INFORMATION ON A NUMBER OF RELATED
TRANSACTIONS.

19. WHAT ARE THE MAJOR EXPOSURES IN THE GENERAL

LEDGER/FINANCIAL REPORTING SYSTEM?

- THE PRIMARY EXPOSURED ARE: A DEFECTIVE OR LOST AUDIT TRAIL,

UNAUTHORIZED ACCESS, GL ACCOUNTS OUT OF BALANCE WITH
SUBSIDIARY LEDGER ACCOUNTS, AND INCORRECT ACCOUNT BALANCES
DUE TO UNAUTHORIZED OR INCORRECT ENTRIES.

20. WHY IS THE AUDIT TRAIL NECESSARY?

- HELPS TO PROVIDE VISIBILITY INTO THE INFORMATION

- CREATES A SYSTEM TO ACCURATELY REVIEW HISTORICAL SECURITY
AND OPERATIONAL ACTIVITY
- IMRPOVE THE WAY INFORMATION IS STORED
- SECURE AUTHORIZED ACCESS TO IT