Accounting Information Systems The Crossroads of Accounting And IT 2nd Edition - Test-Bank

Accounting Information Systems The Crossroads of Accounting And IT 2nd Edition – Test-Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Accounting Information Systems, 2e (Kay/Ovlia)

Chapter 5   Business Processes: Purchasing, Sales, and Payroll Cycles

 

Objective 1

 

1) In a gap analysis, the gap between the baseline modules and the customization required to meet enterprise-specific needs is analyzed.

Answer:  TRUE

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

2) The advantage to the stages approach to customizing an accounting system is that the new system goes “live” all at once.

Answer:  FALSE

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

3) A disadvantage to the stages approach to customizing an accounting system is time line for the project may seem prolonged.

Answer:  TRUE

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

4) The stages approach to customization involves customizing and installing customer, vendor, employee, and remaining modules for the entire enterprise at the same time.

Answer:  FALSE

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

5) When customizing an accounting system, order in which work is performed must be considered.

Answer:  TRUE

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

6) Programming to customize the baseline system carry forward into later versions, saving some enterprises millions of dollars for customizations that do not need to be abandoned or redone.

Answer:  FALSE

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

7) Each step in the business process and workflow must be documented.

Answer:  TRUE

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

8) As business processes for a new system are planned, workflow management is not considered.

Answer:  FALSE

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

9) Customizing a baseline accounting system can prove costly with unexpected cost overruns and delays.

Answer:  TRUE

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

10) By changing business processes to match the baseline system, a company can expect to increase the need for custom programming.

Answer:  FALSE

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

11) A ________ identifies the differences between the baseline modules and the customization required to meet enterprise-specific needs.

Answer:  gap analysis

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

12) The ________ approach to customization involves customizing and installing customer, vendor, employee, and remaining modules for the entire enterprise at the same time.

Answer:  Big bang

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

13) The biggest disadvantage to the ________ approach is that the new system goes live all at once.

Answer:  Big bang

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

14) The enormity of installing an enterprise system for a huge enterprise can be overwhelming in terms of resources and ________.

Answer:  logistics

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

15) The ________ approach customizes one module or geographic location at a time, stage by stage, until the entire enterprise has been converted to the new system.

Answer:  Stages

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

16) The advantage to the ________ approach is the ability to test and resolve issues on a smaller scale.

Answer:  Stages

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

17) The disadvantage to the ________ approach is that the time line for such a project may seem prolonged.

Answer:  Stages

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

18) Whether you use the big bang or stages approach when customizing an accounting system, ________ must be considered.

Answer:  workflow

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

19) ________ provides a workflow management system that automatically forwards documents to the next user in the workflow.

Answer:  Enterprise software

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

20) Each step in the business process and workflow must be documented using a(n) ________.

Answer:  business process map

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

21) A system that automates workflow by automatically forwarding the electronic document to the next step in the business process is called a ________.

Answer:  workflow management system

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

22) A gap analysis is done to

1. A) Identify the company’s current business processes
2. B) Help employees adjust to the new system
3. C) Compare the baseline accounting system to the customized accounting system that meets the company’s needs
4. D) Conform business processes to regulatory requirements

Answer:  C

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

 

23) The customization approach that involves customizing one module at a time is called

1. A) Gap analysis
2. B) Stages
3. C) Workflow management
4. D) Big bang

Answer:  B

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

24) The customization approach that involves the system going “live” all at once is called

1. A) Gap analysis
2. B) Stages
3. C) Workflow management
4. D) Big bang

Answer:  D

Diff: 1

Objective:  Q5.1 How do I customize an accounting system?

 

25) What is the big bang approach to customizing an accounting system? What are the advantages and disadvantages?

Answer:  The big bang approach to customization involves customizing and installing customer, vendor, employee, and remaining modules for the entire enterprise at the same time. The advantage to this approach is that the new system goes ‘live’ all at once.

 

This is also the biggest disadvantage. The enormity of installing an enterprise system for a huge enterprise can be overwhelming in terms of resources and logistics. If there are unresolved issues when the entire system goes live, it can be crippling for the enterprise. When using the big bang approach, timing of the implementation can play a crucial role in its success. Troubleshooting a complex new system implementation may take weeks.

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

26) What is the stages approach to customizing an accounting system? What are the advantages and disadvantages?

Answer:  This approach permits developers to pilot the modules, testing and resolving issues before moving to the next stage. There are advantages and disadvantages to this approach as well. One advantage is the ability to test and resolve issues on a smaller scale, one stage at a time. The disadvantage is that the time line for such a project may seem prolonged.

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

 

 

27) What is a workflow management system? Provide an example.

Answer:  A workflow management system automates the workflow, automatically forwarding the electronic document to the next step in the business process.

 

For example, many colleges and universities have installed enterprise software with automated workflow management systems. A purchase order may be authorized electronically by the marketing department chairperson. The electronic purchase order is then automatically forwarded to the next step in the business process, review by the business school dean. When the dean logs in, he or she is notified of any items that require attention, such as the pending purchase order awaiting approval. The dean then electronically approves the pending purchase, and the purchase order is automatically forwarded to the next step in the workflow, the purchasing department.

Diff: 2

Objective:  Q5.1 How do I customize an accounting system?

Objective 2

 

1) When data flow is shown going into or from a database table, data will be entered, updated, and retrieved using database field contents within the table.

Answer:  TRUE

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

2) A database designer or other IT professional, may want to put the customer balance as a field in the Sales Receipts table to speed up retrieval.

Answer:  FALSE

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

3) One advantage to using ________ is simplicity.

Answer:  flowchart notation

Diff: 3

Objective:  Q5.2 How do I customize the sales cycle?

 

4) As business processes for a new system are planned, ________ management is also considered.

Answer:  workflow

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

5) When ________ is shown going into or from a database table, data will be entered, updated, and retrieved using database field contents within the table.

Answer:  data flow

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

 

Nice Lawn Sales Narrative

 

Nice Lawn sells lawn ornaments online to other businesses. Nice Lawn customers place an online order. Nice Lawn processes the customer order by verifying with the accounting department that the customer’s credit is in good standing with the company (the customer’s account is paid on time). The items are verified for availability. Shipping is authorized. The warehouse packages the items and sends them to the customer. The warehouse notifies the accounting department the items were shipped. An invoice is generated from the sales information and emailed to the customer.

 

6) What are the pools and swim lanes in the Nice Lawn Sales Narrative?

1. A) Swim lanes: Customer, Accounting, Warehouse, Data; Pool: Nice Lawn
2. B) Swim lanes: Customer, Credit Card Company, Warehouse; Pool: Data
3. C) Swim lanes: Bank, Warehouse, Credit Card Company; Pool: Credit Card Company and Data
4. D) Swim lanes: Nice Lawn, Bank, Warehouse, Data; Pool: Bank

Answer:  A

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

7) What are the activities in the Nice Lawn Sales Narrative?

1. A) Verify customer’s credit, Authorize shipping, Verify item availability, Generate invoice
2. B) Verify customer’s credit, Verify item availability, Update the database tables, Generate invoice
3. C) Process customer order, Authorize shipping, Package items, Ship items, Notify Accounting items shipped, Generate invoice
4. D) Receive customer’s order, Verify customer’s credit, Ship items, Notify Accounting items shipped, Generate invoice, Update database tables

Answer:  C

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

8) What are the datastores (database tables) in the Nice Lawn Sales Narrative?

1. A) Item, Sales Order, Vendor, Sales Order Line
2. B) Customer, Item, Sales Order, Sales Order Line
3. C) Customer, Vendor, Invoice
4. D) Customer, Price, Item, Invoice, Invoice Line

Answer:  B

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

 

9) What are the decision points in the Nice Lawn Sales narrative?

1. A) Verify Customer Identity, Verify Item Availability, Verify Customer Credit
2. B) Verify Customer Purchase Verify Item Availability, Verify Shipping
3. C) Verify Customer Identity, Verify Shipping Authorization, Verify Customer Address
4. D) Verify Customer Identity, Verify Package Items, Verify Customer Address

Answer:  A

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

10) When recording a customer payment, which table is usually NOT used?

1. A) Customer table
2. B) Cash Receipts table
3. C) Sales Order table
4. D) Sales Order Line table

Answer:  B

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

11) When depositing a customer payment, which table is usually NOT used?

1. A) Cash Account table
2. B) General Ledger table
3. C) Sales Order table
4. D) Customer table

Answer:  C

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

Spice House Receive Customer Payment BPMN

 

 

12) List the activities in the Spice House Receive Customer Payment BPMN diagram.

Answer:  Receive Shipping Notice

Process Credit Card

Verify Credit Card

Record Payment

Send Customer Receipt

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

13) List the gateways in the Spice House Receive Customer Payment BPMN diagram.

Answer:  Is credit verified?

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

14) List the database tables in the Spice House Receive Customer Payment BPMN diagram.

Answer:  Customer Table

Sales Order Table

Sales Order Line Table

Sales Receipts Table

Accounts Receivable Table

Undeposited Funds Table

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

15) Create a business process map organizer for Spice House Receive Customer Payment BPMN diagram.

Answer:

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

Books Ga’Lore! Cash Sales Narrative

 

Books Ga’Lore! sells books online and at retail stores. When a customer makes a cash purchase at a retail store, an employee generates a sales receipt and gives customer the receipt and items.

 

Books Ga’Lore! uses the following database tables: Customer, Vendor, Inventory, Invoice, Invoice Line, Undeposited

Funds

 

16) Annotate the Books Ga’Lore! Cash Payment narrative.

Answer:

 

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

17) Create a flowchart for the Books Ga’Lore! Cash Sale narrative.

Answer:

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

18) Create a business process map organizer table for the Books Ga’Lore! Cash Sale narrative.

Answer:

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

19) Create a BPMN diagram for the Books Ga’Lore! Cash Sale narrative.

Answer:

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

Books Ga’Lore! Online Payment Deposit Narrative

 

To deposit online payment deposits, Books Ga’Lore! sends a request for a daily credit card batch summary file to the credit card company at a scheduled time. The credit card company sends the file and transfers the funds to Books Ga’Lore!’s checking account. Books Ga’Lore! receives the batch file. The bank records the deposit in Books Ga’Lore!’s checking account. Books Ga’Lore! verifies the credit card batch summary file matches the customer payments and then records the deposits.

 

Books Ga’Lore! uses the following database tables: Customer, Accounts Receivable, Undeposited Funds, Cash Receipts, Checking Account, General Ledger

 

20) Annotate the Books Ga’Lore! Online Payment Deposit narrative.

Answer:

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

21) Create a flowchart for the Books Ga’Lore! Online Payment Deposit narrative.

Answer:

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

22) Create a business process map organizer for the Books Ga’Lore! Online Payment Deposit narrative.

Answer:

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

23) Create a BPMN diagram for the Books Ga’Lore! Online Payment Deposit narrative.

Answer:

Diff: 2

Objective:  Q5.2 How do I customize the sales cycle?

 

Spice House Receive Customer Payment BPMN

 

 

24) List the activities in the Spice House Receive Customer Payment BPMN diagram.

Answer:  Receive Shipping Notice

Process Credit Card

Verify Credit Card

Record Payment

Send Customer Receipt

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

25) List the data object(s) in the Spice House Receive Customer Payment BPMN diagram.

Answer:   Notification, Receipt

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

26) List the gateway(s) in the Spice House Customer Payment BPMN diagram.

Answer:  Is credit verified?

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

27) List the swim lane(s) and pool(s) in the Spice House Customer Payment BPMN diagram.

Answer:  Swim lanes: Accounting, Data; Pool: Customer, Spice House, Credit card company

Diff: 1

Objective:  Q5.2 How do I customize the sales cycle?

 

Objective 3

 

1) Computer software may be programmed to run at a specific time each day to perform a task, such as, checking inventory stock levels.

Answer:  TRUE

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

2) When a bill is paid, the accountant’s personal checking account is reduced for the amount of the payment.

Answer:  FALSE

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

3) The Purchase Order Line table is an intersection table required to eliminate the many-to-many relationship between the Purchase Order table and the Item table.

Answer:  TRUE

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

4) The purchase order is sent to the vendor. The enterprise does not keep a copy.

Answer:  FALSE

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

5) Database tables are updated when a purchase order is created.

Answer:  TRUE

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

6) Typically, vendors mail the bill separately from the items shipped.

Answer:  TRUE

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

7) Typically, the vendor module consist of the ________, ________, ________ components.

Answer:  Create purchase order, Receive items, Enter bills

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

 

8) A ________ is a document that lists items to be ordered, quantity, vendor information, and the date.

Answer:  purchase order

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

9) The document that lists all the items delivered and is included with the items is called a ________.

Answer:  packing slip

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

10) The Create Purchase Orders, Receive Items, and Enter Bills are in which baseline accounting system?

1. A) Reporting
2. B) Customer
3. C) Banking
4. D) Vendor

Answer:  D

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

11) Which table would be used when processing a purchase order?

1. A) Customer table
2. B) Employee table
3. C) Item table
4. D) Invoice Line table

Answer:  C

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

12) When receiving inventory, which table is usually NOT used?

1. A) Cash Account table
2. B) Purchase Order table
3. C) Vendor table
4. D) Item table

Answer:  A

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

 

Nice Lawn Purchase Narrative

 

Nice Lawn needs to purchase more copper to make lawn ornaments. Nice Lawn creates an order sends it to the copper vendor online. When Nice Lawn receives the copper shipment, the receiving department verifies the order is correct. The copper is recorded on the receiving report and in the accounting system. Nice Lawn receives a bill. The bill is cross checked with the purchase order and the receiving report; then entered into the accounting system.

 

13) The Nice Lawn Purchase Narrative includes how many components of the purchasing cycle?

1. A) 1
2. B) 2
3. C) 3
4. D) 4

Answer:  C

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

14) In the create purchases order component of the Nice Lawn Purchase Narrative, what are the pools and swim lanes?

1. A) Swim lanes: Data, Warehouse, Accounting, Customer; Pool: Vendor
2. B) Swim lanes: Data, Purchasing, Accounting, Vendor, Credit Card Company; Pool: Nice Lawn
3. C) Swim lanes: Data, Warehouse, Accounting, Vendor; Pool: Credit Card Company
4. D) Swim lanes: Data, Purchasing, Accounting, Vendor; Pool: Nice Lawn

Answer:  D

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

15) In the create purchases order component of the Nice Lawn Purchase Narrative, what are the database tables?

1. A) Item table, Vendor table, Purchase Order table, Purchase Order Line table, Employee table
2. B) Item table, Customer table, Invoice Order table, Invoice Order Line table, Employee table
3. C) Item table, Address table, Purchase Order table, Purchase Order Line table, Employee table
4. D) Item table, Vendor table, Purchase Order table, Accounts Payable table

Answer:  A

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

16) In the receive items component of the Nice Lawn Purchase Narrative, what are the pools and swim lanes?

1. A) Swim lanes: Data, Warehouse, Accounting, Customer; Pool: Vendor
2. B) Swim lanes: Data, Warehouse, Accounting, Vendor; Pool: Credit Card Company
3. C) Swim lanes: Data, Purchasing, Accounting, Vendor; Pool: Nice Lawn
4. D) Swim lanes: Data, Warehouse, Purchasing, Vendor; Pool: Vendor

Answer:  C

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

17) In the receive items component of the Nice Lawn Purchase Narrative, what are the database tables?

1. A) Item table, Vendor table, Purchase Order table, Purchase Order Line table, Accounts Receivable table
2. B) Item table, Vendor table, Purchase Order table, Purchase Order Line table
3. C) Item table, Vendor table, Purchase Order table, Purchase Order Line table, Accounts Payable table
4. D) Item table, Customer table, Purchase Order table, Purchase Order Line table, Accounts Receivable table

Answer:  B

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

18) In the enter bills component of the Nice Lawn Purchase Narrative, what are the database tables?

1. A) Item table, Vendor table, Purchase Order table, Purchase Order Line table, Accounts Payable table, Employee table
2. B) Item table, Vendor table, Purchase Order table, Purchase Order Line table, Accounts Receivable table, Employee table
3. C) Item table, Customer table, Invoice table, Invoice Line table, Accounts Receivable table
4. D) Item table, Customer table, Purchase Order table, Purchase Order Line table, Accounts Receivable table

Answer:  A

Diff: 1

Objective:  Q5.3 How do I customize the purchasing cycle?

 

Spice House Purchase Order Narrative

 

On Monday of each week, a Spice House employee checks inventory using an inventory report. For items that are low, the employee processes a purchase order. The manager reviews and authorizes the purchase order.

 

The Spice House database tables: Employee, Customer, Vendor, Purchase Order, Purchase Order Line, Item, Invoice, Invoice Line, Accounts Payable, Accounts Receivable

 

19) Annotate the Spice House Purchase Order narrative.

Answer:

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

20) Create a flowchart for the Spice House Purchase Order narrative.

Answer:

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

21) Create a business process map organizer for the Spice House Purchase Order narrative.

Answer:

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

22) Create a BPMN diagram for the Spice House Purchase Order narrative.

Answer:

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

Spice House Enter Bills from Vendors Narrative

 

Vendors send bills to Spice House.When Spice House receives a bill from a vendor, the bill is matched to the purchase order and receiving report. Once the bill is verified, it is recorded in the accounting system.

 

The Spice House database tables: Employee, Customer, Vendor, Purchase Order, Purchase Order Line, Item, Invoice, Invoice Line, Accounts Payable, Accounts Receivable

 

23) Annotate the Spice House Enter Bills from Vendors narrative.

Answer:

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

24) Create a flowchart for the Spice House enter Bills from Vendors narrative.

Answer:

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

25) Create a business process map organizer for the Spice House Enter Bills from Vendors narrative.

Answer:

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

26) Create a BPMN diagram for the Spice House Enter Bills from Vendors narrative.

Answer:

Diff: 2

Objective:  Q5.3 How do I customize the purchasing cycle?

 

Objective 4

 

1) The banking module includes transactions that relate to the payroll cycle.

Answer:  TRUE

Diff: 1

Objective:  Q5.4 How do I customize the payroll cycle?

 

2) Payroll ________ are paid to the appropriate governmental agencies or entities.

Answer:  liabilities

Diff: 1

Objective:  Q5.4 How do I customize the payroll cycle?

 

3) The ________ module consists of transactions related to payroll.

Answer:  Employee

Diff: 1

Objective:  Q5.4 How do I customize the payroll cycle?

 

Nice Lawn Calculate Payroll Narrative

 

Nice Lawn has an automated process for calculating payroll. On the appropriate date, the accounting system automatically calculates the gross pay, withholdings, and net pay for each employee. A Nice Lawn accountant then verifies the payroll before authorizing the pay. After the review, the accountant authorizes the payroll.

 

4) What are the activities in the Nice Lawn Calculate Payroll narrative?

1. A) Calculate Gross Pay, Calculate Withholdings, Calculate Net Pay, Authorize Payroll, Distribute Pay
2. B) Calculate Gross Pay, Calculate Withholdings, Calculate Net Pay, Review Payroll for Authorization, Resolve Issues, Authorize Payroll
3. C) Calculate Gross Pay, Calculate Withholdings, Calculate Net Pay, Authorize Payroll, Pay Liabilities
4. D) Calculate Gross Pay, Calculate Expenses, Calculate Net Pay, Distribute Pay, Pay Liabilities

Answer:  B

Diff: 1

Objective:  Q5.4 How do I customize the payroll cycle?

 

5) What are the gateway(s) in the Nice Lawn Calculate Payroll narrative?

1. A) Verify liabilities
2. B) Verify expenses
3. C) Verify payroll
4. D) Verify net pay

Answer:  C

Diff: 1

Objective:  Q5.4 How do I customize the payroll cycle?

 

6) What are the swim lanes(s) and pool(s) in the Nice Lawn Calculate Payroll narrative?

1. A) Swim lanes: Accounting, Data; Pool: Nice Lawn
2. B) Swim lanes: Accounting, Employee, Data; Pool: Nice Lawn
3. C) Swim lanes: Accounting, Employee, Data, Government; Pool: Nice Lawn
4. D) Swim lanes: Accounting, Data, IRS, FICA; Pools: Nice Lawn, Government

Answer:  A

Diff: 1

Objective:  Q5.4 How do I customize the payroll cycle?

 

Nice Lawn Pay Employees Narrative

 

At a scheduled time, a Nice Lawn account processes the payroll payment processing. Payroll is retrieved from the appropriate database tables and the direct deposit process runs. Employees are required to use direct deposit and receive pay stubs. (The accountant verifies payroll calculations are verified in the calculate payroll liabilities process.) The bank processes the payments to the employees.

 

Nice Lawn uses the following database tables: Employee, Payroll Liabilities, Cash Payments, Checking Account, Expenses

 

7) Annotate the Nice Lawn Pay Employees narrative.

Answer:

Diff: 2

Objective:  Q5.4 How do I customize the payroll cycle?

 

8) Create a flowchart for the Nice Lawn Pay Employees narrative.

Answer:

Diff: 2

Objective:  Q5.4 How do I customize the payroll cycle?

 

9) Create a business process map organizer for the Nice Lawn Pay Employees narrative.

Answer:

Diff: 3

Objective:  Q5.4 How do I customize the payroll cycle?

 

10) Create a BPMN diagram for the Nice Lawn Pay Employees narrative.

Answer:

Diff: 2

Objective:  Q5.4 How do I customize the payroll cycle?

 

Nice Lawn Pay Payroll Liabilities Narrative

 

At a scheduled time, the pay payroll liabilities process for Nice Lawn automatically initiates based on the due dates of the specific payroll liability. When the process begins, the payroll liabilities are processed. A Nice Lawn account reviews the liabilities for authorization. After reviewing the liabilities, the accountant authorizes payment. Payment is sent electronically; the tax forms are completed and sent to the appropriate governmental agency. The payroll liabilities are recorded.

 

Nice Lawn uses the following database tables: Employee, Payroll Liabilities, Cash Payments, Checking Account, Expenses, Accounts Payable

 

11) Annotate the Nice Lawn Pay Payroll Liabilities narrative.

Answer:

Diff: 3

Objective:  Q5.4 How do I customize the payroll cycle?

 

12) Create a flowchart for the Nice Lawn Pay Payroll Liabilities narrative.

Answer:

Diff: 1

Objective:  Q5.4 How do I customize the payroll cycle?

 

13) Create a business process map organizer for the Nice Lawn Pay Payroll Liabilities narrative.

Answer:

Diff: 1

Objective:  Q5.4 How do I customize the payroll cycle?

 

14) Create a BPMN diagram for the Nice Lawn Pay Payroll Liabilities narrative.

Answer:

Diff: 1

Objective:  Q5.4 How do I customize the payroll cycle?

 

Objective 5

 

1) Business process maps can also be used to document processes for correcting and closing entries.

Answer:  TRUE

Diff: 1

Objective:  Q5.5 How do I customize the financial cycle?

 

2) The ________ module consists of other events and transactions that do not fall into the vendor, customer, employee, or banking modules.

Answer:  Financial

Diff: 1

Objective:  Q5.5 How do I customize the financial cycle?

 

3) The financial modules usually includes the following activities EXCEPT

1. A) Make correcting entries
2. B) Make adjusting entries
3. C) Make closing entries
4. D) Pay interest expense

Answer:  D

Diff: 1

Objective:  Q5.5 How do I customize the financial cycle?

 

4) What activities are usually included in the financial module?

Answer:

– Adjusting entries to bring accounts up to date.

–  Correcting entries necessary to correct errors.

–  All entries needed to close temporary Income and Expense accounts at year end.

–  All maintenance tasks necessary to maintain the enterprise’s general ledger of accounts.

–  All other transactions and entries needed to properly maintain and operate the accounting system.

Diff: 1

Objective:  Q5.5 How do I customize the financial cycle?

 

5) Annotate the Nice Lawn Adjusting Entries narrative.

Answer:

Diff: 1

Objective:  Q5.5 How do I customize the financial cycle?

 

 

Nice Lawn Adjusting Entries Narrative

 

When it is time for Nice Lawn to make adjusting entries, the accountant generates the Trial Balance. The accountant verifies the credits equal the debits. Then adjustments are calculated. The adjusting entries are recorded and an Adjusted Trial Balance is created. The accountant verifies the credits still equal the debits and approves the Trial Balance for Financial Statement process.

 

Nice Lawn uses the following database tables: General Ledger, Temporary Account, Expenses, Liabilities

 

 

6) Create a flowchart for the Nice Lawn Adjusting Entries narrative.

Answer:

Diff: 1

Objective:  Q5.5 How do I customize the financial cycle?

 

 

7) Create a business process mapping object for the Nice Lawn Adjusting Entries narrative.

Answer:

Diff: 1

Objective:  Q5.5 How do I customize the financial cycle?

8) Create a BPMN diagram for the Nice Lawn Adjusting Entries narrative.

Answer:

Diff: 1

Objective:  Q5.5 How do I customize the financial cycle?