AC 731 Final Exam Questions and Answers

Which document typically represents the same phenomena as the labor acquisition (economic increment) event? a) Payroll register b) Operations list c) Timecard d) Schedule - ANSWER c The payroll process represent ...

Which document typically represents the same phenomena as the labor acquisition (economic increment) event? a) Payroll register b) Operations list c) Timecard d) Schedule - ANSWER c The payroll process represents the point of contact between the enterprise and which set of external business partners? a) Investors and Creditors b) Suppliers c) Customers d) Employees - ANSWER d The resource made available by the payroll process to the conversion process in a typical enterprise value chain is: a) Inventory b) Property, plan and equipment c) Labor d) Cash - ANSWER c Which classes are usually paired in a stockflow association in the payroll process? a) Labor acquisition and Employee b) Labor type and Schedule c) Cash and Cash Disbursement d) Employee and Supervisor - ANSWER c Which of these documents the commitment of the enterprise to receive an employee's labor in a future time period? a) Employee schedule b) Labor acquisition c) Cash budget d) Cash disbursement - ANSWER a The payroll process is in essence a special case of which other business process? a) Acquisition b) Conversion c) Financing d) Revenue - ANSWER a What is true about an enterprise's use of an imprest checking account? a) Paychecks are usually written from the regular checking account, not the imprest account b) The imprest account normally maintains a zero balance c) A negative balance in the imprest account indicates that some employees are not cashing their paychecks d) A positive balance in the imprest account usually means a mistake occurred - ANSWER b In which business process are employees most likely to play an outside participation role for some events? a) Acquisition b) Conversion c) Payroll d) Revenue - ANSWER c In a payroll process, what type of event does a direct deposit notification typically document? a) Commitment b) Instigation c) Economic increment d) Economic decrement - ANSWER d Which payroll process event often doesn't specify related individual employees? a) Staffing plan b) Employee schedule c) Labor acquisition d) Cash disbursement - ANSWER a Which kind of association in a conversion process reveals why the enterprise uses up materials, labor and equipment? a) Duality b) Stockflow c) Fulfillment d) Reservation - ANSWER a In the REA ontology, a relationship in which an enterprise trades one or more resources for one or more different resources is called a(n) _______ duality association. a) Transformation b) Trade c) Exchange d) Transfer - ANSWER c Which is NOT an economic decrement event in the conversion cycle? a) Production run b) Material issuance c) Labor operation d) Machine operation - ANSWER a Which statement is FALSE regarding labor operations in a conversion process? a) Labor Operations are the actual using up of labor b) Labor Type is a resource-type class that represents the types of labor that can be performed in the labor operations c) When they are measured and recorded, labor operations are usually documented on move tickets, which serve as identifiers for the labor operations events d) Labor operation are economic decrement events - ANSWER c What association connects commitment events to each other? a) Linkage b) Reciprocal c) Custody d) Reservation - ANSWER b What resource does the payroll process typically provide to the the conversion process? a) Cash b) Labor c) Machinery d) Raw materials - ANSWER b Which business process typically includes an event called Material Issuance? a) Acquisition b) Payroll c) Conversion d) Revenue - ANSWER c On which class or association should one focus to answer the question of when the most recent material requisition occurred? a) Material Requisition event b) Material Issuance event c) Fulfillment relationship between Material Requisition and Material Issuance d) Stockflow relationship between Material Issuance and Raw Materials - ANSWER a A conversion process custody association most likely connect which two classes? a) Cash and Cashier b) Materials Inventory and Inventory Clerk c) Materials Inventory and Production Run d) Inventory Clerk and Material Issuance - ANSWER b Where are conversion process activities illustrated in an enterprise value system model? a) In the resource flows between the enterprise and its investors and creditors b) In the resource flows between the enterprise and its suppliers c) In the resource flows between the enterprise and its employees d) They aren't - conversion is an internal process within the enterprise - ANSWER d To make a query that finds the date of the most recent material requisition, on which class or association should one focus? a) Material requisition event class b) Material issuance event class c) Fulfillment association between material requisition and material issuance d) Reservation association between material requisition and raw materials - ANSWER a Using the tables in Exhibit 14-1 (pg. 441-452), identify the quantity of shortening that a recipe would require to make a batch of 12 snickerdoodles. a) 0.5 cup b) 0.67 cup c) 0.5 teaspoon d) 1 cup - ANSWER b Using the tables in Exhibit 14-1 (pg. 441-452), what total quantity of flour was issued into production on 7/15/2020 (for all cookie types produced that day)? a) 7 cups b) 8 cups c) 10.67 cups d) 15 cups - ANSWER d Using the tables in Exhibit 14-1 (pg. 441-452), how much total time did Ethel spend mixing moist ingredients on 7/15/2020? a) 30 seconds b ) 4 minutes c) 5 minutes d) 10 minutes - ANSWER d Using the tables in Exhibit 14-1 (pg. 441-452), how many types of ingredients are needed to make frosted sugar cookies with candy sprinkles? a) 16 b) 9 c) 18 d) 11 - ANSWER b Using the tables in Exhibit 14-2 (pg. 460-466), how many different types of labor were requisitioned of LR2? a) 2 b) 4 c) 6 d) 8 - ANSWER b Using the tables in Exhibit 14-2 (pg. 460-466), which labor types have standard hourly wage rates < $10? a) CT1 and CT2 b) CT1 and US3 c) AP1 d) CT1, CT2 and US3 - ANSWER b Using the tables in Exhibit 14-2 (pg. 460-466), for how many hours is Joe Thompson scheduled from April 8 to April 14, 2020? a) 35 b) 75 c) 80 d) 0 - ANSWER d Using the tables in Exhibit 14-2 (pg. 460-466), what is the balance of wages payable at the end of the day on April 7, 2020? a) $2,172.00 b) $1,406.36 c) $765.64 d) $0 - ANSWER a Using the tables in Exhibit 14-2 (pg. 460-466), did the company come in under or over budget for labor schedule LS2? a) Under budget by $28.80 b) Over budget by $28.80 c) Over budget by $7.20 d) Under budget by $7.20 - ANSWER b Which document typically represents the same phenomena as the cash receipt (economic increment) event? a) Disbursement voucher b) Deposit slip c) Stock certificate d) Promissory note - ANSWER b The financing process represents the point of contact between the enterprise and which set of external business partners a) Investors and creditors b) Suppliers c) Customers d) Employees - ANSWER a The resource made available by the Finance process to the Payroll process in a typical enterprise value chain is: a) Finished goods inventory b) Machinery and equipment c) Labor d) Cash - ANSWER d Which of the following entities are usually paired in a stockflow relationship in the Finance process? a) Cash Receipt and Employee b) Cash and Debt Financing Agreement c) Cash and Cash Receipt d) Stock Issuance and Cash Receipt - ANSWER c Which of the following events reflects the commitment of the enterprise to receive and to repay cash provided by a creditor? a) Debt Financing Agreement b) Dividend Declaration c) Cash requisition d) Cash disbursement - ANSWER a What is the primary economic increment event in the payroll business process? a) Staffing Plan b) Labor Schedule c) Labor Acquisition d) Cash Disbursement e) Cash Receipt - ANSWER c What is the mutual commitment event when an enterprise and a business partner have each agreed to exchange specific quantities of resources at a defined future time? a) Labor schedule b) Staffing plans c) Labor requisitions d) Payments to employees e) Production Run - ANSWER a As time passes, if the imprest account balance is positive, that indicates: a) Employees are cashing their payments b) Employees are not cashing their paychecks c) Not enough information to tell if employees are cashing their paychecks or not d) A mistake likely occurred e) Nothing - ANSWER b As time passes, if the imprest account balance becomes negative, that indicates: a) Employees are cashing their payments b) Employees are not cashing their paychecks c) Not enough information to tell if employees are cashing their paychecks or not d) A mistake likely occurred e) Nothing - ANSWER d What process typically does not include reversal events a) Financing Process b) Payroll Process c) Conversion Process d) Revenue Process e) None of the above - ANSWER b Which of the following is correct in regard to the mutual commitment event of the payroll process? a) The event includes a Labor Acquisition and Cash Disbursement b) The event is the Labor Acquisition c) The event is the Labor Schedule d) The event is the initial hiring of an employee e) The event only involves a commitment made by the employee to work - ANSWER c Which of the following cycles include employees? I. Revenue Cycle II. Purchasing Cycle III. Human Resources Cycle IV. Financing Cycle V. Conversion Cycle a) III only b) V only c) III and V d) I, II, III, and V e) I, II, III, IV, and V - ANSWER e What kind of event is Materials Issuance? a) Economic Increment Event b) Economic Decrement Event c) Economic Transfer Event d) Reservation Event e) Commitment Event - ANSWER b Which type of bank account is commonly used by companies to cover payroll? a) Savings Account b) Lifeline Checking Account c) Business Checking Account d) Imprest Checking Account e) Certificate of deposit - ANSWER d Which of the following is the correct match of conversion cycle events and their type? a) Economic decrement and cash disbursement b) Economic decrement and production order c) Commitment event and material issuance d) Economic decrement event and production run e) Commitment event and material requisition - ANSWER e What is another commonly used bank account to cover payroll? a) Lifeline Checking Account b) Business Checking Account c) Savings Account d) Regular Checking Account - ANSWER d In the payroll business process, the relationship between the resource Cash Account and event Labor Schedule is known as: a) Stockflow b) Proposition c) Reservation d) Participation e) Fulfillment - ANSWER c All of the following are events in the payroll business process except: a) Labor Schedule b) Labor Acquisition c) Cash Disbursement d) Cash Receipt e) Labor Requisition - ANSWER d In the conversion cycle, associations between finished goods and raw materials can be represented by: a) Linkage Queries b) Participation Queries c) Reservation Queries d) Fulfillment Queries e) Agent Queries - ANSWER a Which of the following cycles has transformation duality associations? a) Payroll b) Conversion c) Acquisition d) Sales e) Financing - ANSWER b Which of the following are economic decrement events in the conversion cycle? I. Labor Operation II. Machine Operation III. Labor Requisition IV. Production Run V. Material Issuance a) I and II b) III and V c) I, II, and V d) I, II, III, IV, and V e) I, III, and IV - ANSWER c The personnel function of the payroll process does not... a) Hire employees b) Train employees c) Schedule employees d) Evaluate employees e) Terminate employees - ANSWER c At the value system level, ___________ are external business partners of the enterprise: a) Vendors and Suppliers b) Investors and Creditors c) Employees and Customers d) None are external business partners at the value system level e) All are external business partners at the value system level - ANSWER e Which of the following represents a commitment by the employee to provide the labor as specified, AND a commitment by the enterprise to pay the employee their contracted wage for the labor provided? a) Employee schedule b) Timecard c) Labor requisition instigation d) Employment agreement e) A hand-shake - ANSWER a Which of the following is a false statement about accruals for compensated sick and vacation time for salaried employees? a) Most enterprises assume each employee works 40hrs/week b) Most enterprises assume each employee works at a wage rate equivalent to their annual salary divided by 2,080 c) Most enterprises assume each employee works at a wage rate equivalent to their annual salary divided by 2,400 d) In most companies, salaried employees are still required to fill out a timesheet e) Companies are legally responsible for calculating accrued vacation and sick time for each employee - ANSWER c Which of the following would NOT be produced in a continuous process? a) GS cookies b) A customized key-chain c) Chocolate bars d) Breakfast Cereal e) Beer - ANSWER b Which of the following in an economic decrement event in the conversion cycle? a) Labor requisition b) Equipment requisition c) Material issuance d) Stock issuance e) Machine requisition - ANSWER c Which of the following information needs wouldn't be satisfied through a query using the duality association in the revenue process? a) Aging of account payable b) Calculation of the average number of days it takes to collect receivables c) Calculation of prepaid revenue at a point in time d) A list of open sale invoices e) Calculation of the outstanding receivable balance for a sale, rental, or service engagement invoice - ANSWER a Which type of schedule is referenced for the commitments of employees and their respective organizations to provide labor for a specific period and the wage rate for that labor? a) Employee Schedule b) Labor schedule c) Staffing Plan d) Timecard - ANSWER a The conversion business process has the same REA pattern fundamental parts as two other business processes, what are these two other business processes? a) Finance and Conversion b) Acquisition and Finance c) Acquisition and Payroll d) HR and Finance - ANSWER c In the Financing Cycle, what would be an example of an external agent? a) Controller b) Creditor c) Loan Clerk d) Cashier - ANSWER b In the Financing Cycle, the cash requisition is created by which employee? a) Finance Clerk b) External Agent c) Cashier d) Loan Clerk - ANSWER a If cash is being disbursed to the Creditor in the Financing Cycle, who needs to be informed of these types of transactions? a) Senior Management b) Loan Clerk c) Bank teller c) Cashier - ANSWER a Which of the following would be best to have as an attribute for the Cash Requisition table? a) Loan ID b) Bank ID c) Cash Account Balance d) Officer ID e) Cashier ID - ANSWER d Which of the following is an Economic Decrement event for the Financing cycle? a) Cash Receipt b) Cash Disbursement c) Cash Requisition d) Labor Requisition e) Interest Receipt - ANSWER b