11) A good cost/benefit relationship:

A) offers maximum benefits at a minimum cost.

B) is impossible to achieve.

C) exists in manual accounting systems only.

D) would be ignored in a large organization.

 

12) Which of the following is not an element of internal control?

A) assessing cost/benefit relationship.

B) safeguarding assets and records.

C) authorizing transactions.

D) procedures to ensure adherence to company policy.

 

13) Two components that form a computerized accounting system include:

A) hardware and personnel.

B) hardware  and software.

C) hardware and input.

D) personnel and input.

14) The main computer in a network, where the program and data are stored, is called the:

A) database.

B) hardware.

C) server.

D) software.

 

15) A computerized storehouse of information is known as a(n):

A) network.

B) database.

C) management system.

D) input system.

 

16) Hardware is the electronic equipment that includes:

A) computers, monitors, printers and the network.

B) disk drives, software, and servers.

C) servers, databases, and software.

D) servers and software only.

 

17) Which of the following is true of internal control?

A) A company's outside auditor is responsible for the company's internal control system.

B) One of the major purposes of internal control is to ensure accurate, reliable accounting records.

C) Internal control procedures tend to diminish the importance of operational efficiency.

D) Internal controls are only necessary for large businesses.

18) Which of the following is not one of the purposes of internal control?

A) to encourage employees to follow company policy

B) to safeguard the company's assets

C) to ensure accurate, reliable accounting records

D) to guarantee that a business makes a profit

Match the following.

 

A) network

B) accounting information system

C) software

 

19) Set of programs or instructions that cause the computer to perform the work desired

 

20) The combination of personnel, records, and procedures that a business uses to meet the need for financial data

 

21) Set of programs that drives the computer

22) The system of electronic linkages that allows different computers to share the same information