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1) Which of the following statements is not true about the three main transaction cycles in the...

Question:

1)

Which of the following statements is not true about the three main transaction cycles in the typical business?

a) In the Expenditure Cycle, the business receives resources in exchange for its expenditures.

b) In the Expenditure Cycle, the business incurs expenditures in exchange for resources.

c) In the Revenue Cycle, the business provides value-added through its products or services.

d) In the Conversion Cycle, the business provides value-added through its products or services.

e) In the Revenue Cycle, the business receives revenue from outside sources.

2)

The Customer Order Process typically includes activities that take place in all of the following functions, except the _______________.

a) sales function.

b) regulatory reporting function.

c) accounting function.

d) production function.

e) logistics function.

3)

Assume that you are a customer of a bank. When interest is credited to your savings account at your bank, it is called a:

a) Transaction.

b) function.

c) calculation.

d) decision.

e) process.

4)

Which of the following activities does not occur within the order fulfillment process?

a) The warehouse forwards a purchase requisition in order to buy goods from a vendor.

b) The warehouse prepares the shipment and produces internal documentation.

c) The sales department receives a customer inquiry and issues a quotation indicating price and availability.

d) The sales department forwards a sales order to the warehouse.

e) The accounting department issues an invoice to the customer.

5)

All of the following are strategies for acquiring IT applications except:

a) Outsourcing.

b) All of these are valid strategies.

c) Using open-source software.

d) Purchasing a pre-written application.

e) Custom development of an application.

6)

All of the following cycles are part of the Transaction Processing System, except:

a) The conversion cycle.

b) The administration cycle.

c) The expenditure cycle.

d) The revenue cycle.

e) None of these answers are correct.

Transaction Cycles:

Accounting transaction cycles refer to the cycles which procedures occur within a business. It is important to identify the cycles in order to determine controls which exist within an organisation and identify risks.

Answer and Explanation:

1)

Which of the following statements is not true about the three main transaction cycles in the typical business?

a) In the Expenditure Cycle, the...

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Transaction Processing Systems: Application & Examples

from UExcel Business Information Systems: Study Guide & Test Prep

Chapter 12 / Lesson 2
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