investment center?
Question 1
Which statement below best describes an investment center?
The authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital
The authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply
The authority to provide specialized support to other units within the organization
The responsibility for developing markets for and selling of the output of the organization
Question 2
A profit center manager has responsibility for both cost control and revenue generation
True
False
Question 3
The core benefits of XBRL adoption include all of the following except:
Improved information quality
Cost reduction through tagging of each item with information so that data is easy to identify
Cost reduction through the ability to use data just once
Cost reduction through enhancing comparability of information because XBRL lays out a common set of definitions by which all organizations will tag their data
Question 4
An audit trail should:
Provide the ability to answer inquiries from customers or vendors
Be able to reconstruct files if they are destroyed
Provide historical data required by auditors
Fulfill government requirements
Provide a means for preventing, detecting and correcting errors
All of the above.
Question 5
XBRL
is an application of XML to business information reporting, that uses tags or structure, that will make data dramatically easier to create, aggregate, distribute and analyze
will improving the quality of the information used by companies, analysts and investors to make decisions
enables the creation of “interactive, intelligent” data that allows information to be automatically processed and analyzed and vastly improves transparency
is an acronym for eXtensible Business Reporting Language (XBRL)
Question 6
At what level of management is the long range planning function most important?
at top management levels
at middle management levels
at lower management levels
for staff functions e. for line functions
Question 7
The General ledger System (GLS) may be characterized as a hub in the center that is connected to other systems of the firm through spokes of information
True
False
Question 8
Which of the following is NOT a potential exposure of the FRS?
defective audit trail
general ledger accounts that are out of balance with subsidiary accounts
unauthorized access to the check register
unauthorized access to the general ledger
Question 9
The Ozment Corporation uses a performance reporting system that shows online the data for each subordinate who reports to a supervisor. The data presented show the actual costs incurred during the period, the budgeted costs, and all variances from budget for that subordinate’s department. The name of this system of reporting is
responsibility accounting
flexible budgeting
program budgeting
cost benefit accounting
