CHAPTER 2 MULTIPLE CHOICE

1. Which statement is NOT true? 4. The production subsystem of the conversion

cycle
a. Business activities begin with the acquisition of
includes all of the following EXCEPT
materials, property, and labor in exchange for
a. determining raw materials requirements.
cash.
b. make or buy decisions on component parts.
b. The conversion cycle includes the task of
c. release of raw materials into production.
determining raw materials requirements.
d. scheduling the goods to be produced.
c. Manufacturing firms have a conversion cycle
but retail firms do not.
5. Which of the following files is a temporary file?
d. A payroll check is an example of a product
a. transaction file
document of the payroll system.
b. master file
e. A journal voucher is actually a special source
c. reference file
document.
d. none of the above

2. A documentation tool that depicts the physical

6. A documentation tool used to represent the
flow of information relating to a particular
logical elements of a system is a(n)
transaction through an organization is a
a. programming flowchart.
a. system flowchart.
b. entity relationship diagram.
b. program flowchart.
c. system flowchart.
c. decision table.
d. data flow diagram.
d. work distribution analysis.
e. systems survey.
7. Which of the following is NOT an advantage of
real-time processing files over batch processing?
3. Sequential file processing will not permit
a. shorter transaction processing time
a. data to be edited on a separate computer
b. reduction of inventory stocks
run.
c. improved customer service
b. the use of a database structure.
d. all are advantages
c. data to be edited in an offline mode.
d. batch processing to be initiated from a
8. Which statement is NOT correct?
terminal.
a. Legacy systems may process financially
e. data to be edited on a real-time basis.
significant transactions.
b. Some legacy systems use database technology.
c. Mainframes are exclusive to legacy systems,
CHAPTER 2 MULTIPLE CHOICE
while modern systems use only the clientserver
model.
12. In a hashing structure
d. All the above are true.
a. two records can be stored at the same address.
b. pointers are used to indicate the location of all
9. Which statement is NOT correct?
records.
a. Indexed random files are dispersed throughout
c. pointers are used to indicate location of a record
the storage device without regard for physical
with the same address as another record.
proximity with related records.
d. all locations on the disk are used for record
b. Indexed random files use disk storage space
storage.
efficiently.
c. Indexed random files are efficient when
13. An advantage of a physical address pointer is
processing a large portion of a file at one that
time. a. it points directly to the actual disk storage
location.
d. Indexed random files are easy to maintain in
b. it is easily recovered if it is inadvertently lost.
terms of adding records.
c. it remains unchanged when disks are
reorganized.
10. Which statement is NOT correct? The indexed
d. all of the above are advantages of the physical
sequential access method
address pointer.
a. is used for very large files that need both direct
access and batch processing.
14. Which of the following is NOT true of a
b. may use an overflow area for records. turnaround document?

c. provides an exact physical address for each a. They may reduce the number of errors made

record. by external parties.

d. is appropriate for files that require few insertions b. They are commonly used by utility companies
or deletions.
(gas, power, water).
c. They are documents used by internal parties
11. Which statement is true about a hashing only.
structure?
d. They are both input and output documents.
a. The same address could be calculated for two
records.
15. Which of the following is NOT a true statement?
b. Storage space is used efficiently.
a. Transactions are recorded on source documents
c. Records cannot be accessed rapidly. and are posted to journals.

d. A separate index is required. b. Transactions are recorded in journals and are

posted to ledgers.
CHAPTER 2 MULTIPLE CHOICE
c. Infrequent transactions are recorded in the 19. A chart of accounts would best be coded using
general journal. a(n) ______________ coding scheme.
d. Frequent transactions are recorded in special a. alphabetic
journals. b. mnemonic
16. Which of the following is true of the relationship c. block
between subsidiary ledgers and general ledger d. sequential
accounts?
a. The two contain different and unrelated 20. Which of the following statements is NOT true?
data. a. Sorting records that are coded alphabetically
b. All general ledger accounts have subsidiaries. tends to be more difficult for users than sorting
c. The relationship between the two provides an numeric sequences.
audit trail from the financial statements to the b. Mnemonic coding requires the user to memorize
codes.
source documents.
c. Sequential codes carry no information content
d. The total of subsidiary ledger accounts usually
beyond their order in the sequence.
exceeds the total in the related general ledger
d. Mnemonic codes are limited in their ability to
account.
represent items within a class.

17. Real-time systems might be appropriate for all

of 21. A coding scheme in the form of acronyms and
the following EXCEPT other combinations that convey meaning is a(n)
a. airline reservations. a. sequential code.
b. payroll. b. block code.
c. point-of-sale transactions. c. alphabetic code.
d. air traffic control systems. d. mnemonic code.
e. all of these applications typically utilize realtime
processing.

18. is the system flowchart symbol for:

a. on-page connector.
b. off-page connector.
c. home base.
d. manual operation.
e. document.