Individuals with access authority to general ledger accounts should not prepare journal vouchers.

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Chapter 8—General Ledger, Financial Reporting, and Management Reporting Systems TRUE/FALSE 1. The most common means of making entries in the general ledger is via the journal voucher. ANS: T 2. Individuals with access authority to general ledger accounts should not prepare journal vouchers. ANS: T 3. The journal voucher is the document that authorizes entries to be made to the general ledger. ANS: T 4. Each account in the chart of accounts has a separate record in the general ledger master file. ANS: T 5. The responsibility center file is primarily used by the Financial Reporting System. ANS: F 6. Management reporting is often called discretionary reporting because it is not mandated as is financial reporting. ANS: T 7. Primary recipients of financial statement information are internal management. ANS: F 8. The Management Reporting System is a nondiscretionary system. ANS: F 9. When evaluating decision alternatives, one option is to take no action. ANS: T 10. In most cases intangible decision criteria can be quantified. ANS: F 11. One benefit of the Management Reporting System is that it can alert management to delays in project implementation. ANS: T 12. Responsibility refers to an individual’s obligation to achieve desired results. ANS: T 13. A firm with a wide span of control tends to have relatively more layers of management. ANS: F 14. The control function entails evaluating a process against a standard and, if necessary, taking corrective action. ANS: T 15. Standa ...
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Chapter 8

桮

eneral Ledger, Financial Reporting, and Management Reporting Systems

TRUE/FALSE

1. 

The most common means of making entries in the general ledger is via the journal voucher.

ANS: 

T

2. 

Individuals with access authority to general ledger accounts should not prepare journal vouchers.

ANS: 

T

3. 

The journal voucher is the document that authorizes entries to be made to the general ledger.

ANS: 

T

4. 

Each account in the chart of accounts has a separate record in the general ledger master file.

ANS: 

T

5. 

The responsibility center file is primarily used by the Financial Reporting System.

ANS: 

F

6. 

Management reporting is often called discretionary reporting because it is not mandated as is financial 

reporting.

ANS: 

T

7. 

Primary recipients of financial statement information are internal management.

ANS: 

F

8. 

The Management Reporting System is a nondiscretionary system.

ANS: 

F

9. 

When evaluating decision alternatives, one option is to take no action.

ANS: 

T

10. 

In most cases intangible decision criteria can be quantified.

ANS: 

F

11. 

One benefit of the Management Reporting System is that it can alert management to delays in project 

implementation.

ANS: 

T

12. 

Responsibility refers to an individual

抯

obligation to achieve desired results.

Which tasks should the general ledger perform?

What type of data is found in the general ledger master file *?

What are the major exposures in the general ledger financial reporting system why is the audit trail necessary?

Who are primary recipients of financial information?