Question

50. Which of the following is a disadvantage of enterprise resource planning (ERP) systems?

A.It is not supported by cloud computing.

B.It is not beneficial to large corporations.

C.Its implementation requires a large commitment of time and people.

D.It uses separate software systems, such as sales and payroll.

53. Which of the following is a benefit provided by internal control?

A.It ensures timely collection of accounts receivables.

B.It guarantees that a business makes profit.

C.It promotes operational efficiency.

D.It ensures that collusion will never happen.

54. Ariel Tax Planning Service has the following plant assets: Communications equipment: Cost, $4,800 with useful life of 8 years; Furniture: Cost, $ 18000 with useful life of 12 years; and Computer: Cost, $12,480 with useful life of 4 years. Assume the residual value of all the assets is zero and the straightminus−line method is used. Ariel's monthly depreciation journal entry will include a ________.

A.credit to Depreciation Expense of $5,220

B.debit to Accumulated Depreciation of $435

C.credit to Accumulated Depreciation of $435

D.debit to Depreciation Expense of $ 5220

63. Revenue is earned when the business has ________.

A.received cash from the customer before goods or services are delivered

B.prepared a journal entry to record revenue

C.entered into an agreement with the customer about the goods or services to be delivered

D.delivered a good or service to the customer

64. Use the following to calculate the acid-test ratio. (Round your answer to two decimal places.)

Cash	$100,000
Short-term investments	16,000
Net current receivables	270,000
Inventory	330,000
Total current liabilities	790,000

A.0.78

B.0.91

C.6.25

D.0.49

Answer 1

50. C. Its implementation requires a large commitment of time and people.

Explanation: Implementation of enterprise resource planning (ERP) systems requires a lot of time and people for successful implementation.

53. C. It promotes operational efficiency

Explanation: One of the benefit provided by the internal control is improving efficiency in operations.

63. D. Delivered a good or service to the customer

Explanation:

Revenue is the earning that result from delivering goods or services to customers.

64. D. 0.49

Explanation:

Acid test ratio = $100,000 + $16,000 + $270,000 / $790,000 = 0.49