1 An accounting information system is also relied upon to produce detailed operational information about the organization's...
Question:
1 An accounting information system is also relied upon to produce detailed operational information about the organization's performance. Where are the data collected from to generate this operational information?
a) Customers
b) Vendors
c) Revenue Cycle
d) Expenditure Cycle
e) Product Cycle
f) All of the above
2 One of the functions of an AIS is to provide adequate internal controls to accomplish three basic objectives. Which of the below is NOT one of these objectives?
a) Ensure that business activities are performed efficiently and in accordance with management's objectives while also conforming to any applicable regulatory policies
b) Safeguard organizational assets, including its data
c) Ensure that the information that is produced by the system is relevant
d) Ensure that the information that is produced by the system is reliable
3 How can management reasonably ensure that business activities are performed in accordance with their objectives?
a) Supervise each employee sufficiently to ensure that he/she is performing all his/her duties correctly
b) Spot check each employee to ensure that he/she is performing his/her duties correctly
c) Provide each employee with written descriptions of company procedures. Periodically evaluate each employee's performance with regard to compliance with company procedures.
d) None of the above
4 Segregation of duties is a practice that promotes good internal control. Which of the following must NOT be performed by the individual responsible for receiving cash from the customers?
a) Preparing trial balances
b) Authorizing the receipt of goods
c) Updating shipping records for goods sold
d) Writing off uncollectable customer accounts
e) Managing the purchases journal
5 Which of the following must NOT be performed by the person responsible for safe custody of inventory?
a) Receiving cash from customers
b) Paying cash to vendors
c) Preparing a trial balance
d) Authorization to move inventory to shipping
e) Authorization to write off bad debt