Accounting Information System

Multiple Choice Question

1. A set of two or more interrelated components that interact to achieve a goal is: a) A system b) An accounting information system c) Data d) Mandatory information 2. These results when a subsystem achieves its goals while contributing to the organization's overall goal. a) Goal conflict b) Goai congruence c) Value of information d) Systems congruence 3. Goal conflict may result when a) A decision or action of a subsystem is inconsistent with the system as a whole. b) A subsystem achieves its goals while contributing to the organization's overall goal c) Duplicate recording, storage and processes are eliminated. d) The data exceeds the amount the human mind can absorb and process. 4. Facts that are collected, recorded, stored and processed by an information system a) Information b) Data c) Systems d) Mandatory information 5. Which of the following statements below shows the contrast between data and information? a) Data is the output of an AIS. b) Information is the primary output of an AIS. c) Data is more useful in decision-making than information. d) Data and information are the same. 6. Information is a) basically the same as data. b) raw facts about transactions. c) potentially useful facts when processed in a timely manner. d) data that has been organized and processed so that it's meaningful. 7. Information that is free from error or bias and accurately represents the events or activities of the organization is a) Relevant b) Reliable c) Verifiable d) Timely 8. Information that does not omit important aspects of the underlying events or activities that it measures is a) Complete b) Accessible c) Relevant d) Timely 9. The Financial Accounting Standards Board (FASB), in its Statement of Financial Accounting Concepts No. 2, has defined accounting as a) an information identification, development, measurement, and communication process. b) a way to provide adequate controls to safeguard an organization's assets. c) being an information system. d) a way to collect and transform data into useful information. 10. The process of creating value for customers is the result of nine activities (five primary and four support) that taken together form a a) value chain. b) profitable operation. c) successful business. d) support system. The value chain concept is composed of two types of activities known as a) primary and support b) primary and secondary. e) support and value. d) technology and support. 62. Which of the following is a primary activity in the value chain? a) infrastructure b) technology c) purchasing d) marketing and sales 13. Whatin the value chain conceptual framework, AIS is shown as a support activity. The AIS is of value to an organization when it provides accurate and timely. information to help support the five primary value chain activities. When the Als provides information in a timely and accurate manner, it stands as an example of a) improved decision making b) improving the quality and reducing the costs of products or services. c) improving efficiency. d) All of the above 14. An agreement between two entities to exchango goods or services or any other event that can be measured in economic terms by an organization is a) give-get exchange b) transaction c) revonue d) processing cycle 15. Groups of related business activities such as the acquisition of merchandise and payment of vendors are called a) transaction cycles. b) economic cycles: c) business events. 6. The basic "give and take" functions of a business have been grouped into transaction cycles. The cycle that includes the events of hiring employees and paying them is known as the b) expenditure cycle. a) revenue cycle. c) human resources cycle. b) expenditure c)humanresources18.Transactioncyclescanbesummarizedonahighlevelas"give-get"transactions.d)generalledgerandreporting a) revenue An example of "give-get" in the expenditure cycle would be c)givecash,getlabor.19.Theoperationsperformedondatatogeneratemeaningfulandrelevantinformationd)givegoods,getcash. a) give cash, get cash. b) give cash, get goods. a) general ledger and reporting system are referred to as b) accounting information system d) data processing cycle c) financial reporting 20. A typical source document could be a) in some paper form. c) a notepad entry b) feedback from external sources a) data input d) data processing c) data storage 22. Which of the following documents would be found in the expenditure cycle? a) dolivery tichet b) time card c) joumal voucher d) purchase order 23. The general ledger account that corresponds to a subsidiary ledger account is known as a a) dependent account b) attribute account. c) entity account. d) control account. 24. Pre-numbered checks, invoices and purchase orders are examples of a) sequence codes b) block codes c) group codes d) hierarchical codes 25. To be effoctive, the chart of accounts must a) be as concise as possible. b) contain only five account categories. c) lemit account codes to 10 digits or less. d) contain sufficient detail to meet the infomation needs of the specific organization's Als. 26. Something about which information is stored is a) attribute b) database c) entity d) record 27. Rolated records grouped together form a(n) a) fieid. b) entity c) file. d) database. 28. Periodic updating of the data stored about resources and agents is a) On-line processing b) real-time processing c) batch processing d) data processing 29. The narratives, diagrams, charts, and other written materials that explain how a system works are collectively called a) documentation. b) data flows: c) fowcharts. d) schema. 30. The graphic description of the flow of data within an organization is called a a) systems flowchart. e) context diagram. b) data flow diagram. d) document flowchart. 31. A graphical description of the sequence of logical operations that a computer pertorms is callod a) a data flow diagram. c) a system flowchart. b) a document flowchart. d) a program fowchart. 32. The passage of the Sarbanes Oxley Act a) Made documentation skills even more important. b) Requires public companies to prepare an annual internal control report. c) Means that auditors must be able to prepare, evaluate and read documentabion tools such as fowcharts. d) All of the above. 33. In a DFD, a square box represents a) data sources and destinations. c) transformation processes. b) data fows. d) data stores. in ar or a cicho reswesentis a) dala sourees whe destinations. b) the direction of data liswe c) valsiomation proceeses. d) data stores. A sala fow diagram (or DeD) has four basio elements The fow of data between phoweses rounces and destinations b) data flows. e) Canskonmation procosses d) data stores a) an arew pointing away. c) arrews pontang both ways. d) no arrows only two horizontal lines. a) veing a square to represent a data source and destination dagrant? b) sing a cicle to repeesent a translormation process c) using two horitontal lines to represent a data store d) contiol processes and actions should be gnored in a DFO 34. The term used to refine a high-level or summany view data flow diagram into sccessively lower bovels to provide greater amounts of detail is d) entange. * an andytical technique that uses standard symbols to graphically represent an a) expind b) explodie. c) inplode. in shation system in a clear, concise, and logical mannet is called a a) cata fiow diagram. b) flowehart. d) schema. d) narrative. Q. What should be the first thing the creator of a fowchart does betore beginning a A understand the system to be flowcharted mowhart? edesign the flowehart so that it proceeds from left to right and top to bottom sy dentify the entries to be fowcharted i) use standard fowcharting symbols 41. When dosigning either a DFD or a flowchart, a good rule to follow is. a) to proceed from left to right. b) to proceed from top to bottom. e) to proceed from left to right and top to bottom. d) to identify exception procedures by using a rectangle. 42. Which type of flowehat is an excellent vehicle for describing information flows and procedures within an AIS? a)aprogramflowchartc)aninternaleontrolflowehartb)adocumentflowehartd)asystemflowchart 43. In a pregram flowehart comparison of one or more variables, the transter of fow to b) datalintormation fiow. altemative logic paths is represented by. a) a terminal. c) computer operation. d) decision diamond. 44. What is the most populat type of database? b) retational a) hierarchical c) object-oriented d) netwotk 45. Using a file-oriented approach to data and information, data is maintained in a)acentraldatabase.b)manyinterconnectedfiles. c) many separate files. b) many interconnected files. 46. Which statement is true regarding file systems? a) Transaction files are similar to ledgers in a manual AIS. b) The proliferation of master files creates problems in the consistency of specific data stored in different files. c) Transaction files are permanent. d) Individual records are never deleted in a master file. 47. A set of interrelated, centrally coordinated files is called a) a database. b) a master file. c) a transaction file. d) a multiple-records grouping (MRG). 48. The person responsible for the database is the a) Data coordinator b) Database administrator c) Database manager d) Database master 49. All of the following are benefits of database technology except: a) Data integration and sharing b) Decentralized management of data c) Minimal data redundancy d) Reporting flexibility 50. The logical structure of a database is described by the a) dictionary. b) schema. c) subschema. d) internal level. 51. Schemas are used in designing database systems. The schema that provides an organization-wide view of the entire database is known as a) the external-level schema. b) the internal-level schema. c) the conceptual-level schema. d) the logical view of the database. 52. Accountants may be involved in several aspects of database development. In which area below would an accountant least likely have involvement when developing a database system? a) the conceptual-level schema b) the external-level schema c) the internal-level schema d) the logical view of data 53. Which of the following would not be found in a data dictionary entry for a data item? a) records containing a data item