PART 1

1 A manual AIS begins with the capture of information from source documents could vary from paper to notepads, however, transaction data are most easily and effectively captured if the source documents are well designed. Which of the following is NOT an element of a well-designed source document?

a) Pre-number documents

b) Use preprinted data to the maximum extent possible

c) Group logically related information

d) Minimize the use of codes and checkoffs

e) Use multiple-part forms to facilitate proper distribution of the data

2 Many journals are available for the recording of transactions. In which journal would one record the purchase of a new part of equipment for use in production?

a) Sales Journal

b) Purchase Journal

c) General Journal

d) Cash Receipts Journal

e) Cash Disbursements Journal

3 The posting process....................

a) never generates more than one posting for each transaction

b) occurs as needed

c) is used to place post-it notes on all items that need attention

d) is used to meter the outgoing mail

e) summarizes the amounts recorded in the journals to the ledgers

4 One of the three basic functions of an AIS is to collect and store data about the organization's business activities and transactions efficiently and effectively. In a manual system the process of performing this function follows the order of:

a) source documents, journalizing, posting

b) posting, journalizing, source documents

c) journalizing, ledgerizing, posting

d) source documents, ledgerizing, journalizing

e) source documents, ledgerizing, posting

5 A chart of accounts....................

a) is a list of all accounts in the organization with each account identified by a three- or four-digit code

b) is used to summarize each customer's current balance

c) provides an audit trail

d) is a list of all permanent accounts in the organization. Temporary accounts, such as revenue and expense accounts, are not included in the chart of accounts.

e) None of the above