CPA Accounting Information Systems
Practice Exam Questions (Actual Exam
2026-2027) Correct Detailed & Verified
ANSWERS (100% Accurate Solutions)
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1. Which of the following is the primary objective of an Accounting
Information System (AIS)?
A. Minimize employee salaries
B. Increase tax liabilities
C. Provide accurate and timely financial information
D. Eliminate all manual processes
Answer: C. Provide accurate and timely financial information
Rationale: The primary purpose of an AIS is to collect, process, store,
and report financial information accurately and promptly to support
decision-making.
2. Which component is NOT part of an Accounting Information
System?
A. People
B. Procedures
,C. Data
D. Weather forecasts
Answer: D. Weather forecasts
Rationale: AIS consists of people, procedures, data, software, IT
infrastructure, and internal controls—not unrelated information like
weather forecasts.
3. Which business process records customer sales?
A. Revenue cycle
B. Expenditure cycle
C. Payroll cycle
D. Financing cycle
Answer: A. Revenue cycle
Rationale: The revenue cycle includes sales, billing, cash receipts, and
accounts receivable activities.
4. Which document authorizes the shipment of goods?
A. Purchase order
B. Packing slip
C. Sales invoice
D. Receiving report
Answer: B. Packing slip
Rationale: A packing slip accompanies goods shipped to customers
and details the contents of the shipment.
5. Which document requests goods from a supplier?
,A. Sales order
B. Purchase order
C. Credit memo
D. Receiving report
Answer: B. Purchase order
Rationale: A purchase order is a formal request sent to vendors to
purchase specified goods or services.
6. Which cycle includes processing employee wages?
A. Revenue cycle
B. Expenditure cycle
C. Payroll cycle
D. Production cycle
Answer: C. Payroll cycle
Rationale: Payroll processing includes employee compensation,
payroll taxes, and benefit deductions.
7. Which internal control helps prevent unauthorized purchases?
A. Sequential numbering of invoices
B. Purchase authorization procedures
C. Bank reconciliation
D. Budget variance analysis
Answer: B. Purchase authorization procedures
Rationale: Management approval before purchases helps prevent
unauthorized expenditures.
8. Which database characteristic minimizes data redundancy?
, A. Flat file system
B. Relational database
C. Manual ledger
D. Spreadsheet
Answer: B. Relational database
Rationale: Relational databases organize related data efficiently and
reduce duplicate information.
9. Which control ensures only authorized users access accounting
records?
A. Backup procedures
B. Password authentication
C. Audit trail
D. Hash totals
Answer: B. Password authentication
Rationale: Authentication controls verify user identity before granting
system access.
10. Which report summarizes all general ledger account balances?
A. Trial balance
B. Sales journal
C. Cash receipts journal
D. Purchase journal
Answer: A. Trial balance
Rationale: A trial balance lists all ledger account balances to verify
equality of debits and credits.
Practice Exam Questions (Actual Exam
2026-2027) Correct Detailed & Verified
ANSWERS (100% Accurate Solutions)
ALREADY GRADED A+||NEWEST
VERSION Of The Exam Guarantee
Pass!!
1. Which of the following is the primary objective of an Accounting
Information System (AIS)?
A. Minimize employee salaries
B. Increase tax liabilities
C. Provide accurate and timely financial information
D. Eliminate all manual processes
Answer: C. Provide accurate and timely financial information
Rationale: The primary purpose of an AIS is to collect, process, store,
and report financial information accurately and promptly to support
decision-making.
2. Which component is NOT part of an Accounting Information
System?
A. People
B. Procedures
,C. Data
D. Weather forecasts
Answer: D. Weather forecasts
Rationale: AIS consists of people, procedures, data, software, IT
infrastructure, and internal controls—not unrelated information like
weather forecasts.
3. Which business process records customer sales?
A. Revenue cycle
B. Expenditure cycle
C. Payroll cycle
D. Financing cycle
Answer: A. Revenue cycle
Rationale: The revenue cycle includes sales, billing, cash receipts, and
accounts receivable activities.
4. Which document authorizes the shipment of goods?
A. Purchase order
B. Packing slip
C. Sales invoice
D. Receiving report
Answer: B. Packing slip
Rationale: A packing slip accompanies goods shipped to customers
and details the contents of the shipment.
5. Which document requests goods from a supplier?
,A. Sales order
B. Purchase order
C. Credit memo
D. Receiving report
Answer: B. Purchase order
Rationale: A purchase order is a formal request sent to vendors to
purchase specified goods or services.
6. Which cycle includes processing employee wages?
A. Revenue cycle
B. Expenditure cycle
C. Payroll cycle
D. Production cycle
Answer: C. Payroll cycle
Rationale: Payroll processing includes employee compensation,
payroll taxes, and benefit deductions.
7. Which internal control helps prevent unauthorized purchases?
A. Sequential numbering of invoices
B. Purchase authorization procedures
C. Bank reconciliation
D. Budget variance analysis
Answer: B. Purchase authorization procedures
Rationale: Management approval before purchases helps prevent
unauthorized expenditures.
8. Which database characteristic minimizes data redundancy?
, A. Flat file system
B. Relational database
C. Manual ledger
D. Spreadsheet
Answer: B. Relational database
Rationale: Relational databases organize related data efficiently and
reduce duplicate information.
9. Which control ensures only authorized users access accounting
records?
A. Backup procedures
B. Password authentication
C. Audit trail
D. Hash totals
Answer: B. Password authentication
Rationale: Authentication controls verify user identity before granting
system access.
10. Which report summarizes all general ledger account balances?
A. Trial balance
B. Sales journal
C. Cash receipts journal
D. Purchase journal
Answer: A. Trial balance
Rationale: A trial balance lists all ledger account balances to verify
equality of debits and credits.
