Accounting Info Systems Verified Exam Questions and Answers Latest
update 2026/2027
Question:
The primary input to the transaction processing system is
Answer:
A. a financial transaction
Question:
A. a financial transaction
B. an accounting report
C. an accounting record
D. a nonfinancial transaction
Answer:
Question:
The major difference between the financial reporting system (FRS) and the management reporting
system (MRS) is the
A. FRS provides discretionary information;
the MRS provides nondiscretionary information.
B. FRS reports are prepared in flexible,
nonstandard formats; the MRS reports are prepared in standardized, formal formats.
C. FRS provides information to external
users; the MRS provides information to internal users.
D. FRS reports are prepared using
information provided by the general ledger system; the MRS provides information to the general
ledger
Answer:
C. FRS provides information to external users; the MRS provides information to
internal users.
,Question:
The author distinguishes between the accounting information system and the management information
system based on
A. whether discretionary or
nondiscretionary reports are prepared.
B. whether the transactions are financial or
nonfinancial that directly affect the processing of financial transactions.
C. the end users of the reports.
D. the organizational structure of the
business.
Answer:
B. whether the transactions are financial or nonfinancial that directly affect the
processing of financial transactions.
Question:
An example of a financial transaction is
A. a supplier's price list.
B. an employee benefit brochure.
C. the purchase of computer.
D. a delivery schedule.
Answer:
C. the purchase of computer.
Question:
An example of a nonfinancial transaction is
A. log of customer calls.
B. cash disbursement.
C. purchase of inventory.
D. sale of products.
Answer:
A. log of customer calls.
Question:
The transaction processing system includes which of the following?
A. the material requirements planning cycle
B. the conversion cycle
C. the production cycle
D. the sales forecasting cycle
Answer:
B. the conversion cycle
, Question:
The goal of data processing is
A. the production of useful information.
B. to collect only relevant data.
C. to develop a hierarchy of outputs.
D. the verification of the algorithms used.
Answer:
A. the production of useful information.
Question:
Which of the following is an external end user?
A. union steward
B. credit manager
C. cost accountant
D. tax authorities
Answer:
D. tax authorities
Question:
An appraisal function housed within the organization that performs a wide range of services for
management is
A. database administration.
B. external auditing.
C. data control group.
D. internal auditing.
Answer:
D. internal auditing.
update 2026/2027
Question:
The primary input to the transaction processing system is
Answer:
A. a financial transaction
Question:
A. a financial transaction
B. an accounting report
C. an accounting record
D. a nonfinancial transaction
Answer:
Question:
The major difference between the financial reporting system (FRS) and the management reporting
system (MRS) is the
A. FRS provides discretionary information;
the MRS provides nondiscretionary information.
B. FRS reports are prepared in flexible,
nonstandard formats; the MRS reports are prepared in standardized, formal formats.
C. FRS provides information to external
users; the MRS provides information to internal users.
D. FRS reports are prepared using
information provided by the general ledger system; the MRS provides information to the general
ledger
Answer:
C. FRS provides information to external users; the MRS provides information to
internal users.
,Question:
The author distinguishes between the accounting information system and the management information
system based on
A. whether discretionary or
nondiscretionary reports are prepared.
B. whether the transactions are financial or
nonfinancial that directly affect the processing of financial transactions.
C. the end users of the reports.
D. the organizational structure of the
business.
Answer:
B. whether the transactions are financial or nonfinancial that directly affect the
processing of financial transactions.
Question:
An example of a financial transaction is
A. a supplier's price list.
B. an employee benefit brochure.
C. the purchase of computer.
D. a delivery schedule.
Answer:
C. the purchase of computer.
Question:
An example of a nonfinancial transaction is
A. log of customer calls.
B. cash disbursement.
C. purchase of inventory.
D. sale of products.
Answer:
A. log of customer calls.
Question:
The transaction processing system includes which of the following?
A. the material requirements planning cycle
B. the conversion cycle
C. the production cycle
D. the sales forecasting cycle
Answer:
B. the conversion cycle
, Question:
The goal of data processing is
A. the production of useful information.
B. to collect only relevant data.
C. to develop a hierarchy of outputs.
D. the verification of the algorithms used.
Answer:
A. the production of useful information.
Question:
Which of the following is an external end user?
A. union steward
B. credit manager
C. cost accountant
D. tax authorities
Answer:
D. tax authorities
Question:
An appraisal function housed within the organization that performs a wide range of services for
management is
A. database administration.
B. external auditing.
C. data control group.
D. internal auditing.
Answer:
D. internal auditing.
