ACCOUNTING INFORMATION SYSTEMS
15TH EDITION EXAM REVIEW TESTED
QUESTIONS WITH 100 PERCENT CORRECT
ANSWERS
◉ Which risk is associated with charge accounts within the revenue
cycle?
Answer: The clerk can be careless and allow purchases from
individuals who do not pay their bills.
◉ Which function reflects the expenditure cycle?
Answer: Inventory is a part of the expenditure cycle because the
quantities and condition are updated.
◉ What is the purpose of the blind copy?
Answer: The blind copy is used to force the clerk to count contents
to verify items match.
◉ Which items reflect fixed assets?
Answer: Buildings can sold and converted to cash.
,◉ What contributes to the success of the electronic data interchange
system?
Answer: Implementation of agreements contributes to the success
by circumventing discrepancies.
◉ What is an example of a payroll system information technology
(IT) control?
Answer: Direct deposit is an example of an IT control.
◉ Which department is responsible for receiving the supplier's
invoice, the purchase order, and the receiving report in order to post
the acquisition of fixed assets?
Answer: Accounts Payable receives the supplier's invoice, purchase
order, and receiving report to post the acquisition of fixed assets in
the accounts payable subledger.
◉ Which information from timecards provides an audit trail to
support financial reporting?
Answer: Payroll expenses should be supported with hours worked
by employees on a specified date.
◉ Why are journal vouchers reviewed and approved before entry
into the general ledger (GL)?
,Answer: Journal vouchers are entered into the GL and require a level
of review and approval to ensure information is accurate, complete,
authorized, and supported.
◉ Why is a management reporting system a control?
Answer: Management reporting systems are implemented at the
discretion of organization management based on internal user needs
to manage and control business activities.
◉ Why is the general ledger history file used for comparative
financial reports?
Answer: The same format and account structures allow for
transactions to be grouped and categorized consistently from year to
year.
◉ Which comparison serves as a tool for managers by using data
from the budget master file and from the responsibility center file?
Answer: A comparison of budgeted amounts in accounts to actual
revenue and expense amounts by responsibility center in accounts
can signal accounts that require further inquiry.
◉ Which strategic agreement is made between buyer and seller for
electronic data interchange?
, Answer: The strategic agreement of the electronic data interchange
technology has specific terms agreed on prior to utilization of the
service.
◉ What is a reason for sales returns?
Answer: Late deliveries can affect sales returns.
◉ Which risk is associated with charge accounts within the revenue
cycle?
Answer: The clerk can be careless and allow purchases from
individuals who do not pay their bills.
◉ What is a risk associated with one clerk receiving inventory?
Answer: Unauthorized purchases can cause excessive inventory and
tie up funds.
◉ What is the importance of supervisory control?
Answer: This is the compensating control function that allows a
manager to review all content of sales for accuracy.
◉ What is the purpose of authorized vendors?
Answer: The purpose of authorized vendors is to reduce vendor
fraud schemes.
15TH EDITION EXAM REVIEW TESTED
QUESTIONS WITH 100 PERCENT CORRECT
ANSWERS
◉ Which risk is associated with charge accounts within the revenue
cycle?
Answer: The clerk can be careless and allow purchases from
individuals who do not pay their bills.
◉ Which function reflects the expenditure cycle?
Answer: Inventory is a part of the expenditure cycle because the
quantities and condition are updated.
◉ What is the purpose of the blind copy?
Answer: The blind copy is used to force the clerk to count contents
to verify items match.
◉ Which items reflect fixed assets?
Answer: Buildings can sold and converted to cash.
,◉ What contributes to the success of the electronic data interchange
system?
Answer: Implementation of agreements contributes to the success
by circumventing discrepancies.
◉ What is an example of a payroll system information technology
(IT) control?
Answer: Direct deposit is an example of an IT control.
◉ Which department is responsible for receiving the supplier's
invoice, the purchase order, and the receiving report in order to post
the acquisition of fixed assets?
Answer: Accounts Payable receives the supplier's invoice, purchase
order, and receiving report to post the acquisition of fixed assets in
the accounts payable subledger.
◉ Which information from timecards provides an audit trail to
support financial reporting?
Answer: Payroll expenses should be supported with hours worked
by employees on a specified date.
◉ Why are journal vouchers reviewed and approved before entry
into the general ledger (GL)?
,Answer: Journal vouchers are entered into the GL and require a level
of review and approval to ensure information is accurate, complete,
authorized, and supported.
◉ Why is a management reporting system a control?
Answer: Management reporting systems are implemented at the
discretion of organization management based on internal user needs
to manage and control business activities.
◉ Why is the general ledger history file used for comparative
financial reports?
Answer: The same format and account structures allow for
transactions to be grouped and categorized consistently from year to
year.
◉ Which comparison serves as a tool for managers by using data
from the budget master file and from the responsibility center file?
Answer: A comparison of budgeted amounts in accounts to actual
revenue and expense amounts by responsibility center in accounts
can signal accounts that require further inquiry.
◉ Which strategic agreement is made between buyer and seller for
electronic data interchange?
, Answer: The strategic agreement of the electronic data interchange
technology has specific terms agreed on prior to utilization of the
service.
◉ What is a reason for sales returns?
Answer: Late deliveries can affect sales returns.
◉ Which risk is associated with charge accounts within the revenue
cycle?
Answer: The clerk can be careless and allow purchases from
individuals who do not pay their bills.
◉ What is a risk associated with one clerk receiving inventory?
Answer: Unauthorized purchases can cause excessive inventory and
tie up funds.
◉ What is the importance of supervisory control?
Answer: This is the compensating control function that allows a
manager to review all content of sales for accuracy.
◉ What is the purpose of authorized vendors?
Answer: The purpose of authorized vendors is to reduce vendor
fraud schemes.
