ACCOUNTING INFORMATION SYSTEMS
15TH EDITION EXAMS SET COMPLETE
QUESTIONS AND ANSWERS EXPERT
VERIFIED
◉ Which problem is characteristically associated with the flat-file
approach to data management?
Answer: the inability to determine what data is available
◉ A description of the physical arrangement of records in the
database is
Answer: the internal view.
◉ Which of the following may provide many distinct views of the
database?
Answer: the user view
◉ The update anomaly in unnormalized tables
Answer: occurs because of data redundancy.
,◉ The deletion anomaly in unnormalized tables
Answer: may result in the loss of important data.
◉ Which document triggers the revenue cycle?
Answer: the customer purchase order
◉ Which department is least likely to be involved in the revenue
cycle?
Answer: The accounts payable department is least likely to be
involved in the revenue cycle. Accounts payable is charged with
managing the segment of the expenditure cycle that involves
payments to vendors and creditors.
◉ The purpose of the sales invoice is to
Answer: The purpose of the sales invoice is to bill the customer. The
sales invoice will be sent to the customer for payment. At the same
time the invoice will also update inventory, send a journal to the
general ledger, and record the sales journal.
◉ Which type of control is considered a compensating control for
customer payments?
Answer: Supervision is a compensating control for customer
payments. Compensating controls are put in place when more
effective controls are deemed too difficult or costly to implement.
,Supervision is the simplest and most common form of compensating
control.
◉ Commercial accounting systems have fully integrated modules.
The word "integrated" means that
Answer: The word "integrated" means that the transfer of
information among modules occurs automatically. In a fully
integrated system, the shipping advice will generate the request for
invoice automatically. This eliminates the risk that the invoice
request is not processed or is processed for a different amount.
◉ A copy of the purchase order (PO) is sent to the
Answer: A copy of the purchase order (PO) is sent to the vendor. The
purchase order is the formal document that tells the vendor what
material is needed, at what price, in what quantity and on what date.
◉ The departments involved in the purchasing process are
purchasing, receiving, inventory control and
Answer: The departments involved in the purchasing process are
purchasing, receiving, inventory control and accounts payable.
Accounts payable completes the purchasing process by authorizing
and executing the cash disbursement based on a signal from
receiving or inventory control.
, ◉ When a cash disbursement in payment of an accounts payable is
recorded
Answer: When a cash disbursement in payment of an accounts
payable is recorded the liability account is decreased. On the Balance
Sheet, accounts payable is a current liability. When a cash
disbursement is recorded, the liability will be reduced.
◉ The greatest risk of misappropriation of funds occurs in
Answer: The greatest risk of misappropriation of funds occurs in
accounts payable. This may take the form of payments for goods not
ordered or received and to vendors that do not exist. The risk can be
reduced through supervision, segregation of duties, independent
verification, or automated processes.
◉ In a firm with proper segregation of duties, adequate supervision
as a compensating control is still necessary in
Answer: In a firm with proper segregation of duties, adequate
supervision is most critical in receiving. Every day materials arrive
on the receiving dock. Until those receipts are recorded in the
system, they are invisible to anyone but the receivers and their
supervisors. Supervision is a compensating control appropriate
before more automated controls take effect. Scanning technology
and automated three-way match are technological controls that
reduce risk.
◉ The fixed asset system records the
15TH EDITION EXAMS SET COMPLETE
QUESTIONS AND ANSWERS EXPERT
VERIFIED
◉ Which problem is characteristically associated with the flat-file
approach to data management?
Answer: the inability to determine what data is available
◉ A description of the physical arrangement of records in the
database is
Answer: the internal view.
◉ Which of the following may provide many distinct views of the
database?
Answer: the user view
◉ The update anomaly in unnormalized tables
Answer: occurs because of data redundancy.
,◉ The deletion anomaly in unnormalized tables
Answer: may result in the loss of important data.
◉ Which document triggers the revenue cycle?
Answer: the customer purchase order
◉ Which department is least likely to be involved in the revenue
cycle?
Answer: The accounts payable department is least likely to be
involved in the revenue cycle. Accounts payable is charged with
managing the segment of the expenditure cycle that involves
payments to vendors and creditors.
◉ The purpose of the sales invoice is to
Answer: The purpose of the sales invoice is to bill the customer. The
sales invoice will be sent to the customer for payment. At the same
time the invoice will also update inventory, send a journal to the
general ledger, and record the sales journal.
◉ Which type of control is considered a compensating control for
customer payments?
Answer: Supervision is a compensating control for customer
payments. Compensating controls are put in place when more
effective controls are deemed too difficult or costly to implement.
,Supervision is the simplest and most common form of compensating
control.
◉ Commercial accounting systems have fully integrated modules.
The word "integrated" means that
Answer: The word "integrated" means that the transfer of
information among modules occurs automatically. In a fully
integrated system, the shipping advice will generate the request for
invoice automatically. This eliminates the risk that the invoice
request is not processed or is processed for a different amount.
◉ A copy of the purchase order (PO) is sent to the
Answer: A copy of the purchase order (PO) is sent to the vendor. The
purchase order is the formal document that tells the vendor what
material is needed, at what price, in what quantity and on what date.
◉ The departments involved in the purchasing process are
purchasing, receiving, inventory control and
Answer: The departments involved in the purchasing process are
purchasing, receiving, inventory control and accounts payable.
Accounts payable completes the purchasing process by authorizing
and executing the cash disbursement based on a signal from
receiving or inventory control.
, ◉ When a cash disbursement in payment of an accounts payable is
recorded
Answer: When a cash disbursement in payment of an accounts
payable is recorded the liability account is decreased. On the Balance
Sheet, accounts payable is a current liability. When a cash
disbursement is recorded, the liability will be reduced.
◉ The greatest risk of misappropriation of funds occurs in
Answer: The greatest risk of misappropriation of funds occurs in
accounts payable. This may take the form of payments for goods not
ordered or received and to vendors that do not exist. The risk can be
reduced through supervision, segregation of duties, independent
verification, or automated processes.
◉ In a firm with proper segregation of duties, adequate supervision
as a compensating control is still necessary in
Answer: In a firm with proper segregation of duties, adequate
supervision is most critical in receiving. Every day materials arrive
on the receiving dock. Until those receipts are recorded in the
system, they are invisible to anyone but the receivers and their
supervisors. Supervision is a compensating control appropriate
before more automated controls take effect. Scanning technology
and automated three-way match are technological controls that
reduce risk.
◉ The fixed asset system records the
