WGU D561 – INFORMATION SYSTEMS FOR
ACCOUNTING AND CONTROL 150 ORIGINAL
PRACTICE QUESTIONS & ANSWERS WITH
RATIONALES| GRADE A+ |2026/2027 UPDATE
DETAILED EXAM |DOWNLOADED PDF
SECTION 1: ACCOUNTING INFORMATION SYSTEMS (AIS) OVERVIEW
(Questions 1-20)
Q1: An Accounting Information System (AIS) is defined as:
A) A system that only records financial transactions
B) A system that only prepares financial statements
C) A system that collects, records, stores, and processes data to
produce information for decision-makers ✅
D) A system that only handles payroll
Explanation: An AIS is a system that collects, records, stores, and processes
data to produce information for decision-makers. It integrates people, processes,
data, and technology to support accounting functions and decision-making.
Q2: Which of the following is a primary component of an Accounting Information
System?
A) Only hardware and software
B) Only people and procedures
C) Only data and reports
, D) People, processes, data, software, and hardware ✅
Explanation: An AIS consists of multiple components: people (users, IT staff),
processes (procedures), data (financial and non-financial), software (accounting
software), and hardware (computers, servers, networks).
Q3: The primary purpose of an AIS is to:
A) Maximize profits
B) Minimize taxes
C) Provide accurate and timely information for decision-making ✅
D) Reduce the number of employees
Explanation: The primary purpose of an AIS is to provide accurate, reliable,
and timely information to support decision-making by internal and external
users. This includes financial reporting, management reporting, and compliance.
Q4: Which of the following is an example of an internal user of AIS information?
A) Investors
B) Creditors
C) Managers ✅
D) Tax authorities
Explanation: Internal users of AIS information include managers, employees,
and internal auditors who use the information for decision-making, planning, and
control within the organization. External users include investors, creditors, and
regulators.
Q5: Which of the following is an example of an external user of AIS information?
, A) Department managers
B) Internal auditors
C) Shareholders ✅
D) Sales representatives
Explanation: External users include shareholders, creditors, tax authorities,
regulators, and other stakeholders who rely on AIS information for investment,
credit, and regulatory decisions.
Q6: The transaction processing system (TPS) is a component of the AIS that:
A) Prepares financial statements
B) Records and processes routine business transactions ✅
C) Generates management reports
D) Performs external audits
Explanation: The TPS is a subsystem of the AIS that records and processes
routine business transactions such as sales, purchases, payments, and receipts.
It is the foundation of the AIS.
Q7: The general ledger system is a component of the AIS that:
A) Records daily sales transactions
B) Processes payroll
C) Summarizes transaction data and prepares financial
statements ✅
D) Manages inventory
, Explanation: The general ledger system summarizes transaction data from
various subsystems (sales, purchases, payroll) and prepares financial
statements (balance sheet, income statement, cash flow statement).
Q8: Which of the following is NOT a typical subsystem of an AIS?
A) Sales/Revenue cycle
B) Purchasing/Expenditure cycle
C) Payroll cycle
D) Marketing cycle ✅
Explanation: Typical AIS subsystems include the sales/revenue cycle,
purchasing/expenditure cycle, payroll cycle, and fixed assets cycle. Marketing is
not typically considered a core AIS subsystem.
Q9: The "Sales/Revenue Cycle" in an AIS includes all of the following EXCEPT:
A) Order processing
B) Shipping
C) Invoicing
D) Purchasing inventory ✅
Explanation: The sales/revenue cycle includes order processing, shipping,
invoicing, and cash receipts. Purchasing inventory is part of the
purchasing/expenditure cycle, not the sales cycle.
Q10: The "Purchasing/Expenditure Cycle" in an AIS includes all of the following
EXCEPT:
A) Requisitioning
ACCOUNTING AND CONTROL 150 ORIGINAL
PRACTICE QUESTIONS & ANSWERS WITH
RATIONALES| GRADE A+ |2026/2027 UPDATE
DETAILED EXAM |DOWNLOADED PDF
SECTION 1: ACCOUNTING INFORMATION SYSTEMS (AIS) OVERVIEW
(Questions 1-20)
Q1: An Accounting Information System (AIS) is defined as:
A) A system that only records financial transactions
B) A system that only prepares financial statements
C) A system that collects, records, stores, and processes data to
produce information for decision-makers ✅
D) A system that only handles payroll
Explanation: An AIS is a system that collects, records, stores, and processes
data to produce information for decision-makers. It integrates people, processes,
data, and technology to support accounting functions and decision-making.
Q2: Which of the following is a primary component of an Accounting Information
System?
A) Only hardware and software
B) Only people and procedures
C) Only data and reports
, D) People, processes, data, software, and hardware ✅
Explanation: An AIS consists of multiple components: people (users, IT staff),
processes (procedures), data (financial and non-financial), software (accounting
software), and hardware (computers, servers, networks).
Q3: The primary purpose of an AIS is to:
A) Maximize profits
B) Minimize taxes
C) Provide accurate and timely information for decision-making ✅
D) Reduce the number of employees
Explanation: The primary purpose of an AIS is to provide accurate, reliable,
and timely information to support decision-making by internal and external
users. This includes financial reporting, management reporting, and compliance.
Q4: Which of the following is an example of an internal user of AIS information?
A) Investors
B) Creditors
C) Managers ✅
D) Tax authorities
Explanation: Internal users of AIS information include managers, employees,
and internal auditors who use the information for decision-making, planning, and
control within the organization. External users include investors, creditors, and
regulators.
Q5: Which of the following is an example of an external user of AIS information?
, A) Department managers
B) Internal auditors
C) Shareholders ✅
D) Sales representatives
Explanation: External users include shareholders, creditors, tax authorities,
regulators, and other stakeholders who rely on AIS information for investment,
credit, and regulatory decisions.
Q6: The transaction processing system (TPS) is a component of the AIS that:
A) Prepares financial statements
B) Records and processes routine business transactions ✅
C) Generates management reports
D) Performs external audits
Explanation: The TPS is a subsystem of the AIS that records and processes
routine business transactions such as sales, purchases, payments, and receipts.
It is the foundation of the AIS.
Q7: The general ledger system is a component of the AIS that:
A) Records daily sales transactions
B) Processes payroll
C) Summarizes transaction data and prepares financial
statements ✅
D) Manages inventory
, Explanation: The general ledger system summarizes transaction data from
various subsystems (sales, purchases, payroll) and prepares financial
statements (balance sheet, income statement, cash flow statement).
Q8: Which of the following is NOT a typical subsystem of an AIS?
A) Sales/Revenue cycle
B) Purchasing/Expenditure cycle
C) Payroll cycle
D) Marketing cycle ✅
Explanation: Typical AIS subsystems include the sales/revenue cycle,
purchasing/expenditure cycle, payroll cycle, and fixed assets cycle. Marketing is
not typically considered a core AIS subsystem.
Q9: The "Sales/Revenue Cycle" in an AIS includes all of the following EXCEPT:
A) Order processing
B) Shipping
C) Invoicing
D) Purchasing inventory ✅
Explanation: The sales/revenue cycle includes order processing, shipping,
invoicing, and cash receipts. Purchasing inventory is part of the
purchasing/expenditure cycle, not the sales cycle.
Q10: The "Purchasing/Expenditure Cycle" in an AIS includes all of the following
EXCEPT:
A) Requisitioning
