,WGU D217 Accounting Information Systems |
155 Study Questions and Answers + Expert
Rationales | 2026/27 Updated | 100% correct
1. Which of the following is NOT a financial transaction?
A) Purchase of products
B) Cash receipts
C) Update valid vendor file
D) Sale of inventory
Correct Answer: C
Expert Rationale: A financial transaction is an economic event that affects the assets and
equities of an organization and is measured in monetary terms. Updating a vendor file is a
routine maintenance activity, not a financial transaction that impacts the accounting equation.
2. The following are subsystems of the accounting information system, EXCEPT the:
A) Transaction processing system
B) Human resources system
C) General ledger/financial reporting system
D) Management reporting system
Correct Answer: B
Expert Rationale: The Accounting Information System (AIS) consists of three primary
subsystems: the Transaction Processing System (TPS), the General Ledger/Financial Reporting
System (GL/FRS), and the Management Reporting System (MRS). The human resources system is
considered part of the broader Management Information System (MIS), not a core AIS
subsystem.
3. Which of the following is NOT a purpose of the transaction processing system?
A) Managing and reporting on the status of financial investments
B) Converting economic events into financial transactions
C) Distributing essential information to operations personnel to support their daily operations
D) Recording financial transactions in the accounting records
Correct Answer: A
,Expert Rationale: The TPS converts economic events into financial transactions, records them in
accounting records, and distributes essential information to operations personnel. Managing
and reporting on the status of financial investments is a function of the financial reporting
system or management reporting system, not the TPS.
4. The objectives of the data collection activity of the general model for accounting
information systems are to collect data that are:
A) Relevant and timely
B) Accurate and complete
C) Efficient and effective
D) Valid and reliable
Correct Answer: D
Expert Rationale: The general model for AIS includes data collection, data processing, data
management, and information generation. The data collection activity must collect data that are
valid and reliable to ensure the integrity of the entire system.
5. Which of the following is NOT a characteristic of effective information?
A) Relevance
B) Accuracy
C) Summarization
D) Precision
Correct Answer: D
Expert Rationale: Effective information must be relevant, accurate, timely, and complete.
Summarization is a characteristic that can make information more useful. Precision, while
desirable, is not one of the primary characteristics of effective information, as overly precise
information may be irrelevant or misleading.
6. Which of the following is NOT a database management risk?
A) Retrieval
B) Storage
C) Summarization
D) Deletion
Correct Answer: C
, Expert Rationale: Database management risks include unauthorized retrieval, storage
vulnerabilities, and improper deletion of data. Summarization is a normal data processing
function, not a risk associated with database management.
7. When viewed from the highest to most elemental level, the data hierarchy is:
A) Attribute, record, file
B) Record, attribute, key
C) File, record, attribute
D) File, record, key
E) Key, record, file
Correct Answer: C
Expert Rationale: The data hierarchy from highest (most complex) to most elemental is: file,
record, attribute. A file contains multiple records, each record contains multiple attributes, and
attributes are the smallest meaningful unit of data.
8. Which is NOT a source of evidence for an external auditor?
A) Work performed by internal auditors who organizationally report to the controller
B) Test of controls
C) Substantive tests
D) Work performed by internal auditors who report to the audit committee of the BOD
Correct Answer: A
Expert Rationale: External auditors may rely on work performed by internal auditors only if they
report to the audit committee of the Board of Directors, ensuring independence. Internal
auditors who report to the controller lack the necessary independence for external auditors to
rely on their work.
9. Which of the following is NOT an objective of all information systems?
A) Support for the stewardship function of management
B) Support for management decision making
C) Support for day-to-day operations of the firm
D) All of the above are objectives
Correct Answer: D
155 Study Questions and Answers + Expert
Rationales | 2026/27 Updated | 100% correct
1. Which of the following is NOT a financial transaction?
A) Purchase of products
B) Cash receipts
C) Update valid vendor file
D) Sale of inventory
Correct Answer: C
Expert Rationale: A financial transaction is an economic event that affects the assets and
equities of an organization and is measured in monetary terms. Updating a vendor file is a
routine maintenance activity, not a financial transaction that impacts the accounting equation.
2. The following are subsystems of the accounting information system, EXCEPT the:
A) Transaction processing system
B) Human resources system
C) General ledger/financial reporting system
D) Management reporting system
Correct Answer: B
Expert Rationale: The Accounting Information System (AIS) consists of three primary
subsystems: the Transaction Processing System (TPS), the General Ledger/Financial Reporting
System (GL/FRS), and the Management Reporting System (MRS). The human resources system is
considered part of the broader Management Information System (MIS), not a core AIS
subsystem.
3. Which of the following is NOT a purpose of the transaction processing system?
A) Managing and reporting on the status of financial investments
B) Converting economic events into financial transactions
C) Distributing essential information to operations personnel to support their daily operations
D) Recording financial transactions in the accounting records
Correct Answer: A
,Expert Rationale: The TPS converts economic events into financial transactions, records them in
accounting records, and distributes essential information to operations personnel. Managing
and reporting on the status of financial investments is a function of the financial reporting
system or management reporting system, not the TPS.
4. The objectives of the data collection activity of the general model for accounting
information systems are to collect data that are:
A) Relevant and timely
B) Accurate and complete
C) Efficient and effective
D) Valid and reliable
Correct Answer: D
Expert Rationale: The general model for AIS includes data collection, data processing, data
management, and information generation. The data collection activity must collect data that are
valid and reliable to ensure the integrity of the entire system.
5. Which of the following is NOT a characteristic of effective information?
A) Relevance
B) Accuracy
C) Summarization
D) Precision
Correct Answer: D
Expert Rationale: Effective information must be relevant, accurate, timely, and complete.
Summarization is a characteristic that can make information more useful. Precision, while
desirable, is not one of the primary characteristics of effective information, as overly precise
information may be irrelevant or misleading.
6. Which of the following is NOT a database management risk?
A) Retrieval
B) Storage
C) Summarization
D) Deletion
Correct Answer: C
, Expert Rationale: Database management risks include unauthorized retrieval, storage
vulnerabilities, and improper deletion of data. Summarization is a normal data processing
function, not a risk associated with database management.
7. When viewed from the highest to most elemental level, the data hierarchy is:
A) Attribute, record, file
B) Record, attribute, key
C) File, record, attribute
D) File, record, key
E) Key, record, file
Correct Answer: C
Expert Rationale: The data hierarchy from highest (most complex) to most elemental is: file,
record, attribute. A file contains multiple records, each record contains multiple attributes, and
attributes are the smallest meaningful unit of data.
8. Which is NOT a source of evidence for an external auditor?
A) Work performed by internal auditors who organizationally report to the controller
B) Test of controls
C) Substantive tests
D) Work performed by internal auditors who report to the audit committee of the BOD
Correct Answer: A
Expert Rationale: External auditors may rely on work performed by internal auditors only if they
report to the audit committee of the Board of Directors, ensuring independence. Internal
auditors who report to the controller lack the necessary independence for external auditors to
rely on their work.
9. Which of the following is NOT an objective of all information systems?
A) Support for the stewardship function of management
B) Support for management decision making
C) Support for day-to-day operations of the firm
D) All of the above are objectives
Correct Answer: D
