D561 Accounting Information System Exam
Questions with 100% Correct Answers
What is an Accounting Information System (AIS)?
A system that collects, records, stores, and processes accounting and other data to produce
information for decision-makers.
What are the six components of an AIS?
1. People 2. Procedures & Instructions 3. Data 4. Software 5. IT Infrastructure 6. Internal
Controls
What are the five major business process cycles?
Revenue, Expenditure, Production, HR/Payroll, and Financing
What is the difference between data and information?
Data are raw facts. Information is processed data that is meaningful and useful for decision-
making.
What three functions does an AIS perform?
Collect/store data, Transform data into information, Provide internal controls to safeguard
assets
What role do accountants play in AIS?
Designers, auditors, users, consultants, and evaluators of control effectiveness
What is a transaction?
An agreement between two entities to exchange goods or services, recorded in an AIS.
What are the benefits of a well-designed AIS?
, Improved quality, efficiency, knowledge sharing, internal control, supply chain, and decision-
making.
What is value of information?
Benefit produced by information minus the cost of producing it.
What is the general ledger?
The main accounting record that summarizes all transactions for an organization.
What is a subsidiary ledger?
A ledger that provides detail for a general ledger account.
What are turnaround documents?
Documents sent to external parties, who add data and return it for processing.
Define source document.
Documents that capture transaction data at the time the transaction occurs.
What is a coding system in AIS?
Methods used to organize and categorize accounting data (e.g., sequence, block, mnemonic).
What is batch processing?
Accumulating transaction data for processing at regular intervals.
What is real-time processing?
Data processed immediately after input.
What is ERP (Enterprise Resource Planning)?
Integrated software that collects and processes data from various business activities.
Questions with 100% Correct Answers
What is an Accounting Information System (AIS)?
A system that collects, records, stores, and processes accounting and other data to produce
information for decision-makers.
What are the six components of an AIS?
1. People 2. Procedures & Instructions 3. Data 4. Software 5. IT Infrastructure 6. Internal
Controls
What are the five major business process cycles?
Revenue, Expenditure, Production, HR/Payroll, and Financing
What is the difference between data and information?
Data are raw facts. Information is processed data that is meaningful and useful for decision-
making.
What three functions does an AIS perform?
Collect/store data, Transform data into information, Provide internal controls to safeguard
assets
What role do accountants play in AIS?
Designers, auditors, users, consultants, and evaluators of control effectiveness
What is a transaction?
An agreement between two entities to exchange goods or services, recorded in an AIS.
What are the benefits of a well-designed AIS?
, Improved quality, efficiency, knowledge sharing, internal control, supply chain, and decision-
making.
What is value of information?
Benefit produced by information minus the cost of producing it.
What is the general ledger?
The main accounting record that summarizes all transactions for an organization.
What is a subsidiary ledger?
A ledger that provides detail for a general ledger account.
What are turnaround documents?
Documents sent to external parties, who add data and return it for processing.
Define source document.
Documents that capture transaction data at the time the transaction occurs.
What is a coding system in AIS?
Methods used to organize and categorize accounting data (e.g., sequence, block, mnemonic).
What is batch processing?
Accumulating transaction data for processing at regular intervals.
What is real-time processing?
Data processed immediately after input.
What is ERP (Enterprise Resource Planning)?
Integrated software that collects and processes data from various business activities.
