Financial and Managerial Accounting: Financial Chapters, 9e (Miller/Poindexter/Mattison)
Appendix B: Accounting Information Systems
COMPLETE 2027 TEST BANK
5,467 Questions with Answers • Financial Chapters F1 to F15 + Appendix B
Learning Objective F:B-1
1) An accounting information system collects, records, stores, and processes accounting data to produce
information that is useful for decision makers.
Answer: TRUE
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Concept
H2: What Is an Accounting Information System? (H1)
2) The collection of time records for company employees is an accounting information system activity
that is classified as a business transaction involving the sale of merchandise inventory.
Answer: FALSE
Explanation: The collection of time records is an accounting information system activity that is classified
as a business transaction involving payroll.
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2: What Is an Accounting Information System? (H1)
3) An accounting information system is not significantly useful for decision making.
Answer: FALSE
Explanation: An accounting information system collects, records, stores, and processes accounting data
to produce information that is useful for decision makers.
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Concept
H2: What Is an Accounting Information System? (H1)
4) The approval of a vendor for a company is classified as a business transaction involving the purchase
of goods or services.
Answer: TRUE
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2: What Is an Accounting Information System? (H1)
1
Copyright © 2027
,5) Which of the following accounting information system activities is completed when merchandise
inventory is sold?
A) Approval of new employees
B) Approval of vendor
C) Processing of sales invoices
D) Payment for goods or services
Answer: C
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
6) Which of the following accounting information system activities is completed when there is a purchase
of goods or services?
A) Preparation and payment of payroll
B) Receipt of customer payment
C) Receipt of goods or services
D) Receipt of customer order
Answer: C
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
7) Collection of time records is a business transaction involving:
A) selling merchandise inventory.
B) purchasing goods or services.
C) payroll.
D) special activities.
Answer: C
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
2
Copyright © 2027
,8) Approval of a customer for credit sales is a business transaction involving:
A) selling merchandise inventory.
B) purchasing goods or services.
C) payroll.
D) special activities.
Answer: A
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
9) Which of the following is an accounting information system activity that can be classified as a payroll
business transaction?
A) Approval of new employees
B) Receipt of customer payment
C) Processing of vendor invoices
D) Payment for goods or services
Answer: A
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
10) Which of the following accounting information system activities is completed when merchandise
inventory is sold?
A) Preparation and payment of payroll
B) Receipt of customer payment
C) Receipt of goods or services
D) Payment for goods or services
Answer: B
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
3
Copyright © 2027
, 11) An accounting information system creates the structure to encourage adherence to management
policies.
Answer: TRUE
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Concept
H2: Effective Accounting Information Systems
12) A business must invest only in an accounting information system in which the benefits received
outweigh the cost of the system.
Answer: TRUE
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Concept
H2: Effective Accounting Information Systems
13) To safeguard a business's assets and reduce the likelihood of fraud and errors, its accounting
information system:
A) should be manual.
B) must be flexible to accommodate changes in a business over time.
C) should work smoothly with the business's employees.
D) must provide adequate controls of a business's assets and data.
Answer: D
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Application
H2: Effective Accounting Information Systems
14) An accounting information system is said to have quality compatibility, if it:
A) works smoothly with the business's employees and organizational structure.
B) safeguards a business's assets and reduces the likelihood of fraud and errors.
C) provides information that will improve decision making and reduce uncertainty.
D) accommodates changes in the business over time.
Answer: A
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Application
H2: Effective Accounting Information Systems
4
Copyright © 2027
Appendix B: Accounting Information Systems
COMPLETE 2027 TEST BANK
5,467 Questions with Answers • Financial Chapters F1 to F15 + Appendix B
Learning Objective F:B-1
1) An accounting information system collects, records, stores, and processes accounting data to produce
information that is useful for decision makers.
Answer: TRUE
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Concept
H2: What Is an Accounting Information System? (H1)
2) The collection of time records for company employees is an accounting information system activity
that is classified as a business transaction involving the sale of merchandise inventory.
Answer: FALSE
Explanation: The collection of time records is an accounting information system activity that is classified
as a business transaction involving payroll.
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2: What Is an Accounting Information System? (H1)
3) An accounting information system is not significantly useful for decision making.
Answer: FALSE
Explanation: An accounting information system collects, records, stores, and processes accounting data
to produce information that is useful for decision makers.
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Concept
H2: What Is an Accounting Information System? (H1)
4) The approval of a vendor for a company is classified as a business transaction involving the purchase
of goods or services.
Answer: TRUE
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2: What Is an Accounting Information System? (H1)
1
Copyright © 2027
,5) Which of the following accounting information system activities is completed when merchandise
inventory is sold?
A) Approval of new employees
B) Approval of vendor
C) Processing of sales invoices
D) Payment for goods or services
Answer: C
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
6) Which of the following accounting information system activities is completed when there is a purchase
of goods or services?
A) Preparation and payment of payroll
B) Receipt of customer payment
C) Receipt of goods or services
D) Receipt of customer order
Answer: C
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
7) Collection of time records is a business transaction involving:
A) selling merchandise inventory.
B) purchasing goods or services.
C) payroll.
D) special activities.
Answer: C
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
2
Copyright © 2027
,8) Approval of a customer for credit sales is a business transaction involving:
A) selling merchandise inventory.
B) purchasing goods or services.
C) payroll.
D) special activities.
Answer: A
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
9) Which of the following is an accounting information system activity that can be classified as a payroll
business transaction?
A) Approval of new employees
B) Receipt of customer payment
C) Processing of vendor invoices
D) Payment for goods or services
Answer: A
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
10) Which of the following accounting information system activities is completed when merchandise
inventory is sold?
A) Preparation and payment of payroll
B) Receipt of customer payment
C) Receipt of goods or services
D) Payment for goods or services
Answer: B
Diff: 1
LO: F:7-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: What Is an Accounting Information System? (H1)
3
Copyright © 2027
, 11) An accounting information system creates the structure to encourage adherence to management
policies.
Answer: TRUE
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Concept
H2: Effective Accounting Information Systems
12) A business must invest only in an accounting information system in which the benefits received
outweigh the cost of the system.
Answer: TRUE
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Concept
H2: Effective Accounting Information Systems
13) To safeguard a business's assets and reduce the likelihood of fraud and errors, its accounting
information system:
A) should be manual.
B) must be flexible to accommodate changes in a business over time.
C) should work smoothly with the business's employees.
D) must provide adequate controls of a business's assets and data.
Answer: D
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Application
H2: Effective Accounting Information Systems
14) An accounting information system is said to have quality compatibility, if it:
A) works smoothly with the business's employees and organizational structure.
B) safeguards a business's assets and reduces the likelihood of fraud and errors.
C) provides information that will improve decision making and reduce uncertainty.
D) accommodates changes in the business over time.
Answer: A
Diff: 1
LO: F:7-1
AACSB: Information technology
AICPA Functional: Leverage technology to develop and enhance functional competencies
PE Question Type: Application
H2: Effective Accounting Information Systems
4
Copyright © 2027
