BUS-A 337 Computer-Based Accounting Systems
BUS-A 337 - COMPUTER-BASED ACCOUNTING SYSTEMS | EXAM
QUESTIONS AND CORRECT ANSWERS | LATEST VERSION
BUS-A 337 Computer-Based Accounting Systems
1. Which of the following best describes an accounting information
system (AIS)?
A. A software package used only to prepare tax returns
B. A manual ledger kept by the controller
C. A network of computers used for email
D. A system that collects, records, stores, and processes data to produce
information for decision makers
D. A system that collects, records, stores, and processes data to
produce information for decision makers
An AIS covers the full flow from data capture through processing to useful
output for internal and external users.
2. Data differ from information in that information is:
A. Data that have been organized and processed to provide meaning for
decisions
B. Raw facts that have not yet been recorded
C. Only produced by computer systems
D. Always numerical
A. Data that have been organized and processed to provide meaning
for decisions
Information is data put into a useful, meaningful form; raw facts alone are
data.
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, BUS-A 337 Computer-Based Accounting Systems
3. Which characteristic of useful information means it is free from
error or bias?
A. Understandability
B. Verifiability of format
C. Reliability
D. Timeliness
C. Reliability
Reliable information can be depended on because it accurately represents
events without bias or error.
4. The value of information is best defined as:
A. The time spent gathering it
B. The total cost of the hardware used to generate it
C. The benefit produced by the information minus the cost of producing it
D. The number of reports it appears in
C. The benefit produced by the information minus the cost of
producing it
Information is valuable only when its benefits exceed the costs of
producing and using it.
5. Which business process includes taking customer orders, shipping
goods, billing, and collecting cash?
A. Financing cycle
B. Expenditure cycle
C. Revenue cycle
D. Production cycle
C. Revenue cycle
The revenue cycle covers all activities related to selling goods or services
and collecting payment.
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, BUS-A 337 Computer-Based Accounting Systems
6. Purchasing inventory, receiving goods, and paying vendors are
activities of the:
A. Expenditure cycle
B. Revenue cycle
C. General ledger cycle
D. Human resources cycle
A. Expenditure cycle
The expenditure cycle handles acquiring and paying for goods and
services.
7. Which cycle converts raw materials into finished goods?
A. Revenue cycle
B. Financing cycle
C. Expenditure cycle
D. Production cycle
D. Production cycle
The production (conversion) cycle transforms materials, labor, and
overhead into finished products.
8. Hiring, training, compensating, and terminating employees belong to
which cycle?
A. Financing cycle
B. Human resources/payroll cycle
C. Production cycle
D. Revenue cycle
B. Human resources/payroll cycle
Payroll and HR activities are grouped in the human resources/payroll
cycle.
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, BUS-A 337 Computer-Based Accounting Systems
9. The cycle that deals with obtaining funds from investors and
creditors and repaying them is the:
A. Financing cycle
B. Revenue cycle
C. Production cycle
D. Expenditure cycle
A. Financing cycle
The financing cycle covers issuing stock, borrowing, paying dividends, and
repaying debt.
10. Which cycle receives summary data from all other cycles and
produces financial statements?
A. General ledger and reporting system
B. Production cycle
C. Expenditure cycle
D. Revenue cycle
A. General ledger and reporting system
Every cycle posts summary data to the general ledger, which feeds
financial reporting.
11. The 'give-get' relationship in business cycles refers to:
A. Auditors giving opinions on statements
B. Exchanging one resource for another, such as goods for cash
C. Customers getting refunds
D. Employees giving feedback to managers
B. Exchanging one resource for another, such as goods for cash
Each cycle involves an exchange: the firm gives up one resource to obtain
another.
12. A source document is used to:
A. Capture data about a transaction at its origin
B. Report results to shareholders
C. Summarize account balances at year end
D. Store backup copies of the database
A. Capture data about a transaction at its origin
Source documents, such as sales orders or time cards, record transaction
data where it begins.
Page 4 of 54
BUS-A 337 - COMPUTER-BASED ACCOUNTING SYSTEMS | EXAM
QUESTIONS AND CORRECT ANSWERS | LATEST VERSION
BUS-A 337 Computer-Based Accounting Systems
1. Which of the following best describes an accounting information
system (AIS)?
A. A software package used only to prepare tax returns
B. A manual ledger kept by the controller
C. A network of computers used for email
D. A system that collects, records, stores, and processes data to produce
information for decision makers
D. A system that collects, records, stores, and processes data to
produce information for decision makers
An AIS covers the full flow from data capture through processing to useful
output for internal and external users.
2. Data differ from information in that information is:
A. Data that have been organized and processed to provide meaning for
decisions
B. Raw facts that have not yet been recorded
C. Only produced by computer systems
D. Always numerical
A. Data that have been organized and processed to provide meaning
for decisions
Information is data put into a useful, meaningful form; raw facts alone are
data.
Page 1 of 54
, BUS-A 337 Computer-Based Accounting Systems
3. Which characteristic of useful information means it is free from
error or bias?
A. Understandability
B. Verifiability of format
C. Reliability
D. Timeliness
C. Reliability
Reliable information can be depended on because it accurately represents
events without bias or error.
4. The value of information is best defined as:
A. The time spent gathering it
B. The total cost of the hardware used to generate it
C. The benefit produced by the information minus the cost of producing it
D. The number of reports it appears in
C. The benefit produced by the information minus the cost of
producing it
Information is valuable only when its benefits exceed the costs of
producing and using it.
5. Which business process includes taking customer orders, shipping
goods, billing, and collecting cash?
A. Financing cycle
B. Expenditure cycle
C. Revenue cycle
D. Production cycle
C. Revenue cycle
The revenue cycle covers all activities related to selling goods or services
and collecting payment.
Page 2 of 54
, BUS-A 337 Computer-Based Accounting Systems
6. Purchasing inventory, receiving goods, and paying vendors are
activities of the:
A. Expenditure cycle
B. Revenue cycle
C. General ledger cycle
D. Human resources cycle
A. Expenditure cycle
The expenditure cycle handles acquiring and paying for goods and
services.
7. Which cycle converts raw materials into finished goods?
A. Revenue cycle
B. Financing cycle
C. Expenditure cycle
D. Production cycle
D. Production cycle
The production (conversion) cycle transforms materials, labor, and
overhead into finished products.
8. Hiring, training, compensating, and terminating employees belong to
which cycle?
A. Financing cycle
B. Human resources/payroll cycle
C. Production cycle
D. Revenue cycle
B. Human resources/payroll cycle
Payroll and HR activities are grouped in the human resources/payroll
cycle.
Page 3 of 54
, BUS-A 337 Computer-Based Accounting Systems
9. The cycle that deals with obtaining funds from investors and
creditors and repaying them is the:
A. Financing cycle
B. Revenue cycle
C. Production cycle
D. Expenditure cycle
A. Financing cycle
The financing cycle covers issuing stock, borrowing, paying dividends, and
repaying debt.
10. Which cycle receives summary data from all other cycles and
produces financial statements?
A. General ledger and reporting system
B. Production cycle
C. Expenditure cycle
D. Revenue cycle
A. General ledger and reporting system
Every cycle posts summary data to the general ledger, which feeds
financial reporting.
11. The 'give-get' relationship in business cycles refers to:
A. Auditors giving opinions on statements
B. Exchanging one resource for another, such as goods for cash
C. Customers getting refunds
D. Employees giving feedback to managers
B. Exchanging one resource for another, such as goods for cash
Each cycle involves an exchange: the firm gives up one resource to obtain
another.
12. A source document is used to:
A. Capture data about a transaction at its origin
B. Report results to shareholders
C. Summarize account balances at year end
D. Store backup copies of the database
A. Capture data about a transaction at its origin
Source documents, such as sales orders or time cards, record transaction
data where it begins.
Page 4 of 54
