AIS Exam 1 Chapters 1-4 || QUESTIONS WITH
COMPLETE SOLUTIONS!!
A set of two or more interrelated components that interact to achieve a goal is correct answers
a system
This results when a subsystem achieves its goals while contributing to the organization's
overall goal. correct answers goal congruence
Facts that are collected, recorded, stored and processed by an information system. correct
answers data
Data that have been organized and processes to provide meaning to a user is correct answers
information
Humans can absorb and process only so much information. Information _____ occurs when
those limits are passed. correct answers overload
An accounting information system (AIS) processes ____ to provide users with _____. correct
answers data; information
Data must be converted into information to be considered useful and meaningful for decision-
making. There are six characteristics that make information both useful and meaningful. If
information is free from error or bias and accurately represents the events or activities of the
organization, it is representative of the characteristic of correct answers reliability
An accounting information system must be able to perform which of the following tasks?
correct answers Process transaction data, collect transaction data, provide adequate controls
The primary objective of accounting is to correct answers provide useful information to
decision makers
The primary focus of an AIS course, as opposed to other IS courses, is on correct answers
understanding how information technology can be used to improve AIS processes
An agreement between two entities to exchange goods or services or any other event that can
be measured in economic terms by an organization is correct answers transaction
Groups of related business activities such as the acquisition of merchandise and payment of
vendors are called correct answers transaction cycles
Which of the following is not a transaction cycle? correct answers general ledger and
reporting
All transaction cycles feed information directly into the correct answers general ledger and
reporting system
A typical source document could be correct answers in some paper form and a computer data
entry screen
, Certain documents or forms are generated and/or processed with each transaction cycle. The
issuing of a purchase order is part of which transaction cycle? correct answers the
expenditure cycle
The general ledger account that corresponds to a subsidiary ledger account is known as a
correct answers control account
A listing of general ledger accounts by account number is called the correct answers chart of
accounts
Federal Express stated in one of its mission statements that "positive control of each package
will be maintained by utilizing.... electronic tracking and tracing systems." This is an example
of which type of data processing? correct answers real-time processing which features
immediate updating as to the location of packages
Name the major transaction cycles correct answers Revenue, expenditure, production, HR
Payroll, and financing
What is the purpose of source documents? what controls are embedded in source documents?
Give two examples of source documents? correct answers to record data about business
activities. Source documents standardize data collection procedures for an organization and
provide better control and accuracy. Source documents are generally pre-numbered, which
helps to verify that all transactions have been recorded and there is no missing document; if a
document is missing, then which one can be determined. Proper design of source documents
ensures which information to collect, preprints standard information such as addresses, and
provides directions for completing the form. Examples: INVOICES, TIMECARDS, SALES
ORDERS, AND PURCHASE ORDERS.
What is an audit trail? correct answers a means to check the accuracy and validity of postings
to the ledger. The posting references and document numbers help provide the audit trail. An
audit trail exists when company transactions can be traced through the AIS from where
originate to where they end up on the financial statements.
What operational information should an AIS be capable of providing to management? correct
answers reports about inventory status, relative profitability of products, percentage of
revenue generated by new products, relative performance of each salesperson, cash
collections and pending obligations, and an organization's performance in meeting its deliver
and service commitments. The AIS should also be able to provide non-financial information
connected with various transactions such as addresses, purchasing histories, telephone and
fax numbers, e-mail addresses, Web sites, etc.
The transformation of data in a DFD is represented as a correct answers process
The storage of data of a DFD is shown by correct answers two horizontal lines
Creating a DFD is an iterative process. Each DFD iteration helps the designer to refine the
diagram and identify the fine points. A DFD created at a high-level or summary view is
referred to as a correct answers context diagram
COMPLETE SOLUTIONS!!
A set of two or more interrelated components that interact to achieve a goal is correct answers
a system
This results when a subsystem achieves its goals while contributing to the organization's
overall goal. correct answers goal congruence
Facts that are collected, recorded, stored and processed by an information system. correct
answers data
Data that have been organized and processes to provide meaning to a user is correct answers
information
Humans can absorb and process only so much information. Information _____ occurs when
those limits are passed. correct answers overload
An accounting information system (AIS) processes ____ to provide users with _____. correct
answers data; information
Data must be converted into information to be considered useful and meaningful for decision-
making. There are six characteristics that make information both useful and meaningful. If
information is free from error or bias and accurately represents the events or activities of the
organization, it is representative of the characteristic of correct answers reliability
An accounting information system must be able to perform which of the following tasks?
correct answers Process transaction data, collect transaction data, provide adequate controls
The primary objective of accounting is to correct answers provide useful information to
decision makers
The primary focus of an AIS course, as opposed to other IS courses, is on correct answers
understanding how information technology can be used to improve AIS processes
An agreement between two entities to exchange goods or services or any other event that can
be measured in economic terms by an organization is correct answers transaction
Groups of related business activities such as the acquisition of merchandise and payment of
vendors are called correct answers transaction cycles
Which of the following is not a transaction cycle? correct answers general ledger and
reporting
All transaction cycles feed information directly into the correct answers general ledger and
reporting system
A typical source document could be correct answers in some paper form and a computer data
entry screen
, Certain documents or forms are generated and/or processed with each transaction cycle. The
issuing of a purchase order is part of which transaction cycle? correct answers the
expenditure cycle
The general ledger account that corresponds to a subsidiary ledger account is known as a
correct answers control account
A listing of general ledger accounts by account number is called the correct answers chart of
accounts
Federal Express stated in one of its mission statements that "positive control of each package
will be maintained by utilizing.... electronic tracking and tracing systems." This is an example
of which type of data processing? correct answers real-time processing which features
immediate updating as to the location of packages
Name the major transaction cycles correct answers Revenue, expenditure, production, HR
Payroll, and financing
What is the purpose of source documents? what controls are embedded in source documents?
Give two examples of source documents? correct answers to record data about business
activities. Source documents standardize data collection procedures for an organization and
provide better control and accuracy. Source documents are generally pre-numbered, which
helps to verify that all transactions have been recorded and there is no missing document; if a
document is missing, then which one can be determined. Proper design of source documents
ensures which information to collect, preprints standard information such as addresses, and
provides directions for completing the form. Examples: INVOICES, TIMECARDS, SALES
ORDERS, AND PURCHASE ORDERS.
What is an audit trail? correct answers a means to check the accuracy and validity of postings
to the ledger. The posting references and document numbers help provide the audit trail. An
audit trail exists when company transactions can be traced through the AIS from where
originate to where they end up on the financial statements.
What operational information should an AIS be capable of providing to management? correct
answers reports about inventory status, relative profitability of products, percentage of
revenue generated by new products, relative performance of each salesperson, cash
collections and pending obligations, and an organization's performance in meeting its deliver
and service commitments. The AIS should also be able to provide non-financial information
connected with various transactions such as addresses, purchasing histories, telephone and
fax numbers, e-mail addresses, Web sites, etc.
The transformation of data in a DFD is represented as a correct answers process
The storage of data of a DFD is shown by correct answers two horizontal lines
Creating a DFD is an iterative process. Each DFD iteration helps the designer to refine the
diagram and identify the fine points. A DFD created at a high-level or summary view is
referred to as a correct answers context diagram
