AIS TEST 1 UPDATED QUESTIONS AND ANSWERS
General Ledger - CORRECT ANSWER✅✅✅contains summary-level data for every asset, liability,
equity, revenue, and expense account
Sequence Code - CORRECT ANSWER✅✅✅items are numbered consecutively to account for all
items; missing items cause a gap in the numerical sequence
Audit Trail - CORRECT ANSWER✅✅✅Path of a transaction through a data processing system from
point of origin to final output, or backwards from final output to point of origin
Chart of accounts - CORRECT ANSWER✅✅✅List of general ledger account numbers; allows
transaction data to be coded, classified, and entered into proper accounts; facilitates preparation of
financial statements and reports
Data value - CORRECT ANSWER✅✅✅Contents of a specific field, such as "George" in a name field
Field - CORRECT ANSWER✅✅✅Portion of a data record that contains the data value for a particular
attribute, like a cell in a spreadsheet
Turnaround document - CORRECT ANSWER✅✅✅Company data sent to an external party and then
returned to the system as input
General journal - CORRECT ANSWER✅✅✅Used to record infrequent or non-routine transactions
Attribute - CORRECT ANSWER✅✅✅Characteristics of interest that need to be stored
data processing - CORRECT ANSWER✅✅✅The steps a company must follow to efficiently and
effectively process data about its transactions
Entity - CORRECT ANSWER✅✅✅something about which information is stored
,master file - CORRECT ANSWER✅✅✅Stores cumulative information about an organization; like a
ledger in a manual AIS
subsidary ledger - CORRECT ANSWER✅✅✅contains detailed data for any general ledger account
with many individual subaccounts
transaction file - CORRECT ANSWER✅✅✅contains records of individual business transactions that
occur during a specific time
online, real-time processing - CORRECT ANSWER✅✅✅updating each transaction as it occurs
source data automation - CORRECT ANSWER✅✅✅devices that capture transaction data in machine-
readable form at the time and place of their origin
specialized journal - CORRECT ANSWER✅✅✅used to record large numbers of repetitive transactions
database - CORRECT ANSWER✅✅✅set of interrelated, centrally coordinated files
group code - CORRECT ANSWER✅✅✅two or more subgroups of digits are used to code items
batch processing - CORRECT ANSWER✅✅✅updating done periodically, such as daily
coding - CORRECT ANSWER✅✅✅systematic assignment of numbers or letters to items to classify
and organize them
mnemonic coding - CORRECT ANSWER✅✅✅letters and numbers, derived from the item description,
are interspersed to identify items, usually easy to memorize
, source documents - CORRECT ANSWER✅✅✅initial record of a transaction that takes place; usually
recorded on preprinted forms or formatted screens
record - CORRECT ANSWER✅✅✅Fields containing data about entity attributes; like a row in a
spreadsheet
block code - CORRECT ANSWER✅✅✅Sets of numbers are reserved for specific categories of data
Control Account - CORRECT ANSWER✅✅✅The general ledger account that is supported by a
subsidiary ledger, where the sum of all subsidiary ledger entries should equal the amount in the general
ledger account
purchase raw materials - CORRECT ANSWER✅✅✅expenditure
pay off mortgage on factory - CORRECT ANSWER✅✅✅financing
hire a new assistant controller - CORRECT ANSWER✅✅✅HR/payroll
establish a $10,000 credit limit for a new customer - CORRECT ANSWER✅✅✅revenue
Pay for raw materials - CORRECT ANSWER✅✅✅expenditure
disburse payroll checks to factory workers - CORRECT ANSWER✅✅✅HR/payroll
record goods received from a vendor - CORRECT ANSWER✅✅✅expenditure
Update the allowance for uncollectible accounts - CORRECT ANSWER✅✅✅revenue
decide how many units to make next month - CORRECT ANSWER✅✅✅production
General Ledger - CORRECT ANSWER✅✅✅contains summary-level data for every asset, liability,
equity, revenue, and expense account
Sequence Code - CORRECT ANSWER✅✅✅items are numbered consecutively to account for all
items; missing items cause a gap in the numerical sequence
Audit Trail - CORRECT ANSWER✅✅✅Path of a transaction through a data processing system from
point of origin to final output, or backwards from final output to point of origin
Chart of accounts - CORRECT ANSWER✅✅✅List of general ledger account numbers; allows
transaction data to be coded, classified, and entered into proper accounts; facilitates preparation of
financial statements and reports
Data value - CORRECT ANSWER✅✅✅Contents of a specific field, such as "George" in a name field
Field - CORRECT ANSWER✅✅✅Portion of a data record that contains the data value for a particular
attribute, like a cell in a spreadsheet
Turnaround document - CORRECT ANSWER✅✅✅Company data sent to an external party and then
returned to the system as input
General journal - CORRECT ANSWER✅✅✅Used to record infrequent or non-routine transactions
Attribute - CORRECT ANSWER✅✅✅Characteristics of interest that need to be stored
data processing - CORRECT ANSWER✅✅✅The steps a company must follow to efficiently and
effectively process data about its transactions
Entity - CORRECT ANSWER✅✅✅something about which information is stored
,master file - CORRECT ANSWER✅✅✅Stores cumulative information about an organization; like a
ledger in a manual AIS
subsidary ledger - CORRECT ANSWER✅✅✅contains detailed data for any general ledger account
with many individual subaccounts
transaction file - CORRECT ANSWER✅✅✅contains records of individual business transactions that
occur during a specific time
online, real-time processing - CORRECT ANSWER✅✅✅updating each transaction as it occurs
source data automation - CORRECT ANSWER✅✅✅devices that capture transaction data in machine-
readable form at the time and place of their origin
specialized journal - CORRECT ANSWER✅✅✅used to record large numbers of repetitive transactions
database - CORRECT ANSWER✅✅✅set of interrelated, centrally coordinated files
group code - CORRECT ANSWER✅✅✅two or more subgroups of digits are used to code items
batch processing - CORRECT ANSWER✅✅✅updating done periodically, such as daily
coding - CORRECT ANSWER✅✅✅systematic assignment of numbers or letters to items to classify
and organize them
mnemonic coding - CORRECT ANSWER✅✅✅letters and numbers, derived from the item description,
are interspersed to identify items, usually easy to memorize
, source documents - CORRECT ANSWER✅✅✅initial record of a transaction that takes place; usually
recorded on preprinted forms or formatted screens
record - CORRECT ANSWER✅✅✅Fields containing data about entity attributes; like a row in a
spreadsheet
block code - CORRECT ANSWER✅✅✅Sets of numbers are reserved for specific categories of data
Control Account - CORRECT ANSWER✅✅✅The general ledger account that is supported by a
subsidiary ledger, where the sum of all subsidiary ledger entries should equal the amount in the general
ledger account
purchase raw materials - CORRECT ANSWER✅✅✅expenditure
pay off mortgage on factory - CORRECT ANSWER✅✅✅financing
hire a new assistant controller - CORRECT ANSWER✅✅✅HR/payroll
establish a $10,000 credit limit for a new customer - CORRECT ANSWER✅✅✅revenue
Pay for raw materials - CORRECT ANSWER✅✅✅expenditure
disburse payroll checks to factory workers - CORRECT ANSWER✅✅✅HR/payroll
record goods received from a vendor - CORRECT ANSWER✅✅✅expenditure
Update the allowance for uncollectible accounts - CORRECT ANSWER✅✅✅revenue
decide how many units to make next month - CORRECT ANSWER✅✅✅production