WGU D217 Accounting Information Systems Questions And
Correct Answers
1. Which of the following is a problem usually associated with the flat-file
approach to data management?: data redundancy
2. Which problem is characteristically associated with the flat-file approach
to data management?: the inability to determine what data is available
3. A description of the physical arrangement of records in the database
is: the internal view.
4. Which of the following may provide many distinct views of the database?-
: the user view
5. The update anomaly in unnormalized tables: occurs because of data redun-
dancy.
6. The deletion anomaly in unnormalized tables: may result in the loss of
important data.
7. Which document triggers the revenue cycle?: the customer purchase order
8. Which department is least likely to be involved in the revenue cycle?: The
accounts payable department is least likely to be involved in the revenue cycle.
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,Accounts payable is charged with managing the segment of the expenditure cycle
that involves payments to vendors and creditors.
9. The purpose of the sales invoice is to: The purpose of the sales invoice is to
bill the customer. The sales invoice will be sent to the customer for payment. At
the same time the invoice will also update inventory, send a journal to the general
ledger, and record the sales journal.
10. Which type of control is considered a compensating control for customer
payments?: Supervision is a compensating control for customer payments. Com-
pensating controls are put in place when more effective controls are deemed too
difficult or costly to implement. Supervision is the simplest and most common form
of compensating control.
11. Commercial accounting systems have fully integrated modules. The word
"integrated" means that: The word "integrated" means that the transfer of in-
formation among modules occurs automatically. In a fully integrated system, the
shipping advice will generate the request for invoice automatically. This eliminates
the risk that the invoice request is not processed or is processed for a different
amount.
12. A copy of the purchase order (PO) is sent to the: A copy of the purchase
order (PO) is sent to the vendor. The purchase order is the formal document that
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, tells the vendor what material is needed, at what price, in what quantity and on
what date.
13. The departments involved in the purchasing process are purchasing,
receiving, inventory control and: The departments involved in the purchasing
process are purchasing, receiving, inventory control and accounts payable. Ac-
counts payable completes the purchasing process by authorizing and executing
the cash disbursement based on a signal from receiving or inventory control.
14. When a cash disbursement in payment of an accounts payable is record-
ed: When a cash disbursement in payment of an accounts payable is recorded the
liability account is decreased. On the Balance Sheet, accounts payable is a current
liability. When a cash disbursement is recorded, the liability will be reduced.
15. The greatest risk of misappropriation of funds occurs in: The greatest risk
of misappropriation of funds occurs in accounts payable. This may take the form
of payments for goods not ordered or received and to vendors that do not exist.
The risk can be reduced through supervision, segregation of duties, independent
verification, or automated processes.
16. In a firm with proper segregation of duties, adequate supervision as a
compensating control is still necessary in: In a firm with proper segregation
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, of duties, adequate supervision is most critical in receiving. Every day materials
arrive on the receiving dock. Until those receipts are recorded in the system, they
are invisible to anyone but the receivers and their supervisors. Supervision is
a compensating control appropriate before more automated controls take effect.
Scanning technology and automated three-way match are technological controls
that reduce risk.
17. The fixed asset system records the: The fixed asset system records the
purchase of a new plant. The fixed asset system records property, plant, and
equipment used in the operation of the business. These represent the largest
investments of the firm.
18. In a technology enabled payroll system, Personnel, Time Keeping, Payroll,
and Accounts Payable connect to which department to pay employees?: -
In a technology-enabled payroll system, Personnel, Time Keeping, Payroll and
Accounts Payable connect to cash disbursements to pay employees. Personnel
inputs the basic employee information and rate of pay; Time Keeping collects hours
worked and verifies time cards; Payroll inputs the hours worked into the payroll
system which calculates gross and net pay, taxes, and other deductions; Accounts
Payable approves the payment amount; and finally cash disbursements issues
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Correct Answers
1. Which of the following is a problem usually associated with the flat-file
approach to data management?: data redundancy
2. Which problem is characteristically associated with the flat-file approach
to data management?: the inability to determine what data is available
3. A description of the physical arrangement of records in the database
is: the internal view.
4. Which of the following may provide many distinct views of the database?-
: the user view
5. The update anomaly in unnormalized tables: occurs because of data redun-
dancy.
6. The deletion anomaly in unnormalized tables: may result in the loss of
important data.
7. Which document triggers the revenue cycle?: the customer purchase order
8. Which department is least likely to be involved in the revenue cycle?: The
accounts payable department is least likely to be involved in the revenue cycle.
Page 1 of 42
,Accounts payable is charged with managing the segment of the expenditure cycle
that involves payments to vendors and creditors.
9. The purpose of the sales invoice is to: The purpose of the sales invoice is to
bill the customer. The sales invoice will be sent to the customer for payment. At
the same time the invoice will also update inventory, send a journal to the general
ledger, and record the sales journal.
10. Which type of control is considered a compensating control for customer
payments?: Supervision is a compensating control for customer payments. Com-
pensating controls are put in place when more effective controls are deemed too
difficult or costly to implement. Supervision is the simplest and most common form
of compensating control.
11. Commercial accounting systems have fully integrated modules. The word
"integrated" means that: The word "integrated" means that the transfer of in-
formation among modules occurs automatically. In a fully integrated system, the
shipping advice will generate the request for invoice automatically. This eliminates
the risk that the invoice request is not processed or is processed for a different
amount.
12. A copy of the purchase order (PO) is sent to the: A copy of the purchase
order (PO) is sent to the vendor. The purchase order is the formal document that
Page 2 of 42
, tells the vendor what material is needed, at what price, in what quantity and on
what date.
13. The departments involved in the purchasing process are purchasing,
receiving, inventory control and: The departments involved in the purchasing
process are purchasing, receiving, inventory control and accounts payable. Ac-
counts payable completes the purchasing process by authorizing and executing
the cash disbursement based on a signal from receiving or inventory control.
14. When a cash disbursement in payment of an accounts payable is record-
ed: When a cash disbursement in payment of an accounts payable is recorded the
liability account is decreased. On the Balance Sheet, accounts payable is a current
liability. When a cash disbursement is recorded, the liability will be reduced.
15. The greatest risk of misappropriation of funds occurs in: The greatest risk
of misappropriation of funds occurs in accounts payable. This may take the form
of payments for goods not ordered or received and to vendors that do not exist.
The risk can be reduced through supervision, segregation of duties, independent
verification, or automated processes.
16. In a firm with proper segregation of duties, adequate supervision as a
compensating control is still necessary in: In a firm with proper segregation
Page 3 of 42
, of duties, adequate supervision is most critical in receiving. Every day materials
arrive on the receiving dock. Until those receipts are recorded in the system, they
are invisible to anyone but the receivers and their supervisors. Supervision is
a compensating control appropriate before more automated controls take effect.
Scanning technology and automated three-way match are technological controls
that reduce risk.
17. The fixed asset system records the: The fixed asset system records the
purchase of a new plant. The fixed asset system records property, plant, and
equipment used in the operation of the business. These represent the largest
investments of the firm.
18. In a technology enabled payroll system, Personnel, Time Keeping, Payroll,
and Accounts Payable connect to which department to pay employees?: -
In a technology-enabled payroll system, Personnel, Time Keeping, Payroll and
Accounts Payable connect to cash disbursements to pay employees. Personnel
inputs the basic employee information and rate of pay; Time Keeping collects hours
worked and verifies time cards; Payroll inputs the hours worked into the payroll
system which calculates gross and net pay, taxes, and other deductions; Accounts
Payable approves the payment amount; and finally cash disbursements issues
Page 4 of 42
