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D217 Practice Test Questions and Correct
Answers/ Latest Update / Already Graded
What are the advantages of using data coding in accounting
information systems?
Ans: Concisely representing large amounts of complex
information that would otherwise be unmanageable
How is the digital audit trail like the paper audit trail?
Ans: The digital audit trail allows transaction tracing.
What does an external auditor's responsibility involve?
Ans: Determining validity, accuracy, and completeness
Which type of digital computer file stores payroll programs and other
data that are used as standards for processing?
Ans: Reference file
With which cycle does the fixed asset system share some
characteristics?
Ans: Expenditure cycle
All rights reserved © 2025/ 2026 |
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Which company cycle transforms or converts input resources; such as
raw materials, labor, and overhead; into finished products or services
for sale?
Ans: Conversion cycle
Data coding involves creating simple numeric or alphabetic codes to
represent complex economic phenomena that facilitate efficient data
processing. Which problem does data coding solve?
Ans: An entry takes a great deal of recording space, is time -
consuming to record, and is prone to many types of errors.
Which information flow supports preparing the financial statements of
an organization?
Ans: Internal vertical
What is the relationship between the transaction processing system
(TPS) and the general ledger system (GLS)?
Ans: Data from the TPS are input for the GLS.
Which accounting information system (AIS) component provides
information to external users?
All rights reserved © 2025/ 2026 |
D217 Practice Test Questions and Correct
Answers/ Latest Update / Already Graded
What are the advantages of using data coding in accounting
information systems?
Ans: Concisely representing large amounts of complex
information that would otherwise be unmanageable
How is the digital audit trail like the paper audit trail?
Ans: The digital audit trail allows transaction tracing.
What does an external auditor's responsibility involve?
Ans: Determining validity, accuracy, and completeness
Which type of digital computer file stores payroll programs and other
data that are used as standards for processing?
Ans: Reference file
With which cycle does the fixed asset system share some
characteristics?
Ans: Expenditure cycle
All rights reserved © 2025/ 2026 |
, Page |2
Which company cycle transforms or converts input resources; such as
raw materials, labor, and overhead; into finished products or services
for sale?
Ans: Conversion cycle
Data coding involves creating simple numeric or alphabetic codes to
represent complex economic phenomena that facilitate efficient data
processing. Which problem does data coding solve?
Ans: An entry takes a great deal of recording space, is time -
consuming to record, and is prone to many types of errors.
Which information flow supports preparing the financial statements of
an organization?
Ans: Internal vertical
What is the relationship between the transaction processing system
(TPS) and the general ledger system (GLS)?
Ans: Data from the TPS are input for the GLS.
Which accounting information system (AIS) component provides
information to external users?
All rights reserved © 2025/ 2026 |
