Test Bank for Accounting Information Systems 15th Edition Romney

,DOWNLOAD THE Test Bank for Accounting Information Systems 15th Edition
Romney


Accounting Information Systems, 15e (Romney)
Chapter 2 Overview of Transaction Processing and Enterprise Resource
Planning Systems

1 Explain how an accounting information system (AIS) adds value to an organization, how it
affects and is affected by corporate strategy, and its role in a value chain.

1) Which of the following commonly initiates the data input process?
A) a business activity
B) automatic batch processing
C) an accounting department source document
D) a trial balance query
Answer: A
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

2) A typical source document could be
A) some type of paper document.
B) a computer data entry screen.
C) the company's financial statements.
D) both A and B
Answer: D
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

3) Which of the following is not considered a source document?
A) a copy of the company's financial statements
B) a copy of the company's shipping document
C) a copy of the company's sales journal
D) a copy of the company's ledger
Answer: A
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking




1
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,DOWNLOAD THE Test Bank for Accounting Information Systems 15th Edition
Romney


4) Which step below is not considered to be part of the data processing cycle?
A) data input
B) feedback from external sources
C) data storage
D) data processing
Answer: B
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

5) John Pablo works in the accounting department of a multinational manufacturing company.
His job includes updating accounts receivable based on sales orders and remittance advices. His
responsibilities are part of the company's
A) revenue cycle.
B) expenditure cycle.
C) financing cycle.
D) production cycle.
Answer: A
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Reflective Thinking

6) John Pablo works in the accounting department of a multinational manufacturing company.
His job includes updating accounts payable based on purchase orders and checks. His
responsibilities are part of the company's
A) revenue cycle.
B) expenditure cycle.
C) financing cycle.
D) production cycle.
Answer: B
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Reflective Thinking




2
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, DOWNLOAD THE Test Bank for Accounting Information Systems 15th Edition
Romney


7) Many small businesses choose to outsource their payroll activities to firms that specialize in
providing payroll services. Dolores Yu operates a payroll processing business in Calabasas,
California. When she sends bills out to her clients, her work is part of her firm's
A) revenue cycle.
B) expenditure cycle.
C) financing cycle.
D) production cycle.
Answer: A
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Reflective Thinking

8) A delivery of inventory from a vendor, with whom a credit line is already established, would
be initially recorded in which type of accounting record and as part of what transaction cycle?
A) purchases journal; expenditure cycle
B) general journal; expenditure cycle
C) general ledger; expenditure cycle
D) cash disbursements journal; production cycle
Answer: A
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Challenging
AACSB: Reflective Thinking

9) Making payments to a vendor, with whom a credit line is already established, would be
initially recorded in which type of accounting record and as part of what transaction cycle?
A) purchases journal; expenditure cycle
B) general journal; expenditure cycle
C) general ledger; expenditure cycle
D) cash disbursements journal; expenditure cycle
Answer: D
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Challenging
AACSB: Reflective Thinking

10) Describe the basic cycles and business activities for a typical merchandising company.
Answer: Revenue cycle—deliver inventory to customers and collect cash. Expenditure cycle—
receive goods and services from vendors and pay cash. Human resources cycle—track hours
worked by employees and record withholding data.
Concept: Transaction processing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking



3
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