AIS SUA QUESTIONS AND ANSWERS 2026
is used to ensures that the company is creating value. - Answers - The Accounting
System
The accounting system is a subset of the management reporting system that is primarily
concerned with compiling the financial statements required by - Answers - SEC and
FASB.
The accounting system is used to
A. Measure, record, categorize, and summarize the daily operating activities of the
business in monetary terms
B. Provide accountability of all levels of management for their delegated responsibilities
C. Protect business assets from unauthorized use or consumption
D. All of the Above - Answers - D. All of the above
Each Cycle in the Value Chain has two characteristics - Answers - Duality and
Stockflow
Each event has at least one inflow and one outflow of a resource. - Answers - Stockflow
For each event that the firm gives something, we expect a related event in which the
firm receives something. - Answers - Duality
Used to determine quantities to ship to customers and amount to bill. - Answers -
Customer purchase order
- Provide information for recording the sales transaction. - Answers - Sales invoices
True/False
Documents can be prepared before a transaction occurs, at the same time it occurs,
after the transaction is completed. - Answers - True
is the set of general ledger accounts defined for a particular accounting company. -
Answers - Chart of Accounts
is a multidimensional structure represented in the account numbers, defined through the
account number's coding and summarized through the financial reporting structure. -
Answers - Chart of Accounts
True/False
The Chart of Accounts is simply a list of accounts but a model of the organization. -
Answers - False
,Which of the following are month end procedures?
A. Foot and Crossfoot each of the Journals
B. Adjusting Entries are Performed
C. Totals are posted to the general ledger
D. All of the above
E. A + C only - Answers - E. A + C only
summarizes the transactions in the journals by account balance. - Answers - General
Ledger
True/False
For the general journal, Totals are posted to the general ledger. - Answers - False.
Individual transactions are posted
reconciles the amount in the subsidiary ledger to the amount in the general ledger. -
Answers - Trial Balances
are journal entries usually made at the end of an accounting period to allocate income
and expenditures to the period in which they actually occurred. - Answers - Adjusting
Entries
True/False
Adjusting entries are made in the general ledger and posted to the general journal -
Answers - False
True/False
Each adjusting entry Either affects the balance sheet or the income statement -
Answers - False, adjusting entries affect both the balance sheet and the income
statement. (e.g., a depreciation entry debits an expense account (I/S) and credits an
asset or asset offset account (B/S)
is the primary input to preparing financial statements. - Answers - The adjusted trial
balance
Which of the following are Closing Entries?
A. Closing revenue accounts (to income summary)
B. Closing expense accounts (to income summary)
C. Transferring profit or loss to equity account(s)
D. All of the Above - Answers - All of the Above
Name 4 benefits of Flowcharting - Answers - 1. Minimizes likelihood of an incomplete or
ineffective Accounting System.
2. Provides Training for New Employees
3. Identifies ways to improve system.
4. Provides information for auditors and accountants
,Which section of SOX requires Management to maintain a system of internal control
over financial reporting? - Answers - 404
a diagram that graphically shows a company's documents and records and their
sequential flow in the organization. - Answers - Flowchart
True/False
Flowcharts are superior to narratives (i.e. written descriptions of a company's
accounting system) - Answers - True
Flowcharts help with all of the following except:
A. Depict the flow of transactions.
B. Identify the points within the entity's processes at which a misstatement - including a
misstatement due to fraud - could arise
C. Identify the controls
D. Provide management with the requisite documentation to evidence their assessment
of ICOFR.
E. All of the above are benefits. - Answers - E. all of the above are benefits
Action take by a human or computer that causes a change in value, form or location of
information. - Answers - Process
Beginning, ending, or interruption of flowchart: used to indicate information entering or
leaving system. Example receipt of order from customer. - Answers - Terminal
What symbol is used to detail the off-line storage of a document in a flowchart -
Answers - Upside down Triangle
What is the symbol for a manual operation or process used in flowcharting? - Answers -
Upside down Trapezoid
What is the symbol for a journal/ledger entry used in flowchart? - Answers -
Parrallelogram
In a flowchart, a dotted line indicates what? - Answers - Only information flow, not
document flow
Which Document does not accompany a sale transaction?
A. Customer PO
B. Packing Slip
C. Invoice
D. Remittance Advice - Answers - D. Remittance Advice
Which of the following journals is not used for a cash receipt transaction?
A. Cash receipts journal
B. Sales Journal
, C. Accounts receivable subsidiary ledger
D. All of the above are used - Answers - B. Sales Journal
True/False
A sales transaction can use either a sales or cash receipt journal - Answers - True
Which of the following journals is not used for a sales return transaction?
A. Cash receipts journal
B. Sales Journal
C. Accounts receivable subsidiary ledger
D. All of the Above - Answers - A. Cash Receipts Journal
Which of the following documents does not accompany a Cash Receipt transaction?
A. Remittance advice
B. Bill of Lading
C. Cash receipts prelist
D. Deposit slip - Answers - B. Bill of Lading
What Journal do you record estimation of bad debt and write off uncollectible accounts?
- Answers - General Journal
The contract commonly used by customers is called a purchase order. - Answers -
Purchase Order
Customers that frequently purchase the same items from a supplier (i.e. a bakery
purchasing flour) will sometimes use a __________. - Answers - Blanket order (order
that calls for several shipments to the same customer over a specified time period.)
Once a sales order has been approved, what three documents are generated? -
Answers - Picking slip, Packing slip, and Bill of Lading
is a document that identifies the goods that have shipped to a customer. - Answers -
packing slip
authorizes the warehouse employee to "pick" the goods out of the warehouse. It lists
the quantity and description of each item that is included in the shipment, as well as the
location in the warehouse. - Answers - Picking slip
indicates the transfer of custody of goods from the company to a common carrier. -
Answers - Bill of Lading
True/False
The billing activity does not occur until the goods are shipped. - Answers - True
is a document informing the customer of the amount owed for the merchandise shipped
(or services provided). - Answers - Sales Invoice
is used to ensures that the company is creating value. - Answers - The Accounting
System
The accounting system is a subset of the management reporting system that is primarily
concerned with compiling the financial statements required by - Answers - SEC and
FASB.
The accounting system is used to
A. Measure, record, categorize, and summarize the daily operating activities of the
business in monetary terms
B. Provide accountability of all levels of management for their delegated responsibilities
C. Protect business assets from unauthorized use or consumption
D. All of the Above - Answers - D. All of the above
Each Cycle in the Value Chain has two characteristics - Answers - Duality and
Stockflow
Each event has at least one inflow and one outflow of a resource. - Answers - Stockflow
For each event that the firm gives something, we expect a related event in which the
firm receives something. - Answers - Duality
Used to determine quantities to ship to customers and amount to bill. - Answers -
Customer purchase order
- Provide information for recording the sales transaction. - Answers - Sales invoices
True/False
Documents can be prepared before a transaction occurs, at the same time it occurs,
after the transaction is completed. - Answers - True
is the set of general ledger accounts defined for a particular accounting company. -
Answers - Chart of Accounts
is a multidimensional structure represented in the account numbers, defined through the
account number's coding and summarized through the financial reporting structure. -
Answers - Chart of Accounts
True/False
The Chart of Accounts is simply a list of accounts but a model of the organization. -
Answers - False
,Which of the following are month end procedures?
A. Foot and Crossfoot each of the Journals
B. Adjusting Entries are Performed
C. Totals are posted to the general ledger
D. All of the above
E. A + C only - Answers - E. A + C only
summarizes the transactions in the journals by account balance. - Answers - General
Ledger
True/False
For the general journal, Totals are posted to the general ledger. - Answers - False.
Individual transactions are posted
reconciles the amount in the subsidiary ledger to the amount in the general ledger. -
Answers - Trial Balances
are journal entries usually made at the end of an accounting period to allocate income
and expenditures to the period in which they actually occurred. - Answers - Adjusting
Entries
True/False
Adjusting entries are made in the general ledger and posted to the general journal -
Answers - False
True/False
Each adjusting entry Either affects the balance sheet or the income statement -
Answers - False, adjusting entries affect both the balance sheet and the income
statement. (e.g., a depreciation entry debits an expense account (I/S) and credits an
asset or asset offset account (B/S)
is the primary input to preparing financial statements. - Answers - The adjusted trial
balance
Which of the following are Closing Entries?
A. Closing revenue accounts (to income summary)
B. Closing expense accounts (to income summary)
C. Transferring profit or loss to equity account(s)
D. All of the Above - Answers - All of the Above
Name 4 benefits of Flowcharting - Answers - 1. Minimizes likelihood of an incomplete or
ineffective Accounting System.
2. Provides Training for New Employees
3. Identifies ways to improve system.
4. Provides information for auditors and accountants
,Which section of SOX requires Management to maintain a system of internal control
over financial reporting? - Answers - 404
a diagram that graphically shows a company's documents and records and their
sequential flow in the organization. - Answers - Flowchart
True/False
Flowcharts are superior to narratives (i.e. written descriptions of a company's
accounting system) - Answers - True
Flowcharts help with all of the following except:
A. Depict the flow of transactions.
B. Identify the points within the entity's processes at which a misstatement - including a
misstatement due to fraud - could arise
C. Identify the controls
D. Provide management with the requisite documentation to evidence their assessment
of ICOFR.
E. All of the above are benefits. - Answers - E. all of the above are benefits
Action take by a human or computer that causes a change in value, form or location of
information. - Answers - Process
Beginning, ending, or interruption of flowchart: used to indicate information entering or
leaving system. Example receipt of order from customer. - Answers - Terminal
What symbol is used to detail the off-line storage of a document in a flowchart -
Answers - Upside down Triangle
What is the symbol for a manual operation or process used in flowcharting? - Answers -
Upside down Trapezoid
What is the symbol for a journal/ledger entry used in flowchart? - Answers -
Parrallelogram
In a flowchart, a dotted line indicates what? - Answers - Only information flow, not
document flow
Which Document does not accompany a sale transaction?
A. Customer PO
B. Packing Slip
C. Invoice
D. Remittance Advice - Answers - D. Remittance Advice
Which of the following journals is not used for a cash receipt transaction?
A. Cash receipts journal
B. Sales Journal
, C. Accounts receivable subsidiary ledger
D. All of the above are used - Answers - B. Sales Journal
True/False
A sales transaction can use either a sales or cash receipt journal - Answers - True
Which of the following journals is not used for a sales return transaction?
A. Cash receipts journal
B. Sales Journal
C. Accounts receivable subsidiary ledger
D. All of the Above - Answers - A. Cash Receipts Journal
Which of the following documents does not accompany a Cash Receipt transaction?
A. Remittance advice
B. Bill of Lading
C. Cash receipts prelist
D. Deposit slip - Answers - B. Bill of Lading
What Journal do you record estimation of bad debt and write off uncollectible accounts?
- Answers - General Journal
The contract commonly used by customers is called a purchase order. - Answers -
Purchase Order
Customers that frequently purchase the same items from a supplier (i.e. a bakery
purchasing flour) will sometimes use a __________. - Answers - Blanket order (order
that calls for several shipments to the same customer over a specified time period.)
Once a sales order has been approved, what three documents are generated? -
Answers - Picking slip, Packing slip, and Bill of Lading
is a document that identifies the goods that have shipped to a customer. - Answers -
packing slip
authorizes the warehouse employee to "pick" the goods out of the warehouse. It lists
the quantity and description of each item that is included in the shipment, as well as the
location in the warehouse. - Answers - Picking slip
indicates the transfer of custody of goods from the company to a common carrier. -
Answers - Bill of Lading
True/False
The billing activity does not occur until the goods are shipped. - Answers - True
is a document informing the customer of the amount owed for the merchandise shipped
(or services provided). - Answers - Sales Invoice
