D561 Accounting Information System
Questions with 100% Correct Answers
How does data differ from information?
Information is output while data is input.
Which business process sells goods or services for cash or a future promise to receive
cash?
Revenue cycle
How can an AIS add value to an organization?
Improving the quality and reducing the costs of products or services
What is a potential effect of an Accounting Information System (AIS) that makes
information easily accessible and widely available?
It increases pressures for more decentralization and autonomy.
What is a potential benefit of using IT to redesign supply chain systems?
It can yield tremendous benefits and cost savings.
What is a primary purpose of a Business Process Diagram (BPD)?
BPDs provide a visual representation of the different steps or activities in a business process.
What is the role of a process in a Data Flow Diagram (DFD)?
Processes represent the transformation of data.
What is the purpose of using input/output symbols in a flowchart?
Input/output symbols show input to or output from a system.
,Which flowchart shows the relationship among input, processing, and output?
System flowchart
What is the term for the movement of data among processes, stores, sources, and
destinations?
Data flow
In a relational database, what does each row in a table represent?
Each row represents a specific occurrence of an entity.
What is the purpose of the referential integrity rule in a relational database?
The referential integrity rule ensures that foreign keys, if not null, must have values that
correspond to the value of a primary key in another table.
What is an advantage of using database systems in an organization?
Database systems facilitate cross-functional analysis by defining relationships.
Which is a benefit of database technology for organizations?
Data integration
What is the purpose of the internal-level schema in a database system?
It describes how the data are stored and accessed, including record layouts, definitions,
addresses, and indexes.
What are the four steps of the data processing lifecycle?
Data input, data processing, data storage, information output
What is the data processing lifecycle?
,The operations performed on data to generate meaningful and relevant information.
What are the four different types of data processing activities?
Reading, creating, deleting, and updating
What is a key advantage of Enterprise Resource Planning (ERP) systems over
traditional Accounting Information Systems (AIS)?
ERP systems integrate all aspects of a company's operations with a traditional AIS.
What is a significant disadvantage of implementing an Enterprise Resource Planning
(ERP) system?
ERP systems require a high cost and amount of time for implementation.
What are the processes implemented to provide reasonable assurance that assets are
safeguarded?
Internal controls
What is likely to happen if management has little concern for internal controls and risk
management?
Employees will be less diligent in achieving control objectives.
What are the four ways that management can respond to risk?
Reduce, accept, share, avoid
Which category of control procedure establishes authorization?
Proper authorization of transactions and activities
What is the purpose of the policy and procedures manual in an organization?
, It explains proper business practices, needed knowledge and experience, document
procedures, transaction handling, and lists resources provided to carry out specific duties.
What is the primary objective of the expenditure cycle?
To minimize the total cost of acquiring and maintaining inventories, supplies, and services
Which principle focuses on improving quality by reducing mistakes?
Six Sigma
What is a key measure to evaluate inventory management in an organization?
Inventory turnover
What is the primary objective of the economic order quantity (EOQ) approach to
managing inventory?
To minimize the sum of ordering, carrying, and stockout costs.
What is the purpose of adopting the Evaluated Receipt Settlement (ERS) approach as a
control measure in the expenditure cycle?
To eliminate potential errors in supplier invoices by paying based on the counts of received
goods matched with quoted prices.
Which unintentional act can pose a threat to an accounting information system?
Lost, erroneous, destroyed, or misplaced data
What is a common characteristic of a perpetrator in the misappropriation of assets?
The perpetrator uses trickery, cunning, or false or misleading information to commit fraud.
What is the most common way to commit a computer fraud?
Alter or falsify computer input
Questions with 100% Correct Answers
How does data differ from information?
Information is output while data is input.
Which business process sells goods or services for cash or a future promise to receive
cash?
Revenue cycle
How can an AIS add value to an organization?
Improving the quality and reducing the costs of products or services
What is a potential effect of an Accounting Information System (AIS) that makes
information easily accessible and widely available?
It increases pressures for more decentralization and autonomy.
What is a potential benefit of using IT to redesign supply chain systems?
It can yield tremendous benefits and cost savings.
What is a primary purpose of a Business Process Diagram (BPD)?
BPDs provide a visual representation of the different steps or activities in a business process.
What is the role of a process in a Data Flow Diagram (DFD)?
Processes represent the transformation of data.
What is the purpose of using input/output symbols in a flowchart?
Input/output symbols show input to or output from a system.
,Which flowchart shows the relationship among input, processing, and output?
System flowchart
What is the term for the movement of data among processes, stores, sources, and
destinations?
Data flow
In a relational database, what does each row in a table represent?
Each row represents a specific occurrence of an entity.
What is the purpose of the referential integrity rule in a relational database?
The referential integrity rule ensures that foreign keys, if not null, must have values that
correspond to the value of a primary key in another table.
What is an advantage of using database systems in an organization?
Database systems facilitate cross-functional analysis by defining relationships.
Which is a benefit of database technology for organizations?
Data integration
What is the purpose of the internal-level schema in a database system?
It describes how the data are stored and accessed, including record layouts, definitions,
addresses, and indexes.
What are the four steps of the data processing lifecycle?
Data input, data processing, data storage, information output
What is the data processing lifecycle?
,The operations performed on data to generate meaningful and relevant information.
What are the four different types of data processing activities?
Reading, creating, deleting, and updating
What is a key advantage of Enterprise Resource Planning (ERP) systems over
traditional Accounting Information Systems (AIS)?
ERP systems integrate all aspects of a company's operations with a traditional AIS.
What is a significant disadvantage of implementing an Enterprise Resource Planning
(ERP) system?
ERP systems require a high cost and amount of time for implementation.
What are the processes implemented to provide reasonable assurance that assets are
safeguarded?
Internal controls
What is likely to happen if management has little concern for internal controls and risk
management?
Employees will be less diligent in achieving control objectives.
What are the four ways that management can respond to risk?
Reduce, accept, share, avoid
Which category of control procedure establishes authorization?
Proper authorization of transactions and activities
What is the purpose of the policy and procedures manual in an organization?
, It explains proper business practices, needed knowledge and experience, document
procedures, transaction handling, and lists resources provided to carry out specific duties.
What is the primary objective of the expenditure cycle?
To minimize the total cost of acquiring and maintaining inventories, supplies, and services
Which principle focuses on improving quality by reducing mistakes?
Six Sigma
What is a key measure to evaluate inventory management in an organization?
Inventory turnover
What is the primary objective of the economic order quantity (EOQ) approach to
managing inventory?
To minimize the sum of ordering, carrying, and stockout costs.
What is the purpose of adopting the Evaluated Receipt Settlement (ERS) approach as a
control measure in the expenditure cycle?
To eliminate potential errors in supplier invoices by paying based on the counts of received
goods matched with quoted prices.
Which unintentional act can pose a threat to an accounting information system?
Lost, erroneous, destroyed, or misplaced data
What is a common characteristic of a perpetrator in the misappropriation of assets?
The perpetrator uses trickery, cunning, or false or misleading information to commit fraud.
What is the most common way to commit a computer fraud?
Alter or falsify computer input
