WGU D217 ACCOUNTING INFORMATION SYSTEMS
EVALUATION TEST QUESTIONS AND ANSWERS
SURE A+
✔✔Paychecks are distributed by the employees' immediate supervisor. - ✔✔Which of
the following situations represents an internal control weakness?
✔✔Fully depreciated assets are disposed of immediately. - ✔✔Which of the following is
NOT a reasonable control for fixed assets?
✔✔balances for each account in the chart of accounts - ✔✔What type of data is found
in the general ledger master file?
✔✔comparative balance sheet - ✔✔Which report is an output of the financial reporting
system (FRS)?
✔✔that it focuses on internal decision-making information. - ✔✔A characteristic of the
management reporting system (MRS) is
✔✔volume, velocity, and variety of data - ✔✔Big data analytics are characterized by
✔✔It tells that user what actions should be taken in response to specific questions. -
✔✔What function does prescriptive analytics serve?
✔✔Sales order - ✔✔Which item reflects vital information such as quantities and unit
prices?
✔✔A credit memo issues automatically. - ✔✔How do inventory control functions adjust
inventory at the time of a return?
,✔✔The sales clerk allows customers who are not creditworthy to buy items on the
charge account. - ✔✔Which risk is associated with charge accounts within the revenue
cycle?
✔✔Updating inventory - ✔✔Which function reflects the expenditure cycle?
✔✔Reconcile and verify contents - ✔✔What is the purpose of the blind copy?
✔✔Buildings - ✔✔Which item reflects fixed assets?
✔✔Implementation of agreements - ✔✔What contributes to the success of the
electronic date interchange system?
✔✔Direct deposit - ✔✔What is an example of a payroll system information technology
(IT) control?
✔✔Accounts payable - ✔✔Which department is responsible for receiving the supplier's
invoice, the purchase order, and the receiving report in order to post the acquisition of
fixed assets?
✔✔Hours worked - ✔✔Which information from timecards provides an audit trail to
support financial reporting?
✔✔Journal vouchers are reviewed and approved as part of a system of internal control
to ensure GL entries are authorized. - ✔✔Why are journal vouchers reviewed and
approved before entry into the general ledger (GL)?
✔✔A management reporting system contains data that can be used to monitor the
company. - ✔✔Why is a management reporting system a control?
✔✔The file uses the same format as the general ledger master, and therefore, the
account structure will be the same for information year to year. - ✔✔Why is the general
ledger history file used for comparative financial reports?
✔✔A comparison of budgets to actual amounts and review of the variance. - ✔✔Which
comparison serves as a tool for managers by using data from the budget master file and
from the responsibility center file?
✔✔The agreement details the quantities to be sold, guaranteed delivery times, payment
terms, and methods handling disputes. - ✔✔Which strategic agreement is made
between buyer and seller for electronic data interchange?
✔✔Buyer refusing due to late arrival. - ✔✔What is a reason for sales returns?
, ✔✔Unauthorized purchases - ✔✔What is a risk associated with one clerk receiving
inventory?
✔✔To review and examine content reported - ✔✔What is the importance of supervisory
control?
✔✔To reduce fraud - ✔✔What is the purpose of authorized vendors?
✔✔The clerk must count and inspect all deliveries to ensure receipt of the right product.
- ✔✔Which procedure should be followed when receiving goods?
✔✔Hours worked - ✔✔Which information from timecards provides an audit trail to
support financial reporting?
✔✔Debit work-in-process; credit wages payable - ✔✔Which entry is made to record
wages payable?
✔✔Review and approval of the number of hours worked - ✔✔Which task is included
when a supervisor reviews and approves employee time (timecards, time sheets and
job tickets)?
✔✔Special journals and subsidiary accounts of the general ledger - ✔✔Which journals
record the results of the transaction cycle?
✔✔A management reporting system contains data that can be used to monitor the
company. - ✔✔Why is a management reporting system a control?
✔✔A real-time general ledger/financial reporting system uses integrated transaction
processing for concurrent posting in the system. - ✔✔Which efficiencies do real-time
general ledger/financial reporting systems have on an organization's ability to produce
financial statements?
✔✔"Committee of Sponsoring Organizations of the Treadway Commission (COSC) -
✔✔Which control framework does the general ledger/financial reporting system
(GL/FRS) follow?
✔✔data redundancy - ✔✔Which of the following is a problem usually associated with
the flat-file approach to data management?
✔✔the inability to determine what data is available - ✔✔Which problem is
characteristically associated with the flat-file approach to data management?
EVALUATION TEST QUESTIONS AND ANSWERS
SURE A+
✔✔Paychecks are distributed by the employees' immediate supervisor. - ✔✔Which of
the following situations represents an internal control weakness?
✔✔Fully depreciated assets are disposed of immediately. - ✔✔Which of the following is
NOT a reasonable control for fixed assets?
✔✔balances for each account in the chart of accounts - ✔✔What type of data is found
in the general ledger master file?
✔✔comparative balance sheet - ✔✔Which report is an output of the financial reporting
system (FRS)?
✔✔that it focuses on internal decision-making information. - ✔✔A characteristic of the
management reporting system (MRS) is
✔✔volume, velocity, and variety of data - ✔✔Big data analytics are characterized by
✔✔It tells that user what actions should be taken in response to specific questions. -
✔✔What function does prescriptive analytics serve?
✔✔Sales order - ✔✔Which item reflects vital information such as quantities and unit
prices?
✔✔A credit memo issues automatically. - ✔✔How do inventory control functions adjust
inventory at the time of a return?
,✔✔The sales clerk allows customers who are not creditworthy to buy items on the
charge account. - ✔✔Which risk is associated with charge accounts within the revenue
cycle?
✔✔Updating inventory - ✔✔Which function reflects the expenditure cycle?
✔✔Reconcile and verify contents - ✔✔What is the purpose of the blind copy?
✔✔Buildings - ✔✔Which item reflects fixed assets?
✔✔Implementation of agreements - ✔✔What contributes to the success of the
electronic date interchange system?
✔✔Direct deposit - ✔✔What is an example of a payroll system information technology
(IT) control?
✔✔Accounts payable - ✔✔Which department is responsible for receiving the supplier's
invoice, the purchase order, and the receiving report in order to post the acquisition of
fixed assets?
✔✔Hours worked - ✔✔Which information from timecards provides an audit trail to
support financial reporting?
✔✔Journal vouchers are reviewed and approved as part of a system of internal control
to ensure GL entries are authorized. - ✔✔Why are journal vouchers reviewed and
approved before entry into the general ledger (GL)?
✔✔A management reporting system contains data that can be used to monitor the
company. - ✔✔Why is a management reporting system a control?
✔✔The file uses the same format as the general ledger master, and therefore, the
account structure will be the same for information year to year. - ✔✔Why is the general
ledger history file used for comparative financial reports?
✔✔A comparison of budgets to actual amounts and review of the variance. - ✔✔Which
comparison serves as a tool for managers by using data from the budget master file and
from the responsibility center file?
✔✔The agreement details the quantities to be sold, guaranteed delivery times, payment
terms, and methods handling disputes. - ✔✔Which strategic agreement is made
between buyer and seller for electronic data interchange?
✔✔Buyer refusing due to late arrival. - ✔✔What is a reason for sales returns?
, ✔✔Unauthorized purchases - ✔✔What is a risk associated with one clerk receiving
inventory?
✔✔To review and examine content reported - ✔✔What is the importance of supervisory
control?
✔✔To reduce fraud - ✔✔What is the purpose of authorized vendors?
✔✔The clerk must count and inspect all deliveries to ensure receipt of the right product.
- ✔✔Which procedure should be followed when receiving goods?
✔✔Hours worked - ✔✔Which information from timecards provides an audit trail to
support financial reporting?
✔✔Debit work-in-process; credit wages payable - ✔✔Which entry is made to record
wages payable?
✔✔Review and approval of the number of hours worked - ✔✔Which task is included
when a supervisor reviews and approves employee time (timecards, time sheets and
job tickets)?
✔✔Special journals and subsidiary accounts of the general ledger - ✔✔Which journals
record the results of the transaction cycle?
✔✔A management reporting system contains data that can be used to monitor the
company. - ✔✔Why is a management reporting system a control?
✔✔A real-time general ledger/financial reporting system uses integrated transaction
processing for concurrent posting in the system. - ✔✔Which efficiencies do real-time
general ledger/financial reporting systems have on an organization's ability to produce
financial statements?
✔✔"Committee of Sponsoring Organizations of the Treadway Commission (COSC) -
✔✔Which control framework does the general ledger/financial reporting system
(GL/FRS) follow?
✔✔data redundancy - ✔✔Which of the following is a problem usually associated with
the flat-file approach to data management?
✔✔the inability to determine what data is available - ✔✔Which problem is
characteristically associated with the flat-file approach to data management?
