D217 Multiple Choice
Which of the following is NOT a financial transaction?
a. purchase of products
b. cash receipts
c. update valid vendor file
d. sale of inventory - C
The following are subsystems of the accounting information system, EXCEPT the
a. transaction processing system
b. human resources system
c. general ledger/financial reporting system
d. management reporting system - B
Which of the following is NOT a purpose of the transaction processing system?
a. managing and reporting on the status of financial investments
b. converting economic events into financial transactions
c. distributing essential information to operations personnel to support their daily operations
d. recording financial transactions in the accounting records - A
The objectives of the data collection activity of the general model for accounting information
systems are to collect data that are - D
Which of the following is NOT a characteristic of effective information?
a. relevance
b. accuracy
c. summarization
d. precision - D
Which of the following is NOT a database management risk?
a. retrieval
b. storage
c. summarization
d. deletion - C
When viewed from the highest to most elemental level, the data hierarchy is
a. attribute, record, file
b. record, attribute, key
c. file, record, attribute
d. file, record, key
e. key, record, file - C
,Which is NOT a source of evidence for an external auditor?
a. work performed by internal auditors who organizationally report to the controller
b. test of controls
c. substantive tests
d. work performed by internal auditors who report to the audit committee of the BOD - A
Which of the following is NOT an objective of all information systems?
a. support for the stewardship function of management
b. support for management decision making
c. support for day-to-day operations of the firm
d. all of the above are objectives - D
Which of the following best describes the activities of the materials management function?
a. purchasing, receiving, and inventory control
b. receiving, sales, distribution, and purchasing
c. receiving, sales, distribution, and purchasing
d. purchasing, receiving, and storage
e. purchasing, storage, and distribution - D
Which of the following best describes the activities of the production function?
a. maintenance, inventory control, and production planning
b. production planning, inventory control, manufacturing, and cost accounting
c. quality control, production planning, manufacturing and payroll
d. maintenance, production planning, storage, and quality control
e. manufacturing, quality control and maintenance - E
Which of the following best describes the activities of the accounting function?
a. inventory control, accounts payable, fixed assets, and payroll
b. fixed assets, accounts payable, cash disbursements, and cost accounting
c. purchasing, cash receipts, accounts payable, cash disbursements, and payroll
d. inventory control, cash receipts, accounts payable, cash disbursements, and payroll
e. inventory control, cost accounting, accounts payable, cash disbursements, and payroll - A
Which statement about cloud computing is most true?
a. cloud computing involves long-term contracts
b. cloud computing is location-independent computing
c. cloud computing involves an organization selling its IT resources to a vendor and leasing
back IT services from the vendor
d. cloud computing involves fixed price contracts
e. cloud computing involves signing entering into multiple contracts with each IP service
provider to create a cloud of resources - B
Which of the following statements is most accurate?
, a. ERP systems are commercial software packages that are sometimes called turnkey systems
because they can be implemented by the user with little or no modification
b. substantive tests provide evidence focused on the system controls
c. public accounting firms that provide attest services that are not allowed under SOX to offer IT
advisory services
d. both small and large firms that have standardized information needs are potential customers
for commercial software
e. external auditors may rely on the work of internal auditors only if they report to the controller
or the CEO of the client company - D
The production subsystem of the conversion cycle includes all of the following EXCEPT
a. determining raw materials requirements
b. make or buy decisions on component parts
c. release of raw materials into production
d. scheduling of goods to be produced - B
Which of the following files is a temporary file?
a. transaction file
b. master file
c. reference file
d. none of the above - A
Which statement is NOT true?
a. manufacturing firms have a conversion cycle but retail firms do not
b. the conversion cycle includes the task of determining raw materials requirements
c. a payroll check is an example of a product document of the payroll system
d. a journal voucher is actually a special source document
e. business activities begin with the acquisition of materials, property, and labor in exchange for
cash - A
Which of the following is NOT true?
a. sorting documents that are coded alphabetically tends to be more difficult for users that
sorting numeric sequences
b. mnemonic codes are limited in their ability to represent items within a class
c. sequential codes carry no information content beyond their order in the sequence
d. mnemonic coding requires the user to memorize codes - D
Which of the following is NOT an advantage of real-time processing of files over batch
processing?
a. shorter transaction processing time
b. reduction of inventory stocks
c. improved customer service
d. all are advantages - B
Which of the following is NOT a financial transaction?
a. purchase of products
b. cash receipts
c. update valid vendor file
d. sale of inventory - C
The following are subsystems of the accounting information system, EXCEPT the
a. transaction processing system
b. human resources system
c. general ledger/financial reporting system
d. management reporting system - B
Which of the following is NOT a purpose of the transaction processing system?
a. managing and reporting on the status of financial investments
b. converting economic events into financial transactions
c. distributing essential information to operations personnel to support their daily operations
d. recording financial transactions in the accounting records - A
The objectives of the data collection activity of the general model for accounting information
systems are to collect data that are - D
Which of the following is NOT a characteristic of effective information?
a. relevance
b. accuracy
c. summarization
d. precision - D
Which of the following is NOT a database management risk?
a. retrieval
b. storage
c. summarization
d. deletion - C
When viewed from the highest to most elemental level, the data hierarchy is
a. attribute, record, file
b. record, attribute, key
c. file, record, attribute
d. file, record, key
e. key, record, file - C
,Which is NOT a source of evidence for an external auditor?
a. work performed by internal auditors who organizationally report to the controller
b. test of controls
c. substantive tests
d. work performed by internal auditors who report to the audit committee of the BOD - A
Which of the following is NOT an objective of all information systems?
a. support for the stewardship function of management
b. support for management decision making
c. support for day-to-day operations of the firm
d. all of the above are objectives - D
Which of the following best describes the activities of the materials management function?
a. purchasing, receiving, and inventory control
b. receiving, sales, distribution, and purchasing
c. receiving, sales, distribution, and purchasing
d. purchasing, receiving, and storage
e. purchasing, storage, and distribution - D
Which of the following best describes the activities of the production function?
a. maintenance, inventory control, and production planning
b. production planning, inventory control, manufacturing, and cost accounting
c. quality control, production planning, manufacturing and payroll
d. maintenance, production planning, storage, and quality control
e. manufacturing, quality control and maintenance - E
Which of the following best describes the activities of the accounting function?
a. inventory control, accounts payable, fixed assets, and payroll
b. fixed assets, accounts payable, cash disbursements, and cost accounting
c. purchasing, cash receipts, accounts payable, cash disbursements, and payroll
d. inventory control, cash receipts, accounts payable, cash disbursements, and payroll
e. inventory control, cost accounting, accounts payable, cash disbursements, and payroll - A
Which statement about cloud computing is most true?
a. cloud computing involves long-term contracts
b. cloud computing is location-independent computing
c. cloud computing involves an organization selling its IT resources to a vendor and leasing
back IT services from the vendor
d. cloud computing involves fixed price contracts
e. cloud computing involves signing entering into multiple contracts with each IP service
provider to create a cloud of resources - B
Which of the following statements is most accurate?
, a. ERP systems are commercial software packages that are sometimes called turnkey systems
because they can be implemented by the user with little or no modification
b. substantive tests provide evidence focused on the system controls
c. public accounting firms that provide attest services that are not allowed under SOX to offer IT
advisory services
d. both small and large firms that have standardized information needs are potential customers
for commercial software
e. external auditors may rely on the work of internal auditors only if they report to the controller
or the CEO of the client company - D
The production subsystem of the conversion cycle includes all of the following EXCEPT
a. determining raw materials requirements
b. make or buy decisions on component parts
c. release of raw materials into production
d. scheduling of goods to be produced - B
Which of the following files is a temporary file?
a. transaction file
b. master file
c. reference file
d. none of the above - A
Which statement is NOT true?
a. manufacturing firms have a conversion cycle but retail firms do not
b. the conversion cycle includes the task of determining raw materials requirements
c. a payroll check is an example of a product document of the payroll system
d. a journal voucher is actually a special source document
e. business activities begin with the acquisition of materials, property, and labor in exchange for
cash - A
Which of the following is NOT true?
a. sorting documents that are coded alphabetically tends to be more difficult for users that
sorting numeric sequences
b. mnemonic codes are limited in their ability to represent items within a class
c. sequential codes carry no information content beyond their order in the sequence
d. mnemonic coding requires the user to memorize codes - D
Which of the following is NOT an advantage of real-time processing of files over batch
processing?
a. shorter transaction processing time
b. reduction of inventory stocks
c. improved customer service
d. all are advantages - B
