TEST BANK FOR Accounting Information /Actual
Questions And 100% Verified Correct Chapter ( 2024 -
2025 Version )
Revenue Cycle - CORRECT ANSWERS-Sales order processing, credit granting,
shipment, billing, cash receipts, and bank deposits
Expenditure Cycle - CORRECT ANSWERS-Acquisition of physical inventory,
authorizing payment, disbursing funds
Cost accounting system - CORRECT ANSWERS-Monitors the flow of cost information
related to production.
Expenditure cycle - CORRECT ANSWERS-Involves purchases/accounts payable,
acquisition of physical inventory, payment authorization, fund disbursement, labor
monitoring, and paycheck disbursement.
Conversion cycle - CORRECT ANSWERS-Includes releasing raw materials for
manufacturing, determining raw material amounts to order, and production subsystem.
Sequential Coding - CORRECT ANSWERS-A common use is identifying documents
Alphabetic Code - CORRECT ANSWERS-Meaning is readily conveyed to users
Cardinality - CORRECT ANSWERS-One to many connection
Virtual Storage Access Method - CORRECT ANSWERS-Disadvantage: It cannot insert
new records efficiently
Revenue cycle - CORRECT ANSWERS-Comprises cash receipts subsystem and sales
order processing subsystem.
Entity relationship diagram - CORRECT ANSWERS-Represents relationships between
entities in a system, used in database design.
Time lag - CORRECT ANSWERS-Characteristic distinguishing batch and real-time
systems; batch processing has a delay between event and recording, while real-time
systems process transactions instantly.
Resource use - CORRECT ANSWERS-Distinguishing feature between batch and real-
time systems; batch processing requires fewer resources compared to real-time
systems.
, System flowchart - CORRECT ANSWERS-Portrays relationships between source data,
files, programs, and output media.
Program flowchart - CORRECT ANSWERS-Illustrates the logic of a program with
symbols representing computer instructions.
DFD - CORRECT ANSWERS-Shows tasks performed but not who performs them,
depicting the logical system.
Flowchart - CORRECT ANSWERS-Effective for identifying who or what performs a
task, illustrating the physical system.
Batch processing - CORRECT ANSWERS-Used to improve operational efficiency by
updating non-critical accounts in batches, reducing processing delays.
Real-time processing - CORRECT ANSWERS-Works best for systems with high
transaction volumes, updating unique transaction records instantly and common
accounts in batch mode.
Program flowchart for auditing - CORRECT ANSWERS-Provides internal logic details
for designing audit tests during application program testing.
Correct Answer - CORRECT ANSWERS-When testing an application program, the
auditor needs details about its internal logic provided by the program flowchart to design
the audit tests.
Computer system flowcharts and program flowcharts relationship - CORRECT
ANSWERS-The system flowchart shows the relationship between two computer
programs, the files they use, and the outputs they produce. However, for assessing a
program's logic, a program flowchart is needed.
Key distinguishing features of legacy systems - CORRECT ANSWERS-Legacy systems
are mainframe-based, batch-oriented applications that use structured storage systems,
promoting a single-user environment.
Information provided by a record layout diagram - CORRECT ANSWERS-Record layout
diagrams reveal the internal structure of records in a file or database table, showing
attributes' names, data types, and lengths.
Master file backup procedure importance - CORRECT ANSWERS-Master file backup
maintains file integrity in case of errors or disasters, allowing reconstruction of the
current version from backups.
Reasons for using coding schemes in AISs - CORRECT ANSWERS-Coding schemes
in AISs represent complex information concisely, ensure transaction completeness,
identify unique transactions/accounts, and support auditing.
Questions And 100% Verified Correct Chapter ( 2024 -
2025 Version )
Revenue Cycle - CORRECT ANSWERS-Sales order processing, credit granting,
shipment, billing, cash receipts, and bank deposits
Expenditure Cycle - CORRECT ANSWERS-Acquisition of physical inventory,
authorizing payment, disbursing funds
Cost accounting system - CORRECT ANSWERS-Monitors the flow of cost information
related to production.
Expenditure cycle - CORRECT ANSWERS-Involves purchases/accounts payable,
acquisition of physical inventory, payment authorization, fund disbursement, labor
monitoring, and paycheck disbursement.
Conversion cycle - CORRECT ANSWERS-Includes releasing raw materials for
manufacturing, determining raw material amounts to order, and production subsystem.
Sequential Coding - CORRECT ANSWERS-A common use is identifying documents
Alphabetic Code - CORRECT ANSWERS-Meaning is readily conveyed to users
Cardinality - CORRECT ANSWERS-One to many connection
Virtual Storage Access Method - CORRECT ANSWERS-Disadvantage: It cannot insert
new records efficiently
Revenue cycle - CORRECT ANSWERS-Comprises cash receipts subsystem and sales
order processing subsystem.
Entity relationship diagram - CORRECT ANSWERS-Represents relationships between
entities in a system, used in database design.
Time lag - CORRECT ANSWERS-Characteristic distinguishing batch and real-time
systems; batch processing has a delay between event and recording, while real-time
systems process transactions instantly.
Resource use - CORRECT ANSWERS-Distinguishing feature between batch and real-
time systems; batch processing requires fewer resources compared to real-time
systems.
, System flowchart - CORRECT ANSWERS-Portrays relationships between source data,
files, programs, and output media.
Program flowchart - CORRECT ANSWERS-Illustrates the logic of a program with
symbols representing computer instructions.
DFD - CORRECT ANSWERS-Shows tasks performed but not who performs them,
depicting the logical system.
Flowchart - CORRECT ANSWERS-Effective for identifying who or what performs a
task, illustrating the physical system.
Batch processing - CORRECT ANSWERS-Used to improve operational efficiency by
updating non-critical accounts in batches, reducing processing delays.
Real-time processing - CORRECT ANSWERS-Works best for systems with high
transaction volumes, updating unique transaction records instantly and common
accounts in batch mode.
Program flowchart for auditing - CORRECT ANSWERS-Provides internal logic details
for designing audit tests during application program testing.
Correct Answer - CORRECT ANSWERS-When testing an application program, the
auditor needs details about its internal logic provided by the program flowchart to design
the audit tests.
Computer system flowcharts and program flowcharts relationship - CORRECT
ANSWERS-The system flowchart shows the relationship between two computer
programs, the files they use, and the outputs they produce. However, for assessing a
program's logic, a program flowchart is needed.
Key distinguishing features of legacy systems - CORRECT ANSWERS-Legacy systems
are mainframe-based, batch-oriented applications that use structured storage systems,
promoting a single-user environment.
Information provided by a record layout diagram - CORRECT ANSWERS-Record layout
diagrams reveal the internal structure of records in a file or database table, showing
attributes' names, data types, and lengths.
Master file backup procedure importance - CORRECT ANSWERS-Master file backup
maintains file integrity in case of errors or disasters, allowing reconstruction of the
current version from backups.
Reasons for using coding schemes in AISs - CORRECT ANSWERS-Coding schemes
in AISs represent complex information concisely, ensure transaction completeness,
identify unique transactions/accounts, and support auditing.
