AIS Exam 1 Chapters 1-4 Questions with Correct Answers Already Passed
A set of two or more interrelated components that interact to achieve a goal is - Answers a system
This results when a subsystem achieves its goals while contributing to the organization's overall goal. -
Answers goal congruence
Facts that are collected, recorded, stored and processed by an information system. - Answers data
Data that have been organized and processes to provide meaning to a user is - Answers information
Humans can absorb and process only so much information. Information _____ occurs when those limits
are passed. - Answers overload
An accounting information system (AIS) processes ____ to provide users with _____. - Answers data;
information
Data must be converted into information to be considered useful and meaningful for decision-making.
There are six characteristics that make information both useful and meaningful. If information is free
from error or bias and accurately represents the events or activities of the organization, it is
representative of the characteristic of - Answers reliability
An accounting information system must be able to perform which of the following tasks? - Answers
Process transaction data, collect transaction data, provide adequate controls
The primary objective of accounting is to - Answers provide useful information to decision makers
The primary focus of an AIS course, as opposed to other IS courses, is on - Answers understanding how
information technology can be used to improve AIS processes
An agreement between two entities to exchange goods or services or any other event that can be
measured in economic terms by an organization is - Answers transaction
Groups of related business activities such as the acquisition of merchandise and payment of vendors are
called - Answers transaction cycles
Which of the following is not a transaction cycle? - Answers general ledger and reporting
All transaction cycles feed information directly into the - Answers general ledger and reporting system
A typical source document could be - Answers in some paper form and a computer data entry screen
Certain documents or forms are generated and/or processed with each transaction cycle. The issuing of
a purchase order is part of which transaction cycle? - Answers the expenditure cycle
The general ledger account that corresponds to a subsidiary ledger account is known as a - Answers
control account
, A listing of general ledger accounts by account number is called the - Answers chart of accounts
Federal Express stated in one of its mission statements that "positive control of each package will be
maintained by utilizing.... electronic tracking and tracing systems." This is an example of which type of
data processing? - Answers real-time processing which features immediate updating as to the location
of packages
Name the major transaction cycles - Answers Revenue, expenditure, production, HR Payroll, and
financing
What is the purpose of source documents? what controls are embedded in source documents? Give two
examples of source documents? - Answers to record data about business activities. Source documents
standardize data collection procedures for an organization and provide better control and accuracy.
Source documents are generally pre-numbered, which helps to verify that all transactions have been
recorded and there is no missing document; if a document is missing, then which one can be
determined. Proper design of source documents ensures which information to collect, preprints
standard information such as addresses, and provides directions for completing the form. Examples:
INVOICES, TIMECARDS, SALES ORDERS, AND PURCHASE ORDERS.
What is an audit trail? - Answers a means to check the accuracy and validity of postings to the ledger.
The posting references and document numbers help provide the audit trail. An audit trail exists when
company transactions can be traced through the AIS from where originate to where they end up on the
financial statements.
What operational information should an AIS be capable of providing to management? - Answers reports
about inventory status, relative profitability of products, percentage of revenue generated by new
products, relative performance of each salesperson, cash collections and pending obligations, and an
organization's performance in meeting its deliver and service commitments. The AIS should also be able
to provide non-financial information connected with various transactions such as addresses, purchasing
histories, telephone and fax numbers, e-mail addresses, Web sites, etc.
The transformation of data in a DFD is represented as a - Answers process
The storage of data of a DFD is shown by - Answers two horizontal lines
Creating a DFD is an iterative process. Each DFD iteration helps the designer to refine the diagram and
identify the fine points. A DFD created at a high-level or summary view is referred to as a - Answers
context diagram
Data sources and destinations appear as - Answers squares
Data flows appear as - Answers arrows
Transformation processes appear as - Answers circles
Data stores appear as - Answers two horizontal lines
A set of two or more interrelated components that interact to achieve a goal is - Answers a system
This results when a subsystem achieves its goals while contributing to the organization's overall goal. -
Answers goal congruence
Facts that are collected, recorded, stored and processed by an information system. - Answers data
Data that have been organized and processes to provide meaning to a user is - Answers information
Humans can absorb and process only so much information. Information _____ occurs when those limits
are passed. - Answers overload
An accounting information system (AIS) processes ____ to provide users with _____. - Answers data;
information
Data must be converted into information to be considered useful and meaningful for decision-making.
There are six characteristics that make information both useful and meaningful. If information is free
from error or bias and accurately represents the events or activities of the organization, it is
representative of the characteristic of - Answers reliability
An accounting information system must be able to perform which of the following tasks? - Answers
Process transaction data, collect transaction data, provide adequate controls
The primary objective of accounting is to - Answers provide useful information to decision makers
The primary focus of an AIS course, as opposed to other IS courses, is on - Answers understanding how
information technology can be used to improve AIS processes
An agreement between two entities to exchange goods or services or any other event that can be
measured in economic terms by an organization is - Answers transaction
Groups of related business activities such as the acquisition of merchandise and payment of vendors are
called - Answers transaction cycles
Which of the following is not a transaction cycle? - Answers general ledger and reporting
All transaction cycles feed information directly into the - Answers general ledger and reporting system
A typical source document could be - Answers in some paper form and a computer data entry screen
Certain documents or forms are generated and/or processed with each transaction cycle. The issuing of
a purchase order is part of which transaction cycle? - Answers the expenditure cycle
The general ledger account that corresponds to a subsidiary ledger account is known as a - Answers
control account
, A listing of general ledger accounts by account number is called the - Answers chart of accounts
Federal Express stated in one of its mission statements that "positive control of each package will be
maintained by utilizing.... electronic tracking and tracing systems." This is an example of which type of
data processing? - Answers real-time processing which features immediate updating as to the location
of packages
Name the major transaction cycles - Answers Revenue, expenditure, production, HR Payroll, and
financing
What is the purpose of source documents? what controls are embedded in source documents? Give two
examples of source documents? - Answers to record data about business activities. Source documents
standardize data collection procedures for an organization and provide better control and accuracy.
Source documents are generally pre-numbered, which helps to verify that all transactions have been
recorded and there is no missing document; if a document is missing, then which one can be
determined. Proper design of source documents ensures which information to collect, preprints
standard information such as addresses, and provides directions for completing the form. Examples:
INVOICES, TIMECARDS, SALES ORDERS, AND PURCHASE ORDERS.
What is an audit trail? - Answers a means to check the accuracy and validity of postings to the ledger.
The posting references and document numbers help provide the audit trail. An audit trail exists when
company transactions can be traced through the AIS from where originate to where they end up on the
financial statements.
What operational information should an AIS be capable of providing to management? - Answers reports
about inventory status, relative profitability of products, percentage of revenue generated by new
products, relative performance of each salesperson, cash collections and pending obligations, and an
organization's performance in meeting its deliver and service commitments. The AIS should also be able
to provide non-financial information connected with various transactions such as addresses, purchasing
histories, telephone and fax numbers, e-mail addresses, Web sites, etc.
The transformation of data in a DFD is represented as a - Answers process
The storage of data of a DFD is shown by - Answers two horizontal lines
Creating a DFD is an iterative process. Each DFD iteration helps the designer to refine the diagram and
identify the fine points. A DFD created at a high-level or summary view is referred to as a - Answers
context diagram
Data sources and destinations appear as - Answers squares
Data flows appear as - Answers arrows
Transformation processes appear as - Answers circles
Data stores appear as - Answers two horizontal lines
