AIS Exam 1 Questions with Correct Answers Fully Solved Latest 2025
An accounting information system must be able to perform which of the following tasks?
A. collect transaction data
B. process transaction data
C. provide adequate controls
D. All of these - Answers D. All of these
Paid time-off policies, job descriptions, and procedures manuals are examples of information needed to
support key decisions in what business process?
Select one:
A. sell merchandise
B. hire and train employees
C. acquire inventory
D. collect payment from customers - Answers B. hire and train employees
Which of the following statements below shows the contrast between data and information?
Select one:
A. Data and information are the same.
B. Data is more useful in decision making than information.
C. Information is the primary output of an accounting information system.
D. Data is the primary output of an accounting information system. - Answers C. Information is the
primary output of an accounting information system.
Before a firm can identify the information needed to effectively manage a process, the firm must
Select one:
A. obtain internet access.
B. hire an outside consultant.
C. purchase computers and/or workstations.
D. understand the process. - Answers D. understand the process.
,When a subsystem's goals are inconsistent with the goals of another subsystem or with the system as a
whole, it creates
Select one:
A. system inconsistence.
B. goal inconsistence.
C. system conflict.
D. goal conflict. - Answers D. goal conflict
Which of the following is not an example of a common activity in an AIS?
Select one:
A. sell goods and services and collect cash
B. buy and pay for goods and services
C. record sales calls for marketing purposes
D. summarize and report results to interested parties - Answers C. record sales calls for marketing
purposes
Identify the piece of information below that is typically needed to acquire a building.
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs - Answers D. capacity needs
When a subsystem achieves its goals while contributing to the organization's overall goal, it is called
Select one:
A. goal congruence.
B. system congruence.
C. goal match.
D. system match. - Answers B. system congruence.
,Which of the following is not one of the components of an AIS?
Select one:
A. internal controls and security measures
B. procedures and instructions
C. hardware
D. people - Answers C. hardware
Identify the piece of information below that is typically needed to acquire inventory.
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs - Answers B. vendor performance
Information is best described as
Select one:
A. the same thing as data.
B. data that has been organized and processed so that it is meaningful to the user.
C. raw facts about transactions.
D. facts that are useful when processed in a timely manner. - Answers B. data that has been organized
and processed so that it is meaningful to the user.
The primary objective of accounting is to
Select one:
A. ensure the profitability of an organization.
B. implement strong internal controls.
C. provide useful information to decision makers.
D. prepare financial statements. - Answers C. provide useful information to decision makers.
Identify the piece of information below that is typically needed to hire and train employees.
, Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs - Answers A. job descriptions
Many modern accounting software packages offer separate transaction cycle modules. What is the
reason for this?
Select one:
A. The nature of a given transaction cycle is the same irrespective of the type of organization.
B. Every organization does not need to implement all of the available transaction cycle modules.
C. A properly designed AIS does not use the concept of separate business transaction cycles to process
transactions.
D. Most businesses do not need the revenue cycle module as part of their AIS. - Answers B. Every
organization does not need to implement all of the available transaction cycle modules.
The value of information can best be determined by
Select one:
A. the extent to which it optimizes the value chain.
B. the benefits associated with obtaining the information minus the cost of producing it.
C. its relevance to decision makers.
D. its usefulness to decision makers. - Answers B. the benefits associated with obtaining the information
minus the cost of producing it.
An accounting information system (AIS) processes ________ to provide users with ________.
Select one:
A. information; data
B. data; benefits
C. data; transactions
D. data; information - Answers D. data; information
An accounting information system must be able to perform which of the following tasks?
A. collect transaction data
B. process transaction data
C. provide adequate controls
D. All of these - Answers D. All of these
Paid time-off policies, job descriptions, and procedures manuals are examples of information needed to
support key decisions in what business process?
Select one:
A. sell merchandise
B. hire and train employees
C. acquire inventory
D. collect payment from customers - Answers B. hire and train employees
Which of the following statements below shows the contrast between data and information?
Select one:
A. Data and information are the same.
B. Data is more useful in decision making than information.
C. Information is the primary output of an accounting information system.
D. Data is the primary output of an accounting information system. - Answers C. Information is the
primary output of an accounting information system.
Before a firm can identify the information needed to effectively manage a process, the firm must
Select one:
A. obtain internet access.
B. hire an outside consultant.
C. purchase computers and/or workstations.
D. understand the process. - Answers D. understand the process.
,When a subsystem's goals are inconsistent with the goals of another subsystem or with the system as a
whole, it creates
Select one:
A. system inconsistence.
B. goal inconsistence.
C. system conflict.
D. goal conflict. - Answers D. goal conflict
Which of the following is not an example of a common activity in an AIS?
Select one:
A. sell goods and services and collect cash
B. buy and pay for goods and services
C. record sales calls for marketing purposes
D. summarize and report results to interested parties - Answers C. record sales calls for marketing
purposes
Identify the piece of information below that is typically needed to acquire a building.
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs - Answers D. capacity needs
When a subsystem achieves its goals while contributing to the organization's overall goal, it is called
Select one:
A. goal congruence.
B. system congruence.
C. goal match.
D. system match. - Answers B. system congruence.
,Which of the following is not one of the components of an AIS?
Select one:
A. internal controls and security measures
B. procedures and instructions
C. hardware
D. people - Answers C. hardware
Identify the piece of information below that is typically needed to acquire inventory.
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs - Answers B. vendor performance
Information is best described as
Select one:
A. the same thing as data.
B. data that has been organized and processed so that it is meaningful to the user.
C. raw facts about transactions.
D. facts that are useful when processed in a timely manner. - Answers B. data that has been organized
and processed so that it is meaningful to the user.
The primary objective of accounting is to
Select one:
A. ensure the profitability of an organization.
B. implement strong internal controls.
C. provide useful information to decision makers.
D. prepare financial statements. - Answers C. provide useful information to decision makers.
Identify the piece of information below that is typically needed to hire and train employees.
, Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs - Answers A. job descriptions
Many modern accounting software packages offer separate transaction cycle modules. What is the
reason for this?
Select one:
A. The nature of a given transaction cycle is the same irrespective of the type of organization.
B. Every organization does not need to implement all of the available transaction cycle modules.
C. A properly designed AIS does not use the concept of separate business transaction cycles to process
transactions.
D. Most businesses do not need the revenue cycle module as part of their AIS. - Answers B. Every
organization does not need to implement all of the available transaction cycle modules.
The value of information can best be determined by
Select one:
A. the extent to which it optimizes the value chain.
B. the benefits associated with obtaining the information minus the cost of producing it.
C. its relevance to decision makers.
D. its usefulness to decision makers. - Answers B. the benefits associated with obtaining the information
minus the cost of producing it.
An accounting information system (AIS) processes ________ to provide users with ________.
Select one:
A. information; data
B. data; benefits
C. data; transactions
D. data; information - Answers D. data; information
