WGU D217 Practice Test Questions with Correct Answers Latest Update 2025/2026
What are the advantages of using data coding in accounting information systems? - Answers
Concisely representing large amounts of complex information that would otherwise be
unmanageable
How is the digital audit trail like the paper audit trail? - Answers The digital audit trail allows
transaction tracing.
What does an external auditor's responsibility involve? - Answers Determining validity, accuracy,
and completeness
Which type of digital computer file stores payroll programs and other data that are used as
standards for processing? - Answers Reference file
With which cycle does the fixed asset system share some characteristics? - Answers
Expenditure cycle
Which company cycle transforms or converts input resources; such as raw materials, labor, and
overhead; into finished products or services for sale? - Answers Conversion cycle
Data coding involves creating simple numeric or alphabetic codes to represent complex
economic phenomena that facilitate efficient data processing. Which problem does data coding
solve? - Answers An entry takes a great deal of recording space, is time-consuming to record,
and is prone to many types of errors.
Which information flow supports preparing the financial statements of an organization? -
Answers Internal vertical
What is the relationship between the transaction processing system (TPS) and the general
ledger system (GLS)? - Answers Data from the TPS are input for the GLS.
Which accounting information system (AIS) component provides information to external users?
- Answers Financial reporting system (FRS)
Useful information has the following characteristics: relevance, timeliness, accuracy,
completeness, and summarization. What happens if the information is irrelevant? - Answers The
decision maker wastes time analyzing the information.
A grocery store updates its inventory levels in the accounting information system in real time.
However, the store frequently reports petty theft and has trouble locating inventory on the shop
floor. Which characteristic of useful information is missing from this scenario? - Answers
Reliable
Which component of an information system is used to produce an operational budget? -
Answers Management reporting system (MRS)
, Why would an organization decide to buy a turnkey information system (IS)? - Answers The
organization can implement it with little or no modification.
Who are the primary recipients of financial information? - Answers Investors and creditors
Which item represents a characteristic of a detailed and rich audit trail for a general ledger? -
Answers Providing a means for detecting errors
Which risk does automating general ledger (GL) postings pose to a company? - Answers Having
no human intervention means the company could have errors in the data.
What describes the network of information that can be used as an audit trail? - Answers
Documents, journals, and ledgers
What is the purpose of a purchase requisition? - Answers The purchase requisition ensures
items purchased are only from authorized vendors.
What are the accounting functions for the accounts payable? - Answers Collect data and
invoices to properly complete transactions
How do internal controls affect daily activities? - Answers They protect an organization from
risk, and therefore, physical controls and IT controls are used.
Which items make up the three-way match? - Answers Supplier's invoice, receiving report and
purchase order
Which items does a payroll department need in order to prepare the payroll register? - Answers
Pay rate, withholding information, and hours worked
Which document contains details on the acquisition of a fixed asset? - Answers Depreciation
report
Which process represents proper design for funding a payroll imprest account? - Answers The
Cash Disbursements department creates a single check to fund the payroll imprest account for
the company payroll disbursement.
Which items are included in the subsidiary ledger? - Answers Customer name, customer
address, current balance, available credit, transaction dates, invoice numbers, credit for
payments, returns
What are the duties of the mail room clerk? - Answers The mail room clerk opens the envelopes
and reconciles checks and remittances.
What is a method for verification control? - Answers A copy of the signature to verify the
signature
How many surprise checks must an organization undergo annually to maintain the International
What are the advantages of using data coding in accounting information systems? - Answers
Concisely representing large amounts of complex information that would otherwise be
unmanageable
How is the digital audit trail like the paper audit trail? - Answers The digital audit trail allows
transaction tracing.
What does an external auditor's responsibility involve? - Answers Determining validity, accuracy,
and completeness
Which type of digital computer file stores payroll programs and other data that are used as
standards for processing? - Answers Reference file
With which cycle does the fixed asset system share some characteristics? - Answers
Expenditure cycle
Which company cycle transforms or converts input resources; such as raw materials, labor, and
overhead; into finished products or services for sale? - Answers Conversion cycle
Data coding involves creating simple numeric or alphabetic codes to represent complex
economic phenomena that facilitate efficient data processing. Which problem does data coding
solve? - Answers An entry takes a great deal of recording space, is time-consuming to record,
and is prone to many types of errors.
Which information flow supports preparing the financial statements of an organization? -
Answers Internal vertical
What is the relationship between the transaction processing system (TPS) and the general
ledger system (GLS)? - Answers Data from the TPS are input for the GLS.
Which accounting information system (AIS) component provides information to external users?
- Answers Financial reporting system (FRS)
Useful information has the following characteristics: relevance, timeliness, accuracy,
completeness, and summarization. What happens if the information is irrelevant? - Answers The
decision maker wastes time analyzing the information.
A grocery store updates its inventory levels in the accounting information system in real time.
However, the store frequently reports petty theft and has trouble locating inventory on the shop
floor. Which characteristic of useful information is missing from this scenario? - Answers
Reliable
Which component of an information system is used to produce an operational budget? -
Answers Management reporting system (MRS)
, Why would an organization decide to buy a turnkey information system (IS)? - Answers The
organization can implement it with little or no modification.
Who are the primary recipients of financial information? - Answers Investors and creditors
Which item represents a characteristic of a detailed and rich audit trail for a general ledger? -
Answers Providing a means for detecting errors
Which risk does automating general ledger (GL) postings pose to a company? - Answers Having
no human intervention means the company could have errors in the data.
What describes the network of information that can be used as an audit trail? - Answers
Documents, journals, and ledgers
What is the purpose of a purchase requisition? - Answers The purchase requisition ensures
items purchased are only from authorized vendors.
What are the accounting functions for the accounts payable? - Answers Collect data and
invoices to properly complete transactions
How do internal controls affect daily activities? - Answers They protect an organization from
risk, and therefore, physical controls and IT controls are used.
Which items make up the three-way match? - Answers Supplier's invoice, receiving report and
purchase order
Which items does a payroll department need in order to prepare the payroll register? - Answers
Pay rate, withholding information, and hours worked
Which document contains details on the acquisition of a fixed asset? - Answers Depreciation
report
Which process represents proper design for funding a payroll imprest account? - Answers The
Cash Disbursements department creates a single check to fund the payroll imprest account for
the company payroll disbursement.
Which items are included in the subsidiary ledger? - Answers Customer name, customer
address, current balance, available credit, transaction dates, invoice numbers, credit for
payments, returns
What are the duties of the mail room clerk? - Answers The mail room clerk opens the envelopes
and reconciles checks and remittances.
What is a method for verification control? - Answers A copy of the signature to verify the
signature
How many surprise checks must an organization undergo annually to maintain the International
