AIS Final Exam Review Questions
(Extensive) FULLY SOLVED GRADED
A+ 2025/2026
D) Activities, documents, and technologies - correct answer ✔✔An accounting information
system is a set of interrelated:
A) Activities and documents only
B) Activities and technologies only
C) Documents and technologies only
D) Activities, documents, and technologies
A) Data, information - correct answer ✔✔The components of an accounting information system
are designed to collect ______ and report _______.
A) Data, information
B) Data, data
C) Information, information
D) Information, data
B) Buying inventory, sales invoice, general ledger software - correct answer ✔✔An accounting
information system is defined by the text as a set of three interrelated elements. Which of the
following choices best gives an example of each element?
A) Buying inventory, selling inventory, balance sheet
B) Buying inventory, sales invoice, general ledger software
C) Selling inventory, sales invoice, balance sheet
D) Selling inventory, writing a check, general ledger software
,A) Journalizing transactions and posting them to the ledger - correct answer ✔✔An accounting
information system transforms inputs into outputs via processes such as:
A) Journalizing transactions and posting them to the ledger
B) Identifying the elements of the FASB Conceptual Framework
C) Always utilizing information technology
D) Recognizing and adapting tot he cost-benefit constraint
C) Processed source documents leading to the general purpose financial statements - correct
answer ✔✔Which of the following best fits the definition of an accounting information system
explained in the text?
A) A checkbook register
B) A publicly-traded corporation's financial statements
C) Processed source documents leading to the general purpose financial statements
D) An Excel spreadsheet of financial statement ratios
A) Documents and data - correct answer ✔✔April compiled checks, receipts, and invoices, then
entered them into Quickbooks. She printed out her financial statements and took them to the
bank as documentation for a loan application. In that scenario, checks, receipts, and invoices
could be referred to as:
A) Documents and data
B) Data and information
C) Documents and information
D) Documents, data, and information
A) The required monthly payment is an example of "information," as the term is used in the
definition of an accounting information system. - correct answer ✔✔Claudia borrowed money
from her bank, signing a five-year note payable. She then calculated the monthly payment
needed to pay off the loan within three years. Which of the following statements is / are the
most true?
,A) The required monthly payment is an example of "information," as the term is used in the
definition of an accounting information system.
B) The five-year note payable would be considered a "technology" if it were prepared with
computer software
C) Both A and B are true
D) Neither A nor B is true
D) I, II, and III - correct answer ✔✔Claudia borrowed money from her bank, signing a five-year
note payable. She then calculated the monthly payment needed to pay off the loan within three
years. Based on the definition of an accounting information system provided in the text, the five
year note payable could be considered: (i) an input, (ii) an output, (iii) a document.
A) I and II only
B) I and III only
C) II and III only
D) I, II, and III
B) Yes, because all elements of the definition are present. - correct answer ✔✔Eugene is a self-
employed business owner. In February 2011, he gathered together his income and expense
records for 2010. He use them, along with appropriate software, to prepare his tax return,
which he then transmitted to the Internal Revenue Service. Has Eugene use an accounting
infromation system based on the definition provided in the text?
A) Yes, because he used software to prepare his tax return.
B) Yes, because all elements of the definition are present.
C) No, because all accounting information systems must produce general purpose financial
statements.
D) No, because no internal decision maker is mentioned
D) Yes, because all elements of the definition are present or implied - correct answer ✔✔The
vice president for customer service of First United Bank determined that Lee had overpaid his
mortgage. The bank sent Lee a letter asking him if he wanted a refund of the over-payment or if
, he wanted to apply it to future mortgage payments. Has the vice president for customer service
used an accounting information system based on the definition provided in the text?
A) No, because no mention is made of software.
B) No, because the letter does not constitute an output
C) No, because no mention is made of general purpose financial statements
D) Yes, because all elements of the definition are present
B) All organizations need an AIS - correct answer ✔✔Accounting information systems is an
important area of study for future accountants because:
A) All organizations use information technology in their AIS
B) All organizations need an AIS
C) Both A and B
D) Neither A nor B
A) Principles of debit and credit - correct answer ✔✔Accounting information systems is an
important area of study for future accountants because a well-designed AIS can respond to
many elements of the FASB Conceptual Framework. All of the following are parts of the
conceptual framework except:
A) Principles of debit and credit
B) Objective of financial reporting
C) Elements of financial statements
D) Qualitative characteristics of accounting information
D) Neither A nor B - correct answer ✔✔Which of the following best explains why AIS is an
important area of study for future accountants?
A) AIS is the only area of accounting where students learn about information technology
B) AIS is the only area of accounting where students learn about the FASB Conceptual
Framework
(Extensive) FULLY SOLVED GRADED
A+ 2025/2026
D) Activities, documents, and technologies - correct answer ✔✔An accounting information
system is a set of interrelated:
A) Activities and documents only
B) Activities and technologies only
C) Documents and technologies only
D) Activities, documents, and technologies
A) Data, information - correct answer ✔✔The components of an accounting information system
are designed to collect ______ and report _______.
A) Data, information
B) Data, data
C) Information, information
D) Information, data
B) Buying inventory, sales invoice, general ledger software - correct answer ✔✔An accounting
information system is defined by the text as a set of three interrelated elements. Which of the
following choices best gives an example of each element?
A) Buying inventory, selling inventory, balance sheet
B) Buying inventory, sales invoice, general ledger software
C) Selling inventory, sales invoice, balance sheet
D) Selling inventory, writing a check, general ledger software
,A) Journalizing transactions and posting them to the ledger - correct answer ✔✔An accounting
information system transforms inputs into outputs via processes such as:
A) Journalizing transactions and posting them to the ledger
B) Identifying the elements of the FASB Conceptual Framework
C) Always utilizing information technology
D) Recognizing and adapting tot he cost-benefit constraint
C) Processed source documents leading to the general purpose financial statements - correct
answer ✔✔Which of the following best fits the definition of an accounting information system
explained in the text?
A) A checkbook register
B) A publicly-traded corporation's financial statements
C) Processed source documents leading to the general purpose financial statements
D) An Excel spreadsheet of financial statement ratios
A) Documents and data - correct answer ✔✔April compiled checks, receipts, and invoices, then
entered them into Quickbooks. She printed out her financial statements and took them to the
bank as documentation for a loan application. In that scenario, checks, receipts, and invoices
could be referred to as:
A) Documents and data
B) Data and information
C) Documents and information
D) Documents, data, and information
A) The required monthly payment is an example of "information," as the term is used in the
definition of an accounting information system. - correct answer ✔✔Claudia borrowed money
from her bank, signing a five-year note payable. She then calculated the monthly payment
needed to pay off the loan within three years. Which of the following statements is / are the
most true?
,A) The required monthly payment is an example of "information," as the term is used in the
definition of an accounting information system.
B) The five-year note payable would be considered a "technology" if it were prepared with
computer software
C) Both A and B are true
D) Neither A nor B is true
D) I, II, and III - correct answer ✔✔Claudia borrowed money from her bank, signing a five-year
note payable. She then calculated the monthly payment needed to pay off the loan within three
years. Based on the definition of an accounting information system provided in the text, the five
year note payable could be considered: (i) an input, (ii) an output, (iii) a document.
A) I and II only
B) I and III only
C) II and III only
D) I, II, and III
B) Yes, because all elements of the definition are present. - correct answer ✔✔Eugene is a self-
employed business owner. In February 2011, he gathered together his income and expense
records for 2010. He use them, along with appropriate software, to prepare his tax return,
which he then transmitted to the Internal Revenue Service. Has Eugene use an accounting
infromation system based on the definition provided in the text?
A) Yes, because he used software to prepare his tax return.
B) Yes, because all elements of the definition are present.
C) No, because all accounting information systems must produce general purpose financial
statements.
D) No, because no internal decision maker is mentioned
D) Yes, because all elements of the definition are present or implied - correct answer ✔✔The
vice president for customer service of First United Bank determined that Lee had overpaid his
mortgage. The bank sent Lee a letter asking him if he wanted a refund of the over-payment or if
, he wanted to apply it to future mortgage payments. Has the vice president for customer service
used an accounting information system based on the definition provided in the text?
A) No, because no mention is made of software.
B) No, because the letter does not constitute an output
C) No, because no mention is made of general purpose financial statements
D) Yes, because all elements of the definition are present
B) All organizations need an AIS - correct answer ✔✔Accounting information systems is an
important area of study for future accountants because:
A) All organizations use information technology in their AIS
B) All organizations need an AIS
C) Both A and B
D) Neither A nor B
A) Principles of debit and credit - correct answer ✔✔Accounting information systems is an
important area of study for future accountants because a well-designed AIS can respond to
many elements of the FASB Conceptual Framework. All of the following are parts of the
conceptual framework except:
A) Principles of debit and credit
B) Objective of financial reporting
C) Elements of financial statements
D) Qualitative characteristics of accounting information
D) Neither A nor B - correct answer ✔✔Which of the following best explains why AIS is an
important area of study for future accountants?
A) AIS is the only area of accounting where students learn about information technology
B) AIS is the only area of accounting where students learn about the FASB Conceptual
Framework
