WGU D217 ACCOUNTING INFORMATION SYSTEMS |
249 QUESTIONS AND ANSWERS | 2025/2026 UPDATE
| WITH COMPLETE SOLUTION!!
The primary input to the transaction processing system is Answer - a financial
transaction
The major difference between the financial reporting system (FRS) and the
management reporting system (MRS) is the Answer - FRS provides information
to external users; the MRS provides information to internal users.
The author distinguishes between the accounting information system and the
management information system based on Answer - whether the transactions
are financial or nonfinancial that directly affect the processing of financial
transactions
An example of a financial transactions is Answer - the purchase of computer
An example of a nonfinancial transaction is Answer - log of customer calls
The transaction processing system includes which of the following Answer -
the conversion cycle
The goal of data processing is Answer - the production of useful information
,Which of the following is an external end user? Answer - tax authorities
An appraisal function housed within the organization that performs a wide
range of services for management is Answer - internal auditing
What factor conceptually distinguishes external auditing and internal auditing?
Answer - constituents
What system is part of the expenditure cycle? Answer - cash disbursements
Both the revenue and the expenditure cycle can be viewed as having two parts.
These key parts are Answer - physical and financial
System flowcharts do which one of the following? Answer - represent
relationships between key elements of both manual and computer systems
Which symbol is used to represent a data source or destination of documents
and reports in a system flowchart? Answer - oval
Which accounting application is least suited to batch processing? Answer -
Sales Order Processing
In contrast to a real-time system, in a batch processing system Answer - there
is a lag between the time when the economic event occurs, and the financial
records are updated.
In contrast to a batch processing system, in a real-time system Answer -
processing takes place when the economic event occurs.
, The coding scheme most appropriate for a chart of accounts is Answer - block
code
When a firm wants its coding system to convey meaning without reference to
any other document, it would choose Answer - a mnemonic code
The most important advantage of sequential coding is that Answer - missing or
unrecorded documents can be identified.
Li has implemented a new accounting information system (AIS) to help him
manage his construction company. Li uses the information captured by the
system to plan each project, forecasting the requirements for raw materials
and the cash flow expected. Which AIS subsystem helps Li in planning? Answer
- Management Reporting System (MRS)
Which information does the management reporting system (MRS) provide?
Answer - Variance reports
Useful information has the following characteristics: relevance, timeliness,
accuracy, completeness, and summarization. What happens if the information
is old? Answer - The decision maker wastes resources analyzing outdated
information.
Useful information has the following characteristics: relevance, timeliness,
accuracy, completeness, and summarization. What happens if the information
is inaccurate? Answer - The decision maker receives materially wrong
information.
Which important information does external feedback about the level of
uncollected customer accounts indicate to the management information
system? Answer - The organization needs to review its credit-granting policies.
249 QUESTIONS AND ANSWERS | 2025/2026 UPDATE
| WITH COMPLETE SOLUTION!!
The primary input to the transaction processing system is Answer - a financial
transaction
The major difference between the financial reporting system (FRS) and the
management reporting system (MRS) is the Answer - FRS provides information
to external users; the MRS provides information to internal users.
The author distinguishes between the accounting information system and the
management information system based on Answer - whether the transactions
are financial or nonfinancial that directly affect the processing of financial
transactions
An example of a financial transactions is Answer - the purchase of computer
An example of a nonfinancial transaction is Answer - log of customer calls
The transaction processing system includes which of the following Answer -
the conversion cycle
The goal of data processing is Answer - the production of useful information
,Which of the following is an external end user? Answer - tax authorities
An appraisal function housed within the organization that performs a wide
range of services for management is Answer - internal auditing
What factor conceptually distinguishes external auditing and internal auditing?
Answer - constituents
What system is part of the expenditure cycle? Answer - cash disbursements
Both the revenue and the expenditure cycle can be viewed as having two parts.
These key parts are Answer - physical and financial
System flowcharts do which one of the following? Answer - represent
relationships between key elements of both manual and computer systems
Which symbol is used to represent a data source or destination of documents
and reports in a system flowchart? Answer - oval
Which accounting application is least suited to batch processing? Answer -
Sales Order Processing
In contrast to a real-time system, in a batch processing system Answer - there
is a lag between the time when the economic event occurs, and the financial
records are updated.
In contrast to a batch processing system, in a real-time system Answer -
processing takes place when the economic event occurs.
, The coding scheme most appropriate for a chart of accounts is Answer - block
code
When a firm wants its coding system to convey meaning without reference to
any other document, it would choose Answer - a mnemonic code
The most important advantage of sequential coding is that Answer - missing or
unrecorded documents can be identified.
Li has implemented a new accounting information system (AIS) to help him
manage his construction company. Li uses the information captured by the
system to plan each project, forecasting the requirements for raw materials
and the cash flow expected. Which AIS subsystem helps Li in planning? Answer
- Management Reporting System (MRS)
Which information does the management reporting system (MRS) provide?
Answer - Variance reports
Useful information has the following characteristics: relevance, timeliness,
accuracy, completeness, and summarization. What happens if the information
is old? Answer - The decision maker wastes resources analyzing outdated
information.
Useful information has the following characteristics: relevance, timeliness,
accuracy, completeness, and summarization. What happens if the information
is inaccurate? Answer - The decision maker receives materially wrong
information.
Which important information does external feedback about the level of
uncollected customer accounts indicate to the management information
system? Answer - The organization needs to review its credit-granting policies.
