WGU D217 ACCOUNTING
INFORMATION SYSTEMS. EXAM
QUESTIONS AND ANSWERS 100% PASS.
A financial transaction - ANS The primary input to the transaction processing system is
FRS provides information to external users; the MRS provides information to internal users. -
ANS The major difference between the financial reporting system (FRS) and the management
reporting system (MRS) is the
whether the transactions are financial or nonfinancial that directly affect the processing of
financial transactions - ANS The author distinguishes between the accounting information
system and the management information system based on
the purchase of computer - ANS An example of a financial transactions is
log of customer calls - ANS An example of a nonfinancial transaction is
the conversion cycle - ANS The transaction processing system includes which of the following
the production of useful information - ANS The goal of data processing is
tax authorities - ANS Which of the following is an external end user?
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
,internal auditing - ANS An appraisal function housed within the organization that performs a
wide range of services for management is
constituents - ANS What factor conceptually distinguishes external auditing and internal
auditing?
cash disbursements - ANS What system is part of the expenditure cycle?
physical and financial - ANS Both the revenue and the expenditure cycle can be viewed as
having two parts. These key parts are
represent relationships between key elements of both manual and computer systems -
ANS System flowcharts do which one of the following?
oval - ANS Which symbol is used to represent a data source or destination of documents and
reports in a system flowchart?
Sales Order Processing - ANS Which accounting application is least suited to batch
processing?
there is a lag between the time when the economic event occurs, and the financial records are
updated. - ANS In contrast to a real-time system, in a batch processing system
processing takes place when the economic event occurs. - ANS In contrast to a batch
processing system, in a real-time system
block code - ANS The coding scheme most appropriate for a chart of accounts is
a mnemonic code - ANS When a firm wants its coding system to convey meaning without
reference to any other document, it would choose
2026 STUDY MATERIAL @COPYRIGHT RESERVED 2
, missing or unrecorded documents can be identified. - ANS The most important advantage of
sequential coding is that
Management Reporting System (MRS) - ANS 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?
Variance reports - ANS Which information does the management reporting system (MRS)
provide?
The decision maker wastes resources analyzing outdated information. - ANS Useful
information has the following characteristics: relevance, timeliness, accuracy, completeness,
and summarization. What happens if the information is old?
The decision maker receives materially wrong information. - ANS Useful information has the
following characteristics: relevance, timeliness, accuracy, completeness, and summarization.
What happens if the information is inaccurate?
The organization needs to review its credit-granting policies. - ANS Which important
information does external feedback about the level of uncollected customer accounts indicate
to the management information system?
Raw material is moved into work-in process. - ANS What is a type of data source for the
accounting information system (AIS)?
It has unique information needs. - ANS Why would an organization decide to develop its own
custom information system?
Inaccurately recording sales and cash receipts transactions in journals and accounts. - ANS An
objective of internal controls is to mitigate the risk from errors and fraud. What is the primary
risk associated with revenue cycle transactions?
2026 STUDY MATERIAL @COPYRIGHT RESERVED 3
INFORMATION SYSTEMS. EXAM
QUESTIONS AND ANSWERS 100% PASS.
A financial transaction - ANS The primary input to the transaction processing system is
FRS provides information to external users; the MRS provides information to internal users. -
ANS The major difference between the financial reporting system (FRS) and the management
reporting system (MRS) is the
whether the transactions are financial or nonfinancial that directly affect the processing of
financial transactions - ANS The author distinguishes between the accounting information
system and the management information system based on
the purchase of computer - ANS An example of a financial transactions is
log of customer calls - ANS An example of a nonfinancial transaction is
the conversion cycle - ANS The transaction processing system includes which of the following
the production of useful information - ANS The goal of data processing is
tax authorities - ANS Which of the following is an external end user?
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
,internal auditing - ANS An appraisal function housed within the organization that performs a
wide range of services for management is
constituents - ANS What factor conceptually distinguishes external auditing and internal
auditing?
cash disbursements - ANS What system is part of the expenditure cycle?
physical and financial - ANS Both the revenue and the expenditure cycle can be viewed as
having two parts. These key parts are
represent relationships between key elements of both manual and computer systems -
ANS System flowcharts do which one of the following?
oval - ANS Which symbol is used to represent a data source or destination of documents and
reports in a system flowchart?
Sales Order Processing - ANS Which accounting application is least suited to batch
processing?
there is a lag between the time when the economic event occurs, and the financial records are
updated. - ANS In contrast to a real-time system, in a batch processing system
processing takes place when the economic event occurs. - ANS In contrast to a batch
processing system, in a real-time system
block code - ANS The coding scheme most appropriate for a chart of accounts is
a mnemonic code - ANS When a firm wants its coding system to convey meaning without
reference to any other document, it would choose
2026 STUDY MATERIAL @COPYRIGHT RESERVED 2
, missing or unrecorded documents can be identified. - ANS The most important advantage of
sequential coding is that
Management Reporting System (MRS) - ANS 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?
Variance reports - ANS Which information does the management reporting system (MRS)
provide?
The decision maker wastes resources analyzing outdated information. - ANS Useful
information has the following characteristics: relevance, timeliness, accuracy, completeness,
and summarization. What happens if the information is old?
The decision maker receives materially wrong information. - ANS Useful information has the
following characteristics: relevance, timeliness, accuracy, completeness, and summarization.
What happens if the information is inaccurate?
The organization needs to review its credit-granting policies. - ANS Which important
information does external feedback about the level of uncollected customer accounts indicate
to the management information system?
Raw material is moved into work-in process. - ANS What is a type of data source for the
accounting information system (AIS)?
It has unique information needs. - ANS Why would an organization decide to develop its own
custom information system?
Inaccurately recording sales and cash receipts transactions in journals and accounts. - ANS An
objective of internal controls is to mitigate the risk from errors and fraud. What is the primary
risk associated with revenue cycle transactions?
2026 STUDY MATERIAL @COPYRIGHT RESERVED 3
