WGU D217 ACCOUNTING INFORMATION
SYSTEMS 2026 | VERIFIED QUESTIONS &
CORRECT ANSWERS | EXAM SUCCESS
STUDY GUIDE
• This study guide contains 200 verified exam-style questions covering all key topics
in WGU D217 Accounting Information Systems, designed to mirror the actual exam
format and difficulty.
• Use this material by working through each question independently before
checking the correct answer and EXPERT RATIONALE — this active recall method
maximizes retention and exam readiness.
1. What is the primary purpose of an Accounting Information System (AIS)?
A. To manage human resources data
B. To process and store financial transactions and produce reports
C. To handle customer relationship management
D. To automate manufacturing processes
E. To manage supply chain logistics
Correct Answer: B. To process and store financial transactions and
produce reports
EXPERT RATIONALE: An AIS is specifically designed to collect, store, process,
and communicate financial and accounting data to support decision-making,
reporting, and compliance.
2. Which of the following best describes internal controls in an AIS?
A. Policies that govern employee vacation schedules
B. Procedures that ensure only executives access data
C. Policies and procedures designed to safeguard assets, ensure accuracy, and
promote operational efficiency
,D. Rules that restrict internet usage in the workplace
E. Guidelines for managing supplier contracts
Correct Answer: C. Policies and procedures designed to safeguard assets,
ensure accuracy, and promote operational efficiency
EXPERT RATIONALE: Internal controls are mechanisms put in place to protect
organizational assets, ensure the reliability of financial reporting, and promote
compliance with laws and regulations.
3. The revenue cycle in an AIS primarily involves which of the following
activities?
A. Purchasing inventory from suppliers
B. Paying employee salaries
C. Selling goods or services and collecting payment from customers
D. Depreciating fixed assets
E. Recording journal entries for adjustments
Correct Answer: C. Selling goods or services and collecting payment from
customers
EXPERT RATIONALE: The revenue cycle encompasses all business activities
related to providing goods or services to customers and receiving payment,
including order processing, shipping, billing, and cash collections.
4. Which of the following is an example of a source document in an AIS?
A. Trial balance
B. Balance sheet
C. Sales invoice
D. Income statement
,E. General ledger
Correct Answer: C. Sales invoice
EXPERT RATIONALE: Source documents are the original records that capture
transaction data at the point of origin. A sales invoice is generated when a sale
occurs and serves as the initial evidence of the transaction.
5. What does the expenditure cycle in an AIS focus on?
A. Collecting payments from customers
B. Issuing dividends to shareholders
C. Acquiring goods and services and paying suppliers
D. Preparing financial statements
E. Managing investor relations
Correct Answer: C. Acquiring goods and services and paying suppliers
EXPERT RATIONALE: The expenditure cycle covers all processes related to
purchasing goods and services from vendors and making payments, including
purchase orders, receiving reports, and accounts payable.
6. Which type of file stores data that changes frequently in an AIS?
A. Reference file
B. Archive file
C. Master file
D. Transaction file
E. Index file
Correct Answer: D. Transaction file
, EXPERT RATIONALE: Transaction files contain current, temporary data about
business events (e.g., daily sales or payments). They are updated frequently and
differ from master files, which hold relatively permanent data.
7. What is a data flow diagram (DFD) used for in an AIS?
A. To track employee performance
B. To illustrate how data moves through a system
C. To calculate depreciation schedules
D. To manage inventory reorder points
E. To prepare tax returns
Correct Answer: B. To illustrate how data moves through a system
EXPERT RATIONALE: A DFD graphically represents how data is input,
processed, stored, and output within an information system, helping analysts
document and communicate system design.
8. Which of the following best describes a relational database?
A. A system that stores data in a single flat file
B. A database organized into tables with rows and columns linked by key fields
C. A database accessible only by accountants
D. A file that stores only numerical data
E. A ledger that records only debit entries
Correct Answer: B. A database organized into tables with rows and
columns linked by key fields
EXPERT RATIONALE: Relational databases organize data into related tables
(relations) using primary and foreign keys to establish relationships, enabling
efficient data retrieval and management.
SYSTEMS 2026 | VERIFIED QUESTIONS &
CORRECT ANSWERS | EXAM SUCCESS
STUDY GUIDE
• This study guide contains 200 verified exam-style questions covering all key topics
in WGU D217 Accounting Information Systems, designed to mirror the actual exam
format and difficulty.
• Use this material by working through each question independently before
checking the correct answer and EXPERT RATIONALE — this active recall method
maximizes retention and exam readiness.
1. What is the primary purpose of an Accounting Information System (AIS)?
A. To manage human resources data
B. To process and store financial transactions and produce reports
C. To handle customer relationship management
D. To automate manufacturing processes
E. To manage supply chain logistics
Correct Answer: B. To process and store financial transactions and
produce reports
EXPERT RATIONALE: An AIS is specifically designed to collect, store, process,
and communicate financial and accounting data to support decision-making,
reporting, and compliance.
2. Which of the following best describes internal controls in an AIS?
A. Policies that govern employee vacation schedules
B. Procedures that ensure only executives access data
C. Policies and procedures designed to safeguard assets, ensure accuracy, and
promote operational efficiency
,D. Rules that restrict internet usage in the workplace
E. Guidelines for managing supplier contracts
Correct Answer: C. Policies and procedures designed to safeguard assets,
ensure accuracy, and promote operational efficiency
EXPERT RATIONALE: Internal controls are mechanisms put in place to protect
organizational assets, ensure the reliability of financial reporting, and promote
compliance with laws and regulations.
3. The revenue cycle in an AIS primarily involves which of the following
activities?
A. Purchasing inventory from suppliers
B. Paying employee salaries
C. Selling goods or services and collecting payment from customers
D. Depreciating fixed assets
E. Recording journal entries for adjustments
Correct Answer: C. Selling goods or services and collecting payment from
customers
EXPERT RATIONALE: The revenue cycle encompasses all business activities
related to providing goods or services to customers and receiving payment,
including order processing, shipping, billing, and cash collections.
4. Which of the following is an example of a source document in an AIS?
A. Trial balance
B. Balance sheet
C. Sales invoice
D. Income statement
,E. General ledger
Correct Answer: C. Sales invoice
EXPERT RATIONALE: Source documents are the original records that capture
transaction data at the point of origin. A sales invoice is generated when a sale
occurs and serves as the initial evidence of the transaction.
5. What does the expenditure cycle in an AIS focus on?
A. Collecting payments from customers
B. Issuing dividends to shareholders
C. Acquiring goods and services and paying suppliers
D. Preparing financial statements
E. Managing investor relations
Correct Answer: C. Acquiring goods and services and paying suppliers
EXPERT RATIONALE: The expenditure cycle covers all processes related to
purchasing goods and services from vendors and making payments, including
purchase orders, receiving reports, and accounts payable.
6. Which type of file stores data that changes frequently in an AIS?
A. Reference file
B. Archive file
C. Master file
D. Transaction file
E. Index file
Correct Answer: D. Transaction file
, EXPERT RATIONALE: Transaction files contain current, temporary data about
business events (e.g., daily sales or payments). They are updated frequently and
differ from master files, which hold relatively permanent data.
7. What is a data flow diagram (DFD) used for in an AIS?
A. To track employee performance
B. To illustrate how data moves through a system
C. To calculate depreciation schedules
D. To manage inventory reorder points
E. To prepare tax returns
Correct Answer: B. To illustrate how data moves through a system
EXPERT RATIONALE: A DFD graphically represents how data is input,
processed, stored, and output within an information system, helping analysts
document and communicate system design.
8. Which of the following best describes a relational database?
A. A system that stores data in a single flat file
B. A database organized into tables with rows and columns linked by key fields
C. A database accessible only by accountants
D. A file that stores only numerical data
E. A ledger that records only debit entries
Correct Answer: B. A database organized into tables with rows and
columns linked by key fields
EXPERT RATIONALE: Relational databases organize data into related tables
(relations) using primary and foreign keys to establish relationships, enabling
efficient data retrieval and management.
