WGU D561 Information Systems for Accounting and Control
OA Exam | Latest Update 2026/2027 | 200 Questions and
Verified Answers | Complete Q&A Guide | A+ Graded
1. Which of the following best describes the primary purpose of an Accounting Information System
(AIS)?
A. To replace all management functions
B. To collect, process, store, and report financial information for decisionmaking
C. To eliminate all business risks
D. To increase tax liabilities
Correct Answer: B
Explanation: An Accounting Information System (AIS) integrates people, processes, data, and technology
to collect, process, store, and communicate financial and accounting information. The system supports
operational activities, management decisionmaking, regulatory compliance, and financial reporting.
2. How does data differ from information in an accounting information system?
A. Data is output while information is input
B. Information is output while data is input
C. Data and information are the same
D. Information is raw facts while data is processed
Correct Answer: B
,Explanation: Data consists of raw facts that are input into the system, while information is the
processed, organized, and meaningful output that results from analyzing data.
3. Which business process records transactions involving customers purchasing goods or services on
credit?
A. Expenditure cycle
B. Production cycle
C. Revenue cycle
D. Financing cycle
Correct Answer: C
Explanation: The revenue cycle encompasses activities such as receiving customer orders, shipping
products, billing customers, collecting payments, and maintaining accounts receivable. It is one of the
fundamental transaction cycles within an AIS.
4. Which business process sells goods or services for cash or a future promise to receive cash?
A. Expenditure cycle
B. Revenue cycle
C. Production cycle
D. Financing cycle
Correct Answer: B
,Explanation: The revenue cycle is the business process that sells goods or services for cash or a future
promise to receive cash. It includes all activities related to generating revenue from customers.
5. What is the primary objective of internal controls in an AIS?
A. Maximizing sales
B. Eliminating employee responsibility
C. Safeguarding assets and ensuring reliable financial reporting
D. Increasing profits
Correct Answer: C
Explanation: The primary objective of internal controls is to safeguard assets and ensure reliable
financial reporting. Internal controls help prevent fraud, errors, and misstatements in financial
information.
6. What is the purpose of a threeway match in the purchasing process?
A. Speeding payroll processing
B. Comparing the purchase order, receiving report, and vendor invoice before payment
C. Approving employee expenses
D. Reconciling bank statements
Correct Answer: B
, Explanation: A threeway match ensures payment is made only after verifying that the goods ordered
were received and billed correctly. This reduces the risk of duplicate or fraudulent payments.
7. What does the receiving report document in the purchasing process?
A. The quantity and condition of goods received
B. The employee's work hours
C. The customer's order details
D. The vendor's payment terms
Correct Answer: A
Explanation: The receiving report documents the quantity and condition of goods received. It serves as
evidence that inventory arrived before payment is authorized.
8. Which financial statement summarizes revenues and expenses over a period of time?
A. Balance sheet
B. Statement of cash flows
C. Income statement
D. Statement of retained earnings
Correct Answer: C
Explanation: The income statement summarizes revenues and expenses over a specific period, showing
the company's financial performance and resulting net income or loss.
OA Exam | Latest Update 2026/2027 | 200 Questions and
Verified Answers | Complete Q&A Guide | A+ Graded
1. Which of the following best describes the primary purpose of an Accounting Information System
(AIS)?
A. To replace all management functions
B. To collect, process, store, and report financial information for decisionmaking
C. To eliminate all business risks
D. To increase tax liabilities
Correct Answer: B
Explanation: An Accounting Information System (AIS) integrates people, processes, data, and technology
to collect, process, store, and communicate financial and accounting information. The system supports
operational activities, management decisionmaking, regulatory compliance, and financial reporting.
2. How does data differ from information in an accounting information system?
A. Data is output while information is input
B. Information is output while data is input
C. Data and information are the same
D. Information is raw facts while data is processed
Correct Answer: B
,Explanation: Data consists of raw facts that are input into the system, while information is the
processed, organized, and meaningful output that results from analyzing data.
3. Which business process records transactions involving customers purchasing goods or services on
credit?
A. Expenditure cycle
B. Production cycle
C. Revenue cycle
D. Financing cycle
Correct Answer: C
Explanation: The revenue cycle encompasses activities such as receiving customer orders, shipping
products, billing customers, collecting payments, and maintaining accounts receivable. It is one of the
fundamental transaction cycles within an AIS.
4. Which business process sells goods or services for cash or a future promise to receive cash?
A. Expenditure cycle
B. Revenue cycle
C. Production cycle
D. Financing cycle
Correct Answer: B
,Explanation: The revenue cycle is the business process that sells goods or services for cash or a future
promise to receive cash. It includes all activities related to generating revenue from customers.
5. What is the primary objective of internal controls in an AIS?
A. Maximizing sales
B. Eliminating employee responsibility
C. Safeguarding assets and ensuring reliable financial reporting
D. Increasing profits
Correct Answer: C
Explanation: The primary objective of internal controls is to safeguard assets and ensure reliable
financial reporting. Internal controls help prevent fraud, errors, and misstatements in financial
information.
6. What is the purpose of a threeway match in the purchasing process?
A. Speeding payroll processing
B. Comparing the purchase order, receiving report, and vendor invoice before payment
C. Approving employee expenses
D. Reconciling bank statements
Correct Answer: B
, Explanation: A threeway match ensures payment is made only after verifying that the goods ordered
were received and billed correctly. This reduces the risk of duplicate or fraudulent payments.
7. What does the receiving report document in the purchasing process?
A. The quantity and condition of goods received
B. The employee's work hours
C. The customer's order details
D. The vendor's payment terms
Correct Answer: A
Explanation: The receiving report documents the quantity and condition of goods received. It serves as
evidence that inventory arrived before payment is authorized.
8. Which financial statement summarizes revenues and expenses over a period of time?
A. Balance sheet
B. Statement of cash flows
C. Income statement
D. Statement of retained earnings
Correct Answer: C
Explanation: The income statement summarizes revenues and expenses over a specific period, showing
the company's financial performance and resulting net income or loss.
