AIS - Test 1 || TEST QUESTIONS WITH 100%
CORRECT ANSWERS!!
An accounting information system is a set of interrelated: correct answers Activities,
documents and technologies.
The components of an accounting information system are designed to collect ___ and report
___. correct answers Data, information
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? correct
answers Buying inventory, sales invoice, general ledger software
An accounting information system transforms inputs into outputs via processes such as:
correct answers Journalizing transactions and posting them to the ledger
Which of the following best fits the definition of an accounting information system explained
in the text? correct answers Processed source documents leading to the general purpose
financial statements
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: correct
answers Documents and data
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 most true? correct answers The required monthly payment is an
example of "information," as the term is used in the definition of an accounting information
system.
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. correct answers I, II
and III
Eugene is a self-employed business owner. In February 2011, he gathered together his
income and expense records for 2010. He used them, along with appropriate software, to
prepare his tax return, which he then transmitted to the Internal Revenue Service. Has Eugene
used an accounting information system based on the definition provided in the text? correct
answers Yes, because all elements of the definition are present.
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
overpayment 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? correct answers Yes, because all elements of the definition are present or implied.
,Accounting information systems is an important area of study for future accountants because:
correct answers All organizations need an AIS.
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: correct answers Principles of
debit and credit
Which of the following best explains why AIS is an important area of study for future
accountants? correct answers Neither A nor B
AIS is an important area of study for future accountants because a well-designed AIS can
recognize and adapt to the cost-benefit constraint. Which of the following statements is most
true? correct answers Resistance to change is a potential cost when making changes to the
AIS
AIS is an important area of study for future accountants because a well-designed AIS can
respond to many elements of the conceptual framework. Which of the following best pairs an
element of the conceptual framework with a specific example of that element? correct
answers Matching, land is not depreciated
AIS is an important area of study for future accountants because a well-designed AIS can
respond to many elements of the conceptual framework. Which of the following statements is
most true? correct answers Land is reported as an asset on the balance sheet; assets are one
element of financial statements in the conceptual framework.
AIS is an important area of study for future accountants because a well-designed AIS can
respond to many elements of the conceptual framework. Which of the following statements
about qualitative characteristics of accounting information is most true? correct answers
Reliability must sometimes be sacrificed to attain relevance.
VTR Corporation's accounting information system recently reported the following
information: Cost of goods sold, $1,500. Inventory, $15,000. Unearned service fees, $3,000.
Service fees earned, $8,000. Which element of financial statements is not included in the
preceding data? correct answers Equity
Which of the following elements of the conceptual framework fit within the same category?
correct answers Conservatism, materiality
Which of the following exemplifies "materiality" as the term is used in the FASB conceptual
framework? correct answers Both A and B
Which of the following statements about AIS is most true? correct answers Compared to
introductory accounting, AIS is more likely to have problems with nondeterministic answers.
Which of the following statements about AIS is most true? correct answers The five generic
elements of an AIS can be discussed in other areas of accounting.
, AIS study sometimes involves questions with deterministic answers. Which of the following
questions is most likely to have a deterministic answer? correct answers How should a
company record the purchase of supplies on account in its AIS?
Joe has completed all his accounting coursework and is ready to graduate. In his education,
he has learned how to: analyze source documents, use Excel, make journal entries and
prepare tax returns. Which generic element of the AIS is missing from that list? correct
answers Storage
Which of the following statements best demonstrates a similarity between AIS and other
areas of study in accounting? correct answers Communication skills are important in AIS.
Which of the following statements best demonstrates a difference between AIS and other
areas of study in accounting? correct answers AIS often looks at the "big picture" of
accounting.
AIS can be linked to other areas of study in accounting by focusing on the five generic
elements of the AIS. Which of the following is a process that might be studied in
management or cost accounting? correct answers How to prepare the master budget
AIS can be linked to other areas of study in accounting by focusing on the five generic
elements of the AIS. Which of the following pairs a generic element of the AIS with a
specific example from financial accounting? correct answers Bank reconciliation, internal
control
In an auditing course, students develop their professional judgment, learn how to conduct a
financial statement audit and learn the various types of audit opinions. Which of the
following therefore links AIS with auditing? correct answers Both A and B
In management accounting, students learn to prepare budgets, calculate cost variances and
interpret those variances. Which of the following best links those topics with AIS study?
correct answers Use of professional judgment
The generic structure of most accounting information systems comprises ___ elements.
correct answers five
Which generic element of the AIS is focused on master files, transaction files and junction
files? correct answers Storage
Which of the following is an example of an AIS output? correct answers Statement of cash
flows
Ethan is an accountant for a small startup business. He is trying to decide if the business
should use paper-based journals and ledgers or a spreadsheet to record transactions. He is
therefore making a decision about which generic element of the AIS? correct answers
Processes
Sienna used a stack of sales invoices to record journal entries in the AIS. She used those
entries and others to prepare an income statement that was later reviewed by her supervisor.
CORRECT ANSWERS!!
An accounting information system is a set of interrelated: correct answers Activities,
documents and technologies.
The components of an accounting information system are designed to collect ___ and report
___. correct answers Data, information
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? correct
answers Buying inventory, sales invoice, general ledger software
An accounting information system transforms inputs into outputs via processes such as:
correct answers Journalizing transactions and posting them to the ledger
Which of the following best fits the definition of an accounting information system explained
in the text? correct answers Processed source documents leading to the general purpose
financial statements
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: correct
answers Documents and data
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 most true? correct answers The required monthly payment is an
example of "information," as the term is used in the definition of an accounting information
system.
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. correct answers I, II
and III
Eugene is a self-employed business owner. In February 2011, he gathered together his
income and expense records for 2010. He used them, along with appropriate software, to
prepare his tax return, which he then transmitted to the Internal Revenue Service. Has Eugene
used an accounting information system based on the definition provided in the text? correct
answers Yes, because all elements of the definition are present.
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
overpayment 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? correct answers Yes, because all elements of the definition are present or implied.
,Accounting information systems is an important area of study for future accountants because:
correct answers All organizations need an AIS.
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: correct answers Principles of
debit and credit
Which of the following best explains why AIS is an important area of study for future
accountants? correct answers Neither A nor B
AIS is an important area of study for future accountants because a well-designed AIS can
recognize and adapt to the cost-benefit constraint. Which of the following statements is most
true? correct answers Resistance to change is a potential cost when making changes to the
AIS
AIS is an important area of study for future accountants because a well-designed AIS can
respond to many elements of the conceptual framework. Which of the following best pairs an
element of the conceptual framework with a specific example of that element? correct
answers Matching, land is not depreciated
AIS is an important area of study for future accountants because a well-designed AIS can
respond to many elements of the conceptual framework. Which of the following statements is
most true? correct answers Land is reported as an asset on the balance sheet; assets are one
element of financial statements in the conceptual framework.
AIS is an important area of study for future accountants because a well-designed AIS can
respond to many elements of the conceptual framework. Which of the following statements
about qualitative characteristics of accounting information is most true? correct answers
Reliability must sometimes be sacrificed to attain relevance.
VTR Corporation's accounting information system recently reported the following
information: Cost of goods sold, $1,500. Inventory, $15,000. Unearned service fees, $3,000.
Service fees earned, $8,000. Which element of financial statements is not included in the
preceding data? correct answers Equity
Which of the following elements of the conceptual framework fit within the same category?
correct answers Conservatism, materiality
Which of the following exemplifies "materiality" as the term is used in the FASB conceptual
framework? correct answers Both A and B
Which of the following statements about AIS is most true? correct answers Compared to
introductory accounting, AIS is more likely to have problems with nondeterministic answers.
Which of the following statements about AIS is most true? correct answers The five generic
elements of an AIS can be discussed in other areas of accounting.
, AIS study sometimes involves questions with deterministic answers. Which of the following
questions is most likely to have a deterministic answer? correct answers How should a
company record the purchase of supplies on account in its AIS?
Joe has completed all his accounting coursework and is ready to graduate. In his education,
he has learned how to: analyze source documents, use Excel, make journal entries and
prepare tax returns. Which generic element of the AIS is missing from that list? correct
answers Storage
Which of the following statements best demonstrates a similarity between AIS and other
areas of study in accounting? correct answers Communication skills are important in AIS.
Which of the following statements best demonstrates a difference between AIS and other
areas of study in accounting? correct answers AIS often looks at the "big picture" of
accounting.
AIS can be linked to other areas of study in accounting by focusing on the five generic
elements of the AIS. Which of the following is a process that might be studied in
management or cost accounting? correct answers How to prepare the master budget
AIS can be linked to other areas of study in accounting by focusing on the five generic
elements of the AIS. Which of the following pairs a generic element of the AIS with a
specific example from financial accounting? correct answers Bank reconciliation, internal
control
In an auditing course, students develop their professional judgment, learn how to conduct a
financial statement audit and learn the various types of audit opinions. Which of the
following therefore links AIS with auditing? correct answers Both A and B
In management accounting, students learn to prepare budgets, calculate cost variances and
interpret those variances. Which of the following best links those topics with AIS study?
correct answers Use of professional judgment
The generic structure of most accounting information systems comprises ___ elements.
correct answers five
Which generic element of the AIS is focused on master files, transaction files and junction
files? correct answers Storage
Which of the following is an example of an AIS output? correct answers Statement of cash
flows
Ethan is an accountant for a small startup business. He is trying to decide if the business
should use paper-based journals and ledgers or a spreadsheet to record transactions. He is
therefore making a decision about which generic element of the AIS? correct answers
Processes
Sienna used a stack of sales invoices to record journal entries in the AIS. She used those
entries and others to prepare an income statement that was later reviewed by her supervisor.
