ACIT (2nd Sem) Exam 2026 Questions
and Answers
1. Which of the following is not part of the accounting function? *
a. managing the financial information resource of the firm
b. capturing and recording transactions in the database
c. distributing transaction information to operations personnel
d. managing the physical information system of the firm - Correct answer-d.
managing the PHYSICAL( NOT ACCOUNTING) information system of the firm
2. Which function manages the financial resources of the firm through
portfolio management, banking, credit evaluation, and cash receipts and
disbursements? *
a. accounting
b. finance
c. materials management
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,d. distribution - Correct answer-b. finance
3. Market research and advertising are part of which business function? *
a. materials management
b. finance
c. marketing
d. production - Correct answer-c. marketing
4. Which activity is not part of the finance function? *
a. cash receipts
b. portfolio management
c. credit
d. general ledger - Correct answer-d. general ledger
5. The term "accounting independence" refers to *
a. data integrity
b. separation of duties, such as record keeping and custody of physical resources
c. generation of accurate and timely information
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,d. business segmentation by function - Correct answer-b.
separation(INDEPENDENT) of duties, such as record keeping and custody of
physical resources
6. Data processing does not involve *
a. data control
b. computer operations
c. system maintenance
d. data conversion - Correct answer-c. system maintenance
7. Disadvantages of distributed data processing include all of the following
except *
a. mismanagement of organizationwide resources
b. hardware and software incompatibility
c. cost reductions
d. difficulty in hiring qualified IT professionals - Correct answer-c. cost reductions
8. The value of information for users is determined by all of the following
except *
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, a. reliability
b. relevance
c. convenience
d. completeness - Correct answer-c. convenience
9. The term "accounting independence" refers to *
a. data integrity
b. separation of duties, such as record keeping and custody of physical resources
c. generation of accurate and timely information
d. business segmentation by function - Correct answer-b. separation of duties, such
as record keeping and custody of physical resources
10. In the distributed data processing approach *
a. computer services are consolidated and managed as a shared organization
resource
b. the computer service function is a cost center
c. the end users are billed using a charge-back system
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and Answers
1. Which of the following is not part of the accounting function? *
a. managing the financial information resource of the firm
b. capturing and recording transactions in the database
c. distributing transaction information to operations personnel
d. managing the physical information system of the firm - Correct answer-d.
managing the PHYSICAL( NOT ACCOUNTING) information system of the firm
2. Which function manages the financial resources of the firm through
portfolio management, banking, credit evaluation, and cash receipts and
disbursements? *
a. accounting
b. finance
c. materials management
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,d. distribution - Correct answer-b. finance
3. Market research and advertising are part of which business function? *
a. materials management
b. finance
c. marketing
d. production - Correct answer-c. marketing
4. Which activity is not part of the finance function? *
a. cash receipts
b. portfolio management
c. credit
d. general ledger - Correct answer-d. general ledger
5. The term "accounting independence" refers to *
a. data integrity
b. separation of duties, such as record keeping and custody of physical resources
c. generation of accurate and timely information
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,d. business segmentation by function - Correct answer-b.
separation(INDEPENDENT) of duties, such as record keeping and custody of
physical resources
6. Data processing does not involve *
a. data control
b. computer operations
c. system maintenance
d. data conversion - Correct answer-c. system maintenance
7. Disadvantages of distributed data processing include all of the following
except *
a. mismanagement of organizationwide resources
b. hardware and software incompatibility
c. cost reductions
d. difficulty in hiring qualified IT professionals - Correct answer-c. cost reductions
8. The value of information for users is determined by all of the following
except *
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, a. reliability
b. relevance
c. convenience
d. completeness - Correct answer-c. convenience
9. The term "accounting independence" refers to *
a. data integrity
b. separation of duties, such as record keeping and custody of physical resources
c. generation of accurate and timely information
d. business segmentation by function - Correct answer-b. separation of duties, such
as record keeping and custody of physical resources
10. In the distributed data processing approach *
a. computer services are consolidated and managed as a shared organization
resource
b. the computer service function is a cost center
c. the end users are billed using a charge-back system
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
