WGU D217 Accounting Information Systems Exam Questions
and Answers
1. Which of the following is a problem usually associated with the flat-fileapproach to data
management? ANS data redundancy
2. Which problem is characteristically associated with the flat-file approachto data management? ANS
the inability to determine what data is available
3. A description of the physical arrangement of records in the databaseis ANS the internal view.
4. Which of the following may provide many distinct views of the database?-
ANS the user view
5. The update anomaly in unnormalized tables ANS occurs because of data redun-dancy.
6. The deletion anomaly in unnormalized tables ANS may result in the loss ofimportant data.
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,7. Which document triggers the revenue cycle? ANS the customer purchase order
8. Which department is least likely to be involved in the revenue cycle? ANS Theaccounts payable
department is least likely to be involved in the revenue cycle. Accounts payable is charged with managing
the segment of the expenditure cyclethat involves payments to vendors and creditors.
9. The purpose of the sales invoice is to ANS The purpose of the sales invoice is tobill the customer. The
sales invoice will be sent to the customer for payment. At the same time the invoice will also update
inventory, send a journal to the generalledger, and record the sales journal.
10. Which type of control is considered a compensating control for customerpayments? ANS Supervision is
a compensating control for customer payments. Com-pensating controls are put in place when more
effective controls are deemed toodifficult or costly to implement. Supervision is the simplest and most
common formof compensating control.
11. Commercial accounting systems have fully integrated modules.The word"integrated" means that ANS
The word "integrated" means that the transfer of in- formation among modules occurs automatically. In
a fully integrated system, the shipping advice will generate the request for invoice automatically.This
eliminatesthe risk that the invoice request is not processed or is processed for a different amount.
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,12. A copy of the purchase order (PO) is sent to the ANS A copy of the purchaseorder (PO) is sent to
the vendor. The purchase order is the formal document that
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, tells the vendor what material is needed, at what price, in what quantity and onwhat date.
13. The departments involved in the purchasing process are purchasing, receiving, inventory control
and ANS The departments involved in the purchasingprocess are purchasing, receiving, inventory
control and accounts payable. Ac-counts payable completes the purchasing process by authorizing and
executingthe cash disbursement based on a signal from receiving or inventory control.
14. When a cash disbursement in payment of an accounts payable is record- ed ANS When a cash
disbursement in payment of an accounts payable is recorded the liability account is decreased. On the
Balance Sheet, accounts payable is a current liability. When a cash disbursement is recorded, the liability
will be reduced.
15. The greatest risk of misappropriation of funds occurs in ANS The greatest riskof misappropriation of
funds occurs in accounts payable. This may take the form of payments for goods not ordered or received
and to vendors that do not exist. The risk can be reduced through supervision, segregation of duties,
independentverification, or automated processes.
16. In a firm with proper segregation of duties, adequate supervision as a compensating control is still
necessary in ANS In a firm with proper segregation of duties, adequate supervision is most critical in
receiving. Every day materials arrive on the receiving dock. Until those receipts are recorded in the
system, theyare invisible to anyone but the receivers and their supervisors. Supervision is
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and Answers
1. Which of the following is a problem usually associated with the flat-fileapproach to data
management? ANS data redundancy
2. Which problem is characteristically associated with the flat-file approachto data management? ANS
the inability to determine what data is available
3. A description of the physical arrangement of records in the databaseis ANS the internal view.
4. Which of the following may provide many distinct views of the database?-
ANS the user view
5. The update anomaly in unnormalized tables ANS occurs because of data redun-dancy.
6. The deletion anomaly in unnormalized tables ANS may result in the loss ofimportant data.
Page 1 of 41
,7. Which document triggers the revenue cycle? ANS the customer purchase order
8. Which department is least likely to be involved in the revenue cycle? ANS Theaccounts payable
department is least likely to be involved in the revenue cycle. Accounts payable is charged with managing
the segment of the expenditure cyclethat involves payments to vendors and creditors.
9. The purpose of the sales invoice is to ANS The purpose of the sales invoice is tobill the customer. The
sales invoice will be sent to the customer for payment. At the same time the invoice will also update
inventory, send a journal to the generalledger, and record the sales journal.
10. Which type of control is considered a compensating control for customerpayments? ANS Supervision is
a compensating control for customer payments. Com-pensating controls are put in place when more
effective controls are deemed toodifficult or costly to implement. Supervision is the simplest and most
common formof compensating control.
11. Commercial accounting systems have fully integrated modules.The word"integrated" means that ANS
The word "integrated" means that the transfer of in- formation among modules occurs automatically. In
a fully integrated system, the shipping advice will generate the request for invoice automatically.This
eliminatesthe risk that the invoice request is not processed or is processed for a different amount.
Page 2 of 41
,12. A copy of the purchase order (PO) is sent to the ANS A copy of the purchaseorder (PO) is sent to
the vendor. The purchase order is the formal document that
Page 3 of 41
, tells the vendor what material is needed, at what price, in what quantity and onwhat date.
13. The departments involved in the purchasing process are purchasing, receiving, inventory control
and ANS The departments involved in the purchasingprocess are purchasing, receiving, inventory
control and accounts payable. Ac-counts payable completes the purchasing process by authorizing and
executingthe cash disbursement based on a signal from receiving or inventory control.
14. When a cash disbursement in payment of an accounts payable is record- ed ANS When a cash
disbursement in payment of an accounts payable is recorded the liability account is decreased. On the
Balance Sheet, accounts payable is a current liability. When a cash disbursement is recorded, the liability
will be reduced.
15. The greatest risk of misappropriation of funds occurs in ANS The greatest riskof misappropriation of
funds occurs in accounts payable. This may take the form of payments for goods not ordered or received
and to vendors that do not exist. The risk can be reduced through supervision, segregation of duties,
independentverification, or automated processes.
16. In a firm with proper segregation of duties, adequate supervision as a compensating control is still
necessary in ANS In a firm with proper segregation of duties, adequate supervision is most critical in
receiving. Every day materials arrive on the receiving dock. Until those receipts are recorded in the
system, theyare invisible to anyone but the receivers and their supervisors. Supervision is
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