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D217 Accounting Information Systems MOD/UNIT tests questions and answers
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D217 Accounting Information Systems MOD/UNIT tests questions and answers
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D217 Accounting Information SystemsMOD/UNIT tests questions and answers
MOD 1 - The primary input to the transaction processing system is - "a financial
transaction." The financial transaction is the primary input to the transaction
processing system. Financial transactions are economic events that affect assets
and equities and are reflected on the financial statements.
The major difference between the financial reporting system (FRS) and the
management reporting system (MRS) is the - "FRS provides information to
external users; the MRS provides information to internal users." The FRS produces
the financial statements as required by law. The MRS provides information to
management for decision making such as budgets, forecasts, customer orders.
The author distinguishes between the accounting information system and the
management information system based on - "whether the transactions are
financial or nonfinancial that directly affect the processing of financial
transactions." The AIS captures financial transactions to support systems around
the revenue, expenditure and conversion cycles. The MIS captures nonfinancial
transactions to support systems for marketing, inventory, manufacturing and
human resources.
An example of a financial transaction is - "the purchase of computer." The
purchase of a computer adds an asset to the organization.
,D217 Accounting Information Systems
MOD/UNIT tests questions and answers
An example of a nonfinancial transaction is - "log of customer calls." The log of
customer calls is a key source of information for customer service, marketing and
the sales departments.
The transaction processing system includes which of the following? - "the
conversion cycle." The conversion cycle is included within the transaction
processing system because it records cost accounting and production activities.
The goal of data processing is - "the production of useful information." Data is not
information. Data is data. Data needs to be consolidated, processed, summarized
and converted into information for management decision-making.
Which of the following is an external end user? - "tax authorities." Tax authorities
are external users who expect an accurate accounting of tax due. In addition, the
non-discretionary reports from the accounting information system provide what is
needed for tax authorities to evaluate tax liability.
An appraisal function housed within the organization that performs a wide range
of services for management is - "internal auditing." An appraisal function housed
within the organization that performs a wide range of services for management is
internal auditing. Internal auditors verify the accuracy and security of the
,D217 Accounting Information Systems
MOD/UNIT tests questions and answers
information systems and also work with various business segments to secure and
optimize processes.
What factor conceptually distinguishes external auditing and internal auditing? -
"constituencies." External auditing and internal auditing are distinguished by
constituencies. Internal auditors focus on company management. External
auditors perform services to assure external investors, tax and regulatory
authorities that the financial statements are complete and accurate.
MOD 2- Which system is part of the expenditure cycle? - "cash disbursements."
Cash disbursements is part of the expenditure cycle. Cash disbursement is the way
a firm pays vendors, creditors, and employees.
Both the revenue and the expenditure cycle can be viewed as having two key
parts. These key parts are - "physical and financial." The two key parts of the
revenue and expenditure cycle are physical and financial. The physical portion
refers to the documents that support the necessary transactions; the financial
portion refers to the effect that the appropriate transactions have on assets and
equity.
, D217 Accounting Information Systems
MOD/UNIT tests questions and answers
System flowcharts do which one of the following? - The correct answer is
"represent relationships between key elements of manual and computer
systems." System flowcharts represent relationships between key elements of
manual and computer systems. The system flowchart is a graphic representation
of the process that is used by the programmer/analyst and systems auditors to
understand the flow of data through the program or system and the
files/functions that are involved from input to storage to output.
Which symbol is used to represent a data source or destination of documents and
reports in a system flowchart? - "oval." This symbol is used to represent a data
source or destination of documents and reports.
Which accounting application is least suited to batch processing? - "sales order
processing." Sales order processing is least suited to batch processing. The
production process needs to know as soon as possible if customer orders are
required. At the same time, it is important to know what the potential revenue is
at any given time.
In contrast to a real-time system, in a batch processing system - "there is a lag
between the time when the economic event occurs, and the financial records are
updated." Batch systems group transactions and they process when it is most
efficient, often on an hourly, daily, or weekly basis. Batch systems process
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