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WGU D217 ACCOUNTING INFORMATION SYSTEMS QUESTIONS WITH CORRECT DETAILED ANSWERS.
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WGU D217 ACCOUNTING INFORMATION SYSTEMS QUESTIONS WITH CORRECT DETAILED ANSWERS.
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WGU D217 ACCOUNTING INFORMATIONSYSTEMS QUESTIONS WITH CORRECT
DETAILED ANSWERS.
Which of the following is a problem usually associated with the flat-file approach to data
management? - ANSWER- data redundancy
Which problem is characteristically associated with the flat-file approach to data
management? - ANSWER- the inability to determine what data is available
A description of the physical arrangement of records in the database is - ANSWER- the
internal view.
Which of the following may provide many distinct views of the database? - ANSWER-
the user view
The update anomaly in unnormalized tables - ANSWER- occurs because of data
redundancy.
The deletion anomaly in unnormalized tables - ANSWER- may result in the loss of
important data.
Which document triggers the revenue cycle? - ANSWER- the customer purchase order
Which department is least likely to be involved in the revenue cycle? - ANSWER- The
accounts payable department is least likely to be involved in the revenue cycle.
Accounts payable is charged with managing the segment of the expenditure cycle that
involves payments to vendors and creditors.
The purpose of the sales invoice is to - ANSWER- The purpose of the sales invoice is to
bill 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 general ledger,
and record the sales journal.
Which type of control is considered a compensating control for customer payments? -
ANSWER- Supervision is a compensating control for customer payments.
Compensating controls are put in place when more effective controls are deemed too
difficult or costly to implement. Supervision is the simplest and most common form of
compensating control.
,Commercial accounting systems have fully integrated modules. The word "integrated"
means that - ANSWER- The word "integrated" means that the transfer of information
among modules occurs automatically. In a fully integrated system, the shipping advice
will generate the request for invoice automatically. This eliminates the risk that the
invoice request is not processed or is processed for a different amount.
A copy of the purchase order (PO) is sent to the - ANSWER- A copy of the purchase
order (PO) is sent to the vendor. The purchase order is the formal document that tells
the vendor what material is needed, at what price, in what quantity and on what date.
The departments involved in the purchasing process are purchasing, receiving,
inventory control and - ANSWER- The departments involved in the purchasing process
are purchasing, receiving, inventory control and accounts payable. Accounts payable
completes the purchasing process by authorizing and executing the cash disbursement
based on a signal from receiving or inventory control.
When a cash disbursement in payment of an accounts payable is recorded - ANSWER-
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.
The greatest risk of misappropriation of funds occurs in - ANSWER- The greatest risk of
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, independent verification, or
automated processes.
In a firm with proper segregation of duties, adequate supervision as a compensating
control is still necessary in - ANSWER- 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, they are invisible to
anyone but the receivers and their supervisors. Supervision is a compensating control
appropriate before more automated controls take effect. Scanning technology and
automated three-way match are technological controls that reduce risk.
The fixed asset system records the - ANSWER- The fixed asset system records the
purchase of a new plant. The fixed asset system records property, plant, and equipment
used in the operation of the business. These represent the largest investments of the
firm.
In a technology enabled payroll system, Personnel, Time Keeping, Payroll, and
Accounts Payable connect to which department to pay employees? - ANSWER- In a
technology-enabled payroll system, Personnel, Time Keeping, Payroll and Accounts
Payable connect to cash disbursements to pay employees. Personnel inputs the basic
employee information and rate of pay; Time Keeping collects hours worked and verifies
time cards; Payroll inputs the hours worked into the payroll system which calculates
, gross and net pay, taxes, and other deductions; Accounts Payable approves the
payment amount; and finally cash disbursements issues pay checks or direct deposit.
The general ledger will be updated after the cash disbursement occurs.
An important reconciliation in the payroll system is - ANSWER- An important
reconciliation in the payroll system is that the general ledger compares the labor
distribution summary from cost accounting to the disbursement voucher from accounts
payable. Cost accounting will be tracking the job tickets to properly account for work in
process. Accounts payable will produce a disbursement voucher based on input from
timecards. Job tickets and timecards should match when hours and hourly rates are
extended.
Which of the following situations represents an internal control weakness? - ANSWER-
The distribution of paychecks by the employees' immediate supervisor is an internal
control weakness. Paychecks should go directly to employees either by mail or through
direct deposit. Giving the responsibility for distribution to the supervisor creates the
possibility of loss, theft, or withholding of pay from an employee that the supervisor
simply does not like. An additional risk arises if the employee is absent on payday and
the supervisor has no secure storage for the check until the employee is back.
Which of the following is NOT a reasonable control for fixed assets? - ANSWER-
Requiring that fully depreciated assets be disposed of immediately is not a reasonable
control for fixed assets. Fully depreciated assets may have years of useful life
remaining. For example, manufacturing machinery may be depreciated over three years
but many factories use machines that are 10, 15, or 20 years old if they are well
maintained.
What type of data is found in the general ledger master file? - ANSWER- Balances for
each account in the chart of accounts are found in the general ledger master file. The
text describes the general ledger file as the information hub for the accounting system.
Each record in the general ledger master file corresponds with one of the accounts in
the chart of accounts. Each record is either a GL Master account (i.e., Sales) or a
control account (i.e. Accounts Receivables control)
Which report is an output of the financial reporting system (FRS)? - ANSWER- A
comparative balance sheet is an output of the financial reporting system. The law
requires that corporations generate a series of financial reports - Income Statement,
Balance Sheet, Statement of Cash Flows, Tax Returns, and others. This requirement is
met by the financial reporting system.
A characteristic of the management reporting system (MRS) is - ANSWER- The
management reporting system (MRS) focuses on internal decision-making information.
The MRS is the source for reports that managers will use to analyze business
performance such as variance analysis, production efficiency, sales, and purchases.
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