Accounting Information Systems

Quiz #1 (Chapter 1 and 2)

Name: Carmen Ortiz Date: 04/24/18

1. An accounting information system is a set of interrelated:

A. Activities and documents

only.
B. Activities and technologies
only.
C. Documents and technologies
only.
D. Activities, documents and
technologies.

2. An accounting information system is a set of interrelated:

A. Activities and documents only.

B. Activities and technologies only.
C. Documents and technologies only.
D. Activities, documents and
technologies.

3. The components of an accounting information system are designed to collect ___ and
report ___.

A. Data;
information
B. Data;
data
C. Information;
information
D. Information;
data

4. Which of the following best fits the definition of an accounting information system
explained in the text?

A. A checkbook
register
B. A publicly-traded corporation's financial
statements
C. Processed source documents leading to the general purpose
financial statements
D. An Excel spreadsheet of financial statement
ratios

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 5. 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.

A. I and II
only
B. I and III
only
C. II and III
only
D. I, II and
III

6. 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:

A. Principles of debit
and credit
B. Objective of financial
reporting
C. Elements of financial
statements
D. Qualitative characteristics of accounting
information

7. Which of the following best explains why AIS is an important area of study for future
accountants?

A. AIS connects other areas of accounting, such as intermediate and cost

accounting.
B. AIS connects accounting with other subjects, such as finance and
management.
C. Both AIS connects other areas of accounting, such as intermediate and
cost accounting and AIS connects accounting with other subjects, such as
finance and management.
D. Neither AIS connects other areas of accounting, such as intermediate and cost
accounting nor AIS connects accounting with other subjects, such as finance and
management.

8. 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?

A. Asset
s
B. Equi
ty

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 C. Expens
e
D. Liabiliti
es

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 9. Which of the following elements of the conceptual framework fit within the same
category?

A. Economic entity, historical

cost
B. Conservatism, historical
cost
C. Economic entity,
conservatism
D. Conservatism,
materiality

10. Which of the following statements best demonstrates a difference between AIS and
other areas of study in accounting?

A. General ledger software can only be used

in AIS.
B. The matching principle is less important in AIS than in other areas of
accounting.
C. AIS often looks at the "big picture" of
accounting.
D. Topics studied in AIS courses are not typically included on accounting
professional exams.

11. 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?

A. Use of professional
judgment
B. Journal entry
preparation
C. Both use of professional judgment and journal entry
preparation
D. Neither use of professional judgment nor
journal entry preparation

12. The generic structure of most accounting information systems comprises ___
elements.

A. Three
B. Four
C. Five
D. More than
five

13. Which of the following is an example of an AIS output?

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 A. Journal entries
B. Statement of cash
flows
C. Sales transaction file
D. General ledger
software

14. Most accounting information systems comprise five parts. Which of the following must be
used as a processing tool in the AIS?

A. Spreadshee
ts
B. Relational
databases
C. Both spreadsheets and relational
databases
D. Neither spreadsheets nor relational
databases

15. Which of the following statements about accounting and bookkeeping is most true?

A. The FASB Conceptual Framework is relevant in accounting, but not in

bookkeeping.
B. The FASB Conceptual Framework is relevant in bookkeeping, but not in
accounting.
C. As an element of the AIS, internal controls are irrelevant to
bookkeeping.
D. As an element of the AIS, outputs are relevant
to accounting.

16. As an internal control for source documents, transaction limits are most likely to ___ an
error.

A. Preven
t
B. Dete
ct
C. Correc
t
D. Eliminat
e

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 17. Which type of coding system helps people remember the meaning of the code?

A. Sequenti
al
B. Bloc
k
C. Hierarchic
al
D. Mnemo
nic

18. The accounting department at a local university uses the prefix ACC for all its courses,
thus exemplifying which type of coding system?

A. Sequential
B. Block
C. Hierarchica
l
D. Mnemonic
19. Most organizations use purchase orders to authorize inventory and other purchases. If a
company's purchase order contains a field labeled "purchase order number," it most
likely uses what kind of coding?

A. Sequenti
al
B. Block
C. Hierarchic
al
D. Mnemonic

20. As an internal control measure in the accounting cycle, physical security most clearly
applies to:

A. Source documents
B. The balance sheet
C. The income statement
D. The statement of cash
flows

21. 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?

A. Buying inventory, selling inventory,

balance sheet
B. Buying inventory, sales invoice, general
ledger software
C. Selling inventory, sales invoice, balance
sheet
D. Selling inventory, writing a check, general ledger
software

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 22. An accounting information system transforms inputs into outputs via processes such as:

A. Journalizing transactions and posting them

to the ledger
B. Identifying the elements of the FASB Conceptual
Framework
C. Always utilizing information
technology
D. Recognizing and adapting to the cost-benefit
constraint

23. Which of the following statements about AIS is most true?

A. Compared to introductory accounting, AIS is more likely to have problems

with nondeterministic answers.
B. Compared to introductory accounting, AIS is less likely to have problems with
nondeterministic answers.
C. Introductory accounting and AIS are equally likely to have problems with
nondeterministic answers.
D. All problems in AIS have nondeterministic answers.

24. 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?

A. Input
s
B. Output
s
C. Stora
ge
D. Processe
s

25. Which of the following is an example of an AIS output?

A. Journal
entries
B. Statement of cash
flows
C. Sales transaction
file
D. General ledger
software

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