Question 1

Sienna used a stack of sales invoices to record journal entries in the AIS.She used those entries and others to prepare an income statement that was later reviewed by her supervisor.The supervisor's review could best be described as which generic element of the AIS?
A)Input
B)Output
C)Process
D)Internal control

Accepted Answer

The supervisor's review is part of the internal control element of the AIS because it ensures that the income statement is accurate and reliable. The input element involves capturing data and recording it in the system, which Sienna did with the sales invoices. The output element involves generating reports or other forms of output from the data in the AIS. The process element refers to the procedures and rules that govern how data is processed and used in the system.

Question 2

Which of the following statements best demonstrates a similarity between AIS and other areas of study in accounting?
A)AIS is primarily concerned with numbers.
B)Communication skills are important in AIS.
C)Both AIS is primarily concerned with numbers and communication skills are important in AIS.
D)Neither AIS is primarily concerned with numbers nor communication skills are important in AIS.

Accepted Answer

Communication skills are important in most areas of accounting, not just AIS. Therefore, this statement demonstrates a similarity between AIS and other areas of study in accounting. The other options do not accurately represent a similarity between AIS and other areas of study in accounting.

Question 3

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files.Which of the following includes one example of each file type?
A)Purchases, sales, inventory
B)Purchases, inventory, purchases/inventory
C)Cash receipts, cash payments, cash on hand
D)Sales, cost of goods sold, inventory

Accepted Answer

The answer of Storage is one generic element of the...

Question 4

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.

Accepted Answer

AIS often looks at the "big picture" of accounting, whereas other areas of accounting may focus on specific transactions or financial statements. AIS is concerned with the overall information system that collects, stores, and processes accounting data for decision-making purposes.

Question 5

AIS study sometimes involves questions with deterministic answers.Which of the following questions is most likely to have a deterministic answer?
A)How should a company record the purchase of supplies on account in its AIS?
B)In a corporation with sales of $100,000 annually, what dollar amount should be considered material?
C)Which processing tools should the AIS use?
D)Has the conceptual framework achieved the FASB's original objective for developing it?

Accepted Answer

The question is asking for a specific method of recording a transaction in the AIS, which would have a deterministic answer. The other options involve subjective judgments and may not have a clear-cut answer.

Question 6

The generic elements of an AIS include processes and storage.Which of the following statements about them is most true?
A)Both require internal controls, but the specific controls may be different.
B)Both require identical internal controls.
C)Storage is not subject to internal controls, but processes are.
D)Processes are not subject to internal controls, but storage is.

Accepted Answer

Both processes and storage require internal controls, but the specific controls may differ based on the nature of the process or storage. For example, the internal controls for inventory storage may differ from those for customer data storage. Similarly, the internal controls for payroll processing may differ from those for order processing.

Question 7

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files.Which of the following includes three examples of the same file type?
A)Purchases, cash receipts, sales
B)Inventory, cash receipts, sales
C)Purchases, cash, sales
D)Inventory, cash, sales

Accepted Answer

Purchases, cash receipts, and sales are examples of transaction files, which record the day-to-day business transactions.

Question 8

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)Inputs
B)Outputs
C)Storage
D)Processes

Accepted Answer

Storage is missing from the list provided. Analyzing source documents, using Excel, making journal entries, and preparing tax returns all relate to inputs, processes, and outputs of an Accounting Information System (AIS), but there's no mention of how the information is stored, which is a critical component of AIS.

Question 9

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS.Which of the following is a process that might be studied in management or cost accounting?
A)Components of the master budget
B)How to prepare the master budget
C)Both components of the master budget and how to prepare the master budget
D)Neither components of the master budget nor how to prepare the master budget

Accepted Answer

Management or cost accounting would likely focus on the process of how to prepare the master budget, rather than the specific components of the budget. This process involves analyzing historical data, forecasting future trends, and making decisions about resource allocation.

Question 10

Ethan is an accountant for a small startup business.He is trying to decide if the business should use paper-based journals and ledgers or a spreadsheet to record transactions.He is therefore making a decision about which generic element of the AIS?
A)Inputs
B)Processes
C)Outputs
D)Technology

Accepted Answer

The answer of Ethan is an accountant for a small...

Question 11

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS.Which of the following pairs a generic element of the AIS with a specific example from financial accounting?
A)Bank reconciliation, internal control
B)Adjusting entries, output
C)Financial statements, storage
D)FASB Conceptual Framework, input

Accepted Answer

Bank reconciliation is a generic element of AIS that relates to internal control in financial accounting. Bank reconciliation is necessary to ensure that the cash balance reported in the financial statements is reconciled with the cash balance in the company's bank account, which helps to ensure the accuracy of financial reporting. Internal control is important in financial accounting to ensure that the financial statements are reliable and trustworthy. Therefore, choice A is the best answer. B, C, and D do not provide a correct pairing of a generic element of AIS with a specific example from financial accounting.

Question 12

Which generic element of the AIS is focused on master files, transaction files and junction files?
A)Inputs
B)Processes
C)Outputs
D)Storage

Accepted Answer

The generic element of the AIS that is focused on master files, transaction files, and junction files is storage. Storage is the process of storing data and information including master files, transaction files, and junction files within the AIS. These files are important for the effective functioning of the AIS as they contain key information about the organization's activities and transactions.

Question 13

The generic elements of an AIS include inputs and outputs.Which of the following statements about them is most true?
A)Inputs should be paper-based; outputs should be electronic.
B)Outputs should be paper-based; inputs should be electronic.
C)If inputs are paper-based, outputs should also be paper-based.
D)If inputs are electronic, outputs could be either paper-based or electronic.

Accepted Answer

If the inputs are electronic, then the outputs could be either paper-based or electronic. There is no requirement for outputs to be paper-based if inputs are paper-based, and vice versa. The choice of inputs and outputs depend on the organization's needs and preferences.

Question 14

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

Accepted Answer

Management accounting involves the use of professional judgment to interpret cost variances and prepare budgets, which aligns with the analytical and decision-making aspects of AIS (Accounting Information Systems).

Question 15

The generic structure of most accounting information systems comprises ___ elements.
A)Three
B)Four
C)Five
D)More than five

Accepted Answer

The generic structure of most accounting information systems typically comprises five elements: data input, data storage, data processing, information output, and internal controls.

Question 16

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

Accepted Answer

The statement of cash flows is an example of an AIS output as it summarizes the cash inflows and outflows for a specific period of time. Journal entries, sales transaction files, and general ledger software are all examples of AIS inputs or processes.

Question 17

Sienna used a stack of sales invoices to record journal entries in the AIS.She used those entries and others to prepare an income statement that was later reviewed by her supervisor.All the generic elements of the AIS are represented in Sienna's actions except:
A)Internal controls
B)Outputs
C)Storage
D)Inputs

Accepted Answer

The answer of Sienna used a stack of sales invoices...

Question 18

Which of the following statements about AIS is most true?
A)The topics studied in an AIS course are unrelated to those in other accounting courses.
B)AIS is the only area of accounting that involves questions with nondeterministic answers.
C)The five generic elements of an AIS can be discussed in other areas of accounting.
D)All of these statements are true.

Accepted Answer

The five generic elements of an AIS - people, procedures and instructions, data, software, and information technology infrastructure - can be discussed and applied to other areas of accounting. Therefore, statement C is the most true, while A and B are false, and D is incorrect because not all of the statements are true.

Question 19

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.

Accepted Answer

AIS (Accounting Information Systems) often deals with complex systems, data analytics, and the integration of information technology with accounting principles. This complexity can lead to situations where answers are not always clear-cut or deterministic, unlike many problems in introductory accounting which tend to have more straightforward, deterministic answers.

Question 20

In an auditing course, students develop their decision making skills, learn how to conduct a financial statement audit and learn the various types of audit reports.Which of the following therefore links AIS with auditing?
A)Communication skills
B)Professional judgment
C)Both communication skills and professional judgment
D)Neither communication skills nor professional judgment

Accepted Answer

Both communication skills and professional judgment are essential in both AIS and auditing. AIS professionals must communicate effectively with key stakeholders and use professional judgment to make decisions regarding system design and implementation. Similarly, auditors must communicate effectively with clients and use professional judgment when conducting audits and issuing reports. Therefore, the two fields overlap in terms of necessary skills and competencies.

Quiz 2: Role and Purpose of Accounting Information Systems

Sienna used a stack of sales invoices to record journal entries in the AIS.She used those entries and others to prepare an income statement that was later reviewed by her supervisor.The supervisor's review could best be described as which generic element of the AIS?

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

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files.Which of the following includes one example of each file type?

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

AIS study sometimes involves questions with deterministic answers.Which of the following questions is most likely to have a deterministic answer?

The generic elements of an AIS include processes and storage.Which of the following statements about them is most true?

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files.Which of the following includes three examples of the same file type?

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?

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS.Which of the following is a process that might be studied in management or cost accounting?

Ethan is an accountant for a small startup business.He is trying to decide if the business should use paper-based journals and ledgers or a spreadsheet to record transactions.He is therefore making a decision about which generic element of the AIS?

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS.Which of the following pairs a generic element of the AIS with a specific example from financial accounting?

Which generic element of the AIS is focused on master files, transaction files and junction files?

The generic elements of an AIS include inputs and outputs.Which of the following statements about them is most true?

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?

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

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

Sienna used a stack of sales invoices to record journal entries in the AIS.She used those entries and others to prepare an income statement that was later reviewed by her supervisor.All the generic elements of the AIS are represented in Sienna's actions except:

Which of the following statements about AIS is most true?

Which of the following statements about AIS is most true?

In an auditing course, students develop their decision making skills, learn how to conduct a financial statement audit and learn the various types of audit reports.Which of the following therefore links AIS with auditing?