Download AIS Final Exam 2025: 180 Questions & Answers (Graded A+) and more Exams Business Informatics in PDF only on Docsity!
AIS(Accounting Information System) FINAL EXAM 2025
/REAL 180 QUESTIONS AND ANSWERS|ALREADY
GRADED A+
Which of the following is not an implication of PCAOB Auditing Standard No. 5 and SEction 404 of the Sarbanes-Oxley Act? - ANS:->>>->Disclosure of material changes in an organization's financial condition is required on a "rapid and current basis" Which of the following component of an AIS does not comprise business process (as defined by the text)? - ANS:->>>->Systems development and operation TRUE OR FALSE: Communications is one of the ten elements in the study of AIS
- ANS:->>>->True Which of the following is not a requirement of a system? a. Organization b. Interrelationships c. Central objectives d. All of the above are requirements of a system - ANS:->>>->D. All of the above are requirements of a system What are the components of the functional model of an information system? - ANS:->>>->Input, processing, output, users TRUE OR FALSE: An information system consists solely of computer-based components – ANS:->>>-> False Which component of a business process is described as "a man-made system consisting of the people, equipment, organization, policies, and procedures whose objective is to accomplish the work of the organization"? - ANS:->>>-
Operations process TRUE OR FALSE: The objective of the management process is to "plan and control the operations of the organization." - ANS:->>>->True TRUE OR FALSE: Information is facts and figure in raw form - ANS:->>>- False Which of the following is NOT a characteristic of information quality? - ANS:-
->Recorded The correspondence or agreement between the information and the actual events or objects that the information presents is known as: - ANS:->>>->Accuracy Of the three steps of the decision-making process, which involves searching the environment for conditions calling for a decision? - ANS:->>>->Intelligence What is the correct order of the levels of management based on information requirements (from the most detailed to the most summarized information needs)? - ANS:->>>->Operations and business event processing, operations management, tactical management, strategic management Accountants can assume all of the following roles when interacting with an AIS system except ANS:->>>-> Programmer Which of the following is not a characteristic of an enterprise system? a. Provide a central information resource for an organization. b. Integrates the business process functionality and information from all the organization's functional areas c. Cooperation of multiple functional areas d. All of the above are characteristics of an enterprise system - ANS:->>>- D. All of the above are characteristics of an enterprise system.
different functional areas - ANS:->>>->False The module of a typical ERP system contains functions related to the acquisition of goods from vendors and management of the goods while they are in stock. - ANS:->>>->Materials management The module of the typical ERP system contains functions related to the sale of goods to customers - ANS:->>>->Sales and distribution TRUE OR FALSE: Most organizations group their major business events into two processes: the order-to- cash process and the purchase-to-order process - ANS:->>>->False The order-to cash process includes all but which of the following business processes? - ANS:->>>-> Accounts payable/cash disbursements process Which of the following is most likely not a 'pro' of an enterprise system? - ANS:-
->Centralized control versus decentralized empowerment In an automated accounting information system, the process 'update AR master data' is equivalent to which process in a manual system? - ANS:->>>->Posting the business event from journal to a subsidiary ledger TRUE OR FALSE: Both a manual and an automated accounting information system follow the general stages of input, processing, storage, output. - ANS:- ->True includes data processing functions related to economic events such as
accounting events, internal operations such as manufacturing, and financial statement preparation such as adjusting journal entries. - ANS:->>>-
Information processing The aggregation of several business events over some period of time with the subsequent processing of these data as a group by the information system is
known as: - ANS:->>>->Batch processing TRUE OR FALSE: In an online transaction entry (OLTE) system, business event data cannot be entered into the information system until after the business event occurs. - ANS:->>>->False Which of the following statements is not true regarding online-real time processing (OLRT)? ANS:->>>->Is frequently used with the periodic mode of transaction processing. TRUE OR FALSE: E-mail represents a strong form for e-business because of the standardized format by which messages are composed and transmitted. - ANS:-
->False Which of the following is NOT typically a result of using electronic data management (EDM)? - ANSWER ☑☑Decreased staff productivity The computer-to-computer exchange of business data in structured formats that allows direct processing of those electronic documents by the receiving computer system is: - ANSWER ☑☑Electronic data interchange (EDI) TRUE OR FALSE: One of the main advantages of using EDI for business event processing is the significant reduction in the need for interaction between purchasers and salespeople. - ANS:->>>->True A software application that supports direct interaction with software objects over an intranet or the Internet is known as: - ANS:->>>->Web services TRUE OR FALSE: The single most critical factor that has hampered the growth of Internet commerce is security. - ANS:->>>->True A(n) symbol depicts an entity or a process within which incoming data flows are transformed into outgoing data flows. - ANS:->>>->Bubble
ANS:->>>->Left to right, top to bottom In the systems flowchart for an enterprise system, how many data store/disk symbols should be included? - ANS:->>>->One Which of the following is NOT a consequence of data redundancy? - ANS:->>>-
Decreased storage costs TRUE OR FALSE: There are two approaches to business event processing: Application approach and centralized database approach. - ANS:->>>->True In the approach to business event processing, facts about events are stored in relational database tables instead of separate files. - ANS:->>>- centralized database TRUE OR FALSE: With the centralized database approach to business event processing, an item of data is only stored once. - ANS:->>>->True The way that data is actually stored on the computer hardware is called the view of the data. - ANS:->>>->physical Which of the following is not one of the three layers of a three-tier architecture? - ANS:->>>->Report generation tier Which of the following is not one of the types of DBMS models? - ANS:->>>- logical TRUE OR FALSE: In a hierarchical DBMS, a child record can have more than one parent record. - ANS:->>>->False In a database model, data are logically organized in two-dimensional tables.
Onscreen presentations that allow users to view data from one or more tables or collected by queries from one or more tables and input new data are called: - ANS:->>>->forms The type of information systems that assists managers with unstructured decisions by retrieving and analyzing data for purposes of identifying and generating useful information is: - ANS:->>>->decision support system (DSS) The process of capturing, storing, retrieving and distributing the knowledge of the individuals in an organization for use by others in the organization to improve the quality and efficiency of decision making across the firm is known as: - ANS:->>>->knowledge management A(n) in an accounting system can be classified as a resource, event, or agent about which data are collected. - ANS:->>>->entity In a relational database, the entity is represented as a , and instances are represented as within that table. - ANS:->>>->table, rows
The command retrieves the values for a list of attributes from the tuples of a single relation. - ANS:->>>->SELECT Which of the following is an attribute is most likely to be the key attribute? - ANS:->>>->employee number Which of the following is not one of the four categories of management objectives addressed by the ERM framework? - ANS:->>>->planning Which of the following is not an appropriate risk response? - ANS:->>>->transfer In this component of ERM, policies and procedures are established and implemented to help ensure the risk responses are carried out. - ANS:->>>-
control activities Which section of the Sarbanes-Oxley Act mandates the annual filing of an internal control report to the SEC? - ANS:->>>-> This component of internal control sets the tone of an organization and is the foundation for all other components of internal control, providing discipline and structure. - ANS:->>>->control environment Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in all the following categories except: a. effectiveness and efficiency of operations b. reliability of reporting c. compliance with applicable laws and regulations d. all of the above are categories of internal control - ANS:->>>->all of the above are categories of internal control TRUE OR FALSE: Fraud is a deliberate act or untruth intended to obtain unfair or unlawful gain. - ANS:->>>->True
In this type of malware, a computer virus replicates itself on disks, in memory, and across networks, effectively shutting down the system. - ANS:->>>-
worm TRUE OR FALSE: Update validity controls ensure that input data are appropriately authorized and represent actual economic events and objectives. - ANS:->>>->False
Which of the following is not a control goal of the operations process? - ANS:-
->ensure update completeness Which type of control plans discover that problems have occurred? - ANS:->>>- detective control plans Which level of the control hierarchy is defined as relating to a multitude of goals This component of internal control sets the tone of an organization and is the foundation for all other components of internal control, providing discipline and structure. - ANS:->>>->control environment Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in all the following categories except: a. effectiveness and efficiency of operations b. reliability of reporting c. compliance with applicable laws and regulations d. all of the above are categories of internal control - ANS:->>>->all of the above are categories of internal control TRUE OR FALSE: Fraud is a deliberate act or untruth intended to obtain unfair or unlawful gain. - ANS:->>>->True In this type of malware, a computer virus replicates itself on disks, in memory, and across networks, effectively shutting down the system. - ANS:->>>- >worm TRUE OR FALSE: Update validity controls ensure that input data are appropriately authorized and represent actual economic events and objectives. - ANS:->>>->False Which of the following is not a control goal of the operations process? - ANS:- >>>->ensure update completeness Which type of control plans discover that problems have occurred? - ANS:->>>- >detective control plans Which level of the control hierarchy is defined as relating to a multitude of goals and processes? - ANS:->>>->pervasive control plans TRUE OR FALSE: Segregation of duties consists of the four functions of authorizing, executing, recording, and safeguarding resources resulting from consummating events. - ANS:->>>->True Physically moving resources, such as picking inventory from bins, is an example of which function of event processing? - ANS:->>>->executing event project future managerial and technical skills of the staff, anticipate turnover, and develop a strategy for filling necessary positions. - ANS:->>>- Personnel management control plans TRUE OR FALSE: Rotation of duties and forced vacations serve as both detective and corrective control plans - ANS:->>>->False
and serves no purpose other than control? - ANS:->>>->hash totals TRUE OR FALSE: A control matrix is often used to assess the "effectiveness of control design," which is required to comply with SOX section 404. - ANS:-
->True In a control matrix, goals describe measures of success for the operations process. - ANSWER ☑☑effectiveness TRUE OR FALSE: The purpose of update control goals is to ensure update accuracy (UA), update completeness (UC) and update validity (UV). - ANS:- ->False TRUE OR FALSE: The first step in preparing a control matrix is to identify recommended control plans for the business process being evaluated. - ANS:- ->False This control plan controls the entry of data by defining the acceptable format of each data field. - ANS:->>>->preformatted screens
This programmed edit check compares calculations performed manually to those performed by the computer to determine whether a document has been entered correctly. - ANS:->>>->mathematical accuracy checks The control plan "reviewing the tickler file" primarily addresses control goals of (1) effectiveness of operations (e.g., timeliness) and (2) input and update. - ANS:->>>-
completeness When input documents are keyed by one individual and then rekeyed by a second individual to ensure input accuracy a control known as is being
used. - ANS:->>>->key verification TRUE OR FALSE: Preventive controls generally provide greater assurance than detective controls. - ANS:->>>->True Which of the following control plans does not address the control goal of input validity? - ANSWER ☑☑review tickler file Checking to see that approvals are present on all input documents is an example of:
- ANSWER ☑☑ensure security of resources TRUE OR FALSE: Sales force automation (SFA) software allows a customer to complete an inquiry or perform a task within an organization's business process without the aid of the organization's employees. - ANS:->>>->False This method of electronic data capture uses pattern recognition of handwritten or printed characters. - ANS:->>>->optical character recognition Which entity would you not expect to interact with the OE/S process? - ANS:-
->bank
TRUE OR FALSE: Both credit cards and debit cards are used to reduce or eliminate the float associated with cash receipts - ANS:->>>->True Skimming is a fraud by which funds being paid by one customer are stolen, and the theft is covered up by applying funds received from another customer to the first customer's account. - ANS:->>>->False TRUE OR FALSE: In an open-item system, accounts receivable records consist of a customer's balance, categories as current and past due, and current account activity, including current charges, finance charges and payments. - ANS:->>>-
False What document is the trigger for the process 'Perform billing'? - ANS:->>>- shipping's billing notification Which entity would you not expect to interact with the Billing/Accounts Receivable/Cash Receipts (B/AR/CR) process? a. customer b. receiving department c. bank d. all of the above - ANS:->>>->all of the above In the B/AR/CR process, a document called a(n) serves to notify the customer of an obligation to pay the seller for the merchandise ordered and shipped. - ANS:-
->invoice Which of the following processes are performed in receiving a customer payment? - ANS:->>>->both A and B compare payment and remittance advice record customer payment
Which of the following is not a process in the sale return event, for an item that was sold on account? - ANS:->>>->GL cash receipts update is a repository of all unpaid invoices issued by an organization and awaiting final disposition - ANS:->>>->Accounts receivable master data Which of the following data stores is not accessed by the process 'Perform billing'? - ANS:->>>->cash receipts event data This control plan assumes that a segregation of duties exists between those who approve unit prices and those involved in the selling function, such as customer sales representatives and billing clerks. - ANS:->>>->Independent pricing data TRUE OR FALSE: The control plan 'Independent billing authorization' primarily addresses the control goal of ensuring input completeness of shipping notices. - ANS:->>>->False Which of the following control plans does not address the control goal of ensuring input accuracy of remittance advices? - ANS:->>>->Immediately endorse incoming checks. TRUE OR FALSE: The goal of supply chain management (SCM) is to increase product availability by increasing inventory across the supply chain. - ANS:-
->False Which is the technique of analyzing all incremental costs associated with acquiring and carrying particular items of inventory to determine how much inventory to order? - ANS:->>>->economic order quantity (EOQ) Which entity would you not expect to interact with the Purchasing process? - ANS:->>>->customer
Which of the following is not a primary function of the accounts payable/cash disbursements (AP/CD) process? - ANS:->>>->Handle the repetitive work routines of the receiving department Which entity is responsible for processing invoices received from vendors, preparing payment vouchers for subsequent disbursement of cash for goods or services received, and recording purchase and disbursement events? - ANS:-
->accounts payable TRUE OR FALSE: Evaluated receipt settlement (ERS) is a process by which an organization pays for a purchase on the basis of the goods receipt. - ANS:->>>- True What document is the trigger for the process 'Establish payable'? - ANS:->>>- vendor invoice TRUE OR FALSE: The payment process is triggered by payment due date information from the Vendor master data. - ANS:->>>->False Which document is not one of the three documents compared when validating a vendor invoice? - ANS:->>>->All of the above are compared Which entity would you not expect to interact with the accounts payable/cash disbursements (AP/CD) process? - ANS:->>>->customer
In the AP/CD process, a document called a(n) notifies the purchaser of an obligation to pay the vendor for goods (or services) that were ordered by and shipped (or provided) to the purchaser. - ANS:->>>->invoice Which technology is not used by an electronic invoice presentment and payment (EIPP) system? - ANS:->>>->None. Any of these technologies could be used. contains, in chronological sequence, the details of each cash payment made.
- ANSWER ☑☑Cash disbursements event data Which of the following data stores is not accessed by the process 'Record payable'?
- ANSWER ☑☑vendor master data Under this control plan, authority to record a vendor invoice comes from the PO and receiving report data created by entities other than the entity that records the vendor invoice and typically requires segregation of duties among purchasing, receiving and accounts payable. - ANS:->>>->Independent validation of vendor invoice Which of the following control plans does not address the control goal of ensuring security of resources?
- ANS:->>>->Match invoice, purchase order, and receiving report TRUE OR FALSE: The general ledger and business reporting (GL/BR) process is an interacting structure of people, equipment, activities, and controls that is designed to accomplish both operations and information system functions. - ANS:->>>->True A is any business process that accumulates business event data that are then communicated to and processed within the GL. - ANS:->>>->feeder process Which of the following is true about the managerial reporting officer and the financial reporting officer?
