Final Examination in Accounting Information Systems

1. It is prepared to formally authorize the fixed asset department to remove from the ledger an asset disposed of by the
user department.
a. Fixed Asset Ledger
b. Fixed Asset Disposal Report
c. Adjusting Entry
d. Fixed Asset Depreciation Report
2. This phase of database design determines the associations between entities and documents them.
a. Identify entities
b. Construct the physical database
c. Prepare user views
d. Construct a data model showing entity associations
3. The concept of duality means that an REA diagram must consist of
a. two events—one of them economic and the other support
b. two resources—one increased and the other decreased by the same event
c. two agents—one of them internal and the other external
d. all of the above
4. It is multi-module application software that helps a company manage the important parts of its business in an
integrated fashion.
a. ERP System Configuration
b. ERP System
c. Non-ERP System
d. ERP Applications
5. It consists of records and methods used to initiate, identify, analyze, classify, and record the organization's
transactions
a. Accounting Information System
b. Information Technology Control
c. Transaction Processing System
d. Integrate Special Computer Modules
6. Information is best described as
a. Facts that are useful when processed in a timely manner.
b. The same thing as data.
c. Data that has been organized and processed so that it is meaningful to the user
d. Raw facts about transactions
7. It applies when the payment of the account is due at some future date. It includes receiving and securing the cash;
depositing the cash in the bank; matching the payment with the customer and adjusting the correct account; and
properly accounting for and reconciling the financial details of the transaction.
a. Sales Order Processing
b. Revenue Cycle Controls
c. Cash Receipts Procedure
d. Credit Transactions
8. It is a model which provides standards by which the products of different manufacturers can interface with one
another in a seamless interconnection at the user level.
a. Electronic Data Interchange (EDI)
b. Open System Interface (OSI) Network Protocol
c. Network Topology
d. Enterprise Resource Planning (ERP)
9. A Computer-Aided Manufacturing (CAM) facility makes use of group technology cells composed of various types of
CNC machines to produce an entire part from start to finish in one location.
a. True
b. Computer-Aided Design (CAD)
c. Island of Technology
d. Computer Integrated Manufacturing (CIM)
10. Which is the correct sequence of Manual Payroll Process?
I. The general ledger department reconciles summary information from cost accounting and AP. Control accounts are
updated to reflect these transactions.
II. The payroll department reconciles this information, calculates the payroll, and distributes paychecks to the
employees.
III. Payroll authorization and hours worked enter the payroll department from two different sources: personnel and
production.
IV. Cost accounting receives information regarding the times penton each job from production. This is used for posting
to WIP account.
V. AP receives payroll summary information from the payroll department and authorizes the cash disbursements
department to deposit a single check, in the amount of the total payroll, in a bank imprest account on which the
payroll is drawn.
a. II, IV, V, I, III
b. III, II, IV, V, I
c. V, I, II, III, IV
d. I, II, III, IV, V
11. The department that concludes the expenditure cycle process. It is where the clerk matches them with open vouchers
and transfers these closed items to the closed voucher file.
a. Receiving Department
b. Production Department
c. Cash Disbursements Department
d. Accounts Payable Department
12. The process of collecting data from operational databases, flat-files, archives, and external data sources.
a. Extracting data from operational databases
b. Transforming data into the warehouse model
c. Modeling data for the data warehouse
d. Loading the data into the data warehouse database
13. It may have only tens of gigabytes of data. When the data warehouse is organized for a single department or function,
it is often called:
a. Data Mart
b. Data File
c. Data Modeling
d. Data Mining
14. A data coding scheme that represent complex items or events involving two or more pieces of related data. The code
consists of zones or fields that possess specific meaning.
a. Sequential Coding
b. Mnemonic Coding
c. Block Coding
d. Alphabetical Coding
CORRECT ANSWER: Group Coding
15. This stage where data attributes is constantly updated, new attributes are added, and obsolete attributes are deleted on
a regular basis.
a. Modeling data for the data warehouse
 b. Extracting data from operational databases
c. Cleansing extracted data
d. Loading the data into the data warehouse database
16. ____________ include the tasks involved in identifying inventory needs, placing the order, receiving the inventory,
and recognizing the liability.
a. Purchasing Process
b. Purchasing Processing Procedure
c. Processing Procedures
d. Purchases Processing Procedure
17. REA modeling embraces two events which are:
a. Economic events and support events
b. Ecological events and system events
c. Economic events and system events
d. Ecological events and sampling events
18. Which type of processing suits the computer-based payroll system?
a. Online Processing
b. Batch Processing
c. One-by-One Processing
d. Manual Processing
19. It protects the firm’s assets from numerous undesirable events that bombard the organization.
a. The Control Environment
b. Board of Directors
c. Code of Ethics
d. Internal Control System
20. The main activities of inventory control are:
I. Provides production planning and control with status reports.
II. Keep inventories stored with proper care at the proper area.
III. Continually involved in updating the raw material inventory records.
IV. Track where and how much inventory is used per unit of product.
V. Records the completed production.
VI. Minimize total inventory costs while ensuring adequate inventories exist.
a. I, III, V
b. I, II, IV, V
c. I, II, III, IV, V, VI
d. I, III, V, VI
21. It is a network security device that tracks incoming and outgoing network traffic and allows or blocks data packets
based on a set of security rules.
a. Digital Envelope
b. Firewall
c. Antivirus
d. Advanced Encryption Standard
22. Which of the following is an extension of MRP that has evolved beyond the confines of inventory management and is
both a system and a philosophy for coordinating a wide range of manufacturing activities?
a. Material Resources Planning
b. Manufacturing Requirements Planning
c. Manufacturing Resources Planning
d. Material Requirements Planning
23. This is a security protocol that provides secure transactions over the Web.
a. Secure Sockets Layer (SSL)
 b. Secure Electronic Transmission (SET
c. Private Communications Technology (PCT)
d. Privacy Enhanced Mail (PEM)
24. These are classification schemes that are compliant with XBRL Specifications to accomplish a specific information
exchange or reporting objective such as filing with the SEC.
a. Database
b. XBRL Instance Document
c. Taxonomies
d. Taxonomy Mapper
25. It is a factor that influences MRS by providing insight into management information needs.
a. Problem Structure
b. Responsibility Accounting
c. Management Function
d. Management Principle
26. It denotes a false representation of a material fact made by one party to another party with the intent to deceive and
induce the other party to justifiably rely on the fact to his or her detriment.
a. Fraud
b. SOX
c. Internal Control
d. Business Ethics
27. When un-normalized tables are split into multiple 3NF tables, they need to be linked together via foreign keys so the
data in them can be:
a. Easily selected in order to identify the objects that are important to the business
b. Related to each other and be easily accessible to users
c. Categorized depending on their attributes and entities they have
d. Manipulated by the users
28. All data processing is performed by one or more large computers housed at a central site that serve users throughout
the organization.
a. Singular Data Processing
b. Centralized Data Processing
c. Distributed Data Processing
29. ______________ is an information system model that enables an organization to automate and integrate its key
business processes.
a. Enterprise Resource Planning System
b. Entity Resource Planning System
c. Enterprise Resourceful Planning System
d. Entertainment Resource Planning System
30. Lean manufacturing involves getting the right products to the right place, at the right time, in the right quantity while
_________ waste and remaining flexible. Complete the statement.
a. Minimizing
b. Reducing
c. Budgeting
d. Maximizing
CORRECT ANSWER: Eliminating
31. It is an interactive system that provides real-time input and output with batch updating of only some master files.
a. Sales Order Processing
b. Real-Time Processing
c. Computer-Bases Accounting System
d. Batch Processing
32. These are the actual financial reports generated by the computer programs that recognize and interpret the tags
associated with the data attributes.
a. Database
b. Taxonomy Mapper
c. Taxonomies
d. XBRL Instance Document
33. Which of the following are characteristics of economic agents?
a. They participate in economic events, but do not assume control of the resources
b. Internal agents are employees of the company whose system is being modeled
c. They participate in economic events, but not in support events
d. All of the above describe agents
34. An electronic commerce model where online transactions only involve the manufacturers, wholesalers, retailers etc.
a. Consumer to Consumer
b. Business to Consumer
c. Business to Business
d. Consumer to Business
35. How does batch processing affect the operational efficiency of a company?
a. It decreases operational efficiency because it requires more time to process more transactions
b. It increases operational efficiency by processing more transactions immediately
c. It increases operational efficiency by processing more transactions at a short period of time
d. It decreases operational efficiency because it uses less storage
36. It provides internal management with special-purpose financial reports and information needed for decision making
such as budgets, variance reports, and responsibility reports.
a. Management Reporting System
b. Accounting Information System
c. Financial Accounting System
d. Management Information System
37. To record the acquisition of a fixed asset, which of the following documents will be received by the fixed asset
accounting clerk as evidences that the asset was already received by the company?
I. Receiving Report
II. Petty Cash Voucher
III. Cash Disbursement Voucher
a. I, II
b. II, III
c. I, II, III
d. I, III
38. Which of the following describes the differences of an ER Diagram to a REA Diagram?
I. ER Diagrams are of one class and their proximity is determined by their cardinality. While, REA Diagram are
divided into three classes and organized into constellations by class on the diagram
II. REA Diagrams are typically organized from top to bottom within the constellation to focus on the sequence of
event. While, ER Diagrams present a static picture of the underlying business phenomena
III. In ER Diagrams, entity names are always represented in the singular noun form. REA modeling applies this rule
when assigning names to resource and agent activities. However, in REA Diagrams, event entities represent and
describe data tables that will store data about processes, but they are not representing or describing the processes
themselves.
a. All are correct
b. I and II
c. III only
d. I only
39. How does real time processing affect the cost incurred by a company?
a. It decreases the cost because it requires less storage
b. There is no effect
c. It increases the cost because it requires more storage
d. Cost from real time and batch processing are the same
40. These principles define the vertical reporting channels of the firm through which information flows.
a. Span of Control
b. Responsibility and Authority
c. Management by Exception
d. Formalization of Tasks
41. It is a computer to computer exchange of standard business documents such as purchase orders, invoices, inventory
levels and shipping notices.
a. PO file
b. EFT (Electronic Funds Transfer)
c. AP tools
d. EDI (Electronic Data Interchange)
42. The last phase in database design
a. Add primary keys and attributes to the model
b. Construct a data model showing entity associations
c. Construct the physical database
d. Prepare user views
43. In this function, a cash receipts employee verifies the accuracy and completeness of the checks against the prelist; and
any checks that are possibly lost and misdirected are identified.
a. Reconcile cash receipts and deposits
b. Open mail and prepare remittance advice
c. Update general ledger
d. Record and deposit checks
44. A phase in database design where every attribute in an entity should appear directly/indirectly in one or more user
views.
a. Prepare user views
b. Normalize the data and add foreign keys
c. Construct the physical database
d. Add primary keys and attributes to the model
45. A type of attack wherein a hacker sends ping which consequently triggers an echo request message to the host co
a. SYN Flood Attack
b. Distributed DDoS
c. Smurf Attack
d. Caesar Cipher
46. In this step, the remittance advices are used to post to the customers’ accounts in the AR subsidiary ledger.
a. Update general ledger
b. Reconcile cash receipts and deposits
c. Record and deposit checks
d. Update accounts receivable
47. It is termed as a study of proper business policies and practices regarding potentially controversial issues.
a. Organizational ethics
b. Work ethics
c. Business ethics
d. Computer ethics
48. The set of formal procedures by which data are collected, processed into information, and distributed to users.
 a. Data Collection System
b. Information System
c. Accounting Information System
d. Data Processing System
49. DFD and ER diagram are related to each other because
a. Each data store in the DFD represents a corresponding data entity in the ER diagram.
b. DFD and ER diagram are not related
c. They represent physical relationship in the system
d. They belong to the same system
50. Each record in the requisition file defines a separate inventory item to be replenished. The record contains:
a. Inventory item number, a description of the item, quantity to be ordered, standard unit price, vendor
number
b. Inventory number, quantity to purchase, actual price, vendor name
c. Inventory item number, a description, quantity to be ordered, unit price, and the vendor number.
d. Inventory item number, a description of the item, quantity to be ordered, actual unit price, vendor number