Questions:

True or False
1. Fixed assets are similar in the concept to the purchase system in Chapter 4.
Ans: False
2. A firm's fixed asset system processes transactions pertaining to the acquisition, maintenance, and disposal of its fixed
assets.
Ans: True
3. A form of payroll fraud involves submitting a time machine for employees who no longer work for the firm. To prevent
this then personnel action form helps payroll keep the employee records current.
Ans: False
4. Data processing department receives all the hard copies and transforms them into digital files.
Ans: True
5. Fixed Asset acquisition should be informal and implicitly authorized
Ans: False
6. Human resource management (HRM) need to provide real-time access to personnel files for purposes of direct
inquiries and recording changes in employee status as they occur.
Ans: True
7. Each subsidiary record should indicate the current location of the asset.
Ans: True
8. It is true that a form of payroll fraud involves submitting timecards for existent employees?
Ans: False
9. Supervisors should observe the time-keeping process and reconcile the time cards with actual attendance.
Ans: True
10. Asset acquisition involves adjusting the fixed asset subsidiary account balances as the assets depreciate over time or
with usage.
Ans: False

Multiple Choice:
1. automatically updates the fixed asset control account in the general ledger and prepares journal vouchers for the
general ledger department as evidence of the entry.
a. Asset maintenance
b. Disposal Procedure
c. Authorization Controls
d. Acquisition procedures

2. This department prepares and submits personnel action forms to the prepare payroll function.
a. Payroll Department
b. Production Department
c. Personnel Department
d. None of the Above

3. When the clerks delete the record from the fixed asset subsidiary ledger, the system automatically, except;

a. Record any gain or loss associated with the disposal

b. Calculating the current period's depreciation
c. Post an adjusting entry to the fixed asset control account in the general ledger
d. Prepare a journal voucher

4. This is one of the systems of fixed asset control in which they review and compare information so there will be no
material misstatement of operating expense, reported earnings and assets value.
A. Supervision Controls
B. Authorization Controls
C. Independent Verification Controls

5. Fixed asset accounting systems include _________ and matching procedures that are not part of routine expenditure
system.
a. Payroll allocation
b. Cost allocation
c. Expenditure allocation
d. Profit Allocation

6. An important record use to initiate this task is the

a. Retirement of Asset
b. Replacement of Asset
c. Common Depreciation Method
d. Depreciation schedule

7. A copy of the disbursement voucher is sent to the_______ function.

a. Cash Flow
b. General Ledger
c. Cost Accounting
d. Financial Statement

8. Which of the following systems does fixed asset controls doesn't focuses more?
A. Authorization
B. Dependent Verification
C. Independent Verification
D. Supervision
9. The time-keeping function and the personnel function should be separated. The personnel function provides payroll
with pay rate information for authorized hourly employees.

A. Transaction Authorization
B. Accounting Records
C. Segregation of Duties
D. Supervision

10. The top portion of the flowchart presents the_______?

A. Fixed asset acquisition procedures
B. Fixed asset maintenance procedures
C. Asset disposal procedures
D. All of the above

MULTIPLE CHOICE
1. This item addresses many of the operational weaknesses associated with the automated system
a. Accounts Payable Department
b. Cash Disbursement System
c. The Reengineered System
d. General Ledger Department
2. All of the following departments have a copy of the purchase order except;
a. Purchasing Department
b. Receiving Department
c. Accounts Payable
d. General Ledger

3. Formalizing the authorization process promotes efficient inventory management and ensures the legitimacy of
__________.
a. Purchases subsystem
b. Cash disbursement subsystem
c. Purchases transactions
d. Transaction authorization

4. __________ is a document or electronic form that formally requests a supplier to sell or deliver specified products at
designated prices.
a. Blanket purchase order
b. Purchase requisition
c. Purchase order
d. Voucher package
5. Conflict of interest arrives in ____

a. Cash disbursement
b. Accounts payable
c. General journal
d. General ledger

6. S1: Three-way match is still used under Vouchers Payable System.

S2: The employee supervisor is the one who prepares the Cash Disbursement Voucher.

a. Only S1 is correct.
b. Only S2 is correct.
c. Both statements are correct.

d. Both statements are incorrect.

7. A document that indicates the quantity and condition of goods received.

a. Receiving Report
b. Purchase Order
c. Purchase Requisition
d. Journal Vouchers

8. This is where Voucher information is assembled, where the basic voucher document is attached to the supplier
invoice, evidence of receipt, and purchase order.

a. Voucher Package
b. Check Register
c. Voucher Packet
d. Cash Disbursement Journal

9.The objective of __________ is to maintain an audit trail adequate for tracing a transaction from its source document.

a. Accounting Record
b. Access Control
c. Record
d. Accounting for Record

10. In the cash disbursements system in a manual setting which one does not belong in 3 major departments?

a. AP Department
b. Receiving Department
c. Cash disbursements Department
d. General Ledger Department
TRUE OR FALSE
1. Automated checks are no longer handed over to the Manager in Checks Disbursement Department.
FALSE (handed over when there is a vendor number mismatch in automatic printing, signing, and mailing of
checks)

2. The AP function authorizes cash disbursements via the cash disbursements voucher.
TRUE

3. Direct Access is acted through setting limited access to documents that control its physical assets.
FALSE (Indirect access)

4. Blind Copy of Purchase Order includes quantity, description, unit price and extended price.
FALSE (Blind copy contains no quantity or price information about the products being received.)

5. In Purchasing Department, vendors also have a copy of Purchasing Order

TRUE

6. Automation involves using technology to improve the efficiency and effectiveness of a task, while the objective of
reengineering is to eliminate non value–added tasks.
TRUE

7. The Vouchers Payable System is a system where the AP department uses cash disbursement vouchers and
maintains a voucher register.
TRUE

8. The Principal objective of the Cash Disbursements System is to ensure that creditors will receive payment early
and in the correct amount.
FALSE (The principal objective encompasses only valid creditors, not all of them as a whole.)

9. The purpose of the purchase requisition function is to initiate the purchase process.
FALSE (Initiation falls in the purchase order function)
10. The General Ledger Department is where the purchase phase of the expenditure cycle is completed.
TRUE

A. True or False
1. Sales order procedures include the tasks involved in receiving and processing a customer order, filling the order
and shipping products to the customer, billing the customer
TRUE
2. The cash prelist provides a means for verifying that customer checks and remittance advices match in amount.
TRUE
3. A manual system is a bookkeeping system where records are maintained by hand, without using a computer
system. Instead, transactions are written in journals, from which the information is manually rolled up into a set of
financial statements.
TRUE
4. File backup is restored somewhat by performing batch control balancing after each run and by producing
management reports and summaries for end users to review.
FALSE
5. Digital accounting records are vulnerable to unauthorized and undetected access.
TRUE
6. The cash receipts clerk separates the checks and remittance advices and prepares a remittance list.
FALSE
7. Controller's office performs a bank reconciliation by comparing deposit slips returned from the bank, account
summaries used to post to the accounts, and journal vouchers.
TRUE
8. They prepare journal vouchers and account summaries which they send to the Account Receivable Department.
FALSE
9. Subsidiary records provide links back to journal entries and to the source documents that captured the events
TRUE
10. The shipping clerk terminal immediately produces a hard-copy printout of the electronically transmitted stock
release document.
FALSE

B. Multiple Choice
1. The customer’s creditworthiness needs to be established. For example, new customers may undergo a full
financial investigation to establish a line of credit but may be limited to ensuring that the customer has a history of
paying his or her bills.
a. Sales Credit
b. Check Credit
c. Open Order File
d. Sales Order
2. Step under Sales Return Procedure wherein the credit manager evaluates the circumstances of the return and
makes a judgement to grant or disapprove credit.
a. Prepare Credit Memo
b. Prepare Return Slip
c. Update Sales Journal
d. Approve Credit Memo
3. The one who converts the hardcopy shipping notices to digital form to produce a transaction file of sales order.
a. Warehouse Clerk
b. Keystroke Clerk
c. Shipping Clerk
d. Edit Program
4. 4. A firm’s source documents, journals, and ledgers form an audit trail that allows independent auditors to trace
transactions through various stages of processing.
a. Supervision
b. Prenumbered Documents
c. Segregation Duties
d. Accounting Records
5. Limiting access includes the following, except:
a. Warehouse security, such as fences, alarms, and guards
b. Shipping log specifies orders shipped during the period
c. Locking cash drawers and safes in the cash receipts department
d. Depositing cash daily in the bank
6. The objective of the sales return system is to reverse the effects of the original sales transaction.
a. Mail Room
b. Processing the Credit Memo
c. Cash Receipts
d. General Ledger Department
7. Under real-time processing, sales clerks receiving orders from customers process each transaction separately
as it is received.
a. Sales Procedures
b. Warehouse Procedures
c. Shipping Department
d. None of the Above
8. The objective of _______________ is to ensure that only valid transactions are processed.
a. Transaction Authorization
b. Segregation of Duties
c. Supervision
d. Accounting Records
9. ______________ records the inventory reduction in the stocks records.
a. Sales Department
b. Warehouse Clerk
c. Shipping Clerk
d. Credit Department Approval
10. When credit is approved, the sales department releases copies of the sales order to the billing, warehouse, and
shipping departments. The customer order and credit approval are then placed in the open order file.
a. Warehouse Procedure
b. Keystroke
c. Credit Department Approval
 d. Sales Department

Multiple Choice:

1. These systems evolved from MRP to integrate additional functionality into the manufacturing process,
including sales, marketing, and accounting.
a. Materials requirements planning (MRP)
b. Manufacturing resources planning (MRP II)
c. Enterprise resource planning (ERP) systems
d. None of the Above

2. ________ are limited in focus and geared toward determining how much raw materials are required to
fulfill production orders.
a. Materials requirements planning (MRP)
b. Manufacturing resources planning (MRP II)
c. Enterprise resource planning (ERP) systems
d. None of the Above

3. It uses prenumbered documents to support an audit trail.

a. Segregation of duties
b. Inventory control
c. Direct access to assets
d. Indirect access to assets

4. It uses identification badges, security guards, observation devices, and various electronic sensors and alarms.
a. Segregation of duties
b. Inventory control
c. Direct access to assets
d. Indirect access to assets

5. The documents in the Batch Processing System are, except?

a. Production Schedule
b. Bill of Materials
 c. Route Sheet
d. Sales Order System

6. This document describes the specific products to be made, the quantities to be produced in each batch, and the
manufacturing timetable for starting and completing production.
a. Production Schedule
b. Route Sheet
c. Work Order
d. Bill of Materials
7. Long machine setup procedures cause delays in production and encourage overproduction.
a. Supplier relations
b. Team attitude
c. Established supplier relationship
d. Production flexibility

8. This includes those in purchasing, receiving, manufacturing, shipping - everyone.

a. Team Attitude
b. Supplier relations
c. Production flexibility
d. Established supplier relationships

9. Materials Requirement Planning (MRP) operational objectives are, except:

a. Ensure that adequate raw materials are available to the production process.
b. Produce production and purchasing schedules and other information needed to control
production.
c. Improved customer service
d. Maintain the lowest possible level of inventory on hand.

10. Manufacturing firms can realize considerable benefits from a highly integrated MRP II
system. Among these are the following, except:
a. Flexibility in the production process
b. Assistance in achieving long-term strategic goal
c. Improved cash flow
d. Increased raw materials
 11. All activities that do not add value and maximize the use of scarce resources must be eliminated.
a. Maximizing Waste Disposal
b. Maxmatic Waste Disposal
c. Waste Minimization
d. None of the Above

12. Which of the following does not explain the common problems of inventory reduction?
a. Willingness to Maintain Inventories can Precipitate Overpopulation
b. Inventories Camouflage Production Problem
c. Inventories Cost Money
d. None of the Above

13. Records done in each work center center and authorizes the movement of the job or batch from one
work center to next.
a. Call Center
b. Work Center
c. Move Ticket
d. Requisition Ticket

14. The master schedule for production run coordinates the production of many different batches.
a. Scheduling
b. Production
c. None of the above
d. Planning

15. The ________ environment consists of a range of different types of

machines, each controlled by a single operator.
a. Traditional Manufacturing
b. Island of Technology
c. Computer-Integrated Manufacturing
d. None of the above
16. It employs computer numerical controlled (CNC) machines that can perform multiple operations with little human
involvement.
a. Traditional Manufacturing
b. Island of Technology
c. Computer-Integrated Manufacturing
d. None of the above

17. __________ reconciles materials and labor usage taken from material requisitions and job tickets w/ prescribed
standards.
a. Inventory control
b. cost accounting
c. GL department
d. WIP department

18. It is also known as material and information flow mapping.

a. Lean Manufacturing
b. Value stream mapping
c. Environment Mapping
d. Traditional Mapping
19. It is the use of software and computer-controlled machinery to automate a manufacturing process.
a. Computer-aided design
b. Robotics
c. Computer-aided manufacturing
d. Automated storage and retrieval system

20. An assumption of standard costing is that all overheads need to be allocated to the product and that these overheads
directly relate to the amount of labor required to make the product. A consequence of automation is the restructuring of
manufacturing cost patterns.
A. Value Stream
B. Production Cost Structure
C. Inaccurate Cost allocation
D. Time Lag
21. It is organized into a smooth-flowing stream of activities.
a. Traditional manufacturing facilities
b. Flexible production system
 c. physical reorganization of the production facilities
d. None of the above
22. It tends to evolve in piecemeal fashion over years into snakelike sequences of activities.
a. Traditional manufacturing facilities
b. Flexible production system
c. physical reorganization of the production facilities
d. None of the above
23.. The other term for pull production is
A. Just in time
B. Just on time
C. Just at time
D. Just have time
24. The lean manufacturing is based from
A. Nokia production system
B. Hyundai production system
C. Honda production system
D. Toyota production system
25. Standard cost data for management reporting are historic in nature.
A. Time lag
B. Data lag
C. Batch processing
D. Financial Orientation
asd

True Or False:
1. The complexities of ABC have caused many firms to abandon this method in favor of a simpler
accounting model called value stream accounting. (TRUE)
2. Product families share common processes from the point of placing the order to shipping the finished
goods to the customer. (TRUE)
3. Team attitude is lean manufacturing relies heavily on the team attitude of all employees involved in the
process. (TRUE )
4. Production flexibility is a lean manufacturing firm that must have established and co-operative
relationships with vendors. (FALSE)
5. The AB Department is organizationally segregated from inventory control and cost accounting.
(FALSE)
6. One of the transaction authorization procedures in the conversion cycle is materials requisition and
excess materials requisitions authorize the storekeeper to release materials to the work centers. (TRUE)
7. Computer-integrated manufacturing (CIM) is a completely automated environment with the objective of
eliminating non–value-added activities. (TRUE)
8. The islands employ computer numerical controlled (CNC) machines that can perform multiple
operations with no human involvement. (FALSE)
9. A work order shows the production path that a particular batch of product follows during manufacturing.
(FALSE)
10. Bill of materials specifies the types and quantities of the raw material and subassemblies used in
producing a single unit of finished product. (TRUE)
11. Materials Requirement Planning (MRP) is an extension of Manufacturing Resource Planning (MRP II)
that has evolved beyond the confines of inventory management. (FALSE)
12. Enterprise Resources Planning Systems (ERP) is composed of function-specific modules that reflect
industry best practices. (TRUE)
13. Production scheduling is the RM of requirement for a batch of any given product. (FALSE)
14. Value stream mapping is also known as “material and information flow mapping” (TRUE)
15. Lean manufacturing is the management accounting system for a lean organization. It provides the
relevant financial and nonfinancial information necessary to execute the lean strategy and drive financial
success. (FALSE)
16. Material requisition authorizes the storekeeper to release materials to individuals or work centers in the
production process. (TRUE)
17. Perfect Quality is very expensive to a firm. (TRUE)
18. The Hallmark of Lean Manufacturing firms is their success in inventory reduction (TRUE)
19. Traditional standard costing techniques emphasize financial performance rather than manufacturing
performance. The techniques and conventions used in traditional manufacturing do not support the objectives of
lean manufacturing firms.(TRUE)
20. Pursuit of world class status is a journey without destination. (TRUE)
21. automation of the manufacturing process is at the heart of the lean manufacturing philosophy (TRUE)
22. Traditional manufacturing facilities and flexible production system is a 2 types of facilities in physical
reorganization of the production facilities (TRUE)
23. A World class business is necessary for creating a business. False
24. Lean manufacturing is a sign of having a world class business. True
25. ABC is a method of allocating costs to products and services to facilitate better planning and control.
(TRUE)

Questions for AIS (Finals)

(Birosel)
1. The following are factors that influence the MRS Design except?
a. Problem Structure
b. Department Principles
c. Behavioral considerations

Answer: B

2. True or False? MRS is usually seen as practical reporting.

Answer: False - DISCRETIONARY REPORTING

(Lozada)

3. Which of the following is NOT considered as part of responsibility centers?

a. Cost
b. Investment
c. Budget
d. Profit

Answer: C

4. True or False? The performance information flows downward as responsibility reports

Answer: False : UPWARD

(BALDORADO)
5. True or False? Formalization of tasks are the number of subordinates directly under the manager’s control.

Answer: FALSE, Span of Control.

6. Reports should focus on changes in key factors that are symptomatic of potential problems.

A. Formalization of Tasks C. Span of Control

B. Management Principles D. Responsible and Authority

Answer: C. Management Principles

( MARAMBA)

7.The source of input to the general ledger is the journal voucher? True or False

Answer: True

8.The balance sheet, income statement, and statement of cash flows are prepared using the adjusted trial
balance.

A. Prepare the adjusted trial balance.

B. Prepare the post-closing trial balance.
C. Prepare the financial statements.
D. Prepare the unadjusted trial balance.

Answer: C.Prepare the financial statements.

(ROBIELOS)

9. Information shall not be selected or presented in a manner that is designed to influence the users decision in
order to achieve a predetermined outcome.

ANSWER: Neutrality

10. What type of reports are designed and created “as needed”?
 a. Programmed reports
b. On-demand reports
c. Ad hoc reports
d. Scheduled reports

ANSWER: C. Ad hoc report

(MENDOZA)

11. It is a scheme that helps to appropriately assign authority and responsibility.

A. MCS & Consideration

B. RCS & Compensation
C. MRS & Compensation
D. None of the above

Ans : C

12. Information systems can cause managers to disregard formal information and rely on informal-probably
inferior-cues when making decisions.

Ans: False- Information overload

(SEBUR)

13. Which of these is not part of the basic elements or step of management function level and decision type?

A. Set attainable standards

B. Evaluate performance
C. Take corrective action
D. Deal with routine tasks

ANSWER: D

14. Measuring performance is difficult because sound decisions with long term benefits may negatively impact
short term bottom line.

ANSWER: TRUE

(DELOS REYES)

15. Which of the following is not part of the audit implication for XBRL?

A. Taxonomy creation
B. Validation of instance documents
C. Problem structure
D. Audit scope and timeframe
ANSWER: C. Problem structure

This is the first step in the XBRL reporting process?

A. XBRL taxonomy
B. Reporting organization website
C. Analyze financial information
D. None of the above

ANSWER: A. XBRL taxonomy

16. XBRL is a language for standardizing methods for preparing, publishing and exchanging financial
information.

ANSWER: TRUE

The XBRL instance document can be made available to users.

ANSWER: TRUE

DAYAO

17. The following planning decisions are included in Strategic planning, except..

a. management philosophy
b. recur often
c. non recurring, with high degree of uncertainty.
d. scope of business activities.

ANSWER : B

18. Tactical planning decision is the process of breaking down the strategic plan into distinctive, and short term
plans.

ANSWER : TRUE

(BAEZ) 19. XML is a meta-language for describing markup languages. What is the meaning of XML?

A. Extensible Meta Language

B. Extensible Markup Language
C. Extensive Meta Language
D. Extensive Markup Language

ANSWER: B

20. In the case of the XML order, the tags are customized to the user, and the user’s application can read and
interpret the tagged data.
ANSWER: TRUE

(FERNANDEZ)

21. It focuses on general trends rather than detail-specific activities.

a. Tactical Planning Decisions

b. Strategic Planning Decisions
c. Operational Control Decisions
d. Management Control Decisions

ANSWER: B

22. Planning and Control Decisions are frequently classified into four categories.

ANSWER: TRUE

(BLANCO)23. Trace source documents from inception to financial statements and vice versa.

a. Transaction authorization
b. Segregation duties
c. Accounting records
d. None

Answer:C

24. Transaction authorization - journal vouchers must be authorized by a secretary at the source department.

Answer: False

(Roman)

25. Report objectives is the reports that must have value or information content

Answer: True

26. A type of report attributes that describes the free of material errors

a. Timeliness
b. Accuracy
c. Exception orientation
d. Relevance

Answer: B
(DECENA)

27. Data or documents should be protected from any harm or access by the other people.
a. Poor Audit Trail
b. Unposted Journal Entries
c. Lost or Damage Data
d. Improperly Prepared Journal Entries

ANSWER: C

28. This will check the accuracy of the correctness of recording the transactions, is it trial balances?

ANSWER: TRUE

(Octaviano)

29. What are the elements of problem structure?

a. Data
b. Procedures
c. Objectives
d. All of the above

Answer: D
30. Problem structures reflect and affect how well decision makers understand and solve problems.

Answer: True

(Olasiman)
31. The G/L department reconciles the journal vouchers and summaries?
a. Data
b. Procedures
c. Independent Verification
d. All of the above
Answer: C.

32. Journal voucher listing is one of the important operational reports used to have details of each journal
voucher which is posted to the general ledger.

Answer: TRUE

(Baez) 33. This includes the creation of markup languages capable of storing
data in relational form in which tags are mapped to data values.
A. XML
B. XBRL
C. HTML
D. GLS
ANSWER: A.

34. The objective of XBRL is to facilitate the publication, exchange, and processing of financial and business
information.
ANSWER: TRUE

35. The term extensible means

A. to model the data structure of an organization’s internal database.
B. that any markup language can be created using XML.
C. a derivative of another Internet standard.
D. the tags are customized to the user, and the user’s application can read and interpret the
tagged data.

ANSWER: B

36. The comparison of HTML and XML documents is that in Partial HTML Book Order, end-user computers
cannot process HTML and can only display the format while in Partial XML Book Order, end-user computers
can recognize XML and process accordingly, relieving some of the burden currently placed on web servers.

ANSWER: TRUE
(VIAJE) 37. Statistical Planning Decisions are subordinate to strategic decisions and are made by middle
management. These decisions are shorter term, more specific, recurring, have more certain outcomes, and
have a lesser impact on the firm than strategic decisions.

ANSWER: FALSE

38.Management control involves motivating managers in all functional areas to use resources, including
materials, personnel, and financial assets, as productively as possible. The supervising manager compares the
performance of his or her subordinate manager to pre-established standards. If the subordinate does not meet
the standard, the supervisor takes corrective action. When the subordinate meets or exceeds expectations, he
or she may be rewarded.

ANSWER: TRUE

39. Apply to all aspects of operations, such as sales volume, quality control over production, costs for inventory
items, material usage in the production of products, and labor costs in production.
A. Performance
B. Standard
C. Control Setting
D. Objectives

ANSWER: B
40. Information in reports must be free of material errors. A material error will cause the user to make the wrong
decision (or fail to make a required decision). We often sacrifice accuracy for timely information. In situations
that require quick responses, the manager must factor this trade-off into the decision making process.
A. Completeness
B. Timeliness
C. Conciseness
D. Accuracy

ANSWER: D

(SEBUR)
41. All of these is under operational control decisions, except:
A. Take corrective action
B. Deal with routine tasks
C. Highly structure
D. Short time frame

ANSWER: A

42. Operational control decisions include evaluating the performance of subordinates against standards.

ANSWER: FALSE (Management control decisions)

(Blanco)

43. Which of the following is/are not part segregation of duties – G/L clerks should not:

a. Have recordkeeping responsibility for special journals or subsidiary ledgers

b. Trace source documents from inception to financial statements and vice versa
c. Prepare journal vouchers
d. Have custody of physical assets

ANSWER: B

44. Access controls- Unauthorized access to G/L can result in

a. Error
b. Fraud
c. Misrepresentations in financial statements.
d. All of the above

ANSWER: D

45. Sarbanes-Oxley requires controls that limit database access to only authorized individuals.

ANSWER:TRUE

46. Transaction authorization - journal vouchers must be authorized by a manager at the source department

ANSWER:TRUE

(Maramba)
47.Make adjusting entries-Adjusting entries are made to the worksheet to correct errors and to reflect
unrecorded transactions during the period, such as depreciation.

Answer:TRUE

48.It_________is the final step in the overall accounting process that begins in the transaction cycles.

A.General Ledger
B.Financial Reporting
C.Ledger
D.Balance Sheet
Answer:Financial Reporting

49. The primary recipients of financial statement information are external users, such as stockholders,creditors,
and government agencies.

Answer:TRUE

50.A trial balance worksheet containing only the balance sheet accounts may now be prepared to indicate the
balances being carried forward to the next accounting period.

A.Prepare the adjusted trial balance.

B.Journalize And Post Adjusting Entries.
C.Prepare the post-closing trial balance.
D.Prepare the unadjusted trial balance.

Answer:Prepare the post-closing trial balance.

(ROBIELOS)

51. To be reliable information, accounting information must be; except

a. Verifiable
b. Faithful representation
c. Neutral
d. Timely
ANSWER: D TIMELY

52. There are four types of management reports, the Programmed reports, Ad Hoc reports, Scheduled reports
and On-demand reports.

ANSWER: FALSE (there are only two management reports)

(FERNANDEZ)

53. Short-term planning involves the _________ of specific planning that are needed to achieve the objectives of
the long-range plan

a. Application
b. Functions
c. Implementation
d. Assurance

ANSWER: C -IMPLEMENTATION

54. Setting the goals to objectives of the firm is for tactical planning management control

ANSWER: FALSE - STRATEGIC PLANNING

(Batinga)

55. General Ledger Master File is used for comparative financial reports.

Answer: FALSE ( General Ledger History File.)

56. It is a principal FRS File based on chart of accounts.

a. General Ledger Master File

b. Journal Voucher History File
c. General Ledger Main File
d. Journalizing Master File

Answer: A

(Baldorado)

57. Formalization of Task allows specification of the information needed to support the tasks.
 Answer: TRUE

58. It is the obligation to achieve desired results,

a. Responsibility c. Wide Span Control

b. Authority d. Management Principles

Answer: A. Responsibility

[Reyes]Q1.: A logical and relevant characteristic of an entity about which the firm captures data.
Ans: C
a. Data sources
b. Data attribute
c. Attribute
d. Sources
nnn
[Reyes] Q2.: External financial transactions are the most common source of data for most organizations.
Ans: True

[Blanco] - Q3.:___________ is responsible for long - term planning and setting organizational objectives.
Ans: c. Top management
a. Best management b. Bottom management c. Top management d. Research management

[Blanco] - Q4.:In Accounting Information System we have 6 elements

Ans: False
[Duhig]Q5.: REAR is an accounting framework for modeling an organization's critical Resources, Events, and Agents and
Relationships between them.
Ans: False
[Duhig]Q6.:These are the roles of the accountants except:
Ans: a. Users b. Designers c. System Auditors d. None of the Above
[Avellano] - Q7: Data and information are the same.
Ans: False
[Avellano] - Q8: This is a convenient way of representing, viewing, and understanding the relationships among
subsystems
Ans: System Decomposition
[Batinga]- Q9: An example of Middle Management is Stakeholder.
Ans: False
[Batinga]- Q10: It is the process of dividing the system into smaller subsystem part.

a. System Decomposition
b. Subsystem Decomposition
c. AIS Subsystems
d. Transaction processing system.

Ans: A.

[Birosel] - 11: ____ is the power or right to give orders, make decisions, and enforce obedience.
Ans: a. Responsibility
b. authority
c. Accountability
[Birose] - 12 : There is only three (3) levels representing the business organization
Ans: False
[Perez] - 13.: Information generation is the process of researching, allocating, editing, and performing information to
users.
Ans: False
[Perez] - 14.: What are the 3 business segments?
a. demographic location, production and business line
b. geographic location, product line and business function
c. biographic location, product and business elements
d. photographic location, producer line and kind of business
Ans: b. geographic location, product line and business function

[Maramba]-15:An example of an Artificial System is Automobile?

Ans:True
[Maramba]-16: The __________is the central to the overall function of the information system by converting events into
financial transactions, recording financial transactions in the accounting records (journals and ledgers), and distributing
essential financial information to operations personnel to support their daily operations.
Ans: a.The Management Information System b. Transaction Processing System c. AIS d. Information
System
[Sebur] - 17________ is the set of formal procedures by which data are collected, processed into information and
distributed to users
Ans: a. AIS b. MIS c. TPS d. Information system
[Sebur] - 18. Data sources are financial transactions that enter the information system.
Ans:True
[Buenaventura] Q.19: it is a detailed information about the business transaction affecting the firm. This includes
information about events such as the sale and shipment of goods and internal transfer of resources from one department
to another.
Ans: A. Horizontal Flow
B. Vertical Flow
C. Performance Information
D. Vertical Operation

Q 20: Datas are facts, which may not be processed and have direct effect to the users.
Ans: False

[Alcantara] Q21-Information generation is the process, arranging, formatting, and presenting information to users.
Answer: TRUE
Q22- Competent and reliable employees are a valuable resource to a business.
a. Distribution
b. Finance
c. Personnel (correct ans)
d. None of the above
Answer: c. Personnel

[Baez] Q23- A record is a complete set of files of an identical class.

Answer: False
Q24- It is the most elemental piece of potentially useful data in the database.
A. Data Collection B. Database Attribute C. Database Management Tasks
Answer: B. Database Attribute

[Bael] - Q25: It may be internal or external and is used to initiate or alter a process.

Ans: a. feedback b. data collection c. data processing d. information generation

Q26: Accountability is the state or fact of having a duty to deal with something or of having control over
someone.

Ans: False

[Olaso] Q27 - It is a form of output that is sent back to the system as a source of information.
Ans: a. Data sources b. Transaction processing system c. feedback d. Data base management

[Olaso] Q28 - In The Management Information System management often requires information that goes beyond the
capability of AIS.
Ans : True

[Menor] Q29: A system is a group of two or more interrelated components or subsystems that serve a common purpose.
Ans: True

[Menor] Q30: It is the distinction between the terms system and subsystem and it is a matter of perspective.

A. Multiple Components
B. Relatedness
C. System vs. Subsystem
D. Purpose

Ans: C. System vs. Subsystem

[Albacite] Q31: Under the Flat-File Model, organizations have a great deal of data stored in files that require periodic
updating to reflect changes. If an instance occurs where a customer’s name or address were changed, said changes
must be reflected in the master files. Which section of the flat-file approach pertains to this statement?
a. Task Data Dependency
b. Data Updating
c. Currency of Information
 d. Data Storage
Answer: b. Data Updating

[Albacite] Q32: The Database Model is the oldest and most traditional form of accounting systems. This approach
constitutes the physical events, resources, and personnel that characterize many business processes.
Answer: False - Manual Process Model

[Decena] Q33:The Data Processing is the financial transactions that enter the information system?
Answer: FALSE: Data Sources

[Decena] Q34: Information loses this qualitative characteristic is improved when information is reported on a timely basis?
A. Summarization
B. Relevance
C. Accuracy
D. Feedback

[Lobos] Q35: These are the characteristics of Useful Information, except:

A. Relevance B. Timeliness C. Feedback D. Completeness

[Lobos] Q36: Data Collection is the process of compiling, arranging, formatting, and presenting information to users.
ANSWER: False --- Information Generation

[Roman] Q37: Are individuals and departments that participate in an economic event.

A. Events
B .Resources
C. Agents
D. Model

Ans: C. Agents

[Roman] Q38: Data base model is an organization can overcome the problems associated with flat files by implementing
the data base model to data management.
 Ans: True

[ Baldorado] Q39: From the Organization Structure for a Distributed Processing System, which in the following
are under of Finance:

a. Treasurer & Controller

b. Manager Plant X & Manager Plant Y
c. Information Processing Unit (IPU)
d. Marketing & Treasurer

Answer: a. Treasurer & Controller.

[Baldorado] Q40: - True or False

Economic resources are the assets of the organization.

Answer: True.

[ Viaje] Q41: Excluding accountants positions these are…

A. Utility Companies
B. Officer of the Day (rdo Officer)
C. Designers
D. Chief Director
ANSWER: C. Designers
Q42: Chief Manager is an example of company management.
ANSWER: FALSE

[Carillo] Q43: Information must be free from material errors.

A. Accuracy
B. Timeliness
C. Relevance
D. Completeness

A. Accuracy

[Carillo] Q44. The MRS provides the internal financial information needed to manage a business.

Answer. True

[Ragodo] Q45: In what year the REA Model was proposed as a theoretical model for accounting.

a) 1972 b) 1982 c) 1992 d) 2002

Ans: B

[Ragodo] Q46: Under the REA Model, business organizations do not prepare financial statements directly from the events
database.

Ans: FALSE

[Lacsi] Q47: Accounting Information System (AIS) is most likely applicable to which area of accounting?

A. Tax Accounting

B. Public Accounting

C. Management Consulting

D. All of the above are applicable to AIS

Ans: D. All of the above are applicable to AIS

[Lacsi] Q48: Accounting systems are comprised of the people, forms, procedures, and equipment that are used to capture
data about the transactions of an entity and to generate from that data a variety of financial, managerial, and tax
accounting reports.

Ans: True

[Romero] Q49: End users fall into two general groups: internal and external, wherein institutional users receive
information in the form of financial statements, including billing statements and shipping documents.

Ans. False

[Romero] Q50: Information should be aggregated in accordance with the user’s needs. In which category does it fall?

a. Completeness
b. Summarization
c. Accuracy
d. None of the above

Ans: B. Summarization

[Palisoc] Q51: There are four fundamental objectives that are common to all systems

Ans. False (Three)

[Palisoc] Q52: ______ refers to the management responsibility to properly manage the resources in the firm.

a. Stewardship
b. Decision making
c. Regulations
d. None of the above

[Valdevia] Q53: Database management is the first operational stage in the information stage.
Ans. False (data collection)

[Valdevia] Q54: It is a complete set of attributes for a single occurrence within an entity class.

a. Database management

b. Record

c. Data attribute

d. Files

Ans: B. Record

[Mendoza] Q55: Job skill tracking system, employee benefits system is under the function of marketing.

Ans: False (Personnel)

[Mendoza] Q56: The following are the three major subsystems of AIS, except:

a. Transaction Processing System (TPS)

b. Management Reporting System (MRS)
c. Information Reporting System (IRS)
d. General Ledger / Financial Reporting System (GL/ FRS)

Ans: C. Information Reporting System (IRS)

[octaviano] Q57: Functional segmentation divides the organization into areas of of specialized responsibility based on
tasks.

a. Geographical Location
b. Product Line
c. Business Function
d. Business Segmentation

Ans.C. Business Function

[octaviano] Q58: Business organizations consist of functional units or segmentation

Ans: True

[Robielos] Q59:It is the process of compiling, arranging, formatting and presenting information to users

a. Data collection
b. Information Generation
c. System
d. Accounting Information System
[Robielos] Q60: Managers are primarily involved in three ways: as system users, designers and auditors. - FALSE-
ACCOUNTANTS

[Acang] Q61: Above the base level, the business organization is divided into 3 management tiers, except;
a. Individual Management
b. Operation Management
c. Middle Management
d. Top Management

[Acang] Q62: Is Operation Management accountable for the short-term planning and coordination of activities necessary
to accomplish the organizational objectives? FALSE- Middle Management

[Rico]
Q63-Multiple Choice
What is not a Business Segment?
A.Demographic segmentation.
B.Psychographic segmentation.
C.Behavioral segmentation.
D.Geographic segmentation
E.Market segmentation
F.None of the above
Correct answer is E not a business segment
[Rico]
Q64-True or False
Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about
economic entities, that is intended to be useful in making economic decision. According to American Accounting
Association.
Answer: False
Correct answer is Account standard codification

[Blasco]
Q65 - Multiple Choice
The following are the similar terms for “system”. except...
A. Complex
B. Methodology
C. Figures
D. Procedures
Correct Answer is C Figures.

[Blasco]
Q66 - True or False
MIS processes both non financial transactions and financial transactions that are normally processed by traditional AIS.
Answer: FALSE

[Delos Reyes, K]
Q67 - Multiple Choice
The __________ approach is most often associated with so called legacy systems.
A. Manual
B. Flat-file
C. Task-data
D. Database

[Delos Reyes, K]
Q68 - True or False
The Flat-file Approach is a double-view model.
Answer: False (Single-view)
[Delos Reyes, JM]
Q69 - True or False
Data collection are financial transactions that enter the information system
Answer: False
Correct answer is Data sources
Q70 - Multiple choice
It is the physical repository for financial or nonfinancial data. It can be a filing cabinet or a computer disk.
A. Database management
B. Data processing
C. Data collection
D. Data sources
Answer: A.Database management

[JABEL] - Q7 - True or False

- Accountability is the power or right to give orders, make decisions, and enforce obedience.
ANSWER: False
[JABEL] - Q72: Multiple Choice
- Business organizations consist of functional units or segments EXCEPT:
a. Geographic Location
b. Product Line
c. Business Function
d. Services
ANSWER: d
[ LOZADA ] - Q73: True or False
- External Auditors performs a wide range of acts in behalf of the organization such as conducting
financial statement audits and compliance with organization policies
ANSWER: FALSE
[ LOZADA ] - Q74: Multiple Choice
- Given below is the Roles of an accountant as stated in this chapter, which one is an exception?
a. Accountants as system auditors
b. Accountants as users
c. Accountants as system designers
d. Accountants as system users
ANSWER: D

[FERNANDEZ] - Q75: Multiple Choice

 - ____________ process financial transactions and non-financial transactions that directly affect the
processing of financial transactions
a. Financial Reporting System
b. AIS Subsystem
c. Transaction Processing System
d. Accounting Information System

[FERNANDEZ] - Q76: True or False

- System development group is responsible for analyzing user needs and for designing new system to
satisfy those needs - ANS: TRUE

[YAN] - Q77: True or False

- As end users, accountants must provide a clear understanding of their needs to the professionals who
design their system information.

ANSWER: FALSE

[YAN] - Q78: Multiple choice

- It is the critical factor in determining its usefulness.

a. Completeness
b. Feedback
c. Accuracy
d. Timeliness

[Torrena] - Q79: It deals with the business events that occur frequently, in a given day, a firm may process thousands of
transactions.

A. Transaction processing system

B. Management reporting system
C. Financial reporting system

[Torrena] - Q80: The financial reporting system provides the internal financial information needed to manage a business.

Answer: False

[Berroya] - Q81: __________ is directly responsible for controlling day-to-day operations.

A. Top Management
B. Middle Management
C. Operations Personnel
D. None of the above

Answer: D
[Berroya] - Q82: The two governing rules of Data Collection are Relevance and Timeliness.

Answer: FALSE - Efficiency not Timeliness

[USUDAN] Q83 : Which of the following does not belong to the types of Commercial Software?

a. Backbone systems

b. Vendor-supported systems

c. Information systems

d. Turnkey systems

Answer: C

[USUDAN] Q84 : One of the Information System Objectives is to support the stewardship function of management?

Answer: TRUE

[CATALINO] Q85 : The REA Model was proposed in 1972 as a theoretical model for accounting.

Answer: FALSE (the correct answer is 1982)

[CATALINO] Q86 : These are defined as objects that are both scarce and under the control of the enterprise. This
definition departs from the traditional model because it does not include AR.

a. Resources
b. Events
c. Agents
d. Transaction

Answer: a. Resources

[CALUZA] Q87 : __________ involves reorganizing the IT function into small information processing units that are
distributed to end users and placed under their control. Information processing units may be distributed according to
business function, geographic location, or both.

a. Database Model
b. Data Processing
c. Distributed Data Processing
d. Delivered Duty Paid

Answer: C. Distributed Data Processing

[CALUZA] Q88 : One of the disadvantages of DDP is Hardware and software compatibility.

Answer:False - incompatibility

[PEREIRA] Q89: The objective of DATA COLLECTION is to ensure that event data entering the system are valid,
complete and free from material errors.

ANSWER: TRUE

[PEREIRA] Q90: Financial transactions that enter the information system from both internal and external sources.

A. Data Sources
B. Data Processing
C. Data Collection
D. Mobile Data

ANSWER: DATA SOURCES

[DAYAO] Q91 : The following are the elements of a system except?

A. Multiple components

B. Comparability

C. Relatedness

D. Purpose.

ANSWER : B. Comparability

[DAYAO] Q92 : Data collection is the 2nd operational stage in the information system. The objective is to ensure that
event data entering the system are valid, complete, and free from material errors.

ANSWER : False. (Data collection is the 1ST OPERATIONAL STAGE.)

OLASIMAN Q93 : An information system model that enables an organization to automate and integrate its key business
processes.

A. Asset Management

B. Human Resources

C. Enterprise Resource Planning

D. Production Planning

ANSWER : C. Enterprise Resource Planning

OLASIMAN Q94 : Accountants as System Auditors that the public confidence in the reliability of internally produced
financial statements rests directly on their being validated by an independent expert auditor.

ANSWER : TRUE

Lado Q95: ___________ is an appraisal function housed within the organization.

a. Internal Auditors
b. Internal Management
c. Internal functions
d. Internal Auditing

Answer: d. Internal Auditing

Lado Q96: Accountants are primarily involved in three ways: as system users, collectors, and auditors.

Answer: False (as system users, designer, and auditors)

True or False
1. Flat File Approach is the approach where each data is exclusive to every user
Ans. True

2. The three main SQL commands used to produce the view from the query are SELECT, FROM, and WHEN
Ans. False

3. Constructing a Data model showing entity association is the second phase in designing relational databases.
Ans. True

4. The 4th phase of the Database Design is to Add Primary Keys and Attributes.
Ans. False

5. A system is relational if it represents data in the form of two-dimensional tables, it also supports the relational algebra
functions of restrict, project, and join.
Ans. True
6. In a flat file environment data storage is efficient when it comes to information systems because it captures and stores
data only once and makes this a single source that is available to all users' needs.
Ans. False

7. The duties of the DBA fall into the following areas: database planning, database design, database implementation,
database operation and maintenance, database change and growth.
Ans. True

8. The data dictionary describes every data element in the database.

Ans. True

9. Program Development captures the statistics on what data are being used, when they are used and who uses them.
Ans. False

10. Data manipulation language is a proprietary programming language that a particular DBMS uses to retrieve, process,
and store data.
Ans. True

11.Structured Query Language or SQL can be pronounced as SEQUEL.

Ans. True

12. That database normalization is being a nontechnical matter that is the responsibility of systems professionals.
Ans. False – technical matter

13. In designing relational databases it has 5 phases of database design. (Usudan)

Ans. False

14. To pass as valid entities one of their conditions is an entity must consist of two or more occurrences. (Usudan)
Ans. True

15. Tables that have redundant data problems, also known as monopoly
Ans. False
16. The three types of data management problems: Data storage, Data updating, Flat file
Ans. False

17. There is only one technique that can be used in identifying the cardinality notation.
Ans. False

18. Crow's foot is a technique used in identifying cardinality notation.

Ans. True

19. Distributed databases can be distributed using either the partitioned or replicated technique.
Ans. True

20. The preservation of audit trails and the reliability of accounting records are key concerns in the trade-off.
Ans. False

21. Conceptual view identifies the specific data stored in our database?
Ans. False

22. Internal view has limited access

Ans. False

23. Present physical arrangements of records are found in the internal view.
Ans. True

24. Entities can be associated with one another in relationships

Ans. True

25. The query capability is the proprietary programming language that a particular DBMS uses to retrieve, process, and
store data.
 Ans. False

Multiple Choice
1. The main problem that the flat file approach creates
A. Data Redundancy
B. Data Updating
C. Data Dependency
D. Task-data Dependency

2. These are the most common database approaches used for business information systems, except:
A. Network model
B. Relational model databases
C. Management model
D. Hierarchical model

3. The relationship between entities is documented to _________________.

A. Purchase order
B. Entity relationship diagram
C. Receiving Report
D. All of the Above

4. The following are the attributes from the Purchase Order that belongs to repeating group data and needs to be
removed, except:
A. Part Number
B. Order Quantity
C. Quantity received
D. Unit Cost

5. A relational database system contains the following inventory data: part number, description, quantity-on-hand, and
reorder point. These items are called __________.
A. Attributes
B. Relations
C. Occurrences
D. Associations
6. This is the most important feature of a DBMS that permits an authorized user to access the database.
A. Database usage reporting
 B. Database access
C. Database administrators
D. Program Development
7. This is a set of data that a particular user sees.
A. Physical Database table
B. Data information
C. User views
D. All of the above

8. By keeping access authority separate from systems development, the organization is better able to control and protect
the database.

A. Database access
B. Database administrators
C. Program Development
D. Database usage reporting
9.____ Is an efficient data processing tool.
A. SQL
B. Query Language
C. Data Manipulation Language
D. Data Manipulation Language

10. An attribute in a table that serves as a unique identifier in another table and is used to link the two tables together is
called a ___________.
A. Primary Key
B. Secondary Key
C. Relational Key
D. Foreign Key

11. The first step of database operation is, A user program sends a _______ for data to the DBMS.

A. Text
B. Message
C. Request (Call)
D. Chat

12. It combines the data needs of all users into a single schema or enterprise-wide view.
A. Enterprise Resource Planning (ERP)
B. View Integration
C. View Modeling Process
D. Distributed Data Processing (DDP)

13. In designing relational databases which is not in the 6 phases of database design? (Usudan)

A. Prepare the user views

B. Construct the physical database
C. Add primary model
D. Identify the entities

14. Any change made to you data will require you to scan all records to make the changes multiple times

A. Update Anomaly
B. Insertion Anomaly
C. Deletion Anomaly
D. Anomalies

15. Deleting some information and lose valuable related information at the same time
A. Update Anomaly
B. Insertion Anomaly
C. Deletion Anomaly
D. Anomalies

16. Primary keys can also impart useful information about the nature of the entity through careful design of the following,
except:
A. Block codes
B. Group codes
C. Numeric codes
D. Mnemonic codes

17. Flat File Problem Solved

 A. Task-data independence
B. Single update
C. Current values
D. Data Sharing

18. A change any user makes to the database yields current data values for all other users
A. Task-data independence
B. Single update
C. Current values
D. Data Sharing

19. How many are the basic forms of cardinality possible?

A. 2
B. 4
C. 6
D. 8
20. An event that happens in partitioned database approach, wherein multiple sites lock out each other, thus preventing
each from processing its transactions.
A. Concurrency control
B. Deadlock phenomenon
C. Temporary inconsistency
D. Task-data independence

21. Identifies the specific data stored in our database.

A. Internal View
B. Conceptual View
C. User View
D. I Love View

22. Explains the level and how data is interrelated to each other.
A. Internal View
B. I Miss View
C. Conceptual View
 D. User View

23. Also known as subschema

A. I Love View
B. User View
C. Internal View
D. Conceptual View

24. Another important function of the DBA is the creation and maintenance of...
A. Data dictionary
B. Database Controls
C. Database environment
D. Programming standards

25. An ____ is anything about which the organization wishes to capture data

A. Occurence
B. Attributes
C. Entity
D. Entity Relationship (ER) diagram