Great Vision College

Department of Accounting and Finance,

Assignment the Course Accounting Information System

AcFn 402

Name of Student …………………………………………. ID NO……………………

Distance Center ……………………………… Contact Address: +251-………………..

ASSIGNMENT FOR ACCOUNTING INFORMATION SYSTEM I (AcFn 402)

This is a test paper you are expected to do on your own. It carries 30 points. The test paper
should be completed and mailed or hand it over personally to the proximal center of the
School of Distance and Continuing Education for evaluation. Do not try to complete the
assignment until you have covered all the lessons and exercises in the course material
(Module).

Any questions in the course that you have not been able to understand should be stated on a
separate sheet of paper and attached to this Assignment. Your tutor will clarify them for you
during the tutorial session held twice per term.

After completing this assignment, be certain to write your Name, Id.No and Address on the
first page.

Contact Address of the college

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 Great Vision College

Department of Accounting and Finance,

Assignment the Course Accounting Information System

AcFn 402

Instructions:
This booklet has TWO parts. Part I consists of 13 multiple choice questions and Part II
consists of 4 discussion questions. All of the questions are compulsory and will be marked.
Thus, you are expected to send the answers for all the questions to your tutorial centre. You
are strongly recommended not to attempt the questions prior to a thorough study of the
course material and attempting review questions provided therein.

Part One: Multiple Choice

Select the lettered responses that best completes the numbered statements. (1.5
points each.)

1. In the value chain concept, upgrading IT is considered what kind of activity?

A. Structured activity.
B. Service activity.
C. Support activity.
D. Primary activity.
E. None.
2. Turnaround documents
A. Are generated by the computer and eventually return to it.
B. Generally circulate only within the computer center.
C. Are only used internally in an organization.
D. Are largely restricted to use in a manual system.
E. Can be read and processed only by the computer.
3. Recording information about the resources affected, the agents participating in, and the
facts about each event at the time the event takes place is referred to as which of the
following?
A. General ledger and reporting system.
B. On-line, real-time processing.
C. Batch processing.
D. Chart of accounts.
E. None.
4. A documentation tool that depicts the physical flow of information relating to a particular
transaction through an organization is a
A. Program flowchart.

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 Great Vision College

Department of Accounting and Finance,

Assignment the Course Accounting Information System

AcFn 402

B. Document flowchart.
C. Decision table.
D. Work distribution analysis.
E. Systems survey.
5. A company that focuses its marketing efforts on a specific subset of the population (e.g.,
college students) is probably pursuing which type of strategic position?
A. Low cost.
B. Needs based.
C. Variety based.
D. Access based.
E. All of the above.
6. A documentation tool used to represent the logical elements of a system is a(n)
A. Entity relationship diagram.
B. Programming flowchart.
C. Data flow diagram.
D. Document flowchart.
E. All of the above.

7. The installation of a database management system is likely to have the least impact on
A. Data redundancy.
B. Entity-wide sharing of common data.
C. Exclusive ownership of data.
D. The logic needed to solve a problem in an application program.
E. The internal controls over data access.
8. Which of the following is not a benefit of outsourcing?
A. It offers a great deal of flexibility because it is relatively easy to change outsourcers.
B. It can provide access to the expertise and special services provided by outsourcers.
C. It allows companies to move to a more sophisticated level of computing at a
reasonable cost.
D. It is a cost-effective way to handle the peaks and valleys found in seasonal
businesses.
E. None of the above.
9. Which of the following statements is false?
A. As a general rule, companies should buy rather than develop software if they can find
a package that meets their needs.
B. As an AIS increases in size and complexity, there is a greater likelihood that canned
software can be found that meets user needs.
C. A company should not attempt to develop its own custom software unless
experienced, in-house programming personnel are available and the job can be
completed less expensively on the inside.

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 Great Vision College

Department of Accounting and Finance,

Assignment the Course Accounting Information System

AcFn 402

D. As a general rule, a company should develop custom software only when it will
provide a significant competitive advantage.
E. None of the above.
10. The least risky strategy for converting from a manual/old Accounts Receivable system to
new system would be a
A. Direct conversion.
B. Parallel conversion.
C. Database conversion.
D. Pilot conversion.
E. Phase-in conversion.
11. The developers of your new system have proposed two different AIS designs and have
asked you to evaluate them. This evaluation process is most likely to be part of which
SDLC step?
A. Conceptual design.
B. System analysis.
C. Physical design.
D. Implementation and conversion.
E. Operation and maintenance.
12. A transitive dependency
A. Is a database condition that is resolved through special monitoring software.
B. Is a name given to one of the three anomalies that result from unnormalized database
tables.
C. Can exist only in a table with a composite primary key.
D. Cannot exist in tables that are normalized at the 2NF level.
E. None of the above.

13. Which of the following is one of the three key functions of the AIS?
A. Developing a chart of accounts.
B. Providing adequate segregation of duties.
C. Designing easily read reports.
D. Processing transactions efficiently.

Part Two: Discussion Questions

1. List and briefly discuss the four conversion approaches used to change from the old
system to a new system. (2 points.)
2. List and explain the five important aspects to be considered during feasibility study. (2.5
points.)

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 Great Vision College

Department of Accounting and Finance,

Assignment the Course Accounting Information System

AcFn 402

3. Contrast a flat file approach and database approach in relation to the following areas. (4
points.)
a. Data storage
b. Data updating
c. Currency of information
d. Task-data dependency
4. What is meant by cardinality in entity relationship diagrams? (2 points.)