5. What are the three Levels of in Data Hierarchy?

Piad, Arriane A. A. Data Attribute, Records, File

1. This is the elements of a system, except. B. Storage, Retrieval, Deletion
A. Information System C. Relevance, Timeliness, Accuracy
B. Relatedness
C. Multiple components 1. ______ is the first operational stage in the
D. Purpose information system
a. Data Processing
2. What is Information System? b. Data Collection
A. Subsystem process financial transactions and c. Data Management
non-financial transactions that directly affect the d. Data Storage
processing of financial transaction. 2. The following are the Elements of a System
B. Processes non-financial transactions that are not except;
normally processed by traditional AIS. a. Multiple Components
C. Set of information procedures by which data b. Purpose
collected, processed into information, and c. System versus Subsystem
distributed to users​. d. System versus Sub-Units
e. Relatedness
3. Which statement is true about Transaction
Processing System? 3. A. A file is a complete set of records of an
I. Is central to the overall function of the information identical class.
system by converting economic events into B. Database Management involves three
financial transaction, recording financial fundamental tasks: storage, retrieval and
transactions in the accounting records ( journal and deletion.
ledger), and distributing essential financial a. Only statement A is correct
information to operation personnel to support their b. Only statement B is correct
daily operations. c. Both statements are correct
II.Set of information procedures by which data d. Both statements are wrong
collected, processed into information, and
distributed to users. 4. A. Information should be aggregated in
III. Processes non-financial transactions that are accordance with the user’s ​wants​. (needs)
not normally processed by traditional AIS. B. No pieces of information essential to a
IV.Subsystem process financial transactions and decision or task should be missing.
non-financial transactions that directly affect the a. Only statement A is correct
processing of financial transaction. b. Only statement B is correct
A. Statement I is true c. Both statements are correct
B. Statement II is true d. Both statements are wrong
C. Statement III is true
D. Statement IV is true 5. An efficient information system captures
and stores data only once and makes this
4. Which statement is true about top management? single source available to all users who
A. Top management is accountable for the need it
short-term planning and coordination of activities a. Data Processing
necessary to accomplish organizational objectives. b. Data Collection
B. Top management is responsible for long - term c. Data Management
planning and seeing organizational objectives​. d. Data Storage
C. Top management is directly responsible for
controlling day-to-day operation.
D. Top management is the personnel perform 1. The following are the three major subsystems of
day-to-day operation. AIS, except
 a. transaction processing system (TPS)
b. general ledger/financial reporting system Statement 2: The Vertical flow of
(GL/FRS) information flows out from the organization to the
c. management reporting system (MRS) external users.
​d. management information system (MIS)
a. Only statement 1 is correct
2. Statement I: Nonfinancial transaction is an b. Only statement 2 is correct
economic event that affects the assets and equities c. Both statements are correct
of the organization, is reflected in its accounts, and d. Both statements are incorrect
is measured in nonmonetary terms. 3. This is the ability of a system to achieve its
Statement II: Information system is the set of formal goal depends on the effective functioning and
procedures by which data are collected, processed harmonious interaction of its subsystems.
into information, and collected again.
a. Only statement I is true a. Natural System
b. Only statement II is true b. Artificial system
c. Both statements are true c. Subsystem Interdependency
​d. Both statements are false d. System Decomposition

3. External users are composed of the following, 4. Statement 1: The transaction Processing
except System (TPS) consists of seven transactional
a. tax authorities cycles.
b. regulatory agencies
c. stockholders Statement 2: The TPS, a firm may process
​d. operations manager thousands of transactions and an efficient way to
deal with such volume, dissimilar types of
4.. Statement I: The process of dividing the system transactions are grouped together into transaction
into bigger subsystem parts is called cycles.
decomposition.
Statement II: Information flows in two directions a. Only statement 1 is true
within the organization: forward and sideways. b. Only statement 2 is true
a. Only statement I is true c. Both statements are true
b. Only statement II is true d. Both statements are false
c. Both statements are true
d. Both statements are false 5. Statement 1: The elements of the general
model are : end users, data sources and feedback
5. The MRS provides the... only.
a. internal operational data needed to manage
business personnel Statement 2: Managers must deal
​b. internal financial information needed to immediately with many day-to-day business
manage a business problems as well as plan and control their
c. internal financial data needed to manage operations.
external users and other external factors
d. internal operational information needed to a. Only statement 1 is true
manage a business expedition b. Only statement 2 is true
c. Both statements are true
1. All of the following are a part of the d. Both statements are false
organization’s external users, except Modified T or F
a. Customers 1. I. A financial Transaction affects only the
b. Manager assets of the organization and is measured in
c. Suppliers monetary terms.
d. Stakeholders II. AIS processes only the financial transactions.
A. Only Statement I is correct.
2. Statement 1: The horizontal flow of B. Only Statement II is correct.
information supports operations-level tasks with C. Both Statements are correct
highly detailed information about many business D. None of the statements are correct.
transactions affecting the firm.
Answer: A. AIS processes financial transactions
and nonfinancial transactions that directly affects
the financial transactions as well.
2. I. Transaction Processing System is one of
the systems of Accounting Information System.
II. Management Reporting System provides the
internal financial information needed to manage the
business.
A. Only Statement I is correct.
B. Only Statement II is correct.
C. Both Statements are correct.
D. None of the statements are correct.
3. I. The General Ledger is interdependent
with the Financial Reporting System and vice
versa.
II. The type of reporting the Financial Reporting
System does can be considered as
non-discretionary.
A. Only Statement I is correct.
B. Only Statement II is correct.
C. Both Statements are correct.
D. None of the statements are correct.
Multiple choice
4. An AIS subsystem consisting of three group
of cycles namely, revenue, expenditure and
conversion is;
A. Transaction Processing System
B. General Ledger/ Financial reporting System
C. Management Reporting System
5. Choose the correct difference of Data and
Information.
A. Data are facts which may or may not be
processed while information is already a processed
data.
B. Data causes users to take action that he
would not have taken while information has no
direct effect on user.
C. There is no difference between the two.
Sales, Ken Eduard M. :>
1. It is an economic event that affects the
assets and equities of the organization, is reflected
in its accounts, and is measured in monetary terms.
a. Financial transaction
b. Non-financial transaction
c. Management Information System
d. Accounting Information System
2. Statement 1: The data attribute is the most
elemental piece of potentially useful data in the
database. An attribute is a logical and relevant
characteristic of an entity about which the firm
captures data.
Statement 2: A record is a complete set of
attributes for a single occurrence within an entity
class.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false
3. Statement 1: File involves three fundamental
tasks: storage, retrieval, and deletion.
Statement 2: A database management is a
complete set of records of an identical class.
a. Only statement I is true
b. Only statement II is true
c​.​ Both statements are true
d. Both statements are false
4. It is the central to the overall function of the
information system by converting economic 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.
a. General Ledger/Financial Reporting
Systems
b. Management Reporting System
c. Transaction Processing System
d. Accounting Information System
5. What are the two rules that govern the design of
data collection procedures?
a. consistency and timeliness
b. accuracy and completeness
c. relevance and efficiency
d. going concern and accuracy
 1. System generates​ physical ​images of a. Revenue cycle, expenditure cycle and
computers and programming. ​False: accounting cycle
Mental b. Conversion cycle, revenue cycle and
2. A ​data attribute​ is a complete set of processing cycle
attributes for a single occurrence within an c. Financing, expenditure cycle and
entity class. accounting cycle
False: Record d. Expenditure cycle, conversion cycle and
3. Three basic types of​ commercial​ software revenue cycle
are turnkey systems, backbone systems, 1. __________ perform a wide range of activities
and vendor-supported systems. on behalf of the organization, including
True conducting financial statement audits,
4. _______ systems are completely finished examining an operation’s compliance with
and tested systems that are ready for organizational policies, and reviewing the
implementation. organization’s compliance with legal
a.) Turnkey b.) Backbone obligations.
c.) Vendor-supported a. External Auditors
5. ________ systems consist of a basic b. Forensic Auditors
system structure on which to build. c. Internal Auditors
a.) Turnkey b.) Backbone d. Independent External Auditors
c.) Vendor-supported
1. ______ is the state or fact of having a duty 2. It is usually performed as part of a broader
to deal with something or of having control financial audit.
over someone.
a. Accountability a. Internal Auditing
b. Business Function b. External Auditing
c. Responsibility c. IT Auditing
d. Information d. Both a and b are correct.

2. Disadvantages of DDP except: 3. This model was proposed in 1982 as a

theoretical model for accounting.
a. Redundant tasks
b. Lack of standards a. Flat-file model
c. Hardware and software incompatibility b. REA Model
d. Cost reductions c. Database Model
d. Manual Process Model
3.______ are large mainframe systems that were
implemented in the late 1960s through the 1980s. 4. Statement I: External auditing is often called
independent auditing, because certified public
a. Flat-file model accounting firms that are independent of the client
b. REA model organization’s management perform them.
c. Manual process model
d. Database model Statement II: External auditors represent the
interest of management while the Internal auditors
4. _______subsystems process financial represent third-party outsiders.
transactions and non financial transactions that
directly affect the processing of financial a. Both statements are true
transactions. b. Both statements are false
c. Statement I is true but statement II is false
a. MIS d. Statement I is false but statement II is true
b. AIS
c. Finance 5. Statement I: A well developed personnel function
d. Financial Statement includes recruiting, continuing education,
counseling, training,packaging, evaluating, labor
5. What are the 3 transaction cycles of Transaction relations and compensation administration.
Processing System (TPS)?
Statement II: The function of finance is to Statement 2: Data usually requires processing
administer the daily flow of cash in and out of the to produce information.
firm.
A. Only statement 1 is true
a. Both statements are true
b. Both statements are false B. Both statements are false
c. Statement I is true but statement II is false
d. Statement I is false but statement II is true C. Only statement 2 is true

1. ___________ is an information system D.​ ​Both statements are true

model that enables an organization to
automate and integrate its key business 2. It is a form of output that is sent back to the
processes. system as a source of data.
A. Centralized data processing model
B. Enterprise resource planning A.​ ​Feedback C.
C. Management information system Information
model
2. Statement 1: Transaction processing system B. Data sources D.
supports daily business operations with numerous Comment
reports documents, and messages for users
throughout the organization 3. All of the following are the three types of
Statement 2: Management reporting system commercial software ​except,
provides internal management with special-purpose
financial reports and information needed for A. Backbone systems C.
decision making. Information system
A. Only Statement 1 is true
B. Only Statement 2 is true B. Turnkey systems D.
C. Both statement are false Vendor-supported systems
D. Both statement are true
4. Statement 1: The three (3) levels in data
3. These are the rules govern data collection
hierarchy are data attribute, record, and
except:
storage.
A. Completeness
B. Efficiency Statement 2: The two governing rules are
C. Relevance relevance and efficiency.
4. The process of compiling, arranging, formatting,
and presenting information to users is: A. ​Only the second statement is
A. Data Collection correct
B. Summarization
C. Record B. Both statements are true
D. Information generation
5. Statement 1: Vendor-Supported systems consist C. None of the statements are correct
of a basic system structure on which to build. The
primary processing logic is preprogrammed, and D. Only the first statement is true
the vendor then designs the user interfaces to suit
the client’s unique needs. Answer​: ​A. ​it should be data attribute,
Statement 2: Turnkey systems are completely record, and file.
finished and tested systems that are ready for
implementation. 5. It is accountable for the short-term planning
A. Only Statement 1 is true and coordination of activities necessary to
B. Only Statement 2 is true accomplish organizational objectives.
C. Both statements are true
D. Both statements are false A. Operations management

B. Top management
1. Statement 1: Data are facts, which may or may
not be processed (edited, summarized, or refined) C. Human resource management
and have no direct effect on the user.
 ​ D. Middle management
1.) The following activities would results to an
economic event, ​except
A. Distribution
B. Consumption
C. Exchange
D. Transaction
2.) Is a room often adjacent to the computer center
that provides safe storage for the offline date files,
such as magnetic tapes and removable disk packs.
A. Computer Laboratory
B. Data Library
C. Librarian’s desk
D. Computer Storage Device (CSD)
3.) Statement 1: The finance function does not
administer the daily flow of cash in and out of the
firm.
Statement 2: The accounting function plays two
important roles in transaction processing. First, it
captures but not records financial effects of the
firm’s transaction. Second, it distributes transaction
information to operations personnel to coordinate
many of their key tasks.
A. Statements 1 & 2 are false
B. Statement 1 is true but statement 2 is false
C. Statement 1 is false but statement 2 is true
D. Statements 1 & 2 are true
4.) Statement 1: Information systems have limited
collections, processing and data storage capacity.
Statement 2: Inconsistency among redundant data
elements can result in appropriate actions and
good decisions.
A. Statements 1 & 2 are false
B. Statement 1 is true but statement 2 is
false
C. Statement 1 is false but statement 2 is true
D. Statements 1 & 2 are true
5.) Statement 1: The principal cause of design
errors that result in system failure is the absence of
user involvement.
Statement 2: The accountant determines the nature
of the information required, its sources, its
destination and the accounting rules that need to
be applied.
A. Statements 1 & 2 are false
B. Statement 1 is true but statement 2 is false
C. Statement 1 is false but statement 2 is true
D. Statements 1 & 2 are true
1. I. The structure of an organization
reflects the ​flow of systems​(distribution of
responsibility, authority and accountability)
throughout the organization.
II. It is essential to understand the
distribution pattern of responsibility,
authority, and accountability to assess user
information needs.
a. Both statements are True
b. Both statements are False
c. 1st statement is True
d. Only 2nd statement is True
2. I. A system is called a subsystem
when it is viewed in relation to the larger
system of which it is a part.
II. A system must serve at least ​two or
more purposes​(one purpose).
a. Both statements are True
b. Both statements are False
c. Only 1st statement is True
d. Only 2nd statement is True
3.__________ is directly responsible for controlling
day-to-day operations.
a. Day-to-Day Operations Information
b. Top Management
c. Operations Management
d. Operations Personnel
4.__________ include system analysts, database
designers, and programmers who design and build
system.
a. Maintenance
b. Systems Professionals
c. Developer
d. Top Management
5.A system's to achieve its goal depends on the
effective functioning and harmonious interaction of
its subsystems.
a. Subsystem Interdependency
b. System Decomposition
c. System versus Subsystem
d. Relatedness
1. A complete set of records of an identical class.
a. Record
b. Files
c. Data Attribute
2. Business segments are firms organized into c. Both statements are true
segments to promote external efficiencies through d. Both statements are false
the specialization of labor and cost-effective
resource allocations. Managers within a segment 3. Statement 1: Data Sources are financial
can focus their attention on narrow areas of transactions that enter the information system from
responsibility to achieve higher levels of operating external sources only.
efficiency. Statement 2: Data Processing is the first
a. Statement 1 is True, Statement 2 is True operational stage in the information system wherein
b. Statement 1 is True, Statement 2 is False its objective is to ensure that event data entering
c. Statement 1 is False, Statement 2 is True the system are valid, complete, and free from
d. Statement 1 is False, Statement 2 is False material errors.
a. Both statements are true
3. The objective of this management is to plan and
control the materials inventory of the company. b. Both statements are false
a. Production Management c. Only statement 1 is true
b. Materials Management d. Only statement 2 is true
c. Marketing Management
4. Information should be aggregated in accordance
4. The process of compiling, arranging, formatting, with the user’s needs. Lower-level managers tend
and presenting informations to users. to need information that is highly detailed.
a. Database management a. Summarization
b. Information Generation b. Accuracy
c. Feedback
c. Timeliness
5. Data collection is the third operational stage in d. Relevance
the information system. The objective is to ensure 5. The contents of a report or document must serve
that event data entering the system are valid, a purpose. This could be to support a manager’s
complete, and free from material errors. decision or a clerk’s task.
a. Statement 1 is True, Statement 2 is True
a. Accuracy
b. Statement 1 is True, Statement 2 is False
c. Statement 1 is False, Statement 2 is True b. Timeliness
d. Statement 1 is False, Statement 2 is False c. Completeness
d. Relevance
Toledo, Laurie Mae
1. Statement 1: The manual process model is the Transaction processing systems convert
oldest and most traditional form of accounting non-financial transactions into financial
systems. transactions.
Statement 2: The flat-file model consists of small
mainframe systems that were implemented in the Answer: FALSE
late 1960s through the 1980s.
Information lacking reliability may still have value.
a. Only statement 1 is true
b. Only statement 2 is true Answer: FALSE
c. Both statements are true
Few accounting information systems rely on
d. Both statements are false
computer hardware and software to track business
2. Statement 1: Systems professionals gather facts processes.
about the user’s problem, analyze the facts, and
formulate a solution. Answer: FALSE
Statement 2: End users are the managers who
receive reports from the system and the operations Custom software is developed and maintained by
personnel who work directly with the system as part enterprise resource planners.
of their daily responsibilities.
Answer: FALSE
a. Only statement 1 is true
b. Only statement 2 is true The most basic element of useful data in the
database is the
a. key 1. ​Statement 1​: The two rules that govern the
design of data collection procedures are relevance
b. file and existence.

c. attribute Statement 2: The data collection stage should be

designed to filter irrelevant facts from the system.
d. record
a. Both statements are true
Answer: C b. Both statements are false
c. statement 1 true, statement
T or F 2 false
d​. statement 1 false, statement
1. The certified information technology is the 2 true
position created by the AICPA to recognize
CPA’s who have the ability to provide skilled
professional services on information
technology. 2. Statement 1​: The d​atabase ​is its physical
repository for financial and nonfinancial data.
TRUE
Statement 2: N ​ on-functional segmentation divides
2. An enterprise system is primarily used to the organization into areas of specialized
manage and nurture a firm’s interaction with responsibility based on tasks.
its current and potential clients.
a. Both statements are true
FALSE b. Both statements are false
Multiple Choice c. statement 1 true, statement
2 false
1. The role of accountants in accounting d. statement 1 false, statement
information systems include all except: 2 true

a. User 3. ​Statement 1​: The accounting

b. Manager function manages the financial
c. Operator information resource of the firm.
d. Evaluator
Statement 2: In this regard, it plays two
important roles in transaction processing.
2. A simple information system includes all but
the following elements except: a​. Both statements are true
b. Both statements are false
a. Processing c. statement 1 true, statement
b. Storage 2 false
c. Input d. statement 1 false, statement
d. Reporting 2 true

4. Which of the following is a single -view

3. Support activities in the value chain do not model?
include:
a. Database model
a. Support activities in the value chain
do not include b. ​Flat file approach
b. Firm Infrastructure
c. Procurement c. REA model
d. Accounting and Financ​e
d. Task data
5. It is an accounting framework for 2. I. Record is a complete set of attributes for a
modeling an organization’s critical single occurrence within an entity class
resources, events and agents. II. Data sources are financial transactions
that enter the information system from both
internal and external sources
a. Task data
a. Only Statement I is correct.
b. Flat file approach b. Only Statement II is correct.
c​. Both Statements are correct.
c. REA d. None of the statements are
correct.
d. Data base
3. Is the process of compiling, arranging,
1. Which of the following is not correct? formatting, and presenting information to users
System can also be known as..
a. Structure a. Database Management
b. Process
c. Methodology b​. Information Generation
d. Fortuity
c. Data Sources
2. They are directly responsible for controlling
day-to-day operations. d. Feedback

a. Operations Personnel 4. Is a form of output that is sent back to the

system as a source of data
b. Middle Management
a. Database Management
c. Operations Management
b. Information Generation
d. Top Management
c. System
3. Vertical flows distributes information
downward from senior management to junior d. Feedback
managers and operations personnel in the form of
instructions, quotas and budgets. ​TRUE 5. First operational stage in the
information system
4. Backbone systems are customized systems
that the client organizations purchase commercially a. Data Processing
rather than develop in-house. ​FALSE
b. Information Generation
​ . Accountability is the power or right to give
5
orders, make decisions and enforce obedience. c. Data Collection
FALSE
d. Feedback
1. ​ ​ I. System is a group of two or more The following are all true regarding system
interrelated components or subsystems that definition except: Natural systems are naturally
serve a common purpose. II. System occurring such as
decomposition is the process of dividing the A. atom—a system of electrons, protons,
system into smaller subsystem part. B. the universe—a system of galaxies, stars, and
planets.
A. Only Statement I is correct. C. plant and animal
B. Only Statement II is correct. D. all life forms like automobiles, submarines
C. Both Statements are correct.
D. None of the statements are 1. A common purpose relates to the multiple
correct. parts of the system.
A. Subsystem interdependency
B. System
 C. Relatedness
D. Multiple components
2. First: AIS often requires information that
goes beyond the capability of MIS. It
processes non-financial transactions that
are not normally processed by traditional
MIS.
Second: AIS subsystems process financial
transactions and non-financial transactions
that directly affect the processing of
financial transactions.
A. Only statement 1 is true.
B. Only statement 2 is true.
C. Both statements 1 and 2 are true
D. Bothe statements are false.
3. ____________________ are events that do
not meet the narrow definition of a financial
transaction.
A. Non-financial transactions
B. Cash Transactions
C. Cash disbursement
D. Financial Transactions
4. A transaction as an event that
A. affects or is of interest to the organization
and is processed by its information system
as a unit of work.
B. are information system designers need to
identify critical subsystems, anticipate the
risk of their failure, and design cost-effective
control procedures to mitigate that risk.
C. is a convenient way of representing,
viewing, and understanding the
relationships among subsystems.
D. is a system’s ability to achieve its goal
depends on the effective functioning and
harmonious interaction of its subsystems. If
1. I. A system must contain at least
one part.
II. Designers of all types of systems need to
recognize the consequences of subsystem
failure and provide appropriate level of
control.
a. Only statement I is true
b. Only statement II is true
c. Both statement are false
d. Both statement are true
2. Accounting information system composed
three major subsystem except,
a. General ledger system
b. Transaction processing system
c. General journal system
d. Management reporting system
3. I. Summaries of transaction cycles are
processed by the general ledger system (GLS) to
update the general ledger control accounts.
II. The FRS communicates information
primarily to external users. This type of reporting
is called non-discretionary because the
organization has a few or no choices in the
information it provides.
a. Only statement I is true
b. Only statement II is true
c. Both statement are false
d. Both statement are true
4. I. Financial reporting system is called
discretionary reporting because the organization
can choose what information to report and
how to present it.
II. The database is the most elemental piece
of potentially useful data in the database.
a. Only statement I is true
b. Only statement II is true
c. Both statement are false
d. Both statement are true
5. The objective is to ensure that event data
entering the system are valid, complete and
free from material errors.
a. Data collection
b. Database
c. Data source
d. Data processing
1. A system is a group of two or more
interrelated components that serve a
common purpose. The term system
generates physical images of computers
and programming.
a. Only statement 1 is True
b. Only statement 2 is True
c. Both statements are True
d. Both statements are False
2. Which of the following are not the elements of
the system?
a. Relatedness
b. System versus Subsystems
c. Multiple Composition
d. Purpose
3. Decomposition is the process of dividing the
system into smaller subsystems parts. The
information system is the set of formal procedures
by which data is collected.
a. Only statement 1 is True
b. Only statement 2 is True
c. Both statements are True
 d. Both statements are False C) Data is more useful in decision making than
information.
4. Which of the following are the three major
subsystems of AIS? D) Data and information are the same.
a. Transaction Processing System, General
Ledger and Management Information 2) Information is best described as
System
b. Transaction Processing System, General A) Raw facts about transactions.
Ledger and Management Reporting System
c. Transaction Processing System, General B.)Data that has been organized and processed so
Ledger and Management Financial System that it is meaningful to the user.
d. Transaction Processing System, General
Ledger and Management Internal System C) Facts that are useful when processed in a timely
manner.
5. Which of the following are not characteristic of
useful information? D) The same thing as data.
a. Relevance
b. Accuracy 3) The value of information can best be determined
c. Completeness by A) its usefulness to decision makers.
d. Conclusion
B.)Its relevance to decision makers.
1. Accounting information system play a major
C) The benefits associated with obtaining the
role in managerial decision making?
information minus the cost of producing it.
a. Identifying situations requiring
management action
D) The extent to which it optimizes the value chain.
b. Reducing uncertainty
c. Providing a basis for choosing
4) A balance sheet prepared in conformity with
among alternatives action
GAAP is an example of discretionary reporting
d. All of the above
2. A group of two or more interrelated components A. True
or subsystems that serve a common purpose.
a. Data B. False
b. Group chain
c. System 5) Information is a business resource. IT
d. Subsystems outsourcing is location-independent computing.
3. The first operational stage in the information
system is called Data processing . A. True,True
a. True
b. False B.False, False
4. The Record is the most elemental piece of
potentially useful data in the database. C.True,False
a. True
b. False D.False,True
5. Data attribute is a complete set of attributes for a
single occurrence within an entity class. 1. Which of the following are parts of most
a. True accounting information system?
b. False
a. Activities and documents only

1) Which of the following statements below shows b. Activities and technology only
the contrast between data and information?
c. Documents and technology only
A) Data is the output of an AIS.
d. Activities, documents, and
B) Information is the primary output of an AIS. technology
2. Accounting information system are designed
to.
1. ​ alse​- MULTIPLE COMPONENTS is a system
F
a. Minimize cost must contain only one part​. (A system must
contain more than one part)
b. Maximize use of information
system 2. ​True​- Accountants are primarily involved in
three ways: as system users, designers, and
c. ​Report information to decision auditors.
makers
3. Is the medium and method for capturing and
d. Eliminate the need for paper presenting the information.
documents
a. Physical System
3. The acronym AIS stands for “Accounting b. Conceptual System
Information Standards.”.” ​False c. Accounting System
d. Accounting Information System
4. Accounting information systems must be
computerized to be effective. .” ​False 4. Perform a wide range of activities on behalf of
the organization, including conducting financial
5. It is best to view an AIS as an accounting statement audits, examining an operation’s
system that must be computerized. .” ​False compliance with organizational policies, reviewing
the organization’s compliance with legal
1. Access to the data resource is controlled by a obligations, evaluating operational efficiency,
A. ERP detecting and pursuing fraud within the firm, and
B. DBMS conducting IT audits.
C. REA
D. SAP a. End user
2. The following are the three types of business b. External Auditors
segments. c. IT Auditing
A. Orderline, Business control, Geographic d. Internal Auditors
location
B. Marketing, product, distribution 5. Is the set of formal procedures by which data are
C. Geographic location, product line, business collected, processed into information, and
function distributed to users
D. Materials, personnel, labor
3. It groups the manages the computer resources a. System
used to perform the day-to-day processing of b. Information system
transactions. c. System versus subsystem
A. System development and Maintenance d. None
B. Database administration
C. Data control
D. Data processing 1.I. Operations management is directly responsible
4. The advantage of Distributed data processing is for controlling monthly operations. II. Top
A. Improved user satisfaction. management is responsible for long-term planning
B. Improved cost control responsibility. and setting organizational objectives.
C. Backup.
D. All of the above a. Both are true
5. It is the oldest and most traditional form of b. Both are false
accounting systems. Manual systems constitute the c. Only statement I is true
physical events, resources, and personnel that d. Only statement II is true
characterize
many business processes. 2. External users involve two groups, except
A. The Database Model
B. Enterprise Resource Planning Systems a. Trading partners
C. The Manual Process Model b. Accountants
D. The REA Model c. Stakeholders
 d. None of the above d. Data is the output while Information is the
input.
3. I. All user groups have the same information
requirements. II. External stakeholders require 4. ​Statement 1: ​Management often requires
information very similar from that of management information that goes beyond the capability of AIS.
and operations users.
statement 2 :​ AIS is subsystem process of financial
a. Only statement I is true transactions only that directly affect the processing
b. Only statement II is true of financial transactions.
c. Both are true
d. Both are false a. statement 1&2 are false.
b. statement 1 is true but statement 2 is
4. All are elements of a system, except false.
c. statement 1 is false but statement 2 is true.
a. Relatedness d. statement 1&2 are true.
b. Multiple components
c. Purpose 5. Which among the following are the fundamental
d. Decomposition tasks of database management?

5. It is an event that do not meet the narrow I. storage

definition of financial transaction II. Input data
III. retrieval
a. Non Financial transactions IV. Deletion
b. Information System V. Output data
c. Transaction
d. Financial transactions

1.An event that affects or is of interest to the a. I, III, IV only.

organization and is processed by its information b. I, II,III, V only.
system as a unit of work. c. II, V only.
d. All of the above.
a. System
b. Transaction
c. AIS
d. MIS 1. A system must contain at least one part.
TRUE
2. Which of the following is not an example of 2. Horizontal flows distribute information
financial transaction? downward from senior management to
junior managers and operations personnel
a. Sales of products to customer in the form of instructions, quotas and
b. Purchase of inventory from vendor budgets. ​FALSE- Vertical flows
c. Cash disbursement and receipt 3. ______ is the first operational stage in the
d. Booking a fixed deposit information system.
a. Data collection
3. Which of the following statements is correct b. Data management
regarding the distinction between the terms data c. Data processing
and information? d. Data storage

a. Data are facts while Information is often 4. It is an accounting framework for modeling an
defined simply as processed data. organization’s critical resources, events and
b. Data is an individual unit that contains raw agents.
material which does carry any specific
meaning while Information is a group of a. Task data
data collectively carry a subjective meaning. b. Flat file approach
c. Data measured meaningful units like time, c. Data base
quantity and etc while Information measured d. REA
in bits and bytes.
5. Which of the following is a single -view model?
a. Database model
b. REA model
c. Flat file approach
d. Task data
1.Statement 1: The term system generates mental
images of computers and programming.
Statement 2: A system is a group of two or more
interrelated components or subsystems that serve
different purposes.
a. Only statement 1 is true
b. Only statement 2 is true
c. Both statements are true
d. Both statements are false
2.Statement 1: Economic resources are the assets
of the organization.
Statement 2: An organization can overcome the
problems associated with flat files by implementing
the database model to data management.
a. Only statement 1 is true
b. Only statement 2 is true
c. Both statements are true
d. Both statements are false
3. _________________is accountable for the
short-term planning and coordination of activities
necessary to accomplish organizational objectives.
a. Operation management
b. Middle management
c. Top management
d. Managers
4.A system must serve one _______________.
a. Multiple components
b. Relatedness
c. Subsystem
d. Purpose
5.The ________________ is the most elemental
piece of potentially useful data in the database.
a. Data collection
b. Data processing
c. Data attribute
d. Mobile data
______ 1. (I) The General Ledger System (GLS)
and the Financial Reporting System (FRS) are two
not related subsystems. (II) Transaction Processing
System deals with business events that occur
frequently.
a. Both statements are TRUE
b. Both statements are FALSE
c. Only (I) statement is TRUE
d. Only (II) statement is TRUE
______ 2. Which is NOT a definition of
Management Reporting System (MRS):
a. This type of reporting is called non-discretionary
reporting
b. This type of reporting is called discretionary
reporting
c. Typical reports produced under this subsystem of
AIS include budgets, variance reports,
cost-volume-profit analyses, and reports using
current cost data.
______ 3. INFORMATION ENVIRONMENT: (I)
Information is non-vital to the survival of the
contemporary business organization. (II)
Information is not a business resource.
a. Both statements are TRUE
b. Both statements are FALSE
c. Only (I) statement is TRUE
d. Only (II) statement is TRUE
______ 4. Which is NOT related to the definition of
a system?
a. Although, each part functions independently of
the others, all parts serve a common objective
b. It is a group of two or more interrelated
components
c. is responsible for long-term planning and setting
organizational objectives
d. Natural and Artificial Customers, Suppliers, are part of the
organization’s external users.
______ 5. (I) AIS subsystems processes Financial TRUE
Transactions and Non-Financial Transactions that 3. The Management Reporting System is an
directly affect the processing of Financial AIS subsystem consisting of three cycles:
Transactions. (II) The MIS processes nonfinancial sales, expenditure and conversion.
transactions that are not normally processed by FALSE
traditional AIS. IT Auditing is usually performed as part of a
broader financial audit
a. Both statements are TRUE TRUE
b. Both statements are FALSE 4. Database management is the process of
c. Only (I) statement is TRUE compiling, arranging, formatting, and
d. Only (II) statement is TRUE presenting information to users.
ANSWER: INFORMATION GENERATION
5. Financial Transactions are events that do
not meet the narrow definition of a financial
1. An efficient information system captures and transaction.
stores data. ANSWER: NON-FINANCIAL
​A. Data storage TRANSACTION
B. Storage
C. Data information 1. A form of output that is sent back to the
D. Unicorn system as a source of data.

2. The activity of getting product to the customer A. Chatbox

after the sale. B. Feedback
A. Distribute C. Data
​B. Distribution D. Output
C. Giving goods
D. Unicorn 2. Statement 1: Under the centralized data
processing model, all data processing is
3. Is responsible of ordering inventory from vendors ⁹performed by more or less 3 large computers
when inventory level falls to their reorder point housed at a central site that serve users throughout
​A. Purchasing the organization.
B. Receiving
C. stores Statement 2: The data processing group manages
D. Unicorn the computer resources used to perform the
day-to-day processing of transaction
4. Personnels manages the financial resources of
the firm. True or ​False​? a. Both are true
b. Only statement one is true
Ans: False c. Only statement two is true
d. Bot are false
5. Distribution is the activity that occurs in the 3. These are the characteristic of useful
conversion cycle which materials are to create information, except:
products. True or ​False​?
A. Relevance
1. Top management is accountable for B. Accountability
long-term strategy and corporate goals. C. Accuracy
TRUE D. completeness
One of the components of a system is
System versus Sub-Units 4. The three database management task
FALSE
2. Three basic activities are involved in Top A. Storage, inventory, purchase
Management: storage, recovery and B. Storage retrieval, inventory
deletion. C. Storage, retrieval, deletion
FALSE D. storage , purchase, retrieval

5. A process of compiling, arranging, formatting and
presenting information to user.
a. Database management
b. AIS
c. information retrieval
d. Information generation
1.S1:update valid vendor file is a financial
transaction.
S2: Being a system programmer is ​not ​an
accountant's primary role in information
systems.
a. Statement 1 is false and Statement 2 is
true
b. Statement 1 is true and Statement 2 is false
c. Both are true
d. Both are false
2. Which of the following best describes the
activities of the materials management
function?
a. purchasing, receiving, and inventory control
b. receiving, sales, distribution, and
purchasing
c. receiving, storage, purchasing, and
accounts payable
d. purchasing, receiving, and storage
e. purchasing, storage, and distribution
3. S1:When viewed from the highest to most
elemental level, the data hierarchy is​ ​file,
record, attribute.
S2:One of the database management tasks is
summarization.
a. Statement 1 is false and Statement 2 is true
b. Statement 1 is true and Statement 2 is
false
c. Both are true
d. Both are false
4. Which of the following is a disadvantage of
distributed data processing?
a. End-user involvement in systems operation
is decreased.
b. Disruptions due to mainframe failures are
increased.
c. The potential for hardware and software
incompatibility across the organization
is increased.
d. The time between project request and
completion is increased.
e. All of the above are disadvantages.
5. The following are subsystems of the
Accounting Information System, ​EXCEPT
a. Transaction Processing System.
b. Human Resources System.
c. General Ledger / Financial Reporting
System.
d. Management Reporting System.
1.Accountants have some form of use of the AIS in
all but which role?
A.User
B.Programmer
C.Auditor
D.Designer
2.Which of the following is not one of the general
types of business processes identified by the
textbook?
A. Revenue Processes
B. Expenditure Processes
C. Conversion Processes
D. Human Resource Process
3.When a customer return goods that were
purchased, the business process to accept the
return would most likely to be an:
A.Administrative Process
B.Conversion Process
C.Expenditure Process
D.Revenue Process
4.It is likely that an accountant will select a career
path, within accounting, that will not in some way,
involve the use of an accounting information
system. (​False​/True)
5. An auditor cannot make informed decisions
necessary to complete the audit without an
understanding of the accounting information
system. (​False​/True)
True or False
1. ​Data and information are among an
organization's most valuable assets.
True
2. ​Organizations should take advantage of every
opportunity to invest in information technology
in order to improve their AIS.
False
3. ​The AIS plays an important role in
maintaining a strategic position.
True
Multiple Choice A. Both statements are true

4. ​ hile general ledgers are used to summarize

W B. Both statements are false
every asset, liability, equity, revenue, and
expense account, subsidiary ledgers are used C. Only statement 1 is true
to summarize subaccounts for particular
general ledger accounts. Identify the general D. Only statement 2 is false
ledger account that typically does not have a
subsidiary ledger. 2. Statement 1: Data are facts, which may or may
not be processed (edited, summarized, or
a) Accounts Receivable refined) and have no direct effect on the user.

b) Accounts Payable Statement 2: Information is processed data

c) Purchase A. Both statements are true

d) Fixed Assets B. Both statements are false

5. ​The posting process C. Only statement 1 is true

a) Never generates more than D. Only statement 2 is false

one posting for each transaction
3. They are responsible for longer-term planning
b) Occurs as needed and setting organizational objectives.

c) Is used to placed post – it A. Top management

notes on all items that need
attention B. Middle Management

d) Summarizes the amounts C. Operations management

recorded in the journals to the
ledgers D. Operations personnel

6. ​ n accounting information system produces

A 4. Which of the following is not a characteristic of
more than financial statements. In fact, it is useful information?
relied upon to produce detailed operational
information about the organization's A. Relevance
performance. Where are the data collected from
to generate this operational information? B. Processed

a) Customers C. Timeliness

b) Vendors D. Accuracy

c) Revenue Cycle 5. Which of the following is not an element of a

system?
d) Expenditure Cycle

A. System vs. Subsystem

1. Statement 1: The 3 types of commercial
software are turnkey systems, backbone B. Purpose
systems, and vendor-supported systems.
C. Relatedness
Statement 2: There are 4 Information system
objectives D. Completeness