Select the best answer in the choices.

1. A structure that a business uses to collect, store, manage, process, retrieve, and report its
financial data.
a. Operations and managements system
b. Accounting Information system
c. Database management system
d. Internal control system

2. Managers uses the Accounting Information System to

a. Direct staff how to record financial data
b. Make a financial report for BIR reporting
c. Develop a management plan
d. Create sales report and perform cost analysis

3. Which of the following is false about accounting information systems?

a. They provide reports that people analyze.
b. They prevent errors and stop employees from stealing inventory.
c. They are designed to gather data about the company’s transactions.
d. They consist of processes that involve input of data from source documents, processing,
output, and storage.

4. These are the methods AIS uses for collecting, storing, retrieving, and processing data.
a. Data
b. Internal controls
c. Procedures and Instructions
d. Software

5. The AIS can provide how much inventory is on hand, most likely on what purpose
a. To increase sales to customers
b. To know how much to report in the balance sheet
c. To determine the best quality of goods on hand
d. To decide as to whether or not to buy more of inventory

6. Which of the following is not a factor to consider for the best quality of hardware in AIS?
a. Speed
b. Storage capability
c. Expandability and Upgradability
d. Economic life of the Hardware

7. Data contained in an AIS most likely include all of the following except
a. Sales order
b. Purchase order
c. Delivery receipt
d. Memo
8. The thing to consider most importantly in IT infrastructure is that
a. A software must be compatible with the hardware
b. Software must be expensive to ensure quality
c. Software must be fast and reliable
d. A software must be installed properly in the hardware
9. Juan is an accountant in a business firm engage in selling jewelries. He records the transaction
on a daily basis after 5pm in the afternoon. To prevent from data theft and unauthorized access
on his file Juan should
a. Place a password on the software he is using
b. Put the computer in a place where no one can easily see it
c. Make sure that the computer has a log registry
d. Ensure that the place has a surveillance camera

10. An accounting information system (AIS) processes ________ to provide users with ________.
a. Data; Information
b. Data; Transactions
c. Information; Data
d. Data; Benefits

11. Which of the following statements below shows the contrast between data and information?
a. Data is the output of an AIS
b. Data is more useful in decision making than information
c. Information is the primary output of an AIS
d. Data and information are the same

12. What is a key decision that needs to be made with regards to acquiring inventory?
a. Which credit cards to accept
b. Which employees to hire
c. Which vendors to use
d. How much capital to acquire

13. One group that relies on both the adequate collection and transformation of data for decision-
making purposes for an organization is
a. Management
b. Interested outsiders
c. Competitors
d. The government

14. An accounting information system must be able to perform which of the following tasks?
a. Collect transaction data
b. Process transaction data
c. Provide adequate controls
d. All of the above

15. Which of the following is not one of the components of an AIS?

a. Internal control and security measures
b. People
c. Procedures and Instructions
d. Hardware