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 PRACTICE BOOK» NOT FOR SALE
Contents

1 ACCOUNTING INFORMATION SYSTEMS . . . . . . . . . . . . . . 2

1.1 ACCOUNTING INFORMATION SYSTEMS . . . . . . . . . . . . . . . . . . . . . . 2
 1. ACCOUNTING INFORMATION

NARAYAN CHANGDER
SYSTEMS

1.1 ACCOUNTING INFORMATION SYSTEMS

1. The type of business that is considered to B. False
have the most difficult and complex ac-
counting information system. 4. Income summary closed to owner’s capi-
tal.
A. Commerce
A. General Journal
B. industry
B. Sales Journal
C. serve
C. Cash Receipt Journal
D. financial institution
D. Cash Payment Journal
2. Citizen development is a business process
that encourages non-IT trained employ- E. Purchases Journal
ees to become software developers, using
5. The revenue cycle refers to the process of
IT-sanctioned low-code / no-code (LCNC)
business activities and data processing re-
platforms to create business applications.
lated to any matter.
Which category of social issue is it?
A. Receiving orders
A. employment
B. Receiving goods
B. skilling and deskilling
C. digital divide C. repayment of debt

D. information warrior D. Employee Salary Payment

3. Economic agents are individuals and de- 6. What is the relationship between
partments that participate in an economic database entities?
event. They are parties both inside A. Entity
and outside the organization with discre-
B. Attributes
tionary power to use or dispose of eco-
nomic resources. C. Relationships
A. True D. Domain

1. B 2. B 3. A 4. A 5. A 6. C
1.1 ACCOUNTING INFORMATION SYSTEMS 3

7. At present, why is knowledge and under- D. To reduce the amount owed by credit
standing of information technology impor- customers after goods were returned to
tant to accountants? the business

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A. Accounting information systems tend Explanation:Credit note:Reduces the
to be more computer intensive. amount owed by credit customers:*who
were previously overcharged; or*after
B. Setting up an accounting information goods were returned.
system requires knowledge of informa-
tion technology. which is a component of 11. is a design technique which involve the
the accounting information system design of software on real-world objects
C. The independent auditor must under- which consists of both data and procedures
stand the workings of the computer sys- that process them rather than traditional
tems used to process accounting data. To design where procedures operate on sepa-
make the audit work more efficient. rate data.

D. All correct. A. database design

B. object-oriented design
8. The process and purpose of data in a
data flow diagram are symbolized by C. prototyping design
symbols D. normalization
A. circle 12. Sale of land for cash
B. rectangle A. General Journal
C. line two B. Sales Journal
D. arrow C. Cash Receipt Journal
9. A purchase of equipment using cash is D. Cash Payment Journal
recorded inthe: E. Purchases Journal
A. cash receipts journal.
13. Information is a business resource.
B. cash payments journal.
A. TRUE
C. purchases journal
B. FALSE
D. general journal
14. Manual activities on the flow chart are
10. What is the purpose(s) of issuing a credit symbolized by images
note? (You may select more than one op-
tion) A. rectangle
B. circle
A. To inform the credit supplier that pay-
ment by cheque has been made for a spe- C. inverted trapezoid
cific invoice D. rectangle
B. To reduce the amount owed by credit
customers who were previously over- 15. The basic principles of an accounting infor-
charged mationsystem include all of the following
except
C. To increase the amount owed by credit
customers who were previously under- A. cost-effectiveness.
charged B. flexibility

7. D 8. B 9. B 10. B 10. D 11. B 12. C 13. A 14. C 15. D

1.1 ACCOUNTING INFORMATION SYSTEMS 4

C. useful output 20. The entries in a sales journal will show

D. periodicity A. the credit sales of merchandise
B. all sales of the company
16. What information should not appear on
the billing form? C. all sales of merchandise
A. Name of business location D. the cash sales of the company
B. Customer details
21. Which is not a characteristic of good infor-

NARAYAN CHANGDER
C. Terms of sale mation?
D. Name of managing director A. It is compact.

17. What is the main purpose of the ordering B. Complete and complete
and receiving system? C. There are many and various
A. Collecting, recording, and summariz- D. It is reliable and accurate.
ing accounting information
22. The most basic element of useful data in
B. Able to collect money into business
the database is
quickly and according to schedule.
A. the record
C. Ordering at the lowest price and re-
ceiving the product according to the de- B. the key
sired standard and on time. C. the file
D. Bringing raw materials into the produc- D. the attribute
tion process Controlling the efficient use
of labor and machinery 23. What does trial balance mean?
18. Received credit for merchandise purchased A. The documents obtained are used for
on credit. recording accounting in the manual sys-
tem.
A. General Journal
B. Documents obtained by posting jour-
B. Sales Journal nal entries.
C. Cash Receipt Journal C. A document that shows the balances
D. Cash Payment Journal in every account of the general ledger.
E. Purchases Journal D. Documents are used for accounting
and recording transactions starting from
19. A DFD is a representation of which of the the occurrence of trade transactions.
following?
24. Program Web Online You must download?
A. The logical operations performed by a
computer program A. Xampp
B. Flow of data in an organization B. Editplus
C. Decision rules in a computer program C. Google Chrome
D. Computer hardware configuration D. Wordpress
E. Computer hardware database E. Xampp and Editplus

16. D 17. C 18. A 19. B 20. A 21. C 22. D 23. B 24. E 25. D
1.1 ACCOUNTING INFORMATION SYSTEMS 5

25. What is the first step in the data process- C. To inform the credit customer of the
ing cycle? amount owed after the business sold
goods

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A. output
D. To inform the credit supplier of the
B. storage
amount owed after the business provided
C. processing services
D. input Explanation:Remittance advice:Informs
credit supplier that payment by cheque
26. Most of the inputs to the General Ledger has been made for a specific invoice.
System come from the Financial Reporting
30. Proof of transactions between companies
System.
and vendors that will be included in the SIA
A. TRUE database are as follows, except
B. FALSE A. Vendor payments
B. Vendor invoices
27. Which is not a benefit from the results
that come out of the accounting informa- C. Proof of delivery of goods/services
tion system and are used as financial evi- D. Purchase order
dence?
31. COGs of credit sale
A. Helps sell products better.
A. General Journal
B. Helps as a tool for paying taxes B. Sales Journal
C. Helps businesses know the true prof- C. Cash Receipt Journal
its of the organization.
D. Cash Payment Journal
D. Helps as a tool to support finding fund-
E. Purchases Journal
ing sources for businesses.
32. Which is not a benefit of a database man-
28. The system is agement program?
A. a group of elements that stand alone A. Separate the instructions from the
B. a group of elements that are related to data.
each other but have different purposes B. To obtain a work system that is desir-
C. a group of elements that are closely able and consistent with the organization
related to each other, which function to- C. Increase the efficiency of communica-
gether to achieve a common goal tion between users and the work system.
D. a group of non-repeating elements D. Increase the ability to link related in-
formation.
29. What is the purpose of a remittance ad-
vice? 33. A subsidiary ledger containing only ac-
counts for vendors from whom items are
A. To inform the credit supplier that pay- purchased or bought on account.
ment by cheque has been made for a spe-
A. accounts payable ledger
cific invoice
B. accounts payable account
B. To inform the credit customer that pay-
ment by cheque has been made for a spe- C. accounts receivable ledger
cific invoice D. accounts receivable account

26. B 27. D 28. C 29. A 30. C 31. B 32. B 33. A 34. A 34. C
1.1 ACCOUNTING INFORMATION SYSTEMS 6

34. Which are the types of control for informa- 39. Purchase of merchandise on account.
tion system? A. General Journal
A. physical protection B. Sales Journal
B. mental protection C. Cash Receipt Journal
C. biometric controls D. Cash Payment Journal
D. telecommunications controls E. Purchases Journal
E. success controls

NARAYAN CHANGDER
40. Postings to the control accounts in the gen-
35. Which of the following attributes would eral ledger are made
most likely be a primary key? A. annually
A. supplier name B. daily
B. supplier number C. monthly
C. supplier zip code D. weekly
D. supplier account balance 41. Which is the administrative reporting sys-
tem?
36. Recapitulation Daily Report in web?
A. Viewing reports
A. Atribut
B. Creating a report
B. Revenue Report
C. Report formatting
C. Payment Report
D. Report processing
D. Revenue Report and Payment Report
42. Which of the following is not an important
E. Salary Report accounting cycle?
37. Which is the greatest benefit of E- A. Form
Commerce to the economic system? B. Financial statements
A. Enabling businesses in developing C. Cash opname
countries to have access to new technol-
D. Helper book
ogy
B. Consumers have access to modern me- 43. ERP stands for
dia. A. enterprise resource planning
C. Product sellers can study and gain B. enterprise resource program
more knowledge. C. enterprise reporting program
D. There are more choices for con- D. none of the above
sumers.
44. In a database, a complete set of attributes
38. What documents are used to collect pay- for a single occurrence of an entity class is
ments from customers? called
A. Invoice A. a key
B. Original tax invoice B. a file
C. Product return receipt C. a record
D. delivery note D. a character

34. D 35. B 36. D 37. A 38. A 39. E 40. C 41. D 42. C 43. A 44. C
1.1 ACCOUNTING INFORMATION SYSTEMS 7

45. Which is not a device used in computer ac- 50. What is the final step in the data process-
counting? ing cycle?

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A. computer A. output
B. Internet system B. storage
C. person C. processing
D. Ready-made program D. input

46. Credit sales of assets other than merchan- 51. The purchase of three computers for the
dise inventory occur infrequently and are sales staff, on account, is recorded in the
recorded in the journal.
A. general journal A. general
B. accounts receivable journal B. two column purchases

C. cash receipts journal C. cash payments

D. sales journal D. equipment

47. Credit purchases of equipment or supplies 52. Which is a correct resource of information
other than merchandise are recorded in systems?
the:
A. cash payments journal
B. cash receipts journal
C. general journal
D. purchases journal.

48. Good information must consist of these

things except: A. People, data and information
A. timeliness B. Materials, tools and equipment
B. materiality C. Energy, capital and time
C. Break-even D. People, information and equipment
D. mobility 53. The ability to achieve the goals of a sys-
tem depends upon the effective function-
49. All of the following are advantages of us- ing and harmonious interaction between
ing subsidiary ledgers except they: its subsystems. This is called
A. show transactions affecting one cus- A. system decomposition
tomer or one creditor in a single account
B. system redundancy
B. free the general ledger of excessive
details C. backup system

C. eliminate errors in individual ac- D. subsystem interdependency

counts.
54. What are the decision-making styles of
D. make possible a division of labor. middle management?

45. C 46. A 47. C 48. D 49. C 50. A 51. B 52. D 53. D 54. B
1.1 ACCOUNTING INFORMATION SYSTEMS 8

A. Decision making with uncertain pat- C. Cash Payment Report, Cash Flow Re-
terns port
B. Decision making with a semi-definite- D. Cash Disbursement Report, Cash Flow
semi-definite pattern. Report
C. Decision making with a definite format E. Income Statement Report, Financial
Posistion Report, Cash Flow Report
D. Standardized decision making
59. An information system is an example of a
55. Each student can register for multiple sub-

NARAYAN CHANGDER
natural system.
jects and each subject can have students
enrolled. More than one person or more A. TRUE
What kind of relationship will be repre- B. FALSE
sented?
60. What is the purpose of using a database
A. one to one
system in an organization?
B. one per group A. The investment costs are quite high.
C. group to group B. Security must be tightly organized.
D. There is no correct answer. C. Avoid an IRS audit
56. Posting a sales journal to the accounts in D. Management depends on a single
the general ledger requires a database administrator.
A. debit to Sales Revenue and a credit to 61. Organizational resource planning is called
Inventory
A. Enterprise Relationship Planning
B. debit to Accounts Receivable and a
B. Customer Relationship Management
credit to Sales Revenue
C. Enterprise Management Planning
C. debit to Cash and a credit to Sales Rev-
enue D. Employee Relationship Plainning
D. debit to Accounts Receivable and a 62. An information system designed specifi-
credit to Inventory cally to meet the needs of senior execu-
tives. What information system does this
57. Information technology (IT) is the use of mean?
computers to
A. accounting information system
A. sign the data or information
B. Management information system
B. store, retrieve, transmit, and manipu-
late data or information C. Information system to support deci-
sion making
C. store, retrieve, look, and manipulate
D. Information system for senior execu-
data or information
tives
D. copy, store data
63. Ocean Company sells a product for $500
58. Financial Reporting in web, minimal? on account to Great Atlantic Sales. This
A. General Ledger, Financial Posistion transaction will be recorded in the
Report A. purchase journal
B. Journal, Income Statement Report B. cash payments journal

55. C 56. B 57. B 58. E 59. B 60. D 61. C 62. D 63. D

1.1 ACCOUNTING INFORMATION SYSTEMS 9

C. cash receipts journal 69. Which of the following economic events

would not be recorded in the cash receipts
D. sales journal
journal?

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64. Forms not used in the purchasing system A. Collections of accounts receivable
A. purchase requisition B. Cash sales of merchandise
B. Product return form C. Cash from sale of land

C. Purchase order D. Cash purchases of merchandise

D. Product return receipt 70. Drag the source documents to their respec-
tive purposes. a b c d e
65. A control account A. a Payment voucher
A. does not appear on the balance sheet B. b Receipt
B. is equivalent to a contra account and C. c Invoice
represents the offsetting nature of deb- D. d Debit note
its and credits on a firm’s financial state-
E. e Credit note
ments
C. has a balance that equals the sum of 71. What is another name for a database man-
the balances in a group of related ac- agement system?
counts in a subsidiary ledger A. BSBM
D. holds individual accounts that support B. DBMS
a general ledger account C. DMBS
66. Which is not a characteristic of good data D. DBSM
and information? 72. Enterprise resource planning (ERP) sys-
A. correct tems are typically used by companies with
revenues of less than $5 million and up to
B. fast 20 employees
C. Exotic A. True
D. reliable B. False

67. Figure the first web? 73. Database management software

A. H index 0:Body A. word processing software

B. H index 1:Naratif B. spreadsheet software

C. database management software
C. H Index 3:Product
D. presentation software
D. Hindex 4:Price
74. What are the characteristics of informa-
E. H Index 5:Revenue Report
tion that are useful in decision making?
68. Information lacking reliability may still A. complete
have value B. Can be evaluated in numbers
A. TRUE C. related to the past
B. FALSE D. Sources are based on individuals only.

64. D 65. C 66. C 67. A 68. B 69. D 70. A 70. B 70. C 70. D 70. E 71. B
72. B 73. C 74. A 75. A
1.1 ACCOUNTING INFORMATION SYSTEMS 10

75. What are the disadvantages of using a B. Sales Journal

database? C. Cash Receipt Journal
A. A security system must be established. D. Cash Payment Journal
B. Information can be shared E. Purchases Journal
C. Reduce data redundancy
80. Input blocks include
D. Avoid data conflicts
A. Annual report

NARAYAN CHANGDER
76. Which of the following is not one of the B. Form
credit columns in the cash receipts journal:
C. Profit = income-expenses
A. Other accounts
D. Computer
B. Accounts payable
81. Which of the following is incorrect concern-
C. Accounts receivable
ing theposting of the cash receipts journal?
D. Sales
A. The total of the Other Accounts column
77. What are the decision-making styles of is notposted.
middle management? B. All column totals except the total for
A. Decision making with a definite format the Other Accounts column are posted
once at the end of the month to the ac-
B. Decision making with a semi-definite-
count title(s) specified in the column head-
semi-definite pattern.
ing.
C. Decision making with a definite format
C. The totals of all columns are posted
D. Standardized decision making daily to theaccounts specified in the col-
umn heading.
78. The major difference between the Financial
Reporting System (FRS) and the Manage- D. The individual amounts in a column
ment Reporting System (MRS) is the posted intotal to a control account are
posted daily to thesubsidiary ledger ac-
A. FRS provides information to internal count specified in the AccountCredited col-
and external users; the MRS provides in- umn.
formation to internal users
B. FRS provides discretionary informa- 82. Following are The Organizational Struc-
tion; the MRS provides nondiscretionary ture except
information A. Functional segmentation
C. FRS reports are prepared using infor- B. Business segment
mation provided by the General Ledger C. Marketing function
System; the MRS provides information to
the General Ledger System D. Information Technology function
D. FRS reports are prepared in flexible, 83. What is the accounting theory that states
nonstandardized formats; the MRS re- that a source document provides evidence
ports are prepared in standardized, for- to capture the occurrence of a transaction?
mal formats A. Historical cost
79. Purchase of office supplies for cash B. Original cost
A. General Journal C. Objectivity

76. B 77. B 78. A 79. D 80. B 81. C 82. C 83. C

1.1 ACCOUNTING INFORMATION SYSTEMS 11

D. Monetary B. general journal.

Explanation:According to the objectivity C. sales journal.
theory, a source document provides evi-

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dence to capture occurrence of a transac- D. cash receipts journal
tion. 88. What is the meaning of hardware?
84. Symbol Flowchart Different with DFD, A. Program that tells the computer to
there are? work
A. Data Source, Document, Storage B. Computer components
B. Data Source, Document, Data Flow C. Steps in work
C. Data Source, Document, Database D. Personnel working with computers
D. Data Source, Document, Storage, Pro- 89. What Journal would you record the trans-
cess action on this source document in?
E. Data Source, Data Flows, Process,
Data Storage

85. A backbone system is completely finished,

tested, and ready for implementation
A. TRUE A. Sales Journal

B. FALSE B. Purchase Journal

C. Cash Receipt Journal
86. How is this document useful?
D. Cash Payment Journal
E. General Journal
90. Implementation of an ERP system requires
effective segregation of responsibility for
A. recording, risk assessment, and con-
trol procedures.
B. authorization, monitoring, and risk as-
sessment.
C. recording and monitoring of organiza-
tional assets.
D. authorization, recording, and custody
A. Buy products of organizational assets.
B. Selling products
91. What does accounting information system
C. Serve mean?
D. Receive the product A. Report on work performance
87. If a customer returns goods for credit, the B. Processing
sellingcompany normally makes an entry C. Control of systems or resources
in the: D. A system that is responsible for collect-
A. cash payments journal. ing and processing

84. E 85. B 86. B 87. B 88. B 89. D 90. D 91. D 92. C

1.1 ACCOUNTING INFORMATION SYSTEMS 12

92. ABC Ltd found that it has undercharged us A. Management accounting Focused
for the joysticks bought earlier. specifically on preparing financial infor-
A. Invoice mation for internal users or management.
B. Management accounting It is not nec-
B. Receipt
essary to prepare according to generally
C. Debit note accepted accounting principles.
D. Credit note C. Management accounting is not compul-
sory.

NARAYAN CHANGDER
E. Payment voucher
D. All correct.
93. The ability to achieve the goals of a sys-
tem depends upon the effective function- 97. Which statement is correct regarding the
ing and harmonious interaction between words data and information?
its subsystems. This is called A. Data is more complex than informa-
A. system decomposition tion.
B. system redundancy B. The information can be used for man-
agement to make immediate decisions.
C. backup system
C. Data becomes information in the
D. subsystem interdependency
hands of the user.
94. Which of the following flowcharts illus- D. Information is easier to understand
trates the flow of data among areas of than data.
responsibility in an organization?
98. Evolution of information system models
A. Program flowchart
are
B. Document flowchart A. modern model, REA model, Database
C. Computer configuration chart model
D. System flowchart B. Manual Data, REA model, Database
model
E. A system flowchart is a narrative rep-
resentation of an information system C. Technology Data, REA model,
Database model
95. Which of the following attributes in the
D. Manual Data, REA model, Technology
Cash Receipts table (representing pay-
model
ments received from customers) would
most likely be a foreign key? 99. Which statement is correct regarding ERP
A. cash receipt number programs?
B. customer number A. Budget planning program
C. cash receipt number B. Accounting packaged program
D. cash receipt monthly C. Enterprise resource planning program

E. cash receipt date D. Accounting information system devel-

opment program
96. Which statement is correct regarding finan-
cial accounting and management account- 100. Clerical activities include
ing? A. Transaction journal

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1.1 ACCOUNTING INFORMATION SYSTEMS 13

B. Posting journals B. There is flexibility in closing the ac-

C. Counting units counting period.
C. There is a system to prevent incorrect

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D. Operational procedures
account entries.
101. What documents are used to collect pay- D. There is a multi-level password setting
ments from customers? system.
A. Product return receipt 106. Which of the following is incorrect con-
B. delivery note cerning subsidiary ledgers?
C. Original tax invoice A. The purchases ledger is a common sub-
sidiaryledger for creditor accounts
D. Invoice
B. The accounts receivable ledger is a
102. What documents are in the process of re- subsidiaryledger.
ceiving orders from customers? C. A subsidiary ledger is a group of ac-
A. sales order form counts with acommon characteristic.
B. tax invoice D. An advantage of the subsidiary ledger
is that itpermits a division of labor in post-
C. Credit note
ing.
D. waybill
107. Cash sales of merchandise are recorded
103. Choose the correct option in the
A. cash payments journal
B. cash receipts journal
C. general journal
D. sales journal
108. What are the four stages of the account-
A. A ing cycle?
B. B A. Adjust → Identify and record → Re-
C. C port → Close

D. D B. Report → Close → Identify and

record → Adjust
104. What type of business does not require a C. Identify and record → Adjust → Re-
sales and billing system? port → Close
A. industrial affairs D. Identify and Record → Report → Ad-
B. government just → Close
Explanation:The four stages of the ac-
C. bank counting cycle are:Identify and record →
D. Hospital or nursing home Adjust → Report → Close.

105. Which is not a good feature of accounting 109. The internal auditor represents the inter-
programs? ests of third-party outsiders.
A. There is a system developed through A. TRUE
Android. B. FALSE

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1.1 ACCOUNTING INFORMATION SYSTEMS 14

110. Which one correctly expresses the rela- 115. Which level of management is responsi-
tionship between data and information? ble for short-term planning and coordina-
A. Process data and information tion of activities necessary to accomplish
organizational objectives?
B. information, data processing
A. operations management
C. data process information
B. middle management
D. data, information, processing
C. top management
111. How is information different from raw

NARAYAN CHANGDER
D. line management
data? In terms of data users
A. not yet cooked 116. The functional organizational structure
organizes the activities of a business
B. Information is useful. The raw data is around areas of specialization. it is
not yet useful.
A. Functional segment
C. Information must take time to be ob-
tained. But raw data is available every B. Accounting functional
day. C. Business segment
D. The information is still not useful. Raw D. Information Technology Function
data is useful.
117. The button in the picture has a name that
112. Record sales of merchandise on credit in corresponds to which one?
the
A. Sales Journal
B. Purchases Journal
C. Cash Receipts Journal
D. Cash Payments Journal
E. General Journal

113. Telemarketers are using students’ detail

to promote tertiary education plan. Which
category of social issue is it?
A. employment A. Go to First Record

B. digital divide B. Go to Last Record

C. personal privacy C. Go to Next Record

D. information thief D. Go to Previous Record

114. Analytical techniques used to explain as- 118. A subsidiary ledger is

pects of information systems clearly, pre- A. a record of accounts that provide sup-
cisely and logically are porting details on individual balances, the
A. flowchart total of which appears in a general ledger
account
B. flow diagram
B. a complete record of business transac-
C. accounting information system/AIS tions recorded in a ledger over the life of
D. database a company

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1.1 ACCOUNTING INFORMATION SYSTEMS 15

C. an accounting journal designed to B. storage

record a specific type of transaction C. retrieval

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D. a created list of accounts used by a D. deletion
business entity to define each class of
items for which cash is spent or received 124. Effective information has all of the fol-
lowing characteristics except
119. Which of the following attributes in
the Cash Disbursement table would most A. relevance
likely be a foreign key? B. completeness
A. Cash disbursment number C. summarization
B. Vendor number D. structure
C. Customer check number 125. Northern Company sold goods to East-
D. Cash Disburment Date ern Enterprises for $1, 000 on account.
Cost of goods sold was $745. North-
E. Cash Disburment Monthly
ern uses a perpetual inventory system and
120. one citizen There will be only one ID card special journals. The cost of goods sold
number. And one national identification is recorded in the column of the sales
number can only be used with one person. journal.
What kind of relationship will it represent A. Cost of Goods Sold CR, Merchandise
in the database system? Inventory DR
A. one to one B. Sales Revenue DR, Accounts Receiv-
B. one per group able CR
C. group to group C. Cost of Goods Sold DR, Merchandise
Inventory CR
D. There is no correct answer.
D. Accounts Receivable DR, Sales Rev-
121. An accounting information system col- enue CR
lects and processes transaction data and
communicates financial information to 126. Which program in the Microsoft Office
decision-makers. suite is suitable for accounting work?
A. Microsoft Word
A. True
B. Microsoft Excel
B. False
C. Microsoft Access
122. Which is the payment process?
D. Microsoft Powerpoint
A. Prepare a bill
127. Which is not a principle of analysis for
B. Send invoices to customers
giving credit to customers?
C. Receive debt payments and deposit
A. Customer reputation in the business in-
money into the bank
dustry
D. Collect outstanding vouchers. B. Type of business
123. Database management tasks do not in- C. The customer’s financial status and
clude stability
A. summarization D. Customer reliability

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1.1 ACCOUNTING INFORMATION SYSTEMS 16

128. Which of the following? It is an advan- A. program documentation

tage to use shared databases as much as B. system documentation
possible.
C. operation documentation
A. Reduce data conflicts and redundancy
in data collection. D. user documentation
B. Added built-in section design and con- 132. Which are the techniques used to control
trol structure. computer-based information systems?

NARAYAN CHANGDER
C. The database has the qualities of good A. formal security policies
information.
B. passwords
D. Collect information easily
C. file encryption
129. What does creating a Go to First Data D. organisational procedures governing
button mean? the use of information systems
E. file encryption

A. 133. narratives, flowcharts, diagrams, and

other written explanations that explain
how a system works are the definition
of
A. documentation
B. B. process
C. flowchart
D. flow diagram

C. 134. Sale of merchandise on account

A. General Journal
B. Sales Journal
C. Cash Receipt Journal
D. D. Cash Payment Journal
E. Purchases Journal

130. Sales discount taken on goods sold. 135. Transaction processing systems convert
non-financial transactions into financial
A. General Journal transactions
B. Sales Journal A. TRUE
C. Cash Receipt Journal B. FALSE
D. Cash Payment Journal
136. Learn Flow chart, DFD, ERD, Business
E. Purchases Journal Process and Web make Characteristic/
131. Assume that you are Financio project Quality Accounting Information ( Financial
manager. Which documentation should Reporting), Except
you prepare before your resignation? A. Relevant

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1.1 ACCOUNTING INFORMATION SYSTEMS 17

B. Reliable 141. On what journal would you record a cash

C. Timeline sale?

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D. Verifiabel A. Sales Journal

E. Integrity B. General Journal

C. Purchases Journal
137. Which is the reason why it is necessary
for today’s accountants to learn and study D. Cash Receipts Journal
information technology? 142. Students think that the built-in applica-
A. Currently, information technology is tion is the most useful from their point of
used to collect accounting data. view.
B. Advances in information technology A. Lacing
have caused changes in business pro- B. Lightroom
cesses. Which ultimately affects the ac-
counting information system. C. youtube

C. Auditing in a business that uses com- D. K-mobile Banking

puters for processing needs to evaluate 143. Having embraced AI and the Internet-of-
the internal controls of the computer sys- Things (IoT), EITA is working on its re-
tem. mote monitoring of elevators in real time
D. All correct. for better service response, which would
allow technicians to be dispatched to fix
138. Return of merchandise sold for credit. or maintain lifts before they break down.
A. General Journal Suggest security solutions for EITA.
B. Sales Journal A. firewalls
C. Cash Receipt Journal B. intrusion detection software
D. Cash Payment Journal C. logic bomb
E. Purchases Journal D. surveillance software

139. The database administrator is responsi- 144. Which is not an objective of a revenue ac-
ble for the security and integrity of the counting information system?
database. A. The credit limit approval is carefully
A. TRUE screened.
B. FALSE B. Product returns are approved and in
accordance with established regulations.
140. Which is the benefit of accounting infor-
mation? C. Debt payments are recorded com-
pletely and correctly.
A. It is a way to study competitors.
D. Invoicing for products is accurate and
B. It is a way to earn profits. timely.
C. It is a way to reduce the number of em-
ployees. 145. Postings from the purchases journal to
the subsidiaryledger are generally made:
D. It is information for use in decid-
ing both short-term and long-term opera- A. yearly.
tions. B. monthly

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1.1 ACCOUNTING INFORMATION SYSTEMS 18

C. weekly 151. Documentation tools, statements is

D. daily FALSE?
A. Data Flow Diagram (DFD)
146. The reason why some bookkeepers still
B. Database Management System
do accounting by hand (Manual)Why?
(DBMS)
A. More confident than doing it on a com-
C. Flowchart
puter
D. Business Process

NARAYAN CHANGDER
B. Don’t know how to use a computer
E. ERD
C. The business that is being operated
does not have a computer to use. 152. The accounting information system
D. All correct. and processes transaction data and com-
municates financial information to decision
147. Documentation methods such as DFDs, makers.
BPDs, and flowcharts save both time and A. checks
money, adding value to an organization?
B. collects
A. True
C. identify
B. False
D. posting
148. Which of the following statements is
153. Each of the following is a subsidiary
FALSE?
ledger except the:
A. Flowcharts make use of many symbols.
A. accounts receivable ledger.
B. DFDs help convey the timing of events
B. accounts payable ledger
C. A document flowchart emphasizes the
C. customer’s ledger
flow of documents or records containing
data D. general ledger
D. Both a and b are false 154. Which is not a type of information sys-
tems?
149. Which of the following is a software pro-
gram that runs a database system?
A. SECTION
B. DBMS
C. DML
D. DDL

150. A subsidiary ledger containing only ac-

A. Transaction Processing Systems(TPS)
counts for charge customers.
B. Enterprise Collaboration Systems
A. accounts payable account
(ECS)
B. accounts payable ledger
C. Customer Relationship Management
C. accounts receivable accounts (CRM)
D. accounts receivable ledger D. Executive Information Systems(EIS)

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1.1 ACCOUNTING INFORMATION SYSTEMS 19

155. Which is NOT professional responsibili- C. must equal the composite balance of
ties of employers and employee? individual accounts in a related subsidiary
ledger

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A. managers should assess projects care-
fully, considering areas such as cost and D. is always greater than the composite
risk in relation to the aims of their em- balance of individual accounts in a related
ployer subsidiary ledger
B. employee should find solutions to help
161. Which form is the first step in the ex-
the company achieve its goals
pense cycle?
C. employee should not take responsible
A. purchase offer
for company asset
B. Purchase order
D. employee should seek advice from ap-
propriate legal department if need help C. Product receipt
D. payment voucher
156. The value of information for users is de-
termined by all of the following but 162. Collection on account from customers
A. reliability A. General Journal
B. relevance B. Sales Journal
C. convenience C. Cash Receipt Journal
D. completeness D. Cash Payment Journal
157. In a flat-file system, files are easily E. Purchases Journal
shared by users
163. The warehouse department sees that
A. TRUE
Product Type A is almost out of stock and
B. FALSE has reached the point of order. Therefore,
documents were created to be sent to the
158. Which is the first part that must be cre-
purchasing department.
ated when creating a database program?
A. purchase offer
A. table
B. Invitation to bid
B. questionnaire
C. Purchase order
C. form
D. Shipping order
D. report
164. Which source document would be used to
159. Under SOX legislation auditors are no
increase the amount owed by a credit cus-
longer allowed to provide consulting ser-
tomer?
vices to audit clients.
A. TRUE A. Receipt

B. FALSE B. Invoice
C. Credit note
160. The balance of a control account in the
general ledger D. Debit note
Explanation:Debit note:Increases the
A. must equal the amount of total assets amount owed by credit customers who
B. must always be zero were previously undercharged.

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1.1 ACCOUNTING INFORMATION SYSTEMS 20

165. The warehouse department sees that B. Define field and file formats
Product Type A is almost out of stock and C. Check the correctness of the informa-
has reached the point of order. There- tion
fore, documents were created to be sent to
the purchasing department. Proceed What D. Design relationships between files
documents should the warehouse depart- 171. Which is the four basic control strate-
ment prepare? gies?
A. purchase offer A. containment

NARAYAN CHANGDER
B. Invitation to bid B. deterrence
C. Purchase order C. obfuscation
D. Shipping order D. recovery
166. A company typically enters data only 172. One teacher can have many students. But
once in a manual accounting system each student can have only one advisor.
A. True What is the relationship like?
B. False A. one to one
B. one per group
167. What does electronic commerce (E-
Commerce) mean? C. group to group
A. Doing business between each other D. There is no correct answer.
B. Doing international business 173. Advantages of Computerized Accounting
C. Transactions through media electron- Systems, except
ics A. Typically enter data only once
D. Transactions via mail B. Many human errors are eliminated
168. Which is NOT part of information system C. More timely information
professionalism? D. Low Cost
A. personal values
174. Here is advantages of Subsidiary
B. state and legislation Ledgers, except
C. profession and code of conduct A. Show in a single account transactions
D. company safety affecting one customer or one creditor
B. Help the customer
169. Two common subsidiary ledgers are:
C. Help locate errors in individual ac-
A. accounts receivable and cash receipts. counts
B. accounts payable and cash payments. D. Free the general ledger of excessive
C. accounts receivable and accounts details
payable.
175. The total amount owed to all vendors is
D. sales and cost of goods sold summarized in a single general ledger ac-
170. Which of the following should be done count, Accounts Payable.
first when designing a database? A. True
A. Gather user information and needs B. False

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1.1 ACCOUNTING INFORMATION SYSTEMS 21

176. Accounting is a system that is Within a file, there are records that store
A. closed various records.

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B. relatively closed C. A data structure that has relationships
with a large amount of other data.
C. open
D. Bringing multiple records in different
D. feedback
files arranged in the same file into a sin-
177. Cash payments of merchandise are gle file.
recorded in the
181. A Primary Key must have several charac-
A. cash payments journal. teristics except which one?
B. cash receipts journal. A. Must not contain blank values.
C. general journal
B. Must not be in the first row
D. purchases journal.
C. Can indicate which row of the table it
178. Which is the role of a financial accoun- refers to.
tant related to accounting information sys- D. There is no redundancy in the same
tems? row.
A. Prepare information related to busi-
ness tax payments 182. Which activity is not part of the finance
function?
B. Prepare information for the benefit of
executives in decision making. A. cash receipts
C. It is the person who evaluates the in- B. portfolio management
formation obtained from the system to
C. credit
see how reliable it is.
D. Prepare financial statement informa- D. general ledger
tion to be accurate and reliable.
183. Sales discount
179. Roles accountants as the following EX- A. General Journal
CEPT:
B. Sales Journal
A. auditor
C. Cash Receipt Journal
B. system designer
D. Cash Payment Journal
C. users
D. marketer E. Purchases Journal

180. What is the definition of the word 184. responsible for recording and report-
“database”? ing the cash flow transactions of a com-
pany
A. Information that results from taking
information that has simple components. A. Marketing department
to be assembled into complex structured
B. Sales department
data
C. Technology Department
B. Data storage, which consists of a data
file, which consists of multiple data files. D. Accounting department

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1.1 ACCOUNTING INFORMATION SYSTEMS 22

185. The author distinguishes between the Ac- Dolores Yu operates a payroll processing
counting Information System and the man- business in Calabasas, California. When
agement Information System based on she sends bills out to her clients, her work
A. whether the transactions are financial is part of her firm’s
or nonfinancial A. revenue cycle
B. whether discretionary or nondiscre- B. expenditure cycle
tionary reports are prepared
C. financing cycle

NARAYAN CHANGDER
C. the end users of the reports
D. the organizational structure of the D. production cycle
business
190. Which of the following is not an objective
186. When designing an accounting system, of internal control for accounting informa-
the important thing that must be used is tion systems?
Flowchart. Why?
A. To reasonably ensure that operations
A. To gain a thorough understanding of within the organization are effective and
the work system and operating proce- efficient.
dures
B. To provide reasonable assurance that
B. To ensure that work is carried out cor- financial reports are reliable.
rectly
C. To reasonably ensure that operations
C. In order not to waste time in perform-
within the organization comply with appli-
ing work
cable laws and regulations.
D. So that the documents prepared are ef-
ficient and effective. D. To reasonably ensure that operations
within the organization are consistent
187. The business paid a cheque to ABC Ltd for with all goals set by management.
the joysticks bought.
A. Invoice 191. Purchases of Merchandise on credit are
recorded in the
B. Receipt
C. Debit note A. Sales Journal

D. Credit note B. Purchases Journal

E. Payment voucher C. Cash Receipts Journal

188. Sales allowance D. Cash Payments Journal

A. General Journal E. General Journal
B. Sales Journal
192. Which subsystem of the purchasing sys-
C. Cash Receipt Journal tem has the most relevant documentation?
D. Cash Payment Journal
A. Ordering system
E. Purchases Journal
B. Receiving system
189. Many small businesses choose to out-
C. Payment system
source their payroll activities to firms that
specialize in providing payroll services. D. Live sales system

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1.1 ACCOUNTING INFORMATION SYSTEMS 23

193. Who does the system development A. Purchasing and paying

work? B. Sales and Payments

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A. Public accounting firm C. Receiving money and paying
B. Tax Consultant Office D. production and payment
C. Consulate office 199. Which statement is incorrect regarding
D. Asset Appraisal Office the generaljournal?
A. Only transactions that cannot be en-
194. How are data sources and destinations
tered in a special journal are recorded in
represented in a data flow diagram?
the general journal.
A. as a curved arrow
B. Dual postings are always required in
B. as a square the general journal.
C. as a circle C. The general journal may be used to
D. as two parallel lines record acceptance of a note receivable in
payment of an account receivable.
195. An example of a non-financial transaction D. Correcting, adjusting, and closing en-
is tries are made in the general journal.
A. sale of products
200. What does Input-Process-Output mean?
B. cash disbursement A. Import steps
C. log of customer calls B. Steps for displaying results
D. purchase of inventory C. Data that is information comes from
passing through 3 processes.
196. Filing personal income tax forms through
the website of the Revenue Department D. Analyze accounting information
via www.rd.go.th is classified as a com- 201. Information Technology (IT) audits can be
mercial form. What kind of electronic performed by both internal and external
A. E-Society auditors.
B. E-Government A. TRUE
C. E-Auction B. FALSE
D. E-Commerce 202. Understanding the system

197. Which subsystem is not part of the Ac- A. Processor group

counting Information System? B. Sequence of clerical activities
A. Transaction Processing System C. The result of a process
B. Expert System D. Administrative process
C. General Ledger/Financial Reporting 203. The principles of developing an account-
System ing information system do not include
D. Management Reporting System A. flexibility.
B. usefulness.
198. The expenditure cycle refers to the itera-
tive process of business activities and in- C. cost effectiveness.
formation processing that involves what? D. elimination of human involvement.

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1.1 ACCOUNTING INFORMATION SYSTEMS 24

204. Who is the founder and creator of Face- 210. A sales journal is
book.com?
A. used to record the sales of assets
A. Mark Zuckerberg other than merchandise inventory
B. Steve Jobs
B. a general journal used to record the
C. Larry Page adjustments in revenue account
D. Step Cheng
C. a special journal used to record all the
205. Design View has the same meaning as

NARAYAN CHANGDER
cash sales
which of the following in the database
management program? D. a special journal used to record credit
sales
A. Datasheet view
B. design view
211. The purchasing system is classified as an
C. import table view accounting information system of which
D. Linked Grid View type?

206. Payment of employee wages. A. Resource management

A. General Journal B. Expense side
B. Sales Journal
C. Income side
C. Cash Receipt Journal
D. Cash Payment Journal D. Financial

E. Purchases Journal
212. A balance sheet prepared in conformity
207. From the employee’s main file. What is with GAAP is an example of discretionary
a Primary record key? reporting.
A. Employee ID
A. TRUE
B. Employee name
B. FALSE
C. Employee salary rate
D. Employee address
213. In the distributed data processing ap-
208. What database format is commonly used proach
in database system design?
A. computer services are consolidated
A. Hierarchical database and managed as a sharedorganization re-
B. Network database source
C. Relational database B. the computer service function is a cost
D. Single database center

209. Tian Kai decides to pay his supplier $2 C. the end users are billed using a charge-
500 with cheque from his business bank back system
account after 10 weeks.
D. computer services are organized into
A. Cash transaction small information processing units under
B. Credit transaction the control of end users

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1.1 ACCOUNTING INFORMATION SYSTEMS 25

214. In a perpetual inventory system, when D. Receipt

cash sales are recorded, Explanation:Invoice:Informs credit cus-
tomers of the amount owed after the busi-

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A. sales revenue increases and cash de-
creases ness sold goods or provided services on
credit.
B. sales revenue increases and cost of
goods sold decreases 219. Enterprise resource planning (ERP) sys-
tems are typically used by companies with
C. merchandise inventory decreases and
revenues of less than $1000 million and
cost of goods sold increases
up to 10.000 employees
D. merchandise inventory decreases and A. True
cost of goods sold decreases
B. False
215. When companies use special journals:
220. If a transaction cannot be recorded in a
A. they record all purchase transactions special journal, it is
in the purchases journal.
A. not recorded
B. they record all cash received, except B. recorded in the general journal
from cashsales, in the cash receipts jour-
nal. C. a correcting entry

C. they record all cash disbursements in D. an error

the cashpayments journal. 221. Which source document, approved by au-
D. a general journal is not necessary thorised personnel and supported by the
original supplier’s invoice, is used to pro-
216. 3 Basics types of entities EXCEPT cess payment to credit suppliers?
A. Resource A. Credit note
B. Agents B. Payment voucher
C. Events C. Remittance advice
D. Place D. Debit note
Explanation:Payment voucher:Processes
217. A purchase of equipment on account is payment to credit suppliers:*must be
recorded inthe: approved by authorised personnel;
and*must be supported by original sup-
A. cash receipts journal.
plier’s invoice.
B. cash payments journal.
222. Hazards resulting from receiving goods
C. one-column purchases journal
that were not ordered What internal con-
D. general journal trol methods should be in place?
A. Compare with approved purchase or-
218. Which source document will be received
der.
by a business when it purchases goods on
credit from its supplier? B. Give the number in advance on the re-
ceipt.
A. Credit note
C. The number of units of the product is
B. Invoice not specified on the purchase order sub-
C. Payment voucher mitted to the receiving department.

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1.1 ACCOUNTING INFORMATION SYSTEMS 26

D. Check the product count to match the 228. Accounts Receivable and Accounts
delivery note from the seller. Payable are examples of

223. Which is not an internal control over pur- A. nominal accounts

chases? The product is on credit. B. subsidiary ledger accounts
A. There must be a clear separation of du- C. controlling accounts
ties.
D. both nominal accounts and controlling
B. The purchase document is numbered.

NARAYAN CHANGDER
accounts
products in advance
C. In each purchase approval is required 229. An effective accounting information sys-
Every order is in writing. tem that provides relevant information
D. There are no written regulations for
working. A. reduces the cost of employing an ac-
counting information system
224. What do Business Documents mean?
A. business documents B. improves decision making and reduces
uncertainty
B. Document business
C. increases the likelihood of fraud and
C. Proof of trading errors
D. Business circle
D. improves the accuracy of data entry
225. A customer paid cash for computer parts when manual
bought from the business.
230. What is the accounting theory that states
A. Invoice that all transactions must be recorded at
B. Receipt the original cost at which they occurred?
C. Debit note A. Historical cost
D. Credit note B. Original cost
E. Payment voucher C. Objectivity
226. When preparing discretionary reports, D. Monetary
organizations can choose what informa- Explanation:According to the historical
tion to report and how to present it. cost theory, the transaction is recorded at
A. TRUE the original cost that it occurred.

B. FALSE 231. The sales system where buyers come

to the company, select goods and pay is
227. Which level of management is responsi-
called
ble for controlling day-to-day operations?
A. top management A. its CODE

B. middle management B. Over the counter sale

C. operations management C. Unatted gasoline station

D. executive management D. Credit card bisiness

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1.1 ACCOUNTING INFORMATION SYSTEMS 27

232. At the beginning of the month, the 236. Which item is classified as information?
accounts receivable subsidiary ledger A. toy price tag
showed balances for AppleCompany $5,

PRACTICE BOOK» NOT FOR SALE

000 and Berry Company $7, 000. Dur- B. Calculating income-expenses
ingthe month, credit sales were made to C. Amount remaining from purchase
Apple $6, 000, Berry $4, 500, and Can- D. Calculating profits from sales
taloupe $8, 500. Cash was collected on
account from Berry $11, 500 and Can- 237. The Management Reporting System pro-
taloupe$3, 000. At the end of the month, vides the internal financial information
the control accountAccounts Receivable in needed to manage a business.
the general ledger shouldhave a balance A. TRUE
of:
B. FALSE
A. $11, 000.
B. $12, 000 238. Which of the following commonly initi-
ates the data input process?
C. $16, 500
A. a business activity
D. $31, 000
B. automatic batch processing
233. What is the meaning of financial informa-
C. an accounting department source doc-
tion system?
ument
A. accounting information system
D. a trial balance query
B. financial information system
C. money information system 239. Aquila Trading is a computer parts retail
shop. The business bought joysticks on
D. system credit from ABC Ltd.
234. The following statements are inappropri- A. Invoice
ate about the system: B. Receipt
A. Every system consists of elements C. Debit note
B. This element is an integrated part of
D. Credit note
the system in question
E. Payment voucher
C. A system is part of another larger sys-
tem 240. Retrieval is the task of permanently
D. A system is established based on their removing obsolete or redundant records
respective vision and mission from the database
A. TRUE
235. Which is the benefit of the expense ac-
counting information system to the opera- B. FALSE
tions of the business in preparing reports
241. Depreciation on building
for users outside the business?
A. General Journal
A. Preparation of purchase requisition
B. Preparing a report on purchase orders B. Sales Journal
that have not yet been received. C. Cash Receipt Journal
C. Preparation of payment checks D. Cash Payment Journal
D. Preparation of creditor details report E. Purchases Journal

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1.1 ACCOUNTING INFORMATION SYSTEMS 28

242. Which source document is used to check 246. Which document is the starting point for
and tally against the records of its cash at the purchasing accounting system?
bank account? A. Invoice
A. Credit note B. delivery note
B. Bank statement C. Product return form
C. Remittance advice D. purchase requisition
D. Payment voucher

NARAYAN CHANGDER
Explanation:Bank statement:Checks and 247. In the case where the business returns
tallies against the business records of its the product to the seller Which department
cash at bank account. is responsible for delivering products and
documents to sellers?
243. Which of the following is not an advan- A. Warehouse department
tage of computerized accounting systems?
B. Finance department
A. Data is entered only once in computer-
ized accounting systems. C. Purchasing department

B. Computerized accounting systems pro- D. Accounting department

vide up-to-date information. 248. John Pablo works in the accounting de-
C. Computerized accounting systems partment of a multinational manufactur-
eliminate entering of transaction infor- ing company. His job includes updating
mation. accounts receivable based on sales orders
D. Computerized accounting systems and remittance advices. His responsibili-
eliminate manyerrors resulting from hu- ties are part of the company’s
man intervention A. revenue cycle

244. Johnson Pabrizio works in the accounting B. expenditure cycle

department of a multinational manufactur- C. financing cycle
ing company. His job includes updating ac- D. production cycle
counts payable based on purchase orders
and checks. His responsibilities are part of 249. What is the important factor used in se-
the company’s lecting a database program?
A. revenue cycle A. Number of users in the system
B. expenditure cycle B. DBMS working speed
C. financing cycle C. Can be used with all existing hard-
D. production cycle ware.
D. All correct.
245. Which is not included in the data process-
ing circuit? 250. Accounting corresponds to which English
A. input data language?

B. data output A. debit

C. Database B. credit

D. Improving the efficiency of the proces- C. worksheet

sor D. accounting

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1.1 ACCOUNTING INFORMATION SYSTEMS 29

251. The one characteristic that all entries B. Sales Journal

recorded in a cash receipts journal have in
C. Cash Receipt Journal
common is

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D. Cash Payment Journal
A. a debit to the Cash account
B. that they originate from the sales of E. Purchases Journal
merchandise
257. Please pick the most suitable special jour-
C. a credit to the Cash account nals to record the following transaction.
D. that they all represent collections from Purchased goods worth $1000 from ABC
customers Suppliers on Credit.

252. A DFD consists of the following four basic A. Purchase Journal

elements:data sources and destinations, B. Sales Journal
data flows, transformation processes, and
C. Purchase returns Journal
data stores. Each is represented on a DFD
by a different symbol D. Sales returns Journal
A. True
258. The business returned some faulty joy-
B. False sticks to ABC Ltd.
253. Companies use special journals to A. Invoice
A. record similar types of transactions B. Receipt
B. record different types of transactions C. Debit note
C. identify the right software D. Credit note
D. record transaction data E. Payment voucher
254. At what level of decision-making are mid-
dle management of an organization typi- 259. data that has been processed so as to pro-
cally involved? vide an answer or result to a question and
assist in decision making. Information that
A. Management control level can reduce uncertainty in data is called
B. Operational control level A. informasi
C. Policy maintenance level
B. data
D. Operational level
C. system
255. What department is responsible for issu- D. database
ing receipts?
A. Purchasing department 260. Payment of creditors on account
B. Accounting department A. General Journal
C. Warehouse plan B. Sales Journal
D. Receiving department C. Cash Receipt Journal
256. Credit sales of merchandise D. Cash Payment Journal
A. General Journal E. Purchases Journal

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1.1 ACCOUNTING INFORMATION SYSTEMS 30

261. Accounting is A. It takes a lot of investment in the initial

A. The process of recording financial stages.
transactions and evaluating results B. When a computer virus occurs, data
may be lost.
B. The process of collecting, identifying
and recording evidence of transactions, in C. Some accountants still stick to tradi-
order to produce financial information for tional methods.
users D. All correct.

NARAYAN CHANGDER
C. Activities to collect, identify and record
evidence of transactions, in order to pro- 266. one to one relationship Is it a direct rela-
duce financial information for users tionship to which one?

D. Recurring activities to record financial A. It is a relationship of only one record in

transactions and evaluate results an entity that is related to only one record.
Records in another entity
262. Adjusting entries are recorded in the B. It is the relationship of one record in
A. cash receipts journal one entity to multiple records in another
entity.
B. purchases journal
C. The relationship of multiple records in
C. general journal an entity to multiple records in another en-
D. cash payments journal tity.
D. There is no correct answer.
263. Angeline pays her supplier for goods
worth $1 000 with cash at the point of 267. Accounts are arranged in alphabetical or-
sale. der withing the subsidiary ledgers.
A. Cash transaction A. True
B. Credit transaction B. False
264. All of the following are recommended 268. Which is a component of an information
guidelines for making flowcharts more system?
readable, clear, concise, consistent, and
A. input data
understandable EXCEPT
B. objective
A. Divide a document flowchart into
columns with labels C. Feedback
B. Flowchart all data flows, especially ex- D. All correct.
ception procedures and error routines
269. Which of the following statements is cor-
C. Design the flowchart so that flow pro- rect?
ceeds from top to bottom and from left to
A. The sales discount column is included
right
in the cashreceipts journal.
D. Show the final disposition of all docu-
B. The purchases journal records all pur-
ments to prevent loose ends that leave the
chases ofmerchandise whether for cash
reader dangling
or on account.
265. What are the disadvantages of using ac- C. The cash receipts journal records
counting software? sales on account.

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1.1 ACCOUNTING INFORMATION SYSTEMS 31

D. Merchandise returned by the buyer is A. show in a single account transactions

recorded bythe seller in the purchases affecting one customer or one creditor-
journal. freethegeneralledgerofexcessivedetails

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B. free the general ledger of excessive
270. What types of data files are updated
details
very rarely?
C. help locate errors in individual ac-
A. Employee profile
counts
B. Product list file
D. make possible a division of labor
C. Product purchase list file
276. Which of the following is not part of the
D. Product sales data file
accounting function?
271. REA model was develop specifically for A. managing the financial information re-
use in designing AIS. source of the firm
A. TRUE B. capturing and recording transactions
B. FALSE in the database
C. distributing transaction information to
272. Which of the following is not a database operations personnel
management package?
D. managing the physical information sys-
A. Microsoft Access tem of the firm
B. Microsoft Visual FoxPro
277. The system components consist of
C. Microsoft SQL Server 2003
A. 6 blocks
D. Microsoft PowerPoint
B. 4 blocks
273. Program Web Offline and big data, You C. 5 blocks
must download?
D. All answers are wrong
A. Xampp
278. What types of objects are in the
B. Editplus
database? Access is used to store all avail-
C. Google meet able raw data.
D. Wordpress A. table
E. W3schools B. questionnaire

274. From the employee’s main file. What is C. form

a Primary record key? D. report
A. Employee name
279. Which item is classified as Main data file
B. Employee address of the sales system
C. Employee ID A. Sales order data file
D. Employee salary rate B. Invoice data file

275. Subsidiary ledgers have several advan- C. Change list file

tages: D. Inventory file

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1.1 ACCOUNTING INFORMATION SYSTEMS 32

280. An efficient and effective accounting in- 286. Important of Information technology is
formation system is based on several ba-
A. Consistency, inaccurate, realibility,
sic principles, including:
speed
A. cost effectiveness
B. speed, inconsistent, accuracy, reliabil-
B. use ity
C. flexibility
C. Consistency, accurate, realibility,
D. cost efficiency speed

NARAYAN CHANGDER
281. Entries in the purchases journal are made D. Consistency, inaccurate, realibility,
A. from purchase invoices slow
B. without supporting documentation 287. Which step below is not considered to be
C. from the general journal part of the data processing cycle?
D. from sales invoices A. data input
282. A sales journal will be used for: B. feedback from external sources
A. Credit Sales C. data storage
B. Cash Sales
D. data processing
C. Sales Discount
D. none of above 288. Sold goods on account at $2, 000 to cus-
tomer
283. Flowchart types of flow including False
A. Purchase Journal
A. Document
B. Sales Journal
B. Atribut
C. Process C. Sales returns Journal

D. Programe Arus Source D. Purchase returns Journal

E. Programe Arus Goal
289. a system that processes data and trans-
284. Voided check adalah actions to produce information useful for
planning, controlling, and operating a busi-
A. Checks are returned to the issuer
ness is called
B. Cashed check
A. informasi
C. Canceled checks
B. data
D. Check the ones that haven’t been used
C. system
285. A collection of information or raw facts
in the form of numbers, words, symbols D. accounting information system/AIS
or images obtained from observations or
searches of certain sources is called 290. Which of the following provides proof
that a transaction has occurred?
A. informasi
B. data A. Source document
C. system B. Journal
D. database C. Ledger

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1.1 ACCOUNTING INFORMATION SYSTEMS 33

D. Trial balance 292. Identify the four parts of the transaction

Explanation:Receipt:Acknowledges pay- processing cycle
ment received from customers immedi-

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A. data input, data storage, data process-
ately after the business has sold goods or ing, information output
provided services.
B. data input, data recall, data process-
291. What Journal would you record the trans- ing, information output
action on this source document in?
C. data input, data recall, data transmis-
sion, information output
D. data input, data recall, data transmis-
sion, data storage

293. What are the advantages of using ac-

A. Sales Journal counting software?

B. Purchase Journal A. Convenient, fast, accurate

C. Cash Receipt Journal B. It takes a lot of investment.
D. Cash Payment Journal C. Copying data is easy.
E. General Journal D. Difficult to use

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