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ACCOUNTING INFORMATION SYSTEMS FIRST QUARTER EXAMINATION

Accounting Information Systems (ONE WHOLE YELLOW PAPER)

Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The narratives, diagrams, charts, and other written materials that explain how a system works are collectively called _________________. A. documentation B. data flows C. flowcharts D. schema 2. The graphic description of the flow of data within an organization is called a ___________. A. systems flowchart B. data flow diagram C. context diagram D. document flowchart A graphical representation of the flow of documents and information between departments or areas of responsibility within an organization is called ___________. A. a data flow diagram B. a document flowchart. C. a system flowchart D. a program flowchart Which of the following is not a true statement? A. Documentation tools save an organization both time and money B. Documentation tools are used extensively in the systems development process. C. Data flow diagrams and flowcharts are the two most frequently used systems development documentation tools. D. Data flow diagrams and flowcharts are difficult to prepare and revise using software packages. A data flow diagram ___________________ A. is a graphical description of the source and destination of data that shows how data flow within an organization. is a graphical description of the flow of documents and information between departments or areas of responsibility. is a graphical description of the relationship among the input, processing, and output in an information system. is a graphical description of the sequence of logical operations that a computer performs as it executes a program.

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In preparing a DFD, when data are transformed through a process, the symbol used should be _____________. A. a circle B. an arrow C. a square D. two horizontal lines In a DFD, lines that are horizontal and parallel to each other represent ___________. A. data sources and destinations. B. data flows C. transformation processes D. data stores . In A. B. C. D. a DFD, a "bubble" is also known as ________________. data stores transformation processes data flows data destinations

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An entity that sends or receives data used or produced by the system is called a _________. A. data source or destination B. data store C. data flow D. data transformation A data flow diagram (or DFD) has four basic elements. The flow of data between processes, data stores, and data sources and destinations is known as __________. A. data sources and destinations B. data flows C. transformation processes D. data stores A data flow diagram (or DFD) has four basic elements. The altering of data from inputs to outputs is known as __________ A. data sources and destinations B. data flows C. transformation processes D. data stores A data flow diagram (or DFD) has four basic elements. The people and organizations that send data to and receive data from the system are known as ____________ A. data sources and destinations B. data flows C. transformation processes D. data stores In general, a data destination will be shown by _____________. A. an arrow pointing away B. an arrow pointing in C. arrows pointing both ways D. no arrows, only two horizontal lines In the data flow diagram of the customer payment process, "update receivables" will appear in _________. A. a square

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In a DFD, an arrow represents _______________. A. B. C. D. data sources and destinations. the direction of data flows. transformation processes. data stores. 15.

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In a DFD, a circle represents ____________. A. data sources and destinations. B. the direction of data flows. C. transformation processes. D. data stores.

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a circle two horizontal lines. none of the above

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a square; two horizontal lines; a circle

In the data flow diagram of the customer payment process, "Customer" will appear in ______. A. a square B. a circle C. two horizontal lines D. none of the above 27. In the data flow diagram of the customer payment process, "Customer payment" will appear above or in _________. A. a square B. a circle C. two horizontal lines D. an arrow Most processes on a DFD can be identified by __________. A. data in-flows only B. data out-flows only C. data flows both into or out of a process D. always being followed by a data store Data flows between two symbols on a DFD have more than one data item. More than one arrow is needed if _____________. A. data elements always flow together B. data elements flow at different times C. data elements flow to different locations D. there is no guideline on use of single or multiple arrows The transformation of data in a DFD is represented as a _______________. A. process B. data dictionary C. data stores D. data source and destination 30. The storage of data on a DFD is shown by ______. A. circles. B. arrows. C. squares. D. two horizontal lines Creating a DFD is an iterative process. Each DFD iteration helps the designer to refine the diagram and identify the fine points. A DFD created at a high-level or summary view is referred to as a ___________. A. data process diagram B. data dictionary diagram C. content diagram D. context diagram . In creating DFDs, a context diagram ________________. A. Includes major transformation processes B. Depicts systems boundaries C. Is not necessary D. Is very detailed In a payroll processing DFD, the "prepare reports" activity will be represented by __________, the "employee payroll file" will be represented by __________, and the "bank" will be represented by __________. A. a circle; two horizontal lines; a square B. a circle; two horizontal lines; two horizontal lines C. a rectangle; a square; a circle

How should control processes and control actions be represented in a data flow diagram? A. using a square to represent a data source and destination B. using a circle to represent a transformation process C. using two horizontal lines to represent a data store D. control processes and actions should be ignored in a DFD The term used to refine a high-level or summary view data flow diagram into successively lower levels to provide greater amounts of detail is _________. A. expand B. explode C. implode D. enlarge An analytical technique that uses standard symbols to graphically represent an information system in a clear, concise, and logical manner is called a ______. A. data flow diagram. B. flowchart. C. schema. D. narrative. Flowcharts are created using a standard set of symbols. These symbols can be divided into four basic categories. A square denotes an auxiliary operation and is found in which flowchart symbol category? A. input/output B. processing C. storage D. flow and maintenance What should be the first thing the creator of a flowchart does before beginning a flowchart? A. understand the system to be flowcharted B. identify the entries to be flowcharted C. design the flowchart so that it proceeds from left to right and top to bottom D. use standard flowcharting symbols In a document flowchart of a manual payroll processing system, "update employee file" will be shown by a(n) __________ symbol, and "prepare payroll check" will be shown by a(n) __________ symbol. A. input; output B. input; manual operation C. manual operation; output D. manual operation; manual operation

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Complete the flowchart segments for each of the following operations:


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processing transactions stored on magnetic tape to update a master file stored on magnetic tape

Transactions

New Master File

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processing transactions stored on magnetic tape to update a database stored on a magnetic disk

File Update

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reading data from a magnetic disk into the computer to be printed on a report

Report Generation

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manually sorting and filing invoices numerically

Invoices

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a scheduled automatic backup of an internal hard drive to an external hard drive

Internal Hard Drive

Complete the context diagram and level 0 DFD to document the payroll processing system at No-Wear Products.
As the internal auditor of No-Wear Products, you have been asked by your supervisor to document the companys current payroll processing system. Based on your documentation, No-Wear hopes to develop a plan for revising the current information system to eliminate unnecessary delays in paycheck processing. Your best explanation of the system came from an interview with the head payroll clerk: The payroll processing at No-Wear Products is fairly simple. Time data are record in each department using timecards and clocks. It is annoying, however, when people forget to punch out at night and we have to record their time information by hand. At the end of the period, our payroll clerks enter the time card data into a payroll file for processing. Our clerks are pretty good though Ive had to make my share of corrections when they mess up the data entry. Before the payroll file is processed for the current period, human resources send us data on personnel changes, such as increases in pay rates and new employees. Our clerks enter this information into the payroll file so it is available for processing. Usually, when mistakes get back to us, its because human resources is recording the wrong pay rate or en employee has left and the department forgets to remove the record. The data are then processed and individual employee paychecks are generated. Several important reports are also generated for management though I dont know exactly what they do with them. In addition, the government requires regular withholding reports for tax purposes. Currently, the system generates these reports automatically, which is nice.

? ? Operating Documents Employee Paychecks

Payroll Processing System

Management ?

? ? ? Governmental Agencies

Level 0 Data Flow Diagram for the payroll processing system at No-Wear Products.

Operating Departments

Human Resources Department

? 1.0 Process Employee Timecards

? Update Payroll File

3.0 Generate Paycheck Internal Reports Pay check ?

? Withholding Reports

Governmental Agencies

Complete the document flowchart to document the cash receipts system at S&S.
Ashton Fleming has worked furiously for the past month trying to document the major business and information flows at S&S. Upon completing his personal interviews with cash receipts clerks, Ashton asks you to develop a comprehensive flowchart for the cash receipts system. Ashtons narrative of the system follows: Customer payments include cash received at the time of purchase and account payments received in mail. At day s end, the treasurer endorses all checks and prepares a deposit slip for the checks and the cash. A clerk then deposits the checks, cash, and deposit slip at the local bank each day. When checks are received as payment for accounts due, a remittance slip is included with the payment. The remittance slips are used to update the accounts receivable file at the end of the day. The remittance slips are stored in a file drawer by date. Every week, a cash receipts report and an aged trial balance are generated from the data in accounts receivable ledger. The cash receipts report is sent to management. The aged trial balance is sent to the credit and collections department. (next page Document Flowchart)

S&S Cash Receipts System


Treasurer Clerk Accounts Receivable

From ?

Cash and Checks ?

Cash and Checks

Deposit Slip

Update Accounts Receivable Ledger/File

? Generate Weekly Reports Cash and Checks ?

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A To Management

To ?