PANPACIFIC UNIVERSITY, INC

( formerly Panpacific University North Philippines, Inc. )

PACUCOA ACCREDITED ISO 9001:2008 CERTIFIED

PRELIM EXAMINATION – 1st Semester S.Y. 2018-2017

Subject: Accounting Information System (COMP 4BSA)

General Instructions: (1) Use only black or blue pen. No friction pen. (2)
Erasures/Superimposition/Alterations is considered wrong. (3) Do not tear or fold of any page/s of
your test booklet it will invalidate all your answers. (4) mind your own business and use your only
your own calculator when needed. Anybody caught is considered cheating and will be dealt with
accordingly. (5) No permit, no exams.

I. True or False: On the first page of your test booklet number it 1-5, 6-10, 11-15 and 16-20. Write
the word True if it is correct and False if it is incorrect. (20 items = 20 pts.)
1. Transaction processing systems convert non-financial transactions into financial transactions.
2. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting
3. The database administrator is responsible for the security and integrity of the database.
4. The flat-file approach is most often associated with so-called legacy systems.
5. Under SOX legislation auditors are no longer allowed to provide consulting services to their
clients.
6. Processing more transactions at a lower unit cost makes batch processing more efficient
than real-time systems.
7. Document flowcharts are often used to depict processes that are handled in batches.
8. System flowcharts represent the input sources, programs, and output products of a computer
system.
9. Batch processing systems can store data on direct access storage devices.
10. The most significant characteristic of direct access files is access speed
11. Employees should be made aware of the firm’s commitment to ethics.
12. Source code is an example of intellectual property.
13. Business bankruptcy cases always involve fraudulent behavior
14. Defalcation is another word for financial fraud.
15. Segregation of duties is an example of an internal control procedure.
16. The cash receipts journal is a special journal.
17. In a computerized accounting system, segregation of functions refers to inventory control,
accounts receivable, billing, and general ledger tasks.
18. If a customer submits a written purchase order, there is no need to prepare a sales order.
19. Sales return involves receiving, sales, credit, and billing departments, but not accounts
receivable.
20. A remittance advice is a form of turn-around document.