Which is NOT an accountant’s primary role in information systems?

o System user
o System auditor
o System designer
o System programmer

The objectives of the data collection activity of the general model for Accounting Information Systems
are to collect data that are?

o Relevant and redundant

o Efficient and objective
o Efficient and redundant
o Efficient and relevant

Which of the following is NOT a purpose of the Transaction Processing System?

o Managing and reporting on the status of financial investments

o Converting economic events into financial transactions
o Distributing essential information to operations personnel to support their daily operations
o Recording financial transactions in the accounting records

Which of the following is NOT a financial transaction?

o Purchase of products
o Cash receipts
o Update valid vendor file
o Sale of inventory

Which of the following is a disadvantage of distributed data processing?

o End-user involvement in systems operations is increased

o Disruptions due to mainframe failures are increased
o The potential for hardware and software incompatibility across the organization is increased
o All of the above are disadvantages

Which of the following is NOT a characteristic of effective information?

o Relevance
o Accuracy
o Summarization
o Precision

Which of the following best describes the activities of the production function?

o Maintenance, inventory control, and production planning

o Production planning, quality control, manufacturing, and cost accounting
o Quality control, production planning, manufacturing, and payroll
o Manufacturing, quality control, and maintenance
Which of the following is NOT a database management task?

o Retrieval
o Storage
o Printing
o Deletion

Which is not an ERP software?

o SAP
o JD Edwards
o Quick books
o Oracle

When viewed from the highest to most elemental level, the data hierarchy is?

o Attribute, record, file

o Record, attribute, key
o File, record, attribute
o File, record, key
o Key, record, file

The following are subsystems of the Accounting Information System, EXCEPT:

o Transaction processing system

o Human resources system
o General ledger/financial reporting system
o Management reporting system

Which statement best describes the issue of distributed data processing (DDP)?

o The centralized and DDP approaches are mutually exclusive; an organization must choose one
approach or the other.
o The philosophy and objective of the organization’s management will determine the extent of
DDP in the firm.
o In a minimum DDP arrangement, only data input and output are distributed, leaving the tasks of
data control, data conversion, database management, and data processing to be centrally
managed.
o The greatest disadvantage of a totally distributed environment is that the distributed
information processing unit locations are unable to communicate and coordinate their activities.
o Although hardware (such as computers, database storage, and input/output terminals) can be
effectively distributed, the systems development and maintenance tasks must remain
centralized for better control and efficiency.

Which of the following best describes the activities of the materials management function?

o Purchasing, receiving, and inventory control

o Receiving, sales, distribution, and purchasing
o Receiving, storage, purchasing, and accounts payable
 o Purchasing, receiving, and storage
o Purchasing, storage, and distribution

Which of the following is NOT an objective of all information systems?

o Support for the stewardship function of management

o Support for management decision
o Support for the day-to-day operations of the firm
o all of the above are objectives

Which of the following best describes the activities of the accounting function?

o Fixed assets, accounts payable, cash disbursements, and payroll

o Purchasing, cash receipts, accounts payable, cash disbursements, and payroll
o Inventory control, cash receipts, accounts payable, cash disbursements, and payroll
o Inventory control, cost accounting, accounts payable, cash disbursements, and payroll
o Inventory control, accounts payable, fixed assets, and payroll

Information System Categorization

Classify the following items as either:

TPS – Transaction Processing System FRS – Financial Reporting System

MRS – Management Reporting System

a. Variance reports – (MRS)

b. Sales order capture – (TPS)
c. Balance sheet – (FRS)
d. Budgets – (MRS)
e. Purchase order preparation – (TRS)
f. Tax returns – (FRS)
g. Sales summary by product line – (FRS)
h. Cash disbursements preparation – (FRS)
i. Annual report preparation – (FRS)
j. Invoice preparation – (TPS)
k. Cost-volume-profit analysis – (FRS)
Characteristics of Useful Information
Record Type Primary Key
Accounting Receivable Customer Number
Accounts Payable Company Number
Inventory Product Number
Customer sales orders Sales Number
Purchase Orders to vendors Order Number
Cash Receipts (checks) from customers Positive Check Number
Cash Disbursement (checks) to vendors Negative Check Number
Employee Payroll Earnings records Payroll Number