ACC 100: Accounting Information System

Students Activity Sheet #9

NAME: SCORE:
SECTION: PERMIT NO.
Coverage:

FIRST PERIODICAL EXAMINATION

General Instructions: Follow the given direction in each part of the exam; Cheating is strictly
prohibited; YOU are not allowed to take a glance on your seatmates’ paper; ERASURE is
considered Wrong; All Activity sheets should be put inside the bag, bags should be put at the
back seats of the classroom; Use only Black Ink Pens; Cellphones are strictly prohibited.

I. WRITE TRUE IF THE STATEMENT IS CORRECT, OTHERWISE WRITE FALSE.

1. Increased control is one of the key advantages of distributed data processing.

2. The flat-file approach is most often associated with so-called legacy systems.
3. In a flat-file system, files are easily shared by users.
4. One of the greatest disadvantages of database systems is that all data is always available to all users.
5. Transaction processing systems convert non-financial transactions into financial transactions.
6. Processing more transactions at a lower unit cost makes batch processing more efficient than real-time
systems.
7. The process of acquiring raw materials is part of the conversion cycle.
8. Directing work-in-process through its various stages of manufacturing is part of the conversion cycle.
9. The top portion of the monthly bill from a credit card company is an example of a turn-around
document.
10. The general journal is used to record recurring transactions that are similar in nature.
11. Document flowcharts are used to represent systems at different levels of detail.
12. Data flow diagrams represent the physical system.
13. Document flowcharts are often used to depict processes that are handled in batches.
14. Program flowcharts depict the type of media being used (paper, magnetic tape, or disks) and terminals.
15. System flowcharts represent the input sources, programs, and output products of a computer system.

II. WRITE THE LETTER OF YOUR ANSWER BEFORE THE NUMBER. ERASURE MEANS WRONG

16. Which system is not part of the expenditure cycle?

a. cash disbursements
b. payroll
c. production planning/control
d. purchases/accounts payable

17. Which system produces information used for inventory valuation, budgeting, cost control,
performance reporting, and make-buy decisions?
a. sales order processing
b. purchases/accounts payable

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 ACC 100: Accounting Information System
Students Activity Sheet #9

c. cash disbursements
d. cost accounting

18. Which of the following is a turn-around document?

a. remittance advice
b. sales order
c. purchase order
d. payroll check

19. The order of the entries made in the ledger is by

a. transaction number
b. account number
c. date
d. user

20. The order of the entries made in the general journal is by

a. date
b. account number
c. user
d. customer number

21. In general a special journal would not be used to record

a. sales
b. cash disbursements
c. depreciation
d. purchases

22. Which account is least likely to have a subsidiary ledger?

a. sales
b. accounts receivable
c. fixed assets
d. inventory

23. Subsidiary ledgers are used in manual accounting environments. What file is comparable to a
subsidiary ledger in a computerized environment?
a. archive file
b. reference file
c. transaction file
d. master file

24. A journal is used in manual accounting environments. What file is comparable to a journal in a
computerized environment?
a. archive file
b. reference file
c. transaction file
d. master file

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 ACC 100: Accounting Information System
Students Activity Sheet #9

25. In a computerized environment, a list of authorized suppliers would be found in the

a. master file
b. transaction file
c. reference file
d. archive file

26. Which of the following is an archive file?

a. an accounts payable subsidiary ledger
b. a cash receipts file
c. a sales journal
d. a file of accounts receivable that have been written off

27. Which document is not a type of source document?

a. a sales order
b. an employee time card
c. a paycheck
d. a sales return receipt

28. The most important purpose of a turn-around document is to

a. serve as a source document
b. inform a customer of the outstanding amount payable
c. provide an audit trail for the external auditor
d. inform the bank of electronic funds deposits

29. Which type of graphical documentation represents systems at different levels of detail?
a. data flow diagram
b. document flowchart
c. system flowchart
d. program flowchart

30. Data flow diagrams

a. depict logical tasks that are being performed, but not who is performing them
b. illustrate the relationship between processes, and the documents that flow between them and
trigger activities
c. represent relationships between key elements of the computer system
d. describe in detail the logic of the process

31. Document flowcharts

a. depict logical tasks that are being performed, but not who is performing them
b. illustrate the relationship between processes, and the documents that flow between them and
trigger activities
c. represent relationships between key elements of the computer system
d. describe the logic of the process

32. When determining the batch size, which consideration is the least important?

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 ACC 100: Accounting Information System
Students Activity Sheet #9

a. achieving economies by grouping together large numbers of transactions

b. complying with legal mandates
c. providing control over the transaction process
d. balancing the trade off between batch size and error detection

33. In contrast to a real-time system, in a batch processing system

a. there is a lag between the time when the economic event occurs and the financial records are
updated
b. relatively more resources are required
c. a greater resource commitment per unit of output is required
d. processing takes place when the economic event occurs

34. In contrast to a batch processing system, in a real-time system

a. a lag occurs between the time of the economic event and when the transaction is recorded
b. relatively fewer hardware, programming, and training resources are required
c. a lesser resource commitment per unit of output is required
d. processing takes place when the economic event occurs

35. The type of transaction most suitable for batch processing is

a. airline reservations
b. credit authorization
c. payroll processing
d. adjustments to perpetual inventory

36. The type of transaction most suitable for real-time processing is

a. recording fixed asset purchases
b. recording interest earned on long-term bonds
c. adjusting prepaid insurance
d. recording a sale on account

37. Which step is not found in batch processing using sequential files?
a. control totals
b. sort runs
c. edit runs
d. immediate feedback of data entry errors

38. Both the revenue and the expenditure cycle can be viewed as having two key parts. These are
a. manual and computerized
b. physical and financial
c. input and output
d. batch and real-time

39. All of the following can provide evidence of an economic event except
a. source document
b. turn-around document
c. master document

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 ACC 100: Accounting Information System
Students Activity Sheet #9

d. product document

40. Which method of processing does not use the destructive update approach?
a. batch processing using direct access files
b. real-time processing
c. batch processing using sequential files
d. all of the above use the destructive update approach

41. Which level of management is responsible for short-term planning and coordination of activities
necessary to accomplish organizational objectives?
a. operations management
b. middle management
c. top management
d. line management

42. Which level of management is responsible for controlling day-to-day operations?

a. top management
b. middle management
c. operations management
d. executive management

43. The ability to achieve the goals of a system depends upon the effective functioning and
harmonious interaction between its subsystems. This is called
a. system decomposition
b. system redundancy
c. backup system
d. subsystem interdependency

44. The value of information for users is determined by all of the following but
a. reliability
b. relevance
c. convenience
d. completeness

45. The revenue cycle consists of

a. one subsystem–order entry
b. two subsystems–sales order processing and cash receipts
c. two subsystems–order entry and inventory control
d. three subsystems–sales order processing, credit authorization, and cash receipts

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