Batangas State University

The National Engineering University

Rizal Avenue Extension, Batangas City
College of Accountancy, Business Economics and International Hospitality Management

ACC 207 Accounting Information Systems

Name:__________________________ Date:______________________
Program/Section:_________________ Score: _____________________

Chapter Activity 2

1. Which statement is NOT true?

a. Business activities begin with the acquisition of materials, property, and labor in exchange for cash.
b. The conversion cycle includes the task of determining raw materials requirements.
c. Manufacturing firms have a conversion cycle but retail firms do not.
d. A payroll check is an example of a product document of the payroll system.

2. A documentation tool that depicts the physical flow of information relating to a particular transaction through an
organization is a
a. system flowchart.
b. program flowchart.
c. decision table.
d. work distribution analysis.
e. systems survey.

3. Sequential file processing will not permit

a. data to be edited on a separate computer run.
b. the use of a database structure.
c. data to be edited in an offline mode.
d. batch processing to be initiated from a terminal.
e. data to be edited on a real-time basis.

4. The production subsystem of the conversion cycle includes all of the following EXCEPT
a. determining raw materials requirements.
b. make or buy decisions on component parts.
c. release of raw materials into production.
d. scheduling the goods to be produced.

5. Which of the following files is a temporary file?

a. transaction file
b. master file
c. reference file
d. none of the above

6. A documentation tool used to represent the logical elements of a system is a(n)

a. programming flowchart.
b. entity relationship diagram.
c. system flowchart.
d. data flow diagram.

7. Which of the following is NOT an advantage of real-time processing files over batch processing?
a. shorter transaction processing time
b. reduction of inventory stocks
c. improved customer service
d. all are advantages

8 Which of the following is true of the relationship between subsidiary ledgers and general ledger accounts?
a. The two contain different and unrelated data.
b. All general ledger accounts have subsidiaries.
c. The relationship between the two provides an audit trail from the financial statements to the source documents.
d. The total of subsidiary ledger accounts usually exceeds the total in the related general ledger account.

9. is the system flowchart symbol for:

a. on-page connector.
b. off-page connector.
c. home base.
d. manual operation.
e. document.

10. A coding scheme in the form of acronyms and other combinations that convey meaning is a(n)
a. sequential code.
b. block code.
c. alphabetic code.
d. mnemonic code.