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AIS 1


QUESTION 1

1. Within an AIS, which is not an objective of internal controls? to safeguard organizational assets to ensure that information is reliable and verifiable to ensure that

activities are performed efficiently to ensure that all accounts are accurate to the cent
5 points

QUESTION 2

1. The main area of weakness in the practical application of the separation of duties is poor supervision poor documentation when collusion between employees occurs inadequate training of employees
5 points

QUESTION 3

1. Computers store data by organizing smaller units of data into larger units, which have meaning to users. Data values that are stored in a physical space are called a file database field record
5 points

QUESTION 4

1. The efficiency of recording numerous business transactions can be best improved by the use of prenumbered source documents posting references specialized journals segregation of duties
5 points

QUESTION 5

1. In transaction processing, generally which activity comes first? capturing data on source documents recording data in a journal

posting items to special journals posting data in a ledger
5 points

QUESTION 6

1. Basic data storage concepts define both entities and attributes. An entity is something about which information is stored. Which item below would not be considered an entity? a customer address an employee an inventory item a customer
5 points

QUESTION 7

1. Source documents generally help to improve accuracy in transaction processing because they provide directions and steps for completing the form standard information is preprinted on the document. they specify which information to collect due to their structure All of the above are correct.
5 points

QUESTION 8

1. Which of the following documents would be found in the expenditure cycle? purchase order time card journal voucher delivery ticket
5 points

QUESTION 9

1. Which of the following is not a transaction cycle? expenditure general ledger and reporting revenue human resources
5 points

QUESTION 10

1. Certain documents or forms are generated and/or processed with each transaction cycle. The issuing of a purchase order is part of which transaction cycle? the payroll (or human resources) cycle the production cycle the expenditure cycle the revenue cycle
5 points

QUESTION 11

1. Which of the following is an example of a strategic planning decision? budgeting setting financial and accounting policies developing human resource practices conducting a performance evaluation
5 points

QUESTION 12

1. Within the value chain conceptual framework, AIS is shown as a support activity. The AIS is of value to an organization when it provides accurate and timely information to help support the five primary value chain activities. When the AIS provides information in a timely and accurate manner, it stands as an example of improving the quality and reducing the costs of products or services improved decision making improving efficiency the sharing of knowledge and expertise
5 points

QUESTION 13

1. Which of the following is not an example of a common activity in an AIS? buy and pay for goods and services summarize and report results to interested parties sell goods and services and collect cash the marketing department keeps a record of its sales calls
5 points

QUESTION 14

1. An AIS must be able to perform which of the following tasks?

provide adequate controls collect transaction data process the data all of the above
5 points

QUESTION 15

1. An analysis conducted by the Institute of Management Accountants shows that the most important activities performed by corporate accountants relate to customer and product profitability process improvement internal consulting accounting systems and financial reporting
5 points

QUESTION 16

1. The value chain concept is composed of two types of activities known as primary and secondary primary and support support and value technology and support
5 points

QUESTION 17

1. Data must be converted into information to be considered useful and meaningful for decisionmaking. There are six characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of relevancy timeliness reliability understandability
5 points

QUESTION 18

1. A A good example of how an AIS is used to share knowledge within an organization is the use of an expert system to help staff identify the relevant experts who can help with a

particular client. the use of laptop computers to access a network for messaging worldwide the use of point-of-sale data to determine hot-selling items the monitoring of production equipment to watch for defects
5 points

QUESTION 19

1. D The objective of the majority of organizations is to provide value to their customers. The activities that support such an objective can be conceptualized as forming a value chain. Within this value chain, logistics plays an important role. Logistics is both inbound and outbound in nature. An example of inbound logistics would consist of the activities that transform inputs into final products or services the activities that provide postsale support to customers. the activities that help customers to buy the organization's products or services the activities that consist of receiving, storing, and distributing the materials used as inputs by the organization to create goods and/or services it sells
5 points

QUESTION 20

1. C An accounting information system (AIS) in part consists of procedures and computers internal controls and accounting records people, procedures, data, software and information technology infrastructure people and programs


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