Question 1

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS. Which of the following is a process that might be studied in management or cost accounting?

Accepted Answer

The process of preparing the master budget is a topic within management and cost accounting, which is one of the areas of study that can be linked to AIS through the five generic elements. Choice A is also related to management and cost accounting, but it is not a process, rather it refers to the components of the master budget. Therefore, the best choice is B.

Question 2

AIS study sometimes involves questions with deterministic answers. Which of the following questions is most likely to have a deterministic answer?

Accepted Answer

The question is asking for a specific and objective method for recording a transaction in the AIS, which can be determined based on accounting principles and standards. The other questions require subjective judgment, interpretation, or evaluation, and may have varying answers depending on the context or perspective.

Question 3

Joe has completed all his accounting coursework and is ready to graduate. In his education, he has learned how to: analyze source documents, use Excel, make journal entries and prepare tax returns. Which generic element of the AIS is missing from that list?

Accepted Answer

Storage is missing from the list provided. Analyzing source documents, using Excel, making journal entries, and preparing tax returns all relate to inputs, processes, and outputs of an Accounting Information System (AIS), but there's no mention of how the information is stored, which is a critical component of AIS.

Question 4

Ethan is an accountant for a small startup business. He is trying to decide if the business should use paper-based journals and ledgers or a spreadsheet to record transactions. He is therefore making a decision about which generic element of the AIS?

Accepted Answer

The answer of Ethan is an accountant for a small...

Question 5

The generic elements of an AIS include inputs and outputs. Which of the following statements about them is most true?

Accepted Answer

If inputs are electronic, outputs can be either paper-based or electronic. There is no requirement for inputs and outputs to be of the same type. The format of inputs and outputs should be chosen based on the preferences and needs of the organization and its stakeholders.

Question 6

Which of the following statements about AIS is most true?

Accepted Answer

AIS (Accounting Information Systems) often deals with complex systems, data analytics, and the integration of information technology with accounting principles. This complexity can lead to situations where answers are not always clear-cut or deterministic, unlike many problems in introductory accounting which tend to have more straightforward, deterministic answers.

Question 7

Sienna used a stack of sales invoices to record journal entries in the AIS. She used those entries and others to prepare an income statement that was later reviewed by her supervisor. The supervisor's review could best be described as which generic element of the AIS?

Accepted Answer

The supervisor's review is part of the internal control element of the AIS because it ensures that the income statement is accurate and reliable. The input element involves capturing data and recording it in the system, which Sienna did with the sales invoices. The output element involves generating reports or other forms of output from the data in the AIS. The process element refers to the procedures and rules that govern how data is processed and used in the system.

Question 8

Sienna used a stack of sales invoices to record journal entries in the AIS. She used those entries and others to prepare an income statement that was later reviewed by her supervisor. All the generic elements of the AIS are represented in Sienna's actions except:

Accepted Answer

The answer of Sienna used a stack of sales invoices...

Question 9

In an auditing course, students develop their professional judgment, learn how to conduct a financial statement audit and learn the various types of audit opinions. Which of the following therefore links AIS with auditing?

Accepted Answer

Communication skills are important for auditors to effectively communicate with their clients and present audit opinions. Additionally, auditors rely heavily on information from the AIS to conduct their financial statement audits. Therefore, both communication skills and the generic elements of the AIS are linked to auditing.

Question 10

In management accounting, students learn to prepare budgets, calculate cost variances and interpret those variances. Which of the following best links those topics with AIS study?

Accepted Answer

The answer of In management accounting, students learn to prepare...

Question 11

Which of the following statements best demonstrates a similarity between AIS and other areas of study in accounting?

Accepted Answer

Communication skills are important in many areas of accounting, not just AIS. While AIS does deal with numbers, this is not a unique characteristic compared to other areas of accounting. Therefore, option B is the best choice as it demonstrates a similarity between AIS and other areas of study in accounting.

Question 12

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files. Which of the following includes three examples of the same file type?

Accepted Answer

Purchases, cash receipts, and sales are examples of transaction files, which record the day-to-day business transactions.

Question 13

Which of the following statements about AIS is most true?

Accepted Answer

The five generic elements of an AIS (data, software, procedures, people, and internal controls) are relevant and can be discussed in other areas of accounting. Options A and B are not true as AIS is closely related to other accounting courses and there are deterministic answers in certain areas of AIS. Therefore, option C is the most true statement.

Question 14

The generic elements of an AIS include processes and storage. Which of the following statements about them is most true?

Accepted Answer

Both processes and storage require internal controls, but the specific controls may be different depending on the nature of the process or storage. For example, the internal controls for a payroll processing system would be different from those for a inventory storage system.

Question 15

The generic structure of most accounting information systems comprises ___ elements.

Accepted Answer

The generic structure of most accounting information systems typically comprises five elements: data input, data storage, data processing, information output, and internal controls.

Question 16

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS. Which of the following pairs a generic element of the AIS with a specific example from financial accounting?

Accepted Answer

Bank reconciliation is a specific example of internal control, which is one of the generic elements of the AIS. Bank reconciliations help ensure the accuracy and completeness of financial records by comparing the bank statement to the company's records and identifying any discrepancies.

Question 17

Which generic element of the AIS is focused on master files, transaction files and junction files?

Accepted Answer

Storage is the generic element of the AIS that is focused on master files, transaction files, and junction files. Inputs refer to the data entered into the system, processes refer to the activities performed on the data, and outputs refer to the results generated by the system.

Question 18

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files. Which of the following includes one example of each file type?

Accepted Answer

The answer of Storage is one generic element of the...

Question 19

Which of the following statements best demonstrates a difference between AIS and other areas of study in accounting?

Accepted Answer

AIS often looks at the "big picture" of accounting, whereas other areas of accounting may focus on specific transactions or financial statements. AIS is concerned with the overall information system that collects, stores, and processes accounting data for decision-making purposes.

Question 20

Which of the following is an example of an AIS output?

Accepted Answer

A statement of cash flows is an example of an AIS output because it provides information about the cash inflows and outflows of an organization, which is a fundamental financial metric. Journal entries, sales transaction files, and general ledger software are all components of an AIS, but they are not outputs in and of themselves.

Quiz 1: Role and Purpose of Accounting Information Systems

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS. Which of the following is a process that might be studied in management or cost accounting?

AIS study sometimes involves questions with deterministic answers. Which of the following questions is most likely to have a deterministic answer?

Joe has completed all his accounting coursework and is ready to graduate. In his education, he has learned how to: analyze source documents, use Excel, make journal entries and prepare tax returns. Which generic element of the AIS is missing from that list?

Ethan is an accountant for a small startup business. He is trying to decide if the business should use paper-based journals and ledgers or a spreadsheet to record transactions. He is therefore making a decision about which generic element of the AIS?

The generic elements of an AIS include inputs and outputs. Which of the following statements about them is most true?

Which of the following statements about AIS is most true?

Sienna used a stack of sales invoices to record journal entries in the AIS. She used those entries and others to prepare an income statement that was later reviewed by her supervisor. The supervisor's review could best be described as which generic element of the AIS?

Sienna used a stack of sales invoices to record journal entries in the AIS. She used those entries and others to prepare an income statement that was later reviewed by her supervisor. All the generic elements of the AIS are represented in Sienna's actions except:

In an auditing course, students develop their professional judgment, learn how to conduct a financial statement audit and learn the various types of audit opinions. Which of the following therefore links AIS with auditing?

In management accounting, students learn to prepare budgets, calculate cost variances and interpret those variances. Which of the following best links those topics with AIS study?

Which of the following statements best demonstrates a similarity between AIS and other areas of study in accounting?

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files. Which of the following includes three examples of the same file type?

Which of the following statements about AIS is most true?

The generic elements of an AIS include processes and storage. Which of the following statements about them is most true?

The generic structure of most accounting information systems comprises ___ elements.

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS. Which of the following pairs a generic element of the AIS with a specific example from financial accounting?

Which generic element of the AIS is focused on master files, transaction files and junction files?

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files. Which of the following includes one example of each file type?

Which of the following statements best demonstrates a difference between AIS and other areas of study in accounting?

Which of the following is an example of an AIS output?