Question 1

The flexibility principle prescribes that an accounting information system conform with a company's activities,personnel,and structure and adapt to a company's unique characteristics.

Accepted Answer

False

Question 2

The cost-benefit principle prescribes that the benefits from an activity in an accounting information system outweigh the costs of that activity.

Accepted Answer

The cost-benefit principle states that if the benefits of a particular activity outweigh its costs, then that activity should be pursued.

Question 3

Auditors rely on accounting system databases when they audit financial statements and a company's controls.

Accepted Answer

Auditors use accounting system databases to access financial data and test the effectiveness of a company's internal controls. Without access to these databases, it would be difficult for auditors to obtain the necessary information to perform their duties.

Question 4

With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.

Accepted Answer

Despite advanced technology, it is still important to trace information back to its source to ensure accuracy and prevent errors in accounting information system. Even advanced technology can't replace the importance of establishing the authenticity and reliability of data sources.

Question 5

A sales journal is used to record cash sales.

Accepted Answer

The answer of A sales journal is used to record...

Question 6

Accounting information processes are structured to eliminate the need for professional judgment.

Accepted Answer

Accounting information processes involve a combination of rules and professional judgment to ensure accurate and reliable financial information. While rules and procedures provide structure and consistency, professional judgment is needed to account for unique or unusual transactions and events.

Question 7

The compatibility principle requires that an accounting system report useful,understandable,timely,and pertinent information for effective decision making.

Accepted Answer

The answer of The compatibility principle requires that an accounting...

Question 8

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

Accepted Answer

While accounting information systems are designed to be highly accurate and user-friendly, decision makers still need a basic understanding of how the systems work in order to interpret the information and make informed decisions. A lack of understanding can lead to misinterpretation of data and potential errors in decision making.

Question 9

A special journal is used to record and post transactions of a similar type.

Accepted Answer

A special journal, also known as a subsidiary journal, is used to record and post transactions of a similar type such as sales journal, purchases journal, cash receipts journal, and cash disbursements journal. This helps to simplify and speed up the recording process as well as provide better organization of the transactions.

Question 10

Accounting information systems collect and process data from transactions and events,organize them in useful reports,and communicate results to decision makers.

Accepted Answer

This statement accurately describes the purpose and function of accounting information systems.

Question 11

Due to electronic files and Web communications,source documents are no longer required.

Accepted Answer

While electronic files and Web communications have made some source documents less necessary, many legal and financial transactions still require physical or digital copies of original source documents. Additionally, some industries (such as healthcare) have regulations that require the retention of certain source documents for a specified period of time.

Question 12

The five basic principles of accounting information systems are control,competency,compatibility,flexibility and cost-benefit.

Accepted Answer

The answer of The five basic principles of accounting information...

Question 13

Internal controls include policies to direct operations toward common goals,procedures to ensure reliable financial reports,safeguards to protect company assets and methods to achieve compliance with laws and regulations.

Accepted Answer

Internal controls do include policies to direct operations, procedures for reliable financial reporting, safeguards for assets, and methods for achieving compliance with laws and regulations.

Question 14

Accurate source documents are crucial to accounting systems to limit the possibility of entering faulty data into the system.

Accepted Answer

Accurate source documents ensure that the data entered into the accounting system is correct, which is essential for financial reporting and decision-making purposes. Incorrect data entry can lead to errors in financial statements and misinterpretations of financial performance. Therefore, accurate source documents play a critical role in maintaining the integrity of the accounting system.

Question 15

Input devices include journal entries,keyboards,scanners,and modems.

Accepted Answer

Input devices are devices that allow users to input data or information into a computer system. Some examples of input devices include journal entries (manually writing information into a system), keyboards, scanners (which can scan paper documents and convert them into digital format), and modems (which allow for communication between devices). Therefore, the statement is true.

Question 16

With on-line systems,all information storage should be off-line to protect the data.

Accepted Answer

With on-line systems, information storage should be on-line to ensure accessibility and real-time updates. However, proper security measures should be in place to protect the data from unauthorized access or breach.

Question 17

Accounting information systems are designed to capture information about a company's transactions and events and to provide output including financial,managerial,and tax reports.

Accepted Answer

Accounting information systems are specifically designed to capture and process a company's transactions and events, and to produce reports including financial statements, managerial reports, and tax filings.

Question 18

The purchases journal is used to record cash purchases of merchandise.

Accepted Answer

The purchases journal is used to record credit purchases of merchandise, not cash purchases. The cash payments journal is used to record cash purchases.

Question 19

The general journal is used for transactions not covered by special journals and for adjusting,closing,and correcting entries.

Accepted Answer

The general journal is used for transactions not covered by special journals such as sales or cash receipts. It is also used for adjusting, closing, and correcting entries.

Question 20

Input devices are the means to make accounting information available to users.

Accepted Answer

The answer of Input devices are the means to make...

Quiz 7: Accounting Information Systems