Accounting Information Systems
Exam Preparation Guide
Course Introduction
Accounting Information Systems is a course that explores the intersection of accounting and information technology, focusing on the processes, controls, and systems that organizations use to collect, process, and report financial data. Students will learn about the design, implementation, and management of computerized accounting systems, with particular emphasis on internal controls, transaction cycles, data security, and the use of databases in supporting decision-making. The course also covers contemporary issues such as enterprise resource planning (ERP) systems and the impact of emerging technologies on accounting practices. Through case studies and practical applications, students gain hands-on experience in analyzing and evaluating information systems within the context of accounting functions.
Recommended Textbook
Managerial Accounting v. 2.1 by Kurt Heisinger and Joe Hoyle
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13 Chapters
876 Verified Questions
876 Flashcards
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Chapter 1: What Is Managerial Accounting
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75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/71029
Sample Questions
Q1) Regardless of size,all companies have a chief financial officer (CFO)and a treasurer.
A)True
B)False
Answer: False
Q2) Enterprise Resource Planning (ERP)systems are only used by large publicly held organizations.
A)True
B)False
Answer: False
Q3) The term "public company" refers to:
A)a company whose shares of stock are publicly traded.
B)a company with a treasurer and tax accountant.
C)a company whose shares of stock are privately traded.
D)a company with a small number of shareholders.
E)None of the above.
Answer: A
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Page 3
Chapter 2: How Is Job Costing Used to Track Production Costs
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44 Verified Questions
44 Flashcards
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Sample Questions
Q1) Burton Company purchased $45,000 of raw materials on account.Which one of the following journal entries should Burton record for this transaction?
A)Work in Process Inventory 45,000
Raw Materials Inventory 45,000
B)Raw Materials Inventory 45,000
Accounts Payable 45,000
C)Work in Process Inventory 45,000
Accounts Payable 45,000
D)Accounts Payable 45,000
Raw Materials Inventory 45,000
E)None of the answer choices is correct.
Answer: B
Q2) Which of the following companies would probably not use job order costing?
A)A window washing service.
B)A milk manufacturer.
C)A car repair business.
D)An electrician.
E)None of the answer choices is correct.
Answer: B
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Chapter 3: How Does an Organization Use Activity-Based
Costing to Allocate Overhead Costs
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70 Verified Questions
70 Flashcards
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Sample Questions
Q1) Refer to Exhibit 3-3.Using the direct method of allocating service department costs to production departments,how much of the Technology Support service department costs should be allocated to the Lamination Department?
A)$40,000
B)$160,000
C)$80,000
D)$320,000
E)None of the answer choices is correct.
Answer: C
Q2) Which of the following is not an advantage of using activity-based costing (ABC)?
A)ABC cost information tends to be more accurate compared to traditional costing.
B)Managers can use ABC costing to improve efficiency.
C)ABC allows managers to make better product mix decisions.
D)ABC is typically expensive to implement.
E)None of the answer choices is correct.
Answer: D
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5
Chapter 4: How Is Process Costing Used to Track
Production Costs
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) The following information is available for the current year for Pike company.
\(\begin{array}{ll}
\text { Number of units in beginning WIP Inventory } & 12,000 \quad \text { (30\% complete) } \\
\text { Number of units started in the current period } & 160,000 \\
\text { Number of units in the ending WIP Inventory } & 18,000 \quad \text { (70\% complete) }
\end{array}\)
If Pike Company uses the weighted average process costing method,what is the total equivalent completed units transferred out and in WIP Inventory?
A)166,000
B)190,000
C)166,600
D)142,000
E)None of the answer choices is correct.
Q2) When using process costing,only one companywide Work-in-Process account is allowed for tracking product costs.
A)True
B)False
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Chapter 5: How Do Organizations Identify Cost Behavior
Patterns
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68 Flashcards
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Sample Questions
Q1) The contribution margin income statement is used for internal reporting purposes and presents the fixed and variable components of cost information.
A)True
B)False
Q2) The R-squared measure is used to measure the percent of variance in the dependent variable that is explained by the independent variable.
A)True
B)False
Q3) Which of the following approaches for estimating fixed and variable costs using historical information fits a straight line to a set of data points?
A)Scattergraph method and regression analysis
B)Scattergraph method and account analysis
C)High-low method and account analysis
D)Scattergraph method and high-low method
E)None of the answer choices is correct.
Q4) Unusual data points are often called outliers.
A)True
B)False
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Chapter 6: How Is Cost-Volume-Profit Analysis Used for Decision Making
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Sample Questions
Q1) Refer to Exhibit 6-8.Calculate Perry's operating profit assuming the company uses variable costing.
A)$271,000
B)$286,000
C)$396,000
D)$370,000
E)None of the answer choices is correct.
Q2) Which of the following companies would be most likely to use the break-even point expressed in units?
A)An accounting firm
B)A law firm
C)An electrician
D)An automobile dealer
E)None of the answer choices is correct.
Q3) A decrease in variable costs will reduce the margin of safety.
A)True
B)False
Q4) Sensitivity analysis is also called "what-if analysis."
A)True
B)False
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Chapter 7: How Are Relevant Revenues and Costs Used to
Make Decisions
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76 Flashcards
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Sample Questions
Q1) Refer to Exhibit 7-4.If allocated fixed costs are based on sales revenue for each product line as a proportion of total sales revenue,what is the total profit or (loss)for all product lines?
A)$250,000
B)$164,000
C)$126,000
D)$36,000
E)None of the answer choices is correct.
Q2) Refer to Exhibit 7-9.If the sales value method is used to allocate the $12 in joint costs,what is the total amount that will be allocated to both products?
A)$12
B)$3
C)$10
D)$9
E)None of the answer choices is correct.
Q3) Differential revenues and costs are also called incremental revenues and costs.
A)True
B)False
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Chapter 8: How Is Capital Budgeting Used to Make Decisions
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Sample Questions
Q1) Lanyard Company is considering an investment that will generate $600,000 in cash inflows per year for 7 years and has $240,000 of cash outflows for the same period (before income taxes).The cost of the asset is $700,000 and it will be depreciated using straight-line depreciation over the 7 year life.The asset has no salvage value.Lanyard's tax rate is 40%.The cost of capital is 18%.
Factors: Present Value af an Annuity \(( r = 18 \% )\)
\(\begin{array} { l l } \text { Year 1 } & 0.8475 \\ \text { Year 2 } & 1.5656 \\ \text { Year 3 } & 2.1743 \\ \text { Year 4 } & 2.6901 \\ \text { Year 5 } & 3.1272 \\ \text { Year 6 } & 3.4976 \\ \text { Year 7 } & 3.8115 \end{array}\)
What is the net present value of this investment (rounded to the nearest dollar)?
A)$275,744
B)($105,406)
C)$504,434
D)$123,284
E)None of the answer choices is correct.
Q2) Working capital is defined as current assets plus current liabilities.
A)True B)False
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Chapter 9: How Are Operating Budgets Created
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Sample Questions
Q1) Cathy's Cookies produces cookies for resale at local grocery stores.The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year,which ends December 31.Prior year quarterly sales were as follows (1 unit = 1 batch):
\(\begin{array}{ll}
\text { First quarter: } & 8,000 \text { units } \\
\text { Second quarter: } & 9,600 \text { units } \\
\text { Third quarter: } & 12,000 \text { units } \\
\text { Fourth quarter: } & 10,400 \text { units } \end{array}\)
Unit sales are expected to increase 20 percent,and each unit is expected to sell for $5.Management prefers to maintain ending finished goods inventory equal to 15 percent of next quarter's sales.Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 2,000 units.
(1)Prepare a sales budget for Cathy's Cookies.
(2)Prepare a production budget for Cathy's Cookies.
Q2) Companies generally obtain sales forecasts from many different sources.
A)True
B)False
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Chapter 10: How Do Managers Evaluate Performance Using Cost Variance Analysis
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) If a company has a favorable materials quantity variance of $3,300,the journal entry to record the use of direct materials in production along with this related quantity variance would include:
A)a credit to Materials Quantity Variance.
B)a credit to Materials Price Variance.
C)a debit to Materials Quantity Variance.
D)a debit to Materials Price Variance.
E)None of the answer choices is correct.
Q2) Refer to Exhibit 10-3.Based on this information,what is the direct labor rate variance?
A)$3,600 unfavorable
B)$3,600 favorable
C)$3,300 favorable
D)$3,300 unfavorable
E)None of the answer choices is correct.
Q3) Standard cost typically refers to costs per unit for direct materials,direct labor,and variable overhead.
A)True
B)False
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Chapter 11: How Do Managers Evaluate Performance in
Decentralized Organizations
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63 Verified Questions
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Sample Questions
Q1) Refer to Exhibit 11-2.Using the segmented income statements,what is the profit margin ratio for the Refrigerator Division (to the nearest hundredth of a percent)?
A)22.44%
B)40.80%
C)58.00%
D)42.00%
E)None of the answer choices is correct.
Q2) All of the following are true about Economic Value Added (EVA)except:
A)EVA requires compliance with GAAP.
B)EVA was trademarked.
C)EVA uses operating income after taxes.
D)EVA does not require compliance with GAAP.
E)None of the answer choices is correct.
Q3) An advantage of return on investment (ROI)as a performance measure is that:
A)operating assets available at year-end is used in the denominator.
B)it is calculated the same way by different organizations.
C)net income is used in the numerator.
D)it includes the use of assets to evaluate performance.
E)None of the answer choices is correct.
Page 13
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Chapter 12: How Is the Statement of Cash Flows Prepared and Used
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Sample Questions
Q1) Cash payments to reduce long-term debt are included in the operating activities section of the statement of cash flows.
A)True
B)False
Q2) Refer to Exhibit 12-1.Which of these items would appear in the investing activities section of the statement of cash flows?
A)1 & 4
B)2 & 5
C)3
D)2,4,& 5
E)None of the answer choices is correct.
Q3) The direct method of preparing a statement of cash flows results in the same cash provided by operating activities than the indirect method.
A)True
B)False
Q4) Most companies prefer to use the indirect method when preparing a statement of cash flows.
A)True
B)False
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Chapter 13: How Do Managers Use Financial and
Nonfinancial Performance Measures
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Sample Questions
Q1) A trend percentage is calculated as the current year divided by the base year.
A)True
B)False
Q2) A current ratio of greater than 1.0 would indicate that current assets exceed current liabilities.
A)True
B)False
Q3) All of the following ratios are used to evaluate short-term liquidity except:
A)the receivable turnover ratio.
B)the current ratio.
C)the inventory turnover ratio.
D)the gross margin ratio.
E)None of the answer choices is correct.
Q4) Refer to Exhibit 13-1.What is the return on assets for 2017 (rounded to the nearest tenth of a percent)?
A)19.4%
B)51.7%
C)19.8%
D)197.8%
E)None of the answer choices is correct.
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