Accounting Information Systems
Study Guide Questions
Course Introduction
Accounting Information Systems explores the integration of information technology with accounting processes to support effective decision-making in organizations. This course covers the design, implementation, and management of systems that collect, store, process, and report financial data. Students will study topics such as internal controls, database management, systems development life cycle, and the role of accounting software in organizations. Emphasis is placed on understanding how accounting information systems enhance business operations, ensure data integrity, and contribute to regulatory compliance.
Recommended Textbook
Managerial Accounting 3rd Edition by Charles E. Davis
Available Study Resources on Quizplus
17 Chapters
2529 Verified Questions
2529 Flashcards
Source URL: https://quizplus.com/study-set/3513
Page 2
Chapter 1: Accounting As a Tool for Management
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/69802
Sample Questions
Q1) For the product differentiation strategy,companies will want information on quality,such as defect rates,percentage of on-time deliveries,and customer satisfaction.
A)True
B)False
Answer: True
Q2) A company that wants to be successful needs to know
A)what it wants to accomplish.
B)how it is going to achieve it.
C)both what it wants to accomplish and how it is going to achieve it.
D)neither what it wants to accomplish nor how it is going to achieve it.
Answer: C
Q3) An example of an external user is a
A)managerial accountant.
B)Vice-President of Marketing.
C)potential Investor.
D)Payroll Manager.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Cost Behavior and Cost Estimation
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/69801
Sample Questions
Q1) A traditional GAAP income statement does not help managers predict the financial results of their decisions because the format of the statement is based on cost function rather than cost behavior.Which of the following is not classified as a cost behavior?
A)Product
B)Fixed
C)Variable
D)Fixed and Variable
Answer: A
Q2) The high-low method differs from the scattergraph in that the high-low method
A)is simple to prepare and interpret whereas the scattergraph requires the use of statistical techniques.
B)is less costly than the scattergraph method.
C)uses a statistical technique to estimate the cost components.
D)requires only two data points - the lowest point of activity and the highest point of activity.
Answer: D
Q3) Express the relationship between total cost TC,variable cost per
Answer: TC = VCX + FC
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Cost-Volume-Profit Analysis and Pricing
Decisions
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/69800
Sample Questions
Q1) Fixed costs are $600,000 and the variable costs are 75% of the
A)$1,400,000
B)$1,800,000
C)$2,400,000
D)$800,000
Answer: C
Q2) Cost-plus pricing adds an amount to
A)The cost of the product or service to cover operating costs and contribute to its profit.
B)Variable and fixed costs to cover overhead.
C)The sales price to cover unexpected costs.
D)Contribution margin to cover fixed costs.
Answer: A
Q3) Contribution margin is the amount
A)That is available to cover fixed costs and provide a profit.
B)Of total variable costs and total fixed costs.
C)Sales less cost of goods sold.
D)Of fixed costs.
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Product Costs and Job Order Costing
Available Study Resources on Quizplus for this Chatper
189 Verified Questions
189 Flashcards
Source URL: https://quizplus.com/quiz/69799
Sample Questions
Q1) When inventory is sold to customers,its cost is removed from work-in-process and transferred to cost of goods sold.
A)True
B)False
Q2) At what point are manufacturing costs expensed?
A)When the finished goods are sold
B)When the costs are transferred out of Work in Process
C)When the production process begins
D)At the end of the accounting period
Q3) A zero balance in the manufacturing overhead account indicates that actual overhead and applied overhead cost are equal,so that all inventory is reflected at actual cost.
A)True
B)False
Q4) To adjust for underapplied overhead,the journal entry includes a debit to Cost of Goods Sold and a credit to Manufacturing Overhead Control.
A)True
B)False
Q5) Predetermined overhead rates and manufacturing overhead application
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Planning and Forecasting
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/69798
Sample Questions
Q1) The predetermined overhead rate is calculated as Budgeted Total Manufacturing Overhead divided by Budgeted Activity Level of Application Base.
A)True
B)False
Q2) Starfish Industries' sales budget for the first quarter of the upcoming year shows budgeted sales of $325,000,$350,000,and $310,000 in January,February,and March,respectively.All sales are made on credit.The cash receipts budget for March shows total cash receipts equal to $296,780.Starfish grants a discount to customers who pay within 10 days of the invoice.Starfish collects 60% of sales within the discount period,20% in the month of sale but outside the discount period,15% in the month following sale and the remainder is uncollectible.What is the discount offered by Starfish,and what are the cash collections in March associated with March sales?
A)2%; $244,280
B)1.5%; $245,210
C)2%; $182,280
D)1.5%; $183,210
Q3) To prepare the sales budget,multiply the forecasted sales
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Performance Evaluation: Variance Analysis
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/69797
Sample Questions
Q1) Adler Industries uses a standard cost system.Adler has established the following standards for one
Q2) When the production manager is investigating and understanding the cause of the variable overhead spending variance relating to indirect materials,he will most likely want to talk to the
A)inventory manager.
B)purchasing agent.
C)design engineer.
D)both the inventory manager and the purchasing agent.
Q3) Variances are labeled as
A)avoidable or unavoidable.
B)favorable or unfavorable.
C)positive or negative.
D)committed or discretionary.
Q4) Which of the following is not a factor that could influence worker productivity?
A)The level of skill and training workers possess will affect their productivity.
B)The amount of automation used in the production process.
C)Workers' level of fatigue will affect the direct labor efficiency variance.
D)The quality of direct material used.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Activity-Based Costing and Activity Based Management
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/69796
Sample Questions
Q1) Sampson Company manufactures two products,plain and complex.The company has estimated its overhead in the order-processing department to be $480,000.The company produces 50,000 plain and 80,000 complex each year.Plain production requires 25,000 machine hours,complex production requires 50,000 machine hours.The company places raw materials orders 10 times per month,2 times for raw materials for plain and the remainder for raw materials for complex.How much of the order processing overhead should be allocated to complex?
A)$240,000
B)$320,000
C)$295,386
D)$384,000
Q2) Assume that activity cost is $93,000,predetermined total overhead is $120,000,actual overhead is $98,000,and the company has three product lines,the activity rate is
A)$32,667 per product line.
B)$31,000 per product line.
C)$40,000 per product line.
D)$50,000 per product line.
Q3) What is an activity cost pool and how are activity cost pool rates calculated?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Using Accounting Information to Make Managerial Decisions
Available Study Resources on Quizplus for this Chatper
188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/69795
Sample Questions
Q1) The costs that should be included in an outsourcing decision are the A)fixed costs.
B)nonrecurring costs.
C)sunk costs.
D)relevant costs.
Q2) Managers becoming overwhelmed by the huge amount of information available to them is referred to as
A)unavoidable overload.
B)information overload.
C)phenomenon overload.
D)irrelevance overload.
Q3) List the two criteria information meet to be considered relevant to decision making and explain the difference between sunk cost and opport
Q4) The variable costs associated with the segment's sales are always A)sunk.
B)avoidable.
C)unavoidable.
D)irrelevant.
Page 10
Q5) Paris Manufacturing Company Inc.uses 400
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Capital Budgeting
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/69794
Sample Questions
Q1) Marple Industries is evaluating a capital project with a net initial investment of $120,000.The project is expected to generate net cash inflows of $15,000 each year.Calculate the payback period for the project.
Q2) ABC Company is considering the purchase of a new piece of equipment costing $138,875.The equipment has a 7-year useful life and is expected to generate $24,000 in annual cost savings.ABC has a 4% required rate of return.
Required:
a.What is the internal rate of return for the equipment round to nearest factor b.Should ABC purchase the new equipment? Why or Why not?
Unit 9-3,
Q3) Mauldin Welding Shop is considering the purchase of new high-tech welding equipment.If the equipment is purchased,Mauldin will have to incur $2,000 to install the equipment and pay a technician to adjust the computer settings.In determining the cash flows associated with the new equipment,the $2,000 payment will be
A)A cash outflow
B)A cash inflow
C)An opportunity cost
D)Not relevant
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Decentralizing and Performance Evaluation
Available Study Resources on Quizplus for this Chatper
194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/69793
Sample Questions
Q1) Which of the following is the formula for calculating residual income?
A)Operating income - average assets
B)Operating income plus interest and depreciation expense
C)Operating income - average assets x required minimum rate of return
D)None of these answer choices are correct.
Q2) Winek Company's Tackle division has collected the following information: Normal selling price $18 per box
Variable product costs 10.25 per box
Fixed product costs 3.50 per box
Variable selling and administrative costs 2.75 per box
The Tackle division has no excess capacity.Winek's Little Fisherman division sells completed fishing kits for children and wants to purchase 100,000 tackle boxes.The minimum transfer price would be
A)$18.00
B)$16.50
C)$13.00
D)$8.00
Q3) What is the minimum acceptable transfer price for a division that has excess operating capacity?
Q4) What is EVA and how is it calculated?
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Performance Evaluation Revisited: a Balanced Approach
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/69792
Sample Questions
Q1) Which of the following is a measure that relates to the financial perspective?
A)Revenue growth
B)Market share
C)Customer profitability
D)Defect rate
Q2) To balance the scorecard,organizations should select all of the following except
A)Leading measures.
B)Dashboard measures.
C)Lagging measures.
D)Qualitative measures.
Q3) When using the balanced scorecard to monitor performance,the internal business processes perspective answers which of the following questions?
A)Are we developing employees and providing technologies that facilitate change and improvement?
B)Are we improving our business processes in order to deliver maximum value to our customers?
C)Are we meeting our stakeholders' expectations?
D)Are we growing in a manner to be competitive in the industry?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/69791
Sample Questions
Q1) Assume you have prepared a horizontal analysis of your company's balance sheet and income statement and have found some account balances you believe need to be investigated.What would be a cause of the following changes in account balances?
a.Decrease in accrued salaries
b.Sales increased by a greater percentage than cost of goods sold
c.Accounts receivable decreased
d.Significant drop in long-term debt
e.Decrease in retained earnings
Unit 12-1,
Q2) Rather than looking only at the balances reported on the financial statements,it is helpful to look at the changes in the account balances over time.This is called
A)Common analysis.
B)Vertical analysis.
C)Horizontal analysis.
D)Benchmarking
Q3) Foreman Outfitters,a retail store of camping supplies,has sales of $300,000 and cost of goods sold of $210,000.Beginning inventory was $20,000 and ending inventory was $12,000.What is the company's average days to sell inventory?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/69790
Sample Questions
Q1) On January 1st of the current year Bratton Manufacturing borrowed $1,000,000 from the First National Bank.On June 30<sup>st</sup> and December 31<sup>st</sup> Bratton made payments of $10,000 each.How will these transactions be reported in the statement of cash flows?
A)$1,000,000 source of cash and $20,000 use of cash,both shown in the financing section
B)$1,000,000 source of cash in the financing section and $20,000 use of cash in the operating section as a use of cash
C)$1,000,000 source of cash in the investing section and $20,000 use of cash in the operating section
D)$1,000,000 source of cash and $20,000 use of cash,both shown in the investing section
Q2) The two approaches to reporting cash flows provided by operating activities are the A)Direct and indirect methods
B)The basic and standard methods
C)The gross margin and contribution margin methods
D)The liquidity and profitability methods
Q3) What is the basic form of the statement of cash flows?
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Topic Focus: Process Costing
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/69789
Sample Questions
Q1) Conversion cost consist of
A)direct materials and direct labor.
B)indirect materials and direct materials.
C)direct labor and manufacturing overhead.
D)direct materials and manufacturing overhead.
Q2) All of the following types of inventory accounts are used in a process costing system except
A)raw materials.
B)work in process.
C)finished goods.
D)cost of goods sold.
Q3) At the end of January,Monroe Industries had completed 65,000
A)1,600
B)6,400
C)4,800
D)8,000
Q4) The inventories used in a process costing system include work-in-process and finished goods,but not raw materials.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Topic Focus Variable and Absorption Costing
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/69788
Sample Questions
Q1) The underlying principle that absorption costing satisfies is the A)matching principle.
B)relevance principle.
C)historical cost principle.
D)understandability principle.
Q2) In absorption costing,all manufacturing costs are considered to be
A)product costs.
B)period costs.
C)variable costs.
D)mixed costs.
Q3) What managerial behavior does variable costing render ineffective?
Q4) When the
A)operating income is higher under absorption costing than under variable costing.
B)operating income is lower under absorption costing than under variable costing.
C)operating is the same under absorption costing and variable costing.
D)cannot be determined with the information given.
Q5) The following table shows Jackson Company's inventory balances,in
Q6) Describe the format for a variable costing income statement.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Topic Focus Standard Costing Systems
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/69787
Sample Questions
Q1) A costing system where all product costs are recorded at standard cost while the products are being made is referred to as
A)Normal costing
B)Variable costing
C)Full costing
D)Standard costing
Q2) Answer the following questions regarding costing systems.
a.What is the difference between a normal costing system and a standard costing system?
b.What adjustments are required at the end of each period for each?
c.What is an advantage of standard costing?
d.Are inventory and costs of goods sold accounts reported on financial statements at actual cost or standard cost?
Q3) Manufacturing Overhead is a temporary account that must have a zero balance at the end of the accounting period.
A)True
B)False
Q4) Haven Industries transferred 5,500
Q5) Haven Industries purchased 1,000
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Topic Focus Customer Profitability
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/69786
Sample Questions
Q1) Which of the following is not an example of how a company can help a customer become a profitable customer?
A)Encourage them to order in larger quantities to reduce shipping charges
B)Encourage them to order through the cheaper internet sales channel rather than the more costly catalog sales channel
C)Encourage them to delay payment on their account so as to forgo any sales discount
D)Ask them to pay all shipping charges
Q2) Customer net profit divides customer net profit by customer revenues.
A)True
B)False
Q3) When a manager drops an unprofitable customer,a company's total sales revenue and overall company profit will decrease.
A)True
B)False
Q4) Raising prices for unprofitable customers is a reflection of the cost of doing business with them.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19