Information Systems for Accountants
Exam Practice Tests
Course Introduction
Information Systems for Accountants explores the fundamental concepts and practical applications of information systems within the accounting profession. This course examines the role of accounting information systems (AIS) in collecting, processing, and communicating financial data, ensuring data security, and supporting decision-making. Students will learn about system components, software applications, internal controls, auditing procedures, and the impact of emerging technologies such as cloud computing, big data, and blockchain on the accounting field. Emphasis is placed on understanding how technology enhances accuracy, efficiency, and compliance in financial reporting and audits, preparing students to effectively utilize and evaluate information systems in their future careers.
Recommended Textbook
Accounting Information Systems A Practitioner Emphasis 7th Edition by Cynthia D.
Available Study Resources on Quizplus
15 Chapters
1075 Verified Questions
1075 Flashcards
Source URL: https://quizplus.com/study-set/3554
Page 2
Heagy
Chapter 1: Significance of Accounting Information Systems
and the Accountants Role
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/70586
Sample Questions
Q1) Which of the following statements about a manual accounting system is not correct?
A) Very little data beyond the basic elements are included.
B) Data are stored in only one location.
C) Errors and inconsistencies are common.
D) Data are processed for external reporting.
Answer: B
Q2) Who is most responsible for operation of the accounting system in an organization?
A) The controller and the chief executive officer
B) The controller and the chief financial officer
C) The controller and the board of directors
D) A and B, but not C
E) B and C, but not A
B
Answer: B
Q3) What are the major components of a computerized accounting system?
Answer: Hardware, software, and people
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Accounting Systems Documentation
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/70579
Sample Questions
Q1) In a systems flowchart, a rectangle represents a process, or operation.
A)True
B)False
Answer: True
Q2) Which type of documentation shows the flow of data through various stages of processing without regard for the logic of the individual processing activities?
A) System flowchart
B) Hierarchical block diagram
C) Structure chart
D) Data flow diagram
Answer: D
Q3) What is a disadvantage of a data flow diagram?
A) Inability to show relationships among subsystems
B) Poor communications tool
C) Difficulty of understanding for nontechnical personnel
D) Inability to represent points of detail
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Essential Elements and Basic Activities of Accounting Systems
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/70578
Sample Questions
Q1) A ledger lists transactions in chronological order and is considered "the book of original entry."
A)True
B)False
Answer: False
Q2) When preparing a customer invoice, which document could be used as the source for the ship date?
A) Bill of lading
B) Receiving report
C) Vendor invoice
D) Purchase order
Answer: A
Q3) Which of the following defines sales (customer) invoice?
A) A document that captures the data about a sale to a customer
B) A document that captures the data about a purchase from a vendor
C) A document used to bill a vendor
D) A written contract between a shipper and a carrier
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Data Flows, Activities, and Structure of Accounting Systems
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/70577
Sample Questions
Q1) Name one accounting system activity other than input data.
Q2) What are information formats called?
A) Paper reports
B) Activity requirements
C) General ledger summaries
D) Forms
Q3) Which of the following is necessary for printing of the sales journal?
A) Open customer invoice file and customer master file
B) Customer master file and cash receipts transaction file
C) Customer master file and sales transaction file
D) Sales transaction file and open customer invoice file
Q4) It is possible for a transaction to be initiated by programmed instructions in a computer program.
A)True B)False
Q5) Each of the accounting subsystems, for example, purchase order processing, receiving, vendor invoicing, cash disbursements, is a stand-alone system.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Reporting Process, Coding Methods, and Audit Trails
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/70576
Sample Questions
Q1) A reference identifier assigns meaning to various positions in a code.
A)True
B)False
Q2) The meaning of comparative reporting is that only data reflecting a significant deviation from expected, budgeted, or normal should be reported to managers.
A)True
B)False
Q3) Numbers that should be used for unique identifiers for coding an audit trail are prenumbered documents that represent the initiation of a transaction and numbers of externally generated documents.
A)True
B)False
Q4) Of the following business organizations, which one requires daily financial statement preparation?
A) An oil drilling rig manufacturer
B) A bank
C) A tool manufacturing company
D) A video store
Page 7
Q5) Explain the meaning of exception reporting.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Internal Control and Risk Assessment
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/70575
Sample Questions
Q1) One of the basic factors of the internal environment is the board of directors or audit committee.
A)True
B)False
Q2) Describe 4 requirements pertaining to Sarbanes-Oxley.
Q3) Provide some examples of risks to accounting information systems.
Q4) Which of the following is not one of the three categories of entity objectives?
A) Compliance with applicable laws and regulations
B) Effectiveness and efficiency of operations
C) Human resource policies and practices
D) Quality of information
E) Organizational strategy C
Q5) One factor of the internal environment is the board of directors.
A)True
B)False
Q6) Which of the following is not a responsibility of an audit committee?
A) Recommending an external auditor
B) Attesting to the fairness of the financial statements
C) Reviewing significant financial information
Page 8
D) Seeing that an effective internal control is maintained
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Control Activities
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/70574
Sample Questions
Q1) General controls relate to the flow of data in and among individual applications, such as customer billing and cash receipts.
A)True
B)False
Q2) Physical controls protect assets from theft and destruction.
A)True
B)False
Q3) What are controls that concern all computer activities?
A) General controls.
B) Application controls.
C) Change controls.
D) IT audit controls.
Q4) A current trend with respect to the placement of controls is a movement away from controls programmed into computer software toward controls in human operating procedures.
A)True
B)False
Q5) Define computer forensics. Include in your explanation a list of 5 of the activities that computer forensic experts can do.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: The Financial Process
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/70573
Sample Questions
Q1) Accounting information system software packages are usually composed of modules, with one or more modules composing a part of related accounting information system processes.
A)True
B)False
Q2) Define the following: chart of accounts, credit rating, FOB point, picking list.
Q3) Describe inactive accounts and explain why it is important to retain inactive accounts in the general ledger.
Q4) The chart of accounts is the listing of account names stored in the financial process along with codes assigned to the accounts.
A)True
B)False
Q5) List and explain three examples of information processing control activities in the financial process.
Q6) Define "soft" and "hard" closings. Be sure to indicate the DIFFERENCE between the two.
Q7) Describe some of the differences between GAAP and IFRS.
Q8) Why is the time-sensitive entries feature useful?
Page 10
Q9) List the types of entries recorded in the financial process.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: The Revenue Process
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/70572
Sample Questions
Q1) What are the principal events to be recorded in the revenue process?
Q2) The primary purpose of the revenue process is to summarize data and report on the overall financial progress and status of the firm.
A)True
B)False
Q3) Which of the following methods is the most commonly used payment application for open item accounts?
A) Automatic identification
B) Post-identification
C) Pre-identification
D) Intermittent identification
Q4) A sales return involves a partial reduction of sales revenue.
A)True
B)False
Q5) List and explain three examples of information processing authorization controls.
Q6) What is the difference between credit limit, credit rating, and credit hold?
Q7) When is it necessary to have a sales order processing module in the revenue process?
Q8) Give two examples of data verification controls found in the revenue process.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: The Purchasing Process
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/70585
Sample Questions
Q1) What has replaced the traditional paper purchase order?
A) Electronic Data Exchange
B) Facsimile
C) Optical scanners
D) Graphical user interfaces
Q2) Cash disbursements to vendors are recorded in the cash disbursements transaction file which is then used to update the open vendor invoice file and the vendor master file.
A)True
B)False
Q3) Invoices for received items not yet paid are stored in the purchases transaction file.
A)True
B)False
Q4) Recording a payable after the invoice is matched with other documents requires which journal entry?
A) Debit to cash; credit to accounts payable
B) Debit to accounts payable; credit to unbilled payables
C) Debit to unbilled payables; credit to cash
D) Debit to unbilled payables; credit to accounts payable
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: The Inventory Process
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/70584
Sample Questions
Q1) An ERP software encompasses all internal operations.
A)True
B)False
Q2) What is economic order quantity?
A) Maximum order quantity
B) A result of balancing holding costs against order costs
C) A quantity that is determined by the minimum holding cost
D) The sum of the safety stock and lead time stock
Q3) What type of control activity is the security system on an inventory warehouse?
A) Corrective.
B) Detective.
C) Preventive.
D) Corrective and detective.
Q4) When is an order placed for additional products?
A) When the quantity available for sale reaches the stockout level
B) When quantity available for sale declines to the lead time stock level
C) When sales fall below the maximum stocking level
D) When inventory falls to the economic order quantity
Q5) What are the end of period processing options in the inventory module?
Q6) What are the tasks that supply chain management software can perform?
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Database Structure of Accounting Systems
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/70583
Sample Questions
Q1) What is the operation that materializes the relationship between tables?
A) Union
B) Insertion
C) Projection
D) Join
Q2) Which of the following statements best describes mapping in a database?
A) Mapping is the process of implementing the conceptual relationship in a database.
B) Mapping defines the relationship among the three levels of a database.
C) Mapping is the process of making a data element in one schema correspond to an element in another schema.
D) Mapping is the process of implementing a particular application as requested by the users.
Q3) Why are conventional files easy to understand and operate?
A) Data are separated into files that mimic journals and ledgers in manual systems.
B) Data are disaggregated but can be combined in numerous ways.
C) Data can be visually checked.
D) Data can be posted in real time.
Q4) Identify the types of relationships that can exist between tables in a database.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Developing a Relational Database for an Accounting Information System
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/70582
Sample Questions
Q1) What are the steps required to develop a relational database for an accounting system using the system output approach?
Q2) Which of the following statements concerning entity-relationship modeling is true?
A) It has a strong theoretical base but seldom is used in practice.
B) It is a method for arranging data elements after the decision has been made to implement a relational database management system.
C) It involves identifying and documenting the system outputs and the contents of the outputs that are required by users.
D) The entity-relationship diagram depicting the model is read from top to bottom and cannot be read from bottom to top.
Q3) In the REA framework, an event is a business activity. A)True B)False
Q4) What is the step that will normalize data with respect to the first normal form?
Q5) Tables in a relational database are documented by a data flow diagram. A)True B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Electronic Business
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/70581
Sample Questions
Q1) Which of the following EDI over the Internet approach uses templates to map the EDI messages from the way the data are stored in a database to the EDI standard message and processes the message on the client's side?
A) Internet EDI
B) Web-EDI
C) XML/EDI
Q2) Identify the two barcode symbologies discussed in the text along with a brief description.
Q3) Define an Electronic Data Interchange (EDI) system. List three advantages to using one of these systems.
Q4) Although the rapid availability of data is a benefit of bar codes, it is very expensive to implement.
A)True
B)False
Q5) EDI transactions are typically between which of the following?
A) Companies in the same industry
B) Companies in different industries
C) A vendor and a value-added reseller
D) Both A and B
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Ais Selection and Implementation
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/70580
Sample Questions
Q1) What is the first step in planning projects?
A) Divide the team into subcommittees with members on more than one subcommittee.
B) Perform an informal survey of system users.
C) Prepare a preliminary list of constraints.
D) Outline the various tasks required.
Q2) What is the most significant advantage of a single supplier of an AIS?
A) Greater expertise is available.
B) The choice of suppliers will greatly expand.
C) One party is responsible for implementation.
D) None of these is a significant advantage.
Q3) Discuss the various methods of conversion to an AIS system.
Q4) What is the difference in AIS installation and AIS implementation?
Q5) One way to identify the preliminary requirements of an AIS system is to determine the inadequacies of the existing system.
A)True
B)False
Q6) Describe two planning tools used in AIS selection and implementation.
Q7) What are four issues in system acquisition?
Q8) Discuss issues involved in system acquisition.
To view all questions and flashcards with answers, click on the resource link above. Page 17