Accounting Information Systems
Chapter 1(Test #1) questions & answers.
Define: Business Process ANS - Prescribed sequence of work steps performed in order to produce a
desired result for the organization.
What are the 4 general types of business processes? What are examples of each? ANS - 1.Revenue
Process (Sales Processes, Sales Return Processes, Cash Collection Processes)
2.Expenditure Processes (Purchasing Processes, Purchase Return Processes, Cash Disbursement
Processes, Payroll Processes, Fixed Asset Processes)
3.Conversion Processes (Planning Processes, Resource Management Processes, Logistics Processes)
4.Administrative Processes (Capital Processes, Investment Processes, General Ledger Processes)
Define: Internal Controls ANS - The set of procedures and policies adopted within an organization to
safeguard its assets, check the accuracy and reliability of its data, promote operational efficiency, and
encourage adherence to prescribed managerial practices.
Define: Accounting Information System ANS - Comprises the processes, procedures, and systems that
capture accounting data from business processes; record the accounting data in the appropriate
records; process the detailed accounting data by classifying, summarizing, and consolidating; and report
the summarized accounting data to internal and external users.
Define: IT Enablement ANS - Using IT systems to enhance efficiency and effectiveness of internal or
supply chain processes.
What is the data hierarchy in order from smallest to largest? ANS - 1. Bit, or binary digit
2. Byte
3. Field
, 4. Record
5. File
6. Database
Define: Bit ANS - The smallest unit of information in a computer system. Value is 0 or 1.
Define: Byte ANS - A unit of storage that represents one character. 8 bits are 1 byte
Define: Field ANS - One item within a record. Ex. Last Name in payroll record
Define: Record ANS - A set of related fields for the same entity.
Ex. Employee number, last name, first name, social security number, all these together form a record.
Define: File ANS - The entire set of related records form a file.
The set of all employee records forms a payroll file.
Define: Database ANS - The entire collection of files.
Define: Relational Database ANS - Stores data in several small two-dimensional tables that can be joined
together in many varying ways to represent many different kinds of relationships among the data.
Define: Master Files ANS - The relatively permanent files that maintain the detailed data for each major
process.
Define: Transaction File ANS - The set of relatively temporary records that will be processed to update
the master file.
Define: Sequential Access (1st way files can be accessed) ANS - Files store records in sequence.
Chapter 1(Test #1) questions & answers.
Define: Business Process ANS - Prescribed sequence of work steps performed in order to produce a
desired result for the organization.
What are the 4 general types of business processes? What are examples of each? ANS - 1.Revenue
Process (Sales Processes, Sales Return Processes, Cash Collection Processes)
2.Expenditure Processes (Purchasing Processes, Purchase Return Processes, Cash Disbursement
Processes, Payroll Processes, Fixed Asset Processes)
3.Conversion Processes (Planning Processes, Resource Management Processes, Logistics Processes)
4.Administrative Processes (Capital Processes, Investment Processes, General Ledger Processes)
Define: Internal Controls ANS - The set of procedures and policies adopted within an organization to
safeguard its assets, check the accuracy and reliability of its data, promote operational efficiency, and
encourage adherence to prescribed managerial practices.
Define: Accounting Information System ANS - Comprises the processes, procedures, and systems that
capture accounting data from business processes; record the accounting data in the appropriate
records; process the detailed accounting data by classifying, summarizing, and consolidating; and report
the summarized accounting data to internal and external users.
Define: IT Enablement ANS - Using IT systems to enhance efficiency and effectiveness of internal or
supply chain processes.
What is the data hierarchy in order from smallest to largest? ANS - 1. Bit, or binary digit
2. Byte
3. Field
, 4. Record
5. File
6. Database
Define: Bit ANS - The smallest unit of information in a computer system. Value is 0 or 1.
Define: Byte ANS - A unit of storage that represents one character. 8 bits are 1 byte
Define: Field ANS - One item within a record. Ex. Last Name in payroll record
Define: Record ANS - A set of related fields for the same entity.
Ex. Employee number, last name, first name, social security number, all these together form a record.
Define: File ANS - The entire set of related records form a file.
The set of all employee records forms a payroll file.
Define: Database ANS - The entire collection of files.
Define: Relational Database ANS - Stores data in several small two-dimensional tables that can be joined
together in many varying ways to represent many different kinds of relationships among the data.
Define: Master Files ANS - The relatively permanent files that maintain the detailed data for each major
process.
Define: Transaction File ANS - The set of relatively temporary records that will be processed to update
the master file.
Define: Sequential Access (1st way files can be accessed) ANS - Files store records in sequence.
