Prep AIS Exam 1 Questions & Answers 2024/2025
data processing cycle - ANSWERSthe four operations (data input, data storage, data processing, and information output) performed on data to generate meaningful and relevant information
1. Each activity of interest
2. The resources affected by e...
data processing cycle - ANSWERSthe four operations (data input, data storage, data processing, and
information output) performed on data to generate meaningful and relevant information
1. Each activity of interest
2. The resources affected by each activity
3. The people who participate in each activity - ANSWERSData must be collected about three facets of
each business activity:
Source documents - ANSWERSDocuments used to capture transaction data at its source - when the
transaction takes place. Examples include sales orders, purchase orders, and employee time cards.
Turnaround documents - ANSWERSrecords of company data sent to an external party and then returned
to the system as input
- machine readable to facilitate their subsequent processing as input records
- example is utility bill returned with customer's payment
Source data automation - ANSWERSThe collection of transaction data in machine-readable form at the
time and place of origin. Examples are point-of-sale terminals and ATMs.
general ledger - ANSWERSA ledger that contains summary-level data for every asset, liability, equity,
revenue, and expense account of the organization.
subsidiary ledger - ANSWERSA ledger used to record detailed data for a general ledger account with
many individual subaccounts, such as accounts receivable, inventory, and accounts payable.
, Control Account - ANSWERSa title given to a general ledger account that summarizes the total amounts
recorded in a subsidiary ledger
coding - ANSWERSthe systematic assignment of numbers or letters to items to classify and organize them
sequence codes - ANSWERSItems are numbered consecutively so that gaps in the sequence code
indicate missing items that should be investigated. Examples include prenumbered checks, invoices, and
purchase orders.
block code - ANSWERSBlocks of numbers that are reserved for specific categories of data, thereby
helping to organize the data. An example is a chart of accounts.
group codes - ANSWERSTwo or more subgroups of digits that are used to code an item. A group code is
often used in conjunction with a block code.
mnemonic codes - ANSWERSletters and numbers are interspersed to identify an item
- derived from the description of the item and is easy to recognize
chart of accounts - ANSWERSA listing of all the numbers assigned to balance sheet and income
statement accounts. The account numbers allow transaction data to be coded, classified, and entered
into the proper accounts. They also facilitate financial statement and report preparation.
general journal - ANSWERSA journal used to record infrequent or non-routine transactions, such as loan
payments and end-of-period adjusting and closing entries.
specialized journal - ANSWERSA journal used to record a large number of repetitive transactions such as
credit sales, cash receipts, purchases, and cash disbursements.
audit trail - ANSWERSa path that allows a transaction to be traced through a data processing system
from point of origin to output or backward from output to point of origin
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