AIS Exam 1 Prep Questions & Answers 2024/2025
(T/F) A system is a collection of related resources designed to help a company achieve specified objectives. - ANSWERSTrue
Information that reduces uncertainty, improves decision makers' ability to make predictions, or confirms or corrects their...
(T/F) A system is a collection of related resources designed to help a company achieve specified
objectives. - ANSWERSTrue
Information that reduces uncertainty, improves decision makers' ability to make predictions, or confirms
or corrects their prior expectations, is said to be - ANSWERSRelevant
Accounting information systems are designed to: - ANSWERSReport information to decision makers
Groups of related business activities such as the acquisition of merchandise and payment of vendors are
called - ANSWERSTransaction cycles
A sequentially-numbered document contains the following: "Purchase twenty reams of paper from XYZ
Corporation at a cost of $15/ream." The document could be: - ANSWERSA purchase order
A general journal would be used to... - ANSWERSrecord monthly depreciation entries
Two documents usually accompany goods shipped to a customer. What are the two documents? -
ANSWERSA packing slip and bill of lading
(T/F) After a sales order has been placed, the next step in the customer order business management
process is to ship the goods or perform the requested services. - ANSWERSFalse
(T/F) If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the
purchase order and receiving report. - ANSWERSTrue
Below are some of the basic activities in a paper-based accounting system:
i. Post (copy) data from journals to the appropriate accounts in the general ledger
, ii. Record transactions in the appropriate journals
iii. Post (copy) data from journals to the appropriate accounts in the subsidiary ledgers
iv. Complete source documents
In what order do these activities occur? - ANSWERSiv, ii, iii, I
Complete source documents, Record transactions in the appropriate journals, Post (copy) data from
journals to the appropriate accounts in the subsidiary ledgers, Post (copy) data from journals to the
appropriate accounts in the general ledger
(T/F) Sales orders should be prenumbered documents. - ANSWERSTrue
In a flowchart, a diamond denotes a(n): - ANSWERSDecision
The billing department is not responsible for - ANSWERSupdating the inventory subsidiary records
Which of the following would be the least effective control to minimize the loss of inventory? -
ANSWERSPeriodically back up all perpetual inventory records.
The first major business activity in the expenditure cycle is - ANSWERSordering inventory, supplies, or
services
_________ is a of thinking/reasoning and problem solving - ANSWERSSystems thinking
A ________ is a dynamic and complex whole, interacting as a structured functional unit -
ANSWERSSystem
Data must be converted into information to be considered useful and meaningful for decision-making.
There are six characteristics that make information both useful and meaningful. If information is free
from error or bias and accurately represents the events or activities of the organization, it is
representative of the characteristic of - ANSWERSReliability
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