AIS Final Exam Review Questions (Extensive)
with Quality Answers
D) Activities, documents, and technologies - Correct Answer An accounting information system is a set
of interrelated:
A) Activities and documents only
B) Activities and technologies only
C) Documents and technologies only
D) Activities, documents, and technologies
A) Data, information - Correct Answer The components of an accounting information system are
designed to collect ______ and report _______.
A) Data, information
B) Data, data
C) Information, information
D) Information, data
B) Buying inventory, sales invoice, general ledger software - Correct Answer An accounting information
system is defined by the text as a set of three interrelated elements. Which of the following choices best
gives an example of each element?
A) Buying inventory, selling inventory, balance sheet
B) Buying inventory, sales invoice, general ledger software
C) Selling inventory, sales invoice, balance sheet
D) Selling inventory, writing a check, general ledger software
A) Journalizing transactions and posting them to the ledger - Correct Answer An accounting information
system transforms inputs into outputs via processes such as:
A) Journalizing transactions and posting them to the ledger
B) Identifying the elements of the FASB Conceptual Framework
C) Always utilizing information technology
,D) Recognizing and adapting tot he cost-benefit constraint
C) Processed source documents leading to the general purpose financial statements - Correct Answer
Which of the following best fits the definition of an accounting information system explained in the text?
A) A checkbook register
B) A publicly-traded corporation's financial statements
C) Processed source documents leading to the general purpose financial statements
D) An Excel spreadsheet of financial statement ratios
A) Documents and data - Correct Answer April compiled checks, receipts, and invoices, then entered
them into Quickbooks. She printed out her financial statements and took them to the bank as
documentation for a loan application. In that scenario, checks, receipts, and invoices could be referred to
as:
A) Documents and data
B) Data and information
C) Documents and information
D) Documents, data, and information
A) The required monthly payment is an example of "information," as the term is used in the definition of
an accounting information system. - Correct Answer Claudia borrowed money from her bank, signing a
five-year note payable. She then calculated the monthly payment needed to pay off the loan within
three years. Which of the following statements is / are the most true?
A) The required monthly payment is an example of "information," as the term is used in the definition of
an accounting information system.
B) The five-year note payable would be considered a "technology" if it were prepared with computer
software
C) Both A and B are true
D) Neither A nor B is true
D) I, II, and III - Correct Answer Claudia borrowed money from her bank, signing a five-year note
payable. She then calculated the monthly payment needed to pay off the loan within three years. Based
on the definition of an accounting information system provided in the text, the five year note payable
could be considered: (i) an input, (ii) an output, (iii) a document.
, A) I and II only
B) I and III only
C) II and III only
D) I, II, and III
B) Yes, because all elements of the definition are present. - Correct Answer Eugene is a self-employed
business owner. In February 2011, he gathered together his income and expense records for 2010. He
use them, along with appropriate software, to prepare his tax return, which he then transmitted to the
Internal Revenue Service. Has Eugene use an accounting infromation system based on the definition
provided in the text?
A) Yes, because he used software to prepare his tax return.
B) Yes, because all elements of the definition are present.
C) No, because all accounting information systems must produce general purpose financial statements.
D) No, because no internal decision maker is mentioned
D) Yes, because all elements of the definition are present or implied - Correct Answer The vice president
for customer service of First United Bank determined that Lee had overpaid his mortgage. The bank sent
Lee a letter asking him if he wanted a refund of the over-payment or if he wanted to apply it to future
mortgage payments. Has the vice president for customer service used an accounting information system
based on the definition provided in the text?
A) No, because no mention is made of software.
B) No, because the letter does not constitute an output
C) No, because no mention is made of general purpose financial statements
D) Yes, because all elements of the definition are present
B) All organizations need an AIS - Correct Answer Accounting information systems is an important area
of study for future accountants because:
A) All organizations use information technology in their AIS
B) All organizations need an AIS
C) Both A and B
D) Neither A nor B
