Question 1

VTR Corporation's accounting information system recently reported the following information: Cost of goods sold, $1,500. Inventory, $15,000. Unearned service fees, $3,000. Service fees earned, $8,000. Which element of financial statements is not included in the preceding data?

Accepted Answer

A)  Assets
B)  Equity
C)  Expense
D)  Liabilities

Question 2

AIS is an important area of study for future accountants because a well-designed AIS can recognize and adapt to the cost-benefit constraint. Which of the following statements is most true?

Accepted Answer

A)  Nonfinancial costs and benefits are less important than financial costs and benefits in designing an AIS.
B)  Resistance to change is a potential cost when making changes to the AIS.
C)  Financial statement users benefit from more information when it comes from the AIS.
D)  Source documents should be electronic, rather than paper-based, because electronic documents are more cost effective.

Question 3

Match between columns
                        Premises: Activity
Information
Technology
Data
Document

Accepted Answer

The Answer of Internal control and Process and Output and is...

Question 4

Bumble Beasley, a recent accounting graduate from a private, for-profit university, started his own accounting consulting firm. His web page discussed internal controls, inputs, processes and outputs in relation to the design and implementation of accounting information systems. Should his web page be considered a good source of information about the generic structure of AIS?

Accepted Answer

A)  Yes. Because he has a college degree, he has authority.
B)  Yes. Because he is a recent graduate, the information is current.
C)  No. Since his degree is from a private, for-profit university, he cannot be objective.
D)  No. He is in violation of at least one of the UMUC criteria for evaluating information.

Question 5

In management accounting, students learn to prepare budgets, calculate cost variances and interpret those variances. Which of the following best links those topics with AIS study?

Accepted Answer

A)  Use of professional judgment
B)  Required use of information technology
C)  Both A and B
D)  Neither A nor B

Question 6

Fraud Magazine is published six times a year by the Association of Certified Fraud Examiners; its articles are primarily directed to professionals employed in the fraud examination field. Fraud Magazine is likely to be considered practitioner information because:

Accepted Answer

A)  It is published six times a year.
B)  It is published by an association of practitioners.
C)  Both A and B
D)  Neither A nor B

Question 7

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:

Accepted Answer

A)  Documents and data
B)  Data and information
C)  Documents and information
D)  Documents, data and information

Question 8

AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework. Which of the following best pairs an element of the conceptual framework with a specific example of that element?

Accepted Answer

A)  Relevance, land reported at historical cost
B)  Consistency, land reported at historical cost
C)  Matching, land is not depreciated
D)  Gain, difference between historical cost and current market value for land used in operations

Question 9

An accounting information system transforms inputs into outputs via processes such as:

Accepted Answer

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 to the cost-benefit constraint

Question 10

The generic structure of most accounting information systems comprises ___ elements.

Accepted Answer

A)  Three
B)  Four
C)  Five
D)  More than five

Question 11

Eugene is a self-employed business owner. In February 2011, he gathered together his income and expense records for 2010. He used them, along with appropriate software, to prepare his tax return, which he then transmitted to the Internal Revenue Service. Has Eugene used an accounting information system based on the definition provided in the text?

Accepted Answer

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.

Question 12

Information literacy is the ability to find, evaluate, use and communicate information in all of its various formats. Information can be classified as: (i)  sponsored / commercial, (ii)  popular/practitioner, (iii)  scholarly.

Accepted Answer

A)  I and II only
B)  II and III only
C)  I and III only
D)  I, II and III D

Question 13

Sienna used a stack of sales invoices to record journal entries in the AIS. She used those entries and others to prepare an income statement that was later reviewed by her supervisor. The supervisor's review could best be described as which generic element of the AIS?

Accepted Answer

A)  Input
B)  Output
C)  Process
D)  Internal control

Question 14

List and discuss two similarities and two differences between AIS and other areas of accounting.

Accepted Answer

AIS is similar to other areas of account...

Question 15

AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework. Which of the following statements is most true?

Accepted Answer

A)  Land is reported as an asset on the balance sheet; assets are one element of financial statements in the conceptual framework.
B)  The difference between land's current market value and its historical cost is reported as a gain on the income statement; gains are one element of financial statements in the conceptual framework.
C)  Because of the secondary qualitative characteristic of consistency, publicly traded corporations cannot change their accounting methods.
D)  Because of the primary qualitative characteristic of reliability, publicly traded corporations cannot change their accounting methods. A

Question 16

Which of the following statements about AIS is most true?

Accepted Answer

A)  The topics studied in an AIS course are unrelated to those in other accounting courses.
B)  AIS is the only area of accounting that involves questions with nondeterministic answers.
C)  The five generic elements of an AIS can be discussed in other areas of accounting.
D)  All of the above statements are true.

Question 17

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?

Accepted Answer

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 B

Question 18

Which of the following exemplifies "materiality" as the term is used in the FASB conceptual framework?

Accepted Answer

A)  BCC Corporation purchased a $30 wastebasket with an expected useful life of 10 years. BCC charged the entire cost to expense in the period incurred.
B)  Reported account balances in DPT Corporation's financial statements are rounded to the nearest whole dollar.
C)  Both A and B
D)  Neither A nor B

Question 19

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS. Which of the following is a process that might be studied in management or cost accounting?

Accepted Answer

A)  Components of the master budget
B)  How to prepare the master budget
C)  Both A and B
D)  Neither A nor B

Question 20

Joe has completed all his accounting coursework and is ready to graduate. In his education, he has learned how to: analyze source documents, use Excel, make journal entries and prepare tax returns. Which generic element of the AIS is missing from that list?

Accepted Answer

A)  Inputs
B)  Outputs
C)  Storage
D)  Processes

Exam 1: Role and Purpose of Accounting Information Systems

VTR Corporation's accounting information system recently reported the following information: Cost of goods sold, $1,500. Inventory, $15,000. Unearned service fees, $3,000. Service fees earned, $8,000. Which element of financial statements is not included in the preceding data?

Correct Answer
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AIS is an important area of study for future accountants because a well-designed AIS can recognize and adapt to the cost-benefit constraint. Which of the following statements is most true?

Correct Answer
verified

Match each term from the definition of AIS with the single most appropriate generic element of the AIS. Some generic AIS elements may be used more than once; other generic AIS elements may not be used at all.

Correct Answer
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In management accounting, students learn to prepare budgets, calculate cost variances and interpret those variances. Which of the following best links those topics with AIS study?

Correct Answer
verified

Fraud Magazine is published six times a year by the Association of Certified Fraud Examiners; its articles are primarily directed to professionals employed in the fraud examination field. Fraud Magazine is likely to be considered practitioner information because:

Correct Answer
verified

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:

Correct Answer
verified

AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework. Which of the following best pairs an element of the conceptual framework with a specific example of that element?

Correct Answer
verified

An accounting information system transforms inputs into outputs via processes such as:

Correct Answer
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The generic structure of most accounting information systems comprises ___ elements.

Correct Answer
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Correct Answer
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Information literacy is the ability to find, evaluate, use and communicate information in all of its various formats. Information can be classified as: (i) sponsored / commercial, (ii) popular/practitioner, (iii) scholarly.

Correct Answer
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D

Sienna used a stack of sales invoices to record journal entries in the AIS. She used those entries and others to prepare an income statement that was later reviewed by her supervisor. The supervisor's review could best be described as which generic element of the AIS?

Correct Answer
verified

List and discuss two similarities and two differences between AIS and other areas of accounting.

Correct Answer
verified
AIS is similar to other areas of account...
View Answer

AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework. Which of the following statements is most true?

Correct Answer
verified
A

Which of the following statements about AIS is most true?

Correct Answer
verified

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?

Correct Answer
verified
B

Which of the following exemplifies "materiality" as the term is used in the FASB conceptual framework?

Correct Answer
verified

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS. Which of the following is a process that might be studied in management or cost accounting?

Correct Answer
verified

Joe has completed all his accounting coursework and is ready to graduate. In his education, he has learned how to: analyze source documents, use Excel, make journal entries and prepare tax returns. Which generic element of the AIS is missing from that list?

Correct Answer
verified

Exam 1: Role and Purpose of Accounting Information Systems

VTR Corporation's accounting information system recently reported the following information: Cost of goods sold, $1,500. Inventory, $15,000. Unearned service fees, $3,000. Service fees earned, $8,000. Which element of financial statements is not included in the preceding data?

Correct AnswerverifiedShow Answer

AIS is an important area of study for future accountants because a well-designed AIS can recognize and adapt to the cost-benefit constraint. Which of the following statements is most true?

Correct AnswerverifiedShow Answer

Match each term from the definition of AIS with the single most appropriate generic element of the AIS. Some generic AIS elements may be used more than once; other generic AIS elements may not be used at all.

Correct AnswerverifiedShow Answer

In management accounting, students learn to prepare budgets, calculate cost variances and interpret those variances. Which of the following best links those topics with AIS study?

Correct AnswerverifiedShow Answer

Fraud Magazine is published six times a year by the Association of Certified Fraud Examiners; its articles are primarily directed to professionals employed in the fraud examination field. Fraud Magazine is likely to be considered practitioner information because:

Correct AnswerverifiedShow 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:

Correct AnswerverifiedShow Answer

AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework. Which of the following best pairs an element of the conceptual framework with a specific example of that element?

Correct AnswerverifiedShow Answer

An accounting information system transforms inputs into outputs via processes such as:

Correct AnswerverifiedShow Answer

The generic structure of most accounting information systems comprises ___ elements.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Information literacy is the ability to find, evaluate, use and communicate information in all of its various formats. Information can be classified as: (i) sponsored / commercial, (ii) popular/practitioner, (iii) scholarly.

Correct AnswerverifiedD

Sienna used a stack of sales invoices to record journal entries in the AIS. She used those entries and others to prepare an income statement that was later reviewed by her supervisor. The supervisor's review could best be described as which generic element of the AIS?

Correct AnswerverifiedShow Answer

List and discuss two similarities and two differences between AIS and other areas of accounting.

Correct AnswerverifiedAIS is similar to other areas of account...View AnswerShow Answer

AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework. Which of the following statements is most true?

Correct AnswerverifiedA

Which of the following statements about AIS is most true?

Correct AnswerverifiedShow 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?

Correct AnswerverifiedB

Which of the following exemplifies "materiality" as the term is used in the FASB conceptual framework?

Correct AnswerverifiedShow Answer

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS. Which of the following is a process that might be studied in management or cost accounting?

Correct AnswerverifiedShow Answer

Joe has completed all his accounting coursework and is ready to graduate. In his education, he has learned how to: analyze source documents, use Excel, make journal entries and prepare tax returns. Which generic element of the AIS is missing from that list?

Correct AnswerverifiedShow Answer

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D

Correct Answer
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AIS is similar to other areas of account...
View Answer

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A

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B

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