1.
Which of the following is NOT a financial
transaction?
a. purchase of products
b. cash receipts
c. update valid vendor file
d. sale of inventory
2. The following are subsystems of the Accounting
Information System, EXCEPT
a. Transaction Processing System.
b. Human Resources System.
c. General Ledger/Financial Reporting System.
d. Management Reporting System.
3. Which of the following is NOT a purpose of the
Transaction Processing System?
a. managing and reporting on the status of finan-
cial investments
b. converting economic events into financial
transactions
c. distributing essential information to operations
personnel to support their daily operations
d. recording financial transactions in the account-
ing records
4. The objectives of the data collection activity of
the general model for Accounting Information Sys-
tems are to collect data that are
a. relevant and redundant.
b. efficient and objective.
c. efficient and redundant.
d. efficient and relevant.
5. Which of the following is NOT a characteristic of
effective information?
a. relevance
b. accuracy
c. summarization
d. precision
6. Which of the following is NOT a database man-
agement task?
a. retrieval
b. storage
c. summarization
d. deletion
7. When viewed from the highest to most elemental
level, the data hierarchy is
a. attribute, record, file.
b. record, attribute, key.
c. file, record, attribute.
d. file, record, key.
e. key, record, file.
8. Which is NOT an accountant’s primary role in in-
formation systems?
a. system user
b. system auditor
c. system designer
d. system programmer
9. Which of the following is NOT an objective of all
information systems?
a. support for the stewardship function of
management
b. support for management decision making
c. support for the day-to-day operations of the firm
d. all of the above are objectives
10. Which of the following best describes the activities
of the materials management function?
a. purchasing, receiving, and inventory control
b. receiving, sales, distribution, and purchasing
c. receiving, storage, purchasing, and accounts
payable
d. purchasing, receiving, and storage
e. purchasing, storage, and distribution
11. Which of the following best describes the activities
of the production function?
a. maintenance, inventory control, and produc-
tion planning
b. production planning, quality control, manufac-
turing, and cost accounting
c. quality control, production planning, manufac-
turing, and payroll
d. maintenance, production planning, storage, and
quality control
e. manufacturing, quality control, and maintenance
12. Which of the following best describes the activities
of the accounting function?
a. inventory control, accounts payable, fixed
assets, and payroll
b. fixed assets, accounts payable, cash disburse-
ments, and cost accounting
c. purchasing, cash receipts, accounts payable,
cash disbursements, and payroll
d. inventory control, cash receipts, accounts
payable, cash disbursements, and payroll
e. inventory control, cost accounting,
accounts payable, cash disbursements, and
payroll
13. Which statement best describes the issue of dis-
tributed data processing (DDP)?
a. The centralized and DDP approaches are
mutually exclusive; an organization must
choose one approach or the other.
b. The philosophy and objective of the organiza-
tion’s management will determine the extent of
DDP in the firm.
c. In a minimum DDP arrangement, only data
input and output are distributed, leaving the
tasks of data control, data conversion, database
management, and data processing to be cen-
trally managed.
d. The greatest disadvantage of a totally distrib-
uted environment is that the distributed infor-
mation processing unit locations are unable to
communicate and coordinate their activities.
e. Although hardware (such as computers,
database storage, and input/output terminals)
can be effectively distributed, the systems
development and maintenance tasks must
remain centralized for better control and
efficiency.
14. Which of the following is a disadvantage of distrib-
uted data processing?
a. End-user involvement in systems operation is
decreased.
b. Disruptions due to mainframe failures are
increased.
c. The potential for hardware and software
incompatibility across the organization is
increased.
d. The time between project request and comple-
tion is increased.
e. All of the above are disadvantages.
