Do You Know Accounting Information Systems Basics?
This quiz tests your knowledge on the basics of accounting information systems.
Questions and Answers
- 1.
The term ________ describes the use of computer technology to provide decision-oriented information to managers.
- A.
DP
- B.
EDP
- C.
ES
- D.
MIS
Correct Answer
D. MISExplanation
MIS stands for Management Information System, which refers to the use of computer technology to provide decision-oriented information to managers. This system collects, analyzes, and presents data from various sources within an organization, allowing managers to make informed decisions. It helps in improving efficiency, productivity, and decision-making processes by providing accurate and timely information.Rate this question:
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- 2.
Economic events are grouped into how many basic business processes?
- A.
One
- B.
Four
- C.
Six
- D.
Nine
Correct Answer
D. NineExplanation
Economic events are grouped into nine basic business processes. These processes include revenue generation, purchasing, production, payroll, financing, investing, accounting, reporting, and risk management. Each of these processes plays a crucial role in the overall functioning of a business and contributes to its success or failure. By categorizing economic events into these nine processes, businesses can better understand and manage their financial activities.Rate this question:
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- 3.
Which of the following indicates a satisfactory situation from the viewpoint of good internal control?
- A.
The cashier reports to the treasurer.
- B.
Payroll accounting reports to the controller.
- C.
Both of the above indicate an unsatisfactory situation.
- D.
Both of the above indicate a satisfactory situation.
Correct Answer
D. Both of the above indicate a satisfactory situation.Explanation
The correct answer is "Both of the above indicate a satisfactory situation." This is because in a good internal control system, it is important to have segregation of duties and checks and balances in place. By having the cashier report to the treasurer and payroll accounting report to the controller, there is a clear separation of responsibilities and a system of checks and balances. This helps to prevent fraud and errors, ensuring that the company's financial transactions are properly recorded and monitored.Rate this question:
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- 4.
The statement "Amounts due to vendors should be accurately and promptly classified, summarized, and reported" might serve as a control objective in which of the following transaction cycles?
- A.
Revenue cycle
- B.
Expenditure cycle
- C.
Production cycle
- D.
Finance cycle
Correct Answer
B. Expenditure cycleExplanation
The statement "Amounts due to vendors should be accurately and promptly classified, summarized, and reported" aligns with the control objective of the expenditure cycle. The expenditure cycle involves the purchasing of goods and services from vendors, and it is important to accurately record and report the amounts due to vendors to ensure proper payment and financial management. This control objective helps to ensure that the organization maintains accurate and up-to-date records of its liabilities to vendors, which is essential for financial reporting and decision-making purposes.Rate this question:
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- 5.
Which of the following information system functions is generally responsible for the design, coding, and debugging of computer programs?
- A.
Technical support
- B.
Programming
- C.
Operations
- D.
Systems analysis
Correct Answer
B. ProgrammingExplanation
The correct answer is programming. Programming is the information system function that involves the design, coding, and debugging of computer programs. It involves writing instructions in a programming language to create software applications that can perform specific tasks. Programmers are responsible for translating the requirements and specifications of a system into a series of instructions that a computer can execute. They also test and debug these programs to ensure they function correctly.Rate this question:
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- 6.
Which of the following information system functions focuses on the identification of problems and projects for computer processing?
- A.
User support
- B.
Programming
- C.
Operations
- D.
Systems analysis
Correct Answer
D. Systems analysisExplanation
Systems analysis is the correct answer because it is the information system function that focuses on identifying problems and projects for computer processing. Systems analysts analyze the current systems and processes in an organization to identify areas for improvement and develop solutions that involve computer processing. They gather requirements, design system specifications, and recommend changes to enhance efficiency and effectiveness. This function plays a crucial role in ensuring that the organization's information system meets its objectives and supports its operations effectively.Rate this question:
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- 7.
Which of the following is a general term that is used to describe the use of electronic technology for business documents?
- A.
Telecommuting
- B.
Information system
- C.
Office automation
- D.
EDI
Correct Answer
D. EDI -
- 8.
______ is the direct computer-to-computer exchange of business documents via a communications network.
- A.
EDI
- B.
EFTr
- C.
Telecommuting
- D.
E-mail
Correct Answer
A. EDIExplanation
EDI, or Electronic Data Interchange, is the direct computer-to-computer exchange of business documents via a communications network. This allows for the seamless transfer of data and information between different companies and systems. EDI eliminates the need for manual data entry and reduces errors, making it more efficient and cost-effective for businesses to exchange important documents such as purchase orders, invoices, and shipping notices.Rate this question:
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- 9.
The three general phrases of analysis, design, and implementation are part of a ________.
- A.
System development study
- B.
Systems approach
- C.
ES
- D.
DSS
Correct Answer
A. System development studyExplanation
The three general phrases of analysis, design, and implementation are part of a system development study. This study involves the process of analyzing, designing, and implementing a system to meet specific requirements and solve a problem. It encompasses all the steps and activities involved in developing a system, from understanding the user's needs to designing the system architecture and finally implementing it. By following this systematic approach, organizations can ensure that their systems are developed efficiently and effectively.Rate this question:
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- 10.
_________ is the first step in the systems approach.
- A.
Systems design
- B.
Stating objectives
- C.
Systems analysis
- D.
System evaluation
Correct Answer
B. Stating objectivesExplanation
The first step in the systems approach is stating objectives. This involves clearly defining the goals and desired outcomes of the system. By stating objectives at the beginning, it provides a clear direction for the entire systems approach process. Without clearly defined objectives, it would be difficult to effectively design, analyze, and evaluate the system. Stating objectives helps to ensure that the system is aligned with the desired goals and that all subsequent steps in the systems approach are focused on achieving those objectives.Rate this question:
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- 11.
______ is the newer EDI standard.
- A.
AS2
- B.
EbXML
- C.
ANSI X.12
- D.
ANSI X.21
Correct Answer
B. EbXMLExplanation
ebXML is the newer EDI standard compared to AS2, ANSI X.12, and ANSI X.21. EDI, or Electronic Data Interchange, is a system that allows for the electronic exchange of business documents between trading partners. While AS2, ANSI X.12, and ANSI X.21 are older EDI standards, ebXML is a more recent development that provides a more flexible and extensible framework for exchanging business documents electronically. It offers enhanced interoperability and supports a wider range of data formats, making it the preferred choice for modern EDI implementations.Rate this question:
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- 12.
MRP II represent _______.
- A.
EDI
- B.
MRP IV
- C.
ERP
- D.
None of the above
Correct Answer
D. None of the above -
- 13.
________ is a concept that refers to a weakness of ERP
- A.
"integration of functional systems"
- B.
"monolithic software"
- C.
"loosely coupled software"
- D.
All of the above refer to weaknesses in ERP
Correct Answer
B. "monolithic software"Explanation
The concept that refers to a weakness of ERP is "monolithic software". Monolithic software refers to a type of software that is built as a single, indivisible unit, making it difficult to modify or integrate with other systems. In the context of ERP, this can be a weakness because it limits flexibility and scalability, making it challenging to adapt the software to changing business needs or integrate it with other functional systems. Therefore, "monolithic software" is a concept that reflects a weakness in ERP.Rate this question:
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- 14.
Collaborative computing would be especially important to _________.
- A.
The extended enterprise
- B.
ERP
- C.
Lean production
- D.
None of the above
Correct Answer
A. The extended enterpriseExplanation
Collaborative computing would be especially important to the extended enterprise because it involves the collaboration and sharing of information among different organizations, suppliers, and partners. The extended enterprise model relies on effective communication and collaboration to coordinate activities, manage relationships, and ensure seamless integration across the entire network. Collaborative computing enables real-time sharing of data, documents, and resources, allowing all stakeholders to work together efficiently and effectively. This is particularly crucial for the extended enterprise, as it involves multiple entities working together towards common goals and objectives.Rate this question:
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- 15.
Logistics is part of the ___________ functional information system(s).
- A.
Supply chain
- B.
Operations
- C.
Operations and financial
- D.
None of the above
Correct Answer
C. Operations and financialExplanation
Logistics is part of the operations and financial functional information system(s) because it involves the management of the flow of goods, services, and information between the point of origin and the point of consumption. This includes activities such as transportation, warehousing, inventory management, and financial transactions related to these operations. The operations and financial functional information system(s) help in tracking and managing these logistics activities, ensuring efficient and cost-effective operations.Rate this question:
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- 16.
An internal control structure is an organizational plan to _________.
- A.
Protect assets
- B.
Ensure the integrity of accounting information
- C.
Promote operational efficiency
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
An internal control structure is an organizational plan that encompasses various measures and procedures to safeguard assets, ensure the accuracy and reliability of accounting information, and enhance operational efficiency. By implementing controls such as segregation of duties, regular audits, and proper documentation, organizations can protect their assets from fraud or theft, maintain the integrity of financial records, and optimize their operational processes. Therefore, the correct answer is "all of the above" as all these objectives are addressed by an effective internal control structure.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Feb 22, 2010Quiz Created by
Kosdaisy
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