This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accounting Information Systems > Accounting Information Systems – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Information Systems Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Information Technology (IT) audits can be performed by both internal and external auditors. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 2. Understanding the system A) Sequence of clerical activities. B) The result of a process. C) Administrative process. D) Processor group. Show Answer Correct Answer: D) Processor group. 3. The principles of developing an accounting information system do not include A) Flexibility. B) Cost effectiveness. C) Usefulness. D) Elimination of human involvement. Show Answer Correct Answer: D) Elimination of human involvement. 4. Who is the founder and creator of Facebook.com? A) Step Cheng. B) Steve Jobs. C) Larry Page. D) Mark Zuckerberg. Show Answer Correct Answer: D) Mark Zuckerberg. 5. Design View has the same meaning as which of the following in the database management program? A) Import table view. B) Datasheet view. C) Design view. D) Linked Grid View. Show Answer Correct Answer: C) Design view. 6. Payment of employee wages. A) Purchases Journal. B) General Journal. C) Cash Payment Journal. D) Sales Journal. E) Cash Receipt Journal. Show Answer Correct Answer: C) Cash Payment Journal. 7. From the employee's main file. What is a Primary record key? A) Employee address. B) Employee name. C) Employee ID. D) Employee salary rate. Show Answer Correct Answer: C) Employee ID. 8. What database format is commonly used in database system design? A) Relational database. B) Hierarchical database. C) Single database. D) Network database. Show Answer Correct Answer: A) Relational database. 9. Tian Kai decides to pay his supplier $ 2 500 with cheque from his business bank account after 10 weeks. A) Cash transaction. B) Credit transaction. Show Answer Correct Answer: B) Credit transaction. 10. A sales journal is..... A) Used to record the sales of assets other than merchandise inventory. B) A general journal used to record the adjustments in revenue account. C) A special journal used to record all the cash sales. D) A special journal used to record credit sales. Show Answer Correct Answer: D) A special journal used to record credit sales. 11. The purchasing system is classified as an accounting information system of which type? A) Income side. B) Resource management. C) Expense side. D) Financial. Show Answer Correct Answer: C) Expense side. 12. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 13. In the distributed data processing approach A) Computer services are consolidated and managed as a sharedorganization resource. B) The computer service function is a cost center. C) The end users are billed using a charge-back system. D) Computer services are organized into small information processing units under the control of end users. Show Answer Correct Answer: D) Computer services are organized into small information processing units under the control of end users. 14. In a perpetual inventory system, when cash sales are recorded, ..... A) Sales revenue increases and cash decreases. B) Sales revenue increases and cost of goods sold decreases. C) Merchandise inventory decreases and cost of goods sold increases. D) Merchandise inventory decreases and cost of goods sold decreases. Show Answer Correct Answer: C) Merchandise inventory decreases and cost of goods sold increases. 15. When companies use special journals: A) They record all purchase transactions in the purchases journal. B) They record all cash received, except from cashsales, in the cash receipts journal. C) They record all cash disbursements in the cashpayments journal. D) A general journal is not necessary. Show Answer Correct Answer: C) They record all cash disbursements in the cashpayments journal. 16. 3 Basics types of entities EXCEPT A) Agents. B) Resource. C) Place. D) Events. Show Answer Correct Answer: C) Place. 17. A purchase of equipment on account is recorded inthe: A) Cash payments journal. B) Cash receipts journal. C) One-column purchases journal. D) General journal. Show Answer Correct Answer: D) General journal. 18. Which source document will be received by a business when it purchases goods on credit from its supplier? A) Credit note. B) Payment voucher. C) Invoice. D) Receipt. Show Answer Correct Answer: C) Invoice. 19. Enterprise resource planning (ERP) systems are typically used by companies with revenues of less than $ 1000 million and up to 10.000 employees A) False. B) True. Show Answer Correct Answer: B) True. 20. If a transaction cannot be recorded in a special journal, it is A) An error. B) Not recorded. C) A correcting entry. D) Recorded in the general journal. Show Answer Correct Answer: D) Recorded in the general journal. 21. Which source document, approved by authorised personnel and supported by the original supplier's invoice, is used to process payment to credit suppliers? A) Credit note. B) Payment voucher. C) Remittance advice. D) Debit note. Show Answer Correct Answer: B) Payment voucher. 22. Hazards resulting from receiving goods that were not ordered What internal control methods should be in place? A) Compare with approved purchase order. B) The number of units of the product is not specified on the purchase order submitted to the receiving department. C) Give the number in advance on the receipt. D) Check the product count to match the delivery note from the seller. Show Answer Correct Answer: A) Compare with approved purchase order. 23. Which is not an internal control over purchases? The product is on credit. A) There are no written regulations for working. B) In each purchase approval is required Every order is in writing. C) There must be a clear separation of duties. D) The purchase document is numbered. products in advance. Show Answer Correct Answer: A) There are no written regulations for working. 24. What do Business Documents mean? A) Business circle. B) Business documents. C) Document business. D) Proof of trading. Show Answer Correct Answer: B) Business documents. 25. A customer paid cash for computer parts bought from the business. A) Invoice. B) Credit note. C) Receipt. D) Payment voucher. E) Debit note. Show Answer Correct Answer: C) Receipt. 26. When preparing discretionary reports, organizations can choose what information to report and how to present it. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 27. Which level of management is responsible for controlling day-to-day operations? A) Top management. B) Executive management. C) Operations management. D) Middle management. Show Answer Correct Answer: C) Operations management. 28. Accounts Receivable and Accounts Payable are examples of A) Nominal accounts. B) Subsidiary ledger accounts. C) Controlling accounts. D) Both nominal accounts and controlling accounts. Show Answer Correct Answer: C) Controlling accounts. 29. An effective accounting information system that provides relevant information ..... A) Reduces the cost of employing an accounting information system. B) Improves decision making and reduces uncertainty. C) Increases the likelihood of fraud and errors. D) Improves the accuracy of data entry when manual. Show Answer Correct Answer: B) Improves decision making and reduces uncertainty. 30. What is the accounting theory that states that all transactions must be recorded at the original cost at which they occurred? A) Objectivity. B) Monetary . C) Original cost. D) Historical cost. Show Answer Correct Answer: D) Historical cost. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccounting Information Systems Quiz 1Accounting Information Systems Quiz 2Accounting Information Systems Quiz 3Accounting Information Systems Quiz 4Accounting Information Systems Quiz 5Accounting Information Systems Quiz 6Accounting Information Systems Quiz 8Accounting Information Systems Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books