Questions with accounting information systems
1. T F Documentation includes everything except narrative descriptions.
2. T F A document flowchart describes the physical flow of data through an accounting information system.
3. T F The direction of information flow in a document flowchart is represented by arrows.
4. T F Document flowcharts are mainly an educational aid and are seldom used in the business world.
5. T F A document flowchart is a particular kind of system flowchart.
6. T F Managerial reports are the primary output of the financial accounting system.
7. T F Codes are seldom used in an AIS because they use excess space.
8. T F Block codes are commonly used in constructing charts of accounts.
9. T F Three major objectives of a data collection process are accuracy, timeliness, and cost-effectiveness.
10. T F Debit/credit memoranda are issued when there is a discrepancy about the amount owed or when goods are returned.
11. T F An AIS's cost accounting subsystem is an important part of the production process.
12. T F Inputs to the production process include job time cards, material requisition forms, and the master production schedule.
13. T F With a job costing system it is not possible to keep track of costs for each item or group of items produced.
14. T F With a just-in-time inventory approach, raw material inventories are always zero.
15. T F A good internal control system will contribute towards detecting accidental errors made by employees.
16. T F An organization should always attempt to implement ideal controls into its system.
17. T F It is normally considered good organizational design to establish the internal audit function within the accounting subsystem.
18. T F The introduction of a computer into an organization's data processing system will normally eliminate problems associated with following the organization's audit trail.
19. T F A good audit trail is an important element within a company's internal control system.
20. T F No record of transactions is made in an online computerized system. FALSE
21. T F Most computer vandalism is performed by "professional" computer criminals who have no personal contact with the computer centers they disrupt.
22. T F The primary function of controls for a computerized accounting information system is to detect computer fraud.
23. T F Input controls attempt to assure the accuracy and completeness of the data fed into the CPU for processing.
24. T F It is more difficult to safeguard logical computer access than it is to safeguard physical computer access.
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Active since 2005