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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