Accounting Online Program Accounting Information Systems 1 — Questions and Answers
Question 1: An Accounting Information System (AIS) is primarily designed to:
- Replace accountants with automated software
- Collect, store, process, and communicate financial and accounting data to support decision-making (Correct answer)
- File taxes electronically with the IRS
- Prepare management presentations for shareholders
Correct answer: Collect, store, process, and communicate financial and accounting data to support decision-making
An AIS collects, records, stores, and processes accounting and financial data to provide useful information to decision-makers both inside and outside the organization.
Question 2: Which of the following is an example of a source document in an accounting information system?
- Trial balance
- Income statement
- Sales invoice (Correct answer)
- Adjusted balance sheet
Correct answer: Sales invoice
Source documents, such as sales invoices, purchase orders, and receipts, provide the original evidence for transactions recorded in the accounting system.
Question 3: Enterprise Resource Planning (ERP) systems in accounting are characterized by:
- Standalone departmental software with no integration
- Integrated modules that share a common database across the entire organization (Correct answer)
- A system used only by external auditors
- Software exclusively for tax preparation
Correct answer: Integrated modules that share a common database across the entire organization
ERP systems integrate all business processes — including accounting, purchasing, inventory, HR, and sales — into a single unified system with a shared database, eliminating data silos.
Question 4: In an AIS, the general ledger serves as:
- A temporary account used only at year-end
- The central repository that summarizes all financial transactions by account (Correct answer)
- A subsidiary record for individual customer balances
- The system used to process payroll checks
Correct answer: The central repository that summarizes all financial transactions by account
The general ledger contains summary-level entries for every account and serves as the foundation for preparing financial statements at the end of each reporting period.
Question 5: Which of the following is a primary risk addressed by IT general controls in an AIS?
- Incorrect depreciation method selection
- Unauthorized access to financial data and systems (Correct answer)
- Overstating revenues in financial statements
- Incorrect inventory valuation under FIFO
Correct answer: Unauthorized access to financial data and systems
IT general controls address risks related to unauthorized access, program changes, and data integrity across all systems, forming the foundation for application-level controls.
Question 6: The revenue cycle in an AIS encompasses which key processes?
- Purchasing goods, paying vendors, and managing inventory
- Receiving customer orders, delivering goods/services, billing, and collecting cash (Correct answer)
- Recording depreciation, adjusting entries, and closing books
- Hiring employees, processing payroll, and paying benefits
Correct answer: Receiving customer orders, delivering goods/services, billing, and collecting cash
The revenue cycle covers all activities from receiving customer orders through delivering products/services, invoicing customers, and collecting cash payments.
Accounting Online Program Accounting Information Systems 1
An Accounting Information System (AIS) is primarily designed to: