Accounting Information Systems Flashcards
6 cards from real Accounting Online Program practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Accounting Information Systems flashcards as text
An Accounting Information System (AIS) is primarily designed to:
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.
Which of the following is an example of a source document in an accounting information system?
Answer: Sales invoice
Source documents, such as sales invoices, purchase orders, and receipts, provide the original evidence for transactions recorded in the accounting system.
Enterprise Resource Planning (ERP) systems in accounting are characterized by:
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.
In an AIS, the general ledger serves as:
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.
Which of the following is a primary risk addressed by IT general controls in an AIS?
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.
The revenue cycle in an AIS encompasses which key processes?
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.