Accounting Online Program Accounting Information Systems 2 — Questions and Answers
Question 1: Which type of file in an AIS stores permanent, reference information such as customer names and addresses?
- Transaction file
- Master file (Correct answer)
- Audit trail file
- Batch input file
Correct answer: Master file
Master files store relatively permanent data (e.g., customer master, vendor master, employee master) that is referenced repeatedly during transaction processing.
Question 2: What is the purpose of an audit trail in an accounting information system?
- To encrypt financial data transmitted over the internet
- To provide a chronological record of transactions that can be traced from source document to financial statement (Correct answer)
- To prevent employees from accessing unauthorized accounts
- To automatically generate financial statements from raw data
Correct answer: To provide a chronological record of transactions that can be traced from source document to financial statement
An audit trail documents the sequence of activities or events within a system, allowing auditors to trace any financial statement amount back to its originating transactions.
Question 3: Batch processing in an AIS means:
- Transactions are processed individually as they occur in real time
- Transactions are accumulated and processed together at set intervals (Correct answer)
- Multiple users access the system simultaneously
- Financial data is backed up to an offsite server continuously
Correct answer: Transactions are accumulated and processed together at set intervals
In batch processing, transactions are collected over a period (e.g., hourly, daily) and then processed together as a group, which is efficient for high-volume, non-time-sensitive tasks.
Question 4: Which control technique checks that a numerical field contains only numbers and not letters or special characters?
- Range check
- Validity check
- Field (format) check (Correct answer)
- Completeness check
Correct answer: Field (format) check
A field (or format) check verifies that data entered in a field conforms to the expected data type, such as confirming a numeric field contains only digits.
Question 5: What is the primary purpose of a disaster recovery plan (DRP) in an AIS context?
- To prevent hackers from accessing financial data
- To outline procedures for restoring IT systems and data after a major disruption (Correct answer)
- To train employees on proper use of accounting software
- To comply with SEC financial reporting requirements
Correct answer: To outline procedures for restoring IT systems and data after a major disruption
A disaster recovery plan specifies how an organization will restore its IT infrastructure and data after events like fires, floods, or cyberattacks to minimize downtime and data loss.
Question 6: In an ERP system, the term 'chart of accounts' refers to:
- A list of all company bank accounts
- A structured listing of all ledger account codes used to classify financial transactions (Correct answer)
- The organizational chart of the accounting department
- A report showing account balances at period end
Correct answer: A structured listing of all ledger account codes used to classify financial transactions
A chart of accounts is a complete, numbered listing of all accounts used in an entity's general ledger, organized by category (assets, liabilities, equity, revenues, expenses).
Accounting Online Program Accounting Information Systems 2
Which type of file in an AIS stores permanent, reference information such as customer names and addresses?