B. Acy Bachelor of Accountancy Accounting Information Systems 1 — Questions and Answers
Question 1: Which component of an accounting information system (AIS) captures raw financial data from business transactions?
- Output devices
- Data storage
- Input devices and source documents (Correct answer)
- Report generators
Correct answer: Input devices and source documents
Source documents and input devices capture transaction data at the point of origin for processing by the AIS.
Question 2: In the revenue cycle of an AIS, which event triggers the billing process?
- Receipt of customer payment
- Shipment of goods to the customer (Correct answer)
- Customer places an order
- Goods are received into inventory
Correct answer: Shipment of goods to the customer
Billing is triggered when goods are shipped, creating the obligation for the customer to pay.
Question 3: A relational database organizes data into:
- Hierarchical trees
- Sequential flat files
- Two-dimensional tables linked by keys (Correct answer)
- Network nodes
Correct answer: Two-dimensional tables linked by keys
Relational databases store data in tables (relations) and use primary and foreign keys to link related tables.
Question 4: Which internal control is designed to prevent a single employee from controlling all aspects of a transaction?
- Audit trail
- Segregation of duties (Correct answer)
- Access controls
- Physical safeguards
Correct answer: Segregation of duties
Segregation of duties divides transaction authorization, custody, and record-keeping among different employees to reduce fraud risk.
Question 5: The expenditure cycle in an AIS primarily handles which business process?
- Selling goods to customers
- Purchasing and paying for goods and services (Correct answer)
- Managing employee payroll
- Recording long-term investments
Correct answer: Purchasing and paying for goods and services
The expenditure cycle encompasses purchasing goods/services from vendors, receiving them, and making payment.
Question 6: An audit trail in an AIS allows auditors to:
- Prevent unauthorized access to the system
- Trace transactions from source documents through the ledger (Correct answer)
- Automatically detect errors in data entry
- Encrypt sensitive financial data
Correct answer: Trace transactions from source documents through the ledger
An audit trail provides a chronological record linking each transaction back to its source, supporting verification and review.
B. Acy Bachelor of Accountancy Accounting Information Systems 1
Which component of an accounting information system (AIS) captures raw financial data from business transactions?