100 Verified Correct Answers

AIS Practice Problems with Complete Solutions 100% Verified Correct Answers Which of the following is NOT one of the five major business processes or transaction cycles

• Expenditure
• Production
• Human Resource & Payroll
• Revenue
• Financing
• All of the above are major cycles. - Correct Answer All of the above are major cycles.

Which of the following is NOT a characteristic of useful information?

• Relevant
• Verifiable
• Timely
• Accessible
• Cost-effective - Correct Answer e. Cost-effective

Accounting Information Systems (AIS) is most likely applicable to which area of accounting?

• Tax accounting
• Public Accounting
• Management consulting
• All of the above are applicable to AIS.
• None of the above - Correct Answer d. All of the above are applicable to AIS.

AIS adds value to an organization by:

• Improving efficiency.
• Sharing knowledge.
• Improving the internal control structure.
• Answers a and b only.
• Answers a, b, and c. - Correct Answer e. Answers a, b and c 1 / 3

Which of the following does not influence the design of an Accounting Information System (AIS)?

• Organizational culture
• Information Technology
• Business strategy
• Legal environment - Correct Answer d. Legal environment

What is data?

• All of the facts that are collected, stored, and processed by an information system
• All of the debit and credit information about each transaction
• The output which results from the input of information
• The same thing as information - Correct Answer All of the facts that are collected, stored, and

processed by an information system Information can improve decision making in what way?

• It identifies situations requiring management action.
• It provides a basis for choosing among alternative actions.
• Provides valuable feedback that can be used to improve future decisions.
• All of the above. - Correct Answer d. all of the above

Which of the following is NOT a major business cycle?

• The production cycle
• The revenue cycle
• The financing cycle
• The cash receipts cycle
• The payroll cycle - Correct Answer d. The cash receipts cycle

Which of the following is a major activity for the revenue cycle?

• Receive items
• Forecast production
• Record time spent on specific jobs 2 / 3

• Deliver or ship order - Correct Answer d. Deliver or ship order

Which of the following would be an activity associated with the human resources/payroll cycle?

• Deposit cash receipts
• Adjust customer account
• Pay for items
• Record time worked by employees - Correct Answer d. Record time worked by employees

Information is data that has been organized and processed.

• True b. False - Correct Answer True

Information that is timely is free from error or bias.

• True b. False - Correct Answer False

An AIS designer, who is very competent with information technology skills, will be successful in designing an information system regardless of his/her understanding of the organization that he/she is designing for.

• True
• False - Correct Answer B. False

A component of an Accounting Information System are the people who use the system.

• True
• False - Correct Answer True

Which of the following is considered a disadvantage of an Enterprise Resource Planning (ERP) system?

• Data input is captured once
• Time required for implementation
• Customer relationship management
• Increased productivity - Correct Answer b. Time required for implementation

Which of the following is NOT an element of data processing?

• / 3