AIS Practice Questions Exam 1 Questions with Correct Answers What is the basic document created in the billing process? - Correct Answer Sales Invoice Who should be responsible for establishing the credit limit for new customer, or increasing an existing customer's credit limit? - Correct Answer Credit manager Threats during the sales order entry process include: - Correct Answer incomplete or inaccurate customer orders Inventory information is provided in real time by a firm's accounting information system. The accuracy of this information is questionable, however, since the production manager often reports stock outs of components that the system indicates are in stock. Which of the following characteristics of useful information is absent in the situation described above? - Correct Answer reliable Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Friday, who manages the carving process. Monday is the newest employee. She collects the coconuts. Tuesday takes calls from unhappy customers. Wednesday tosses finished coconuts into the sea, sending them to the wholesaler. Thursday sends smoke signals to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Monday performing? - Correct Answer Inbound logistics An employee's hours worked would be recorded in - Correct Answer a payroll transaction file Which of the following is the first decision that needs to be made in the revenue cycle? - Correct Answer Should credit be extended to customers?File-oriented approaches create problems for organizations because of - Correct Answer multiple master files John Pablo works in the accounting department of a multinational manufacturing company. His job includes updating accounts payable based on purchase orders and checks. His responsibilities are part of the company's - Correct Answer expenditure cycle 1 / 2
The collection of employee time sheets is part of the transaction cycle? - Correct Answer the human resources cycle Pre-numbering of source documents helps to verify that - Correct Answer all transactions have been recorded A specialized journal - Correct Answer simplifies the process of recording large numbers of repetitive transactions In the ________ method of tracking accounts receivable, customers pay according to the amount showing on their monthly statement and payments are applied against the total account balance. - Correct Answer balance forward The packing slip - Correct Answer lists the quantity and description of each item included in the shipment A way to incorporate the advantages or EDI with the EFT is - Correct Answer Financial Electronic Data Interchange The passage of Sarbanes Oxley Act - Correct Answer all of the above When preparing a document flowchart, the names or organizational departments or job functions should appear in the - Correct Answer column headings Which is a true statement regarding a document flowchart? - Correct Answer A document flowchart is particularly useful in analyzing the adequacy of internal control procedures.The American Institute of Certified Public Accountants (AICPA) has recognized the importance of AIS and the major impact information technology has on the area of accounting. To recognize individual CPAs who have met educational and experiential requirements in this area, the group formally created the designation known as - Correct Answer the Certified Information Technology Professional In which transaction cycle would information for paying employees be most likely to pass between internal and external accounting information systems? - Correct Answer the human resources/payroll cycle
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