WGU D217 ACCOUNTING INFORMATION SYSTEMS
EXAM 2025-2026 VERIFIED QUESTIONS AND
CORRECT ANSWERS GRADED A+
The transaction processing system includes which of the following?
"the conversion cycle." The conversion cycle is included within the transaction
processing system because it records cost accounting and production activities.
The goal of data processing is
"the production of useful information." Data is not information. Data is data. Data
needs to be consolidated, processed, summarized and converted into information
for management decision-making.
Which of the following is an external end user?
"tax authorities." Tax authorities are external users who expect an accurate
accounting of tax due. In addition, the non-discretionary reports from the
accounting information system provide what is needed for tax authorities to
evaluate tax liability.
An appraisal function housed within the organization that performs a wide range of
services for management is
"internal auditing." An appraisal function housed within the organization that
performs a wide range of services for management is internal auditing. Internal
auditors verify the accuracy and security of the information systems and also work
with various business segments to secure and optimize processes.
,What factor conceptually distinguishes external auditing and internal auditing?
"constituencies." External auditing and internal auditing are distinguished by
constituencies. Internal auditors focus on company management. External auditors
perform services to assure external investors, tax and regulatory authorities that the
financial statements are complete and accurate.
MOD 2- Which system is part of the expenditure cycle?
"cash disbursements." Cash disbursements is part of the expenditure cycle. Cash
disbursement is the way a firm pays vendors, creditors, and employees.
Both the revenue and the expenditure cycle can be viewed as having two key parts.
These key parts are
"physical and financial." The two key parts of the revenue and expenditure cycle
are physical and financial. The physical portion refers to the documents that
support the necessary transactions; the financial portion refers to the effect that the
appropriate transactions have on assets and equity.
System flowcharts do which one of the following?
The correct answer is "represent relationships between key elements of manual and
computer systems." System flowcharts represent relationships between key
elements of manual and computer systems. The system flowchart is a graphic
representation of the process that is used by the programmer/analyst and systems
auditors to understand the flow of data through the program or system and the
files/functions that are involved from input to storage to output.
,Which symbol is used to represent a data source or destination of documents and
reports in a system flowchart?
"oval." This symbol is used to represent a data source or destination of documents
and reports.
Which accounting application is least suited to batch processing?
"sales order processing." Sales order processing is least suited to batch processing.
The production process needs to know as soon as possible if customer orders are
required. At the same time, it is important to know what the potential revenue is at
any given time.
In contrast to a real-time system, in a batch processing system
"there is a lag between the time when the economic event occurs, and the financial
records are updated." Batch systems group transactions and they process when it is
most efficient, often on an hourly, daily, or weekly basis. Batch systems process
transactions in bulk when required or when convenient. These systems are
appropriate when there is no urgency to the information.
In contrast to a batch processing system, in a real-time system
"processing takes place when the economic event occurs." In a real-time system
processing takes place when the economic event occurs. For example, when an
item is scanned at your local grocery store during checkout, the store inventory,
daily sales, and cashier productivity systems are updated immediately.
, MOD 1 - The primary input to the transaction processing system is
"a financial transaction." The financial transaction is the primary input to the
transaction processing system. Financial transactions are economic events that
affect assets and equities and are reflected on the financial statements.
The major difference between the financial reporting system (FRS) and the
management reporting system (MRS) is the
"FRS provides information to external users; the MRS provides information to
internal users." The FRS produces the financial statements as required by law. The
MRS provides information to management for decision making such as budgets,
forecasts, customer orders.
The author distinguishes between the accounting information system and the
management information system based on
"whether the transactions are financial or nonfinancial that directly affect the
processing of financial transactions." The AIS captures financial transactions to
support systems around the revenue, expenditure and conversion cycles. The MIS
captures nonfinancial transactions to support systems for marketing, inventory,
manufacturing and human resources.
An example of a financial transaction is
"the purchase of computer." The purchase of a computer adds an asset to the
organization.
An example of a nonfinancial transaction is
EXAM 2025-2026 VERIFIED QUESTIONS AND
CORRECT ANSWERS GRADED A+
The transaction processing system includes which of the following?
"the conversion cycle." The conversion cycle is included within the transaction
processing system because it records cost accounting and production activities.
The goal of data processing is
"the production of useful information." Data is not information. Data is data. Data
needs to be consolidated, processed, summarized and converted into information
for management decision-making.
Which of the following is an external end user?
"tax authorities." Tax authorities are external users who expect an accurate
accounting of tax due. In addition, the non-discretionary reports from the
accounting information system provide what is needed for tax authorities to
evaluate tax liability.
An appraisal function housed within the organization that performs a wide range of
services for management is
"internal auditing." An appraisal function housed within the organization that
performs a wide range of services for management is internal auditing. Internal
auditors verify the accuracy and security of the information systems and also work
with various business segments to secure and optimize processes.
,What factor conceptually distinguishes external auditing and internal auditing?
"constituencies." External auditing and internal auditing are distinguished by
constituencies. Internal auditors focus on company management. External auditors
perform services to assure external investors, tax and regulatory authorities that the
financial statements are complete and accurate.
MOD 2- Which system is part of the expenditure cycle?
"cash disbursements." Cash disbursements is part of the expenditure cycle. Cash
disbursement is the way a firm pays vendors, creditors, and employees.
Both the revenue and the expenditure cycle can be viewed as having two key parts.
These key parts are
"physical and financial." The two key parts of the revenue and expenditure cycle
are physical and financial. The physical portion refers to the documents that
support the necessary transactions; the financial portion refers to the effect that the
appropriate transactions have on assets and equity.
System flowcharts do which one of the following?
The correct answer is "represent relationships between key elements of manual and
computer systems." System flowcharts represent relationships between key
elements of manual and computer systems. The system flowchart is a graphic
representation of the process that is used by the programmer/analyst and systems
auditors to understand the flow of data through the program or system and the
files/functions that are involved from input to storage to output.
,Which symbol is used to represent a data source or destination of documents and
reports in a system flowchart?
"oval." This symbol is used to represent a data source or destination of documents
and reports.
Which accounting application is least suited to batch processing?
"sales order processing." Sales order processing is least suited to batch processing.
The production process needs to know as soon as possible if customer orders are
required. At the same time, it is important to know what the potential revenue is at
any given time.
In contrast to a real-time system, in a batch processing system
"there is a lag between the time when the economic event occurs, and the financial
records are updated." Batch systems group transactions and they process when it is
most efficient, often on an hourly, daily, or weekly basis. Batch systems process
transactions in bulk when required or when convenient. These systems are
appropriate when there is no urgency to the information.
In contrast to a batch processing system, in a real-time system
"processing takes place when the economic event occurs." In a real-time system
processing takes place when the economic event occurs. For example, when an
item is scanned at your local grocery store during checkout, the store inventory,
daily sales, and cashier productivity systems are updated immediately.
, MOD 1 - The primary input to the transaction processing system is
"a financial transaction." The financial transaction is the primary input to the
transaction processing system. Financial transactions are economic events that
affect assets and equities and are reflected on the financial statements.
The major difference between the financial reporting system (FRS) and the
management reporting system (MRS) is the
"FRS provides information to external users; the MRS provides information to
internal users." The FRS produces the financial statements as required by law. The
MRS provides information to management for decision making such as budgets,
forecasts, customer orders.
The author distinguishes between the accounting information system and the
management information system based on
"whether the transactions are financial or nonfinancial that directly affect the
processing of financial transactions." The AIS captures financial transactions to
support systems around the revenue, expenditure and conversion cycles. The MIS
captures nonfinancial transactions to support systems for marketing, inventory,
manufacturing and human resources.
An example of a financial transaction is
"the purchase of computer." The purchase of a computer adds an asset to the
organization.
An example of a nonfinancial transaction is
