WGU D217 ACCOUNTING INFORMATION
SYSTEMS COMPREHENSIVE TEST BANK
2026 COMPLETE ANSWERS ACCURATE
⫸ FRS provides information to external users; the MRS provides
information to internal users. Answer: The major difference between the
financial reporting system (FRS) and the management reporting system
(MRS) is the
⫸ whether the transactions are financial or nonfinancial that directly
affect the processing of financial transactions Answer: The author
distinguishes between the accounting information system and the
management information system based on
⫸ the purchase of computer Answer: An example of a financial
transactions is
⫸ log of customer calls Answer: An example of a nonfinancial
transaction is
⫸ the conversion cycle Answer: The transaction processing system
includes which of the following
,⫸ the production of useful information Answer: The goal of data
processing is
⫸ tax authorities Answer: Which of the following is an external end
user?
⫸ internal auditing Answer: An appraisal function housed within the
organization that performs a wide range of services for management is
⫸ constituents Answer: What factor conceptually distinguishes external
auditing and internal auditing?
⫸ cash disbursements Answer: What system is part of the expenditure
cycle?
⫸ physical and financial Answer: Both the revenue and the expenditure
cycle can be viewed as having two parts. These key parts are
⫸ represent relationships between key elements of both manual and
computer systems Answer: System flowcharts do which one of the
following?
⫸ oval Answer: Which symbol is used to represent a data source or
destination of documents and reports in a system flowchart?
,⫸ Sales Order Processing Answer: Which accounting application is
least suited to batch processing?
⫸ there is a lag between the time when the economic event occurs, and
the financial records are updated. Answer: In contrast to a real-time
system, in a batch processing system
⫸ processing takes place when the economic event occurs. Answer: In
contrast to a batch processing system, in a real-time system
⫸ block code Answer: The coding scheme most appropriate for a chart
of accounts is
⫸ a mnemonic code Answer: When a firm wants its coding system to
convey meaning without reference to any other document, it would
choose
⫸ missing or unrecorded documents can be identified. Answer: The
most important advantage of sequential coding is that
⫸ Management Reporting System (MRS) Answer: Li has implemented
a new accounting information system (AIS) to help him manage his
construction company. Li uses the information captured by the system to
plan each project, forecasting the requirements for raw materials and the
cash flow expected. Which AIS subsystem helps Li in planning?
, ⫸ Variance reports Answer: Which information does the management
reporting system (MRS) provide?
⫸ The decision maker wastes resources analyzing outdated information.
Answer: Useful information has the following characteristics: relevance,
timeliness, accuracy, completeness, and summarization. What happens if
the information is old?
⫸ The decision maker receives materially wrong information. Answer:
Useful information has the following characteristics: relevance,
timeliness, accuracy, completeness, and summarization. What happens if
the information is inaccurate?
⫸ The organization needs to review its credit-granting policies. Answer:
Which important information does external feedback about the level of
uncollected customer accounts indicate to the management information
system?
⫸ Raw material is moved into work-in process. Answer: What is a type
of data source for the accounting information system (AIS)?
⫸ It has unique information needs. Answer: Why would an organization
decide to develop its own custom information system?
⫸ Inaccurately recording sales and cash receipts transactions in journals
and accounts. Answer: An objective of internal controls is to mitigate
SYSTEMS COMPREHENSIVE TEST BANK
2026 COMPLETE ANSWERS ACCURATE
⫸ FRS provides information to external users; the MRS provides
information to internal users. Answer: The major difference between the
financial reporting system (FRS) and the management reporting system
(MRS) is the
⫸ whether the transactions are financial or nonfinancial that directly
affect the processing of financial transactions Answer: The author
distinguishes between the accounting information system and the
management information system based on
⫸ the purchase of computer Answer: An example of a financial
transactions is
⫸ log of customer calls Answer: An example of a nonfinancial
transaction is
⫸ the conversion cycle Answer: The transaction processing system
includes which of the following
,⫸ the production of useful information Answer: The goal of data
processing is
⫸ tax authorities Answer: Which of the following is an external end
user?
⫸ internal auditing Answer: An appraisal function housed within the
organization that performs a wide range of services for management is
⫸ constituents Answer: What factor conceptually distinguishes external
auditing and internal auditing?
⫸ cash disbursements Answer: What system is part of the expenditure
cycle?
⫸ physical and financial Answer: Both the revenue and the expenditure
cycle can be viewed as having two parts. These key parts are
⫸ represent relationships between key elements of both manual and
computer systems Answer: System flowcharts do which one of the
following?
⫸ oval Answer: Which symbol is used to represent a data source or
destination of documents and reports in a system flowchart?
,⫸ Sales Order Processing Answer: Which accounting application is
least suited to batch processing?
⫸ there is a lag between the time when the economic event occurs, and
the financial records are updated. Answer: In contrast to a real-time
system, in a batch processing system
⫸ processing takes place when the economic event occurs. Answer: In
contrast to a batch processing system, in a real-time system
⫸ block code Answer: The coding scheme most appropriate for a chart
of accounts is
⫸ a mnemonic code Answer: When a firm wants its coding system to
convey meaning without reference to any other document, it would
choose
⫸ missing or unrecorded documents can be identified. Answer: The
most important advantage of sequential coding is that
⫸ Management Reporting System (MRS) Answer: Li has implemented
a new accounting information system (AIS) to help him manage his
construction company. Li uses the information captured by the system to
plan each project, forecasting the requirements for raw materials and the
cash flow expected. Which AIS subsystem helps Li in planning?
, ⫸ Variance reports Answer: Which information does the management
reporting system (MRS) provide?
⫸ The decision maker wastes resources analyzing outdated information.
Answer: Useful information has the following characteristics: relevance,
timeliness, accuracy, completeness, and summarization. What happens if
the information is old?
⫸ The decision maker receives materially wrong information. Answer:
Useful information has the following characteristics: relevance,
timeliness, accuracy, completeness, and summarization. What happens if
the information is inaccurate?
⫸ The organization needs to review its credit-granting policies. Answer:
Which important information does external feedback about the level of
uncollected customer accounts indicate to the management information
system?
⫸ Raw material is moved into work-in process. Answer: What is a type
of data source for the accounting information system (AIS)?
⫸ It has unique information needs. Answer: Why would an organization
decide to develop its own custom information system?
⫸ Inaccurately recording sales and cash receipts transactions in journals
and accounts. Answer: An objective of internal controls is to mitigate
