WGU D217 ACCOUNTING INFORMATION
SYSTEMS FINAL STUDY SHEET 2026
SOLVED QUESTIONS FULLY CORRECT
⫸ Information Flow (vertical flow) Answer: Distributes information
downward from senior managers to junior managers and operations
personnel in the form of instructions, quotas, and budgets. In addition,
summarized information pertaining to operations and other activities
flows upward to managers at all levels. Management uses this
information to support its various planning and control functions.
⫸ Information Flow (exchanges day to day) Answer: Exchanges with
trading partners include customer sales and billing information, purchase
information for suppliers, and inventory receipts information.
Stakeholders are external entities with a direct or indirect interest in the
firm. Stockholders, financial institutions, and government agencies are
examples of external stakeholders. Information exchanges with these
groups include financial statements, tax returns, and stock transaction
information
⫸ General Ledger System (GSL) Answer: Hub connected to other
systems of the firm threw spokes of information flows. Transaction
cycles process individual events that are recorded in special journals in
subsidiary accounts. Summarizes of these transactions, and never source
documents themselves flow into the GSL and become sources of imput
for management and financial reporting systems.
,⫸ Financial Reporting Process Answer: Final step in the over all
accounting process. The process begins with a clean slate at the start of a
new fiscal year. Only the balance sheet (permanent) accounts are carried
forward from the previous year. From this point, the following steps
occur:
1)Capture the transaction. Within each transaction cycle, transactions are
recorded in the appropriate transaction file.
2)Record in special journal. Each transaction is entered into the journal.
Recall that frequently occurring classes of transactions, such as sales, are
captured in special journals. Those that occur infrequently are recorded
in the general journal or directly on a journal voucher.
3)Post to subsidiary ledger. The details of each transaction are posted to
the affected subsidiary accounts.
4)Post to general ledger. Periodically, journal vouchers, summarizing the
entries made to the special journals and subsidiary ledgers, are prepared
and posted to the GL accounts. The frequency of updates to the GL will
be determined by the degree of system integration.
5)Prepare the unadjusted trial balance. At the end of the accounting
period, the ending balance of each account in the GL is placed in a
worksheet and evaluated in total for debit-credit equality.
6)Make adjusting entries. Adjusting entries are made to the worksheet to
correct errors and to reflect unrecorded transactions during the period,
such as depreciation.
7)Journalize and post adjusting entries. Journal vouchers for the
adjusting entries are prepared and posted to the appropriate accounts in
the GL.
, 8)Prepare the adjusted trial balance. From the adjusted balances, a trial
balance is prepared that contains all the entries that should be reflected
in the financial statements.
9)Prepare the financial statements. The balance sheet, income statement,
and statement of cash flows are prepared using the a
⫸ Accounting Information Systems (AIS) Answer: Specialized subset
of information systems that processes financial transactions, AIS
applications process financial transactions. Framework for Information
from Transaction Processing Systems, General Ledger Systems, and
Management Reporting Systems flow into AIS.
⫸ centralized data processing Answer: Model under which all data
processing is performed by one or more large computers, housed at a
central site, that serve users throughout the organization.
⫸ Transaction Processing System (TPS) Answer: which supports daily
business operations with numerous reports, documents, and messages
for users throughout the organization; Three transaction cycles process
most of the firm's economic activity: the expenditure cycle, the
conversion cycle, and the revenue cycle
⫸ Expenditure Cycle Answer: Business activities begin with the
acquisition of materials, property, and labor in exchange for cash.
Separate subsystems of the cycle processes are AP systems, Cash
Disbursement systems, payroll and fixed asset system.
SYSTEMS FINAL STUDY SHEET 2026
SOLVED QUESTIONS FULLY CORRECT
⫸ Information Flow (vertical flow) Answer: Distributes information
downward from senior managers to junior managers and operations
personnel in the form of instructions, quotas, and budgets. In addition,
summarized information pertaining to operations and other activities
flows upward to managers at all levels. Management uses this
information to support its various planning and control functions.
⫸ Information Flow (exchanges day to day) Answer: Exchanges with
trading partners include customer sales and billing information, purchase
information for suppliers, and inventory receipts information.
Stakeholders are external entities with a direct or indirect interest in the
firm. Stockholders, financial institutions, and government agencies are
examples of external stakeholders. Information exchanges with these
groups include financial statements, tax returns, and stock transaction
information
⫸ General Ledger System (GSL) Answer: Hub connected to other
systems of the firm threw spokes of information flows. Transaction
cycles process individual events that are recorded in special journals in
subsidiary accounts. Summarizes of these transactions, and never source
documents themselves flow into the GSL and become sources of imput
for management and financial reporting systems.
,⫸ Financial Reporting Process Answer: Final step in the over all
accounting process. The process begins with a clean slate at the start of a
new fiscal year. Only the balance sheet (permanent) accounts are carried
forward from the previous year. From this point, the following steps
occur:
1)Capture the transaction. Within each transaction cycle, transactions are
recorded in the appropriate transaction file.
2)Record in special journal. Each transaction is entered into the journal.
Recall that frequently occurring classes of transactions, such as sales, are
captured in special journals. Those that occur infrequently are recorded
in the general journal or directly on a journal voucher.
3)Post to subsidiary ledger. The details of each transaction are posted to
the affected subsidiary accounts.
4)Post to general ledger. Periodically, journal vouchers, summarizing the
entries made to the special journals and subsidiary ledgers, are prepared
and posted to the GL accounts. The frequency of updates to the GL will
be determined by the degree of system integration.
5)Prepare the unadjusted trial balance. At the end of the accounting
period, the ending balance of each account in the GL is placed in a
worksheet and evaluated in total for debit-credit equality.
6)Make adjusting entries. Adjusting entries are made to the worksheet to
correct errors and to reflect unrecorded transactions during the period,
such as depreciation.
7)Journalize and post adjusting entries. Journal vouchers for the
adjusting entries are prepared and posted to the appropriate accounts in
the GL.
, 8)Prepare the adjusted trial balance. From the adjusted balances, a trial
balance is prepared that contains all the entries that should be reflected
in the financial statements.
9)Prepare the financial statements. The balance sheet, income statement,
and statement of cash flows are prepared using the a
⫸ Accounting Information Systems (AIS) Answer: Specialized subset
of information systems that processes financial transactions, AIS
applications process financial transactions. Framework for Information
from Transaction Processing Systems, General Ledger Systems, and
Management Reporting Systems flow into AIS.
⫸ centralized data processing Answer: Model under which all data
processing is performed by one or more large computers, housed at a
central site, that serve users throughout the organization.
⫸ Transaction Processing System (TPS) Answer: which supports daily
business operations with numerous reports, documents, and messages
for users throughout the organization; Three transaction cycles process
most of the firm's economic activity: the expenditure cycle, the
conversion cycle, and the revenue cycle
⫸ Expenditure Cycle Answer: Business activities begin with the
acquisition of materials, property, and labor in exchange for cash.
Separate subsystems of the cycle processes are AP systems, Cash
Disbursement systems, payroll and fixed asset system.
