WGU D217 ACCOUNTING INFORMATION SYSTEMS
TEST QUESTIONS AND ANSWERS/STUDY GUIDE
Which of the following is a problem usually associated with the flat-file approach to data
management?
data redundancy
Which problem is characteristically associated with the flat-file approach to data
management?
the inability to determine what data is available
A description of the physical arrangement of records in the database is
the internal view.
Which of the following may provide many distinct views of the database?
the user view
The update anomaly in unnormalized tables
occurs because of data redundancy.
,The deletion anomaly in unnormalized tables
may result in the loss of important data.
Which document triggers the revenue cycle?
the customer purchase order
Which department is least likely to be involved in the revenue cycle?
The accounts payable department is least likely to be involved in the revenue cycle.
Accounts payable is charged with managing the segment of the expenditure cycle that
involves payments to vendors and creditors.
The purpose of the sales invoice is to
The purpose of the sales invoice is to bill the customer. The sales invoice will be sent to
the customer for payment. At the same time the invoice will also update inventory, send
a journal to the general ledger, and record the sales journal.
Which type of control is considered a compensating control for customer payments?
Supervision is a compensating control for customer payments. Compensating controls
are put in place when more effective controls are deemed too difficult or costly to
implement. Supervision is the simplest and most common form of compensating control.
Commercial accounting systems have fully integrated modules. The word "integrated"
means that
The word "integrated" means that the transfer of information among modules occurs
automatically. In a fully integrated system, the shipping advice will generate the request
,for invoice automatically. This eliminates the risk that the invoice request is not
processed or is processed for a different amount.
A copy of the purchase order (PO) is sent to the
A copy of the purchase order (PO) is sent to the vendor. The purchase order is the
formal document that tells the vendor what material is needed, at what price, in what
quantity and on what date.
The departments involved in the purchasing process are purchasing, receiving,
inventory control and
The departments involved in the purchasing process are purchasing, receiving,
inventory control and accounts payable. Accounts payable completes the purchasing
process by authorizing and executing the cash disbursement based on a signal from
receiving or inventory control.
When a cash disbursement in payment of an accounts payable is recorded
When a cash disbursement in payment of an accounts payable is recorded the liability
account is decreased. On the Balance Sheet, accounts payable is a current liability.
When a cash disbursement is recorded, the liability will be reduced.
The greatest risk of misappropriation of funds occurs in
The greatest risk of misappropriation of funds occurs in accounts payable. This may
take the form of payments for goods not ordered or received and to vendors that do not
exist. The risk can be reduced through supervision, segregation of duties, independent
verification, or automated processes.
, In a firm with proper segregation of duties, adequate supervision as a compensating
control is still necessary in
In a firm with proper segregation of duties, adequate supervision is most critical in
receiving. Every day materials arrive on the receiving dock. Until those receipts are
recorded in the system, they are invisible to anyone but the receivers and their
supervisors. Supervision is a compensating control appropriate before more automated
controls take effect. Scanning technology and automated three-way match are
technological controls that reduce risk.
The fixed asset system records the
The fixed asset system records the purchase of a new plant. The fixed asset system
records property, plant, and equipment used in the operation of the business. These
represent the largest investments of the firm.
In a technology enabled payroll system, Personnel, Time Keeping, Payroll, and
Accounts Payable connect to which department to pay employees?
In a technology-enabled payroll system, Personnel, Time Keeping, Payroll and Accounts
Payable connect to cash disbursements to pay employees. Personnel inputs the basic
employee information and rate of pay; Time Keeping collects hours worked and verifies
time cards; Payroll inputs the hours worked into the payroll system which calculates
gross and net pay, taxes, and other deductions; Accounts Payable approves the
payment amount; and finally cash disbursements issues pay checks or direct deposit.
The general ledger will be updated after the cash disbursement occurs.
An Important Reconciliation In The Payroll System Is
An Important Reconciliation In The Payroll System Is That The General Ledger
Compares The Labor Distribution Summary From Cost Accounting To The
Disbursement Voucher From Accounts Payable. Cost Accounting Will Be Tracking The
Job Tickets To Properly Account For Work In Process. Accounts Payable Will Produce A
Disbursement Voucher Based On Input From Timecards. Job Tickets And Timecards
Should Match When Hours And Hourly Rates Are Extended.
TEST QUESTIONS AND ANSWERS/STUDY GUIDE
Which of the following is a problem usually associated with the flat-file approach to data
management?
data redundancy
Which problem is characteristically associated with the flat-file approach to data
management?
the inability to determine what data is available
A description of the physical arrangement of records in the database is
the internal view.
Which of the following may provide many distinct views of the database?
the user view
The update anomaly in unnormalized tables
occurs because of data redundancy.
,The deletion anomaly in unnormalized tables
may result in the loss of important data.
Which document triggers the revenue cycle?
the customer purchase order
Which department is least likely to be involved in the revenue cycle?
The accounts payable department is least likely to be involved in the revenue cycle.
Accounts payable is charged with managing the segment of the expenditure cycle that
involves payments to vendors and creditors.
The purpose of the sales invoice is to
The purpose of the sales invoice is to bill the customer. The sales invoice will be sent to
the customer for payment. At the same time the invoice will also update inventory, send
a journal to the general ledger, and record the sales journal.
Which type of control is considered a compensating control for customer payments?
Supervision is a compensating control for customer payments. Compensating controls
are put in place when more effective controls are deemed too difficult or costly to
implement. Supervision is the simplest and most common form of compensating control.
Commercial accounting systems have fully integrated modules. The word "integrated"
means that
The word "integrated" means that the transfer of information among modules occurs
automatically. In a fully integrated system, the shipping advice will generate the request
,for invoice automatically. This eliminates the risk that the invoice request is not
processed or is processed for a different amount.
A copy of the purchase order (PO) is sent to the
A copy of the purchase order (PO) is sent to the vendor. The purchase order is the
formal document that tells the vendor what material is needed, at what price, in what
quantity and on what date.
The departments involved in the purchasing process are purchasing, receiving,
inventory control and
The departments involved in the purchasing process are purchasing, receiving,
inventory control and accounts payable. Accounts payable completes the purchasing
process by authorizing and executing the cash disbursement based on a signal from
receiving or inventory control.
When a cash disbursement in payment of an accounts payable is recorded
When a cash disbursement in payment of an accounts payable is recorded the liability
account is decreased. On the Balance Sheet, accounts payable is a current liability.
When a cash disbursement is recorded, the liability will be reduced.
The greatest risk of misappropriation of funds occurs in
The greatest risk of misappropriation of funds occurs in accounts payable. This may
take the form of payments for goods not ordered or received and to vendors that do not
exist. The risk can be reduced through supervision, segregation of duties, independent
verification, or automated processes.
, In a firm with proper segregation of duties, adequate supervision as a compensating
control is still necessary in
In a firm with proper segregation of duties, adequate supervision is most critical in
receiving. Every day materials arrive on the receiving dock. Until those receipts are
recorded in the system, they are invisible to anyone but the receivers and their
supervisors. Supervision is a compensating control appropriate before more automated
controls take effect. Scanning technology and automated three-way match are
technological controls that reduce risk.
The fixed asset system records the
The fixed asset system records the purchase of a new plant. The fixed asset system
records property, plant, and equipment used in the operation of the business. These
represent the largest investments of the firm.
In a technology enabled payroll system, Personnel, Time Keeping, Payroll, and
Accounts Payable connect to which department to pay employees?
In a technology-enabled payroll system, Personnel, Time Keeping, Payroll and Accounts
Payable connect to cash disbursements to pay employees. Personnel inputs the basic
employee information and rate of pay; Time Keeping collects hours worked and verifies
time cards; Payroll inputs the hours worked into the payroll system which calculates
gross and net pay, taxes, and other deductions; Accounts Payable approves the
payment amount; and finally cash disbursements issues pay checks or direct deposit.
The general ledger will be updated after the cash disbursement occurs.
An Important Reconciliation In The Payroll System Is
An Important Reconciliation In The Payroll System Is That The General Ledger
Compares The Labor Distribution Summary From Cost Accounting To The
Disbursement Voucher From Accounts Payable. Cost Accounting Will Be Tracking The
Job Tickets To Properly Account For Work In Process. Accounts Payable Will Produce A
Disbursement Voucher Based On Input From Timecards. Job Tickets And Timecards
Should Match When Hours And Hourly Rates Are Extended.
