WGU D217 CHAPTER 1-16 AND ALL UNIT QUIZES
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?
A. Transaction Processing System (TPS)
B. Management Information System (MIS)
C. General Ledger System (GLS)
D. Management Reporting System (MRS).,
D
The MRS subsystem of the AIS provides management with special reports that aid in
budgeting and forecasting.
Which information does the management reporting system (MRS) provide?
A. Ledger balances
B. Financial statements
C. Variance reports
D. Tax returns
C
The MRS provides the internal information needed to run a business (such as variance
reports).
Useful information has the following characteristics: relevance timeliness,
accuracy, completeness, and summarization.
What happens if the information is untimely?
A. The decision maker reaches the optimal conclusion.
B. The information addresses problem-specific concepts.
C. The decision maker wastes resources analyzing outdated information.
D. The information is useful only to upper management.,
C
The decision maker spends time and resources on the outdated information, which
delays the optimal decision.
Useful information has the following characteristics: relevance timeliness,
accuracy, completeness, and summarization.
What happens if the information is inaccurate?
A. The decision maker receives statistically significant information.
B. The decision maker receives problem-specific information.
C. The decision maker receives materially wrong information.
D. The decision maker receives outdated information.,
,C
The decision maker needs information that has no material errors.
Which important information does external feedback about the level of
uncollected customer accounts indicate to the management information system?
A. The organization needs to review its credit-granted policies.
B. The organization needs to corroborate the external feedback with the internal
feedback.
C. The organization needs more feedback about the customer accounts.
D. The organization has appropriate collected customer accounts.
A
The uncollected customer accounts are an indication that some customers have
received too much credit, and management should review those policies.
What is a type of data source for the accounting information system (AIS)?
A. The manager receives a request for information from a prospective customer.
B. The bank requests an audit before it can approve a loan.
C. The accountant researches the current applicable corporate tax rates.
D. Raw material is moved into work-in-process.
D
Transferring raw material into work-in-process is an internal transaction that involves the
movement of resources within the organization. This is a data source for AIS.
Why would an organization decide to develop its own custom information
system?
A. It has unique information needs.
B. It has no specialized IT department.
C. It is pressed for time.
D. It has a fixed budget.
A
An organization would develop its own custom information system when there is no
readily available solution for its information needs.
An objective of internal control is to mitigate the risk from errors and fraud.
What is the primary risk associated with revenue cycle transactions?
A. Inaccurately recording sales and cash receipt transactions in journals and
accounts.
B. Selling to creditworthy customers.
C. Authorized access to accounting records and confidential reports.
D. Shipping customers the correct items or correct quantities.
A
,Recording sales and cash receipt transactions in journals and accounts must be
accurate.
What does the letter N in an inverted triangle mean in a system flowchart?
A. It is a temporary file using a numeric filing system.
B. It is a temporary file
and it is new to the system.
C. It is a permanent file using a numeric filing system.
D. It is a permanent file, and it is new to the system.,
A
The inverted triangle means that it is a temporary file, and the N means that it uses a
numeric filing system.
Which digital computer file contains account data that are updated by
transactions and includes the general ledger and subsidiary ledgers?
A. Archive file
B. Transaction file
C. Master file
D. Reference file
C
The general ledger and subsidiary ledgers are examples of master files.
How would shipping logs be depicted in a system flowchart?
A. Parallelogram symbol
B. Bucket-shaped symbol
C. Oval object symbol
D. Inverted triangle symbol
A
The parallelogram symbol is used to depict many types of hard-copy accounting
records.
What is the circular symbol labeled A in the system flowchart?
A. This is an icon to show manual entry and hard copies of documents for a
section of the process.
B. This is an on-page connector used to replace flow lines that otherwise would
cause excessive clutter on the page.
C. This is a connector used to show the distribution of services to vendors
outside of an organization who will now control the materials.
D. This is a tool used to show the beginning of a series of steps.
B
The connector replaces the lines that signify the movement. Lines should be used
, whenever possible to promote clarity. Restricted use of connectors, however, can
improve the readability of a flowchart.
What is an advantage of sequential codes?
A. Sequential coding supports the reconciliation of a batch of transactions at the
end of processing.
B. Sequential codes are assigned to digital documents by the computer
application when they are created.
C. Sequential coding schemes are difficult to change when changes are needed.
D. Sequential codes carry no information beyond their order in the sequence.
A
If the transaction processing system detects any gaps in the sequence of transaction
numbers, it alerts management to the possibility of a missing or misplaced transaction.
Why is there no lag time with real-time systems?
A. Real-time systems process transactions individually when the events occur.
B. Real-time systems process transactions at the end of each business day.
C. All real-time transactions are exactly the same.
D. Real-time systems assemble transactions into groups for processing.
A
Because transactions happen at the same time, no time lags exist between occurrence
and processing.
What does efficiency mean in the data collection process?
A. Collecting data only once
B. Collecting data that are free from material errors
C. Collecting valid data
D. Collecting only data relevant to the user's needs
A
Efficiency in data collection means that data is collected only once.
Useful information has the following characteristics: relevance timeliness,
accuracy, completeness, and summarization.
What happens if the information is incomplete?
A. The information can be used only by upper management.
B. The user takes the appropriate action based on the available information.
C. The decision maker does not have enough information in order to act.
D. Statistical procedures can always be used to reach an optimal decision based
on the available information.,
C
The decision maker is using an incomplete set of information, which leads to either
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?
A. Transaction Processing System (TPS)
B. Management Information System (MIS)
C. General Ledger System (GLS)
D. Management Reporting System (MRS).,
D
The MRS subsystem of the AIS provides management with special reports that aid in
budgeting and forecasting.
Which information does the management reporting system (MRS) provide?
A. Ledger balances
B. Financial statements
C. Variance reports
D. Tax returns
C
The MRS provides the internal information needed to run a business (such as variance
reports).
Useful information has the following characteristics: relevance timeliness,
accuracy, completeness, and summarization.
What happens if the information is untimely?
A. The decision maker reaches the optimal conclusion.
B. The information addresses problem-specific concepts.
C. The decision maker wastes resources analyzing outdated information.
D. The information is useful only to upper management.,
C
The decision maker spends time and resources on the outdated information, which
delays the optimal decision.
Useful information has the following characteristics: relevance timeliness,
accuracy, completeness, and summarization.
What happens if the information is inaccurate?
A. The decision maker receives statistically significant information.
B. The decision maker receives problem-specific information.
C. The decision maker receives materially wrong information.
D. The decision maker receives outdated information.,
,C
The decision maker needs information that has no material errors.
Which important information does external feedback about the level of
uncollected customer accounts indicate to the management information system?
A. The organization needs to review its credit-granted policies.
B. The organization needs to corroborate the external feedback with the internal
feedback.
C. The organization needs more feedback about the customer accounts.
D. The organization has appropriate collected customer accounts.
A
The uncollected customer accounts are an indication that some customers have
received too much credit, and management should review those policies.
What is a type of data source for the accounting information system (AIS)?
A. The manager receives a request for information from a prospective customer.
B. The bank requests an audit before it can approve a loan.
C. The accountant researches the current applicable corporate tax rates.
D. Raw material is moved into work-in-process.
D
Transferring raw material into work-in-process is an internal transaction that involves the
movement of resources within the organization. This is a data source for AIS.
Why would an organization decide to develop its own custom information
system?
A. It has unique information needs.
B. It has no specialized IT department.
C. It is pressed for time.
D. It has a fixed budget.
A
An organization would develop its own custom information system when there is no
readily available solution for its information needs.
An objective of internal control is to mitigate the risk from errors and fraud.
What is the primary risk associated with revenue cycle transactions?
A. Inaccurately recording sales and cash receipt transactions in journals and
accounts.
B. Selling to creditworthy customers.
C. Authorized access to accounting records and confidential reports.
D. Shipping customers the correct items or correct quantities.
A
,Recording sales and cash receipt transactions in journals and accounts must be
accurate.
What does the letter N in an inverted triangle mean in a system flowchart?
A. It is a temporary file using a numeric filing system.
B. It is a temporary file
and it is new to the system.
C. It is a permanent file using a numeric filing system.
D. It is a permanent file, and it is new to the system.,
A
The inverted triangle means that it is a temporary file, and the N means that it uses a
numeric filing system.
Which digital computer file contains account data that are updated by
transactions and includes the general ledger and subsidiary ledgers?
A. Archive file
B. Transaction file
C. Master file
D. Reference file
C
The general ledger and subsidiary ledgers are examples of master files.
How would shipping logs be depicted in a system flowchart?
A. Parallelogram symbol
B. Bucket-shaped symbol
C. Oval object symbol
D. Inverted triangle symbol
A
The parallelogram symbol is used to depict many types of hard-copy accounting
records.
What is the circular symbol labeled A in the system flowchart?
A. This is an icon to show manual entry and hard copies of documents for a
section of the process.
B. This is an on-page connector used to replace flow lines that otherwise would
cause excessive clutter on the page.
C. This is a connector used to show the distribution of services to vendors
outside of an organization who will now control the materials.
D. This is a tool used to show the beginning of a series of steps.
B
The connector replaces the lines that signify the movement. Lines should be used
, whenever possible to promote clarity. Restricted use of connectors, however, can
improve the readability of a flowchart.
What is an advantage of sequential codes?
A. Sequential coding supports the reconciliation of a batch of transactions at the
end of processing.
B. Sequential codes are assigned to digital documents by the computer
application when they are created.
C. Sequential coding schemes are difficult to change when changes are needed.
D. Sequential codes carry no information beyond their order in the sequence.
A
If the transaction processing system detects any gaps in the sequence of transaction
numbers, it alerts management to the possibility of a missing or misplaced transaction.
Why is there no lag time with real-time systems?
A. Real-time systems process transactions individually when the events occur.
B. Real-time systems process transactions at the end of each business day.
C. All real-time transactions are exactly the same.
D. Real-time systems assemble transactions into groups for processing.
A
Because transactions happen at the same time, no time lags exist between occurrence
and processing.
What does efficiency mean in the data collection process?
A. Collecting data only once
B. Collecting data that are free from material errors
C. Collecting valid data
D. Collecting only data relevant to the user's needs
A
Efficiency in data collection means that data is collected only once.
Useful information has the following characteristics: relevance timeliness,
accuracy, completeness, and summarization.
What happens if the information is incomplete?
A. The information can be used only by upper management.
B. The user takes the appropriate action based on the available information.
C. The decision maker does not have enough information in order to act.
D. Statistical procedures can always be used to reach an optimal decision based
on the available information.,
C
The decision maker is using an incomplete set of information, which leads to either
