AIS FINAL EXAM 2025 With 100%
Correct Answers
An organization can implement which of the following controls to reduce the threat of inventory
theft or damage?
A) review and approval of fixed asset acquisitions
B) document all movement of inventory through the production process
C) better production and planning systems
D) improved and more timely perpetual reporting - CORRECT ANSWER✔✔B
A master production schedule specifies how much of each product is to be produced during the
planning period and when production should commence. Orders, sales forecasts, and finished
goods inventory are then taken into account. True or False?
True
False - CORRECT ANSWER✔✔A
The ________ is a legal contract that defines responsibility for goods that are in transit.
A) bill of lading
B) packing slip
C) back order
D) sales order - CORRECT ANSWER✔✔A
A method for tracking accounts receivable that matches specific invoices and payments from
business—to--business customers is called a(n) ________ method.
A) specific identification
B) balance forward
,C) open invoice
D) cycle billing - CORRECT ANSWER✔✔C
Which element of fraud is most difficult to prove?
A) Making a false statement, representation, or disclosure
B) An intent to deceive
C) A justifiable reliance, that is the person relies on the misrepresentation
D) An injury or dollar loss suffered by the victim - CORRECT ANSWER✔✔B
Which of the following is not an advantage of a voucher system?
A) Several invoices may be included on one voucher, reducing the number of checks.
B) Disbursement vouchers may be pre-numbered and tracked through the system.
C) It is a one invoice, one check system which makes the process simple and easy.
D) Disbursement vouchers may be pre-numbered and tracked through the system. - CORRECT
ANSWER✔✔C
Which of the following is least likely to be a major criterion in vendor selection?
A) prices of goods
B) simplicity of vendor coding system
C) quality of goods
D) ability to deliver on time - CORRECT ANSWER✔✔B
Which of the following is the greatest risk to information systems and causes the greatest dollar
losses?
A) Human errors and omissions
B) Physical threats such as natural disasters
C) Trusted insiders, board members, and former employee frauds
,D) Ransomware - CORRECT ANSWER✔✔A
Just-In-Time (JIT) inventory is best characterized by
A) frequent deliveries of large quantities to be held at the work centers.
B) infrequent bulk deliveries of items directly to work centers.
C) frequent deliveries of large quantities of goods to central receiving.
D) frequent deliveries of smaller quantities of items to the work centers. - CORRECT
ANSWER✔✔D
Choose the best answer. Before a shipping notice is prepared during the revenue cycle, shipping
department personnel should match the inventory received from the warehouse to the
A) sales order.
B) picking tickets.
C) picking ticket and sales order.
D) sales order and bill of lading. - CORRECT ANSWER✔✔C
"Cooking the books" is typically accomplished by all the following except
A) overstating inventory.
B) accelerating recognition of revenue.
C) inflating accounts payable.
D) delaying recording of expenses. - CORRECT ANSWER✔✔C
________ is not a basic activity of the revenue cycle.
A) Receiving
B) Shipping
C) Sales order entry
D) Billing - CORRECT ANSWER✔✔A
, The first major business activity in the expenditure cycle is
A) a customer sale.
B) ordering inventory, supplies, or services.
C) shipping goods to customers.
D) receiving goods from vendors. - CORRECT ANSWER✔✔B
Identify one control that can be used to mitigate the threat of poor product design that results
in excess costs.
A) production planning systems
B) analysis of warranty and repair costs
C) encryption
D) insurance - CORRECT ANSWER✔✔B
In a revenue cycle with proper controls, the ________ who reports to the ________, is not
involved in any cash handling activities.
A) accounts receivable clerk; controller
B) accounts receivable clerk; treasurer
C) cashier; controller
D) cashier; treasurer - CORRECT ANSWER✔✔A
Which of the following is not an activity performed in the expenditure cycle?
A) ordering
B) receiving
C) cash disbursement
D) shipping - CORRECT ANSWER✔✔D
Correct Answers
An organization can implement which of the following controls to reduce the threat of inventory
theft or damage?
A) review and approval of fixed asset acquisitions
B) document all movement of inventory through the production process
C) better production and planning systems
D) improved and more timely perpetual reporting - CORRECT ANSWER✔✔B
A master production schedule specifies how much of each product is to be produced during the
planning period and when production should commence. Orders, sales forecasts, and finished
goods inventory are then taken into account. True or False?
True
False - CORRECT ANSWER✔✔A
The ________ is a legal contract that defines responsibility for goods that are in transit.
A) bill of lading
B) packing slip
C) back order
D) sales order - CORRECT ANSWER✔✔A
A method for tracking accounts receivable that matches specific invoices and payments from
business—to--business customers is called a(n) ________ method.
A) specific identification
B) balance forward
,C) open invoice
D) cycle billing - CORRECT ANSWER✔✔C
Which element of fraud is most difficult to prove?
A) Making a false statement, representation, or disclosure
B) An intent to deceive
C) A justifiable reliance, that is the person relies on the misrepresentation
D) An injury or dollar loss suffered by the victim - CORRECT ANSWER✔✔B
Which of the following is not an advantage of a voucher system?
A) Several invoices may be included on one voucher, reducing the number of checks.
B) Disbursement vouchers may be pre-numbered and tracked through the system.
C) It is a one invoice, one check system which makes the process simple and easy.
D) Disbursement vouchers may be pre-numbered and tracked through the system. - CORRECT
ANSWER✔✔C
Which of the following is least likely to be a major criterion in vendor selection?
A) prices of goods
B) simplicity of vendor coding system
C) quality of goods
D) ability to deliver on time - CORRECT ANSWER✔✔B
Which of the following is the greatest risk to information systems and causes the greatest dollar
losses?
A) Human errors and omissions
B) Physical threats such as natural disasters
C) Trusted insiders, board members, and former employee frauds
,D) Ransomware - CORRECT ANSWER✔✔A
Just-In-Time (JIT) inventory is best characterized by
A) frequent deliveries of large quantities to be held at the work centers.
B) infrequent bulk deliveries of items directly to work centers.
C) frequent deliveries of large quantities of goods to central receiving.
D) frequent deliveries of smaller quantities of items to the work centers. - CORRECT
ANSWER✔✔D
Choose the best answer. Before a shipping notice is prepared during the revenue cycle, shipping
department personnel should match the inventory received from the warehouse to the
A) sales order.
B) picking tickets.
C) picking ticket and sales order.
D) sales order and bill of lading. - CORRECT ANSWER✔✔C
"Cooking the books" is typically accomplished by all the following except
A) overstating inventory.
B) accelerating recognition of revenue.
C) inflating accounts payable.
D) delaying recording of expenses. - CORRECT ANSWER✔✔C
________ is not a basic activity of the revenue cycle.
A) Receiving
B) Shipping
C) Sales order entry
D) Billing - CORRECT ANSWER✔✔A
, The first major business activity in the expenditure cycle is
A) a customer sale.
B) ordering inventory, supplies, or services.
C) shipping goods to customers.
D) receiving goods from vendors. - CORRECT ANSWER✔✔B
Identify one control that can be used to mitigate the threat of poor product design that results
in excess costs.
A) production planning systems
B) analysis of warranty and repair costs
C) encryption
D) insurance - CORRECT ANSWER✔✔B
In a revenue cycle with proper controls, the ________ who reports to the ________, is not
involved in any cash handling activities.
A) accounts receivable clerk; controller
B) accounts receivable clerk; treasurer
C) cashier; controller
D) cashier; treasurer - CORRECT ANSWER✔✔A
Which of the following is not an activity performed in the expenditure cycle?
A) ordering
B) receiving
C) cash disbursement
D) shipping - CORRECT ANSWER✔✔D
