AIS Exam 2025 With 100% Correct
Answers
Which of the following is NOT one of the five major business processes or transaction cycles?
a. Expenditure
b. Production
c. Human Resource & Payroll
d. Revenue
e. Financing
f. All of the above are major cycles. - CORRECT ANSWER✔✔f. All of the above are major cycles.
Accounting Information Systems (AIS) is most likely applicable to which area of accounting?
a. Tax accounting
b. Public Accounting
c. Management consulting
d. All of the above are applicable to AIS.
e. None of the above. - CORRECT ANSWER✔✔d. All of the above are applicable to AIS.
Which of the following is NOT a characteristic of useful information?
a. Relevant
b. Verifiable
c. Timely
d. Accessible
e. Cost-effective - CORRECT ANSWER✔✔e. Cost-effective
,AIS adds value to an organization by:
a. Improving efficiency.
b. Sharing knowledge.
c. Improving the internal control structure.
d. Answers a and b only.
e. Answers a, b, and c. - CORRECT ANSWER✔✔e. Answers a, b, and c.
Which of the following does not influence the design of an Accounting Information System
(AIS)?
a. Organizational culture
b. Information Technology
c. Business strategy
d. Legal environment - CORRECT ANSWER✔✔d. Legal environment
What is data?
a. All of the facts that are collected, stored, and processed by an information system
b. All of the debit and credit information about each transaction
c. The output which results from the input of information
d. The same thing as information - CORRECT ANSWER✔✔a. All of the facts that are collected,
stored, and processed by an information system
Information can improve decision making in what way?
a. It identifies situations requiring management action.
b. It provides a basis for choosing among alternative actions.
c. Provides valuable feedback that can be used to improve future decisions.
d. All of the above. - CORRECT ANSWER✔✔d. All of the above.
,Which of the following is NOT a major business cycle?
a. The production cycle
b. The revenue cycle
c. The financing cycle
d. The cash receipts cycle
e. The payroll cycle - CORRECT ANSWER✔✔d. The cash receipts cycle
Which of the following is a major activity for the revenue cycle?
a. Receive items
b. Forecast production
c. Record time spent on specific jobs
d. Deliver or ship order - CORRECT ANSWER✔✔d. Deliver or ship order
Which of the following would be an activity associated with the human resources/payroll cycle?
a. Deposit cash receipts
b. Adjust customer account
c. Pay for items
d. Record time worked by employees - CORRECT ANSWER✔✔d. Record time worked by
employees
Information is data that has been organized and processed.
a. True
b. False - CORRECT ANSWER✔✔a. True
Information that is timely is free from error or bias.
a. True
, b. False - CORRECT ANSWER✔✔b. False
An AIS designer, who is very competent with information technology skills, will be successful in
designing an information system regardless of his/her understanding of the organization that
he/she is designing for.
a. True
b. False - CORRECT ANSWER✔✔b. False
A component of an Accounting Information System are the people who use the system.
a. True
b. False - CORRECT ANSWER✔✔a. True
Which of the following is considered a disadvantage of an Enterprise Resource Planning (ERP)
system?
a. Data input is captured once
b. Time required for implementation
c. Customer relationship management
d. Increased productivity - CORRECT ANSWER✔✔b. Time required for implementation
Which of the following is NOT an element of data processing?
a. Create
b. Update
c. Reconcile
d. Delete - CORRECT ANSWER✔✔c. Reconcile
An audit trail consists of which of the following items?
a. Sales invoice
Answers
Which of the following is NOT one of the five major business processes or transaction cycles?
a. Expenditure
b. Production
c. Human Resource & Payroll
d. Revenue
e. Financing
f. All of the above are major cycles. - CORRECT ANSWER✔✔f. All of the above are major cycles.
Accounting Information Systems (AIS) is most likely applicable to which area of accounting?
a. Tax accounting
b. Public Accounting
c. Management consulting
d. All of the above are applicable to AIS.
e. None of the above. - CORRECT ANSWER✔✔d. All of the above are applicable to AIS.
Which of the following is NOT a characteristic of useful information?
a. Relevant
b. Verifiable
c. Timely
d. Accessible
e. Cost-effective - CORRECT ANSWER✔✔e. Cost-effective
,AIS adds value to an organization by:
a. Improving efficiency.
b. Sharing knowledge.
c. Improving the internal control structure.
d. Answers a and b only.
e. Answers a, b, and c. - CORRECT ANSWER✔✔e. Answers a, b, and c.
Which of the following does not influence the design of an Accounting Information System
(AIS)?
a. Organizational culture
b. Information Technology
c. Business strategy
d. Legal environment - CORRECT ANSWER✔✔d. Legal environment
What is data?
a. All of the facts that are collected, stored, and processed by an information system
b. All of the debit and credit information about each transaction
c. The output which results from the input of information
d. The same thing as information - CORRECT ANSWER✔✔a. All of the facts that are collected,
stored, and processed by an information system
Information can improve decision making in what way?
a. It identifies situations requiring management action.
b. It provides a basis for choosing among alternative actions.
c. Provides valuable feedback that can be used to improve future decisions.
d. All of the above. - CORRECT ANSWER✔✔d. All of the above.
,Which of the following is NOT a major business cycle?
a. The production cycle
b. The revenue cycle
c. The financing cycle
d. The cash receipts cycle
e. The payroll cycle - CORRECT ANSWER✔✔d. The cash receipts cycle
Which of the following is a major activity for the revenue cycle?
a. Receive items
b. Forecast production
c. Record time spent on specific jobs
d. Deliver or ship order - CORRECT ANSWER✔✔d. Deliver or ship order
Which of the following would be an activity associated with the human resources/payroll cycle?
a. Deposit cash receipts
b. Adjust customer account
c. Pay for items
d. Record time worked by employees - CORRECT ANSWER✔✔d. Record time worked by
employees
Information is data that has been organized and processed.
a. True
b. False - CORRECT ANSWER✔✔a. True
Information that is timely is free from error or bias.
a. True
, b. False - CORRECT ANSWER✔✔b. False
An AIS designer, who is very competent with information technology skills, will be successful in
designing an information system regardless of his/her understanding of the organization that
he/she is designing for.
a. True
b. False - CORRECT ANSWER✔✔b. False
A component of an Accounting Information System are the people who use the system.
a. True
b. False - CORRECT ANSWER✔✔a. True
Which of the following is considered a disadvantage of an Enterprise Resource Planning (ERP)
system?
a. Data input is captured once
b. Time required for implementation
c. Customer relationship management
d. Increased productivity - CORRECT ANSWER✔✔b. Time required for implementation
Which of the following is NOT an element of data processing?
a. Create
b. Update
c. Reconcile
d. Delete - CORRECT ANSWER✔✔c. Reconcile
An audit trail consists of which of the following items?
a. Sales invoice
