AIS Exam Practice 2025 With 100%
Correct Answers
Which of the following statements below shows the contrast between data and information?
Data and information are the same.
Information is the primary output of an accounting information system.
Data is more useful in decision making than information.
Data is the primary output of an accounting information system. - CORRECT
ANSWER✔✔Information is the primary output of an accounting information system.
When a subsystem's goals are inconsistent with the goals of another subsystem or with the
system as a whole, it creates
goal inconsistence.
goal conflict.
system conflict.
system inconsistence. - CORRECT ANSWER✔✔goal conflict.
,The value of information can best be determined by
its relevance to decision makers.
its usefulness to decision makers.
the benefits associated with obtaining the information minus the cost of producing it.
the extent to which it optimizes the value chain. - CORRECT ANSWER✔✔the benefits
associated with obtaining the information minus the cost of producing it.
Which of the following is not one of the three basic types of data about a specific sales
transaction that should be captured by an Accounting Information System?
name of the employee who completed the sale
product sold
daily sales quota
date - CORRECT ANSWER✔✔daily sales quota
Information that is free from error or bias and accurately represents the events or activities of
the organization is
relevant.
verifiable.
,timely.
reliable. - CORRECT ANSWER✔✔reliable.
In which transaction cycle would customer sales transaction information be most likely to pass
between internal and external accounting information systems?
the human resources / payroll cycle
the revenue cycle
the expenditure cycle
the financing cycle - CORRECT ANSWER✔✔the revenue cycle
The ________ is not a transaction cycle.
general ledger and reporting cycle
human resources cycle
revenue cycle
expenditure cycle - CORRECT ANSWER✔✔general ledger and reporting cycle
, Identify the false statement below.
Every organization should implement every transaction cycle module.
A service company does not have an inventory system.
Retail stores do not have a production cycle.
Financial institutions have installment-loan cycles. - CORRECT ANSWER✔✔Every organization
should implement every transaction cycle module.
An accounting information system must be able to perform which of the following tasks?
provide adequate controls
All of these
process transaction data
collect transaction data - CORRECT ANSWER✔✔All of these
The primary objective of accounting is to
prepare financial statements.
ensure the profitability of an organization.
Correct Answers
Which of the following statements below shows the contrast between data and information?
Data and information are the same.
Information is the primary output of an accounting information system.
Data is more useful in decision making than information.
Data is the primary output of an accounting information system. - CORRECT
ANSWER✔✔Information is the primary output of an accounting information system.
When a subsystem's goals are inconsistent with the goals of another subsystem or with the
system as a whole, it creates
goal inconsistence.
goal conflict.
system conflict.
system inconsistence. - CORRECT ANSWER✔✔goal conflict.
,The value of information can best be determined by
its relevance to decision makers.
its usefulness to decision makers.
the benefits associated with obtaining the information minus the cost of producing it.
the extent to which it optimizes the value chain. - CORRECT ANSWER✔✔the benefits
associated with obtaining the information minus the cost of producing it.
Which of the following is not one of the three basic types of data about a specific sales
transaction that should be captured by an Accounting Information System?
name of the employee who completed the sale
product sold
daily sales quota
date - CORRECT ANSWER✔✔daily sales quota
Information that is free from error or bias and accurately represents the events or activities of
the organization is
relevant.
verifiable.
,timely.
reliable. - CORRECT ANSWER✔✔reliable.
In which transaction cycle would customer sales transaction information be most likely to pass
between internal and external accounting information systems?
the human resources / payroll cycle
the revenue cycle
the expenditure cycle
the financing cycle - CORRECT ANSWER✔✔the revenue cycle
The ________ is not a transaction cycle.
general ledger and reporting cycle
human resources cycle
revenue cycle
expenditure cycle - CORRECT ANSWER✔✔general ledger and reporting cycle
, Identify the false statement below.
Every organization should implement every transaction cycle module.
A service company does not have an inventory system.
Retail stores do not have a production cycle.
Financial institutions have installment-loan cycles. - CORRECT ANSWER✔✔Every organization
should implement every transaction cycle module.
An accounting information system must be able to perform which of the following tasks?
provide adequate controls
All of these
process transaction data
collect transaction data - CORRECT ANSWER✔✔All of these
The primary objective of accounting is to
prepare financial statements.
ensure the profitability of an organization.
