AIS Exam 2025 With 100% Correct
Answers
Which of the following best describes general ledger activities?
a) General ledger activities happen prior to activities in an individual business process cycle,
such as the revenue cycle
b) One goal of general ledger activities is to output complete and accurate financial statements
c) General ledger activities are high-level activities a company should perform regarding
financial reporting while specific ledger activities are the more specific activities a company
should perform - CORRECT ANSWER✔✔b) One goal of general ledger activities is to output
complete and accurate financial statements
The General Ledger is a report/document which lists each general ledger account and its:
a) Detailed history of activity (all debits and credits) over a period
b) Brief description (e.g., "Cash") only
c) Ending balance, from a financial standpoint
d) The general ledger is not a report/document - CORRECT ANSWER✔✔c) Ending balance, from
a financial standpoint
Which of the following is not an example of a specialized journal (which is a type of journal
designated for grouping similar, high volume/repetitive transactions)?
- Sales Journal
,- Cash Receipts Journal
- Cash Disbursements Journal
- General Journal - CORRECT ANSWER✔✔General Journal
Which of the following does not describe activities that a company would complete during their
close process?
- Pay tribute to the 90's hit "Closing Time" by Semisonic through a corporate karaoke contest
- Record adjusting journal entries, such as accruals and deferrals
- Record closing journal entries
- Review the Adjusted Trial Balance report to ensure that all adjustments have been made
before finalizing the reporting period and producing financial reports - CORRECT
ANSWER✔✔Pay tribute to the 90's hit "Closing Time" by Semisonic through a corporate karaoke
contest
Which of the following statements is false regarding XBRL?
- XBRL is a specific programming language which helps organize financial data by topic/account
so it is indexed and easily searchable
- XBRL-formatted financial statements are required by the SEC
- XBRL is intended to help external users download and analyze company financial data
- XBRL stands for eXtra Balancing of Revenues and Losses - CORRECT ANSWER✔✔XBRL stands
for eXtra Balancing of Revenues and Losses
Why does the audit trail exist?
- Because it allows someone to drill down to the details of a transaction starting from an
aggregation of all transactions; or it allows you to start with the details and see how it flows
through to the end of the process and is aggregated with other transactions.
, - Because it is required by the IRS.
- Because it is an alert mechanism to let you know when an audit failure is coming.
- Because three auditors walking in a row is more effective than if they walked sporadically. -
CORRECT ANSWER✔✔Because it allows someone to drill down to the details of a transaction
starting from an aggregation of all transactions; or it allows you to start with the details and see
how it flows through to the end of the process and is aggregated with other transactions.
If you are looking at an unadjusted trial balance and dollar amounts are present for GL
accounts, what should you assume?
- Adjusting entries have not been recorded yet but closing entries have.
- Closing entries have not been recorded yet but adjusting entries have.
- No journal entries - regular, adjusting, or closing - have been recorded.
- Closing and adjusting entries have not been recorded yet. - CORRECT ANSWER✔✔Closing and
adjusting entries have not been recorded yet.
Which job title likely closes the books, assuming that proper segregation of duties are in place?
- The Accounting clerk
- The Chair of the Audit Committee of the Board of Directors
- The "closer"
- The Controller - CORRECT ANSWER✔✔The Controller
Which of the following controls would detect the risk that incorrect financial statements have
been posted to the public in March of this year?
- GL master and transactional data cannot be edited after the period has been "closed"
- The AIS performs zero-balance checks on journal entries when they are being recorded.
Answers
Which of the following best describes general ledger activities?
a) General ledger activities happen prior to activities in an individual business process cycle,
such as the revenue cycle
b) One goal of general ledger activities is to output complete and accurate financial statements
c) General ledger activities are high-level activities a company should perform regarding
financial reporting while specific ledger activities are the more specific activities a company
should perform - CORRECT ANSWER✔✔b) One goal of general ledger activities is to output
complete and accurate financial statements
The General Ledger is a report/document which lists each general ledger account and its:
a) Detailed history of activity (all debits and credits) over a period
b) Brief description (e.g., "Cash") only
c) Ending balance, from a financial standpoint
d) The general ledger is not a report/document - CORRECT ANSWER✔✔c) Ending balance, from
a financial standpoint
Which of the following is not an example of a specialized journal (which is a type of journal
designated for grouping similar, high volume/repetitive transactions)?
- Sales Journal
,- Cash Receipts Journal
- Cash Disbursements Journal
- General Journal - CORRECT ANSWER✔✔General Journal
Which of the following does not describe activities that a company would complete during their
close process?
- Pay tribute to the 90's hit "Closing Time" by Semisonic through a corporate karaoke contest
- Record adjusting journal entries, such as accruals and deferrals
- Record closing journal entries
- Review the Adjusted Trial Balance report to ensure that all adjustments have been made
before finalizing the reporting period and producing financial reports - CORRECT
ANSWER✔✔Pay tribute to the 90's hit "Closing Time" by Semisonic through a corporate karaoke
contest
Which of the following statements is false regarding XBRL?
- XBRL is a specific programming language which helps organize financial data by topic/account
so it is indexed and easily searchable
- XBRL-formatted financial statements are required by the SEC
- XBRL is intended to help external users download and analyze company financial data
- XBRL stands for eXtra Balancing of Revenues and Losses - CORRECT ANSWER✔✔XBRL stands
for eXtra Balancing of Revenues and Losses
Why does the audit trail exist?
- Because it allows someone to drill down to the details of a transaction starting from an
aggregation of all transactions; or it allows you to start with the details and see how it flows
through to the end of the process and is aggregated with other transactions.
, - Because it is required by the IRS.
- Because it is an alert mechanism to let you know when an audit failure is coming.
- Because three auditors walking in a row is more effective than if they walked sporadically. -
CORRECT ANSWER✔✔Because it allows someone to drill down to the details of a transaction
starting from an aggregation of all transactions; or it allows you to start with the details and see
how it flows through to the end of the process and is aggregated with other transactions.
If you are looking at an unadjusted trial balance and dollar amounts are present for GL
accounts, what should you assume?
- Adjusting entries have not been recorded yet but closing entries have.
- Closing entries have not been recorded yet but adjusting entries have.
- No journal entries - regular, adjusting, or closing - have been recorded.
- Closing and adjusting entries have not been recorded yet. - CORRECT ANSWER✔✔Closing and
adjusting entries have not been recorded yet.
Which job title likely closes the books, assuming that proper segregation of duties are in place?
- The Accounting clerk
- The Chair of the Audit Committee of the Board of Directors
- The "closer"
- The Controller - CORRECT ANSWER✔✔The Controller
Which of the following controls would detect the risk that incorrect financial statements have
been posted to the public in March of this year?
- GL master and transactional data cannot be edited after the period has been "closed"
- The AIS performs zero-balance checks on journal entries when they are being recorded.
