MCQ on Accounting Information System PAPER- COMPUTERIZED ACCOUNTING SEMESTER-II

 MCQ on Accounting Information System 

PAPER- COMPUTERIZED ACCOUNTING

SEMESTER-II

 Please choose the correct answers. 

1- __________ is a recurring set of business activities and related data processing operations associated with the manufacturing of products.

A. Revenues cycle

B. Production cycle

C. Expenditure cycle

D. Human resources management and payroll cycle

2- What is the obstacle to reengineering efforts?

A. Tradition

B. Operation

C. Maintenance

D. Cutting edge

3- What should procedures cover?

A. Accuracy

B. Error detection and corrections

C. Validity

D. Numerical Control

4- What is business process reengineering (BPR)?

A. It is an approach to systems design in which a simplified working model of a system is developed.

B. It is a process that challenges traditional organizational values and cultures associated with underperformance.

C. It is hiring an outside company to handle all or part of an organization's data processing activities.

D. Both B and C

5- What step is involved in developing a prototype?

A. Control corporate data

B. Assist application development

C. Develop and implement standards

D. Identify basic systems requirements

6- Assume that $15,000 of raw materials were issued. What is the journal entry?

A. Dr. Work in Process 15,000

B. Dr. Raw Materials Inventory 15,000

C. Cr. Paid in capital 15,000

D. Cr. Finished goods 15,000

7- Accurate and timely cost accounting information is essential input to decisions about:

A. Product design

B. Cost management

C. Production operations

D. Planning and scheduling

8- Who is the people involved in developing and implementing AIS?

A. Cashier

B. Supplier

C. Project development team

D. Business analysts and planners

9- What is the example of file and database design considerations?

A. Computer screens

B. Organization and access

C. Input preparation

D. Transaction processing

10- What is the principle of business processing reengineering?

A. Decentralize and disperse data

B. Organize around incomes, not tasks

C. Require those who produce information to process it

D. Require those who use the input to perform the process

11- What is threat and applicable control procedures to cash collections?

A. Theft of Cash

B. Theft of inventory

C. Legitimacy of orders

D. Failure to bill customers

12- What is opportunity of using information technology to validate time and attendance data?

A. Using electronic time clocks

B. Picking and packing the order

C. Checking inventory availability

D. Checking and approving the customer's credit

13- What is the main technique of business intelligence?

A. Payback period

B. Databases

C. Data mining

D. Net Present Value (NPV)

14- What activity is performed at billing and accounts receivable state of the revenue cycle?

A. Picking ticket

B. Invoicing supplier

C. Filling customer orders

D. Maintaining customer account

15- What is a major difference between MRP and JIT?

A. JIT systems creates stock of finished goods inventory

B. MRT systems virtually eliminate finished goods inventory

C. JIT systems schedule production to meet customer demands

D. JIT systems schedule production to meet estimated sales need

16- What is the basic framework for feasibility analysis?

A. Economic model

B. Project Planning chart

C. Systems analysis model

D. Capital budgeting model

17- What type of systems development plans are needed?

A. Validity check plan

B. Feasibility analysis plan

C. Processing controls plan

D. Project development plan

18- What is the third function of the AIS?

A. To provide adequate controls

B. To provide information useful for decision making

C. To provide the right product in the right place at the right time for the right price

D. To provide one method for designing a data base that efficiently integrates both financial and operating data

19- What is the basic business activity in the expenditure cycle?

A. Paying for services

B. Update master payroll file

C. Billing and accounts receivable

D. Produce managerial reports

20- What is the type of cost accounting systems?

A. Actual costing

B. Historical costing

C. Job-order costing

D. None of the above

21- What is the basic activity performed in the general ledger and reporting system?

A. Cash collections

B. Sales order entry

C. Update the general ledger

D. Update tax rates and deductions

22- What is main category of managerial reports?

A. Budgets

B. Balance sheet

C. Income statement

D. Cash flows statement

23- What is the step in conceptual design?

A. Systems design

B. Physical analysis

C. Conceptual analysis

D. Evaluate design alternatives

24- What is the example of expenditure cycle data model?

A. Use of approved vendor lists

B. Prenumbered purchase orders

C. Cancellation of voucher package

D. Information about where items are stored

25- What is the principal type of data input?

A. Reconciliation of balances

B. Database access

C. Controls

D. Forms