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web.groovymark@gmail.com
- December 12, 2024
Question 01
What is the purpose of a master file in accounting information systems?
A) To store temporary transaction records
B) To store detailed account data such as general ledgers
C) To generate audit reports
D) To track inventory movement
Answer: B) To store detailed account data such as general ledgers
Explanation: Master files store permanent data, such as the balances in general and subsidiary ledger accounts.
Question 02
Which file stores data used as standards for processing transactions in payroll systems?
A) Archive file
B) Master file
C) Reference file
D) Transaction file
Answer: C) Reference file
Explanation: Reference files store data like tax tables, which are used as standards for processing payroll transactions.
Question 03
What is the main characteristic of a transaction file in accounting systems?
A) It contains archived data
B) It is used to store temporary data that updates master files
C) It contains tax records
D) It stores fixed asset information
Answer: B) It is used to store temporary data that updates master files
Explanation: Transaction files contain temporary records of business events and are used to update the permanent data stored in master files.
Question 04
What does a data dictionary describe in an accounting information system?
A) It describes every data element in the database
B) It lists approved vendors
C) It records transaction errors
D) It contains payroll summaries
Answer: A) It describes every data element in the database
Explanation: A data dictionary defines the structure and content of data elements in a database, ensuring consistency and accuracy.
Question 05
What kind of audit trail is created by digital accounting systems?
A) A paper-based log of transactions
B) A sequence of documents linked to physical ledgers
C) A record of digital transactions and data flow
D) A manual approval process for every transaction
Answer: C) A record of digital transactions and data flow
Explanation: Digital audit trails consist of electronic records of transactions that allow auditors to trace the flow of data through the system.
Question 06
Which coding scheme assigns ranges of values to specific attributes, such as account classifications?
A) Sequential code
B) Group code
C) Mnemonic code
D) Block code
Answer: D) Block code
Explanation: Block codes assign a range of values to specific attributes, such as account classifications in a chart of accounts.
Question 07
What type of code uses alphabetic characters to convey meaning in acronyms or combinations?
A) Alphabetical code
B) Mnemonic code
C) Sequential code
D) Group code
Answer: B) Mnemonic code
Explanation: Mnemonic codes use alphabetic characters to create meaningful acronyms or combinations, making it easier to recognize and remember.
Question 08
What is an insertion anomaly?
A) Accidental removal of data from a table
B) The unintended addition of incomplete data
C) The overwriting of existing data in a system
D) The modification of multiple records in error
Answer: B) The unintended addition of incomplete data
Explanation: Insertion anomalies occur when incomplete or incorrect data is unintentionally added to a database.
Question 09
Which type of code represents complex items involving two or more related pieces of data?
A) Sequential code
B) Mnemonic code
C) Group code
D) Alphabetical code
Answer: C) Group code
Explanation: Group codes use fields or zones to represent multiple related pieces of information in a code.
Question 10
What system can handle multiple functions, including accounting, procurement, and human resources, using a single database?
A) General ledger system
B) Payroll system
C) Enterprise resource planning (ERP) system
D) Accounts payable system
Answer: C) Enterprise resource planning (ERP) system
Explanation: ERP systems integrate various business processes, such as accounting, procurement, and HR, into a single database.
Question 11
What does the general ledger system (GLS) do in an accounting information system?
A) It records financial transactions from the entire organization
B) It processes payroll checks
C) It provides vendor payment reports
D) It automates sales orders
Answer: A) It records financial transactions from the entire organization
Explanation: The GLS records and consolidates financial transactions, serving as a central repository for accounting data.
Question 12
What is the role of a payroll imprest account?
A) It tracks the total amount paid to vendors
B) It is used to deposit a single check for the entire payroll
C) It records employee tax deductions
D) It stores payroll processing rules
Answer: B) It is used to deposit a single check for the entire payroll
Explanation: A payroll imprest account is used to deposit a lump sum to cover payroll expenses, from which individual employee checks or deposits are issued.
Question 13
How does a digital signature ensure the authenticity of a transmitted message?
A) By encrypting the sender’s message with a public key
B) By encrypting the digest of the message with the sender’s private key
C) By storing the message in a reference file
D) By verifying the sender’s physical address
Answer: B) By encrypting the digest of the message with the sender's private key
Explanation: Digital signatures use the sender's private key to encrypt a message digest, ensuring the message’s authenticity and integrity.
Question 14
What is the purpose of a firewall in an organization’s information system?
A) To back up sensitive data
B) To isolate internal systems from external threats
C) To approve vendor invoices
D) To automate journal entries
Answer: B) To isolate internal systems from external threats
Explanation: Firewalls are security systems designed to protect an organization’s internal network from unauthorized access and external threats.
Question 15
What is the primary use of an archive file in an accounting system?
A) To store current transaction data
B) To store payroll information
C) To retain past transactions for future reference
D) To manage system backups
Answer: C) To retain past transactions for future reference
Explanation: Archive files store records of past transactions that are kept for auditing purposes and future reference.
Question 16
What are the two main subsystems of the conversion cycle?
A) Sales and payroll
B) Accounts receivable and general ledger
C) Production and cost accounting
D) Vendor and supplier management
Answer: C) Production and cost accounting
Explanation: The conversion cycle includes production planning and scheduling, along with the cost accounting system, which tracks labor and materials used.
Question 17
What is a three-way match in accounts payable?
A) Matching a credit memo, sales order, and receiving report
B) Matching a supplier’s invoice, receiving report, and purchase order
C) Matching an employee’s time card, payroll check, and tax deduction
D) Matching an inventory count, vendor list, and general ledger entry
Answer: B) Matching a supplier's invoice, receiving report, and purchase order
Explanation: A three-way match ensures that the supplier's invoice, the receiving report, and the purchase order are consistent before payment is issued.
Question 18
Which control measure involves limiting access to sensitive financial data through user authentication?
A) Application control
B) General control
C) Access control
D) Output control
Answer: C) Access control
Explanation: Access controls restrict user access to sensitive financial data through mechanisms such as passwords and user permissions.
Question 19
What is the function of a personnel action form in payroll processing?
A) To authorize and record changes in employee pay rates and job classifications
B) To track employee performance metrics
C) To issue payroll checks
D) To provide tax withholding rates
Answer: A) To authorize and record changes in employee pay rates and job classifications
Explanation: Personnel action forms authorize changes in employee pay rates, deductions, and other job-related updates that affect payroll.
Question 20
Which document records the acquisition of a fixed asset?
A) Payroll register
B) Depreciation report
C) Purchase requisition
D) Time sheet
Answer: B) Depreciation report
Explanation: A depreciation report details the acquisition and depreciation of a fixed asset over time.
