1. Which of the following is NOT a financial transaction? a. purchase of products b. cash receipts c. update valid vendor file d. sale of inventory

1. Which of the following is NOT a financial transaction?
a. purchase of products
b. cash receipts
c. update valid vendor file
d. sale of inventory

2. The following are subsystems of the Accounting Information System, EXCEPT
a. Transaction Processing System.
b. Human Resources System.
c. General Ledger/Financial Reporting System.
d. Management Reporting System.

3. Which of the following is NOT a purpose of the Transaction Processing System?
a. managing and reporting on the status of financial investments
b. converting economic events into financial transactions
c. distributing essential information to operations personnel to support their daily
operations
d. recording financial transactions in the accounting records

4. The objectives of the data collection activity of the general model for Accounting Information
Systems are to collect data that are
a. relevant and redundant.
b. efficient and objective.
c. efficient and redundant.
d. efficient and relevant.

5. Which of the following is NOT a characteristic of effective information?
a. relevance b. accuracy c. summarization d. precision
6. Which of the following is NOT a database management task?
a. Retrieval
b. Storage
c. Summarization
d. deletion

7. When viewed from the highest to most elemental level, the data hierarchy is
a. attribute, record, file.
b. record, attribute, key.
c. file, record, attribute.
d. file, record, key.
e. key, record, file.

8. Which is NOT an accountant’s primary role in information systems?
a. system user
b. system auditor
c. system designer
d. system programmer

9. Which of the following is NOT an objective of all information systems?
a. support for the stewardship function of management
b. support for management decision making
c. support for the day-to-day operations of the firm
d. all of the above are objectives

10. Which of the following best describes the activities of the materials management function?
a. purchasing, receiving, and inventory control
b. receiving, sales, distribution, and purchasing
c. receiving, storage, purchasing, and accounts payable
d. purchasing, receiving, and storage
e. purchasing, storage, and distribution

11. Which of the following best describes the activities of the production function?
a. maintenance, inventory control, and production planning
b. production planning, quality control, manufacturing, and cost accounting
c. quality control, production planning, manufacturing, and payroll
d. maintenance, production planning, storage, and quality control e. manufacturing, quality
control, and maintenance

12. Which of the following best describes the activities of the accounting function?
a. inventory control, accounts payable, fixed assets, and payroll
b. fixed assets, accounts payable, cash disbursements, and cost accounting
c. purchasing, cash receipts, accounts payable, cash disbursements, and payroll
d. inventory control, cash receipts, accounts payable, cash disbursements, and payroll
e. inventory control, cost accounting, accounts payable, cash disbursements, and payroll

1. Discuss the differences between internal and external users of information and their needs and demands on an information system. Historically, which type of user has the firm catered to most?

2. Comment on the level of detail necessary for operations management, middle management, and stockholders.

3. Distinguish b ween financial and non-financial transactions. Give three examples of each.

4. Do you think transaction processing systems differ significantly between service and manufacturing industries? Are they equally important to both sectors?

5. Discuss what is meant by the statement, ‘‘The accounting system is a conceptual flow of information that represents the physical flows of personnel, raw materials, machinery, and cash through the organization.’’

6. Examine the diagram below and determine what essential mechanism is missing. Once you have identified the missing element, discuss its importance.