AIS Multiple Choice Question and Answer (Chapter 2 - Set D)
AIS Multiple Choice Question and Answer (Chapter 2 - Set D)
1) An audit trail
A) provides the means to check the accuracy and validity of ledger postings.
B) begins with the general journal.
C) is automatically created in every computer-based information system.
D) is a summary of recorded transactions.
Answer: A
8) In Petaluma, California, electric power is provided to consumers by the Power To The People
Electrical Company (PTTP), a local co-op. Each month PTTP mails bills to 70,000 households and then
processes payments as they are received. What is the best way for this business to ensure that payment
data entry is efficient and accurate?
A) Well-designed paper forms
B) Source data automation
C) Turnaround documents
D) Sequentially numbered bills
Answer: C
9) Callow Youth Clothing is a boutique retailer located in Estes Park, Colorado. It is a sole
proprietorship that stocks an inventory of between 80 and 160 different products. Inventory is updated in
real time by the AIS. When designing a chart of accounts for this business, what is the minimum number
of digits necessary to represent the general ledger account code, including subsidiary ledgers?
A) 4
B) 6
C) 7
D) 9
Answer: B
10) The quality assurance department at a large manufacturing business enters data into the AIS that is
used to produce a weekly report that summarizes the proportion of defective units in each product line.
This is an example of
A) internal financial information.
B) internal nonfinancial information.
C) external financial information.
D) external nonfinancial information.
Answer: B
11) The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi
Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a
superior level of customer service. In particular, the store's database system was designed to make
detailed information about each individual action figure's characteristics easily accessible. Price
information and condition are also provided for each inventory item. In this database, the price of figures
is a(an)
A) entity.
B) attribute.
C) field.
D) record.
Answer: B