AIS Multiple Choice Question and Answer (Chapter 2 - Set D)

Name: _____________________________________ Section:__________
Topic: Chapter 2 Overview of Transaction Processing and ERP Systems
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
2) Concerning a master file, which of the following statements is false?

A) A master file is conceptually similar to a ledger in a manual AIS.
B) A master file stores cumulative information.
C) A master file exists across fiscal periods.
D) A master file's individual records are rarely, if ever, changed.
Answer: D
3) Which of the following is conceptually similar to a journal in a manual AIS?

A) database
B) master file
C) record
D) transaction file
Answer: D
4) Which of the following statements is true?

A) Batch processing ensures that stored information is always current.
B) Batch input is more accurate than on-line data entry.
C) On-line batch processing is a combination of real-time and batch processing.
D) Batch processing not frequently used.
Answer: C
5) The data processing method used by FedEx to track packages is an example of

A) real-time processing.
B) batch processing.
C) online batch processing.
D) real-time batch processing.
Answer: A
6) Which statement below regarding the AIS is false?

A) The AIS must be able to provide managers with detailed and operational information about the
organization's performance.
B) Both traditional financial measures and operational data are required for proper and complete
evaluation of performance.
C) The AIS was often just one of the information systems used by an organization to collect and process
financial and nonfinancial data.
D) Traditionally, most AIS have been designed so that both financial and operational data are stored in a
manner that facilitates their integration in reports.
Answer: D
7) Callow Youth Clothing (CYC) is a boutique retailer located in Estes Park, Colorado. During the peak
tourist season, it has average daily cash and credit card sales in excess of $5,000. What is the best way
for CYC to ensure that sales data entry is efficient and accurate?
A) Well-designed paper forms
B) Source data automation
C) Turnaround documents
D) Sequentially numbered sales invoices
Answer: B
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

AIS Multiple Choice Question and Answer (Chapter 2 - Set D)

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AIS Multiple Choice Question and Answer (Chapter 2 - Set D)

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Name: ___________________________ Section:

Topic: Chapter 2 Overview of Transaction Processing and ERP Systems

2) Concerning a master file, which of the following statements is false?

3) Which of the following is conceptually similar to a journal in a manual AIS?

4) Which of the following statements is true?

5) The data processing method used by FedEx to track packages is an example of

6) Which statement below regarding the AIS is false?

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