Question 1

Which of the following activities is not part of the production cycle?

Accepted Answer

A) Managing raw materials 
B) Planning production 
C) Keeping the finished goods 
D) Handling variances for standard and actual costs of goods manufactured

Question 2

There are a few source documents that contain accounting data.An accounting clerk enters these data into an accounting program hosted in a computer.The computer displays an analysis report on screen when the accounting program has finished processing the data.
In this scenario,the accounting information system consists of:

Accepted Answer

A) The accounting program. 
B) Source document and the accounting program. 
C) Source document,the accounting program,and the computer. 
D) Source document,the accounting clerk,the accounting program,and the computer.

Question 3

The role of the accountant has changed in recent times because:

Accepted Answer

A) Professional bodies have sought to redefine and reposition the accounting function. 
B) Computer systems have emerged to handle the classification and recording tasks traditionally associated with the accounting function. 
C) The accounting cycle is too complex and involved to be performed solely by the accountant. 
D) Knowledge workers have increasingly replaced accountants in the performance of recording and classification tasks.

Question 4

The ICAA requires that its members should bring their analytic expertise to several fields.Which one of the following field is NOT specified by the ICAA?

Accepted Answer

A) Strategic planning and change management 
B) Market analysis and compliance 
C) The use of information technology 
D) Human resource management

Question 5

Which one of the following is often overlooked by businesses when it comes to internal control?

Accepted Answer

A) Fraud 
B) Theft of business data 
C) Disaster recovery 
D) Errors in data

Question 6

As computer systems have been developed to perform the recording and classification tasks associated with business activities,the nature of accounting and the work of the accountant have also been pushed in a new direction.Increasingly,the role of the accountant is seen to be to:

Accepted Answer

A) Use computer programs rather than manual journals. 
B) Ensure that businesses invest in new software. 
C) Add value and provide and interpret information for an organisation. 
D) Outsource accounting work to bookkeepers.

Question 7

What are the differences between data and information?

Accepted Answer

The answer of What are the differences between data and...

Question 8

Traditionally,the role of an accountant is to capture and record financial information.Has this role changed? Why or why not?

Accepted Answer

The answer of Traditionally,the role of an accountant is to...

Question 9

MICR is an input technology used:

Accepted Answer

A) on receipts and invoices that are given to customers. 
B) on bank cheques. 
C) in the processing of ATM receipts. 
D) by many organisations to expedite the processing of accounts payable invoices.

Question 10

What is feedback and how does it interact with the system?

Accepted Answer

The answer of What is feedback and how does it...

Question 11

Normalisation:

Accepted Answer

A) Is a process that can now be eliminated in designing databases due to technology improvements. 
B) Ensures all the higher-level operational aspects are also included,as normalisation starts with the tables,forms and data of the organisation. 
C) Is a top-down process. 
D) Minimises potential anomalies that can emerge in a data management system

Question 12

A large company that provides supplies to the defence forces has just established a new accounting system.Which of the following is an example of a factor in the external environment that would impact on the design of this system:

Accepted Answer

A) The specification details gained from users. 
B) The directive from the finance director about the system's operation capacity. 
C) The defence force requirement regarding e-commerce. 
D) The accounting standards governing large companies.

Question 13

Which of the following statement regarding business processes is correct?

Accepted Answer

A) Business processes represent the series of discrete activities that deliver something of value to external customers 
B) Business processes represent the series of discrete activities that deliver something of value to both internal and external customers 
C) Business processes represent the series of interlocking activities that deliver something of value to internal customers 
D) Business processes represent the series of interlocking activities that deliver something of value to both internal and external customers

Question 14

An example of an output from an accounting information system could be:

Accepted Answer

A) the screen for entering transactions. 
B) the screen for selecting what report to produce. 
C) the screen that lists updated and categorised account balances. 
D) the screen for entering file saving locations.

Question 15

Which of the following statements about the HR management and payroll cycle is NOT true?

Accepted Answer

A) The cycle involves recruiting employees 
B) The cycle involves managing and paying employees 
C) The cycle involves dealing with situations where employees leave the organisation 
D) Decisions about who to hire will not impact upon the way the other processes are executed.

Question 16

Which of the following statements regarding the auditing of accounting information systems is NOT true?

Accepted Answer

A) When conducting an audit,the auditors should consider legislative requirements 
B) When conducting an audit,the auditors should consider professional requirements 
C) When conducting an audit,the auditors should consider prescriptions of various accounting standards 
D) When conducting an audit,the auditors do not need to worry about the unique characteristics of an individual client

Question 17

The following message box appears when entering a customer order into a sales system:

This is an example of:

Accepted Answer

A) Input 
B) Process 
C) Output 
D) Feedback

Exam 1: Systems Fundamentals