AIS Chapter 2 Exam 1

Know what a source document. Which of the following is not a source document?

A source document is the original document that contains the details of a business transaction. Journal entries are not a source document

A general journal

Contains summary-level data for every asset, liability, equity, revenue, and expense account

A disadvantage of an ERP system

Cost, amount of time required, changes to business processes, complexity, employee resistance

Identify the statement below that is not true with regards to the accounts receivable subsidiary ledger.

Debits and credits in the subsidiary ledger must always equal.

What is the purpose of audit trails?

Detect security-violating events

Is the data processing method used by an airline to record customers' flight reservations typically online transaction processing or batch transaction processing?

Online real-time transaction processing

Which statement below regards the AIS and managerial reports?

The AIS is best utilized for financial data while the management information system is best utilized for operational data. Traditionally, most AIS have been designed so that both financial and operational data are stored in a manner that facilitates their integration in reports.

How data is organized and stored in an AIS?

The smallest unit of data is known as a data value. A data value is physically stored in a space called a field. Any number of fields can be grouped together to form a record. Related records are grouped together to form a file. Files are then combined to form a database.

What is an audit trail?

a path that allows a transaction to be traced through a data processing system from point of origin to output or backward from output to point of origin

What is a special journal?

all accounting journals except for the general journal, a journal used to record a large number of repetitive transactions such as credit sales, cash receipts, purchases, and cash disbursements

What is an accounts receivable subsidiary ledger?

an accounting ledger that shows the transaction and payment history of each customer to whom the business extends credit

In transaction processing, generally which activity comes first?

capturing data on source documents

Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and condition are provided for each fan, along with many pictures of each fan. In Antia's database, all of the Japanese fans (as a whole) represent a(n) ______.

entity

When printed on paper, data output is referred to as ______.

hard copy

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 ____________.

internal nonfinancial information

A purchase requisition is a common source document used to facilitate which business activity?

purchase request

Common source documents for the revenue cycle include all of the following except

receiving report

When displayed on a monitor, data output is referred to as _________.

soft copy

Documents that are sent to customers or suppliers and then sent back to the company in the course of a business transaction are known as _______.

turnaround documents

All of the following situations would likely be communicated in an exception report except

weekly credit and cash sales comparison