D217 Accounting Information Systems - Set 2 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: What type of code is used to assign ranges of values to specific attributes, such as account classifications?

Group code

Block code

Sequential code

Alphabetical code

Question 2: What is the purpose of mnemonic codes?

To represent items in sequential order

To create simple numeric codes

To represent complex items involving multiple fields

To convey meaning through acronyms or combinations of letters

Question 3: What is the role of the digital audit trail in a modern accounting system?

To track the shipment of goods

To record transactions for external audit

To trace the flow of transactions from input to output

To store sensitive company data

Question 4: Which type of file contains account data and is updated by transactions?

Archive file

Transaction file

Master file

Reference file

Question 5: What is the function of the transaction file?

To store employee payroll information

To act as a backup for the master file

To update data in the master file

To store historical data for future reference

Question 6: Which file contains records of past transactions retained for future reference and forms part of the audit trail?

Master file

Transaction file

Archive file

Reference file

Question 7: What is the main responsibility of an external auditor?

Authorizing transactions

Determining the validity, accuracy, and completeness of financial records

Maintaining customer records

Managing payroll processing

Question 8: What type of ledger is used to record detailed data for general ledger accounts with many individual subaccounts?

General ledger

Subsidiary ledger

Payroll ledger

Journal ledger

Question 9: What is the primary duty of a mailroom clerk in accounting?

Verifying account balances

Handling payroll processing

Reconciling checks and remittances

Recording customer orders

Question 10: What does the purchase requisition ensure?

That items purchased are from authorized vendors

That items are delivered to customers on time

That employees receive paychecks

That sales are recorded in the journal

Question 11: What is the main function of the accounts payable department?

Managing payroll records

Collecting data and invoices to complete transactions

Handling customer complaints

Approving vendor contracts

Question 12: What is a three-way match in the expenditure cycle?

A match between the customer, vendor, and auditor

A match between the general ledger, trial balance, and income statement

A reconciliation of the supplier's invoice, receiving report, and purchase order

A comparison of sales orders, shipping receipts, and inventory reports

Question 13: Which document identifies employees authorized to receive a paycheck?

Payroll register

Personnel action form

Timecard

Purchase requisition

Question 14: What is included in the payroll register?

Customer sales data

Details of gross pay, deductions, overtime, and net pay

General ledger balances

A list of authorized vendors

Question 15: Which account is used to deposit a single check for the entire payroll amount?

General account

Accounts receivable account

Payroll imprest account

Savings account

Question 16: Who are the primary recipients of financial information in a business?

Employees and vendors

Investors and creditors

Customers and suppliers

Government agencies and employees

Question 17: What is the main purpose of general ledger files in the audit trail?

To track sales records

To provide historical data and prevent errors

To generate customer invoices

To update vendor records

Question 18: What is a consequence of automating general ledger postings?

Improved security

Increased sales

Risk of errors in data due to lack of human intervention

Elimination of audit trails

Question 19: What is the primary issue with the flat-file approach to data management?

It requires excessive computing power

It leads to data redundancy and task-data dependency

It simplifies data integration

It ensures more accurate record-keeping

Question 20: Where is pooled data shared by all users typically stored?

In a flat file

In the general ledger

In a database

In a transaction file

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