D217 Accounting Information Systems - Set 5 - Part 1

Correct Answer: A coding scheme that assigns ranges of values to specific attributes

Block codes assign specific ranges of values to categories, such as account classifications in a chart of accounts.

Correct Answer: A code consisting of zones or fields that have specific meanings

Group codes combine related pieces of data in a structured format for easier processing of complex transactions.

Correct Answer: Supplier's invoice

The supplier's invoice is sent to accounts payable to trigger payment after the goods or services have been received.

Correct Answer: Acquiring materials, property, and labor in exchange for cash

The expenditure cycle focuses on acquiring resources needed for production and paying vendors for these purchases.

Correct Answer: Alphabetical code

Alphabetical codes use letters assigned in a sequential manner, often used for document identification or classification.

Correct Answer: Segregation of duties

Segregation of duties separates tasks to prevent any one individual from controlling an entire transaction, reducing fraud risks.

Correct Answer: Detective control

Detective controls are used to identify and expose errors or irregularities that have already occurred in the system.

Correct Answer: To maintain detailed account data, such as the general ledger

Master files contain permanent account data, such as ledger balances, which are updated by daily transactions.

Correct Answer: They can be installed and implemented faster than custom systems

Commercial software systems are pre-built and tested, making them faster to implement than fully customized systems.

Correct Answer: A code that uses abbreviations to convey meaning

Mnemonic codes use easily recognizable letters, often acronyms, to represent information meaningfully, such as course codes.

Correct Answer: Transaction file

Transaction files contain temporary records of transactions that are used to update the master file with the latest data.

Correct Answer: Inventory control and payroll processing

Core ERP applications support the day-to-day operations of the business, such as inventory control, payroll, and accounting.

Correct Answer: Managing cash disbursements and purchases

The expenditure cycle includes purchasing materials and services, and making payments to vendors.

Correct Answer: Fixed asset system

The fixed asset system tracks transactions related to property, plant, equipment, and their depreciation.

Correct Answer: To store master data for standard processing, such as tax tables

Reference files store data used as standards for processing transactions, like tax tables used for payroll.

Correct Answer: Access control

Access controls limit who can view or modify financial records, ensuring that only authorized individuals can access sensitive data.

Correct Answer: Financial statements

The financial reporting system generates key financial reports such as income statements, balance sheets, and cash flow statements.

Correct Answer: Group code

Group codes categorize related data into fields or zones, making complex items easier to process and understand.

Correct Answer: Production system

The production system manages the planning and control of the manufacturing process, ensuring efficient use of resources.

Correct Answer: Corrective control

Corrective controls are actions taken to fix errors or irregularities that have been identified by detective controls.