AIS Quiz Chp 1-6

Accounting Information Systems

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CHAPTER ONE QUIZ The correct answer for each question is indicated by a  1 CORRECT In the FASB Conceptual Framework, all of the following are elements of financial statements except: A) operating cash flow. B) assets. C) comprehensive income. D) expenses. Feedback: Level Two of the Framework (Figure 1.1) identifies eight elements of financial statements: assets, liabilities, equity,  revenue, expense, gain, loss and comprehensive income. INCORRECT In the FASB Conceptual Framework, ___ is a primary qualitative characteristic of accounting information. A) comparability. B) consistency. C) relevance. D) materiality. Feedback: The primary qualitative characteristics are relevance and reliability. Comparability and consistency are secondary  qualitative characteristics; materiality is a constraint. INCORRECT Which of the following pairs belong to the same category in the FASB Conceptual Framework? A) cost effectiveness and historical cost. B) realization and matching. C) full disclosure and going concern. D) industry practices and going concern. Feedback: Realization and matching are both principles in the conceptual framework. Cost effectiveness and industry practices  are constraints; historical cost and full disclosure are principles. Going concern is an assumption. 4 CORRECT All of the following are generic elements of an accounting information system except: A) conceptual framework. B) inputs.
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C) storage. D) internal controls. Feedback: Accounting information systems typically comprise five generic elements (Figure 1.2): inputs, processes, outputs,  storage and internal controls. INCORRECT Which of the following is commonly classified as an input to an accounting information system? A) journal entries. B) financial statements. C) source documents. D) audit opinions. Feedback: Source documents, such as invoices and check stubs, provide objective evidence of recordable accounting  transactions. INCORRECT An accounting information system's outputs typically include all of the following except: A) balance sheets. B) income statements. C) statements of cash flows. D) audit opinions. Feedback: The general purpose financial statements are often outputs of an AIS; an audit opinion is not generated by the system,  but by the auditors. It can be considered a form of internal control. INCORRECT Which of the following is not a classification of information discussed in the text? A)
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This note was uploaded on 08/09/2011 for the course ACNT 2332 taught by Professor Unknown during the Summer '10 term at HCCS.

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