Managerial Accounting Systems Exam Review
Course Introduction
Managerial Accounting Systems focuses on the concepts, methods, and applications of accounting information used by managers to plan, control, and make informed business decisions. The course covers topics such as budgeting, standard costing, performance measurement, cost-volume-profit analysis, variance analysis, and the design of accounting systems that support decision-making processes. Students will also explore the integration of technology and information systems in financial reporting, the role of ethical considerations in accounting practices, and best practices for communicating financial information to management teams. Through case studies, real-world examples, and interactive exercises, the course equips students with the skills needed to analyze financial data and improve organizational effectiveness.
Recommended Textbook
Accounting Information Systems 14th Edition by Marshall B. Romney
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22 Chapters
2238 Verified Questions
2238 Flashcards
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Page 2
Chapter 1: Conceptual Foundations of Accounting Information Systems
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) Define the concept of a system.
Answer: A system is a set of two or more components that are somehow interrelated and interact together to achieve a specific goal.
Q2) Identify the false statement below.
A)Retail stores do not have a production cycle.
B)Financial institutions have installment-loan cycles.
C)Every organization should implement every transaction cycle module.
D)A service company does not have an inventory system.
Answer: C
Q3) In which transaction cycle would customer sales transaction information be most likely to pass between internal and external accounting information systems?
A)the revenue cycle
B)the expenditure cycle
C)the human resources / payroll cycle
D)the financing cycle
Answer: A
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3
Chapter 2: Overview of Transaction Processing and Enterprise Resource Planning Systems
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) When the sum of all entries in the subsidiary ledger equals the balance in the corresponding general ledger account,it is assumed that
A)the recording processes were accurate.
B)all source documents were recorded.
C)adjusting entries are not required.
D)no errors exist in the subsidiary ledger.
Answer: A
Q2) Describe the basic cycles and business activities for a typical merchandising company.
Answer: Revenue cycle - deliver inventory to customers and collect cash.Expenditure cycle - receive goods and services from vendors and pay cash.Human resources cycletrack hours worked by employees and record withholding data.
Q3) The data processing method used by FedEx to track packages is an example of
A)real-time processing.
B)batch processing.
C)online batch processing.
D)real-time batch processing.
Answer: A
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Chapter 3: Systems Documentation Techniques
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) Which symbol would be used in a flowchart to represent the display of a report on a computer screen?
A)#7
B)#8
C)#3
D)#11
Answer: C
Q2) Which symbol would be used in a flowchart to represent the addition of information about a step represented in another symbol on the flowchart?
A)#12
B)#13
C)#11
D)#15
Answer: C
Q3) Describe the different levels of DFDs.
Answer: The highest-level or summary view DFD,which shows major inputs/outputs and a single process is called a context diagram.The DFD itself shows inputs,major processes,and outputs;each process in the DFD can be "exploded" or shown in greater level of detail with the sub-processes and related data flows.
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Page 5
Chapter 4: Relational Databases
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113 Flashcards
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Sample Questions
Q1) A set of individual user views of the database is called the
A)conceptual-level schema.
B)internal-level schema.
C)external-level schema.
D)meta-schema.
Q2) Which is probably the most immediate and significant effect of database technology on accounting?
A)Replacement of the double entry-system.
B)Change in the nature of financial reporting.
C)Elimination of traditional records such as journals and ledgers.
D)Quicker access to and greater use of accounting information in decision-making.
Q3) Identify one potential outcome of the update anomaly.
A)inconsistent data
B)inability to add new data
C)unintentional loss of data
D)none of the above
Q4) Describe the different schemas involved in a database structure.What is the role of accountants in development of schemas?
Q5) Explain the types of attributes that tables possess in a relational database.
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Chapter 5: Computer Fraud
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83 Flashcards
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Sample Questions
Q1) Why do fraudulent acts often go unreported and are therefore not prosecuted?
Q2) Researchers found significant differences between white-collar criminals and the public.
A)True
B)False
Q3) Which of the following is not an example of misappropriation of assets?
A)A warehouse employee takes home two units of electronic entertainment inventory each week without authorization.
B)The chief financial officer of the company falsely adds $20 million to the accounts receivable and revenue accounts.
C)The president of the company utilizes the organization's cash to add a floor to her 15,000 square foot house.
D)The treasurer of the company makes an unauthorized wire transfer from the organization's bank to a personal account in Grand Cayman.
Q4) What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting?
Q5) Describe four ways companies can reduce losses from fraud.
Q6) Describe some of the most frequent fraudulent financial reporting schemes.
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Chapter 6: Computer Fraud and Abuse Techniques
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96 Verified Questions
96 Flashcards
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Sample Questions
Q1) LOLer was chatting online with l33ter."I can't believe how lame some people are! :)I can get into any system by checking out the company website to see how user names are defined and who is on the employee directory.Then,all it takes is brute force to find the password." LOLer is a ________,and the fraud he is describing is ________.
A)hacker;social engineering
B)phreaker;dumpster diving C)hacker;password cracking D)phreaker;the salami technique
Q2) Spyware that pops banner ads on a monitor,then collects information about the users web-surfing and spending habits is an example of A)a Trojan horse.
B)scareware.
C)adware.
D)a keylogger.
Q3) Using computer technology to harm another person is known as A)pharming.
B)cyber-bullying.
C)hacking.
D)vishing.
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Page 8
Chapter 7: Control and Accounting Information Systems
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) Which of the following measures can protect a company from AIS threats?
A)Take a proactive approach to eliminate threats.
B)Detect threats that do occur.
C)Correct and recover from threats that do occur.
D)All of the above are proper measures for the accountant to take.
Q2) Hiring decisions at Maarja's Razors are made by Maimu Maarja,the Director of Human Resources.Pay rates are approved by the Vice President for Operations.At the end of each pay period,supervisors submit time cards to Kasheena,who prepares paycheck requisitions.Paychecks are then distributed through the company's mail room.This represents a(n)________ segregation of duties.
A)partial
B)effective
C)ineffective
D)limited
Q3) ________ is the risk that exists before management takes any steps to mitigate it.
A)Inherent risk
B)Residual risk
C)Risk appetite
D)Risk assessment
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Page 9
Chapter 8: Controls for Information Security
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following is not one of the essential criteria for successfully implementing each of the principles that contribute to systems reliability,as discussed in the Trust Services Framework?
A)Developing and documenting policies.
B)Effectively communicating policies to all outsiders.
C)Designing and employing appropriate control procedures to implement policies.
D)Monitoring the system and taking corrective action to maintain compliance with policies.
Q2) ________ is/are an example of a detective control.
A)Physical access controls
B)Encryption
C)Emergency response teams
D)Log analysis
Q3) Describe the concept of Internet of Things (IoT)and its security implications.
Q4) Describe the five principles of the Trust Services Framework.Select one of the principles and discuss the why it is important to an organization.
Q5) Security is a technology issue and not just a management issue.
A)True
B)False
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Chapter 9: Confidentiality and Privacy Controls
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61 Flashcards
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Sample Questions
Q1) Information encrypted with the creator's private key that is used to authenticate the sender is called
A)asymmetric encryption.
B)digital certificate.
C)digital signature.
D)public key.
Q2) Identify the item below that is not a step you could take to prevent yourself from becoming a victim of identity theft.
A)Shred all documents that contain your personal information.
B)Only print your initial and last name on your personal checks.
C)Monitor your credit reports regularly.
D)Refuse to disclose your social security number to anyone or any organization.
Q3) The system and processes used to issue and manage asymmetric keys and digital certificates are known as
A)asymmetric encryption.
B)certificate authority.
C)digital signature.
D)public key infrastructure.
Q4) Compare the advantages and disadvantage of symmetric and asymmetric encryption.
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Chapter 10: Processing Integrity and Availability Controls
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) Discuss how cloud computing could both positively and negatively affect system availability.
Q2) The batch processing data entry control that sums the number of items in a batch is called
A)financial total.
B)hash total.
C)record count.
D)sequence check.
Q3) The control that verifies accuracy by comparing two alternative ways of calculating the same total is called
A)concurrent update controls.
B)cross-footing balance test.
C)data conversion controls.
D)recalculation of batch totals.
Q4) Which of the following is not a risk associated with the data input process?
A)Data is invalid.
B)Data is incomplete.
C)Data is inaccurate.
D)Data is corrupted.
Q5) Discuss ways that can help ensure the processing integrity of electronic voting.
Page 12
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Chapter 11: Auditing Computer-Based Information Systems
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116 Verified Questions
116 Flashcards
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Sample Questions
Q1) How could auditors determine if unauthorized program changes have been made?
A)By interviewing and making inquiries of the programming staff.
B)By examining the systems design and programming documentation.
C)By using a source code comparison program.
D)By interviewing and making inquiries of recently terminated programming staff.
Q2) Using embedded audit modules to continuously monitor transactions,collect data on transactions with special audit significance,and store the data to later identify and investigate questionable transactions is an example of A)integrated test facility.
B)snapshot technique.
C)system control audit review file.
D)audit hooks.
Q3) Marking transactions with a special code,recording them and their master file records before and after processing,and storing the data to later verify that all processing steps were properly executed is an example of
A)integrated test facility.
B)snapshot technique.
C)system control audit review file.
D)audit hooks.
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Page 13
Chapter 12: The Revenue Cycle: Sales to Cash Collections
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) Upon notification from the receiving department that the goods have been returned,the manager issues a(n)________ ,which authorizes the adjustment of the customer's account.
A)debt memo
B)credit memo
C)adjusting entry
D)bill of lading
Q2) A method for tracking accounts receivable that matches specific invoices and payments from the customer is called a(n)________ method.
A)specific identification
B)balance forward
C)cycle billing
D)open-invoice
Q3) Discuss the general control issue of the loss of data,as it relates to the revenue cycle.
Q4) A picking ticket is generated by the
A)shipping process.
B)sales order entry process.
C)packing process.
D)billing process.
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Chapter 13: The Expenditure Cycle: Purchasing to Cash
Disbursements
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108 Verified Questions
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Sample Questions
Q1) When would an MRP inventory approach be preferred to a JIT inventory approach?
A)when a product has a short life cycle
B)when demand for inventory is fairly predictable
C)when demand for inventory is very unpredictable
D)MRP is always a preferred method over JIT.
Q2) Which of the following controls would be the least effective in preventing paying the same invoice twice?
A)Only pay from original invoices.
B)Cancel each document in the voucher package once the check is prepared and mailed.
C)Only pay vendor invoices that have been matched and reconciled to a purchase order and a receiving report.
D)Allow only the accounts payable department to authorize payment for vendor invoices and allow only the cash disbursements department to cut and mail checks to vendors.
Q3) Identify the item below that is the biggest purchasing function cost driver.
A)the number of purchase requisitions processed
B)the number of suppliers used
C)the number of purchase orders processed
D)the quantity of items ordered
Page 15
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Chapter 14: The Production Cycle
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Sample Questions
Q1) The use of various forms of information technology in the production process is referred to as
A)computerized investments and machines.
B)computerized integration of machines.
C)computer-integrated manufacturing.
D)computer intense manufacturing.
Q2) For replacement of inventories and assets destroyed by fire or other disasters,an organization needs
A)stand-by facilities.
B)adequate insurance coverage.
C)source data automation.
D)All of the above are correct.
Q3) Which of the following controls can minimize the threat of theft of inventory?
A)The use of innovative performance metrics.
B)The use of periodic physical counts of inventory and reconciliation of those counts to recorded quantities.
C)The use of encryption.
D)The use of production planning systems.
Q4) Explain what CIM means and its benefits.
Q5) What is PLM and how management can use it to improve product design?
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Chapter 15: The Human Resources Management and Payroll Cycle
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Sample Questions
Q1) What controls are available to address the threat of payroll errors?
Q2) ________ are used to transmit time and attendance data directly to the payroll processing system.
A)Badge readers
B)Electronic time clocks
C)Magnetic cards
D)RFID tags
Q3) Why are accurate cumulative earnings records important?
Q4) A report of wages and withholdings for each employee is called
A)form W-2.
B)form W-3.
C)form 1099-Misc.
D)form 941.
Q5) The employer pays a portion of some payroll taxes and employee benefits.Both the employee and employer pay which benefit or tax listed below?
A)Social security taxes.
B)Federal income taxes.
C)State income taxes.
D)Municipal taxes.
Q6) Describe benefits and threats of incentive and bonus programs. Page 17
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Page 18
Chapter 16: General Ledger and Reporting System
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Sample Questions
Q1) Which of the following is true about IFRS?
A)There is a global trend towards using IFRS for reporting purposes,though U.S.companies are not currently required to do so.
B)The switch to IFRS is required by the Sarbanes-Oxley Act.
C)IFRS is only slightly different than U.S.GAAP.
D)The switch to IFRS is cosmetic only-there isn't any real impact on AIS.
Q2) A type of data entry control that would ensure that adjusting entries are posted to existing general ledger accounts is called a(n)________ check.
A)validity
B)existence
C)closed loop verification
D)reasonableness
Q3) A listing of journal vouchers by numerical sequence,account number,or date is an example of
A)a general ledger control report.
B)a budget report.
C)a batch to be processed.
D)responsibility accounting.
Q4) Explain the benefits of XBRL.
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Chapter 17: Database Design Using the Rea Data Model
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Sample Questions
Q1) In which stage(s)of the database design process does data modeling occur?
A)During the systems analysis stage.
B)During the design stage.
C)During both the systems analysis and design stages.
D)After the design stage.
Q2) It is industry standard to model attributes as ________ in entity-relationship diagrams.
A)rectangles
B)ovals
C)diamonds
D)There is no industry standard.
Q3) Identify the notation below that is not used to represent cardinality information.
A)UML.
B)(Min,Max).
C)DFD.
D)Maximums only.
Q4) E-R diagrams can be used to represent the contents of any kind of database.
A)True
B)False
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Chapter 18: Implementing an Rea Model in a Relational Database
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Sample Questions
Q1) When using an REA diagram to develop a database,a many-to-many relationship must be
A)broken into two,one-to-one relationships.
B)combined into a single one-to-one relationship.
C)combined into a one-to-many relationship.
D)broken into two,one-to-many relationships.
Q2) Explain a completeness check.
Q3) The primary key for a Purchase-Inventory table that consists of the Purchase Order Number and the Inventory Item Number,is known as a
A)concatenated key.
B)foreign key
C)primary key.
D)dual key.
Q4) From the choices below,identify the attribute below that would make the best primary key.
A)Product number.
B)Date of first purchase.
C)Postal code.
D)Customer telephone number.
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Q5) What are the advantages of the REA data model over the traditional AIS model?
Chapter 19: Special Topics in Rea Modeling
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Sample Questions
Q1) Concerning the relationship from the Rent Item to the Receive Cash events: The minimum cardinality is ________ because customers typically pay first,prior to taking possession of the item.The maximum cardinality is ________ because there may be additional charges imposed when the item is returned.
A)0;1
B)1;1
C)1;N
D)N;M
Q2) Supplier number is least likely to be a foreign key in
A)Order Inventory.
B)Disburse Cash.
C)Receive Inventory.
D)Warehouse.
Q3) In a database created using an REA model,the Bill of Materials entity is most analogous to
A)the "bill" that can be sent to the customer who order the finished good(s).
B)the "recipe" needed to produce the finished good(s).
C)the "receipt" for the purchase of specific raw materials.
D)the "audit trail" that can be used to verify a finished good(s)was actually produced.
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Page 22
Chapter 20: Introduction to Systems Development and Systems Analysis
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Sample Questions
Q1) Significant system changes were implemented two months ago.The changes were well-planned,well-designed,thoroughly tested before and after conversion,and several employee training sessions were conducted.Still,the changes haven't resulted in any productivity increases,cost savings,or process improvements.Management is puzzled and needs to find out why the system isn't successful.The best action for management to take is
A)conduct face-to-face interviews with managers,key personnel,and randomly selected employees from each functional area impacted by the system changes in an attempt to discover why the changes aren't effective.
B)make sure the system changes were well documented and review the documentation to see if perhaps some important feature or process was overlooked during the design phase.
C)e-mail a series of questions to all employees,asking for input about further changes that would bring about the desired results.
D)advise employees that consultants will be conducting observation sessions over the next two weeks to determine if employees have fully implemented changes and whether there is any evidence of resistance to the changes.
Q2) Describe the four strategies used to determine AIS requirements.
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Chapter 21: Ais Development Strategies
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Sample Questions
Q1) Moneka Jones is the CIO for Noela Incorporated.Moneka wants to replace the firm's existing system,but wants to leave the technical issues to the vendor because she is not well-informed on the latest technologies.When preparing an RFP,Moneka most likely should
A)disclose exact hardware and software specifications.
B)disclose specific performance objectives and requirements.
C)disclose general software requirements.
D)disclose general performance objectives and requirements.
Q2) The more information a company provides vendors in its request for proposal,the better the chances of receiving a system that meets the organization's requirements.Which of the below statements identifies why errors may decrease?
A)All responses are in the same format and based on the same information.
B)Both parties possess the same expectations and pertinent information is captured in writing.
C)The chances of overlooking important factors are reduced.
D)The same information is provided to all vendors.
Q3) Identify the ways an organization can gain full advantage of using a Request For Proposal (RFP).
Q4) Describe outsourcing and identify the two types of outsourcing agreements.
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Chapter 22: Systems Design, implementation, and Operation
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Sample Questions
Q1) What is systems implementation? How do you plan for it?
Q2) Within the implementation planning and conversion phase of the systems development life cycle,analysts must ________ before they can ________.
A)complete documentation;test software programs
B)install and test software;test software programs
C)test software programs;test the system
D)test the system;select and train personnel
Q3) Identify the question that is not an important consideration in procedures and controls design.
A)Are customer data stored in alphabetical order in a master file?
B)Are payments made only to legitimate vendors?
C)Are data processed and stored accurately?
D)Can the system be modified without affecting system availability?
Q4) ________ of software development costs should be allocated to testing,debugging,and rewriting software.
A)5% to 10%
B)10% to 20%
C)20% to 30%
D)More than 30%
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