WGU D217 Accounting Information Systems Modules Unit Tests (2023 – 2024) With Complete Solutions
MOD 1 - The primary input to the transaction
... [Show More] processing system is - "a financial transaction." The financial transaction is the primary input to the transaction processing system. Financial transactions are economic events that affect assets and equities and are reflected on the financial statements.
The major difference between the financial reporting system (FRS) and the management reporting system (MRS) is the - "FRS provides information to external users; the MRS provides information to internal users." The FRS produces the financial statements as required by law. The MRS provides information to management for decision making such as budgets, forecasts, customer orders.
The author distinguishes between the accounting information system and the management information system based on - "whether the transactions are financial or nonfinancial that directly affect the processing of financial transactions." The AIS captures financial transactions to support systems around the revenue, expenditure and conversion cycles. The MIS captures nonfinancial transactions to support systems for marketing, inventory, manufacturing and human resources.
An example of a financial transaction is - "the purchase of computer." The purchase of a computer adds an asset to the organization.
An example of a nonfinancial transaction is - "log of customer calls." The log of customer calls is a key source of information for customer service, marketing and the sales departments.
The transaction processing system includes which of the following? - "the conversion cycle." The conversion cycle is included within the transaction processing system because it records cost accounting and production activities.
The goal of data processing is - "the production of useful information." Data is not information. Data is data. Data needs to be consolidated, processed, summarized and converted into information for management decision-making.
Which of the following is an external end user? - "tax authorities." Tax authorities are external users who expect an accurate accounting of tax due. In addition, the non-discretionary reports from the accounting information system provide what is needed for tax authorities to evaluate tax liability.
An appraisal function housed within the organization that performs a wide range of services for management is - "internal auditing." An appraisal function housed within the organization that performs a wide range of services for management is internal auditing. Internal auditors verify the accuracy and security of the information systems and also work with various business segments to secure and optimize processes.
What factor conceptually distinguishes external auditing and internal auditing? [Show Less]