Accounting Information Systems, Midterm Exam, 1st 2014/15

The Islamic University-Gaza

Faculty of Commerce

Department of Accounting

MID-TERM EXAMINATION

SEMESTER 1

2014/2015

ACCOUNTING INFROMATION SYSTEMS

DATE: 23/11/2015

TIME ALLWOED: 1 (HOUR)

NAME:

ID:

QUESTION
MARK

QUESTION 1 (5 Marks)

Determine whether each statement is True of False

  1. Batch processing is best used when timely information is needed because this method processes data efficiently (F).
  1. Organizations that handle large number of transactions can increase efficiencybyprocessing each event separately(F).
  1. Segregation of duties is an example of an internal control procedure (T).
  1. Preventive controls are passive techniques designed to reduce fraud(T).
  1. Authorization of purchases in a merchandising firm occurs in the inventory controldepartment(T).

QUESTION 2(7 Marks)

Choose the best answer

  1. The Transaction Processing System includes all of the following cycles except
  1. The conversion cycle
  2. The administrative cycle
  3. The revenue cycle
  4. The expenditure cycle
  1. ______is used to capture and formalize transaction data needed for transaction processing.
  1. Data Collection
  2. Source Document
  3. Product Document
  4. Master File
  1. The graphical representation of the physical relationships among key elements of a system is called:
  1. Entity relationship diagram
  2. System flowchart
  3. Data flow diagram
  4. A and B
  1. The reconciliation that occurs in the shipping department is intended to ensure that
  1. Credit has been approved
  2. The customer is billed for the exact quantity shipped
  3. The goods shipped match the goods ordered
  4. Inventory records are reduced for the goods shipped
  1. The reason that a blind copy of the purchase order is sent to receiving is to
  1. Inform receiving when a shipment is due
  2. Force a count of the items delivered
  3. Inform receiving of the type, quantity, and price of items to be delivered
  4. Require that the goods delivered are inspected
  1. Authorization for payment of an accounts payable liability is the responsibility of
  1. Inventory control
  2. Purchasing
  3. Accounts payable
  4. Cash disbursements
  1. In purchasing process, to verify what was ordered was received and fairly priced:
  1. Financial information is reconciled with account payable and receiving report.
  2. Financial information is reconciled with receiving report and voucher slip
  3. Financial information is reconciled with receiving report and purchasing order in the pending file.
  4. Financial information is reconciled with receiving report and purchasing requisition in the pending file

QUESTION 3(6 Marks)

  1. What is automation and why is it used?

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  1. Time lag is one characteristic used to distinguish between batch and real-time systems. Explain.

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QUESTION 4(12 Marks)

  1. A credit sale is made to a customer, even though the customer’s account is fourmonths overdue. Describe a specific internal control procedure that would prevent this fromhappening.

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  1. For each of the following documents, describe its purpose, the functional areapreparing it, and the key data included: sales order, bill of lading, and credit memo.

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  1. Describe, briefly,the steps taken in the cash disbursement system?

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All The Best

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