Accounting Information Systems, 8e—Test Bank, Chapter 2
c.
identifying documents
d.
identifying fixed assets
42. The most important advantage of sequential coding is that
a.
missing or unrecorded documents can be identified
b.
the code itself lacks informational content
c.
items cannot be inserted
d.
deletions affect the sequence
43. When a firm wants its coding system to convey meaning without reference to any other document, it
would choose
a.
an alphabetic code
b.
a mnemonic code
c.
a group code
d.
a block code
44. The most important advantage of an alphabetic code is that
a.
meaning is readily conveyed to users
b.
sorting is simplified
c.
the capacity to represent items is increased
d.
missing documents can be identified
SHORT ANSWER
1. List two of the three transaction cycles.
2. Documents that are created at the beginning of the transaction are called
__________________________.
Accounting Information Systems, 8e—Test Bank, Chapter 2
3. ______________________________________ are the two data processing approaches used in modern
systems.
4. Give a specific example of a turn-around document.
5. Explain when it is appropriate to use special journals.
6. What are the subsystems of the revenue cycle?
7. What are the subsystems of the expenditure cycle?
8. Most organizations have replaced the general journal with a _______________________________.
9. Provide a specific example of a general ledger account and a corresponding subsidiary ledger.
Accounting Information Systems, 8e—Test Bank, Chapter 2
10. Name four documentation techniques?
11. Why is the audit trail important?
12. List a method of data processing that uses the destructive update approach?
13. Only four symbols are used in data flow diagrams. What are they?
14. Which documentation technique depicts data relationship in databases.?
15. What are the three characteristics that are used to distinguish between batch and real-time systems.
16. Give one advantages of real-time data collection.
17. In one sentence, what does updating a master file record involve?
18. What is destructive update?
19.. Explain two types of coding schemes and give examples of their use.
ESSAY
1. Describe the key activities in the revenue, conversion, and expenditure cycles.
2. Categorize each of the following activities into the expenditure, conversion or revenue cycles and
identify the applicable subsystem.
a. Preparing the weekly payroll for manufacturing personnel.
b. Releasing raw materials for use in the manufacturing cycle.
c. Recording the receipt of payment for goods sold.
d. Recording the order placed by a customer.
e. Ordering raw materials.
f. Determining the amount of raw materials to order.
3. What does an entity-relationship diagram represent? Why do accountants need to understand them?
4. Time lag is one characteristic used to distinguish between batch and real-time systems. Explain. Give
an example of when each is a realistic choice.
5. The revenue cycle has two subsystems. What are they and what occurs within each?
6. Resource use is one characteristic used to distinguish between batch and real-time systems. Explain.
7. Give a brief description of each of the following documentation techniques: systems flowchart, and
program flowchart.
8. Give an example of how cardinality relates to business policy?
9. For what purpose are ER diagrams used?
10. With regard to an entity relationship diagram, what is an entity?
11. Is a DFD an effective documentation technique for identifying who or what performs a particular task?
Explain.
12. Is a flowchart an effective documentation technique for identifying who or what performs a particular
task? Explain.
13. How may batch processing be used to improve operational efficiency?
Accounting Information Systems, 8e—Test Bank, Chapter 2
14. If an organization processes large numbers of transactions that use common data records, what type of
system would work best (all else being equal)?
15. Why might an auditor use a program flowchart?
16. How are computer system flowcharts and program flowcharts related?
17. What are the key distinguishing features of legacy systems?
Accounting Information Systems, 8e—Test Bank, Chapter 2
18. What information is provided by a record layout diagram?
19. Comment on the following statement: “Legacy systems use flat file structures.”
20. What factor influences the decision to employ real-time data collection with batch updating rather that
purely real-time processing? Explain.
21. Why is the master file backup procedure important?
Accounting Information Systems, 8e—Test Bank, Chapter 2
22. What are the reasons companies use coding schemes in their accounting information systems?
23. Compare and contrast the relative advantages and disadvantages of sequential, block, group, alphabetic
and mnemonic codes.
Accounting Information Systems, 8e—Test Bank, Chapter 2
APPENDIX QUESTION
24. Explain how a hashing structure works and why it is quicker than using an index. Give an example. If
it so much faster, why isn’t it used exclusively?
25. Explain the following three types of pointers: physical address pointer, relative address pointer, and
logical key pointer.