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
Accounting Information Systems, Midterm Exam, 1st 2014/15
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).
2. Organizations that handle large number of transactions can increase
efficiency by processing each event separately (F).
3. Segregation of duties is an example of an internal control procedure
(T).
4. Preventive controls are passive techniques designed to reduce fraud
(T).
5. Authorization of purchases in a merchandising firm occurs in the
inventory control department (T).
QUESTION 2
(7 Marks)
Choose the best answer
1. The Transaction Processing System includes all of the following
cycles except
A. The conversion cycle
B. The administrative cycle
C. The revenue cycle
D. The expenditure cycle
2. __________ is used to capture and formalize transaction data needed
for transaction processing.
A. Data Collection
B. Source Document
C. Product Document
D. Master File
3. The graphical representation of the physical relationships among key
elements of a system is called:
A. Entity relationship diagram
B. System flowchart
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Accounting Information Systems, Midterm Exam, 1st 2014/15
C. Data flow diagram
D. A and B
4. The reconciliation that occurs in the shipping department is intended
to ensure that
A. Credit has been approved
B. The customer is billed for the exact quantity shipped
C. The goods shipped match the goods ordered
D. Inventory records are reduced for the goods shipped
5. The reason that a blind copy of the purchase order is sent to receiving
is to
A. Inform receiving when a shipment is due
B. Force a count of the items delivered
C. Inform receiving of the type, quantity, and price of items to be
delivered
D. Require that the goods delivered are inspected
6. Authorization for payment of an accounts payable liability is the
responsibility of
A. Inventory control
B. Purchasing
C. Accounts payable
D. Cash disbursements
7. In purchasing process, to verify what was ordered was received
fairly priced:
A. Financial information is reconciled with account payable
receiving report.
B. Financial information is reconciled with receiving report
voucher slip
C. Financial information is reconciled with receiving report
purchasing order in the pending file.
D. Financial information is reconciled with receiving report
purchasing requisition in the pending file
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and
and
and
and
and
Accounting Information Systems, Midterm Exam, 1st 2014/15
QUESTION 3
(6 Marks)
1. What is automation and why is it used?
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------2. 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 four months overdue. Describe a specific internal control
procedure that would prevent this from happening.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------2. For each of the following documents, describe its purpose, the
functional area preparing it, and the key data included: sales order,
bill of lading, and credit memo.
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Accounting Information Systems, Midterm Exam, 1st 2014/15
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3. Describe, briefly, the steps taken in the cash disbursement system?
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All The Best
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