Business Process – Accounting Information System Exam
The key terms in these Finance chapters include Information System, Bandwidth, Business Process.
What is the most effective way to ensure information system availability?
Maintain a cold site.
High bandwidth.
Frequent backups.
Maintain a hot site. – Correct
________ is a plan that specifies how to resume not only IT operations but all business processes in the event of a major calamity.
Business continuity plan – Correct
Business contingency plan
Real-time monitoring plan
Disaster recovery plan
What is the primary objective of ensuring systems and information are available for use whenever needed?
To minimize system downtime. – Correct
To maximize system processing speed.
To minimize system expense.
In order to maximize sales.
Usually the supplier will give the buyer permission to correct the invoice for any discrepancies in quantity. In the case of damaged or poor-quality goods, a document called a(n) ________ is prepared after the supplier agrees to take back the goods or to grant a price reduction.
credit memo
debit memo – Correct
return memo
adjustment memo
Evaluated receipt settlement increases efficiency by
eliminating the need to prepare and mail checks.
eliminating the need for vendor invoices. – Correct
eliminating the need for purchase orders.
eliminating the need for receiving reports.
What is the most effective way to ensure information system availability?
Maintain a cold site.
High bandwidth.
Frequent backups.
Maintain a hot site. – Correct
________ is a plan that specifies how to resume not only IT operations but all business processes in the event of a major calamity.
Business continuity plan – Correct
Business contingency plan
Real-time monitoring plan
Disaster recovery plan
What is the primary objective of ensuring systems and information are available for use whenever needed?
To minimize system downtime. – Correct
To maximize system processing speed.
To minimize system expense.
In order to maximize sales.
Business Process – Accounting Information System Exam
Which control would best prevent payments made to fictitious vendors?
Allow payments only to approved vendors. – Correct
Have an independent bank reconciliation.
Make sure all documents are in order before approving payments.
Restrict access to any payment or approval documents.
Which of the following statements is false regarding the use of incentives, commissions and bonuses in the payroll system?
Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured.
Incentive schemes can create fraud. – Correct
Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses.
Incentive schemes can result in undesirable behavior.
Pay rate information should be stored in
employee subsidiary ledgers.
employees’ personnel files.
the payroll master file. – Correct
electronic time cards.
Source data automation is often effective in reducing
theft.
intentional errors.
unintentional errors.
accuracy. – Correct
What is the most effective way to ensure information system availability?
Maintain a cold site.
High bandwidth.
Frequent backups.
Maintain a hot site. – Correct
________ is a plan that specifies how to resume not only IT operations but all business processes in the event of a major calamity.
Business continuity plan – Correct
Business contingency plan
Real-time monitoring plan
Disaster recovery plan
What is the primary objective of ensuring systems and information are available for use whenever needed?
To minimize system downtime. – Correct
To maximize system processing speed.
To minimize system expense.
In order to maximize sales.
Pay rate information should be stored in
employee subsidiary ledgers.
employees’ personnel files.
the payroll master file. – Correct
electronic time cards.
Source data automation is often effective in reducing
theft.
intentional errors.
unintentional errors.
accuracy. – Correct
Which control would best prevent payments made to fictitious vendors?
Allow payments only to approved vendors. – Correct
Have an independent bank reconciliation.
Make sure all documents are in order before approving payments.
Restrict access to any payment or approval documents.
Which of the following statements is false regarding the use of incentives, commissions and bonuses in the payroll system?
Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured.
Incentive schemes can create fraud. – Correct
Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses.
Incentive schemes can result in undesirable behavior.