D217 Accounting Information Systems - Set 1 - Part 2

Correct Answer: Requiring that fully depreciated assets be disposed of immediately

Fully depreciated assets may still have useful life and do not need to be immediately disposed of.

Correct Answer: Balances for each account in the chart of accounts

The general ledger master file holds the balances for all accounts included in the chart of accounts.

Correct Answer: Comparative balance sheet

The financial reporting system produces key financial documents like the balance sheet for external reporting.

Correct Answer: It focuses on internal decision-making information

The MRS provides reports that help managers make decisions based on internal performance data.

Correct Answer: Volume, velocity, and variety

Big data analytics is defined by the large volume of data, the high speed (velocity) at which it is processed, and the wide range of types of data (variety).

Correct Answer: Suggests actions to be taken

Prescriptive analytics advises on possible courses of action based on data analysis and predictions.

Correct Answer: Sales order

The sales order contains crucial details such as quantities ordered and unit prices.

Correct Answer: An approved credit memo triggers the system to adjust inventory

When items are returned, the credit memo signals the system to update inventory levels.

Correct Answer: Clerks allowing purchases to individuals who do not pay their bills

Charge accounts carry the risk of credit being extended to customers who may default on their payments.

Correct Answer: Inventory control

Inventory control is part of the expenditure cycle, ensuring the organization tracks its purchases and stock levels.

Correct Answer: To force the receiving clerk to count contents and verify items

The blind copy ensures the receiving clerk manually verifies the quantity and quality of goods received.

Correct Answer: Buildings

Fixed assets include long-term investments like buildings and machinery used in business operations.

Correct Answer: Implementation of agreements to avoid discrepancies

Implementing clear agreements helps avoid misunderstandings or discrepancies in electronic data interchange.

Correct Answer: Direct deposit

Direct deposit is an IT control that automates the payment of wages, reducing the risk of errors or fraud.

Correct Answer: Accounts payable

Accounts payable manages the supplier's invoice, the purchase order, and the receiving report for posting acquisitions.

Correct Answer: Hours worked by employees on a specific date

Timecards track hours worked, which provides critical information for accurate financial reporting and payroll processing.

Correct Answer: To ensure accuracy, completeness, and authorization

Journal vouchers are reviewed and approved to ensure that entries are accurate, authorized, and complete before they are recorded in the GL.

Correct Answer: It supports decision-making and helps control business activities

The management reporting system provides reports that help managers make informed decisions and maintain control over operations.

Correct Answer: It allows for year-to-year comparison of financial data

The general ledger history file helps in comparing data across years for financial analysis and reporting purposes.

Correct Answer: Comparison of budgeted amounts to actual revenue and expense by responsibility center

This comparison helps managers assess how well each department is adhering to its budget.