QUIZ 1

The Transaction Processing System includes all of the following cycles EXCEPT

• the revenue cycle

• the administrative cycle

• the expenditure cycle

• the conversion cycle

The major difference between the Financial Reporting System (FRS) and the Management Reporting System (MRS) is the:

• FRS provides information to internal and external users; the MRS provides information to internal users.

• FRS provides discretionary information; the MRS provides nondiscretionary information.

• FRS reports are prepared using information provided by the General Ledger System; the MRS provides information to the General Ledger System.

• FRS reports are prepared in flexible, nonstandardized formats; the MRS reports are prepared in standardized, formal formats.

Which level of management is responsible for controlling day-to-day operations?

• top management

• middle management

• operations management

• executive management

Which subsystem is NOT part of the Accounting Information System?

• Transaction Processing System

• Expert System

• General Ledger/Financial Reporting System

• Management Reporting System

The author distinguishes between the Accounting Information System and the Management Information System based on

• whether the transactions are financial or nonfinancial

• whether discretionary or nondiscretionary reports are prepared

• the end users of the reports

• the organizational structure of the business

All of the following are external end users EXCEPT

• Cost accountants

• Creditors

• Stockholders

• Tax authorities

Effective information has all of the following characteristics EXCEPT

• relevance

• completeness

• summarization

• structure

The objectives of all information systems include all of the following EXCEPT

• support for the stewardship function of management

• evaluating transaction data

• support for the day-to-day operations of the firm

• support for management decision making

An example of a non-financial transaction is

• sale of products

• cash disbursement

• log of customer calls

• purchase of inventory

Accountants play many roles relating to the accounting information system, including all of the following EXCEPT

• system users

• system designers

• system auditors

• system converters