The multiple choice questions presented in
Question 2 above are “low context.” You should be able to answer them simply by a careful reading of the chapter. These questions, on the other hand, are “high context.”
They will require critical thinking and reasoning on your part.
1. Which of the following is an example of an internal control in the accounting information system?
a. Bank reconciliation
b. Sales order
c. Balance sheet
d. Steps in the accounting cycle
2. Which of the following is most closely related to the “middle level” of the FASB conceptual framework depicted in Figure 1.1?
a. Preparing an operating budget
b. Expensing the cost of a wastebasket
c. Reporting investments at their fair market value
d. Providing information for decisions
3. All of the following are facts about accounting information systems except:
a. They should all involve some form of internal control.
b. They always incorporate information technology.
c. They usually provide general-purpose financial statements as outputs.
d. They can involve three types of storage files.
4. Which of the following best pairs a generic element of the AIS with a specific example of that element?
a. Input, balance sheet
b. Internal control, general ledger software
c. Internal control, balance sheet
d. Input, general ledger software
5. Which of the following statements shows the strongest level of information competence?
a. Never using Wikipedia to do research
b. Consulting the AICPA Web site for information on fraud examination
c. Investigating an author’s professional background
d. Using only scholarly information as the basis for a paper