WGU D217 ACCOUNTING INFORMATION SYSTEMS EXAM QUESTIONS AND ANSWERS (VERIFIED)WITH RATIONALES UPDATED2024

The greatest risk of misappropriation of funds occurs in - ANSWERS,The greatest risk of
misappropriation of funds occurs in accounts payable. This may take the form of payments for goods
not ordered or received and to vendors that do not exist. The risk can be reduced through
supervision, segregation of duties, independent verification, or automated processes.
In a firm with proper segregation of duties, adequate supervision as a compensating control is still
necessary in - ANSWERS,In a firm with proper segregation of duties, adequate supervision is most
critical in receiving. Every day materials arrive on the receiving dock. Until those receipts are
recorded in the system, they are invisible to anyone but the receivers and their supervisors.
Supervision is a compensating control appropriate before more automated controls take effect.
Scanning technology and automated three-way match are technological controls that reduce risk.
The fixed asset system records the - ANSWERS,The fixed asset system records the purchase of a new
plant. The fixed asset system records property, plant, and equipment used in the operation of the
business. These represent the largest investments of the firm.
In a technology enabled payroll system, Personnel, Time Keeping, Payroll, and Accounts Payable
connect to which department to pay employees? - ANSWERS,In a technology-enabled payroll
system, Personnel, Time Keeping, Payroll and Accounts Payable connect to cash disbursements to
pay employees. Personnel inputs the basic employee information and rate of pay; Time Keeping
collects hours worked and verifies time cards; Payroll inputs the hours worked into the payroll
system which calculates gross and net pay, taxes, and other deductions; Accounts Payable approves
the payment amount; and finally cash disbursements issues pay checks or direct deposit. The
general ledger will be updated after the cash disbursement occurs.
An important reconciliation in the payroll system is - ANSWERS,An important reconciliation in the
payroll system is that the general ledger compares the labor distribution summary from cost
accounting to the disbursement voucher from accounts payable. Cost accounting will be tracking the
job tickets to properly account for work in process. Accounts payable will produce a disbursement
voucher based on input from timecards. Job tickets and timecards should match when hours and
hourly rates are extended.
Which of the following situations represents an internal control weakness? - ANSWERS,The
distribution of paychecks by the employees' immediate supervisor is an internal control weakness.
Paychecks should go directly to employees either by mail or through direct deposit. Giving the
responsibility for distribution to the supervisor creates the possibility of loss, theft, or withholding of
pay from an employee that the supervisor simply does not like. An additional risk arises if the
employee is absent on payday and the supervisor has no secure storage for the check until the
employee is back.
Which of the following is NOT a reasonable control for fixed assets? - ANSWERS,Requiring that fully
depreciated assets be disposed of immediately is not a reasonable control for fixed assets. Fully
depreciated assets may have years of useful life remaining. For example, manufacturing machinery
may be depreciated over three years but many factories use machines that are 10, 15, or 20 years
old if they are well maintained.
What type of data is found in the general ledger master file? - ANSWERS,Balances for each account
in the chart of accounts are found in the general ledger master file. The text describes the general
ledger file as the information hub for the accounting system. Each record in the general ledger
master file corresponds with one of the accounts in the chart of accounts. Each record is either a GL
Master account (i.e., Sales) or a control account (i.e. Accounts Receivables control)
Which report is an output of the financial reporting system (FRS)? - ANSWERS,A comparative balance
sheet is an output of the financial reporting system. The law requires that corporations generate a
series of financial reports - Income Statement, Balance Sheet, Statement of Cash Flows, Tax Returns,
and others. This requirement is met by the financial reporting system.
A characteristic of the management reporting system (MRS) is - ANSWERS,The management
reporting system (MRS) focuses on internal decision-making information. The MRS is the source for
reports that managers will use to analyze business performance such as variance analysis,
production efficiency, sales, and purchases.
Big data analytics are characterized by - ANSWERS,Big data analytics are characterized by volume,
velocity, and variety of data. These are referred to as the three Vs: extreme volumes of data
(megabytes, terabytes, petabytes, etc.), the rapid velocity at which the data must be processed
(particularly in applications involving machine learning and artificial intelligence), and the wide
variety of structured and unstructured data types that need to be integrated (audio, video, external
web data, social media, the financial reporting system, the management reporting system).
What function does prescriptive analytics serve? - ANSWERS,Prescriptive analytics tells the user
what actions should be taken in response to specific questions. For example, some companies use
predictive analytics to optimize trade promotions. Prescriptive analytics helps them determine which
campaigns to run and for which products.
Which item reflects vital information such as quantities and unit prices? - ANSWERS,The sales order
contains vital information such as unit prices and quantities.
How do inventory control functions adjust inventory at the time of a return? - ANSWERS,An
approved credit memo triggers the system to adjust the inventory when items are returned.
Which risk is associated with charge accounts within the revenue cycle? - ANSWERS,The cl