University of Baguio

ACCOUNTING 32

CHAPTER 1 Multiple-Choice Questions 1. Which of the following is NOT a financial transaction? a. purchase of products b. cash receipts c. update valid vendor file d. sale of inventory 2. The following are subsystems of the Accounting Information System, EXCEPT a. Transaction Processing System. b. Human Resources System. c. General Ledger/Financial Reporting System. d. Management Reporting System. 3. Which of the following is NOT a purpose of the Transaction Processing System? a. managing and reporting on the status of financial investments b. converting economic events into financial transactions c. distributing essential information to operations personnel to support their daily operations d. recording financial transactions in the accounting records 4. The objectives of the data collection activity of the general model for Accounting Information Systems are to collect data that are a. relevant and redundant. b. efficient and objective. c. efficient and redundant. d. efficient and relevant. 5. Which of the following is NOT a characteristic of effective information? a. relevance b. accuracy c. summarization d. precision 6. Which of the following is NOT a database management task? a. retrieval b. storage c. summarization d. deletion 7. When viewed from the highest to most elemental level, the data hierarchy is a. attribute, record, file. b. record, attribute, key.