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MCQ | Information System in Financial and Accounting System in MIS

MIS Information System in Financial and Accounting System MCQ: This section contains the Multiple-Choice Questions & Answers on Information System in Financial and Accounting System with explanations.
Submitted by IncludeHelp, on May 24, 2021

1. An organization's financial structure is a ___ and has a great impact on its stable development and long life.

  1. Small or large
  2. Unit
  3. Business
  4. All of the mentioned above

Answer: A) Small or large

Explanation:

An organization's financial structure is small or large and has a great impact on its stable development and long life.


2. A financial information system involves the ___ of financial and accounting data.

  1. Collection, storage, and processing
  2. System maintenance
  3. System testing
  4. None of the mentioned above

Answer: A) Collection, storage, and processing

Explanation:

Internal users use an accounting information system to collect, store, and process financial and accounting data to report information to investors, creditors, and tax authorities.


3. A computer-based method for ___ accounting activity in conjunction with information technology resources.

  1. Tracking
  2. Maintenance
  3. Testing
  4. All of the mentioned above

Answer: A) Tracking

Explanation:

A computer-based method for tracking accounting activity in conjunction with information technology resources.


4. A Financial Information System combines traditional accounting practices, with modern information technology resources.

  1. True
  2. False

Answer: A) True

Explanation:

Traditional accounting methods, such as the use of Generally Accepted Accounting Principles, are combined with modern information technology tools in a Financial Information System.


5. The role of a Financial Information System has now shifted from recording the transactions to providing relevant information in ____.

  1. System enhancement
  2. System monitoring
  3. Decision-making
  4. All of the mentioned above

Answer: C) Decision-making

Explanation:

The role of a Financial Information System has now shifted from recording the transactions to providing relevant information in decision-making.


6. A financial information system contains various elements imperative in the ____.

  1. System enhancement
  2. System development
  3. Accounting cycle
  4. None of the mentioned above

Answer: C) Accounting cycle

Explanation:

Various elements essential to the accounting period are included in an accounting information system. Although the information stored in a system differs depending on the industry and the size of the company.


7. An accounting information system must have an organized ___ structure to keep information in structured manner.

  1. Database
  2. Application
  3. Software
  4. All of the mentioned above

Answer: A) Database

Explanation:

A database structure is required for an accounting information system to store data. Query language is used to program this database structure, which allows for table and data manipulation.


8. A financial information system does not have numerous fields to input data as well as to edit previously stored data.

  1. True
  2. False

Answer: B) False

Explanation:

A financial information system has a lot of fields for putting data in and editing data that has already been saved. Furthermore, accounting information systems are frequently highly guarded networks with safeguards in place against malware, hackers, and other outside outlets attempting to gather data.


9. In an organization, ___ offers the information required to serve as an efficient and effective decision-making tool.

  1. Data management
  2. Information management
  3. Processing management
  4. All of the mentioned above

Answer: A) Data management

Explanation:

In an organization, data management offers the information required to serve as an efficient and effective decision-making tool.


10. An automated information system’s objective is to frame ___ and changing business strategies and their execution by top executives in the company.

  1. Strategic decision
  2. Strategic planning
  3. Strategic maintenance
  4. None of the mentioned above

Answer: B) Strategic planning

Explanation:

An automated information system’s objective is to frame strategic planning and changing business strategies and their execution by top executives in the company.


11. A financial and accounting MIS is an automated system that ___ all the financial and accounting-related operations using a computerized system in an organization.

  1. Process
  2. Enhancement
  3. Planning
  4. Maintenance

Answer: A) Process

Explanation:

A financial and accounting MIS is an automated system that processes all the financial and accounting-related operations using a computerized system in an organization. A typical Financial and Accounting MIS is used to control the movement of materials and items in the business.


12. In a financial and accounting process, raw materials or parts are turned into ____.

  1. Final outcome
  2. Finished product
  3. Output
  4. Processed goods

Answer: B) Finished product

Explanation:

In a financial and accounting process, raw materials or parts are turned into finished products.


13. The major functions of a financial and accounting information system are,

  1. Integrate financial reports from different sources
  2. Comparison between historical and current financial practices
  3. Provide quick access in a summarized form to financial details
  4. All of the mentioned above

Answer: D) All of the mentioned above

Explanation:

The major functions of a financial and accounting information system are to integrate financial reports from different sources, comparison between historical and current financial practices, and provide quick access in a summarized form to financial details.


14. In a Financial and Accounting MIS, some of the typical subsystems include ___, ___, ___, accounting details, process control, and quality measures.

  1. Design and engineering
  2. Financial and accounting planning
  3. Inventory management
  4. All of the mentioned above

Answer: D) All of the mentioned above

Explanation:

In a Financial and Accounting MIS, some of the typical subsystems include design and engineering, financial and accounting planning, inventory management, accounting details, process control, and quality measures.


15. The ……..is the leading provider of financial and accounting information system growth funding and technical assistance.

  1. World Bank
  2. State Bank of India
  3. Bank of India
  4. All of the mentioned above

Answer: A) World Bank

Explanation:

The World Bank is the leading provider of financial and accounting information system growth funding and technical assistance.


16. An information system is a ___ for collecting data, processing the data into information, and distributing that information to users.

  1. Formal process
  2. Informal process
  3. Neutral process
  4. None of the mentioned above

Answer: A) Formal process

Explanation:

An information system is a formal process for collecting data, processing the data into information, and distributing that information to users.


17. Finance and accounting represent the specialized ____.

  1. Management function
  2. Organizational function
  3. Decision making
  4. All of the mentioned above

Answer: A) Management function

Explanation:

Finance and accounting represent the specialized management function responsible for collecting, recording and analyzing financial data and for presenting statements and financial information of all types of managers and other people in the organization.


18. The accounting information system allows ___ and external users of accounting information to obtain an insight into the entire organization.

  1. Managers
  2. Executives
  3. Administrators
  4. None of the mentioned above

Answer: A) Managers

Explanation:

The accounting information system allows managers and external users of accounting information to obtain an insight into the entire organization.


19. The financial information system assists managers to make decisions like,

  1. To ensure that there are sufficient funds on hand to pay for obligations
  2. To determine the bottleneck areas within the business
  3. To put excess funds to use in appropriate and reasonably liquid investments
  4. All of the mentioned above

Answer: D) All of the mentioned above

Explanation:

The financial information system assists managers to make decisions. To ensure that there are sufficient funds on hand to pay for obligations, To determine the bottleneck areas within the business, and To put excess funds to use in appropriate and reasonably liquid investments.


20. Amongst which of the following is most suitable option as ___ controls of accounting and financial systems are critical to protecting a company's sensitive data.

  1. Internal and external
  2. Inner and outer
  3. Input and output
  4. None of the mentioned above

Answer: A) Internal and external

Explanation:

The internal and external controls of an AIS are critical to protecting a company's sensitive data.


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