BIT 1306  ACCOUNTING INFORMATION SYSTEMS KCA Past Paper

UNIVERSITY EXAMINATIONS: 2010/2011
FIRST YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF
SCIENCE IN INFORMATION TECHNOLOGY
BIT 1306: ACCOUNTING INFORMATION SYSTEMS
DATE: AUGUST 2011 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions

Question One (Compulsory)
a) Define the following terms
i) System (2 Marks)
ii) System Decomposition (2 Marks)
iii)Information System (2 Marks)
iv)Financial Transactions (2 Marks)
b) Explain the benefits of of a Distributed Processing System (6 Marks)
c) Discuss the four main areas of business ethics (8 Marks)
d) Expound on the three cycles of a transaction (6 Marks)
e) State the three types of computer files used in accounting information systems (2 Marks)
Question Two
a) Outline the three rules of segregation of functions (3 Marks)
b) Explain the characteristics that distinguishes between Modern systems and Legacy systems
characteristics (6 Marks)
c) Describe the point of sale system as used in an organization (6 Marks)
d) Discuss the advantages of Real-Time Data Input and Processing Over Batch Processing (5 Marks)
Question Three
a) Explain the elements of an IT audit (6 Marks)
b) Discuss the audit procedures in a disaster recovery plan (5 Marks)
c) Outline the requirements for effective operating systems performance (5 Marks)
d) Examine the advantages of using the REA Model (4 Marks)
Question Four
a) What are the basic types of QuickBooks tasks? (4 Marks)
b) Why do you need to learn what happens “behind the scenes” in QuickBooks? (3 Marks)
c) In QuickBooks, who is a customer (2 Marks)
d) What must you specify when creating an invoice? (2 Marks)
e) What account is debited when making a deposit using the Make Deposits window? (2 Marks)
f) Is true that when creating statements for customers you must produce a statement for every
customer in the Customer & Job List. (2 Marks)
g) Is true that a filter allows you to choose which information to include in your report. (2 Marks)
h) State any other three accounting packages other than quickbooks (3 Marks)
Question Five
a)Explain what you have to decide when entering bills? (6 Marks)
b) What decision has to be made when you write a check? (4 Marks)
c)Explain the main purposes of chart of accounts? (3 Marks)
d) What start date should you use for your company? (2 Marks)
e)What is an advantage of using subaccounts? (2 Marks)
f) When entering historical transactions, what type should be entered first? (2 Marks)
g) Is true that an administrator controls company preferences but not user preferences. (1 Mark)

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