UNIVERSITY EXAMINATIONS: 2011/2012
FIRST YEAR EXAMINATION FOR THE BACHELOR OF SCIENCE
IN INFORMATION TECHNOLOGY
BIT 1306 ACCOUNTING INFORMATION SYSTEMS
DATE: AUGUST, 2012 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and any other TWO
QUESTION ONE
a) Explain THREE main activities of Information Systems. [3 Marks]
b) Explain FIVE logical security controls that can be implemented in a
computerized information system. [10 Marks]
c) Explain TEN activities performed by Accountants in a typical organization
[5 Marks]
d) Discuss FIVE reason why studying the design and management of AIS is
important. [10 Marks]
e) State FOUR computerized accounting applications that are available in the
market. [2 Marks]
QUESTION TWO
a) Finance managers can make decisions at strategic, tactical or operational levels of
management. Explain the nature of decisions made at these levels of management.
[6 Marks]
b) Explain FOUR basic activities performed in the general ledger and reporting
system? [6 Marks]
c) Briefly explain FOUR subsystems available in Quick Books. [8 Marks]
QUESTION THREE
a) Explain how the following tasks can be accomplished in a computerized
accounting information systems especially QuickBooks
i. Activating inventory
ii. Entering a cash sale
iii. Receiving payments
iv. Creating a Backup
[8 Marks]
b) The objective of accounts payable is to authorize payment for goods and services
that were ordered and actually received. Discuss the key decisions that need to be
made in the a such expenditure cycle [8 Marks]
c) Using example discuss the following accounting concepts [ 4 Marks]
i. Audit trail
ii. Accruals
QUESTION FOUR
a) Describe the FOUR major business activities and related data processing
operations performed in the production cycle. [6 Marks]
b) Explain FOUR major threats in the production cycle, and evaluate the adequacy
of various control procedures for dealing with them. [8 Marks]
c) Describe why assets depreciate [2 Marks]
d) Enumerate and explain any two Depreciation methods [4 Marks ]
QUESTION FIVE
a) Describe the key elements of the following reports that are usually generated by
QuickBooks.
i. Income Statement [2 Marks]
ii. Balance Sheet [2 Marks]
iii. Audit Trail [2 Marks]
b) Explain FIVE basic activities performed in the payroll cycle system [10 Marks]
c) Suggest FOUR reasons that would lead to maintenance of finance computer
software. [4 Marks]
