UNIVERSITY EXAMINATIONS: 2018/2019
EXAMINATION FOR THE DEGREE OF BACHELOR OF BUSINESS
INFORMATION TECHNOLOGY
BUSS204 ACCOUNTING INFORMATION SYSTEM
FULL TIME / PART TIME / DISTANCE LEARNING
DATE: APRIL, 2019 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.
QUESTION ONE
a) In accounting, ledgers and journals have specific meanings. Explain these terms. (4 Marks)
b) Discuss five factors that may be considered when selecting accounting software. (5 Marks)
c) Complete the following chart by indicating whether each account is an asset, liability, or equity and
its normal balance (either debit or credit): (10 Marks)
Account Type of Account Normal balance
Accounts Payable
Stock
Taxes Payable
Bank
Accruals
d) Explain the following control techniques and their significance in the context of data security.
i) Firewall (3 Marks)
ii) Intrusion Detection Software (3 Marks)
e) Describe any five typical features found in accounting system software. (5 Marks)
QUESTION TWO
(a) Discuss five reasons for initiating systems maintenance. (5 Marks)
(b) Briefly explain to your friend, who has no knowledge of accounting, the meaning of adjusting
entries. (3 Marks)
(c) Describe the two main types of accounting software. (2 Marks)
(d) Discuss the significance of a point of sale module in accounting system software. (4 Marks)
(e) Organizations have an ethical and moral obligation to implement controls to protect databases that
contain their customers’ personal information. Describe three ways of protecting the privacy of
personal information. (6 Marks)
QUESTION THREE
(a) Distinguish between the following set of terms: (4 Marks)
i) Trial balance and Balance sheet.
ii) Information architecture and information infrastructure
(b) Highlight five activities performed by an accounting information system. (5 Marks)
(c) With examples, distinguish between a transaction processing system and an office automation
system. (4 Marks)
(d) Discuss the primary elements of the value chain model and indicate the role played by AIS in the
value chain analysis. (7 Marks)
QUESTION FOUR
a) Describe the major steps in the accounting cycle. (6 Marks)
b) Explain four differences between a custom made accounting software and an off the shelf accounting
software. (4 Marks)
c) Explain five methods that can be used to gather user requirements during the systems development
process. (10 Marks)
QUESTION FIVE
a) Explain any Four strategies that can be used to manage Porter’s Five Forces. (4 Marks)
b) Compare and contrast between manual and computerized accounting. (5 Marks)
c) Identify four activities performed in the payroll cycle of an AIS. (4 Marks)
d) Discuss the stages followed in developing a business information system. (7 Marks)
