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: DECEMBER, 2018 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.
QUESTION ONE
a) In accounting, debit and credit have specific meanings. Explain these terms. (4 Marks)
b) Discuss five factors that can be used to determine the success of an accounting information
system. (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 Receivable
Marketable Securities
Taxes Payable
Land
Cost of Goods sold
d) Explain the following control techniques and their significance in the context of data
security.
i) Biometric control (3 Marks)
ii) Encryption (3 Marks)
e) Describe the five major subsystems found in an accounting system. (5 Marks)
QUESTION TWO
(a) Discuss five reasons for initiating systems development. (5 Marks)
(b) Briefly explain to your friend, who has no knowledge of accounting, the purpose of journal
entry. (3 Marks)
(c) List four examples of accounting packages. (2 Marks)
(d) Discuss four key features of accounting 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:
i) Journal and Ledger.
ii) Chart of accounts and audit trail (4 Marks)
(b) Summarize the five steps of the transaction processing cycle in a business information
system. (5 Marks)
(c) Differentiate between structured and unstructured decisions. (2 Marks)
(d) Discuss the elements of the value chain model and indicate the role played by AIS in the
value chain analysis. (9 Marks)
QUESTION FOUR
a) Describe the major steps in the accounting cycle. (6 Marks)
b) Because accounting software takes care of all the routine accounting functions, there is no
need to know anything about the accounting jargon. Comment. (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 forces in Porter’s Five Forces Model. (4 Marks)
b) Discuss five differences between manual and computerized accounting. (5 Marks)
c) Identify four activities performed in the revenue cycle of an AIS. (4 Marks)
d) Discuss the stages followed in developing a business information system. (7 Marks)
