UNIVERSITY EXAMINATIONS: 2018/2019
EXAMINATION FOR THE DEGREE OF BACHELOR OF BUSINES
BUSS 204: ACCOUNTING INFORMATION SYSTEM
FULL –TIME/ PART-TIME/ DISTANCE LEARNING
DATE: AUGUST 2019 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.
a) Explain the process of creating a company in QuickBooks. (4 Marks)
b) Distinguish between conceptual design and physical design. (2 Marks)
c) Describe the sequence of steps comprising the audit process. (8Marks)
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. (10 Marks)
(a) Describe how the following tasks can be accomplished in QuickBooks:
i. Activating inventory part item
ii. Journalizing transactions
iii. Receiving payments in QuickBooks
iv. Creating the list of Vendors
v. Generating the trial balance (10 Marks)
(b) Explain the meaning of the term “chart of accounts”. (2 Marks)
(c) Highlight four types of file processing activities. (4 Marks)
(d) Organizations have an ethical and moral obligation to implement controls to protect databases
that contain their customers’ personal information. Explain four ways of protecting the
privacy of personal information. (4 Marks)
(a) Distinguish between the following set of terms:
i) Journal and Ledger.
ii) Balance sheet and income statement
iii) Chart of accounts and audit trail (6 Marks)
(b) Explain the four main functions of an accounting system. (4 Marks)
(c) Highlight six characteristics that make information to be useful for decision making.
(d) Suggest four ways of improving accuracy and efficiency of data input in an accounting
system. (4 Marks)
a) Distinguish between real time, online and batch processing methods. (6 Marks)
b) Highlight two advantages and two disadvantages of system documentation. (4 Marks)
c) Describe five methods that can be used to gather user requirements during the systems
development process. (10 Marks)
a) Explain two types of audits that may be done in an accounting system. (4 Marks)
b) Identify the key activities performed in the revenue cycle of an accounting system.
c) Describe the stages that are followed in developing an accounting information system.