UNIVERSITY EXAMINATIONS: 2018/2019
EXAMINATION FOR THE DIPLOMA IN BUSINESS INFORMATION
TECHNOLOGY
DBIT207 BUSINESS APPLICATION SOFTWARE
DATE: AUGUST 2019 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.
QUESTION ONE
a) Explain the following terms in the context of accounting systems:
i) End user programming (2 Marks)
ii) Prototyping (2 Marks)
(b) QuickBooks provides different types of items to help you fill out sales and purchase forms
quickly. Explain when to use inventory part and non inventory part types of items.
(4 Marks)
(c) Explain how to create a chart of accounts in QuickBooks. (4 Marks)
(d) Give three examples of unintentional acts that may threaten the security of a computerized
accounting system. (3 Marks)
(e) Explain how transaction cycles in an accounting system relate to each other. (5 Marks)
(f) Define auditing and highlight the sequence of activities followed in the auditing process.
(5 Marks)
(h) Elaborate how the AIS can help an organization to achieve a competitive advantage in its
industry. (5 Marks)
QUESTION TWO
(a) Explain four logical controls in an accounting information system. (4 Marks)
(b) With appropriate examples identify the type of raw data that is entered in an accounting
system. (3 Marks)
(c) Explain the relevance of AIS in the value chain system of an organization. (8 Marks)
(d) Denote the accounting cycle for sales order processing. (5 Marks)
QUESTION THREE
(a) Compare between the types of audits that may be performed to examine the elements of a
computerized accounting system. (9 Marks)
(b) Define an entity and explain how entities are categorized in an accounting system.
(6 Marks)
(c) Describe the features that may be turned off during the Easy Step Interview in QuickBooks.
(5 Marks)
QUESTION FOUR
(a) With appropriate examples explain the main types of decisions that an accounting system can
aid in making in the production cycle. (6 Marks)
(b) Write down six key questions that a system developer would ask an accountant during the
initial stages of AIS development. (6 Marks)
(c) Explain the detailed activities that take place to produce an adjusted Trial Balance.
(4 Marks)
(d) Give your arguments for an ERP as opposed to a standalone accounting software.
(4 Marks)
QUESTION FIVE
(i) With reference to QuickBooks explain in details how:
(a) An inventory item is created. (2 Marks)
(b) How to access the Write Check window. (2 Marks)
(c) The procedure followed to record customer personal details. (2 Marks)
(d) How to change the currency symbol to Kshs. (2 Marks)
(ii) Identify and explain the threats and controls in the expenditure cycle of the AIS.
(6 Marks)
(iii) Explain the procedure for developing and implementing a database system in an accounting
system. (6 Marks)
