Quaid-i-Azam University

Accounting Information System & E-Commerce (MC-401)

M.Com. Part-II
Important Objectives

Chapters in Syllabus:1,2,3,4,5,6,7,8,11&1,2,3,4,5,6..12
Q-1 Encircle the correct option (01 Marks each)
1. Which of the following is not a financial transaction?
Purchase a product B) Update valid vendor file
C) Cash receipt D) Sale of inventory

2. Following is not included in the unique feature of E-Commerce:

A) Ubiquity B) Richness
C) Personalization D) Insurance

3. Which document triggers the update of the inventory subsidiary ledger?

A) Bill of loading B) Sale order
C) Stock release D) Shipping notice

4. Following is not a dimension of E-Commerce security.

A) Integrity B) authenticity
C) availability D) quality assurance
5. Which transaction is not processed in the fixed asset system?
A) Purchase of Building B) Purchase of few material
C) Repair of equipment D) Sole of company was
6. Following is the example of community provider in B2C Business Model.
A) Ask.com. B) Sears.com.
C) Face book.com D) E-bay
7. Conveyor system is used in:
A) Robotics B) Computer aided design
C) Automated retrieval & storage system D) All above
8. Which one is not included in the limitations of anime credit card payment system.
A) Security B) Cost
C) Social inqgedty D) Merchant risk
9. Customer payments remittances arrive at:
A) Mail room B) Controller office
C) Account receivable department D) A&C
10. Following is example of mnemonic codes:
A) 101 B) Ny New York
C) A&B D) none of the above
11. Which symbol is used for Data Store
A) B)
C) D) all above
12. Which is not a part / type of management information system:
A) GLS B) marketing system
C) Financial Management system D) human resources system

13. Internal structure of the records that constitute a file is

A) Record layout diagram B) Program flow chart
C) Entity relationship diagram D) None
14. Which document not prepared by sale department
A) Packing Slip B) Shipping Notice
C) Bill of Leading D) Time CARD
15. Which document shows the actual goods received?
A) Packing Slip B) Shipping Notice
C) Blind Copy of P.O D) Invoice
16. Which transaction is not processed in fixed Asset system?
A) Purchase of building B) Repair of equipment
 C) Purchase of raw material D) Sale of van
17. Who distribute paychecks?
A) Personnel B) Time Keeper
C) Paymaster D) None
18. Which one is offers users powerful web search tools
A) Transaction Broker B) Portal
C) Market Creator D) None
19. A good E-Commerce security include
A) New Technology B) Cost effective
C) A&B D) None
20. More time lag is available In
A) Cash Payment B) Checking Transfer
C) A&B D) None
21. Technology reaches across national boundaries is
A) Ubiquity B) Richness
C) Global reach D) None
22. Webs which sells directly goods to consumer is
A) Peer to Peer B) consumer2consumer
C) A&B D) None
23. A company that supplies product to a company is
A) Exchange B) E-Procurement
C) E- Distributor D) None

24. Use of internet & web to transact business is

A) E-Business B) E-commerce
C) A&B D) None

25. Technology reduces information cost & raises quality is:

A) Ubiquity B) Richness
C) Global reaches D) Information density
26. The ability to control the use of information about oneself is:
A) Privacy B) Integrity
C) A&B D) None

27. A computer program that has the ability to replicate or make copies itself &
spread to other files is:
A) Bot B) Botnut
C) Virus D) None

28. Worldwide network of computers is a:

A) Internet B) Web
C) A&B D) None

29. A chart of accounts would best be coded using Coding scheme:

A) Alphabetic B) block
C) Mnemonic D) Sequential

30. Following is a model of B2B:

A) E- Distributor B) Portal
C) E-tailor D) None

31. Following is a model of B2C:

A) E- procurement B) Exchanges
C) Content provider D) A&B

32. Following is not a security threat:

A) Bot B) Botnet
C) Virus D) Firewalls

33. Copies of sale order are distributed after the issue of:
A) Verified stock release document B) Shipping notice
C) Credit approval D) A&B
 34. Following is example of E-commerce payment system:
A) Cash B) Checking transfer
C) Digital cash D) none of the above

Q-2 Give the short answer of these questions in the given place: (2 Marks each)

1) Define information system?

Ans: The information system is the set of formal procedures by which data are collected,
processed into information, and distributed to users.

2) Name the major subsystems of revenue cycle.

Ans: 1) Sales order processing
2) Cash receipts

3) Differentiate between confidentiality & privacy?

Ans: Confidentiality refers to the ability to ensure that messages and data are available only
to those who are authorized to view them.
Privacy the ability to control the use of information about oneself.

4) Explain bill of lading?

Ans: A formal contract between the seller and the shipping company (carrier) to
transport the goods to the customer.

5) Define digital wallet?

Ans: Client-side wallets and software that reveal personal information to Web sites
verifying the identity of the consumer.

6) Explain Job Ticket and Time Card.

Ans: Job tickets capture the time that individual workers spend on each production
job.
Time cards capture the time the employee is at work.

7) Define portal?
Ans: Portal offers users powerful search tools as well as an integrated package of content and
services all in one Place. E.g. Yahoo, Gmail etc.

8) List the activities of Batch production.

Ans: (1) Plan and control production.
(2) Perform production operations.
(3) Maintain inventory control.
(4) Perform cost accounting.

9) List the Principles of lean manufacturing

Ans: Pull processing, perfect quality, Waste minimization, Inventory reduction, Production
flexibility, Established supplier relations, Team attitude.

10) Explain the advantages of ABC (Activity Based Costing)

Ans: More accurate costing of products/services, customers, and distribution channels.
Identifying the most and least profitable products and customers.
 Accurately tracking costs of activities and processes.
Equipping managers with cost intelligence to drive continuous improvements.
Facilitating better marketing mix.
Identifying waste and nonvalue-added activities.

11) What is E-Commerce? What are its types?

Ans: E-commerce the use of the Internet, the Web, and apps to transact business.

Types: Business-to-Consumer (B2C), Business-to-Business (B2B), Consumer-to

Consumer (C2C), Social E commerce , Mobile E-commerce (M-commerce), Local E
commerce.

12) Explain the role of Personnel department in payroll system?

Ans: The personnel department prepares personnel action forms that identify employees
authorized to receive a paycheck and are used to reflect changes in hourly pay rates,
payroll deductions, and job classification.

13) Explain Monitor inventory Record function in purchase order system?

Ans: Firms deplete (Reduce) their inventories by transferring raw materials into the
production process (the conversion cycle) and by selling finished goods to customers
(revenue cycle). In which inventory control monitors and records finished goods
inventory levels.

14) Explain Check Credit in sale order system?

Ans: Credit checking of prospective customers is a credit department function. This department
ensures the proper application of the firms credit policies. The principal concern is the
creditworthiness of the customer.

15) Define data flow diagram?

Ans: Use of a set of symbols in a diagram to represent the processes, data sources, data flows,
and process sequences of a current or proposed system.

16) Define universal standards

Ans: Universal standards that are shared by all nations around the world.

17) List the types of e-commerce?

Ans: Types: Business-to-Consumer (B2C), Business-to-Business (B2B), Consumer-to
Consumer(C2C), Social E- commerce, Mobile E-commerce (M-commerce), Local E
commerce.

18) List the security threats?

Ans: Malicious code
Potentially unwanted programs
Phishing
Hacking and cyber vandalism
Credit card fraud/theft
Spoofing
Pharming
Identity fraud
Denial of Service (DoS) and Distributed Denial of Service (DDoS) attacks

19) Name the major subsystems of the expenditure cycle?

Ans: Purchasing/Accounts Payable system

 Cash Disbursements system
Payroll system
Fixed Assets system

20) Distinguish between entity relationship diagrams & data flow

diagrams?

Ans: An entity relationship (ER) diagram is a documentation technique used to represent the
relationship between entities.

The data flow diagram (DFD) uses symbols to represent the entities, processes, data
flows, and data stores that pertain to a system.

21) Explain procedure of checking credit.

Ans: Ensures the proper application of the firms credit policies.
Checks credit worthiness of the customer.
Past payments and relations of customers with the company.
Approved if everything according to policies

22) Explain World Wide Web?

Ans: The World Wide Web (the Web) is one of the most popular services that runs
on the Internet infrastructure and provides easy access to Web pages.

23) List major B2B business models.

Ans: E-distributor
E-procurement
Exchanges
Industry Consortia
Private Industrial Networks

24) What are the specific objectives of a fixed asset system?

Ans: a) Process the acquisition of fixed assets.
b) Maintain adequate accounting records of asset acquisition (Cost, description, and
physical location in the organization).
c) Maintain accurate depreciation records.
d) Properly record the retirement and disposal of fixed assets.

25) List the dimensions of e-commerce security?

Ans: Integrity, Nonrepudiation, Authenticity, Confidentiality, Privacy, Availability.

26) Explain the source document?

Ans: Documents that capture and formalize transaction data needed for processing by their
respective transaction cycles.

27) Explain B2B e-commerce?

Ans: B2B e-commerce to describe all types of inter-firm trade to exchange value across
organizational boundaries.

28) Define credit card?

Ans: Credit card represents an account that extends credit to consumers, permits consumers
to purchase items while deferring payment, and allows consumers to make payments to
multiple vendors at one time

29) Explain debit card?

Ans: Debit cards immediately debit a checking or other demand-deposit account. Debit cards
are dependent on funds being available in a consumers bank account.
30) Information environment?
Ans: Informations is a business resource like the other business resources of raw materials,
capital, and labor. Every business day, vast quantities of information flow to decision
makers and other users to meet a variety of internal needs.

31) Distinguish between AIS and MIS?

Ans: The accounting information system (AIS) process financial transactions and nonfinancial
transactions that directly affect the processing of financial transactions.

The management information system (MIS) processes nonfinancial transactions that are
not normally processed by traditional AIS.

32) What is Transaction process cycle?

Ans: The transaction processing system (TPS) supports daily business operations with numerous
reports, documents, and messages for users throughout the organization.

33) Explain Record layout diagrams?

Ans: Record layout diagrams are used to reveal the internal structure of the records that
constitute a file or database table.

34) Data coding schemes?

Ans: Data coding involves creating simple numeric or alphabetic codes to represent complex
economic phenomena that facilitate efficient data processing.

35) Sales return procedure?

Ans: Prepare return slip.
Prepare credit memo.
Approve credit memo.
Update sales journal.
Update inventory and A/R records.
Update general ledger.

36) GLS data base?

Ans: The GLS database includes a variety of files. Whereas these will vary from firm to firm. It
incudes, general ledger master file, general ledger history file, journal voucher file,
journal voucher history file, responsibility center file, budget master file.

37) Financial reporting procedure?

Ans: Capture the transaction.
Record in special journal.
Post to subsidiary ledger.
Post to general ledger.
Prepare the unadjusted trial balance.
Make adjusting entries.
 Journalize and post adjusting entries.
Prepare the adjusted trial balance.
Prepare the financial statements.
Journalize and post the closing entries.
Prepare the post-closing trial balance.
38) Define Island technology?
Ans: Environment where modern automation exists in the form of islands that stand alone
within the traditional setting.

39) Explain credit card fraud?

40) Explain online credit card payment?
41) Define e-commerce security environment

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Important Long Questions
AIS
Long Questions:
Ch#01
1. What is system? Explain the general model of accounting information
system.
2. Define accounting information system and briefly explain different types of
information system?
3. What is system? Also briefly explain the AIS and MIS?
4. Explain the evaluation of information system model.

Ch#02

5. Write short note on: the conversion cycle and the expenditure cycle?
6. Define information system and also explain the transaction cycle?
7. What is transaction precisely explain the accounting records generally used
in manual and computerize base system?
8. Explain different documentation techniques?
9. Explain data flow diagram and system flow chart?

Ch#04

10.Generally explain the overview the activities of sale order?

11.Generally explain the controls of revenue cycle?
 12.Generally explain the activity of purchase order and payroll system and
controls of payroll system?
13.Explain the general activity of fixed asset system?
14.Explain the principles/rules of lean manufacturing?
15. What are the techniques and technologies used in lean manufacturing?
16. Explain the information system that support lean manufacturing?
17. What are the controls of financial reporting?
18. What are the factors that influence the management reporting system?
19. What kind of risks associated with ERP implementation?
20. What are the implications for internal control and auditing?
21.Briefly explain the financial reporting system and their procedure?

E-Commerce
Long Questions:
1. Explain the 8 unique features of E-commerce.

2. Types of E-commerce.

3. E-commerce business model.

4. Major business to consumer model and business to business model.

5. How internet and web change business strategy, structure and process?

6. E-commerce security environment?

7. Dimensions of E-commerce security.

8. Security threats in E-commerce environment.

9. Types of E-commerce payment system.

10. Internet audience and consumer behavior.

11. Basic marketing concept.1

12. Marketing communication.

13.Define e-commerce payment system.

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