AIS accounting Chapter 1 Essay

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A system is a collection of related resources designed to help a company achieve specified objectives.
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TRUE
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2) Accounting information systems are designed to gather and utilize information which may cost more to provide than it is worth to the user.
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FALSE
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3) The basic goal of accounting information systems is to convert financial data into information.
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TRUE
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4) Quick-response systems are essential to the total quality performance movement in business.
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TRUE
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5) All data processed and information stored in an accounting information system are mandatory for financial reporting purposes.
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FALSE
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6) A typical CRM contains one common database in which all departments with customer contact can access and update.
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TRUE
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7) A company can use QR codes to provide a convenient way to direct customers to its Web site by embedding them in advertising, such as magazines or in-store displays.
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TRUE
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8) An extended enterprise brings suppliers and customers together in order to meet customer demand while minimizing supplier costs.
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FALSE
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9) Procurement and firm infrastructure are examples of primary business processes.
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FALSE
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10) Good documentation means that records should be maintained by all parties involved in a transaction.
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TRUE
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11) Some organizations that use computers to process transactional data must have an information system function.
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FALSE
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12) The operations function allows specialization in areas such as operating systems and software and communications technology.
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FALSE
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13) Cloud computing describes the increasing trend for data processing capabilities to be provided as a service via the Internet.
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TRUE
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14) Most batch processing environments are JIT environments.
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FALSE
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15) XBRL is a language that facilitates the exchange of financial statements over the Internet.
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TRUE
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16) External users of accounting information include stockholders, investors, creditors, government agencies, customers and vendors, competitors, labor unions, and the public at large.
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TRUE
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17) A decision support system (DSS) is tailored to the strategic information needs of top-level management.
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FALSE
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18) The AIS benefits of information technology include automation, information organization, and communication.
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TRUE
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19) AIS application architecture currently focuses on automating the traditional accounting cycle.
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FALSE
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20) MRP and MRP II software was created to aid in Supply Chain Management (SCM).
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TRUE
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21) In CIM systems, computers control management-designed parts of the manufacturing process.
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FALSE
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22) Flexible manufacturing systems can be reprogrammed to produce entirely different products.
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TRUE
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23) The process management approach aids in the management and improvement of a company's processes in order to increase customer satisfaction while ignoring the company's cost structure.
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FALSE
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24) ERPs should reduce data duplication, increase communication between functional areas, and reduce complications of software updates.
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TRUE
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25) ERPs can either be industry-specific or based around "best practices" of various sized companies.
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TRUE
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26) ERPs are inexpensive and relatively easy to implement.
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FALSE
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27) ERP II adds an Enterprise Application Suite (EAS) to aid in the communication between functional areas.
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FALSE
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28) Business processes are always triggered by some economic event, and all have clearly defined starting and ending points.
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TRUE
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29) A key characteristic and benefit of business processes is that they are always limited to one functional area of the information system.
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FALSE
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30) Analyzing a company's value chain aids in the identification of a company's competitive advantages.
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TRUE
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31) Operational transaction cycles have traditionally grouped activities of a business into six common operational processes.
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FALSE
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32) Transactions are used by auditors to verify account balances and internal controls.
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TRUE
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33) The internal audit function and the accounting functions should not be segregated in order to increase a company's internal control.
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FALSE
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34) The director of internal auditing should report directly to the controller of the company.
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FALSE
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35) The treasurer is responsible for the budgeting and tax planning aspects of a business.
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FALSE
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36) The essence of cloud computing is that data storage is maintained by the end-user.
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FALSE
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37) A steering committee consists of high-level members of user functions such as manufacturing and marketing, as well as the head of the information system function and several of his or her staff.
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TRUE
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38) An information center is a support facility for end users in an organization.
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TRUE
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39) DBMS is the hands-on use of computers by end users.
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FALSE
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40) Quick Response code is a three-dimensional bar code.
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FALSE
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41) EDI is a key component to quick-response technology systems.
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TRUE
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42) The philosophy that one should do the right thing the first time is better known as TQM or TQP.
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TRUE
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43) RFID tags are used for tracking objects within a quick-response system.
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TRUE
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44) Only active RFID tags transmit signals containing digital information to receivers.
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FALSE
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45) Lean manufacturing focuses on eliminating waste from the entire value chain.
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FALSE
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46) A just-in- time manufacturing system is one form of lean manufacturing.
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TRUE
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47) Microsoft sponsors the Web TrustTM seal of approval to certain Web sites that meet their security and integrity criteria.
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FALSE
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48) Electronic data interchange (EDI) is the direct computer-to- end-user exchange of business documents via a communications network.
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FALSE
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49) ANSI X.12 is a public EDI standard.
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TRUE
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50) The SEC requires that all companies must file their financial reports electronically using XBRL.
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FALSE
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51) FedWire is a retail EFT system used for telephone wire transfers and payments.
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FALSE
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52) E-waste refers to dollars spent on unsuccessful implementations and technologies.
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FALSE
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53) Green IT states system design should include a plan for recycling and reusing system components.
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TRUE
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89) The term that best describes an information system that is tailored to the strategic information needs of top-level management is a(n) A) accounting information system B) expert system. C) executive information system. D) EDP system.
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C
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90) ________ are the only physical items that are absolutely required for a user of cloud computing. A) A data storage unit and an Internet connection B) A Web browser and a RFID card C) A QR reader and an Internet connection D) A Web browser and an Internet connection
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D
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91) Which of the following is not a common transaction processing cycle found in business organizations? A) Expenditure cycle B) Accounting cycle C) Production cycle D) Revenue cycle
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B
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92) Which of the following transaction processing cycles concerns events related to the distribution of goods and services to other organizations and the collection of related payments? A) Production B) Expenditure C) Financial reporting D) Revenue
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D
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93) The transaction processing cycle that is concerned with the events related to the transformation of resources into goods and services is a) production. B) revenue. C) financial reporting. D) expenditure.
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A
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94) A system that manages all contacts with customers is a ________ system. A) customer value chain B) customer relation management C) customer supply chain management D) customer requirements planning
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B
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95) A(n) ________ is a group of loosely connected companies that work together to maximize the value of their economic outputs. A) extended enterprise B) enterprise resource planners C) enterprise suite D) value chain consortium
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A
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96) A(n) ________ system encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. A) CRM B) SCM C) DSD) ES
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B
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97) The fundamental benefits of information technology for AISs include the following except A) communication B) information organization. C) systems development. D) automation.
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C
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98) ________ involves the process of ensuring the suite of organization's applications work together as a composite application according to the goals and objectives of the organization. A) Applications requirements planning B) Enterprise application structure C) Enterprise resource planning D) Applications architecture
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D
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99) Material requirements planning software assists management in managing A) inventories. B) overhead. C) scheduling production. D) both inventories and scheduling production.
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D
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100) The international quality-management standard credited for promoting the process management approach is the A) Six Sigma. B) ISA-95. C) ISO 9001. D) ISA-Y2K.
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C
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101) Which systems permit the reprogramming of computers to produce entirely different products in the same manufacturing facility with the same equipment? A) MRP and MRP II B) CIMs and FMSs C) ESs and FMSs D) ERPs and MRPs
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B
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102) A complete systems solution involving one software package and one database is referred to as A) ERP. B) MRP. C) SCM. D) DSS.
answer

A
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103) The following are benefits of an ERP except for the ability A) to eliminate data duplication and redundancy. B) to standardize data formats. C) to easily share data from various departments. D) to easily customize software to meet company needs.
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D
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104) Groups of organizations working together to create new products, new process methods, and/or human capital intelligence is referred to as a(n) A) ERP. B) e-commerce. C) collaborative commerce. D) application consortium.
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C
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105) A group of individual software applications designed to run in Web browsers and facilitated through a service oriented architecture (SOA) is referred to as a(n) A) ERP II. B) application architecture. C) value chain application suite. D) enterprise application suite.
answer

D
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106) What language facilitates business-to- business commerce through the extended value chain, which includes both manufacturers and their suppliers?a) VCML B) XBRL C) HTML D) COBOL
answer

A
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107) The staff position which would generally report to the treasurer rather than to the controller is A) budgeting. B) accounts payable. C) credit manager. D) cost accounting.
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C
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108) The high-level executive who supervises accounting functions such as budgeting, billing, and payroll is known as the A) treasurer. B) controller. C) chief information officer. D) chief internal auditor.
answer

B
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109) The three general phases of systems development projects and the order in which they occur are A) systems design, systems implementation, and systems analysis. B) systems design, systems implementation, and systems auditing. C) systems design, systems analysis, and systems programming. D) systems analysis, systems design, and systems implementation.
answer

D
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110) Quick Response reader application can typically ________. A) open a Web site B) display a video C) display text D) All of these answers are correct.
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D
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111) When information levels within an organization are viewed as a pyramid, strategic information is used primarily by A) lower-level management. B) top-level management. C) middle management. D) lower-level and middle management.
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B
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112) From an organization's viewpoint, a distinction can be drawn between the following two broad classes of accounting information. A) Historical and future B) Strategic and operational C) Internal and external D) Mandatory and discretionary
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D
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113) Which item listed below is not considered a primary business process? A) Marketing B) Outbound sales logistics C) Technology development D) Service
answer

C
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114) Which of the following is not an objective of internal control as a process? A) Reliability of financial reporting B) Accuracy of accounting information C) Compliance with applicable laws and regulations D) Effectiveness and efficiency of operations
answer

B
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115) The preparation of forecasts and analyses used by management in planning and controlling the operations of the organization is generally a(n) A) budgeting function. B) tax planning function. C) accounting manager function. D) treasurer function.
answer

A
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116) The internal audit function within an organization should be considered a(n) A) activity supervised by the controller. B) sub function of the treasurer. C) independent appraisal activity. D) optional service provided by the firm's external auditors.
answer

C
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117) The area of functional specialization which is responsible for the design, coding, testing, and debugging of computer programs is the A) technical support function. B) user function. C) operations function. D) programming function.
answer

D
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118) Information retrieval from the organization's database using the query language feature of DBMS is a common A) programming function. B) technical support function. C) EUC application D) ES application.
answer

C
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119) The technological philosophy that emphasizes "customer satisfaction" to the point of "customer obsession" is known as A) TQP. B) EDI. C) TQM.D) TQP and TQM.
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D
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120) Which of the following is not a consumer benefit of Web commerce? A) There is no waiting for a salesperson or product information. B) There is automatic electronic encoding of transaction data. C) Web-based transactions are encrypted providing security. D) Intelligent Web based software can provide answers to complicated questions.
answer

B
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121) Which of the following is not a benefit of electronic data interchange (EDI)? A) Electronic mail messges are interpreted by humans. B) EDI eliminates paper. C) EDI saves time. D) EDI may allow for EFT payments to vendor accounts.
answer

A
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122) Which of the statements below is false regarding extensible business reporting language (XBRL)? A) Many experts feel that XBRL will replace EDI. B) XBRL is in effect a narrower standard than the ANSI X.12 standard for EDI. C) The SEC allows use of the XBRL format. D) XBRL facilitates the exchange of business documents over the Internet.
answer

B
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123) The Clearing House Automated Payment System is also known as A) FedWire. B) CHIPS. C) CHAPS.D) EFT.
answer

C
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124) Which of the steps below is not part of the systems approach process? A) Creation of alternatives B) Statement of system objective(s) C) Systems evaluation D) All of the answers are steps in the systems approach process.
answer

D
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125) Which of the following is not one of the criteria of the design specification step of the systems approach to design? A) Using a team approach in many cases B) Sufficient detailed specifications for implementation process C) Identification of system inputs D) Strategies for producing system outputs
answer

A
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126) Which of the following is not an objective of a design group or project team charged with creating and implementing a new information system? A) Securing funding for a new information system B) Identifying needs to be satisfied by a new system C) Developing technical specifications for a new system D) Implementation of a new system
answer

A
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127) Which of the following is not an objective of internal control? A) Reliability of financial reporting B) Effectiveness and efficiency of operations C) Relevance of financial statements D) Compliance with applicable laws and regulations
answer

C
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128) An important quick response technology used to track objects using radio signals is called A) sonic tagging. B) radio frequency identification. C) object frequency tagging. D) frequency waves identification.
answer

B
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129) RFID tags include all of the following except A) active tags. B) passive tags. C) inactive tags. D) semi-passive tags.
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C
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130) Which of the following is not associated with lean manufacturing? A) CRM B) Toyota Production System C) Eliminating waste D) JIT
answer

A
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131) The following are EDI standards except A) ANSI X.12. B) AS2. C) eBXML. D) ISO-95.
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D
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132) Green IT is concerned with A) reducing e-waste by reusing and or refurbishing IT products. B) using less fuel in the creation of IT systems. C) designing more efficient systems in order to reduce necessary storage requirements. D) Green IT is concerned with all of the above.
answer

A
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133) The exchange of business documents such as purchase orders and invoices in an electronic format between the computers of separate organizations is known as A) e-mail. B) electronic data interchange. C) computer-integrated information system. D) electronic document exchange.
answer

B
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134) Which of the following specialized information systems would be the most useful in providing information for routine decisions? A) Decision support system B) Expert system C) Executive information system D) Accounting information system
answer

D
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135) Which of the following is not an example of good internal control? A) Having adequate records B) Being sure that everyone clearly understands his or her own responsibilities C) Making sure that each department is responsible for keeping its own accounting records D) Having periodic physical checks (or counts) of the inventory
answer

C
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136) Which officer, department, or division within an organization is responsible for monitoring the other departments to ensure that the organization's policies and procedures are being carried out? A) Internal auditing B) Vice President for Administration C) Chief Information Officer D) A steering committee
answer

A
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137) Which of the following is used to ensure a high degree of user involvement in the control of an information systems department? A) Maintenance programmers B) Operations manager C) Technical support committee D) Steering committee
answer

D
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138) Which of the following is not a merchant benefit of Web commerce? A) Cost savings through automated ordering B) Worldwide availability of the company's products C) No waiting in line for a salesperson or to obtain product information D) Low overhead
answer

C
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139) A company known for its use of blueprints in systems design for clients is A) SAM. B) SAP. C) SAS. D) SAR.
answer

B
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140) When should the actual users of a system be involved when a new system is being developed? A) As soon as the new system is implemented B) After all unexpected bugs and glitches have been found and corrected C) Only after all employees have been thoroughly trained to use the new system D) Throughout the design of the new system
answer

D
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141) Which of the following information characteristics pertains to the situation when a lower- level manager receives a well-defined, narrowly focused report, while a top-level manager receives a report covering more general topics? A) Level of aggregation B) Time horizon C) Scope D) Required accuracy
answer

C
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142) When a management report is discretionary rather than mandatory, the primary consideration should be A) that there are benefits to be obtained by producing the report. B) that the benefits obtained by producing the report exceed the cost of its production. C) to minimize the cost of producing the report while maintaining minimum standards of usefulness. D) to minimize the cost of producing the report while maintaining minimum standards of reliability and accuracy.
answer

B
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143) Which of the following groups would not be considered external users of the company's information? A) Factory supervisors B) Creditors C) Investors D) Labor unions
answer

A
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144) Internal users of reports from a company's information system might include all of the following except its A) chief executive officer. B) stockholders. C) payroll department. D) lower-level managers.
answer

B
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145) A report prepared exclusively for use by this group is almost always mandatory. A) The company's labor union B) The Internal Revenue Service C) The company's main bank D) The company's main supplier of its raw materials
answer

B
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146) In the systems approach to administering a systems project, which of the following phases should be performed first? A) Creating alternatives B) Analyzing the system C) Implementing the system D) Stating the system's objectives
answer

D
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147) A way of viewing company activities that breaks the activities down into components that can be individually optimized in terms of goals and strategies is known as the A) primary business process. B) accounting information system. C) value chain. D) internal control process.
answer

C
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148) Software that integrates business processes on a company-wide basis is called A) enterprise resource planning. B) executive information systems. C) expert systems. D) manufacturing information systems.
answer

A
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149) An accounting information system plays a key role in the internal control process, thereby helping management with its major responsibility of A) managing the internal audit function. B) stewardship. C) global-level marketing. D) managing the production cycle.
answer

B
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150) Which statement regarding internal control is false? A) Documentation is not a critical component of an internal control system. B) Ideally, a task can be divided to make job functions as natural checks on each other. C) A specific person should ideally be responsible for each task or job function. D) All records should allow cross-referencing from one area of responsibility to another.
answer

A
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151) An organization's internal control process consists of how many elements? A) Six B) Four C) Five D) Seven
answer

C
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152) When viewing a typical organization chart, the individual responsible for the finances of the business is the A) controller. B) president. C) vice president. D) treasurer.
answer

D

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