question

AIS

answer

a system that records, processes and reports on transactions to provide financial and non financial information to make decisions and have appropriate levels of internal controls for those transactions

question

automate

answer

the use of technology to replace human labor in automating business processes

question

business value

answer

items, events and interactions that determine the financial health and well0being of the firm

question

CITP (certified information technology professional)

answer

the CITP designation identifies accountants with a broad range of technology knowledge and experiences

question

CISA (certified information systems auditor)

answer

identifies those professionals possessing IT audit, control and security skills

question

CIA (certified internal auditor)

answer

certification for internal auditors and is the standard to demonstrate competency and professionalism in the internal auditing field

question

CRM (customer relationship management)

answer

software used to manage and nurture a firm's interactions with its current and potential clients, strong firm-to-customer relationships

question

data

answer

raw facts or statistics that, absent a context, may have little meaning

question

discretionary information

answer

information that is generated according to one's own judgement

question

enterprise system (ES)

answer

a centralized database that collects data from throughout the firm

question

firm infrastructure

answer

activities needed to support the firm including the CEO and the finance, accounting and legal departments

question

Human resource management

answer

activities including recruiting, hiring, training and compensating employees

question

Inbound logistics

answer

activities associated with receiving and storing raw materials and other partially completed materials and distributing those materials to manufacturing when and where they are needed

question

informate-down

answer

the use of computer technology to provide information about business activities to employees across the firm

question

informate-up

answer

the use of computer technology to provide information about business activities to senior management

question

information

answer

data organized in a meaningful way to users

question

information overload

answer

the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information

question

information value chain

answer

the overall transformation from a business need and business event to the collection of data and information to an ultimate decision

question

mandatory information

answer

information that is required to be generated or provided by law or regulation

question

marketing and sales activities

answer

activities that identify the needs and wants of their customers to help attract them to the firm's products and buy them

question

operations

answer

activities that transform inputs into finished goods and services

question

outbound logisitcs

answer

activities that warehouse and distribute the finished goods to the customers

question

procurement

answer

activities involve purchasing inputs such as raw materials, supplies and equipment

question

relevance

answer

information that is capable of making a difference in a decision

question

reliability

answer

information that is free from bias and error

question

service activities

answer

activities that provide the support of customers after the products and services are sold to them

question

supply chain

answer

the flow of materials, information, payments and services from raw materials suppliers, through factories and warehouses all the way to the final customers of the firm's products

question

supply chain management (SCM) software

answer

software that connects the focal firms with its suppliers, it generally addresses segments of the supply chain, including manufacturing, inventory control and transportation

question

system analyst

answer

person responsible for both determining the information needs of the business and designing a system to meet those needs

question

technology

answer

supports value-creating activities in the value change

question

transform

answer

the use of technology to fundamentally redefine business processes and relationships

question

value chain

answer

a chain of critical business processes at a company that creates value

question

Conversion labor costs become part of cost of goods sold.

answer

True

question

Gateways can direct sequence flow to support looping.

answer

True

question

Business rules describe appropriate actions to take based on process conditions.

answer

True

question

Application controls limit access to viewing and changing records in a system.

answer

False

question

A labor plan class would establish standard overhead allocation rates.

answer

True

question

Which of the following types of business is least likely to employ a conversion process? A. Restaurant B. Retail store C. Bakery D. Machine shop

answer

Retail

question

Which of the following is not a basic activity in the conversion process? A. Issue raw material B. Perform work and account for labor C. Ship products to stores D. Authorize production

answer

Ship Products to stores

question

Which of the following best describes the purpose of an intermediate error event? A. Directs sequence flow when an activity aborts B. Delays the sequence until a specified time C. Waits for external messages D. Ends a process

answer

Directs sequence flow when an activity aborts

question

Consider the following BPMN diagram of a subprocess. Which of the following is required to correct an error in the diagram? A. Change the intermediate event to a start event. B. Change the intermediate error event to an exclusive gateway C. Add a sequence flow to an end event after the discard errors activity. D. Drop the activity named Discard Errors.

answer

Add a sequence flow to an end event after the discard errors activity

question

Which of the following is the best reason that a collaboration model would not be used to diagram the conversion process? A. All conversion activities are internal to the organization. B. A collaboration model does not include swimlanes. C. The orchestration of the activities is not shown in a collaboration model. D. The choreography between pools is not shown in a collaboration model.

answer

All conversion activities are internal to the organization.

question

Which of the following least reflects the purpose of a business rule in the conversion process? A. Segregating authorizing, issuing, and conversion work duties B. Limiting who can view and change records in the system C. Ensuring no production without a customer order D. Assuring that all products meet quality standards

answer

Ensuring no production without a customer order

question

In a basic UML diagram of the conversion process, which of the following best describes the purpose of a duality association? A. Shows the participation of employees in the process. B. Links work in process events to the original production authorization. C. Indicates issue of raw material into the process. D. Tracks completion of work in process and increase to finished goods inventory.

answer

Links work in process events to the original production authorization.

question

Which of the following best describes the purpose of a bill of material class? A. Links each raw material item to one or more finished good items. B. Shows the issues of raw material items into work in process. C. Links finished goods to production. D. Shows the raw material usage variance.

answer

Links each raw material item to one or more finished good items.

question

Many companies record both purchase orders and purchases; when would such a company recognize the purchase? A. When the purchase order is issued. B. When the supplier receives the purchase order. C. When the products are received from the supplier and accepted. D. When the products are sold.

answer

When the products are received from the supplier and accepted.

question

In a BPMN collaboration model of the purchase process, one pool describes the focal organization's activities and the other pool describes what? A. The supplier's activities B. The customer's activities C. The sequence of steps in the process D. The message flows between the pools

answer

The supplier's activities

question

In a BPMN collaboration model of the purchase process, which of the following is the appropriate term for the message flows between pools? A. Orchestration B. Choreography C. Collaboration D. Intermediate events

answer

Choreography

question

In a BPMN collaboration model of the purchase process, which of the following best describes the purpose of swimlanes is which of the following? A. Capturing the process complexity B. Clarifying the interaction between pools C. Showing the sequence of activities in a pool D. Showing different jobs in the purchase process

answer

Showing different jobs in the purchase process

question

In a BPMN activity diagram, which of the following best describes the purpose of an intermediate timer event? A. Represent a time delay B. Indicates a delay to a specific date/time C. Indicates a delay to a relative date, such as next Thursday D. All of the above

answer

All of the above

question

Which of the following least reflects the purpose of a business rule in the purchase process? A. Ensure suppliers are paid on time B. Require segregation of order, receiving, and payment duties C. Ensure suppliers are satisfied D. Ensure an audit trail

answer

Ensure suppliers are satisfied

question

Type images can be used to allow process information to be summarized by category.

answer

True

question

BPMN models can describe the collaboration between two organizations using pools.

answer

True

question

A BPMN process flow can start in one pool and end in the collaborating pool.

answer

False

question

In a collaboration model using BPMN, the interaction between participants is called orchestration.

answer

False

question

A pool in a BPMN model does not actually have to display any activities.

answer

True

question

An intermediate error event can be used to model process exceptions.

answer

True

question

Application controls limit who can change records in a system.

answer

False

question

Segregation of duties is an example of a COSO control activity.

answer

True

question

Business rules are unrelated to COSO control activities, although they serve an important purpose.

answer

False

question

One-to-many relationships are implemented by posting a foreign key.

answer

True

question

One-to-one relationships are implemented by creating a linking table.

answer

False

question

Which of the following best describes the purpose of a BPMN collapsed sub-process? A. Show the interchange between two pools. B. Depict the sequence of activities in one pool. C. Contain a series of activities that are hidden from view. D. Illustrate process flow when an exception occurs.

answer

Contain a series of activities that are hidden from view.

question

Which of the following best describes the purpose of an intermediate error event? A. Show the interchange between two pools. B. Depict the sequence of activities in one pool. C. Contain a series of activities that are hidden from view. D. Illustrate process flow when an exception occurs.

answer

Illustrate process flow when an exception occurs.

question

Which of the following best describes the difference between access controls and application controls? A. Access controls limit who can change records and application controls provide an audit trail of any changes. B. Access controls implement business rules and application controls do not. C. Access controls are "prohibited" business rules and application controls are "allowed" business rules. D. There is no difference between access and application controls.

answer

Access controls limit who can change records and application controls provide an audit trail of any changes.

question

Three types of data models used today are: the hierarchical model, the network model and the relational model.

answer

True

question

In a hierarchical data model, data elements are related in many-to-many relationships.

answer

False

question

Classes could be grouped into Resources (R), Entity (E), and Assets (A) in data modeling.

answer

False

question

Queries in Access are utilized by users to enter data into tables and view existing records.

answer

False

question

Cloud computing is an internet-based computing where shared resources, software, and information is provided to firms on demand.

answer

True

question

While hierarchical and network data models require relationships to be formed at the database creation, relational data models can be made up as needed.

answer

True

question

Each attribute in a table can have several names.

answer

False

question

Access is a simple database management system that can be used to run databases for individuals and small firms.

answer

True

question

Which type of data models allows each record to have multiple parent and child records? A. The hierarchical mode B. The network model C. The relational model D. None of the above

answer

The network model

question

Which of the following correctly describes the Referential Integrity Rule? A. The primary key of a table must have data values (cannot be null) B. Each attribute in a table must have a unique name C. The data value for a foreign key could be null D. Values of a specific attribute must be of the same type

answer

The data value for a foreign key could be null

question

Which of the following tasks cannot be performed through queries in access? A. Retrieve and display data B. Calculations of data C. Data sorting D. Enter data into tables

answer

Enter data into tables

question

In Microsoft Access, we use tables in a database for: A. Data entry B. Data storage C. Data retrieval D. Two of the above are correct.

answer

Data storage

question

A company would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application? A. A decision support system. B. An executive support system. C. An office automation system. D. An enterprise resource planning system.

answer

An enterprise resource planning system.

question

An enterprise resource planning system has which of the following advantages over multiple independent functional systems? A. Modifications can be made to each module without affecting other modules. B. Increased responsiveness and flexibility while aiding in the decision-making process. C. Increased amount of data redundancy since more than one module contains the same information. D. Reduction in costs for implementation and training.

answer

Increased responsiveness and flexibility while aiding in the decision-making process.

question

What kind data model is most commonly used as a basis for today's enterprise systems? A. The hierarchical mode B. The network model C. The relational model D. None of the above

answer

The relational model

question

The property of the primary key in a table in Microsoft Access should be set to: A. The required field = "Yes", the Indexed field = "Yes (No Duplicates)" B. The Required field = "NO" and the Indexed field = "Yes (No Duplicates)" C. The Required field = "Yes" and the Indexed field = "Yes (Duplicated)" D. The Required field = "NO" and the Indexed field = "No (Duplicates)"

answer

The required field = "Yes", the Indexed field = "Yes (No Duplicates)"

question

Which of the following is considered as class in the relational database model? A. Customer B. Sale C. Cash D. All of the above are correct

answer

All of the above are correct

question

To convert a conceptual model with a maximum Multiplicities relationship of "many to many" into relationship database tables, one must A. Create a foreign key in one of the tables to link the two tables. B. Create a relation with no attributes of its own. C. Create a relationship table to handle the many-to-many relationship. D. Many-to-many relationship cannot be represented in Access.

answer

Create a relationship table to handle the many-to-many relationship.

question

Which of the following is not a type of data model? A. Hierarchical data model B. Network data model C. Normalization data model D. Relational data model

answer

Normalization data model

question

What kind of data models is most commonly used in today's business environment? A. Hierarchical data model B. Network data model C. Relational data model D. All of the above

answer

Relational data model

question

Which of the following about cloud computing is incorrect? A. Cloud computing is Internet-based computing where shared resources, software, and information are provided to firms on demand. B. Cloud Computing can easily host enterprise system applications. C. One major issue on using cloud computing is about security. D. Clients using cloud computing do not need to periodically backup data.

answer

Clients using cloud computing do not need to periodically backup data.

question

Which of the following items can best be described as a "Resource" in the REA data model? A. Cashier B. Sales C. Cash D. Two of the above are correct.

answer

Cash

question

Which of the following items can best be described as an "Event" in the REA data model? A. Cash. B. Cashier. C. Cash collection. D. None of the above is correct.

answer

Cash collection.

question

Which of the following items can best be described as an "Agent" in the REA data model? A. Purchases. B. Accounts payable clerk. C. Raw material inventory. D. None of the above is correct.

answer

Accounts payable clerk.

question

Which of the following resources is usually not modeled as an entity (table) in an REA data model? A. Cash B. Inventory C. Accounts receivable D. Property, plant and equipment

answer

Accounts receivable

question

The Object Management Group maintains the standard for Unified Modeling Language (UML) Class diagrams.

answer

True

question

Unified Modeling Language (UML) Class diagrams describe the logical structure of a database system.

answer

True

question

3. A Class is a separately identifiable collection of business relationships. FALSE

answer

False

question

In Unified Modeling Language (UML) Class diagrams, a Class is represented by a rectangle

answer

True

question

In Unified Modeling Language (UML) Class diagrams, Associations are represented by dashed lines.

answer

False

question

In Unified Modeling Language (UML) the options for minimum multiplicity values are 0, 1, and 2.

answer

False

question

In Unified Modeling Language (UML) the options for maximum multiplicity values are 1 and *.

answer

True

question

In Unified Modeling Language (UML) the options for maximum multiplicity values are 0 and *.

answer

False

question

In Unified Modeling Language (UML) the options for minimum multiplicity values are 1 and *.

answer

False

question

In Unified Modeling Language (UML) attributes are characteristics of individual instances of a Class.

answer

True

question

In Unified Modeling Language (UML) primary keys cannot by NULL.

answer

True

question

n Unified Modeling Language (UML) primary keys may be blank.

answer

False

question

In Unified Modeling Language (UML) foreign keys allow tables to be linked together in a database.

answer

True

question

A generalization relationship models a grouping of things that share common characteristics.

answer

True

question

An aggregation relationship is a form of generalization relationships.

answer

False

question

Associations can indicate the roles that one Class takes in its business relationship with another Class.

answer

True

question

A database should have exactly the same number of tables as there are Classes in the Unified Modeling Language (UML) Class diagram from which the database is developed.

answer

False

question

When building a database from Unified Modeling Language (UML) Class diagrams, each instance of each Class becomes a row in the corresponding table.

answer

True

question

Obligatory business rules state what should not occur.

answer

False

question

Business rules set criteria for branching in activity models.

answer

True

question

Which of the following is not something a model of database structures must be able to describe? A. The entities or things in the domain of interest B. The sequence that entities are accessed C. The cardinalities that describe how many instances of one entity can be related to another D. The attributes or characteristics of the entities and relationships

answer

The sequence that entities are accessed

question

Which of the following would be least likely to be represented with a Unified Modeling Language (UML) Class? A. Trucks B. The number of trucks used in the delivery C. The employee driving the truck D. The customer receiving the delivery

answer

The number of trucks used in the delivery

question

Which of the following is the best description of an association? A. A group of classes B. The lines in a UML Class diagram C. The relationship between two classes D. The number of times one class is related to another

answer

The relationship between two classes

question

Which of following are possible options for minimum multiplicities? A. 0 and 1 B. 0 and * C. * and 1 D. 0, 1, and *

answer

0 and 1

question

Which of the following best describes the purpose of a primary key? A. Allows linking two or more tables B. Indicates the minimum multiplicities for an association C. Matches values of foreign keys in other classes D. Uniquely identifies each instance of the class

answer

Uniquely identifies each instance of the class

question

Which of the following statements about foreign keys is not true? A. A foreign key can be a combination of attributes. B. A foreign key cannot be NULL. C. Foreign key must match values of the linked primary key. D. Foreign keys support a defined association.

answer

A foreign key cannot be NULL.

question

Which of the following is not a criterion for selection of a primary key? A. The primary key cannot be NULL (blank). B. The primary key should be controlled by the organization assigning it. C. Primary keys with sequential values make it easier to spot gaps in the data. D. Longer key values are better than shorter key values.

answer

Longer key values are better than shorter key values.

question

Which of the following is not a best practice in preparing Unified Modeling Language (UML) Class diagrams? A. Opt for simplicity. B. Model each process separately. C. Avoid crossing lines whenever possible. D. Avoid confusing abbreviations.

answer

Model each process separately.

question

Which of the following is not a step in using a Unified Modeling Language (UML) Class model to prepare a database? A. Map Classes to Tables. B. Map Attributes to Table Fields. C. Map Associations to Primary Keys. D. Map Associations to Foreign Keys.

answer

Map Associations to Primary Keys.

question

Which of the following is not a form of business rules? A. Compulsory B. Obligatory C. Prohibited D. Allowed

answer

Compulsory

question

Which of the following is a well-formed business rule? A. Customers must be over 18 years of age. B. Customers may not be under 18 years of age. C. Customers must pay in U. S. dollars. D. All of these are well-formed business rules.

answer

All of these are well-formed business rules.

question

Entity-relationship diagrams (ERDs) are similar in content and purpose to Unified Modeling Language (UML) Class diagrams. Which of the following is not a basic building block of ERDs? A. Relationships B. Associations C. Attributes D. Entities

answer

Associations

question

Accountants now face a challenge of helping businesses optimize processes.

answer

True

question

To be valuable business partners, accountants must understand how the business delivers value to its employees.

answer

False

question

A business process constrains business rules.

answer

False

question

A business model is typically a graphical depiction of the essential business process information.

answer

True

question

Documentation can be thought of as a tool for information transmission and communication.

answer

True

question

Documentation helps with training but won't help with regulatory compliance issues.

answer

False

question

Models should be simpler than the processes and systems they depict.

answer

True

question

Because business models are simpler than the processes they depict, they are limited in their ability to integrate local views of a process.

answer

False

question

Activity models are a relatively new process modeling tool.

answer

False

question

In Business Process Modeling Notation (BPMN), activities are named with a short verb phrase placed within the rectangle.

answer

True

question

Business Process Modeling Notation (BPMN) activity models show the sequence of flow from right to left and top to bottom.

answer

False

question

Business Process Modeling Notation (BPMN) activity diagrams depict events as circles.

answer

True

question

Business Process Modeling Notation (BPMN) activity diagrams depict activities as circles.

answer

False

question

An activity can depict a single action or some logical combination of actions depending on the required level of detail to achieve the objectives of the business process analysis.

answer

True

question

Gateways show decisions and possible branching as a result of the decision.

answer

False

question

Swimlanes identify participants, e.g., organizations, in a process.

answer

True

question

Business Process Modeling Notation (BPMN) activity diagrams are conceptually similar to process maps.

answer

True

question

Business Process Modeling Notation (BPMN) start events are shown using ovals and flowchart start events are shown using circles.

answer

False

question

Opportunity flowcharts identify opportunities for process improvement by separating value-added from non-value-added activities.

answer

True

question

Data Flow Diagrams start with a circle indicating the start event.

answer

False

question

Which of the following is not a Stewardship and Reporting role of the Accounting/Finance Function in Business? A. Human Resource management B. Regulatory compliance C. Tax returns D. Statutory reporting

answer

Human Resource management

question

Which of the following is not a Business Management Support role of the Accounting/Finance Function in Business? A. Management information B. Planning, budgeting and forecasting C. Financial consolidation, reporting and analysis D. Investment appraisal

answer

Financial consolidation, reporting and analysis

question

Which of the following is not an Accounting/Finance Operations role of the Accounting/Finance Function in Business? A. Financial close - completing period end accounts B. Stakeholder assurance C. People management D. Financial consolidation, reporting and analysis

answer

Stakeholder assurance

question

Which of the following is not part of the business analysis process? A. Ascertaining information about current and future business processes. B. Using business process modeling tools. C. Using IT to make finance and accounting processes more efficient and effective. D. Documenting current and future business processes.

answer

Using IT to make finance and accounting processes more efficient and effective.

question

Which of the following best describes a business model? A. A simple, abstract representation of a business process or processes. B. A sequence of business activities. C. An evaluation of potential business process improvements. D. None of the above.

answer

A simple, abstract representation of a business process or processes.

question

Process documentation does not include which of the following? A. Process models B. Business rules C. User manuals D. External audit workpapers

answer

External audit workpapers

question

Which of the following is not a purpose of documentation? A. Training B. Determining staffing C. Describing current processes D. Establishing accountability

answer

Determining staffing

question

Business models provide value in all of the following areas except which one? A. Employee performance appraisal B. Managing complexity C. Specifying systems requirements D. Eliciting requirements for new systems

answer

Employee performance appraisal

question

Which of the following best describes the purpose of an activity model? A. An activity model describes the sequence of workflow in a business process. B. An activity model constrains and guides process operations. C. An activity model depicts data structures. D. None of the above.

answer

An activity model describes the sequence of workflow in a business process.

question

Which of the following is not a common element of activity models regardless of the specific modeling notation? A. Events to start and stop the workflow B. Sequence of flow between tasks C. Multiplicities D. Decision points that affect the process flow

answer

Multiplicities

question

Which of the following is not a building block for Business Process Modeling Notation (BPMN) diagrams? A. Associations B. Events C. Gateways D. Sequence flows

answer

Associations

question

Which of the following best describes the purpose of an event in a Business Process Modeling Notation (BPMN) activity diagram? A. Shows where the work takes place. B. Describes the sequence of workflow. C. Affects the flow of the business process. D. Controls branching and merging.

answer

Affects the flow of the business process.

question

Which of the following best describes the purpose of a gateway in a Business Process Modeling Notation (BPMN) activity diagram? A. Shows where the work takes place. B. Describes the sequence of workflow. C. Affects the flow of the business process. D. Controls branching and merging.

answer

D. Controls branching and merging.

question

Which of the following symbols depicts an intermediate event? A. An arrow B. A circle with a double line perimeter C. A rectangle D. A circle with a wide single line perimeter

answer

A circle with a double line perimeter

question

Which of the following symbols depicts an activity? A. An arrow B. A circle with a double line perimeter C. A rectangle D. A circle with a wide single line perimeter

answer

A rectangle

question

Which of the following symbols is used to depict different organizations in one Business Process Modeling Notation (BPMN) diagram? A. Gateway B. Message flow C. Pool D. Intermediate event

answer

Pool

question

Which of the following best describes the purpose of a swimlane? A. Depicts different organizations involved in a process. B. Depicts different departments of the same organization in a process. C. Depicts interactions between organizations in a process. D. Depicts the sequence of tasks in a process.

answer

Depicts different departments of the same organization in a process.

question

Which of the following best describes a Business Process Modeling Notation (BPMN) message flow? A. Shows sequence of activities in a process. B. Shows interactions between participants in a process. C. Affects the flow of a business process. D. Shows branching and merging in a business process.

answer

Shows interactions between participants in a process.

question

Which of the following best describes the difference between a Business Process Modeling Notation (BPMN) gateway and a flowcharting decision diamond? A. Only the decision diamond shows branching of the sequence flow. B. The gateway only represents branching and not the decision that results in branching. C. Only the gateway shows branching of the sequence flow. D. The decision diamond can depict more branching options.

answer

The gateway only represents branching and not the decision that results in branching.

question

Which of the following is a difference between Business Process Modeling Notation (BPMN) activity diagrams and flowcharts? A. BPMN symbols can show a variety of intermediate events that affect the sequence flow. B. Flowcharts have symbols to represent the start and end of a process. C. BPMN diagrams show the sequence flow of activities. D. Flowcharts can be annotated with text.

answer

BPMN symbols can show a variety of intermediate events that affect the sequence flow.

question

Accounting and Finance is a primary activity in the value chain.

answer

False

question

Accounting Information Systems at this date are all computerized.

answer

False

question

Business value includes all those items, events and interactions that determine the financial health and well-being of the firm.

answer

True

question

The Certified Information Technology Professional (CITP) is a professional designation for those with broad range of technology knowledge and does not require a CPA.

answer

False

question

The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those performing IT audits.

answer

True

question

Information is defined as being data organized in a meaningful way to be useful to the user.

answer

True

question

Data is defined as being information organized in a meaningful way to be useful to the user.

answer

False

question

A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.

answer

True

question

A value chain is defined as the flow of materials, information, payments, and services from customer to supplier.

answer

False

question

Relevant information is that information that is free from bias and error.

answer

False

question

The characteristics of relevant information include predictive value, feedback value and timeliness.

answer

True

question

The characteristics of reliable information are that the information is verifiable, without bias and timely.

answer

False

question

Information overload is defined as the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.

answer

True

question

The main financial benefit of Customer Relationship Management practices reduces the cost of goods sold.

answer

False

question

An efficient Enterprise System can significantly lower the cost of support processes included in sales, general, and administrative expenses.

answer

True

question

An accounting information system (AIS) is defined as being an information system that records, processes and reports on transactions to provide financial information for decision making and control.

answer

True

question

An enterprise system is a centralized database that collects data from throughout the firm. This includes data from orders, customers, sales, inventory and employees

answer

True

question

Outbound logistics are the activities associated with receiving and storing raw materials and other partially completed materials, and distributing those materials to manufacturing when and where they are needed.

answer

False

question

Service Activities as defined in the value chain are those activities that provide the support of customers after the products and services are sold to them (e.g. warranty repairs, parts, instruction manuals, etc.).

answer

True

question

A well-designed and well-functioning AIS can be expected to create value by providing relevant information helpful to management to increase revenues and reduce expenses.

answer

True

question

Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue Service is an example of discretionary information.

answer

False

question

An enterprise system is primarily used to manage and nurture a firm's interactions with its current and potential clients.

answer

False

question

The Sarbanes-Oxley Act of 2002 is a federal law in the United States that set new and enhanced standards for all U.S. public companies, management and public accounting firms.

answer

True

question

CRM software often includes the use of database marketing tools to learn more about the customers and to develop strong firm-to-customer relationships.

answer

True

question

The Certified Information Technology Professional is the position created by the AICPA to recognize CPAs who have the ability to provide skilled professional services on Information Technology.

answer

True

question

Accounting information systems are: A. Always computerized. B. Report only accounting information. C. Records, processes and reports D. Are for computer games

answer

Records, processes and reports

question

Which of the following are not a characteristic of useful information? A. Easy to understand B. Feedback value. C. Timely D. Representational Faithfulness

answer

Easy to understand

question

Which of the following are considered to be mandatory information required by a regulatory body? A. Financial reports for the Securities and Exchange Commission B. The amount of taxes saved by a merger C. The total dollar value of fireworks that are sold on July 4. D. The cost to build an all-new Starbucks restaurant in Abu Dhabi.

answer

Financial reports for the Securities and Exchange Commission

question

The correct order of effects in the value chain are: A. Inbound Logistics ? Operations ? Service B. Inbound Logistics ? Outbound Logistics ? Marketing & Sales C. Inbound Logistics ? Operations ? Outbound Logistics D. Inbound Logistics ? Operations ? Shipping

answer

Inbound Logistics ? Operations ? Outbound Logistics

question

Which designation would most appropriate for those professionals possessing an IT audit, control and security skills? A. Certified Internal Auditor (CIA) B. Certified Public Accountant (CPA) C. Certified Information Technology Professional (CITP) D. Certified Information Systems Auditors (CISA)

answer

Certified Information Systems Auditors (CISA)

question

Which designation is for CPAs with a broad range of technology knowledge and experience? A. Certified Internal Auditor (CIA) B. Certified Public Accountant (CPA) C. Certified Information Technology Professional (CITP) D. Certified Information Systems Auditors (CISA)

answer

Certified Information Technology Professional (CITP)

question

A supply chain: A. Refers to the supplies needed to build products B. Refers to the flow of materials, information, payments and services. C. Is similar in function and purpose to the value chain D. Does not apply to a service firm like an accounting firm.

answer

Refers to the flow of materials, information, payments and services

question

A supply chain system does not include information about A. Current customers B. Prospective customers C. Availability of inventory D. Current suppliers

answer

Prospective customers

question

The income statement line item most likely affected by an AIS investment in enterprise systems would be: A. Revenues B. Cost of Goods Sold C. Selling, General and Administrative Expenses D. Unearned Revenue

answer

Selling, General and Administrative Expenses

question

The income statement line item most likely affected by an AIS investment in supply chain that would interface with suppliers would be: A. Revenues B. Cost of Goods Sold C. Selling, General and Administrative Expenses D. Research and Development Expenses

answer

Cost of Goods Sold

question

The IT strategic roles of AIS investments are classified as: A. Automate, Informate, Transform B. Value creation, Value Destruction, Value Neutral C. Digitize, Report, Transform D. Automate, Digitize, Transport

answer

Automate, Informate, Transform

question

According to a recent study, the transform IT strategic role is defined as systems that: A. replacing human labor in automating business processes B. provides information about business activities to all employees C. provide information about business activities to senior management D. fundamentally redefine business processes and relationships

answer

fundamentally redefine business processes and relationships

question

According to a recent study, the informate-up IT strategic role is defined as systems that: A. replacing human labor in automating business processes B. provides information about business activities to all employees C. provide information about business activities to senior management D. fundamentally redefine business processes and relationships

answer

provide information about business activities to senior management

question

The income statement account most likely affected by an AIS investment in customer relationship management (CRM) would be: A. Revenues B. Cost of Goods Sold C. Selling, General and Administrative Expenses D. Unearned Revenue

answer

Revenues

question

Many hospitals and doctor's offices are beginning to digitize the medical records of their patients. This is an example of the ____________ strategic role. A. Automate B. Informate - up C. Transform D. Informate - down

answer

Automate

question

EBay uses information technology to sell goods on the internet. This would be an example of the ___________ strategic role. A. Automate B. Informate - up C. Transform D. Informate - down

answer

Transform

question

The Information Value Chain is defined as: A. The flow of materials, information, payments, and services B. The use of computer technology to provide information about business activities to employees across the firm. C. The overall transformation of data from a business need to the ultimate decision. D. A centralized database that collects data from throughout the firm.

answer

The overall transformation of data from a business need to the ultimate decision.

question

Business Value is defined as: A. The monetary value of a business. B. Items, events and interactions that determine the financial health and well-being of the firm C. The cost to acquire a business by an outsider. D. The overall value of taking data and transforming it in to information needed for decision making.

answer

Items, events and interactions that determine the financial health and well-being of the firm

question

Customer Relationship Management is defined as: A. A system used to manage and nurture a firm's interactions with its current and potential customers B. A system used to track a customer's past purchases C. A system used to connect a firm's suppliers with a firm's customers. D. A system used to advertise current items on sale to customers.

answer

A system used to manage and nurture a firm's interactions with its current and potential customers

question

Support activities in the value chain does not include: A. Firm Infrastructure B. Human Resource Management C. Procurement D. Accounting and Finance

answer

Accounting and Finance

question

The role of accountants in accounting information systems include all except: A. User B. Manager C. Operator D. Evaluator

answer

Operator

question

A simple information system includes all but the following elements except: A. Processing B. Storage C. Input D. Reporting

answer

Reporting

question

Activity-based costing is an example of: A. Information overload B. Mandatory information C. Discretionary information D. Enterprise System

answer

Discretionary information

question

An example of an AIS that primarily addresses internal business processes includes: A. Supply chain software B. Customer relationship management software C. B2B transaction software D. Enterprise systems

answer

Enterprise systems

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