(Test Bank) Accounting Information Systems

Gelinas,Dull,Wheeler, 11

Business

Test Bank

11th Edition

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Test Bank for Accounting Information Systems, The downloadable file consists of 448 pages, and the total size of the file is 4.43 MB. Purchase now only for highly discounted price.

Author(s): Gelinas, Dull, Wheeler

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Study Note Preview

Chapter 1 —Introduction to Accounting Information Systems TRUE/FALSE 1. The three themes of the text are operating systems, e -business, and internal control. ANS: F PTS: 1 2. It is critical for accountants to understand enterprise resource planning (ERP) systems. ANS: T PTS: 1 3. Information systems reliability and elect ronic commerce have been identified by the AICPA as potential assurance services. ANS: T PTS: 1 4. E-business is the application of electronic networks to undertake business processes among the functional areas in an organization. ANS: F PTS: 1 5. The role of the accountant has evolved to include non -financial information and information technology. ANS: T PTS: 1 6. Enterprise systems integrate an organization's business processes and information from all of an organization's functional areas. ANS: T PTS: 1 7. An information system consists of an integrated set of computer -based and manual compo nents established to provide information to users. ANS: T PTS: 1 8. Internal control is a process that provides complete assurance that the organization is meeting its objectives, such as efficiency and effectiveness of operations and reliable reporting . ANS: F PTS: 1 9. The Sarbanes -Oxley Act of 2002 has dramatically changed the daily work of financial accountants and auditors. ANS: T PTS: 1 10. According to the Sarbanes -Oxley Act of 2002, management must identify, document, and evaluate significant internal controls. ANS: T PTS: 1 11. According to the Sarbanes -Oxley Act of 2002 and PCAOB Auditing Standard No. 5, management must audit and repor t on auditors' assertions about the organizations' systems of internal controls. ANS: F PTS: 1 12. According to the Sarbanes -Oxley Act's Section 409, material changes in the organization's financial condition must be disclosed to the public on a rapid a nd current basis. ANS: T PTS: 1 13. The Sarbanes -Oxley Act's Section 404 creates changes in both how companies document and evaluate internal control and how auditors audit and report on internal control. ANS: T PTS: 1 14. Sarbanes -Oxley Section 404 compliance is a major line of business for the biggest accounting firms. ANS: T PTS: 1 15. The Sarbanes Oxley Act of 2002 applies to publicly traded companies and not -for-profit entities. ANS: F PTS: 1 16. Historically the purpose of an accounting information system is to collect, process, and report financial aspects of business events. ANS : T PTS: 1 17. The MIS is a subsystem of the AIS. ANS: F PTS: 1 18. Sales/marketing information system is traditionally part of the AIS. ANS: F PTS: 1 19. Billing/accounts receivable is traditionally part of the AIS. ANS: T PTS: 1 20. Production and personnel are part of the operations process. ANS: T PTS: 1 21. The management process includes marketing and sales. ANS: F PTS: 1 22. Information that is capable of making a difference in a decision -making situation, by reducing uncertainty or increasing knowledge for that particular decision, has the quality of relevance. ANS: T PTS: 1 23. Information about a customer's credit history that is receive d after the decision to grant additional credit lacks completeness. ANS: F PTS: 1 24. The consistency principle is violated when a firm uses straight -line depreciation one year and changes to declining balance depreciation the next year. ANS: T PTS: 1 25. Accuracy is the correspondence or agreement between the information and the actual events or objects that the information represents. ANS: T PTS: 1 26. Information has understandability when it is capable of making a difference in a decision -making situation.. ANS: F PTS: 1 27. The most important information for tactical management involves information about the organization's environment. ANS: F PTS: 1 28. Deciding how much credit to grant to a customer is a structured decision. ANS: T PTS: 1 29. Strategic management requires more detailed information than operations management. ANS: F PTS: 1 30. The three steps in decision making take place in the sequence of (1) intelligence (2) design (3) choice. ANS: T PTS: 1 31. Strategic managers use mo re information from outside the organization than do operations managers. ANS: T PTS: 1 32. Operations management requires information that is more accurate and timely than strategic management. ANS: T PTS: 1 33. What controls will be necessary is a question that an accountant answers in the design of the AIS. ANS: T PTS: 1 34. As a designer of an AIS the accountant will test a new system's controls. ANS: F PTS: 1 35. As a user of an AIS an accountant may be called upon to participate in the AIS design process . ANS: T PTS: 1 MULTIPLE CHOICE 1. The three themes of the text book include all of the following except: a. enterprise systems b. risk assessment c. e-business d. internal control ANS: B PTS: 1 2. Efficiency and effectiveness of operations are goals of: a. enterprise systems b. risk assessment c. e-business d. internal control ANS: D PTS: 1 3. A set of interdependent elements that together accomplish specific objectives is a a. system b. subsystem c. database d. accounting information system ANS: A PTS: 1 4. A system can be further divided into a. input data b. subsystems c. databases d. enterprise systems ANS: B PTS: 1 5. A system that consists of an integrated set of computer -based and manual components established to collect, store, and manage data and to provide output information to users is a(n) a. output b. ERP c. database d. information system ANS: D PTS: 1 6. An information system: a. is composed of only the computer -based information resources of an organization b. may consist of both computer -based and manual components c. is different from a data processing system because it uses computers d. is not generally used for transaction processing ANS: B PTS: 1 7. The AICPA has identified all but which of the following as assurance services? a. consulting b. information systems reliability c. electronic commerce d. All of these are assurance services identified by the AICPA. ANS: A PTS: 1 8. The sequence of components in the functional model of an information system is a. Output, Input, Processing, Users b. Input, Processing, Output, Users c. Processing, Input, Users, Output d. Users, Processing, Input, Output ANS: B PTS: 1 9. Historically, the relationship between an information system and an accounting information system has been: a. the AIS is a part of the IS b. the IS is a part of the AIS c. the IS and the AIS are one in the same d. the IS and AIS are unrelated ANS: A PTS: 1 10. The text takes the following view of the relationship between an IS and an AIS: a. the AIS is part of the IS b. the IS is part of the AIS c. the IS and the AIS are one in the same d. the AIS is the primary system and the IS the subsystem ANS: C PTS: 1 11. A man -made s ystem that generally consists of an integrated set of computer -based components and manual components established to collect, store, and manage data and to provide output information to users. a. information system b. output system c. business event system d. database system ANS: A PTS: 1 12. According to th e ____ , one of the responsibilities of accountants is to assess financial operations and make best -practices recommendations to management. a. AICPA b. Sarbanes -Oxley Act of 2002 c. Occupational Outlook Handbook d. Accounting Information System ANS: C PTS: 1 13. A man -made system consisting of people, equipment, organization, policies and procedures with the objective of accomplishing the work of the organization. a. operations process b. management process c. information process d. planning process ANS: A PTS: 1 14. A man -made system consisting of people, authority, organization, policies and procedures whose objective is to accomplish the work of planning and controlling the operations of the organization. a. operations process b. management process c. information process d. planning process ANS: B PTS: 1 15. The three logical components of a business process include all of the following except: a. management process b. operations process c. information process d. organization process ANS: D PTS: 1 16. Which of the following statements is true? a. The information process facilitates operations by maintaining data such as inventory and customer data. b. The information process provides the means by which management monitors the operations process. c. Management designs the operations and information processes. d. All of the statements are true. ANS: D PTS: 1 17. Which of the following statements is false ? a. Management designs the operations and information processes and establishes these processes with people, equipment, and policies. b. Information process users include operations personnel, management, and people outside the organization. c. Operations re lated and accounting related processes are designed by those external to the organization. d. None of the statements are false . ANS: C PTS: 1 18. ____ is (are) data presented in a form that is useful to decision makers. a. Activities b. Information c. Objectives d. Goals ANS: B PTS: 1 19. ____ are facts and figures in raw form. a. Data b. Information c. Objectives d. Goals ANS: A PTS: 1 20. All of the following are components of relevance except: a. feedback value b. predictive value c. verifiability d. timeliness ANS: C PTS: 1 21. All of the follow ing are components of reliability except: a. validity b. accuracy c. verifiability d. feedback value ANS: D PTS: 1 22. The Sarbanes -Oxley Act of 2002 dramatically changed the daily work of financial accountants and auditors because it a. expanded the scope of the audit beyond financial information b. required that organizations work with their auditors to design systems of internal control c. required that external auditors report on the effectiveness of an organizations system of internal control d. expanded the opportunities for auditors to engage in consulting activities with their audit clients ANS: C PTS: 1 23. Internal control is a process designed to provide absolute assurance regarding achieving objectives in which of the following? a. efficiency and effectiveness of operations b. reliability of reporting c. compliance with applicable laws and regulations d. none of the above ANS: D PTS: 1 24. Which of the following is NOT a business processes element? a. Business operations b. Events processing c. Management decision making d. Technology ANS: D PTS: 1 25. ____ improves the decision maker's capacity to predict, confirm, or correct earlier expectations a. Understandability b. Feedback value c. Neutrality d. Comparability ANS: B PTS: 1 26. The information quality that enables users to identify similarities and differences in two pieces of information is a. Understandability b. Predictive value c. Neutrality d. Comparability ANS: D PTS: 1 27. The correspondence or agreement between the information and the actual events or objects that the information represents is known as a. accuracy b. completeness c. neutrality d. comparability ANS: A PTS: 1 28. The degree to which information includes data about every relevant object or event necessary to make a decision is a. accuracy b. completeness c. neutrality d. comparability ANS: B PTS: 1 29. The abilit y of more than one individual to come to the same measurement is known as a. accuracy b. completeness c. verifiability d. comparability ANS: C PTS: 1 30. If information arrives too late to impact a decision then there is a problem with a. timeliness b. relevance c. completeness d. neutrality ANS: A PTS: 1 31. Which of the following is NOT one of the three steps in decision making as described in the text a. action b. intelligence c. design d. choice ANS: A PTS: 1 32. Regarding management problem structure and information requirements, which of the following represents the vertical information flows from lowest to highest? a. strategic management, tactical management, operations management, operations and business event processing b. operations and business event processing, strategic management, tactical management, operations management c. tactical management, operations management, strategic management, operations and business event processing d. operations and business event processing, operations management, tactical management, strategic management ANS: D PTS: 1 33. Structured deci sion a. are usually tactical management decisions b. require the use of an organization’s AIS system . c. are relatively routine and repetitive d. All of the above ANS: C PTS: 1 34. Which of the following is an unstructured decision? a. how much inventory to reorder b. how fast an assembly line should operate c. when scheduled maintenance should be performed d. which research and development projects should be undertaken ANS: D PTS: 1 35. At which level of the organization are decisions most unstructured? a. operations and business event processing level b. strategic management level c. operations management level d. tactical management level ANS: B PTS: 1 36. ____ requires information to assess the environment and to project future events and conditions. a. Strategic management b. Tactical management c. Operations management d. Operations and business event processing ANS: A PTS: 1 37. The ____ manager may be more concerned with accuracy than with timeliness . a. strategic b. tactical c. operations d. All of the above. ANS: A PTS: 1 38. The central repository for all the data related to the enterprise's business activities and resources. a. information system b. management information system c. enterprise database d. strategic planning ANS: C PTS: 1 39. E-business does not include a. business processes between individuals and organizations b. electronic networks c. ERP systems d. intera ction between back -office and front -office processes ANS: C PTS: 1 40. Enterprise systems a. integrate back -office and front -office processes b. can include ERP systems c. have become fairly easy to implement d. facilitate business processes between organizations ANS: B PTS: 1 41. Which of the following statements is false ? a. Strategic planning is relatively unstructured. b. Strategic planning uses much informa tion from outside the firm. c. Tactical management focuses on relevant operations units and uses some external information. d. Tactical management uses the most detailed and accurate information. ANS: D PTS: 1 42. Generally, which of the following is NOT one of the three roles an accountant typically fills in relation to the AIS? a. designer b. programmer c. user d. auditor ANS: B PTS: 1 43. Which of the following questions might the accountant answer in the design of the AIS? a. what will be recorded b. what controls are necessary c. what reports will be produced d. all of the above ANS: D PTS: 1 44. Which of the following is an element of the operations process? a. production b. planning c. controlling d. decision making ANS: A PTS: 1 45. Which of the following is one of the three most prominent management activities? a. production b. finance c. marketing d. planning ANS: D PTS: 1 46. Accounting is an activity of the a. management process b. operations process c. information process d. organization process ANS: B PTS: 1 47. Decision -making is an activity of the a. management process b. operations process c. information process d. organization process ANS: A PTS: 1 COMPLETION 1. ______________________________, ______________________________, and ______________________________ are the three themes of the textbook. ANS: Enterprise systems, e -business, internal control Enterprise systems, internal control, e -business Internal control, enterprise systems, e -business Internal control, e -business, enterprise systems E-business, enterprise systems, internal control E-business, internal control, enterprise systems PTS: 1 2. The ______________________________ Act of 2002 changed the daily work of financial accountants, auditors, and others. ANS: Sarbanes -Oxley PTS: 1 3. A(n) ______________________________ is a set of indep endent elements that together accomplish specific objectives. ANS: system PTS: 1 4. A system’s __________ ____________ depends on its type – natural, biological, or man -made – and on the particular system . ANS: central objectives PTS: 1 5. Software packages that can be used for the core systems necessary to support enterprise systems are called ______________________________. ANS: enterprise resource planning (ERP) systems enterprise resource planning systems ERP systems PTS: 1 6. ______________________________ is the application of electronic networks (including the Internet) to undertake business processes between individuals and organizations. ANS: E-business PTS: 1 7. ____________ _____________ is a process ⎯effected by an en tity's board of directors, management, and other personnel ⎯designed to provide reasonable assurance regarding achieving objectives in the following categories: efficiency and effectiveness of operations, reliability of reporting, and compliance with applic able laws and regulations. ANS: Internal control PTS: 1 8. The ____________ _________________ units of large and small public accounting firms have accounted for a sign ificant percentage of the firms’ business and were growing faster than the accounting, auditing, and tax portions of their businesses. ANS: business consulting PTS: 1 9. Hiring employees, purchasing inventory and collecting cash from customers are all components of _________ ______________. ANS: business operations PTS: 1 10. The three logical components of a business process are the _____________________ process, the ____________ process and the ____________process . ANS: management, operations, information management, information, operation s information, management, operations information, operations, management operations, information, management operations, management, information, PTS: 1 11. Historically, the accountant has performed a(n) ______________________________ function to determine the reliability of financial information presented in printed financial statements. ANS: attest PTS: 1 12. A(n) ______________________________ system g enerally consists of both computerized and manual components established to collect, store, and manage data and to provide output information to users. ANS: information management information PTS: 1 13. The _____ _________________________ is a man -made system consisting of the people, equipment, organization, policies, and procedures whose objective is to accomplish the work of the organization. ANS: operations process PTS: 1 14. To present the results of their endeavors effectively, accountants must possess strong ______________________________. ANS: oral and written communication skills PTS: 1 15. ______________________________ decisions are those for which all three decision phases (intelligence, design, and choice) are relatively routine or repetitive. ANS: Structured PTS: 1 16. A(n) ______________________________ is designed to collect, proce ss, and report information related to financial transactions. ANS: accounting information system (AIS) accounting information system AIS PTS: 1 17. Input, processing, ______________________________, and users are included in a functional model of an i nformation system. ANS: output PTS: 1 18. The highest level of management activity and the one with the broadest scope is ______________________________ management. ANS: strategic PTS: 1 19. In the management hierarchy, the level that lies between strategic management and operations management is called ______________________________ management. ANS: tactical PTS: 1 20. Facts or figures in raw form are referred to as ______________________ ________. ANS: data PTS: 1 21. ______________________________ is an information quality that can be expanded into validity, accuracy, and completeness. . ANS: Integrity PTS: 1 22. The __________ of information must be evaluated in relation to the purpose to be served (decision making) . ANS: effectiveness PTS: 1 23. Information that is capable of making a difference in a decision of a user is said to possess the quality of ______________________________. ANS: relevance PTS: 1 24. Information that is availab le before it loses its capacity to influence a user's decision possesses the quality of ______________________________. ANS: timeliness PTS: 1 25. Information that improves a decision makers ability to predict, confirm, or correct earlier expectations has the quality known as ______________ ________________. ANS: feedback value predictive value PTS: 1 26. The quality of information when there is a high degree of consensus about the information among independent measurers using the same measurement methods is referred to as ______________________________. ANS: verifiability PTS: 1 27. Information that is objective is said to possess ______________________________. ANS: neutrality freedom from bias PTS: 1 28. The quality of information that enables users to identify similarities and differences in two pieces of information is referred to as ______________________________. ANS: comparability PTS: 1 29. A ________ is a tool designed to help you analyze a situ ation and relate processes to desired results. ANS: matrix PTS: 1 30. Section ______________________________ of the Sarbanes -Oxley Act of 2002 requires auditors to report on about the effectiveness of the organizations' systems of internal control. ANS: 404 PTS: 1 31. Section ______________________________ of the Sarbane s-Oxley Act of 2002 requires management to identify, document and evaluate significant internal controls. ANS: 404 PTS: 1 32. Section ______________________________ of the Sarbanes -Oxley Act of 2002 requires disclosure to the public on a rapid and curr ent basis of material changes in an organization's financial condition. ANS: 409 PTS: 1