(Test Bank) Accounting Information Systems The Crossroads Of Accounting And IT

Donna,Kay,Ali,Ovlia, 2

Business

Test Bank

2nd Edition

• $15.00 $50.00

---

Description

Test Bank for Accounting Information Systems The Crossroads Of Accounting And IT, The downloadable file consists of 337 pages, and the total size of the file is 2.35 MB. Purchase now only for highly discounted price.

Author(s): Donna, Kay, Ali, Ovlia

---

---

Study Note Preview

Test Bank for Accounting Information Systems: The Crossroads of Accounting & IT Second Edition Donna Kay Ali Ovlia Copyright ©2014 Pearson Education, Inc. 1 Copyright © 2014 Pearson Education, Inc. Accounting Information Systems, 2e (Kay/Ovlia) Chapter 1 Accounting Systems Insights Objective 1 1) An IT auditor must understand the terms and definitions used by accounting and IT professionals. Answer: TRUE Diff: 1 Objective: Q1.1 How do I navigat e the crossroads of accounting and IT? 2) Which of the following are NOT part of the basic functions of an enterprise system? A) Hiring B) Output C) Input D) Processing Answer: A Diff: 1 Objective: Q1.1 How do I navigate the crossroads of accounting and IT? Objective 2 1) A Supply Chain Management (SCM) system is a subsystem of an Accounting System. Answer: FALSE Diff: 1 Objective: Q1.2 How is the accounting system related to the enterprise system? 2) Activities performed by various departments with in a company are rarely interconnected. Answer: FALSE Diff: 1 Objective: Q1.2 How is the accounting system related to the enterprise system? 3) An integrated enterprise system allows different departments to use the same information. Answer: TRUE Diff: 1 Objective: Q1.2 How is the accounting system related to the enterprise system? 4) Business processes are related activities performed by an enterprise to create value by transforming input into output. Answer: TRUE Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 2 Copyright © 2014 Pearson Education, Inc. Match the following accounting cycles to the appropriate subsystems. A) Operations/Production System B) Supply Chain Management C) Customer Relationship Management 5) Purchasing Cycle Diff: 2 Objecti ve: Q1.2 How is the accounting system related to the enterprise system? 6) Payroll Cycle Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 7) Sales Cycle Diff: 2 Objective: Q1.2 How is the accounting system relate d to the enterprise system? Answers: 5) B 6) A 7) C Match the following enterprise system function with the correct definition. A) Summarizing information to generate documents and reports B) Sorting and storing information C) Capturing information to s tore in the system 8) Input Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 9) Output Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 10) Processing Diff: 2 Objective: Q1. 2 How is the accounting system related to the enterprise system? Answers: 8) C 9) A 10) B 3 Copyright © 2014 Pearson Education, Inc. 11) When data is "hard keyed" into the program, which of the following is true? A) Changing the data requires recreating (recording) the entire program. B) Changing the data requires purchasing additional computer storage and may take days or weeks. C) Changing the data is cost efficient and may be accomplished in a matter of minutes. D) Changing the data is costly and may take days or weeks. Answer: D Diff: 2 Objec tive: Q1.2 How is the accounting system related to the enterprise system? 12) What is an alternative to "hard keyed" data? A) If user requirements are correctly defined, the data will not change and may be "hard keyed." B) Using variables in the program, such as cell addresses in a spreadsheet. C) Alternatives to "hard keyed" data is not possible. All data must be "hard keyed." D) Creating the program in a way that does not require data. Answer: B Diff: 2 Objective: Q1.2 How is the accounting system rel ated to the enterprise system? 13) The three basic functions of an enterprise system are A) Input, processing, and output B) Processing, output, and reports C) Business intelligence, processing, and output D) Input, data, and reports Answer: A Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 14) Which symbol is used by IT professionals to represent the enterprise network? A) Cloud B) Star C) Circle D) Square Answer: A Diff: 1 Objective: Q1.2 How is the accounting system related to the enterprise system? 15) What is the purpose of Enterprise Resource Planning (ERP) software? A) Help identify the end of a product's life cycle B) Identify new trends in consumer purchasing C) Analyze an organization's sales projection s D) Help managers control organizational resources Answer: D Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 4 Copyright © 2014 Pearson Education, Inc. 16) An accounting system spans which of the following Value Chain components? A) Support B) Purchase C) Customers D) All the above except C Answer: D Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 17) The Value Chain begins with which activity? A) Selling items to customers B) Creating the products C) Purchasing ite ms from vendors D) Providing support to customers Answer: C Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 18) Which transactions are related to the purchasing cycle? A) Buying items from vendors B) Paying employe es C) Selling items to customers D) None of the above Answer: A Diff: 1 Objective: Q1.2 How is the accounting system related to the enterprise system? 19) Which transactions are related to the sales cycle? A) Paying employees B) Selling items to custome rs C) Buying items from vendors D) None of the above Answer: B Diff: 1 Objective: Q1.2 How is the accounting system related to the enterprise system? 20) What purpose of the processing function of an enterprise system? A) Summarize information B) Captur e information C) Generate reports D) Sort and store information Answer: D Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 5 Copyright © 2014 Pearson Education, Inc. 21) To obtain a deep understanding of the underlying business of an enterprise system server s, you need to ask key questions. What are those questions? Answer: - How does the enterprise create value? - What are its business operations? - What are the enterprise's business processes for conducting operations? - Can the business processes be stre amlined or improved? Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 22) How does an enterprise system support people in the same company to perform different but related business activities? Please provide an examp le. Answer: People within a company often need the same information to perform different tasks. that are often interconnected. An enterprise system allows the information to be shared throughout the company. This ensures the data used to perform the tasks are the same. The example provided in the text is the creation of a paycheck. Human Resources enters personal data and salary information. The accounting department uses that information to generate a paycheck. (Students may provide a different example.) Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 23) You are an intern at a small mom -and-pop type corner grocery store. The owner's accountant is trying to talk the owners into purchasing an integrated enterprise s ystem for small businesses. The owner thinks the accountant is just trying find a way to charge more money. How would you convince the owner each piece of the integrated enterprise system would help the business? Answer: The answer should include the foll owing information. - Supply Chain Management: items are automatically removed from inventory and calculations made for reordering from vendors, identify fast moving items (keep reordering from vendor ) or slow moving items (consider removing from inventory ) - Customer Relationship Management: the purchase is analyze for trends, products purchased at a particular time of day and/or day of the week, analyze for more targeted marketing (coupons) - Operations/Production System : track items from the meat counte r/deli/bakery to know when to order inputs (flour, sugar, various meat products, etc.) - Human Resources Management: track appropriate personnel positions (more/less bakers, more/less butchers, more/less sales clerks, more/less stockers, etc.) Diff: 3 Obje ctive: Q1.2 How is the accounting system related to the enterprise system? 6 Copyright © 2014 Pearson Education, Inc. 24) You are an accountant and one of your clients is a small business that sells only over the Internet. How would you convince the owner to purchase an integrated enterprise syst em? Answer: The answer should include the following information. - SCM: items are automatically removed from inventory and calculations made for reordering from vendors, identify fast moving items (keep reordering from vendor ) or slow moving items (consi der removing from inventory) - CRM: the purchase is analyze for trends, products purchased at a particular time of day and/or day of the week, analyze for more targeted marketing (coupons) - Operations/Production System: track shipping supplies - Human Re sources Planning: track appropriate personnel positions (more/less people for gathering items in the purchase, more/less people for packaging the purchase, more/less people in the shipping department, etc.) Diff: 3 Objective: Q1.2 How is the accounting sy stem related to the enterprise system? 25) What types of data does a Supply Chain Management system and an accounting system need to share? How does each system use that data? Answer: A Supply Chain Management system and an accounting system would share vendor information (company name, primary contact, address, and phone number), items supplied by the vendor, purchase orders, delivery dates, delivery receipt., and current raw material inventory levels. (The student may provide additional types of data.) The Supply Chain Management system uses this information to order more supplies and verify delivery content. Raw material inventory levels are used to calculate when to order more raw materials. The accounting system uses this data to know which vendor to pay, how much to pay the vendor, and when to pay the vendor. Raw material inventory is used in various financial reports. Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 26) What types of data does an operations/pr oduction system and an accounting system need to share? How does each system use that data? Answer: An operations/production system and an accounting system would share production employee information, work in process, and the current level of finished pr oduct. (The student may provide additional types of data.) The operations/production system uses the employee information to estimate production capacity. The work in process and current level of finished product issued to calculate needed production rate . The accounting system uses the employee data to run payroll. The work in process and current level of finished product is used in various financial reports. Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system? 7 Copyright © 2014 Pearson Education, Inc. 27) List the transaction cycles. What type of transactions are in each cycle? Answer: - Purchasing cycle or Vendor cycle —This consists of transactions related to purchasing items from vendors, including suppliers and consultants. - Payroll cycle or Expenditure cycle—This consists of transactions related to employee and payroll. - Sales cycle or Revenue cycle —This consists of transactions between the enterprise and customers. Diff: 2 Objective: Q1.2 How is the accounting system related to the enterprise system ? Objective 3 1) The Vendors Module of a baseline accounting system relates to the sales cycle. Answer: FALSE Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 2) The Customer Module of a baseline accou nting system includes creating purchase orders. Answer: FALSE Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 3) The Banking Module of a baseline accounting system includes bill paying transactions. Answer: TRUE Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 4) Accounting software often includes a navigation screen that represents the major modules within the accounting system. Answer: TRUE Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 5) A database may have two or more tables with the exact same name. Answer: FALSE Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 6) Financial accounting focuses on providing accounting information to internal users, primarily management. Answer: FALSE Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 8 Copyright © 2014 Pearson Education, Inc. 7) An eve nt that does not involve an exchange, for example accrued interest expense, does not need to be recorded in the accounting system. Answer: FALSE Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 8) A prima ry key may be used to associate customer information (name, address, phone number, etc.) with a sales order. Answer: TRUE Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 9) A primary key is a unique ide ntifer for a database table. Answer: FALSE Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 10) Understanding accounting systems involves seeing the overall system. There is no need to focus on the detai ls. Answer: FALSE Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 11) Business Intelligence tools use queries to extract data directly from the relational database, bypassing the OLAP cube and any accom panying delay. Answer: FALSE Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 12) Data cubes allow you to view data in two dimensions. Answer: FALSE Diff: 2 Objective: Q1.3 What are the secrets of my s uccess at the crossroads of accounting and IT? 13) Structured Query Language is used to query a relational database. Answer: TRUE Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 9 Copyright © 2014 Pearson Education, Inc. Match the following cyc les with their corresponding accounting system module. A) Customers Module B) Vendors Module C) Banking Module D) Financial Module E) Employees Module 14) Payroll Cycle Diff: 2 Objective: Q1.3 What are the secrets of my success at the c rossroads of acc ounting and IT? 15) Sales Cycle Diff: 2 Objective: Q1.3 What are the secrets of my success at the c rossroads of accounting and IT? 16) Financial Cycle Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 17) Purchasing Cycle Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? Answers: 14) E 15) A 16) D 17) B 18) When looking at an accounting system using the aerial view, you see A) Detailed information reco rded in the accounting system B) Information available on the tax reports for the Internal Revenue Services and other tax agencies C) Accounting information available to internal users, primarily management D) An enterprise -wide view of an organization sho wing the entire accounting system Answer: D Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 19) When looking at an accounting system using the zoom view, you see A) An enterprise -wide view of an organiz ation showing the entire accounting system B) Information available on the tax reports for the Internal Revenue Service and other tax agencies C) Detailed information recorded in the accounting system D) Accounting information available to internal users, primarily management Answer: C Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 10 Copyright © 2014 Pearson Education, Inc. 20) The Vendors module in the Baseline Accounting System corresponds to which transaction cycle? A) Sales cycle B) Financia l cycle C) Payroll cycle D) Purchasing cycle Answer: D Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 21) Which transactions are usually performed in the Customers module of the Baseline Accounting Sys tem? A) Receive inventory B) Create invoice C) Create purchase order D) Pay bills Answer: B Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 22) The sales cycle corresponds to which module in the Baselin e Accounting System? A) Banking B) Vendors C) Customers D) Employees Answer: C Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 23) Which event is part of the Purchasing Cycle? A) Pay bill B) Create invo ice C) Make deposit D) Enter bill Answer: D Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 24) Which event is part of the Sales Cycle? A) Enter time B) Make deposit C) Create purchase order D) Receive item Answer: B Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 11 Copyright © 2014 Pearson Education, Inc. 25) Which event is usually performed in the Financial modules of the Baseline Accounting System? A) Make adjusting entries B) Pay bills C) Enter time D) Create income statement Answer: A Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 26) Which accounting software is typically used in a mid -sized enterprise? A) Oracle's Peoplesoft Enterpri se B) SAP Business One C) Peachtree D) Quickbooks Enterprise Answer: D Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 27) What modules comprise a baseline accounting system? A) Vendors, Employees, Sale s, Banking, Financial, and Reports B) Inventory, Employees, Sales, Banking, Financial, and Reports C) Inventory, Employees, Sales, Banking, Accounting, and Reports D) Vendors, Employees, Customers, Banking, Financial, and Reports Answer: D Diff: 2 Objecti ve: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 28) To record a payment for inventory delivered, the information would be entered in a screen that looks similar to which paper form? A) Sales receipt B) Check C) Invoice D) Purchase order Answer: B Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 12 Copyright © 2014 Pearson Education, Inc. 29) To record an inventory order, the information would be entered in a screen that looks similar to which paper form? A) Sa les receipt B) Check C) Invoice D) Purchase order Answer: D Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 30) What is the purpose of an onscreen entry form? A) Onscreen entry forms allow you to perform data Analysis that is cumbersome in a relational database. B) Onscreen entry forms provide predictive modeling to gain insights from data to improve business decisions. C) Onscreen entry forms provide a familiar interface for entering information into a d atabase. D) Onscreen entry forms help ensure information is entered only once in the database. Answer: C Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 31) Which accounting software is designed for a l arge-scale company? A) Oracle's PeopleSoft Enterprise B) SAP Business All -In-One C) Oracle's JD Edwards EnterpriseOne D) SAP Business One Answer: A Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 32) Wh en designing a database, which field would NOT belong in a table storing customer information? A) First Name B) Order Number C) Zip Code D) Street Address Answer: B Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accountin g and IT? 13 Copyright © 2014 Pearson Education, Inc. 33) When designing a database, which field would NOT belong in a table storing inventory information? A) Cost B) Part Number C) Purchase Order D) Sale Price Answer: C Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroad s of accounting and IT? 34) A database form is a A) Database screen for data input B) Database queries C) Database screen for data output D) Database searches Answer: A Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of acco unting and IT? 35) In an accounting system database, which field belongs in a table containing customer information? A) Street Address B) Cost C) Item Number D) Invoice Number Answer: A Diff: 2 Objective: Q1.3 What are the secrets of my success at the cr ossroads of accounting and IT? 36) A spreadsheet can be viewed as A) A database form B) A relational database C) A flat database D) A collection of related tables Answer: C Diff: 1 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 37) In an accounting system database, which field belongs in a table containing inventory information? A) Vendor ID B) Purchase Order C) City D) Invoice Number Answer: A Diff: 2 Objective: Q1.3 What are the secrets of my success at th e crossroads of accounting and IT? 14 Copyright © 2014 Pearson Education, Inc. 38) The following field names are part of a table for a company's inventory. Which field name could be the primary key for this table? A) Sales Prices B) Cost C) Item ID D) Vendor ID Answer: C Diff: 2 Objective: Q1.3 W hat are the secrets of my success at the crossroads of accounting and IT? 39) In a relational database, how are tables connected? A) By a query statement B) By network addresses C) By the tables names D) By fields that are common in two or more tables Answer: D Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 40) The following fields are common to tables storing customer, vendor, and employee information EXCEPT A) City B) Area Code C) Cost D) State Answer : C Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 41) Which field below would NOT be stored in an order table? A) Customer ID B) Vendor ID C) Order ID D) ItemID Answer: B Diff: 2 Objective: Q1.3 Wha t are the secrets of my success at the crossroads of accounting and IT? 42) What is the purpose of a database query? A) To search the database to answer a specific question B) To connect related tables C) To uniquely identify a record in a database table D) To provide a format for viewing data Answer: A Diff: 2 Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT?