(Test Bank) Core Concepts of Accounting Information Systems Canadian Edition

Mark,Norman,Paquette, 1

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Test Bank for Core Concepts of Accounting Information Systems Canadian Edition, The downloadable file consists of 181 pages, and the total size of the file is 2.67 MB. Purchase now only for highly discounted price.

Author(s): Mark, Norman, Paquette

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Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.1 Chapter 1 Accounting Information Systems and the Accountant True -False Questions 1. The acronym AIS stands for “Accounting Information Standards.” 2. Accounting information systems must be computerized to be effective. 3. It is best to view an AIS as an accounting system that must be computerized. 4. AISs often create information that is useful to non -accountants. 5. In order to be useful, raw accounting data must be processed by a computer. 6. The path that data follow in an AIS, for example from manual source document to completed output report, is called an audit trail . 7. A company's audit trail is normally easier to follow under a manual data processing system compared to a computerized information processing system. 8. The starting point for an audit trail of a payroll system might be an employee time card. 9. The starting point for an audit trail of a product ion department might be the purchase of raw materials. 10. The acronym ERP stands for “electronic reporting plan.” 11. The term information overload refers to providing too much data to management, often resulting in managers ignoring it. 12. An advantage of comp uterized AISs is that they do not need to be programmed to catch simple input errors such as entering “4.0” instead of “40.0” for hours worked in a payroll application. 13. Computers tend to make audit trails easier to follow because everything is computeriz ed. 14. The acronym ERP stands for “enterprise reporting system.” 15. The authors consider accountants to be “knowledge workers.” 16. Predictive analytics use large data warehouses to help organizations improve performance. 17. As used in this chapter, the acronym SAR stands for “suspicious accounting reports.” 18. Sections of the Bill C -26 mandate suspicious activity reporting. 19. One of the motivations for SAR is to identify money laund ering activities. Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.2 20. FINTRAC stands for Financial Transactions and Report Analysis Centre of Canada. 21. FINTRAC’s mandate requires detailed reporting on certain financial transactions of banks, insurance companies, mutual funds, broker dealers, commodity trad ers, money service business, casinos , and card clubs. 22. Accounting systems are useful for performing accounting tasks, but cannot be used for such security purposes as countering terrorism. 23. The Sarbanes -Oxley Act includes a provision that requires documenting and evaluating IT controls . 24. The Sarbanes -Oxley Act prohibits companies from using the same auditing firms for performing both auditing and management consulting services. 25. Despite the CICA requirement to maintain auditor independence during consulting engagements , there are still ma ny areas in which CA firms provide consulting services to their clients. 26. A major output of financial accounting is the preparation of financial statements such as an income statement. 27. The series of steps leading from data recorded in transaction records to the information reported on financial statements is called the accounting cycle. 28. AISs are only concerned with financial information. 29. One major difference between financial accounting and managerial accounting is that financial accountants prepare financial statements for external investors while managerial accountants prepare financial statements for internal managers. 30. In a responsibi lity accounting system, every person within a company takes responsibility for the performance of every business unit. 31. One major difference between financial accounting and managerial accounting is that financial accountants use dashboards while manageria l accountants do not. 32. An example of a financial report that would be prepared by a managerial accountant (instead of a financial accountant) is a budget report. 33. XBRL is a business reporting language that is used to define interactive financial data. 34. “Cost accounting” tasks are usually performed by financial accountants. 35. An ABC inventory system refers to an “activity -based costing” system. 36. As used in chapter 1, the term “dashboard” refers to a quick and easy plan to install a computerized accounting system in an organization. 37. As used in Chapter 1, a dashboard is an up -to-the-minute graphic depiction of one or Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.3 more business activities. 38. The purpose of the assurance services of an accounting firm is to give a company’s managers moral support when they are audited by the federal or state government. 39. The purpose of CICA Webt rust Services is to provide assurance that a company engaged in elec tronic commerce can provide the goods or services it promises. 40. An example of a value -added reseller (VAR) is a computer dealer that adds software to the hardware it sells. 41. Some possible career opportunities for AIS majors or minors include consulting positions, computerized auditing, or system computer auditing positions . 42. Accountants are usually classified as “line workers” within business organizations. 43. Today's AIS is an enterprise -wide information system that focuses on interdepartmental business processes. 44. Managerial accounting principally provides decision -making information to a company's internal managers. 45. As a result of computerized information processing systems in many organizations today, the need for accountants in these organizations has significantly declined. 46. Activity -based costin g systems focus on allocating overhead on the basis of direct labour hours used. 47. Because accountants are not normally computer programmers working within the information processing subsystem, it is unnecessary for them to understand the capabilities and limitations of computers. 48. Within the traditional AIS, a sales order would not be considered an accounting transaction. 49. Students majoring in AIS are unlikely to assume jo bs in traditional accounting positions because they know too much. 50. There are limited career opportunities available for students who study both accounting and information systems. 51. One possible career for AIS majors is in the traditional area of financial or managerial accounting. 52. The CISA is an acronym for a profes sional accounting certification. Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.4 Multiple -Choice Questions 53. The “S” in the acronym “AIS” stands for: a) Standard b) System c) Symbol d) none of these 54. Which of the following is true? a) An AIS must be computerized to be useful b) An AIS always produces useful information c) An AIS always produces financial information d) none of these 55. The letter “P” in the acronym “ERP” stands for: a) Production b) Planning c) Project d) none of these 56. Which of the following is true about the terms “data” and “information” within the context of Chapter 1? a) These terms are exactly the same b) These terms are exac t opposites c) Some “data” can also be “information” d) none of these 57. If a manager suffers “information overload”: a) He or she must press the reset button on his or her computer b) It means that this person needs a larger hard drive c) The “information” is really just data d) He or she must forget some facts in order to remember others 58. Which of the following captures the same idea as the term “GIGO” (garbage in, garbage out)? a) Computers cannot turn straw into gold b) Too much information is the same as garbage c) Great investments lead to great returns d) Too many cooks spoil the broth 59. Which of the following best describes a data warehouse as discussed in Chapter 1? a) A repository of historical information from one accounting application b) A repository of hi storical information from a set of accounting applications c) A repository of information from many business applications —some not accounting d) A repository of information from many businesses in the same industry Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.5 60. Most AISs perform all of these functio ns except: a) Collect raw accounting data b) Store accounting data for future uses c) Process data into useful information d) AISs perform all of these functions 61. As used in the chapter, “knowledge workers”: a) Are blue collar workers in non-managerial positions b) Are the same as delivery clerks c) Include most accountants d) Does not include most accountants 62. All of the following are possible uses of AIS or accounting personnel that were discussed in the chapter except: a) Countering terrorism b) Foiling future accounting scandals c) Providing assurance services d) Performing monetary exchanges 63. Suspicious activity reporting: a) Only applies to banking transactions b) Is mandated by state, but not federal, regulations c) Is mostly concerned with embezzlement issues d) Is a requirement under the Sarbanes -Oxley Law of 2002 and CICA Rule 204 e) none of these 64. Which of these would be considered suspicious activities under current SAR rules? a) Money laundering b) Bribing officials c) Transferring money to suspected terrorists d) all of these 65. Which of these businesses is not required to report suspicious activities under current federal laws? a) Banks b) Money service organizations c) Commodity Traders d) Mutual fund dealers e) Race tracks 66. Which of these statements best describ es the relationship between “AISs” and “countering terrorism?” a) These are completely independent i tems; there is no relationship b) AISs can help counter t errorism using data warehouses c) AISs can help by denying financial aid to terrorist groups d) AISs can help by identifying international embezzlers Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.6 67. Bernard Madoff is most closely associated with which of the following terms? a) The father of activity -based costing systems b) SAR c) Ponzi scheme d) CICA Rule 204 e) Key sponso r of the FINTRAC 68. Many accountants feel that the most important part of the Sarbanes -Oxley Act is: a) Its anti -terrorist provisions b) Its provisions requiring the reporting of suspicious activities c) Section 404 on internal controls d) Section 505 on money laundering 69. In 2006, Bill 26 expanded FINTRAC’s mandate so that : a) It requires banks to monitor their accounts in foreign institutions for fraud b) It prohibits companies from lending money to corporate executives c) It applies to all publicly -traded companies d) all of these are correct 70. A good performance measurement system should evaluate: a) Profitability only b) Customer satisfaction only c) Those aspects of a unit’s performance that are subject to its control d) Those aspects of a unit’s performance whether controllable or not 71. The managerial accounting component of the accounting subsystem contains all but which one of the following functions: a) Cost accounting b) Financial accounting c) Budgeting d) Systems study 72. Managerial accounting principally provides information to: a) Stockholders b) Government regulators (e.g., Ontario Securities Commission, CRA ) c) Internal company management d) Potential creditors 73. The process by which a financial transaction is recorded so that its flow through the system can be followed is called: a) Financial shadowing b) Managerial trace technique c) Concatenation d) An audit trail 74. Which of the following accounting functions has been automated by most companies' information processing subsystems? a) Posting to ledgers b) Recording journal entries c) Preparing trial balances d) all of the above Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.7 75. The accounting subsystem must continually interact with the: a) Personnel subsystem b) Informati on processing subsystem c) Production subsystem d) b and c only e) a, b, and c 76. What has been the effect on accountants in those organizations which have computerized their data processing functions? a) The need for accountants has disappeared b) The accountants have become "pure" bookkeepers c) The accountants have become involved in more decision -making activities d) The accountants' decision -making activities have drastically declined 77. What is the first step to be performed by most organizations in their accounting cycles? a) Recording business transactions in a journal b) Preparing a tr ial balance c) Recording closing entries in a journal d) Preparing transaction source documents e) none of the above 78. Which of these is a business reporting language often used in recording or transmitting accounting data? a) XBRL b) XFile c) ABC d) Accounting Live 79. Which of the following is not true regarding consulting services that could be provided by professional service firms? a) The provincial securities administrators are in favor of professional service firms expanding their businesses to include consulting services . b) As a result of the corporate bankruptcies and accounting scandals in 2002, professional service firms can no longer perform consulting services if their auditing independence might be impacted . c) Professional servic e firms generally offer a variety of assurance services, including providing assurance over AISs . d) In the early 2000s, many large professional service firms sold off the majority of their consulting practices . 80 The principal cause for more timely performance reports in the typical modern organization is due to: a) Better educated management b) Adoption of progressive management philosophies which stress participative management (e.g., MBO) c) Information processing sys tems d) Need for less information Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.8 81. The P in the acronym KPI stands for: a) Processing b) Performance c) Planning d) Personnel e) none of these 82. For performance reports to achieve their control objectives, they must: a) Include relevant information so that necessary action may be taken to accomplish organizational goals b) Be timely so that minimal time elapses between an activity's occurrence and the feedback reflecting the activity's efficient or inefficient performance c) Provide subsystem managers with suggestions as to how they can operate their subsystems more efficiently d) all of the above e) a and b only 83. Which of the following is intended to solve the problem that financial data used in one application is not easily transferable to other applications? a) XMP b) ERP c) XBRL d) XMLP 84. "Excessive data reporting" can result in: a) Massive quantities of data printed out by a company's computer b) The generation of unnecessary reports c) Subsystem managers' belief that it is a status symbol to receive large numbers of internally generated reports d) Inefficient decision making by subsystem manager s due to a lack of relevant information e) all of the above 85. An example of an assurance service for a company engaged in electronic commerce is: a) XBRL b) Canada Trust c) CA Trust d) CICA Webt rust Services 86. Which of the following is not a component of the balanced scorecard? a) Customer knowledge b) Internal business processes c) Transaction processing d) Financial performance Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.9 87. Which of the following best describes assurance services? a) Auditors are desperate to offer assurance services so that they will still have business in the future b) Assurance and auditing are closely related c) Assurance is a guarantee that there is no fraud in a company d) Assurance services usually require expertise in information technology 88. Information systems auditors are: a) Auditors who are concerned with analyzing risks associated with computerized information systems b) Individuals who often work closely with financial auditors c) Auditors who have a lot of technical expertise related to information technology d) all of the above 89. Which of these is a certification that accountants can earn that focuses on forensic accounting ? a) CFA b) CA c) CISA d) CFE 90. The designation for a licensed information systems audit professional is: a) CPA b) CA c) CIA d) CISA 91. The certified information systems auditor certification is sponsored by: a) ISACA b) AICPA c) ITA d) none of these 92. Which of the following best describes “predictive analytics”? a) It is a method auditors use to predict when managers might have a weak internal control system b) It is a technique that uses data stored in data warehouses to create systems that allow managers to use th eir data to improve performance c) It is a method used to prevent managers fr om overriding internal controls d) none of the above 93. Which of the following describes “cloud computing”? a) It is a is a way of using business applications over the Internet b) It is an internal business process over the organizations intranet c) It is an internal business process over the organizations extranet d) none of these Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.10 94. An advantage of cloud computing is that: a) No one understands it, including hackers and would -be fraudsters b) All data inputs, processing, and outputs are hidden c) Users pay only for the services they require d) Smaller businesses or government agencies cannot use it 95. Which of these is least likely to be an example of a cloud computing service? a) The development of a web site for a retail store b) The remote processing of payroll records for a manufacturer c) The use of computer time on a remote supercomputer by a research firm d) Interviewing candidates for an execu tive accountant e) all of these are reasonable examples of cloud computing services 96. Which of these is a drawback of cloud computing? a) Inability to handle periods of peak processing loads b) Users must still invest heavily in computer resources of their own c) Requires users to pay for services, whether they use them or not d) May requires users to trust service provider with sensitive data e) none of these are drawbacks of cloud computing 97. Which of these terms is most closely associated with cloud computing? a) Data processing b) Outsourcing c) Data communications d) Source programming language e) Compiling Chapter 1 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.11 Matching Questions For the following terms find the correct definition below and place the letter of that response in the blank space provided before the term. Each definition is used only once – there are two terms that are not used. 98. _______ FINTRAC 99. _______ SAR 100. ____ ___ CISA 101. _______ ERP 102. _____ __ XBR L 103. _______ ISACA 104. _______ IT 105. _______ REA 106. ___ ____ KPI 107. ___ ____ SOX Definitions: A. An international professional association that deals with IT Governance B. US legislation passed in response to recent accounting scandals , also mirrored in Canada C. An enterprise -wide information system D. Federally -mandated reporting of suspicious accounting activities E. An important database design approach F. Key productivity indicator G. A standardized business reporting language similar to HTML H. An auditing certification I. An acronym often used to describe the computer department of an organization J. A type of knowledge worker K. Authority for reporting under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act L. An important performance indicator Short Answer Questions 108. Name some business activities that do not require traditional journal entries. 109. Give three reasons why XBRL formatted documents are useful. Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.1 Chapter 2 Information Technology and AISs True -False Questions 1. Data transcription in AISs is labo ur intensive and is prone to introduce errors into accounting data. 2. A printer is an example of an input device. 3. A computer mouse is an example of an input device. 4. Equipment that surrounds a computer and assists it with input and output tasks is called “peripheral equipment.” 5. An example of a source docu ment is an employee payroll cheque . 6. An example of a source document is an employee time card. 7. “Data transcription” is the same as “data communications.” 8. Plastic cards with magnetic strips are an example of bar code input. 9. MICR is an acronym for “ multi -international character recognition .” 10. Equipment that gathers accounting data at the point at which a sale is made are sometimes called POS devices. 11. The acronym OCR stands for “optical character recognition.” 12. A Kindle device is an example of a computer tablet . 13. The processing power of a computer is often measured by the power of its CPU. 14. CPU is an acronym for “computerized peripheral unit.” 15. The processing power of the CPU in a mainframe computer is greater than in a minicomputer. 16. RAM is an acronym for “record access machine.” 17. RAM is an acronym that stands for “read and manipulate.” 18. RAM is usually measured in megahertz. 19. A gigabyte of computer storage is equal to one million bytes. 20. The two components of a microprocessor are the arithmetic -logic unit and the control unit. Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.2 21. Processor speeds are very important to AIS applications because faster processors automatically lead to great er throughput. 22. Laser printers and dot -matrix printers produce equal quality output. 23. In online, real -time systems, hard -copy output may be less desirable than soft -copy video screen display output. 24. For fast printing, most AIS systems use ink jet printers rather than laser printers. 25. The opposite of “primary storage” is “secondary storage .” 26. Magnetic disks and USB flash disks are examples of secondary storage media. 27. CD-ROM disks and hard disks have about the same capacities. 28. Accounting data are typically stored on hard disks in groupings called “computer records.” 29. Each computer record on a hard disk is composed of sub -elements called “data fields.” 30. The term “ROM” (as in CD -ROM) means “read -only memory.” 31. The acronym “worm” means that some types of CD -ROMs can be rewritten repeatedly. 32. A “DVD” disk is read magnetically. 33. A DVD typically has a greater storage capacity than a CD -ROM medium. 34. Blu-ray disks can store more than CD -ROM disks . 35. The term “data communications” primarily refers to the transfer of data from primary memory to hard disks. 36. The mechanism for transferring data between components of the CPU is called a TRAIN (Transfer Random Accessed Instructions Now). 37. The term DSL stands for “digital subscriber line.” 38. The term “enrollment” refers to the initial reading in a biometric authentication. 39. An example of a “communications channel” is microwave transmission. 40. LAN is an acronym for “local area network.” 41. The central computer of a LAN is called a “file server.” Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.3 42. An advantage of using a LAN is the ability to distribute information among the employees in the same building. 43. An advantage of using a LAN is the ability to share computer files and equipment. 44. A computer network spanning a small area such as a single building is a WAN. 45. A computer network spanning a regional or national area is called a WAN. 46. Client/Server computing enables businesses to distribute the computer processing of the system between the client computer and the server computer. 47. The “application -logic” component of a client/server system refers to where the processing logic of the sy stem takes place. 48. Wireless data communications refers to the ability to transmit data over fiber optic cables instead of twisted pair wires. 49. Bluetooth is a wireless data communications standard that allows unlike communications devices to communicate w ith one another. 50. An operating system is a set of computer programs that helps a computer run itself. 51. Programs such as Windows Vista and Unix are examples of application programs. 52. Fortran, COBOL, and RPG are examples of computer operating systems. 53. NFC is an example of cloud computing. 54. A legacy system is an example of an older computer system, typically running on a mainframe computer. 55. The terms kilobyte, megabyte, terabyte, and gigabyte are correctly ordered by size or capacity. 56. The term RFID is an acronym for “registered for information or data.” 57. The term cloud computing refers to services that organizations can access on the Internet. 58. The ability to use a tax-preparation program via the Internet for a fee is an example of SaaS. 59. The acronym ERP stands for “ enterprise read -only program .” 60. A “mom -and-pop” convenience store would be an example of a business that would best utilize an ERP system. Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.4 Multiple -Choice Questions 61. All of the following are reasons why information technology is important to accountants except: a) IT supports AIS functions such as communications and record keeping b) Accountants must often evaluate AISs for themselves or for clients c) It is important to keep up; if your competitors buy new compu ters, you should too d) IT is likely to affect the way accountants work in the future 62. The CICA regularly conducts a voluntary survey to identify a list of important IT trends or factors called: a) The Top Ten Information Technologies and Issues b) The Top Twenty Information Technologies c) IT Information Trends for Tomorrow d) The CICA IT Information List 63. The hardware of a computer system includes the computer itself and other devices that help the computer perform its tasks. These “other devices” are commonly also called: a) Helper equipment b) IT devices c) Peripheral equipment d) Secondary equipment e) Accessory equipment 64. All of the following are examples of peripheral equipment except: a) Input equipment b) Output equipment c) Communications equipment d) Primary memory equipment e) Secondary storage equipment 65. Which of the se is one of the five interacting components of an accounting information system? a) Fuzzy logic b) Testing c) Certification d) Procedures e) Internet 66. Time cards, airline reserv ation screens, and bank deposit screens best describe which of the following ? a) Data transcription b) Point -of-sale devices c) Source documents d) Turnaround documents e) Data transaction documents Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.5 67. MICR is most closely associated with: a) The airline industry b) The data communications industry c) Manufacturing d) The banking industry 68. The UPC code is an example of a(n): a) POS b) MICR c) Bar code d) Biometric input 69. Which of the following best describes documents initially prepared by a company, then sent to individuals, and finally returned to the organization for data processing? a) Mark -sense media b) Source documents c) Turnaround documents d) MICR d ocuments 70. A POS device is usually attached to a: a) Printer b) Bank cheque c) Cash register d) Keyboard e) Computer mouse 71. POS devices, bar code readers, and OCR devices ar e examples of: a) Input devices b) Output d evices c) Processing d evices d) Transaction devices 72. Minicomputers, mainframe computers, supercomputers, and laptops are examples of: a) Input devices b) Output devices c) Central processing units d) Display devices 73. Printers and video monitors are examples of : a) Output devices b) Input devices c) Processing devices d) Storage devic es Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.6 74. Which of these is a portable computing device that enables users to have and maintain personal and/or business information and data anywhere at any time ? a) iPad b) Minicomputer c) Personal computer d) CPU 75. A secondary storage device that protects against disk failures and increases storage capacities by using stacks of hard disks best describes which of the following ? a) Magnetic disk b) CD-ROM disk c) Flash memory d) WORM (Write -once, Read -many) Disks e) RAID (Redundant Array of Independent Disks) 76. A 5-inch plastic disk used to store information up to 17 gigabytes describes which of the following ? a) CD-ROM b) Flash memory c) Zip disk d) DVD disk 77. A bar code reader is most likely to be used by which type of system? a) POS system b) MICR system c) Printer/scanner system d) Fax machine system 78. Which type of company is most likely to use MICR? a) Grocery store b) Bank c) Phone company d) Web site seller 79. The term “mark sense media” is most -closely related to which of the following? a) POS system b) OCR system c) MICR system d) EDRM system 80. Which of the following is the most important reason to use POS systems, OCR systems, or MICR systems? a) To use the latest information technology b) To avoid data transcription c) To create an extra layer of IT infrastructure d) To decrease dependency on foreign oil Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.7 81. The term “enrollment” is most closely associated with which of the following? a) EDRM system b) Biometric system c) POS system d) Joystick e) OCR system 82. Which of the following is correct? a) A laptop computer is an example of a minicomputer b) Minicomputers are more powerful than microcomputers c) Minicomputers are examples of tablets d) A mainframe computer is an example of a supercomputer 83. An older computer system, typically using a mainframe , centralized data processing , and COBOL software, is often called a: a) Supercompu ter system b) Primary system c) Legacy system d) Traditional system 84. The reason why processor speeds are not important to AISs is because: a) Most AIS processing is performed on weekends anyway b) There are so many of them in the world today c) Microcomputers are so inexpensive these days d) Most computers are I/O bound 85. Which of these is another common name for a printed document? a) A foldable document b) A hard-copy document c) A soft-copy document d) A POS document 86. Which of these is not an example of a type of printer? a) Dot-matrix printer b) Inkjet printer c) Laser printer d) VGA printer 87. The speed of a printer is commonly measured in: a) ppm b) crt c) lcd d) Pixels 88. Within the context of the chapter on IT, which of these is not an acronym? a) ppm b) byte c) pixel d) CD-ROM e) all of these are acronyms Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.8 89. When associated with CD -ROMs, the letters “rw” mean: a) Raw b) Rewind c) Rewriteable d) Regular width 90. A USB drive that uses flash memory is an example of a(n): a) Input device b) Output device c) Secondary storage device d) Web device 91. The term “EDRM” is mostly -closely associated with: a) Records management b) Points -of-sale processing c) Banking d) Electronic data recording and merchandising 92. Which of the following is not an example of a communication c hannel ? a) Twisted -Pair wires b) Coaxial Cables c) Optical Fibers d) Modem 93. Data communication speeds are typically measured in: a) ppm b) bps c) Pixels d) LANS e) WANs 94. A computer network spanning regional, national, or global areas best d escribes which of the following? a) LAN b) WAN c) ESPN d) DSL e) ISDN 95. Hardware or software that guards organizational information from external sources best describes which of the following ? a) Intranets b) Extranets c) Firewalls d) ISDN servers Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.9 96. Which of the following is a component of a client/server system ? a) User component b) Satellite component c) Data -management component d) Output component 97. The user’s view of a client/server system best describes which componen t of a client/server system? a) Application -logic component b) Data -management component c) Presentation component d) Data -transmission componen t 98. Which of these measures how close a biometric readin g is to a prerecorded template? a) OCR reading b) Hamming distance c) Match percentage d) Legacy amount 99. One advantage of this technology is that data processing can be performed by any computer on the network, so that servers can focus on dedicated tasks. a) Data -management computing b) Application -logic computing c) Client/Server computing d) Presentation computing 100. The special cards that users can store in their cars to gain access to parking lots and breeze through collection booths on toll roads are examples of: a) RFID systems b) NFC systems c) POS systems d) MICR systems 101. This is an example of an RFID system with a very limi ted range (less than 8 inches): a) LAN system b) NFC system c) WAN system d) MICR system 102. Menus, icons, and other graphical elements are an example of which of the following ? a) Utility programs b) Personal productivity software c) Virtual storage d) Graphical user interface (GUI) Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.10 103. Programs that help users perform such tasks as copying files, converting files from one format to another, compressing files, performing system diagnostics, and building disk directories best describes which of the following ? a) Antivirus software b) Utility programs c) Application software d) Operating system software 104. Application s oftware that enables businesses and government agencies to maintain, transmit and manipulate financial data on an organization -wide basis best describes : a) Commu nication software b) CAD software c) Enterprise resource planning (ERP) software d) Programming software 105. Software used for preparing payrolls, maintaining accounts receivable files, or controlling inventory best describes : a) Communication software b) Personal productivity software c) Project management software d) Accounting software 106. All of the following are programming language s except: a) Java b) HTML c) C++ d) COBO L e) ERP 107. The translation process of converting source code into machine language (object code) is performed by which of the following ? a) Utility program b) System software c) ERP (Enterprise Resource Management) software d) Compiler 108. This is the process of recording the biometric readings of a legitimate user for the first time: a) Authorization b) Biometric recording c) Compiling d) Digital assisting e) Enrollment 109. The term DSL is mostly closely associated with: a) Computer tablets b) Biometrics c) Compiling computer programs d) Digital data transmission 110. The term cloud computing refers to: Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.11 a) Fuzzy computing logic b) Hidden computer data, which are obscured in some way c) Purchasing computing services on the Internet d) Undetected errors in data processing 111. Which of these is not an example of application software? a) Operating systems b) Spreadsheet packages c) Accounting packages d) Database management systems e) all of these are e xamples of application software Chapter 2 Test Bank Accounting Information Systems, Cdn Ed Simkin et al. p.12 Matching Questions For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once – there are two definitions that are not used. 112. ______ Input -processing -output 113. ______ POS system 114. ______ data transcription 115. ______ MICR coding 116. ______ biometric verification 117. ______ legacy system 118. ______ gigabyte 119. ______ terabyte 120. ______ worm 121. ______ RFID Definitions: A. Automated data recording for input B. Potential bottleneck for processing accounting data C. An older AIS, typically using a mainframe computer D. 1 billion bytes E. The data processing cycle for processing most accounting transactions F. A type of CD encoding G. 1 trillion bytes H. Threshold hamming distance I. Data communications using radio waves J. Used by banks for automated data input K. 1 thousand bytes L. 1 million bytes Short Answer Questions 122. What components make up an AIS system? 123. Why are microprocessor speeds rarely important to an AIS? 124. What is the difference between mainframe/host computing and microcomputer client/server computing? TB 3. 1 Chapter 3 Data Mode lling True -False Questions 1. The letter “M” in the acronym DBMS stands for “maintenance.” 2. The letter “M” in the acronym DBMS stands for “management.” 3. An accounting information system database is a collection of facts and figures that serves the accounting information needs of one or more organizational subsystems. 4. Given the flexibility and usefulness of computerized accounting databases, a company will always find it cost effective to use them in processing, storing, and retrieving accounting data. 5. The correct order of elements, from smallest to largest, in the data hierarchy is data field, record, file (table), database. 6. The correct orde r of elements, from smallest to largest, in the data hierarchy is data field, file (table), record, database. 7. The correct order of elements, from smallest to largest, in the data hierarchy is database, data field, record, file (table) . 8. The basic unit of information in an accounting information system database is the debit. 9. The largest unit of information in an accounting information database is a data field. 10. The basic unit of information in an accounting information database is a table. 11. The smallest unit of information in the data hierarchy is a data field. 12. The largest unit of information in the data hierarchy is a record. 13. A computer record is used to store all the information about one transaction, but several such records must be used to store the information about one employee, one inventory part, and so forth, on a master file. 14. The data field that distinguishes one record from another in a database table is called the primary key. 15. Reco rd keys on computer files are unique only to the extent that they classify computer records by some general category. 16. A last name such as “Smith” is an example of a useful primary record key. 17. A Social Insurance N umber (SIN) is a good example of a useful primary record key. TB 3. 2 18. For a file of employee workers, it would make more sense to use their last name as a primary key rather than their Social Insurance N umber because this would better preserve their privacy. 19. A foreign key is a data field in the records of one file that references a primary key in the records of another file. 20. Three database concerns when creating large databases are “data integr ity,” “processing accuracy,” and “data security.” 21. A data dictionary is a computer file describing the data items of an accounting database. 22. The term “transaction control” refers to the requirement that a database system either process a tran saction entirely, or not at all. 23. The “concurrency” con trol in database operations refers to the need to convert foreign currency amounts into dollar terms before reporting them to subschema viewers. 24. The idea behind concurrency control is to deny several users access to the same database record at the same time. 25. Database security is no longer important because DBMSs are already so safe. 26. The idea behind view controls is to allow users access to only that information that they need to see. 27. An REA accounting system takes an “enterprise -wide view” of accounting data. 28. The initials R-E-A in the REA accounting framework refer to “resources, events, and accounting.” 29. “Protecting privacy” is one of the important goal s in data modelling . 30. “Avoiding data redundancy” is one of the important goal s in data modelling . 31. The E -R model refers to the “entity -relationship” model. 32. An example of a da tabase cardinality is “one -to-many.” 33. An example of a database cardinality is “one -to-few.” 34. An example of a database cardinality is “one -to-one.” 35. An example of a “one -to-one” relationship is “employee to assigned parking stall.” 36. An examp le of a “one -to-many” relationship is “students to classes.” 37. A relational data structure should never be used for accounting systems. 38. A disadvantage of relational databases is that they cannot accommodate a variety of file inquiries.