(Test Bank) Core Concepts of Accounting Information Systems

Simkin,Worrell,Savage, 14

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14th Edition

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Test Bank for Core Concepts of Accounting Information Systems, 14e Mark Simkin, James Worrell, Arline Savage (All Chapters) Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 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 ac counting 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 sourc e 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 weekly payroll system might be an employee time card. 9. The starting point for an audit trail of a production department might be the purchase order for raw materials. 10. The acronym ERP stands for “electronic reporting plan.” 11. The term information overl oad refers to providing too much data to management, often resulting in managers ignoring it. 12. An advantage of computerized 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 work ed in a payroll application. 13. Computers tend to make audit trails easier to follow because everything is computerized. 14. The acronym ERP stands for “enterprise reporting system.” 15. The authors consider accountants to be “knowledge workers.” 16. Predictive anal ytics use large data warehouses to help o rganizations improve performance by predicting future outcomes . Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 2 17. As used in this chapter, the acronym SAR stands fo r “suspicious accounting reporting .” 18. Sections of the Patriot Act mandate suspicious activity repo rting. 19. One of the motivations for SAR is to identify money laundering activities. 20. The term “Patriot” in the “Patriot Act of 2001 is an acronym for “providing appropriate tools required to intercept and obstruct terrorism.” 21. Accounting rules do not allo w for any flexibility in financial reporting by management . 22. Accounting systems are useful for performing accounting tasks, but cannot be used for such security purposes as countering terrorism. 23. An example of a corporate scandal that was mentioned in th is chapter is the Enron case. 24. The Sar banes -Oxley Act allows CPA firms to help clients acquire, install and use information systems and to also act as those clients’ external auditor . 25. The Sarbanes -Oxley Act prohibits companies from using the same auditi ng firms for performing both auditing and management consulting services. 26. Cloud computing is a way of using business applications over the Internet . 27. A consulting service provided by CPA firms is risk assessment . 28. A major output of financial accounting is the preparation of financial statements such as an income statement. 29. The series of steps leading from data recorded in transaction records to the information reported on financial statements is called the accounting cycle. 30. AISs are only concerned w ith financial information. 31. 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 interna l managers. 32. In a responsibility accounting syste m, managers trace unfavorable performance to the department or persons causing the inefficiencies . 33. One major difference between financial accounting and managerial accounting is that financial accountants use dashboards while managerial accountants do not. Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 3 34. An example of a financial report that would be prepared by a managerial accountant (instead of a financial accountant) is a budget report. 35. XBRL is a business reporting language that is used to define interactive financial data. 36. “Cost accounting” is a subset of managerial accounting . 37. An ABC inventory system refers to an “activity -based costing” system. 38. As used in chapter 1, the term “dashboard” refers to a quick and easy plan to install a computeri zed accounting system in an organization. 39. As used in Chapter 1, a dashboard is an up -to-the-minute graphic depiction of key performance measures . 40. 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. 41. “CPA Trust Services ” performed by a CPA provides assurance that a company engaged in electronic commerce has an information system that is secure . 42. An example of a value -added reseller (VAR) is a dealer who sells software but does not help with the installation, training and customization of that software for the customer . 43. Some possible career opportunities for AIS majors or minors include consulting positions, computerized auditing, or computer security positions. 44. Accountants are usually classified as “line workers” within business organizations. 45. Today's AIS is an enterprise -wide information system that focuses on interdepartmental business processes. 46. A good audit trail within the financial accounting system should allow a manager or auditor to trace any source document back from a report to the original data entry. 47. Managerial accounting principally provides decision -making information to a company's internal managers. 48. As a result of comput erized information processing systems in many organizations today, the need for accountants in these organizations has significantly declined. 49. Activity -based costin g systems focus on allocating overhead on the basis of direct labor hours used. Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 4 50. 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. 51. Within the traditional AIS, a sales order would not be considered an accounting transaction. 52. Students majoring in AIS are unlikely to assume jobs in traditional accounting positions because they know too much. 53. There are limited career opportunities available for students who study both accounting and information syst ems. 54. One possible career for AIS majors is in the traditional area of financial or managerial accounting. 55. The CISA is an acronym for a profes sional accounting certification. Multiple -Choice Questions 56. The “S” in the acronym “AIS” stands for : a) Standard b) System c) Symbol d) none of these 57. The letter “P” in the acronym “ERP” stands for: a) Production b) Planning c) Project d) none of these 58. 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 exact opposites c) Processed “data” becomes “information” d) none of these 59. Which of the following captures the same idea as the term “G arbage In Garbage Out?” a) Too much information is the same as garbage b) The quali ty of computer output is determined by the quality of the input c) Great investments lead to great returns d) Too many cooks spoil the broth Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 5 60. Which of the following bes t describes a data warehouse ? a) A repository of historical information from one accounting application b) A repository of historical information from a set of accounting applications c) A repository of information from a wide range of services —some not accounting —stored within a company d) A repository of information from many businesses in the same ind ustry 61. Most AISs perform all of these functions 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 62. As used in the chapter, the term “knowledge wor kers”: 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 63. 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 64. Suspicious activity reporting: a) Only applies to banking transactions b) Is mandated by state, but not federal, r egulations c) Is mostly concerned with embezzlement issues d) Requires CPAs to report questionable financial transactions to the U.S. Treasury Department. 65. 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 Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 6 66. Which of these businesses is not required to report suspicious activities under current federal laws? a) Banks b) Money service organiza tions c) Commodity Traders d) Mutual fund dealers e) All of these businesses must engage in SAR 67. Which of these statements best describes the relationship between “AISs” and “countering terrorism?” a) These are completely independent i tems; th ere is no relationship b) AISs can help counter t errorism by providing SAR evidence c) AISs can help by denying financial aid to terrorist groups d) AISs can help by identifying international embezzlers 68. Bernard Madoff is most closely associate d with which of the following terms? a) The father of activity -based costing systems b) SAR c) Ponzi scheme d) Sarbanes -Oxley Act of 2002 e) Key sponsor of the Patriot Act 69. 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 70. Managerial accounting principally provides information to: a) Stockholders b) Government regulators (e.g., SEC, Federal bank examiners) c) Internal company management d) Potential creditors 71. The process by which a financial transaction is recorded so that its flow through the system can be followed is called: a) Finan cial shadowing b) Managerial trace technique c) Concatenation d) An a udit trail Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 7 72. 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 73. 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 a ccountants have become involved in more decision -making activities d) The accountants' decision -making activities have drastically declined 74. What is the first step to be performed by most organizations in their accounting cycles? a) Recording business trans actions in a journal b) Preparing a trial balance c) Recording closing entries in a journal d) Preparing transaction source documents e) none of the above 75. 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 76. The P in the acronym KPI stands for: a) Processing b) Performance c) Planning d) Personnel e) none of these 77. 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 Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 8 78. Historically, financial data used in one application was not easily transferable to other applications. However, the problem was fixed with which one of the following? a) XMP b) ERP c) XBRL d) XMLP 79. An example of an assurance service for a company engaged in electronic commerce is: a) XBRL b) Trust US c) CITP d) CPA Trust Services 80. 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 81. Information systems auditors are: a) Auditors who are concerned wi th 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 82. Which of these is a certi fication that accountants can earn that focuses on proficiency in information technology? a) CPA b) CMA c) CISA d) CITP 83. The designation for a licensed information systems audit professional is: a) CPA b) CMA c) CIA d) CISA 84. The certified info rmation systems auditor certification is sponsored by: a) ISACA b) AICPA c) IMA d) none of these Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 9 85. 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 make predictions about future outcomes c) It is a method used to prevent managers fr om overriding internal controls d) none of the a bove 86. 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 organiz ations extranet d) none of these 87. Which one of the following best describes the performance elements contained in most balanced scorecards? Financial Nonfinancial Performance Measures Performance Measures a) No No b) No Yes c) Yes No d) Yes Yes 88. The balanced scorecard provides an action plan for achieving competitive success by focusing management attention on critical success factors. Which one of the following is not one of the co mpetitive success factors commonly focused upon in the balanced scorecard? a) Competitor business strategies b) Financial performance measures c) Internal business processes d) Employee innovation and learning Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell, and Savage TB 1. 10 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 terms that are not used. 89. _______CFE 90. ______ SAR 91. ____ __ CISA 92. ______ ERP 93. ____ __ XBR L 94. _______ ISACA 95. ______ _ IT 96. _______ REA 97. ___ ____ KPI 98. _______ VAR Definitions: A. A professional auditing organization B. A special type of systems consultant who is licensed to sell particular software packag es and provide organizations with consulting services related to that software C. An enterprise -wide accounting system D. Federally -mandated reporting of suspicious accounting activities E. An important database design approach F. Key productivity report G. A language fo r creating, transforming, and communicating financial information H. An auditing certification I. An acronym often used to describe the computer department of an organization J. A type of knowledge worker K. A certification that requires individuals to meet certain qu alification set by the Association of Certified Fraud Examiners L. An important performance indicator Short Answer Questions 99. Name some business activities that do not require traditional journal entries. 100. Give three reasons why XBRL formatted doc uments are useful. Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.1 Chapter 2 ACCOUNTING ON THE INTERNET True -False Questions 1. The domain address of a web page is the equivalent of its universal resource locator (URL). 2. The Internet Protocol address is a numerical translation of the text -based domain address. 3. Another name for a URL is the term “domain address.” 4. Most accountants believe that a uditors do not need to concern themselves with IP addresses. 5. ICANN is an acronym that stands for Internet Control and Network Numbers. 6. An example of an Interne t domain address is www.Wiley.com . 7. The new standard is IPv6 that uses 128 bits for I nternet protocol addresses. 8. Intranets do not use the same software as the Internet. 9. An extranet is a network that a bu siness might establish with its trading partners. 10. The World Wide Web is the text portion of the Internet. 11. The term “blog” is an acronym that stands for “binary login.” 12. Social media is important to marketers, but only of passi ng interest to accountants. 13. Surveys sugge st that less than half of all companies use social media for business purposes. 14. Groupware is the technology that enables knowledge sharing a nd knowledge management among employees. 15. XBRL is not related to X ML. 16. XBRL allows users to extract and compare financial data from many different companies. 17. HTML tags describe how data and graphics should be presented by a web browser. Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.2 18. The SEC will not accept XBRL formatted data in electronically filed financial reports. 19. All electronic commerce takes place over the Internet. 20. XBRL is an acronym for “extensive business reports and liabilities.” 21. XBRL is a type of XML. 22. A set of XBRL tags identifies the data it contains as well as i ndicates how to display that data. 23. An advantage of XBRL is its ability to express semantic meaning —i.e., to express such relationships as “assets = liabilities + equity.” 24. IDEA is a computer system used by the Securities and Exchange Commission (SEC). 25. IDEA uses XBRL -coded data of corporate financial statements. 26. An advantage of XBRL is that the tags have been completely standardized by the XBRL International Consortium and the se standards are now fixed. 27. An advantage of XBRL is that it can save companies the cost of rekeying financial data from one computer application to another. 28. An important disadvantage of XBRL is that most accounting packages cannot read or write documents in XBRL format. 29. E-wallets store cust omer data to facilitate online purchases. They do not store dollars. 30. Bitcom is an example of a virtual currency. 31. A disadvantag e of a virtual currency is the unwillingness of some to accept payments. 32. EDI automates the exchange of business information, particularly with respect to source documents. 33. EDI can only be used by private, for -profit businesses. 34. A major issue impacting e -busines s is the trade -off between accessibility and vulnerability. 35. Firewalls are virtually unbreachable and offer assurance against all viruses. 36. Proxy servers can act as firewalls and can also limit employee Internet access to approved web addre sses only. Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.3 37. Data encryption rende rs a text message unreadable during data transmission , even if intercepted . 38. Public key encryption requires the use of a pair of public/private encryption keys. 39. Digital signatures can never be as secure as written signatures. 40. Digital time stamping authenticates the time and sometimes the place a transmission or transaction occurred. 41. For all its exposu re in the popular press media, i dentity theft affects a relatively small number of people and, in total, involves a small amount of losses per year. 42. Three types of access security are (1) what you have, (2) what you know, and (3) who you are. 43. Spam is annoying, but not a particularly costly or bothersome, to most businesses or government a gencies. 44. The term “phishing” refers to the use of web pages or other means to trick viewers into revealing their passwords or other personal information. 45. Worldwide, the total number of phishing attacks is increasing. 46. Two types of firewall policies are protection by (1) inclusion, and (2) exclusion. 47. An advantage of a proxy server is the ability to store commonly -requested web pages in memory, thereby enabling it to respond quickly to internal user requests for them. 48. The term “B2B” is Interne t slang for “back to basics.” 49. BASF is one of the world’s largest telephone companies. 50. EDI is an acronym standing for “e lectronic delayed interface.” 51. The term “SaaS” is an acronym standing for “software as a service.” 52. When a cloud service company hosts a client’s website, this is an example of “platform as a service.” 53. For most businesses, clo ud computing is an example of outsourcing. Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.4 54. The heaviest demands on book publishing websites come in the weeks just prior to the start of a fall or spring semester. 55. Mozy is a cloud provider of backup services. 56. One im portant personal category of cloud computing for account ants is educational services. 57. The Department of Justice prosecutes identity t heft under the ITADA Act of 1998. 58. An example of a so cial networking site is eBay. 59. An example of a s ocial networking site is FaceBook. 60. Businesses can use social networking sites to better understand the reactions to new products or services. 61. Social networks do not pose privacy concerns. 62. The most common reason businesses outsource is to increase control over their da ta and data processing tasks. Multiple -Choice Questions 63. An example of an Internet service provider is: a) General Electric b) AOL c) PeachTree d) ISP e) none of these 64. Another name for an Internet domain address is its: a) URL b) ISP c) email address d) IETF 65. An example of a URL is: a) .gov b) 100.100.100.100 c) www.wiley.com d) <B>Title</B> Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.5 66. In the Internet add ress www.Name.com.X , the term X usually st ands for: a) A country b) A city c) An abbreviation such as “gov” d) A transmission protocol 67. Which of these is not a component of an IP address? a) A geographic region b) An organization number c) A computer group d) A specific computer number e) A specific user number 68. This organization assigns the official registry of Internet domain names. a) TCP b) URL c) ICANN d) HTTP 69. An advantage of an extranet is that: a) It can disseminate information corporate -wide b) It can be accessed by selected trading partners c) Users can employ common web browsers to access information in them d) all of the above 70. The letter “p” in the acronym http stands for: a) Page b) Provider c) Protocol d) Parity 71. All of the following are normally associated with the Internet except : a) IP addresses b) URL addresses c) http d) MIC R coding 72. These allow a user to access alternate web pages from an existing page: a) Hyperlinks b) Golf links c) html titles d) The XBRL tag <Web Address> Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.6 73. This language allows its users to create web pages on the Internet: a) HTTP b) HTML c) URL d) COBOL 74. The “X” in the term XBRL stands for: a) Extra b) Extensible c) X-rated d) Exante 75. Which of the following is true about XBRL? a) It is a business application of XML b) It uses tags such as <b> like HTML c) It is used by the SEC to collect and store fi nancial information about companies d) all of the above are true about XBRL 76. One advantage of XBRL tags is that: a) They always contain links to other web pages b) Optional entries allow users to specify units of currency, such as Euros c) They a re now fixed standards d) They cannot be used by hackers 77. IDEA is used by the Securities and Exc hange Commission (SEC) to: a) Store the financial data of public companies b) Collect lists of bankrupt companies c) Store the URL’s of member firms d) Collect data on individuals victimized by identity theft hackers 78. All of the following are true about XBRL tags except : a) Tags are “extensible” b) Tags describe the data c) Tags tell how to display data d) Tags are now permanently standard ized across industri es 79. All of the following are benefits of XBRL except : a) Companies can file financial information in one format, avoiding the errors that may come from reentering data multiple times b) The SEC accepts XBRL -format for electronic filing of financial stateme nt reports c) XBRL permits the automatic and reliable exchange of financial information across many software formats and technologies, including the Internet d) all of the above are benefits of XBRL e) none of the above are benefits of XBRL 80. The “A” in the t erm IDEA (used by the SEC) stands for: Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.7 a) Accounting b) Association c) Addition d) Applications e) Access 81. Which of these is not an advantage of XBRL? a) It often enables businesses to avoid rekeying data downloaded from corporate websites b) It constrains companies to particular formats, thus ensuring consistency c) It helps standardize the storage and therefore presentation of financial information d) all of these are advantages of XBRL 82. Which of these is the official website of the XBRL International Consortium? a) www.xbrl.com b) www.xbrl.org c) www.xbrl.gov d) www.xbrlic.com 83. Which of these best describes the c urrent state of XBRL? a) It now lacks standards, but the hope is that we will get some soon b) The language is completely standardized c) The language is dynamic and standards are still being developed d) The language now awaits official sanction by t he United Nations before being released for use 84. Retail sales on the Internet: a) Are growing rapidly b) Were growing at first, but are now declining c) Are not possible on the Internet d) Have only been achieved by major retailers such as Wal -Mart 85. All of these are business advantages of social media except: a) Enables businesses to i ncrease organization recognition b) Enables businesses to e valuate customer reactions to new goods or services c) Enable s accountants to communicate with one another o n projects d) Enables businesses to m anage strong reactions to firm missteps early e) all of these are business advantages of social media 86. Which of these best describes a firm’s use of social media for monitoring employees? a) It is illegal b) It is legal b ut rarely done c) It enables companies to identify employees with undesirable traits d) It is a required practice that is required by most worker un ions 87. This company is one of the largest “auction houses” on the web: Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.8 a) Wal-Mart b) Sears, Roebuck c) eBay d) Forester 88. The term “click fraud” refers to: a) Overcharging clients when they view a website b) Overcharging companies for phantom cl icks on an advertising link c) Misleading users into clicking on links to web sites sel ling illegal goods or services d) none of these refers to click fraud 89. An important characteristic of E -wallets is: a) It is exactly the same as regular cash b) It is the same as EDI c) It contains the identity of the user d) Users must also supply a credit card number when using it 90. A virtual currency is money that: a) Doesn’t actually exist b) Cannot actually be purchased by anyone who is not authorized to buy it c) Operates as a medium of exchange despite the fact that no compa ny or country stands behind it d) No one has e ver seen, but that Internet junkies believe exists 91. An example of a virtual currency is: a) Negotiable bonds b) Bitcoin c) A certificate of deposit d) The lettered stock of a company 92. All of these are advantages of a virtual currency except: a) The ability of a company to do more business if they accept the currency b) No need to pay credit -card charge s or large clearing house fees c) The support of the issuer’s centr al bank in the event of default d) all of these are ad vantages of a virtual currency 93. Which of these is an accounting drawback of a virtual currency to a company using it? a) Appreciation in value is repor table for tax purposes b) Floating cost bases makes accounting for such assets more difficult c) No cen tral bank guarantees its value d) all of these are drawbacks of virtual currencies Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.9 94. An advantage of E -wallets is that : a) Users do not need to re -enter personal information each time they make an online purchase b) Most E -wallet information is maintained on vendor file servers c) They ensure the completion of a purchase transaction over the Internet d) none of the above are advantages of E -wallets 95. All of the following are examples of EDI “documents” except : a) Purchase orders b) Sales invoices c) Customs documents d) Bar codes 96. Which of these is not an advantage of cloud computing? a) Companies must update their own softwar e, even if stored in the cloud b) Companies save money on hardware or software costs c) Gives access to distan t vendors or software developers d) Organizations pay as they go 97. Which of these is correct about the terms “e -business” and “e -commerce.” a) They are exact synonyms b) They are exact opposites c) e-business is a subset of e -commerce d) e-commerce is a subset of e-business 98. Within the context of e -commerce, the acronym B2B stands for : a) Back to basics b) Baltimore or bust c) A non -existent public broadcasting system d) Business to business 99. In recent years, the most common complaint related to identify theft is: a) Alteration of personal information b) Imbalances in financial statements c) Credit card fraud d) Deletions of the personal information maintained by banks and insurance companies 100. According to the textbook, w hich of the following statements is true about id entity theft? a) Most personal identities are stolen by dumpster diving b) There is little individuals can do to protect themselves from identify theft; this is a corporate problem c) There is much that individuals can do to protect themselves d) Accountants are m ore vulnerable to identity theft than non -accountants Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.10 101. One form of access security is determining authentic users by “who they are.” Which of the following is an example of such authentication? a) Verifying a password b) Biometric tests such as retina s cans c) Requesting that the user provide his or her mother’s maiden name d) Requiring the user to show a valid driver’s license 102. One form of access security is determining authentic users by “what they have.” Which of the following would be an example of such authentication? a) Verifying a password b) Biometric tests such as retina scans c) Requesting that the user provide his or her mother’s maiden name d) Requiring the user to show a valid driver’s license 103. One form of access security is det ermining authentic users by “what they know.” Which of the following would be an example of such authentication? a) Verifying a password b) Biometric tests such as retina scans c) Requesting that the user provide an employee identification card d) Requiring the user to show a valid d river’s license 104. What is the main reason why companies prefer VANs to the Internet for implementing EDI? a) Cost - VANs are cheaper than the Internet b) Speed - VANs are faster than the Internet c) Security - VANs are thought to be more secure d) Convenience - VANs are everywhere 105. The letter “N” in VPN stands for: a) Network b) Notice c) Nanosecond d) Nothing 106. Tricking users into providing personal information such as a social security number on a web site is an example of: a) Spamming b) Spoofing c) Proxy serving d) Phishing Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.11 107. The term “spoofing” refers to: a) Computer hijacking b) Kidding c) Posing as a legitimate computer user d) Distributing junk mail 108. The purpose of a company firewall is to: a) Guard against spoofing b) Assist the IETF c) Deny computer hacker s access to sensitive data d) all of the above 109. A proxy server is: a) A type of computer network often used by companies with many employees b) An alternate for a company mainframe computer c) A substitute for a good waiter at a restaurant d) A computer dedicated t o Internet access and transfers 110. The term data encryption refers to: a) Storing data in safe places called “crypts” b) Transforming data into secret codes c) Scrambling data systematically d) none of these 111. All of the following are associat ed with data encryption except : a) Plaintext b) Cyphertext c) DES d) URL 112. The term key in the context of data encryption refers to: a) A physical key similar to a house key b) A logical key similar to the primary key of a data file c) A mathematical function used for enc ryption purposes d) A computer function key that can be found on keyboards 113. An interesting dimension of public key encryption is that: a) It actually requires two keys b) It only requires one key c) Everyone can decode a message written in it d) none of these Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.12 114. A digital signature : a) Is the same as a hand -written signature b) Is a bitmapped representation of a hand -written signature c) Is encrypted data that authenticates a transmitted message d) none of these 115. Third party assurance: a) Provides online purchasers with some assurance regarding the security and privacy of a web site b) Is unlikely to concern auditors c) Is a service offered only by the American Institute of Certified Public Accountants d) Is a service offered only by the Better Business Bureau 116. Which of the following is not true regarding user authentication? a) One level of authentication is who you know b) An information system may require more than one lev el of authentication for access c) One level of authentication is what you know d) An example of authentica tion w ould be use of a password 117. Because Internet software is so convenient to use, many companies also cr eate the following for communications purposes: a) Intranets b) Extranets c) Firewalls d) Domain address 118. Which of the following is a g roup collab oration tool that allows anyone with a Web browse r and some easy -to-use software to publish a personalized diary online? a) Electronic conferencing b) Blogs c) Firewalls d) e-mail 119. Which of these is not an acronym normally associated with cloud compu ting? a) SaaS b) PaaS c) IDEA d) all of these are cloud computing acronyms 120. Utilizing tax preparation software from a cloud service provider is an example of: a) SaaS b) PaaS c) IDEA d) XML Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.13 121. All of the following are advantages of cloud computing except: a) The client o nly pays for resources that it actually uses b) The client gains additional control over its data c) The provider, not the client, handles changes in processing volume d) all of these are advantages of cloud computing 122. Which of these is not an example of a cl oud service provider? a) A company that performs backup services over the Internet b) A company that performs payroll processing over the Internet c) A company that provides janitorial services d) all of these are examples of cloud service providers 123. Companies such as Backblaze, DropBox, and Mozy are examples of companies that perform this type of cloud service: a) Backup services b) Payroll processing c) Janitorial services d) Tax preparation services e) Web hosting 124. Which of these is not an Internet search engine? a) Google b) Bing c) Yahoo d) MySpace 125. Social networking sites such as Twitter or Facebook: a) Have only social uses, not commercial ones b) Have both social and commercial uses c) Have only commercial uses d) May have future comme rcial uses that have not been realized to date 126. Which of these is a concern regarding social networks? a) They pose privacy issues b) They are inconvenient for communicating with target audiences c) none of them identify the author of a part icular comment d) none of these are social -networking concerns 127. Within the context of Chapter 2, the term “C2C” means: a. Computer to computer b. Customer to computer c. Correction to correction d. Customer to customer 128. Which one of these acronyms does n ot make sense within the context of Chapter 2? Core Concepts of Accounting Information Systems , 14th Edition, by Simkin, Worrell and Savage TB 2.14 a. B2B b. C2C c. B2C d. C2B 129. Which of these describes large businesses such as Amazon selling goods to individuals? a. B2B b. B2C c. C2C d. C2B 130. The company AirBnB is an example of: a. B2B b. B2C c. C2C d. C2B