148 test bank for accounting information systems 11th edition

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148 Test Bank for Accounting Information Systems 11th Edition

True False Questions Free Text Questions

-Mutiple Choice Questions - Page 1

involves the process of ensuring the suite of organization's

applications work together as a composite application according to the goals and objectives of the organization

1 A) Applications requirements planning

2 B) Enterprise application structure

3 C) Enterprise resource planning

4 D) Applications architecture

Which of the following is not an objective of internal control as a process?

1 A) Reliability of financial reporting

2 B) Accuracy of accounting information

3 C) Compliance with applicable laws and regulations

4 D) Effectiveness and efficiency of operations

The internal audit function within an organization should be considered a(n)

1 A) activity supervised by the controller.

2 B) sub function of the treasurer.

3 C) independent appraisal activity.

4 D) optional service provided by the firm's external auditors.

Groups of organizations working together to create new products, new

process methods, and/or human capital intelligence is referred to as a(n)

1 A) ERP.

2 B) e-commerce.

3 C) collaborative commerce.

4 D) application consortium.

Which of the following transaction processing cycles concerns events related

to the distribution of goods and services to other organizations and the

collection of related payments?

The preparation of forecasts and analyses used by management in planning and controlling the operations of the organization is generally a(n)

1 A) budgeting function.

2 B) tax planning function.

3 C) accounting manager function.

4 D) treasurer function.

A(n) is a group of loosely connected companies that work together

to maximize the value of their economic outputs

1 A) extended enterprise

2 B) enterprise resource planners

3 C) enterprise suite

4 D) value chain consortium

What language facilitates business-to-business commerce through the

extended value chain, which includes both manufacturers and their

2 B) Outbound sales logistics

A system that manages all contacts with customers is a system

1 A) customer value chain

2 B) customer relation management

3 C) customer supply chain management

4 D) customer requirements planning

Material requirements planning software assists management in managing

1 A) inventories.

2 B) overhead.

3 C) scheduling production.

4 D) both inventories and scheduling production.

A group of individual software applications designed to run in Web browsers and facilitated through a service oriented architecture (SOA) is referred to as a(n)

1 A) ERP II.

2 B) application architecture.

3 C) value chain application suite.

4 D) enterprise application suite.

The area of functional specialization which is responsible for the design, coding, testing, and debugging of computer programs is the

1 A) technical support function.

2 B) systems design, systems implementation, and systems auditing.

3 C) systems design, systems analysis, and systems programming.

4 D) systems analysis, systems design, and systems implementation.

A complete systems solution involving one software package and one database is referred to as

3 C) chief information officer.

4 D) chief internal auditor.

Information retrieval from the organization's database using the query language feature of DBMS is a common

1 A) programming function.

2 B) technical support function.

3 C) EUC application.

4 D) ES application.

are the only physical items that are absolutely required for a user of cloud computing

1 A) A data storage unit and an Internet connection

2 B) A Web browser and a RFID card

3 C) A QR reader and an Internet connection

4 D) A Web browser and an Internet connection

The technological philosophy that emphasizes "customer satisfaction" to the point of "customer obsession" is known as

1 A) Historical and future

2 B) Strategic and operational

3 C) Internal and external

4 D) Mandatory and discretionary

Which of the following is not a common transaction processing cycle found in business organizations?

1 A) Expenditure cycle

4 D) lower-level and middle management.

Quick Response reader application can typically

1 A) open a Web site

2 B) display a video

3 C) display text

4 D) All of these answers are correct.

The term that best describes an information system that is tailored to the strategic information needs of top-level management is a(n)

1 A) accounting information system.

The following are benefits of an ERP except for the ability

1 A) to eliminate data duplication and redundancy.

2 B) to standardize data formats.

3 C) to easily share data from various departments.

4 D) to easily customize software to meet company needs.

A(n) system encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics

management activities

1 A) CRM

When should the actual users of a system be involved when a new system is being developed?

1 A) As soon as the new system is implemented

2 B) After all unexpected bugs and glitches have been found and corrected

3 C) Only after all employees have been thoroughly trained to use the new system

4 D) Throughout the design of the new system

An organization's internal control process consists of how many elements?

1 A) The company's labor union

2 B) The Internal Revenue Service

3 C) The company's main bank

4 D) The company's main supplier of its raw materials

Software that integrates business processes on a company-wide basis is called

1 A) enterprise resource planning.

2 B) executive information systems.

3 C) expert systems.

4 D) manufacturing information systems.

Which of the following is not associated with lean manufacturing?

1 A) Many experts feel that XBRL will replace EDI.

2 B) XBRL is in effect a narrower standard than the ANSI X.12 standard for EDI.

3 C) The SEC allows use of the XBRL format.

4 D) XBRL facilitates the exchange of business documents over the Internet.

Which of the following is not an objective of internal control?

1 A) Reliability of financial reporting

2 B) Effectiveness and efficiency of operations

3 C) Relevance of financial statements

4 D) Compliance with applicable laws and regulations

An important quick response technology used to track objects using radio signals is called

1 A) sonic tagging.

2 B) radio frequency identification.

3 C) object frequency tagging.

4 D) frequency waves identification.

Green IT is concerned with

1 A) reducing e-waste by reusing and or refurbishing IT products.

2 B) using less fuel in the creation of IT systems.

3 C) designing more efficient systems in order to reduce necessary storage

requirements.

4 D) Green IT is concerned with all of the above.

Which of the following is not a consumer benefit of Web commerce?

1 A) There is no waiting for a salesperson or product information.

2 B) There is automatic electronic encoding of transaction data.

3 C) Web-based transactions are encrypted providing security.

4 D) Intelligent Web-based software can provide answers to complicated questions.

A company known for its use of blueprints in systems design for clients is

3 C) Executive information system

4 D) Accounting information system

The following are EDI standards except

1 A) ANSI X.12.

2 B) AS2.

3 C) eBXML.

4 D) ISO-95.

Which statement regarding internal control is false?

1 A) Documentation is not a critical component of an internal control system.

2 B) Ideally, a task can be divided to make job functions as natural checks on each other.

3 C) A specific person should ideally be responsible for each task or job function.

4 D) All records should allow cross-referencing from one area of responsibility to another.

Which of the steps below is not part of the systems approach process?

1 A) Creation of alternatives

2 B) Statement of system objective(s)

3 C) Systems evaluation

4 D) All of the answers are steps in the systems approach process.

In the systems approach to administering a systems project, which of the following phases should be performed first?

1 A) Creating alternatives

2 B) Analyzing the system

3 C) Implementing the system

4 D) Stating the system's objectives

Which officer, department, or division within an organization is responsible for monitoring the other departments to ensure that the organization's

policies and procedures are being carried out?

1 A) Internal auditing

2 B) Vice President for Administration

3 C) Chief Information Officer

4 D) managing the production cycle.

When viewing a typical organization chart, the individual responsible for the finances of the business is the

1 A) controller.

2 B) president.

3 C) vice president.

4 D) treasurer.

Which of the following is not an objective of a design group or project team charged with creating and implementing a new information system?

1 A) Securing funding for a new information system

2 B) Identifying needs to be satisfied by a new system

3 C) Developing technical specifications for a new system

4 D) Implementation of a new system

Which of the following is not one of the criteria of the design specification step of the systems approach to design?

1 A) Using a team approach in many cases

2 B) Sufficient detailed specifications for implementation process

3 C) Identification of system inputs

4 D) Strategies for producing system outputs

Which of the following is not a merchant benefit of Web commerce?

1 A) Cost savings through automated ordering

2 B) Worldwide availability of the company's products

3 C) No waiting in line for a salesperson or to obtain product information

3 C) Technical support committee

4 D) Steering committee

Which of the following information characteristics pertains to the situation when a lower-level manager receives a well-defined, narrowly focused report, while a top-level manager receives a report covering more general topics?

strategies is known as the

1 A) primary business process.

2 B) accounting information system.

3 C) value chain.

4 D) internal control process.

Which of the following is not an example of good internal control?

1 A) Having adequate records

2 B) Being sure that everyone clearly understands his or her own responsibilities

3 C) Making sure that each department is responsible for keeping its own accounting records

4 D) Having periodic physical checks (or counts) of the inventory

RFID tags include all of the following except

1 A) active tags.

2 B) passive tags.

3 C) inactive tags.

4 D) semi-passive tags.

When a management report is discretionary rather than mandatory, the

primary consideration should be

1 A) that there are benefits to be obtained by producing the report.

2 B) that the benefits obtained by producing the report exceed the cost of its production.

3 C) to minimize the cost of producing the report while maintaining minimum standards of usefulness.

4 D) to minimize the cost of producing the report while maintaining minimum standards of reliability and accuracy.

Which of the following is not a benefit of electronic data interchange (EDI)?

1 A) Electronic mail messages are interpreted by humans.

2 B) EDI eliminates paper.

3 C) EDI saves time.

4 D) EDI may allow for EFT payments to vendor accounts.

Which of the following groups would not be considered external users of the company's information?

1 A) Factory supervisors

2 B) Creditors

3 C) Investors

4 D) Labor unions

The exchange of business documents such as purchase orders and invoices

in an electronic format between the computers of separate organizations is known as

1 A) e-mail.

2 B) electronic data interchange.

3 C) computer-integrated information system.

4 D) electronic document exchange.

Internal users of reports from a company's information system might include all of the following except its

1 A) chief executive officer.

2 B) stockholders.

3 C) payroll department.

4 D) lower-level managers.

True - False Questions

The AIS benefits of information technology include automation, information organization, and communication

Good documentation means that records should be maintained by all parties involved in a transaction

1 True

2 False

Cloud computing describes the increasing trend for data processing

capabilities to be provided as a service via the Internet

FedWire is a retail EFT system used for telephone wire transfers and

payments

1 True

2 False

The process management approach aids in the management and

improvement of a company's processes in order to increase customer

satisfaction while ignoring the company's cost structure

An extended enterprise brings suppliers and customers together in order to meet customer demand while minimizing supplier costs

The essence of cloud computing is that data storage is maintained by the user

end-1 True

2 False

Accounting information systems are designed to gather and utilize

information which may cost more to provide than it is worth to the user

Microsoft sponsors the Web TrustTM seal of approval to certain Web sites that meet their security and integrity criteria

The basic goal of accounting information systems is to convert financial data into information

1 True

2 False

A company can use QR codes to provide a convenient way to direct

customers to its Web site by embedding them in advertising, such as

magazines or in-store displays

Green IT states system design should include a plan for recycling and reusing system components

1 True

2 False

Electronic data interchange (EDI) is the direct computer-to-end-user exchange

of business documents via a communications network

1 True

2 False

A steering committee consists of high-level members of user functions such

as manufacturing and marketing, as well as the head of the information

system function and several of his or her staff

1 True

2 False

Quick-response systems are essential to the total quality performance

AIS application architecture currently focuses on automating the traditional accounting cycle

1 True

2 False

Text Questions - Page 1

A(n) system manages all contact with

customers.

Answer Given

customer relation management

A group of loosely connected companies that work together to maximize the value of their economic outputs is a(n) .

Answer Given

extended enterprise

The IT benefits for AISs are , , and .

Answer Given

automation, information organization, and communication

A philosophy of design fosters a set of attitudes and an approach to systems development that consciously considers the organizational context.

A(n) information system is tailored to the strategic information needs of top-level management.

Answer Given

executive

Events related to the acquisition of goods and services from other entities and the settlement of related obligations are in the cycle; events related to the transformation of resources into goods and services are in the cycle.

Answer Given

expenditure; production

Application involves the process of ensuring the suite of

organization's applications work together in order to meet organizational goals and objectives.