160 test bank for accounting information systems 10th edition

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160 Test Bank for Accounting Information Systems 10th Edition

Multiple Choice Questions-Page 1

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

The technological philosophy that emphasizes "customer

satisfaction" to the point of "customer obsession" is known as

1 A TQP.

2 B EDI.

3 C TQM.

4 D TQP and TQM.

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

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.

The fundamental benefits of information technology for AISs

include the following except

4 D both inventories and scheduling production.

The three general phases of systems development projects and

the order in which they occur are

1 A systems design, systems implementation, and systems analysis.

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.

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

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.

The staff position which would generally report to the treasurer

rather than to the controller is

1 A budgeting.

2 B accounts payable.

3 C credit manager.

4 D cost accounting.

When information levels within an organization are viewed as a

pyramid, strategic information is used primarily by

1 A lower-level management.

2 B top-level management.

3 C middle management.

4 D lower-level and middle management.

Which of the following is not a common transaction processing

cycle found in business organizations?

1 A Expenditure cycle

2 B Accounting cycle

3 C Production cycle

4 D Revenue cycle

Which systems permit the reprogramming of computers to

produce entirely different products in the same

manufacturing facility with the same equipment?

1 A MRP and MRP II

2 B CIMs and FMSs

3 C ESs and FMSs

4 D ERPs and MRPs

The international quality-management standard credited for

promoting the process management approach is the

1 A Six Sigma.

2 B ISA-95.

3 C ISO 9001.

4 D ISA-Y2K.

The transaction processing cycle that is concerned with the

events related to the transformation of resources into goods and services is

1 A production.

2 B revenue.

3 C financial reporting.

4 D expenditure.

Which of the statements below is false regarding extensible

business reporting language (XBRL.?

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.

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 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

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

What language facilitates business to business commerce

through the extended value chain, which includes both manufacturers and their suppliers?

1 A VCML

2 B XBRL

3 C HTML

4 D COBOL

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 user function.

3 C operations function.

4 D programming function.

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.

From an organization's viewpoint, a distinction can be drawn

between the following two broad classes of accounting information

1 A historical and future.

2 B strategic and operational.

3 C internal and external.

4 D mandatory and discretionary.

The functional subsystem of a management information system

that would likely obtain data on wage and payroll tax

summaries, benefit information, and government

regulations is called the

1 A human resources information system.

2 B manufacturing information system.

3 C financial information system.

4 D marketing information system.

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.

A complete systems solution involving one software package

and one database is referred to as

1 A ERP.

2 B MRP.

3 C SCM.

4 D DSS.

The high-level executive who supervises accounting functions

such as budgeting, billing, and payroll is known as the

1 A treasurer.

2 B controller.

3 C chief information officer.

4 D chief internal auditor.

A(n system encompasses the planning and

management of all activities involved in sourcing,

procurement, conversion, and logistics management activities.

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.

The term that best describes an information system that is

tailored to the strategic information needs of top-level management is a/an

1 A accounting information system.

2 B Outbound sales logistics

3 C Technology development

4 D Service

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 is not an example of a common

functional MIS subsystem?

1 A Decision support system

2 B Marketing information system

3 C Manufacturing information system

4 D Human resources information system

64 Free Test Bank for Accounting Information Systems

10th Edition by Bodnar Multiple Choice Page 2

Questions-Which of the following is used to ensure a high-degree of user

involvement in the control of an information systems department?

1 A Maintenance programmers

2 B Operations manager

3 C Technical support committee

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

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

The Clearing House Automated Payment System is also known

An organization's internal control process consists of how

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

Which of the following information characteristics pertains to

the situation when a lower-level manager receives a defined, narrowly focused report, while a top-level

well-manager receives a report covering more general topics?

1 A level of aggregation

2 B time horizon

3 C scope

4 D required accuracy

A company known for its use of blueprints in systems design

for clients is:

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

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.

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

The following are EDI standards except

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

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

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 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

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.

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

4 D Low overhead

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

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

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 A steering committee

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 specialized information systems would

be the most useful in providing information for routine decisions?

1 A Decision support system

2 B Expert system

3 C Executive information system

4 D Accounting information system

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

A way of viewing company activities that breaks the activities

down into components that can be individually optimized

in terms of goals and strategies is known as the:

1 A primary business process

2 B accounting information system

3 C value chain

4 D internal control process

An accounting information system plays a key role in the

internal control process, thereby helping management with its major responsibility of:

1 A managing the internal audit function

2 B stewardship

3 C global-level marketing

4 D managing the production cycle

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 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.

XBRL is a language that facilitates the exchange over the

Internet of all kinds of business documents and financial statements

In CIM systems, computers control management designed parts

of the manufacturing process

1 True

2 False

A typical CRM contains one common database in which all

departments with customer contact can access and

update

1 True

2 False

Operational transaction cycles have traditionally grouped

activities of a business into six common operational

processes

1 True

2 False

The basic goal of accounting information systems is to convert

financial data into information

Flexible manufacturing systems can be reprogrammed to

produce entirely different products

1 True

2 False

Lean manufacturing focuses on eliminating waste from the

entire value chain