Test bank for accounting information systems 10th edition

Only active RFID tags transmit signals containing digital information to Electronic data interchange EDI is the direct computer-to-end-user exchange of business documents via a communica

Test Bank for Accounting Information Systems 10th Edition

ERP II adds an Enterprise Application Suite (EAS) to aid in the communication between functional areas

Operational transaction cycles have traditionally grouped activities of a

business into six common operational processes

The director of internal auditing should report directly to the controller of the company

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

DBMS is the hands-on use of computers by end users

Only active RFID tags transmit signals containing digital information to

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

of business documents via a communications network

1 True

2 False

ANSI X.12 is a public EDI standard

A system is a collection of related resources designed to help a company achieve specified objectives

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

A typical CRM contains one common database in which all departments with customer contact can access and update

Some organizations that use computers to process transactional data must have an information system function

1 True

2 False

The operations function allows specialization in areas such as operating

systems and software and communications technology

XBRL is a language that facilitates the exchange over the Internet of all kinds

of business documents and financial statements

1 True

2 False

External users of accounting information include investors, customers,

governmental agencies, and suppliers

1 True

2 False

The functional components of a management information system (such as marketing, manufacturing, human resources, and financial) are logically independent

MRP and MRP II software was created to aid in Supply Chain Management (SCM)

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

ERPs can either be industry-specific or based around "best practices" of various sized companies

1 A) Decision support system

2 B) Marketing information system

3 C) Manufacturing information system

4 D) Human resources information system

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 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?

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

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

A(n) system encompasses the planning and management of all

activities involved in sourcing, procurement, conversion, and logistics

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) both inventories and scheduling production

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

Which systems permit the reprogramming of computers to produce entirely different products in the same manufacturing facility with the same

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

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

1 A) ERP II.

2 B) application architecture

3 C) value chain application suite

4 D) enterprise application suite

What language facilitates business to business commerce through the

extended value chain, which includes both manufacturers and their

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

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

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

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

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

Which item listed below is not considered a primary business 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 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 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

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) technical support function.

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

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

hich 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 Clearing House Automated Payment System is also known as

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

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

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

RFID tags include all of the following except

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.

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

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

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

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

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

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

is:

1 A) SAM

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

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

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

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

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

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

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

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

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

5 A systems development project consists of general phases.

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

27 The IT benefits for AISs are , , and .

28

29 Application involves the process of ensuring the suite of organization's

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

30

31 software assists management in managing inventories and scheduling

production.

32

33 In computers take control of the entire production process (CIM) but also can

be reprogrammed so the same processes can produce entirely different products.

34

35 The management approach involves the application of knowledge, skills, tools, techniques and systems to manage and improve organizational processes to better meet customers' needs and maximize profitability.

43 Enterprise suite uses a group of individual packages that work with each other

on a web browser as opposed to one large ERP software package.

44

45 The linking of applications in suite is facilitated through a .

53 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.

54

55 A common violation of the principle is the delegation of both accounting and financial responsibilities to the same individual or department.