Which of the following are parts of most accounting information systems?. Consider the following two statements about accounting information systems: i AIS incorporates more problems wit
Trang 1Multiple Choice Questions
1 Which of the following are parts of most accounting information systems?
a Activities and documents only
b Activities and technology only
c Documents and technology only
D Activities, documents and technology.
Answer: D Difficulty: Easy Learning objective: 1
2 Accounting information systems are designed to:
a Minimize cost
b Maximize use of information technology
C Report information to decision makers.
d Eliminate the need for paper documents
Answer: C Difficulty: Easy Learning objective: 1
3 Which of the following statements about accounting information systems is most true?
A They transform data into information.
b They transform information into data
c They transform data into decisions
d They transform information into decisions
Answer: A Difficulty: Easy Learning objective: 1
4 Accounting information systems:
a Emphasize that the areas of accounting (financial, tax and so on) are
separate and unrelated
b Focus on problems that have deterministic answers
C Is an important foundation for the study of auditing.
d Is the most important area of accounting study
Answer: C Difficulty: Easy Learning objective: 2
Trang 25 AIS study focuses on:
A Developing critical thinking and judgment skills.
b Finding the "one right answer" to a problem
c Identifying deterministic solutions that can be applied universally
d Computers and other forms of information technology
Answer: A Difficulty: Easy Learning objective: 2
6 The study of accounting information systems incorporates knowledge from:
a Management and finance only
b Management and information systems only
c Finance and information systems only
D Management, finance and information systems.
Answer: D Difficulty: Easy Learning objective: 2
7 Consider the following two statements about accounting information systems: (i) AIS incorporates more problems with deterministic solutions than other areas of accounting (ii) AIS is more integrative than other areas of accounting Which of the statements is/are true?
a i only
B ii only.
c Both i and ii
d Neither i nor ii
Answer: B Difficulty: Easy Learning objective: 3
8 Which of the following links the study of accounting information systems with the study of intermediate accounting?
A Discussion of the FASB Conceptual Framework.
b An emphasis on finding one right answer to every problem
c No need for judgment or decision making
d Memorizing the standards for preparing financial statements
Answer: A Difficulty: Easy Learning objective: 3
9 _ in an accounting information system helps promote _ in the financial statements
a Documents, accuracy
B Internal controls, reliability.
c Information technology, matching
Trang 3d Data, relevance.
Answer: B Difficulty: Easy Learning objective: 3
10 A typical accounting information system comprises _ parts
a Three
b Four
C Five.
d Six
Answer: C Difficulty: Easy Learning objective: 4
11 Accounting information systems typically incorporate which of the following: (i) inputs, (ii) outputs, (iii) storage
a i and ii only
b ii and iii only
c i and iii only
D i, ii, and iii.
Answer: D Difficulty: Easy Learning objective: 4
12 In an accounting information system, "inputs" often come in the form of:
A Source documents.
b Financial statements
c Computer reports
d Internal controls
Answer: A Difficulty: Easy Learning objective: 4
13 According to the text, information about accounting information systems on the Internet falls into _ main groups
a Two
B Three.
c Four
d Five
Answer: B Difficulty: Easy Learning objective: 5
14 What type of information involves paying a fee to have it published on the Internet?
A Sponsored/commercial.
Trang 4b Practitioner.
c Scholarly
d Relevant
Answer: A Difficulty: Easy Learning objective: 5
15 Evaluating information reliability is part of:
a Information relevance
b Information overload
C Information literacy.
d Information transformation
Answer: C Difficulty: Easy Learning objective: 5
16 Accounting information systems incorporate interrelated activities such as:
a Debiting and crediting accounts
b Developing and solving problems with one right answer
C Buying and selling inventory.
d Suggesting new elements and new levels for the conceptual framework
C Either paper-based or electronic.
d Neither paper-based nor electronic
A i only.
b ii only
c Both i and ii
d Neither i nor ii
Answer: A Difficulty: Learning objective: 1
Trang 519 Which of the following best demonstrates the relationship between accounting
information systems and other areas of accounting?
a Tax accountants have to create budgets
b Auditors often prepare tax returns for their clients
C Virtually all areas of accounting involve inputs, processes, outputs, storage and internal controls.
d Accounting information systems is the most important area of accounting
A Deciding which piece of software to adopt as an AIS processing tool.
b Determining whether to debit or credit cash
c Presenting assets on the balance sheet in order of their liquidity
d Preparing a statement of cash flows
a i only
b ii only
c Both i and ii
D Neither i nor ii.
Answer: D Difficulty:
Medium
Learning objective: 2
22 Problems in accounting information systems are often less likely to have deterministic
answers than problems in other areas of accounting Which of the following questions has a deterministic answer?
a Should AIS documents be paper or electronic?
B What is the balance in cash as of August 19, 2006?
c What are the costs and benefits of using information technology in the AIS?
d At what point does an amount become "material" as the term is defined in the conceptual framework?
Trang 6Answer: B Difficulty:
Medium
Learning objective: 3
Trang 723 Which of the following do all areas of accounting have in common?
A Providing information for decisions.
b Focusing on debits and credits
c Preparing financial statements
d Minimizing income taxes
b ii and iii only
c i and iii only
d i, ii and iii
Answer: A Difficulty:
Medium
Learning objective: 4
27 Internal controls in an accounting information system help promote information
integrity Which of the following best explains the concept of information integrity?
Trang 8a Financial statements are subject to audit.
b Users can rely on the financial statements as the sole basis for decisions
C The information in AIS outputs is reliable.
d Accounting information systems that incorporate computer software are more reliable than paper-based systems
Answer: C Difficulty:
Medium
Learning objective: 4
28 As the term is used in information literacy, "currency" means:
a Information over one year old should not be used for decisions
b Financial information is more important than non-financial information
C Decision makers should pay attention to publication dates.
d Financial statements should be converted to US dollars whenever possible
a Elements of financial statements
b Basic parts of an accounting information system
C Computer security techniques.
d Purpose of accounting
Answer: C Difficulty:
Medium
Learning objective: 5
31 Which of the following is the best example of "information" as the term is used in
"accounting information systems?"
Trang 9a Rules of debit and credit.
b ii and iii only
C i and iii only.
cost-A Translating financial statements into six major global languages.
b Giving every member of the accounting staff access to a network
c Using debits and credits to record transactions
d Converting financial statements prepared in one currency to another currency
Answer: A Difficulty:
Medium
Learning objective: 1
34 Which of the following best illustrates why accounting information systems is an
important area of study for future accountants?
a Making journal entries
b Preparing financial statements
c Memorizing the rules of debit and credit
D Coping with uncertainty.
Answer: D Difficulty:
Medium
Learning objective: 2
Trang 1035 Studying accounting information systems is important because it helps future
accountants develop critical thinking skills and professional judgment Which of the
following situations involves the use of professional judgment: (i) developing sales budgets, (ii) printing financial statements from a computer program, (iii) evaluating internal controls
a i and ii only
b ii and iii only
C i and iii only.
d i, ii and iii
Answer: C Difficulty:
Medium
Learning objective: 2
36 Which of the following questions is most likely to result in a deterministic answer?
A How many units of inventory are on hand as of August 19, 2006?
b Which inventory items should we continue to sell?
c Which inventory items should be discontinued next year?
d What is the expected gross profit for 2007?
b ii and iii only
c i and iii only
D i, ii and iii.
Answer: D Difficulty:
Medium
Learning objective: 3
Trang 1139 The cost/benefit constraint mentioned in the FASB conceptual framework is important in all areas of accounting Which of the following is a cost that should be considered in many AIS tasks?
a Producing financial statements more quickly
b Basing decisions on more accurate information
C Considering the effects of decisions on human behavior.
d Memorizing the rules for preparing financial statements
Medium Learning objective: 4
41 Source documents in an accounting information system include sales invoices,
purchase orders and:
A Bank statements.
b Reports of projected stock prices
c Evaluations of accounting staff
d Currency and coin
Trang 1243 The web site for Dell Computers is an example of _ information
a This web site was last updated on August 19, 2006
b Contact Bumble Beasley if you need a consultant on this topic
C This web site is a work in progress.
d The content of this site is sponsored by XYZ Corporation
Answer: C Difficulty:
Medium
Learning objective: 5
46 Which of the following is a fact about accounting information systems?
a They always involve computers
b They do not report information unless it can be expressed financially
c They provide the most important information for decision making
D They involve interrelated parts.
Answer: D Difficulty: Hard Learning objective: 1
Trang 13The following scenario relates to Questions 47 through 50:
Sebastian wrote a check to pay a supplier's invoice The check had to be signed by twocompany officers and was later part of a monthly bank reconciliation The canceled check
was filed under the supplier's name.
47 The inputs mentioned in the preceding scenario are
A The check and the invoice.
b The check and the bank reconciliation
c The bank reconciliation and the file
d The file and the supplier's invoice
Answer: A Difficulty: Hard Learning objective: 4
48 The internal controls mentioned in the preceding scenario are:
a The dual signatures on the check and the file
b The bank reconciliation and the file
C The dual signatures on the check and the bank reconciliation.
d The supplier's invoice and the bank reconciliation
Answer: C Difficulty: Hard Learning objective: 4
49 In the preceding scenario, _ was both an input and an output
A The invoice.
b The supplier's name
c The two signatures
d Sebastian
Answer: A Difficulty: Hard Learning objective: 4
50 Filing the check under the supplier's name is an example of:
Trang 14accounting information systems:
An accounting information system is a set of _ _, _ and _ designed to collect _, process it and report _ to a _ group of internal and external _ in organizations
Answer:
An accounting information system is a set of interrelated activities, documents and
technologies designed to collect data, process it and report information to a diverse group of internal and external decision makers in organizations
Difficulty: Easy Learning objective: 1
52 Parts of an AIS - Match each item on the right with the most appropriate question on the left, based on the structure of most accounting information systems
a What processes are necessary to promote information integrity in the AIS?
b Under what conditions can/should data be destroyed?
c If computer-based tools are used in the AIS, which software and hardware packages should beimplemented?
d How many copies of each source document will be required?
e Beyond the general-purpose financial statements, what other reports will managers and system users need?
Solution: 1 D; 2 A; 3 E; 4 C; 5 B
Difficulty: Easy Learning objective: 4
53 AIS and other areas of accounting - Indicate whether each of the following statements regarding accounting information systems is (a) always true, (b) sometimes true or (c) never true You do not need to write a justification for the statements that are sometimes true
1 A well designed accounting information system can help fulfill some elements of the FASBConceptual Framework
2 Accounting information systems problems are often open-ended
3 All areas of accounting can involve problems with deterministic responses
Trang 154 All problems in accounting information systems involve every area of accounting.
5 Because many AIS problems don't have one right answer, those same problems don't have any wrong answers either
6 Other areas of accounting, such as financial and managerial accounting, do not involve open-ended problems
7 Problems in accounting information systems do not have deterministic responses
8 Solutions to problems in AIS and other areas of accounting always involve the use of information technology
9 The general-purpose financial statements link accounting information systems with other areas of accounting
10 The study of internal controls can link accounting information systems with other areas of accounting
Solution: 1 yes; 2 yes; 3 no; 4 yes; 5 yes; 6 no; 7 no; 8 no; 9 no; 10 no
Difficulty:
Medium
Learning objective: 2
Trang 1655 Information evaluation criteria - Bumble Beasley took two introductory accounting courses
as part of his college degree; his major was engineering He started his own engineering consulting company and later published an article in an engineering journal titled "The Relationship between Engineering and the FASB Conceptual Framework." The article, which contained no references to other documents, discussed five elements of financial statements and referred readers to Bumble's web site His web site featured an "under construction" icon; its primary purpose was to obtain consulting clients for Bumble's firm
Based on the preceding scenario, identify one phrase/sentence that violates each of the following criteria for evaluating information For example, "discussed five elements of financial statements" violates the "accuracy" criterion since the conceptual framework discusses eight elements