Exam 1: Conceptual Foundations of Accounting Information Systems

Sam Jones has been the controller of Downtown Tires for 25 years.Ownership of the firm recently changed hands and the new owners are conducting an audit of the financial records.The audit has been unable to obtain the firm's financial statements that were prepared by Sam.While there is no evidence of wrongdoing,the auditors are not able to complete the audit.Which of the following characteristics of useful information is absent in the situation described above?

When a subsystem achieves its goals while contributing to the organization's overall goal,it is called

A value chain typically consists of five primary activities that can directly provide value to customers.The activities that help customers buy the organization's products or services represent

The AIS must include controls to ensure

Discuss the concept of a system and the issues of goal conflict and goal congruence.

Clemente Santiago has formed a business that sells carved gourmet coconuts.He has hired five employees.The most senior is Mary,who manages the carving process.Jane is the newest employee.She collects the coconuts.Joe takes calls from unhappy customers.Tom tosses finished coconuts into the sea,sending them to the wholesaler.Annie sends letters to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Jane performing?

When the AIS provides information in a timely and accurate manner,it stands as an example of

Information that is free from error or bias and accurately represents the events or activities of the organization is

Chopra,Limited,is an Indian company operating in New York state.It offers stylized,boutique public relations services to upscale retailers in quaint New England towns.A major source of revenue is a weekly newsletter that reports on current and projected tourist travel and spending patterns.Preparation of the newsletter requires study and analysis of weather conditions,economic activity,and travel costs.It is available at an annual subscription rate of $299.99.There are currently 190 subscribers.Preparation and distribution of the newsletter costs $12,000 annually.The value of information to subscribers is

Which of the following tradeoffs between characteristics of useful information is least objectionable?

A value chain typically consists of five primary activities that can directly provide value to customers.The activities that help to transform inputs into final products or services represent

Identify the party below that is not internal to the firm.

How can query languages be used to help make better decisions?

Which of the following is not an example of a common activity in an AIS?

In which transaction cycle would information for retiring long-term debt be most likely to pass between internal and external accounting information systems?

________ are examples of activities that constitute inbound logistics.

Which of the following statements below shows the contrast between data and information?

The American Institute of Certified Public Accountants (AICPA)has recognized the importance of AIS and the major impact information technology has on the area of accounting.To recognize individual CPAs who have met educational and experiential requirements in this area,the group formally created the designation known as

In Chapter 1,Figure 1-4 shows the factors that influence the design of AIS.The diagram shows a bi-directional arrow between the organizational culture and the AIS.The reason for this two-way interchange between organizational culture and AIS is

Baggins Incorporated identifies new product development and product improvement as the top corporate goals.An employee developed an innovation that will correct a shortcoming in one of the company's products.Although Baggins current Return on Investment (ROI)is 12%,the product innovation is expected to generate ROI of only 10%.As a result,awarding bonuses to employees based on ROI resulted in