Question 1

An accounting information system requires at least one computer.

Accepted Answer

A) True 
 B)False  False

Question 2

Message left on voicemail: "Hi Nikki! Just landed at the airport.How about dinner this evening if you're available.Call me!" Which of the following characteristics of useful information is absent in the situation described above?

Accepted Answer

A) relevant 
B) reliable 
C) complete 
D) timely 
E) understandable
F)verifiable
G)accessible 
A) relevant 
B) reliable 
C) complete 
D) timely 
E) understandable
F)verifiable
G)accessible C

Question 3

A well-designed AIS can improve the decision making in an organization.Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making.

Accepted Answer

A) An AIS provides to its users an abundance of information without any filtering or condensing of such information. 
B) An AIS identifies situations requiring management action. 
C) An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action. 
D) An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making. 
A) An AIS provides to its users an abundance of information without any filtering or condensing of such information. 
B) An AIS identifies situations requiring management action. 
C) An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action. 
D) An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making. A

Question 4

What is a key decision that needs to be made with regards to selling merchandise?

Accepted Answer

A) which banking institution to use 
B) which employees to hire 
C) which public accounting firm to employ 
D) which credit cards to accept 
A) which banking institution to use 
B) which employees to hire 
C) which public accounting firm to employ 
D) which credit cards to accept

Question 5

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 Tom performing?

Accepted Answer

A) Inbound logistics 
B) Operations 
C) Outbound logistics 
D) Marketing and sales 
E) Service 
A) Inbound logistics 
B) Operations 
C) Outbound logistics 
D) Marketing and sales 
E) Service

Question 6

Identify a recent technological advance that provides an opportunity to gain a competitive advantage.

Accepted Answer

A) CVVP analysis 
B) discounted cash flows 
C) predictive analysis 
D) economic order quantity (EOQ) 
A) CVVP analysis 
B) discounted cash flows 
C) predictive analysis 
D) economic order quantity (EOQ)

Question 7

Many modern accounting software packages offer separate transaction cycle modules.What is the reason for this?

Accepted Answer

A) Every organization does not need to implement all of the available transaction cycle modules. 
B) Most businesses do not need the revenue cycle module as part of their AIS. 
C) The nature of a given transaction cycle is the same irrespective of the type of organization. 
D) A properly designed AIS does not use the concept of separate business transaction cycles to process transactions. 
A) Every organization does not need to implement all of the available transaction cycle modules. 
B) Most businesses do not need the revenue cycle module as part of their AIS. 
C) The nature of a given transaction cycle is the same irrespective of the type of organization. 
D) A properly designed AIS does not use the concept of separate business transaction cycles to process transactions.

Question 8

Arranging delivery of products to customers constitutes ________ in value chain analysis.

Accepted Answer

A) shipping 
B) inbound logistics 
C) outbound logistics 
D) delivery 
A) shipping 
B) inbound logistics 
C) outbound logistics 
D) delivery

Question 9

Identify the primary reason that it is important for a firm to identify the AIS improvements likely to yield the greatest return.

Accepted Answer

A) because business strategy directly influences AIS, but not information technology 
B) because most organizations have limited resources 
C) because a firm never wants to waste time addressing issues that are not urgent 
D) because it is expensive to improve accounting information systems 
A) because business strategy directly influences AIS, but not information technology 
B) because most organizations have limited resources 
C) because a firm never wants to waste time addressing issues that are not urgent 
D) because it is expensive to improve accounting information systems

Question 10

Which of the following is not an example of how an AIS adds value to an organization?

Accepted Answer

A) All employees at a hospital can access and update patient records from any computer terminal in the hospital. 
B) A customer service representative can find a customer's account data, purchase history, payment history, and salesperson's name while on the phone with the customer, to resolve issues quickly. 
C) Suppliers are able to access sales data directly from the point-of-sale system of a retailer and deliver inventory automatically when needed. 
D) Client tax files are encrypted and made available on the CPA firm's network to any employee with an access code. 
A) All employees at a hospital can access and update patient records from any computer terminal in the hospital. 
B) A customer service representative can find a customer's account data, purchase history, payment history, and salesperson's name while on the phone with the customer, to resolve issues quickly. 
C) Suppliers are able to access sales data directly from the point-of-sale system of a retailer and deliver inventory automatically when needed. 
D) Client tax files are encrypted and made available on the CPA firm's network to any employee with an access code.

Question 11

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?

Accepted Answer

A) Inbound logistics 
B) Operations 
C) Outbound logistics 
D) Marketing and sales 
E) Service 
A) Inbound logistics 
B) Operations 
C) Outbound logistics 
D) Marketing and sales 
E) Service

Question 12

The transaction cycle that includes product design is known as the

Accepted Answer

A) revenue cycle. 
B) expenditure cycle. 
C) production cycle. 
D) financing cycle. 
A) revenue cycle. 
B) expenditure cycle. 
C) production cycle. 
D) financing cycle.

Question 13

Updating accounts receivable is part of which transaction cycle?

Accepted Answer

A) Human resources/payroll. 
B) Expenditure. 
C) Financing. 
D) Revenue. 
A) Human resources/payroll. 
B) Expenditure. 
C) Financing. 
D) Revenue.

Question 14

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

Accepted Answer

A system is a set of two or more compone

Question 15

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.Chopra has always been able to manage to keep its newsletter operation above their breakeven point.The value of information to Chopra is

Accepted Answer

A) $236.83. 
B) $44,998.10. 
C) less than $63.16. 
D) at least $12,000. 
A) $236.83. 
B) $44,998.10. 
C) less than $63.16. 
D) at least $12,000.

Question 16

The value of information can best be determined by

Accepted Answer

A) its usefulness to decision makers. 
B) its relevance to decision makers. 
C) the benefits associated with obtaining the information minus the cost of producing it. 
D) the extent to which it optimizes the value chain. 
A) its usefulness to decision makers. 
B) its relevance to decision makers. 
C) the benefits associated with obtaining the information minus the cost of producing it. 
D) the extent to which it optimizes the value chain.

Question 17

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

Accepted Answer

A) goal conflict. 
B) information overload. 
C) goal congruence. 
D) decreased value of information. 
A) goal conflict. 
B) information overload. 
C) goal congruence. 
D) decreased value of information.

Question 18

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

Accepted Answer

A) that the AIS should not influence the values of the organizational culture. 
B) because the organization's culture influences the AIS, and likewise the AIS influences the organization's culture by controlling the flow of information within the organization. 
C) due to the transfer of managers between the two corporate elements. 
D) the AIS impacts the organization's key strategies. 
A) that the AIS should not influence the values of the organizational culture. 
B) because the organization's culture influences the AIS, and likewise the AIS influences the organization's culture by controlling the flow of information within the organization. 
C) due to the transfer of managers between the two corporate elements. 
D) the AIS impacts the organization's key strategies.

Question 19

A value chain typically consists of five primary activities that can directly provide value to customers.The activities that help to provide post-sale support to customers represent

Accepted Answer

A) service. 
B) outbound logistics. 
C) marketing and sales. 
D) operations. 
A) service. 
B) outbound logistics. 
C) marketing and sales. 
D) operations.

Question 20

Which of the following is not one of the components of an AIS?

Accepted Answer

A) internal controls and security measures 
B) people 
C) procedures and instructions 
D) hardware 
A) internal controls and security measures 
B) people 
C) procedures and instructions 
D) hardware

An accounting information system requires at least one computer.

Message left on voicemail: "Hi Nikki! Just landed at the airport.How about dinner this evening if you're available.Call me!" Which of the following characteristics of useful information is absent in the situation described above?

A well-designed AIS can improve the decision making in an organization.Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making.

What is a key decision that needs to be made with regards to selling merchandise?

Identify a recent technological advance that provides an opportunity to gain a competitive advantage.

Many modern accounting software packages offer separate transaction cycle modules.What is the reason for this?

Arranging delivery of products to customers constitutes ________ in value chain analysis.

Identify the primary reason that it is important for a firm to identify the AIS improvements likely to yield the greatest return.

Which of the following is not an example of how an AIS adds value to an organization?

The transaction cycle that includes product design is known as the

Updating accounts receivable is part of which transaction cycle?

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

The value of information can best be determined by

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

A value chain typically consists of five primary activities that can directly provide value to customers.The activities that help to provide post-sale support to customers represent

Which of the following is not one of the components of an AIS?

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Exam 1: Conceptual Foundations of Accounting Information Systems

An accounting information system requires at least one computer.

Message left on voicemail: "Hi Nikki! Just landed at the airport.How about dinner this evening if you're available.Call me!" Which of the following characteristics of useful information is absent in the situation described above?

A well-designed AIS can improve the decision making in an organization.Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making.

What is a key decision that needs to be made with regards to selling merchandise?

Identify a recent technological advance that provides an opportunity to gain a competitive advantage.

Many modern accounting software packages offer separate transaction cycle modules.What is the reason for this?

Arranging delivery of products to customers constitutes ________ in value chain analysis.

Identify the primary reason that it is important for a firm to identify the AIS improvements likely to yield the greatest return.

Which of the following is not an example of how an AIS adds value to an organization?

The transaction cycle that includes product design is known as the

Updating accounts receivable is part of which transaction cycle?

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

The value of information can best be determined by

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

A value chain typically consists of five primary activities that can directly provide value to customers.The activities that help to provide post-sale support to customers represent

Which of the following is not one of the components of an AIS?

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters