Exam 1: Accounting Information Systems

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

The process of creating value for customers is the result of nine activities (five primary and four support)that taken together form a

An analysis conducted by the Institute of Management Accountants shows that the most important activities performed by corporate accountants relate to

Which of the following is an example of a strategic planning decision?

The primary consideration when producing this type of information is that its benefits exceeds its costs.

Which of the following is a primary activity in the value chain?

Goal conflict may result when

The AIS must include controls to ensure

Robinson Crusoe has formed a business that sells carved gourmet coconuts.He has hired five employees.The most senior is Friday,who manages the carving process.Monday is the newest employee.She collects the coconuts.Tuesday,as you might expect,takes calls from curstomers,oops,I mean customers,who are unhappy with their coconuts.Wednesday tosses finished coconuts into the sea,whereupon they drift to the wholesaler.Thursday sends smoke signals 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 Tuesday performing?

Identify the components of an accounting information system.

Information that does not omit important aspects of the underlying events or activities that it measures is

Data must be converted into information to be considered useful and meaningful for decision-making.There are six characteristics that make information both useful and meaningful.If information is free from error or bias and accurately represents the events or activities of the organization,it is representative of the characteristic of

An accounting information system must be able to perform which of the following tasks?

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

A needs-based strategic position involves

An access-based strategic position involves

How many components are found in an AIS?

Information is

Tri-Anything,Limited,is a British 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:

Within the value chain conceptual framework,AIS is shown as a support activity.The AIS is of value to an organization when it provides accurate and timely information to help support the five primary value chain activities.When the AIS provides information in a timely and accurate manner,it stands as an example of