Question 1

A popular fast-food chicken restaurant currently offers only fried chicken tenders and chicken sandwiches made from chicken tenders. The only sides available are bread, slaw, and fries. If the chain were to consider offering grilled chicken on their menu, what would you recommend before considering the change for a national roll-out?

Accepted Answer

A)  Determine the kitchen layout and process changes required. 
B)  Test the new product on customers in a small group of restaurants. 
C)  Plan and test the new production process. 
D)  All of these answer choices are correct.

Question 2

Maria is asked to create a document at the end of each month that displays that month's sales data across divisions. What type of output will Maria need to obtain from the information system to obtain this information?

Accepted Answer

A)  Reporting 
B)  Data analytics 
C)  Key performance indicators 
D)  Management insight

Question 3

Which of the following is an example of data analytics?

Accepted Answer

A)  A student uses Excel to calculate weights of grades and determine the grade needed on the final. 
B)  A student uses Excel to record their time spent studying for each class and performs statistical analysis on the time spent versus grade earned. 
C)  An accountant uses software to horizontally and vertically analyze financial statements to compare with prior quarters. 
D)  An accountant uses software to generate reports that contain ratios of historical financial data.

Question 4

Which of the following is a definition of output from an information system?

Accepted Answer

A)  Output is raw and unorganized data. 
B)  Output is information produced by processing data. 
C)  Output is database facts and figures. 
D)  Output is information collected from users.

Question 5

To be useful for decision making, information must have what two fundamental characteristics?

Accepted Answer

A)  Relevance and Actionability 
B)  Relevance and Faithful Representation 
C)  Reality and Faithful Representation 
D)  Reality and Actionability

Question 6

Which of the following management responsibility areas includes analyzing financial statements?

Accepted Answer

A)  Planning 
B)  Implementing 
C)  Monitoring 
D)  Changing and Improving

Question 7

Quantifiable metrics used to measure and evaluate the success of an organization based on its objectives are known as

Accepted Answer

A)  data integration metrics. 
B)  business event indicators. 
C)  key performance indicators. 
D)  data quality points.

Question 8

What kind of information do managers use to make decisions?

Accepted Answer

A)  Historical performance information 
B)  Data analytics insights 
C)  Key performance indicators 
D)  All of these answer choices are correct.

Question 9

Your organization has been reviewing information from the accounting information system based on weekly reports. You are tasked with designing a digital dashboard to display key performance indicators (KPIs) to management at your organization. Which enhancing characteristic of useful information are you improving for the business by creating a dashboard that is updated in real-time with KPIs?

Accepted Answer

A)  Verifiability 
B)  Timeliness 
C)  Understandability 
D)  Comparability

Question 10

Which of the following is NOT a data analytics skill?

Accepted Answer

A)  Clean data 
B)  Identify data 
C)  Report data 
D)  Perform data visualization

Question 11

Transaction-based accounting systems capture only

Accepted Answer

A)  nonfinancial data. 
B)  accounting business events. 
C)  relationships between business events and processes. 
D)  key performance indicators.

Question 12

Which of the following is NOT a nonfinancial business event that can be captured through the conversion processes in the information system?

Accepted Answer

A)  Design product 
B)  Production plan 
C)  Deliver goods 
D)  Package product

Question 13

Which of the following statements is FALSE?

Accepted Answer

A)  Transaction-based accounting information systems record only accounting transactions. 
B)  Transaction-based accounting information systems ignore nonfinancial data. 
C)  Transaction-based accounting information systems are no longer used in business settings. 
D)  Transaction-based accounting information systems ignore the relationships between business events and processes.

Question 14

In which of the following process categories would the termination an employee be recorded?

Accepted Answer

A)  Acquisition and Payment 
B)  Marketing, Sales, and Collection 
C)  Conversion 
D)  Transaction

Question 15

Which of the following is an input for a business that produces products?

Accepted Answer

A)  Raw materials 
B)  Production line employees 
C)  Manufacturing equipment 
D)  All of these answer choices are correct.

Question 16

Concerning data analytics skills that new accounting professionals should learn, which statement is FALSE?

Accepted Answer

A)  New accounting professionals should be able to identify data and use case for data analysis. 
B)  New accounting professionals should be able to recognize data quality issues. 
C)  New accounting professionals should be able to code in data analytic languages. 
D)  New accounting professionals should be able to perform data analysis in Excel.

Question 17

What are the primary types of business processes in a basic business model?

Accepted Answer

A)  Acquisition and Payment Processes 
B)  Conversion Processes 
C)  Marketing, Sales, and Collections Processes 
D)  All of these answer choices are correct.

Question 18

The responses to which questions lead to determining decision context?

Accepted Answer

A)  How fast and what format is the information needed? 
B)  Who will use it, and why is the information needed? 
C)  Who requested the information and what formatting is needed? 
D)  What comparability and understandability characteristics of the information are needed?

Question 19

Employers in the accounting profession, and other professions, look for candidates who are data minded. What soft skills show an employer that the candidate is data minded?

Accepted Answer

A)  Curiosity 
B)  Creative thinking 
C)  Awareness of data analytics 
D)  All of these answer choices are correct.

Question 20

Relevant information must

Accepted Answer

A)  be applicable to future events. 
B)  have confirmatory value. 
C)  have a significant impact on the decision. 
D)  All of these statements are correct.

Exam 1: Accounting As Information