a) An AIS must be computerized to be useful
b) An AIS always produces useful information
c) An AIS always produces financial information
d) none of these
2.) Which of the following is true about the terms “data” and “information” within the context of Chapter 1?
a) The terms are exactly the same
b) The terms are always exact opposites
c) Some “data” can also be “information”
d) none of these
3.) Most AISs perform all of these functions except:
a) Collect raw accounting data
b) Store accounting data for future uses
c) Process data into useful information
d) AISs perform all of these functions
4.) Which of the following is one of the five interacting components of an accounting information system?
a) Fuzzy logic
b) Testing
c) Certification
d) Procedures
e) Internet
5.) A computer network spanning regional, national, or global areas best describes which of the following?
a) LAN
b) WAN
c) ESPN
d) DSL
e) ISDN
6.). Documentation includes:
a) All flowcharts, narratives, and other written communications associated with the information system
b) All written communications associated with an accounting information system except flowcharts and data flow diagrams
c) All flowcharts, narratives, and other written communications associated with an accounting information system, except for program flowcharts, decision tables, and pseudocode
d) Flowcharts and data flow diagrams only
7.) A system flowchart is a block diagram that:
a) Is used only by auditors
b) Is used primarily when document flowcharts cannot be used
c) Depicts the flow of computer systems in an organization
d) Depicts the flow of data through a computerized accounting information system
8.) The financial accounting cycle ends with:
a) The production of financial statements
b) Closing journal entries
c) The production of an adjusted trial balance
d) Development of cash forecasts
9.). Which of the following is not usually a design consideration in coding systems?
a) Consistency
b) Standardization
c) Government regulation
d.) Plans for future expansion
10.) The primary objective of a manufacturing organization’s production process is to:
a) Maintain inventories at a zero level
b) Convert raw materials into finished goods as efficiently as possible
c) Make sure that there are no product defects
d) Maintain the documentation and report on an organization’s manufacturing process
11.) Which of the following is not a concern of the financing process?
a) Effective cash management
b) Optimizing an organization’s cost of capital
c) Minimizing an organization’s borrowings
d) Projecting cash flows
12.) Business process reengineering efforts sometimes fail because:
a) Management gets too involved in the process
b) Management is too optimistic regarding its expectations from its implementation
c) Management support can never overcome employee resistance
d) Employees will never accept change
13.) Resource Management Process includes which of the following?
a) Human resource management and fixed asset management
b) Human resource management, inventory management, and fixed asset management
c) Human resource management only
d) Personnel management, payroll management, and fixed asset management
14.) All of these are reasons why we think that computer crime is rising except:
a) Some Internet web sites now instruct users how to perform certain types of computer abuse
b) More people now know how to use computers
c) Computer usage continues to grow
d) all of these are reasons
15.) Thwarting computer abuse can be enhanced by all of the following except:
a) Enlisting top-management support
b) Increasing employee awareness
c) Allowing only 10% of employees access to computers
d) Identifying computer criminals
16.) Three objectives of a company’s internal control system should be safeguarding assets, checking the accuracy and reliability of accounting data, and promoting operational efficiency. A fourth objective of a company’s internal control system should be:
a) Preventing embezzlement of assets
b) Encouraging adherence to prescribed managerial policies
c) Avoiding the payment of overtime to company employees
d) Revising standards for production costs on a weekly basis
17.) The control environment is a component of a company’s internal control system that:
a) Influences the control awareness of a company’s employees
b) Stresses the development of control procedures in a company
c) Directly affects the accuracy and reliability of a company’s accounting data
d) Can be ignored when establishing a company’s internal control system
18.) The principal function of an accounting system's computerized controls is:
a) Detecting computer frauds
b) Preventing computer frauds
c) Encouraging programmer honesty
d) none of the above
19.) When a company is setting up its accounting information system, it is important for management to select:
a) A standard set of computer control mechanisms
b) Only those controls which appear to serve its needs
c) Controls whose benefits exceed their costs
d) b and c only
20.) The four phases of the systems development life cycle end with this phase:
a) Analysis
b) Design
c) Implementation, follow-up, and maintenance
d) Development
21.) According to the chapter, which of these comes closest in meaning to the term “systems approach?”
a) Narrow point of view
b) Broad point of view
c) Focus on achieving those goals important to computerized systems
d) Focus first and foremost on computerization
22.) The primary purpose of an internal audit is:
a) To verify the accuracy of a firm’s financial statements
b) To punish employees for inefficient performance
c) To meet the requirements of the accounting profession
d) To ascertain employee adherence to organizational policies and procedures
23.) A computerized AIS is harder to audit than a manual system for all of the following reasons except:
a) The file information is not human readable
b) The volume of transaction records and master file records is usually much larger in computerized systems than in manual systems
c) An audit trail does not exist in a computerized AIS
d) Computerized systems often use remote real-time data processing, thus complicating the tracing of transaction records to their sources
24.) An advantage of an extranet is that:
It can disseminate information corporate-wide
It can be accessed by selected trading partners
Users can employ common web browsers to access information in them
all of the above
25.) Those companies which prefer VANs to the Internet for implementing EDI do so for what main reason?
a) Cost - VANs are cheaper than the Internet
b) Speed - VANs are faster than the Internet
c) Security - VANs are thought to be more secure
d) Convenience - VANs are everywhere
26.) In the REA framework, which of these would be recorded as an “event?”
a) Hiring a new president of the company
b) Taking an initial sales order from a customer
c) Buying a piece of equipment for cash
d) all of these would be recorded as events
27.) In the REA framework, an account receivable would be classified as a(n):
a) Asset
b) Event
c) Resource
d) none of these
28.) In the context of databases, the term data redundancy refers to:
a) Storing the same information in several records
b) Repeating data on multiple reports
c) Using foreign keys which duplicate the values of primary keys
d.) all of these are possible examples of data redundancy
29.) A disadvantage of database management systems is that:
a) They are not flexible
b) They cannot be implemented on microcomputers
c) They rarely support file inquiries
d) They are often machine dependent (e.g., not all DBMSs can run on all types of computers)
30.) The purpose of an input mask is to:
a) Disguise data when it is first input into a database
b) Transform data from alphabetic to numeric formats
c) Help users avoid data input errors
d) Hide sensitive data such as passwords onscreen
