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