ACCOUNTING INFORMATION
SYSTEMS 4e
Complete Multiple-Choice Study Guide
Authors: Vernon Richardson, Chengyee Chang, and Rod Smith
CHAPTER 1: ACCOUNTING
INFORMATION SYSTEMS AND FIRM
VALUE
Multiple-Choice Questions
1. (LO 1-1) Accounting information systems:
A. Are always computerized.
B. Report only financially related information.
C. Are information systems that record, process, and report on operations to provide financial
and nonfinancial information for decision-making and measurement.
D. Require a CITP designation to understand.
Answer: C
2. (LO 1-1) Which of the following is a characteristic of relevance?
A. Materiality
B. Timeliness
C. Verifiable
D. Cost to generate
Answer: A
3. (LO 1-2) Which of the following is considered mandatory information required by a
regulatory body?
A. 10-Q submission to the Securities and Exchange Commission
B. The cost to produce a Samsung Galaxy
C. The number of organic bananas sold at Whole Foods on July 28
D. The cost to build an all-new Starbucks restaurant in Shenzhen, China
Answer: A
,4. (LO 1-4) The correct order of events in the value chain is:
A. Inbound logistics → Operations → Service
B. Inbound logistics → Outbound logistics → Marketing and sales
C. Inbound logistics → Operations → Outbound logistics
D. Inbound logistics → Operations → Marketing and Sales
Answer: C
5. (LO 1-8) Which platform contributes information on direct labor to a cost accounting
platform?
A. Supply chain management system (SCMS)
B. Financial reporting system (FRS)
C. Customer relationship management platform (CRM)
D. Human resource management system (HRMS)
Answer: D
6. (LO 1-7) A supply chain:
A. Supplies jewelry chains.
B. Refers to the flow of materials, information, payments, and services.
C. Is similar in function and purpose to the value chain.
D. Does not apply to a service firm like an accounting firm.
Answer: B
7. (LO 1-7) Customer relationship management software does not include information
about:
A. Current customers
B. Prospective customers
C. Former customers
D. Current employees
Answer: D
8. (LO 1-6) An information system that measures and records accounting operations
and reports them in the financial statements is called a:
A. Financial reporting system (FRS)
B. Enterprise system (ES)
C. Manufacturing system (MS)
D. Cost accounting platform
Answer: A
9. (LO 1-3) What is the name of the position for a person responsible for determining
the information needs of a business and designing a system to meet those needs?
,A. Chief information officer
B. Measurer
C. IT auditor
D. Systems analyst
Answer: D
10. (LO 1-9) The balance sheet account most likely affected by an AIS investment in
supply chain management software would be:
A. Inventories
B. Fixed assets
C. Cash and cash equivalents
D. Unearned revenue
Answer: A
11. (LO 1-7) The software/platform that helps make sure a retail firm does not have a
stockout is:
A. Supply chain management software
B. Customer relationship management software
C. Enterprise systems
D. Human resource platforms
Answer: A
12. (LO 1-9) Data analytics performed to identify the most profitable customers would
most likely affect which income statement account?
A. Selling, general, and administrative expenses (SG&A)
B. Interest expense
C. Revenues
D. Cost of goods sold
Answer: C
13. (LO 1-7, LO 1-9) Customer relationship management platforms would generally be
considered to be an:
A. Internal business workflow
B. External business workflow
C. Interior business workflow
D. Exterior business workflow
Answer: B
14. (LO 1-3) An auditor testing internal controls would generally be considered to fill
which role with respect to accounting information systems?
, A. User
B. Manager
C. Designer
D. Evaluator
Answer: D
15. (LO 1-2) Which of these represents the proper transformation from data to decision
according to the information value chain?
A. Data → Information → Knowledge → Decision
B. Data → Knowledge → Decision → Information
C. Data → Business event → Information → Decision
D. Data → Analysis → Decision → Information
Answer: A
CHAPTER 4: ACCOUNTANTS AS
BUSINESS ANALYSTS
Multiple-Choice Questions
1. (LO 4-1) Which of the following is not a role of the accounting function in business?
A. Financial close
B. Regulatory compliance
C. Project management
D. Using IT to make finance and accounting workflows more efficient
E. All of these are roles of the accounting function
Answer: E
2. (LO 4-2) Which of the following is not an example of business workflow
documentation?
A. Business workflow structures
B. Training manuals
C. Organization charts
D. Internal audit
E. All of these are examples of business workflow documentation
Answer: D
3. (LO 4-2) Which of the following is not a purpose of business workflow
documentation?
SYSTEMS 4e
Complete Multiple-Choice Study Guide
Authors: Vernon Richardson, Chengyee Chang, and Rod Smith
CHAPTER 1: ACCOUNTING
INFORMATION SYSTEMS AND FIRM
VALUE
Multiple-Choice Questions
1. (LO 1-1) Accounting information systems:
A. Are always computerized.
B. Report only financially related information.
C. Are information systems that record, process, and report on operations to provide financial
and nonfinancial information for decision-making and measurement.
D. Require a CITP designation to understand.
Answer: C
2. (LO 1-1) Which of the following is a characteristic of relevance?
A. Materiality
B. Timeliness
C. Verifiable
D. Cost to generate
Answer: A
3. (LO 1-2) Which of the following is considered mandatory information required by a
regulatory body?
A. 10-Q submission to the Securities and Exchange Commission
B. The cost to produce a Samsung Galaxy
C. The number of organic bananas sold at Whole Foods on July 28
D. The cost to build an all-new Starbucks restaurant in Shenzhen, China
Answer: A
,4. (LO 1-4) The correct order of events in the value chain is:
A. Inbound logistics → Operations → Service
B. Inbound logistics → Outbound logistics → Marketing and sales
C. Inbound logistics → Operations → Outbound logistics
D. Inbound logistics → Operations → Marketing and Sales
Answer: C
5. (LO 1-8) Which platform contributes information on direct labor to a cost accounting
platform?
A. Supply chain management system (SCMS)
B. Financial reporting system (FRS)
C. Customer relationship management platform (CRM)
D. Human resource management system (HRMS)
Answer: D
6. (LO 1-7) A supply chain:
A. Supplies jewelry chains.
B. Refers to the flow of materials, information, payments, and services.
C. Is similar in function and purpose to the value chain.
D. Does not apply to a service firm like an accounting firm.
Answer: B
7. (LO 1-7) Customer relationship management software does not include information
about:
A. Current customers
B. Prospective customers
C. Former customers
D. Current employees
Answer: D
8. (LO 1-6) An information system that measures and records accounting operations
and reports them in the financial statements is called a:
A. Financial reporting system (FRS)
B. Enterprise system (ES)
C. Manufacturing system (MS)
D. Cost accounting platform
Answer: A
9. (LO 1-3) What is the name of the position for a person responsible for determining
the information needs of a business and designing a system to meet those needs?
,A. Chief information officer
B. Measurer
C. IT auditor
D. Systems analyst
Answer: D
10. (LO 1-9) The balance sheet account most likely affected by an AIS investment in
supply chain management software would be:
A. Inventories
B. Fixed assets
C. Cash and cash equivalents
D. Unearned revenue
Answer: A
11. (LO 1-7) The software/platform that helps make sure a retail firm does not have a
stockout is:
A. Supply chain management software
B. Customer relationship management software
C. Enterprise systems
D. Human resource platforms
Answer: A
12. (LO 1-9) Data analytics performed to identify the most profitable customers would
most likely affect which income statement account?
A. Selling, general, and administrative expenses (SG&A)
B. Interest expense
C. Revenues
D. Cost of goods sold
Answer: C
13. (LO 1-7, LO 1-9) Customer relationship management platforms would generally be
considered to be an:
A. Internal business workflow
B. External business workflow
C. Interior business workflow
D. Exterior business workflow
Answer: B
14. (LO 1-3) An auditor testing internal controls would generally be considered to fill
which role with respect to accounting information systems?
, A. User
B. Manager
C. Designer
D. Evaluator
Answer: D
15. (LO 1-2) Which of these represents the proper transformation from data to decision
according to the information value chain?
A. Data → Information → Knowledge → Decision
B. Data → Knowledge → Decision → Information
C. Data → Business event → Information → Decision
D. Data → Analysis → Decision → Information
Answer: A
CHAPTER 4: ACCOUNTANTS AS
BUSINESS ANALYSTS
Multiple-Choice Questions
1. (LO 4-1) Which of the following is not a role of the accounting function in business?
A. Financial close
B. Regulatory compliance
C. Project management
D. Using IT to make finance and accounting workflows more efficient
E. All of these are roles of the accounting function
Answer: E
2. (LO 4-2) Which of the following is not an example of business workflow
documentation?
A. Business workflow structures
B. Training manuals
C. Organization charts
D. Internal audit
E. All of these are examples of business workflow documentation
Answer: D
3. (LO 4-2) Which of the following is not a purpose of business workflow
documentation?
