, Chapter 1
Accounting Information Systems: An Introduction
Answer Key
True / False Questions
1. Accounting and Finance is a primary activity in the value chain.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Describe how business processes affect the firm’s value chain.
Topic: The Value Chain and Accounting Information Systems
2. Accounting Information Systems at this date are all computerized.
Answer: FALSE
Learn
3. Business value includes all those items, events and interactions that determine the financial health and
well-being of the firm.
Answer: TRUE
4. The Certified Information Technology Professional (CITP) is a professional designation for those with a
broad range of technology knowledge and does not require a CPA.
Answer: FALSE
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain certifications related to accounting information
systems
Topic: Role of Accountants in Accounting Information Systems
5. The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those
performing IT audits.
Answer: TRUE
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
, AACSB: Reflective Thinking AICPA BB: Industry
AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain certifications related to accounting information
systems
Topic: Role of Accountants in Accounting Information Systems
6. Information is defined as being data organized in a meaningful way that is useful to the user.
Answer: TRUE
Learn
7. Data is defined as being information organized in a meaningful way that is useful to the user.
Answer: FALSE
Learn
8. A systems analyst analyzes a business problem that might be addressed by an information system and
recommends software or systems to address that problem.
Answer: TRUE
9. A value chain is defined as the flow of materials, information, payments, and services from customer to
supplier.
Answer: FALSE
Le
10. Relevant information is that information that is free from bias and error.
Answer: FALSE
Learning Objective: 01-01 Def
11. The characteristics of relevant information include predictive value, feedback value and timeliness.
Answer: TRUE
Learning Objective: 01-01 De
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
, 12. The characteristics of reliable information are that the information is verifiable, without bias and timely.
Answer: FALSE
Learning Objective: 01-01 Defi
13. Information overload is defined as the difficulty a person faces in understanding a problem and making
a decision as a consequence of too much information.
Answer: TRUE
Learn
14. The main financial benefit of Customer Relationship Management practices reduces the cost of goods
sold.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices.
Topic: AIS, Firm Profitability, and Stock Prices
15. An efficient Enterprise System can significantly lower the cost of support processes included in sales,
general, and administrative expenses.
Answer: TRUE
16. An accounting information system (AIS) is defined as being an information system that records,
processes and reports on transactions to provide financial and nonfinancial information for decision
making and control.
Answer: TRUE
Learning Objective: 01-01 De
17. An enterprise system is a centralized database that collects data from throughout the firm. This
includes data from orders, customers, sales, inventory and employees.
Answer: TRUE
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Accounting Information Systems: An Introduction
Answer Key
True / False Questions
1. Accounting and Finance is a primary activity in the value chain.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Describe how business processes affect the firm’s value chain.
Topic: The Value Chain and Accounting Information Systems
2. Accounting Information Systems at this date are all computerized.
Answer: FALSE
Learn
3. Business value includes all those items, events and interactions that determine the financial health and
well-being of the firm.
Answer: TRUE
4. The Certified Information Technology Professional (CITP) is a professional designation for those with a
broad range of technology knowledge and does not require a CPA.
Answer: FALSE
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain certifications related to accounting information
systems
Topic: Role of Accountants in Accounting Information Systems
5. The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those
performing IT audits.
Answer: TRUE
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
, AACSB: Reflective Thinking AICPA BB: Industry
AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain certifications related to accounting information
systems
Topic: Role of Accountants in Accounting Information Systems
6. Information is defined as being data organized in a meaningful way that is useful to the user.
Answer: TRUE
Learn
7. Data is defined as being information organized in a meaningful way that is useful to the user.
Answer: FALSE
Learn
8. A systems analyst analyzes a business problem that might be addressed by an information system and
recommends software or systems to address that problem.
Answer: TRUE
9. A value chain is defined as the flow of materials, information, payments, and services from customer to
supplier.
Answer: FALSE
Le
10. Relevant information is that information that is free from bias and error.
Answer: FALSE
Learning Objective: 01-01 Def
11. The characteristics of relevant information include predictive value, feedback value and timeliness.
Answer: TRUE
Learning Objective: 01-01 De
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
, 12. The characteristics of reliable information are that the information is verifiable, without bias and timely.
Answer: FALSE
Learning Objective: 01-01 Defi
13. Information overload is defined as the difficulty a person faces in understanding a problem and making
a decision as a consequence of too much information.
Answer: TRUE
Learn
14. The main financial benefit of Customer Relationship Management practices reduces the cost of goods
sold.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices.
Topic: AIS, Firm Profitability, and Stock Prices
15. An efficient Enterprise System can significantly lower the cost of support processes included in sales,
general, and administrative expenses.
Answer: TRUE
16. An accounting information system (AIS) is defined as being an information system that records,
processes and reports on transactions to provide financial and nonfinancial information for decision
making and control.
Answer: TRUE
Learning Objective: 01-01 De
17. An enterprise system is a centralized database that collects data from throughout the firm. This
includes data from orders, customers, sales, inventory and employees.
Answer: TRUE
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
