Accounting Information Systems, 10th Edition Test Bank 2026–2027 | All Chapters | Verified Answers | James A. Hall

Accounting Information Systems, 10th Edition Test
Bank 2026–2027 | All Chapters | Verified Answers |
James A. Hall
All chapters covered




1

,Accounting Information Systems 10e James A. Hall (Test Bank
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All Chapters, 100% Original Verified, A+ Grade)
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Chapter 1 l




1. Information is a business resource. l l l l




*a. True l




b. Falsel




2. IT outsourcing is location-independent computing.
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a. True
*b. False l




3. Transaction processing systems convert non-financial transactions
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into financial transactions.
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a. True
*b. False l




4. Information lacking reliability may still have value.
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a. True
*b. False l




5. A balance sheet prepared in conformity with GAAP is an example of
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discretionary reporting.
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a. True
*b. False l




6. The management reporting system provides the internal financial
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information needed to manage a business.
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*a. True l




b. Falsel




7. Most of the inputs to the general ledger system come from the
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financial reporting system.
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a. True
*b. False l




8. When preparing discretionary reports, organizations can choose what
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information to report and how to present it.
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*a. True l




b. Falsel




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,9. Retrieval is the task of permanently removing obsolete or redundant
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records from the database.
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a. True
*b. False l




10. Systems development represents 80 to 90 percent of the total cost of a
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computer system.
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a. True
*b. False l




11. The database administrator is responsible for the security and
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integrity of the database.
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*a. True l




b. False l




12. Custom software is developed and maintained by enterprise resource
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planners.
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a. True
*b. False l




13. The internal auditor represents the interests of third-party
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outsiders.
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a. True
*b. False l




14. Information technology (IT) audits can be performed by both
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internal and external auditors.
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*a. True l




b. False l




15. Custom software is the most affordable systems development option.
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a. True
*b. False l




16. A database is a collection of interconnected computers and
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communications devices that allows users to communicate, access data and
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applications, and share information and resources.
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a. True
*b. False l




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, 17. Systems maintenance consumes the majority of a system’s total
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costs.
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*a. True l




b. False l




18. Cloud computing is a practice in which the organization sells its IT
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resources to a third-party outsourcing vendor then leases back IT services
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from the vendor for a contract period.
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a. True
*b. False l




19. A potential benefit of cloud computing is that the client firm does not
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need to know where its data are being processed.
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a. True
*b. False l




20. One of the greatest disadvantages of database systems is that all data
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is always available to all users.
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a. True
*b. False l




21. Under SOX legislation public accounting firms are no longer allowed to
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provide consulting services to audit clients.
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*a. True l




b. False l




22. One member of a company’s audit committee must be an independent CPA.
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a. True
*b. False l




23. Which of the following is not a business resource?
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a. raw material l




b. labor
c. information
*d. all are business resources
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