AIS Test 1 Exam Questions and Answers 100% Correct Graded A+ 2026/27
Which of the following is not an attribute of useful information?
A. Bias
B. Verifiability
C. Predictive value
D. Feedback value - A. Bias
Which of the following is usually the primary objective when creating mandatory information?
A. Increase stock price.
b. Minimize cost
c. ensure proper controls over business processes.
d. improve business decisions. - b. minimize cost
Bob's manager complains that Bob suffers from "Analysis Paralysis;" that is, he spends too much
time reviewing endless reports and is reluctant to make decisions. Bob most likely suffers
from_____.
a. information overload
b. discretionary information
c. data redundancy
d. data gridlock - a. information overload
,Which of the following are considered to be mandatory information required by a regulatory
body?
a. financial reports for the Securities and Exchange Commission
b. the cost to build an all-new Starbucks in Abu Dhabi.
c. the amount of taxes saved by a merger
d. the total dollar value of fireworks that are sold on July 4 - a. financial reports for the
SEC.
The Sarbanes-Oxley Act of 2002 requires that a company's attest auditors be able to perform
which of the following activities?
a. evaluate the internal controls in an AIS
b. Assess the value of a company's IT assets
c. take over the company's AIS if necessary
d. design and implement the controls used in the AIS - A. evaluate the internal controls in
an AIS
Which of the following is not a primary activity in the value chain?
a. outbound logistics.
b. marketing
,c. inbound logistics.
d. information technology - d. information technology
One of the most important ways that ERPs benefit organizations and their business processes is:
a. current information is made available to all users involved in the activities and decisions
associated with a company's business processes.
b. information is stored in many specialized, distributed databases that each serve separate
business processes.
c. preventing external business partners from accessing the organization's data.
d. reducing the amount of time to complete business processes by eliminating all controls
associated with the processes. - a. current information is available to all users involved in
the activities and decisions associated with a company's business processes.
Effective use of Supply Chain Management software is generally expected to provide all of the
following benefits except:
a. reduced inventory carrying costs
b. lower production costs
c. lower payroll costs.
d. better communication with suppliers - c. lower payroll costs
, A dental practice implemented an upgrade to its AIS that provides the dentists with daily and
weekly patient and financial summaries. The practice's upgrade is an example of which IT
strategic role?
a. automate
b. transform.
c. informate - up
d. informate - down - c. informate - up
The income statement account most likely affected by an AIS investment in customer
relationship management (CRM) would be:
Revenues.
Cost of Goods Sold.
Unearned Revenue.
Selling, General and Administrative Expenses. - Revenues
Which of the following is not a Business Management Support role of the Accounting/Finance
Function in Business?
Management information.
Customer support.
Which of the following is not an attribute of useful information?
A. Bias
B. Verifiability
C. Predictive value
D. Feedback value - A. Bias
Which of the following is usually the primary objective when creating mandatory information?
A. Increase stock price.
b. Minimize cost
c. ensure proper controls over business processes.
d. improve business decisions. - b. minimize cost
Bob's manager complains that Bob suffers from "Analysis Paralysis;" that is, he spends too much
time reviewing endless reports and is reluctant to make decisions. Bob most likely suffers
from_____.
a. information overload
b. discretionary information
c. data redundancy
d. data gridlock - a. information overload
,Which of the following are considered to be mandatory information required by a regulatory
body?
a. financial reports for the Securities and Exchange Commission
b. the cost to build an all-new Starbucks in Abu Dhabi.
c. the amount of taxes saved by a merger
d. the total dollar value of fireworks that are sold on July 4 - a. financial reports for the
SEC.
The Sarbanes-Oxley Act of 2002 requires that a company's attest auditors be able to perform
which of the following activities?
a. evaluate the internal controls in an AIS
b. Assess the value of a company's IT assets
c. take over the company's AIS if necessary
d. design and implement the controls used in the AIS - A. evaluate the internal controls in
an AIS
Which of the following is not a primary activity in the value chain?
a. outbound logistics.
b. marketing
,c. inbound logistics.
d. information technology - d. information technology
One of the most important ways that ERPs benefit organizations and their business processes is:
a. current information is made available to all users involved in the activities and decisions
associated with a company's business processes.
b. information is stored in many specialized, distributed databases that each serve separate
business processes.
c. preventing external business partners from accessing the organization's data.
d. reducing the amount of time to complete business processes by eliminating all controls
associated with the processes. - a. current information is available to all users involved in
the activities and decisions associated with a company's business processes.
Effective use of Supply Chain Management software is generally expected to provide all of the
following benefits except:
a. reduced inventory carrying costs
b. lower production costs
c. lower payroll costs.
d. better communication with suppliers - c. lower payroll costs
, A dental practice implemented an upgrade to its AIS that provides the dentists with daily and
weekly patient and financial summaries. The practice's upgrade is an example of which IT
strategic role?
a. automate
b. transform.
c. informate - up
d. informate - down - c. informate - up
The income statement account most likely affected by an AIS investment in customer
relationship management (CRM) would be:
Revenues.
Cost of Goods Sold.
Unearned Revenue.
Selling, General and Administrative Expenses. - Revenues
Which of the following is not a Business Management Support role of the Accounting/Finance
Function in Business?
Management information.
Customer support.
