, ACCOUNTING INFORMATION SYSTEMS/2e
TURNER / WEICKGENANNT
Test Bank: CHAPTER 1: Introduction to AIS
1NOTE: All new or adjusted questions are in red. New questions are identified by the letter A as part of the question
number; adjusted questions are identified by the letter X as part of the question number.
End of Chapter Questions:
1. When a company receives returned goods from a customer, the business process to accept the return would most
likely be a(n):
A. Administrative process
B. Conversion process
C. Expenditure process
D. Revenue process
2. Which of the following is least likely to be an output of the accounting information system?
A. A check
B. A report
C. An invoice
D. A bar code
3. Which of the following is not true of the supply chain?
A. The supply chain includes vendors.
B. The supply chain excludes customers.
C. The supply chain includes information flows.
D. The supply chain include secondary suppliers.
4. Which of the following is not an objective of IT enablement?
A. Increased accuracy of data
B. Reduced cost
C. Reduced security problems
D. Increased efficiency
5. The correct order of the computer data hierarchy is:
A. Byte, bit, record, field, file, database
B. Bit, byte, record, field, file, database
C. Bit, byte, field, record, file, database
D. Bit, byte, field, record, database, file
6. The process of searching for identifiable patterns in data is called:
A. Sequential processing
B. Data warehousing
C. Data mining
D. Real-time processing
7. An IT enabled system for purchasing that is an “invoice-less” system is called a(n):
A. Automated matching system
B. Evaluated receipt settlement
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, C. E-payables
D. Point of sale system
8. The COSO report written for the purpose of assisting managers in the challenge of managing risk in their
organization is entitled:
A. Internal Control – Integrated Framework
B. Enterprise Risk Management – Integrated Framework
C. Corporate Governance Guidance
D. IT Governance Guidance
9. Accountants have some form of use of the AIS in all but which role?
A. User
B. Programmer
C. Auditor
D. Designer
10. Which of the following is not true of unethical behavior?
A. The only category of unethical behavior for accountants is inflating revenue.
B. Accountants are often pressured to help commit or coverup unethical behavior.
C. Hacking is an unethical behavior that accountants should be concerned about.
D. An accounting information system can be used to cover up unethical behavior.
ANSWERS TO QUESTIONS 1 - 10 (FROM THE TEXTBOOK)
1. D 6. C
2. D 7. B
3. B 8. A
4. C 9. B
5. C 10. A
TEST BANK – CHAPTER 1 – MULTIPLE CHOICE
11. A prescribed sequence of work steps preformed in order to produce a desired result for the organization is called
a(n):
A. Accounting Information System
B. Business Process
C. Financial Transaction
D. Capital Transaction Process
12. The process that must identify the transactions to be recorded, capture all the important details of the
transactions, properly process the transaction details, and provide reports is termed the:
A. Revenue Process
B. Expenditure Process
C. Accounting Information System
D. Business Process
13. An accounting information system serves many functions - which of the following is NOT one of those functions?
A. Capture the details of a transaction
B. Implement the start of a transaction
C. Provide reports of transactions
D. Process the transactions details into appropriate accounts
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, 14. The proper order of activity in an accounting information system would be as follows:
A. Capture, Record, Process, Report
B. Process, Record, Capture, Report
C. Capture, Process, Report, Record
D. Record, Capture, Process, Report
15. Which of the following is not one of the general types of business processes identified by the textbook?
A. Revenue Processes
B. Expenditure Processes
C. Conversion Processes
D. Human Resource Processes
16. Which of the following statements, related to business processes, is false?
A. Each business process has a direct effect on the financial status of the organization.
B. A business process is initiated by a particular kind of event.
C. A business process has a well-defined beginning and end.
D. Each business process is usually completed in a relatively short period.
17. Which of the following is least likely to be part of an accounting information system function?
A. Record the accounting data in the appropriate records
B. Generation of data to be part of the information system.
C. Process the detailed accounting data.
D. Report the summarized accounting data.
18. Work steps that are internal controls within the business process would include:
A. Using an electronic register to record all sales transactions.
B. Combining both manual and computer based records.
C. Reconciling a cash register at the end of each day.
D. Preparation of internal reports to monitor the performance of a specific department.
19. Five different components of the accounting information system were presented in the textbook. Which of the
following is not one of those components?
A. Work steps within a business process intended to capture accounting data as the business process occurs.
B. Work steps that are internal controls within the business process to safeguard assets and to ensure the
accuracy and completeness of the data.
C. Work steps that generate both internal and external reports.
D. Work steps to assure that all business processes are recorded using computer-based procedures.
20. Output from an accounting information system would include:
A. Checks to vendors
B. Invoices from vendors
C. Customer statements
D. Purchase orders
21. The entities, processes, and information flows that involve the movement of materials, funds, and related
information through the full logistics process, from the acquisition of raw materials to the delivery of the finished
produces to the end use is a set of linked activities referred to as:
A. Management Information System
B. Supply Chain
C. Accounting Information System
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TURNER / WEICKGENANNT
Test Bank: CHAPTER 1: Introduction to AIS
1NOTE: All new or adjusted questions are in red. New questions are identified by the letter A as part of the question
number; adjusted questions are identified by the letter X as part of the question number.
End of Chapter Questions:
1. When a company receives returned goods from a customer, the business process to accept the return would most
likely be a(n):
A. Administrative process
B. Conversion process
C. Expenditure process
D. Revenue process
2. Which of the following is least likely to be an output of the accounting information system?
A. A check
B. A report
C. An invoice
D. A bar code
3. Which of the following is not true of the supply chain?
A. The supply chain includes vendors.
B. The supply chain excludes customers.
C. The supply chain includes information flows.
D. The supply chain include secondary suppliers.
4. Which of the following is not an objective of IT enablement?
A. Increased accuracy of data
B. Reduced cost
C. Reduced security problems
D. Increased efficiency
5. The correct order of the computer data hierarchy is:
A. Byte, bit, record, field, file, database
B. Bit, byte, record, field, file, database
C. Bit, byte, field, record, file, database
D. Bit, byte, field, record, database, file
6. The process of searching for identifiable patterns in data is called:
A. Sequential processing
B. Data warehousing
C. Data mining
D. Real-time processing
7. An IT enabled system for purchasing that is an “invoice-less” system is called a(n):
A. Automated matching system
B. Evaluated receipt settlement
1-1
, C. E-payables
D. Point of sale system
8. The COSO report written for the purpose of assisting managers in the challenge of managing risk in their
organization is entitled:
A. Internal Control – Integrated Framework
B. Enterprise Risk Management – Integrated Framework
C. Corporate Governance Guidance
D. IT Governance Guidance
9. Accountants have some form of use of the AIS in all but which role?
A. User
B. Programmer
C. Auditor
D. Designer
10. Which of the following is not true of unethical behavior?
A. The only category of unethical behavior for accountants is inflating revenue.
B. Accountants are often pressured to help commit or coverup unethical behavior.
C. Hacking is an unethical behavior that accountants should be concerned about.
D. An accounting information system can be used to cover up unethical behavior.
ANSWERS TO QUESTIONS 1 - 10 (FROM THE TEXTBOOK)
1. D 6. C
2. D 7. B
3. B 8. A
4. C 9. B
5. C 10. A
TEST BANK – CHAPTER 1 – MULTIPLE CHOICE
11. A prescribed sequence of work steps preformed in order to produce a desired result for the organization is called
a(n):
A. Accounting Information System
B. Business Process
C. Financial Transaction
D. Capital Transaction Process
12. The process that must identify the transactions to be recorded, capture all the important details of the
transactions, properly process the transaction details, and provide reports is termed the:
A. Revenue Process
B. Expenditure Process
C. Accounting Information System
D. Business Process
13. An accounting information system serves many functions - which of the following is NOT one of those functions?
A. Capture the details of a transaction
B. Implement the start of a transaction
C. Provide reports of transactions
D. Process the transactions details into appropriate accounts
1-2
, 14. The proper order of activity in an accounting information system would be as follows:
A. Capture, Record, Process, Report
B. Process, Record, Capture, Report
C. Capture, Process, Report, Record
D. Record, Capture, Process, Report
15. Which of the following is not one of the general types of business processes identified by the textbook?
A. Revenue Processes
B. Expenditure Processes
C. Conversion Processes
D. Human Resource Processes
16. Which of the following statements, related to business processes, is false?
A. Each business process has a direct effect on the financial status of the organization.
B. A business process is initiated by a particular kind of event.
C. A business process has a well-defined beginning and end.
D. Each business process is usually completed in a relatively short period.
17. Which of the following is least likely to be part of an accounting information system function?
A. Record the accounting data in the appropriate records
B. Generation of data to be part of the information system.
C. Process the detailed accounting data.
D. Report the summarized accounting data.
18. Work steps that are internal controls within the business process would include:
A. Using an electronic register to record all sales transactions.
B. Combining both manual and computer based records.
C. Reconciling a cash register at the end of each day.
D. Preparation of internal reports to monitor the performance of a specific department.
19. Five different components of the accounting information system were presented in the textbook. Which of the
following is not one of those components?
A. Work steps within a business process intended to capture accounting data as the business process occurs.
B. Work steps that are internal controls within the business process to safeguard assets and to ensure the
accuracy and completeness of the data.
C. Work steps that generate both internal and external reports.
D. Work steps to assure that all business processes are recorded using computer-based procedures.
20. Output from an accounting information system would include:
A. Checks to vendors
B. Invoices from vendors
C. Customer statements
D. Purchase orders
21. The entities, processes, and information flows that involve the movement of materials, funds, and related
information through the full logistics process, from the acquisition of raw materials to the delivery of the finished
produces to the end use is a set of linked activities referred to as:
A. Management Information System
B. Supply Chain
C. Accounting Information System
1-3
