Test Bank For Accounting Information
Systems 10th Edition By Ulric Gelinas Richard
Dull Patrick Wheeler (All Chapters, 100%
Original Verified, A+ Grade
Data - Correct answer-facts that are collected, recorded, stored, and processed by an information
system
Information - Correct answer-data that has been organized and processed to provide meaning and
improve decision making process
Characteristics of Useful Information - Correct answer-1 Relevant
2 Reliable
3 Complete
4 Timely
5 Understandable
6 Verifiable
7 Accessible
Relevant - Correct answer-Reduces uncertainty, improves decision making, or confirms or corrects prior
expectations
Reliable - Correct answer-Free from error or bias; accurately represents organization events or activities
,Complete - Correct answer-Does not omit important aspects of the events or activities it measures
Timely - Correct answer-Provided in time for decision makers to make decisions
Understandable - Correct answer-Presented in a useful and intelligible format
Verifiable - Correct answer-Two independent, knowledgeable people produce the same information
Accessible - Correct answer-Available to users when they need it and in a format they can use
Revenue Cycle - Correct answer-where goods and services are sold for cash or a future promise to
receive cash
Expenditure Cycle - Correct answer-where companies purchase inventory for resale or raw materials to
use in producing products in exchange for cash or a future promise to pay cash
Production/Conversion Cycle - Correct answer-where raw materials are transformed into finished goods
Human Resources/Payroll Cycle - Correct answer-where employees are hired, trained, compensated,
evaluated, promoted and terminated
Financing Cycle - Correct answer-where companies sell shares in the company to investors and borrow
money, and where investors are paid dividends and interest is paid on loans
Primary Activities in Value Chain - Correct answer-1 Inbound Logistics
2 Operations
3 Outbound Logistics
4 Marketing and Sales
5 Service
,Inbound Logistics - Correct answer-consists if receiving, storing , and distributing the materials an
organization uses to create the services and products it sells
Operations - Correct answer-activities transform inputs into final products or services
Outbound Logistics - Correct answer-activities distribute finished products or services to customers
Marketing and Sales - Correct answer-activities help customers buy the organization's products or
services
Service - Correct answer-activities provide post-sale support to customers
Support Activities of Value Chain - Correct answer-1 Firm Infrastructure
2 HR
3 Technology
4 Purchasing
Firm Infrastructure - Correct answer-accounting, finance, legal, and general administrative activities that
allow an organization to function
Human Resources - Correct answer-activities include recruiting, hiring, training, and compensating
employees
Technology - Correct answer-activities improve a product or service
Purchasing - Correct answer-activities procure raw materials, supplies, machinery, and the buildings
used to carry out the primary activities
Four operations of Data Processing Cycle - Correct answer-1 Data Input
2 Data Storage
, 3 Data Processing
4 Information Output
*Users are also involved in entire process
Two steps in Data Input - Correct answer-1 Capture transaction data (each activity, resource affected,
and people participating)
2 Verify captured data are accurate and complete
Source Documents - Correct answer-Documents used to capture transaction data at its source - when
the transaction takes place
Turnaround Document - Correct answer-Records of company data sent to an external party and then
returned to the system as input (sales orders, purchase orders, employee time cards)
Source Data Automation - Correct answer-The collection of transaction data in machine readable form
at the time and place of origin
Six Data Storage Concepts - Correct answer-1 Ledgers
2 Coding Techniques
3 Chart of Accounts
4 Journals
5 Audit Trail
6 Computer Based Storage Concepts
General Ledger - Correct answer-Ledger that contains summary-level data for every asset, liability,
equity, revenue, and expense account of the organization
Subsidiary Ledger - Correct answer-Ledger used to record detailed data for a general ledger account
with many individual sub-accounts such as accounts receivable, inventory and accounts payable
Systems 10th Edition By Ulric Gelinas Richard
Dull Patrick Wheeler (All Chapters, 100%
Original Verified, A+ Grade
Data - Correct answer-facts that are collected, recorded, stored, and processed by an information
system
Information - Correct answer-data that has been organized and processed to provide meaning and
improve decision making process
Characteristics of Useful Information - Correct answer-1 Relevant
2 Reliable
3 Complete
4 Timely
5 Understandable
6 Verifiable
7 Accessible
Relevant - Correct answer-Reduces uncertainty, improves decision making, or confirms or corrects prior
expectations
Reliable - Correct answer-Free from error or bias; accurately represents organization events or activities
,Complete - Correct answer-Does not omit important aspects of the events or activities it measures
Timely - Correct answer-Provided in time for decision makers to make decisions
Understandable - Correct answer-Presented in a useful and intelligible format
Verifiable - Correct answer-Two independent, knowledgeable people produce the same information
Accessible - Correct answer-Available to users when they need it and in a format they can use
Revenue Cycle - Correct answer-where goods and services are sold for cash or a future promise to
receive cash
Expenditure Cycle - Correct answer-where companies purchase inventory for resale or raw materials to
use in producing products in exchange for cash or a future promise to pay cash
Production/Conversion Cycle - Correct answer-where raw materials are transformed into finished goods
Human Resources/Payroll Cycle - Correct answer-where employees are hired, trained, compensated,
evaluated, promoted and terminated
Financing Cycle - Correct answer-where companies sell shares in the company to investors and borrow
money, and where investors are paid dividends and interest is paid on loans
Primary Activities in Value Chain - Correct answer-1 Inbound Logistics
2 Operations
3 Outbound Logistics
4 Marketing and Sales
5 Service
,Inbound Logistics - Correct answer-consists if receiving, storing , and distributing the materials an
organization uses to create the services and products it sells
Operations - Correct answer-activities transform inputs into final products or services
Outbound Logistics - Correct answer-activities distribute finished products or services to customers
Marketing and Sales - Correct answer-activities help customers buy the organization's products or
services
Service - Correct answer-activities provide post-sale support to customers
Support Activities of Value Chain - Correct answer-1 Firm Infrastructure
2 HR
3 Technology
4 Purchasing
Firm Infrastructure - Correct answer-accounting, finance, legal, and general administrative activities that
allow an organization to function
Human Resources - Correct answer-activities include recruiting, hiring, training, and compensating
employees
Technology - Correct answer-activities improve a product or service
Purchasing - Correct answer-activities procure raw materials, supplies, machinery, and the buildings
used to carry out the primary activities
Four operations of Data Processing Cycle - Correct answer-1 Data Input
2 Data Storage
, 3 Data Processing
4 Information Output
*Users are also involved in entire process
Two steps in Data Input - Correct answer-1 Capture transaction data (each activity, resource affected,
and people participating)
2 Verify captured data are accurate and complete
Source Documents - Correct answer-Documents used to capture transaction data at its source - when
the transaction takes place
Turnaround Document - Correct answer-Records of company data sent to an external party and then
returned to the system as input (sales orders, purchase orders, employee time cards)
Source Data Automation - Correct answer-The collection of transaction data in machine readable form
at the time and place of origin
Six Data Storage Concepts - Correct answer-1 Ledgers
2 Coding Techniques
3 Chart of Accounts
4 Journals
5 Audit Trail
6 Computer Based Storage Concepts
General Ledger - Correct answer-Ledger that contains summary-level data for every asset, liability,
equity, revenue, and expense account of the organization
Subsidiary Ledger - Correct answer-Ledger used to record detailed data for a general ledger account
with many individual sub-accounts such as accounts receivable, inventory and accounts payable
