ACC 350 Questions & Answers

One aspect of usefulness of information is _____,which reduces uncertainty - ANSWERSRelevance Systems problems always occur when - ANSWERSobjective is not being met _____ is not organized in a meaningful way whereas _____ is organized to provide meaning. - ANSWERSdata; information Data input is generally classified based on the source and type of data. Identify whether each item is either a source of data or a type of data. - ANSWERSInternal: Source External: Source Quantitative: Type Qualitative: Type Which of the following is one of the major components of an accounting information system (AIS)? - ANSWERSPeople ____________ systems are known for their ability to integrate accounting and non-financial information. - ANSWERSERP Measuring customer satisfaction using a survey question "Please rate your experience at Joe's Ristoranté on a scale of 1-10 with 1 being 'not satisfied at all' and 10 being 'very satisfied,' is an example of - ANSWERSQuantitative Which utilizes immediate posting of transaction data to master files? - ANSWERSReal Time Tracing transaction flow from creation to disposition is referred to as? - ANSWERS. People who _____ information are just demonstrating the lowest level of systems thinking. - ANSWERSRecall Which of the following cycles involves the tracking of stock, borrowing transactions, and fixed assets? - ANSWERSCapital/Investment Which of the following is generally the first step in the accounting system analysis phase? - ANSWERSGaining an understanding of the current system requirements. Which of the following design principles requires minimizing effort and possible errors? - ANSWERSEase of use Which of the following is not considered an objective for user acceptance when developing a system? - ANSWERSNone of the above When putting together a system analysis report, an analyst describes possible recommendations concerning how the system will be accepted by the organization. Which of the following best addresses this issue? - ANSWERSFeasibility Which of the following types of documentation is needed when you need to understand the processing activities and the files affected? - ANSWERSSystem flowchart System flowcharts can be used to describe - ANSWERSboth manual and computerized accounting systems. A document flowchart is - ANSWERSa diagram depicting the document flows of a system. A system flowchart is a diagram depicting the - ANSWERSprocedures of a system. procedures, decisions, and document flows of a system. WRONG The general rule for choosing documentation is to choose the technique that gives you the most explanatory value for the least cost. Which of the following types of documentation is generally considered to be the least expensive and easiest way to prepare a walkthrough? - ANSWERSNarrative memorandum Which of the following statements about documenting an accounting system is true? - ANSWERSLack of documentation in an accounting system could be considered a material weakness. Understanding internal control is critical because it helps ensure all of the following: - ANSWERSquality of information. security over the assets. compliance with regulation. After a study by internal auditors, the accounting system for collecting revenues at your retail store is determined to be 90% reliable. A major threat like the one that occurred at Target Stores has been identified that could cost the company $5,000,000. To minimize this potential loss, the internal auditors have recommended adding two possible control procedures. The first control would cost approximately $210,000 to implement and reduce the likelihood of loss to about 5%. The second control would cost about $380,000 and reduce the likelihood to 3%. Based on the costs and benefits, which of the following would you recommend to management? - ANSWERSRecommend the first control only. Which of the following is not a factor within the control environment? - ANSWERSnone of the above. The main difference between COSO and COSO-ERM is: - ANSWERSCOSO focuses on internal control risk only. Which of the following is not a control environment principle? - ANSWERSThe board develops internal control activities.