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– Accounting Information Systems (4th Edition, Vernon Richardson) Chapters 1–17 Practice Questions and Answershttps://www.stuvia.com/user/edupac
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Test Bank – Accounting Information
Systems (4th Edition, Vernon Richardson)
Chapters 1–17 Practice Questions and
Answers
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Ch 01
1. Accounting and Finance is a primary activity in the value chain.
⊚ true
⊚ false
2. As of today, Accounting Information Systems are all computerized.
⊚ true
⊚ false
3. Business value includes all those items, events and interactions that determine the
financial health and well-being of the firm.
⊚ true
⊚ false
4. The Certified Information Technology Professional (CITP) is a professional designation
for those with a broad range of technology knowledge and does not require a CPA.
⊚ true
⊚ false
5. The Certified Information Systems Auditor (CISA) is a professional designation
generally sought by those performing IT audits.
⊚ true
⊚ false
6. Information is defined as being data organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
7. Data is defined as being information organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
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8. An AIS may create value by giving access to management information relevant
to the decision makers.
⊚ true
⊚ false
9. An AIS may create value by providing an internal control structure needed to make sure
the information is secure, reliable, and free from error.
⊚ true
⊚ false
10. Relevant information’s most defining characteristic is that it is free from bias and error.
⊚ true
⊚ false
11. The characteristics of relevant information include predictive value, feedback value
and timeliness.
⊚ true
⊚ false
12. A faithful representation of the underlying event should reflect the bias of the system analyst.
⊚ true
⊚ false
13. Information overload is defined as the difficulty a person faces in understanding a
problem and making a decision as a consequence of too much information.
⊚ true
⊚ false
14. The main financial benefit of Customer Relationship Management practices reduces the
cost of goods sold.
⊚ true
⊚ false
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15. An efficient Enterprise System can significantly lower the cost of support processes
included in sales, general, and administrative expenses.
⊚ true
⊚ false
16. An accounting information system (AIS) is defined as being an information system
that records, processes and reports on transactions to provide financial and nonfinancial
information for decision making and control.
⊚ true
⊚ false
17. An enterprise system is a centralized database that collects data from throughout the
firm. This includes data from orders, customers, sales, inventory and employees.
⊚ true
⊚ false
18. Outbound logistics are the activities associated with receiving and storing raw
materials as well as activities that transform these inputs into finished goods.
⊚ true
⊚ false
19. Service Activities as defined in the value chain are those activities that provide the
support of customers after the products and services are sold to them (e.g. warranty repairs, parts,
instruction manuals, etc.).
⊚ true
⊚ false
20. A well-designed and well-functioning AIS can be expected to create value by
providing relevant information helpful to management to increase revenues and reduce
expenses.
⊚ true
⊚ false
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– Accounting Information Systems (4th Edition, Vernon Richardson) Chapters 1–17 Practice Questions and Answershttps://www.stuvia.com/user/edupac
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Test Bank – Accounting Information
Systems (4th Edition, Vernon Richardson)
Chapters 1–17 Practice Questions and
Answers
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Ch 01
1. Accounting and Finance is a primary activity in the value chain.
⊚ true
⊚ false
2. As of today, Accounting Information Systems are all computerized.
⊚ true
⊚ false
3. Business value includes all those items, events and interactions that determine the
financial health and well-being of the firm.
⊚ true
⊚ false
4. The Certified Information Technology Professional (CITP) is a professional designation
for those with a broad range of technology knowledge and does not require a CPA.
⊚ true
⊚ false
5. The Certified Information Systems Auditor (CISA) is a professional designation
generally sought by those performing IT audits.
⊚ true
⊚ false
6. Information is defined as being data organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
7. Data is defined as being information organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
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8. An AIS may create value by giving access to management information relevant
to the decision makers.
⊚ true
⊚ false
9. An AIS may create value by providing an internal control structure needed to make sure
the information is secure, reliable, and free from error.
⊚ true
⊚ false
10. Relevant information’s most defining characteristic is that it is free from bias and error.
⊚ true
⊚ false
11. The characteristics of relevant information include predictive value, feedback value
and timeliness.
⊚ true
⊚ false
12. A faithful representation of the underlying event should reflect the bias of the system analyst.
⊚ true
⊚ false
13. Information overload is defined as the difficulty a person faces in understanding a
problem and making a decision as a consequence of too much information.
⊚ true
⊚ false
14. The main financial benefit of Customer Relationship Management practices reduces the
cost of goods sold.
⊚ true
⊚ false
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*()(
15. An efficient Enterprise System can significantly lower the cost of support processes
included in sales, general, and administrative expenses.
⊚ true
⊚ false
16. An accounting information system (AIS) is defined as being an information system
that records, processes and reports on transactions to provide financial and nonfinancial
information for decision making and control.
⊚ true
⊚ false
17. An enterprise system is a centralized database that collects data from throughout the
firm. This includes data from orders, customers, sales, inventory and employees.
⊚ true
⊚ false
18. Outbound logistics are the activities associated with receiving and storing raw
materials as well as activities that transform these inputs into finished goods.
⊚ true
⊚ false
19. Service Activities as defined in the value chain are those activities that provide the
support of customers after the products and services are sold to them (e.g. warranty repairs, parts,
instruction manuals, etc.).
⊚ true
⊚ false
20. A well-designed and well-functioning AIS can be expected to create value by
providing relevant information helpful to management to increase revenues and reduce
expenses.
⊚ true
⊚ false
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