ACCT 146 Textbook Exam 1 Questions and Answers

ACCT 146 Textbook Exam 1 Questions and Answers Accounting Information Systems: A) Are always computerized B) Report only accounting information C) Includes records, processes and reports D) Are for computer games C Which of the following is not a characteristic of useful information? A) Easy to understand. B) Feedback Value C) Timeliness D) Representation Faithfulness A 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 amount of taxes saved by a merger C) The total dollar value of fireworks that are sold on July 4 D) The cost to build an all new Starbucks restaurant in Abu Dubai A The correct order of effects in the value chain are: A) Inbound Logistics > Operations > Service B) Inbound Logistics > Outbound Logistics > Service C) Inbound Logistics > Operations > Outbound Logistics D) Inbound Logistics > Operations > Shipping C Which designation would be most appropriate for those professionals possessing IT audit, control and security skills? A) Certified Internal Auditor (CIA) B) Certified Public Accountant (CPA) C) Certified Information Technology Professional (CITP) D) Certified Information System Auditors (CISA) D Which designation is for CPAs with a broad range of technology knowledge and experience? A) Certified Internal Auditor (CIA) B) Certified Public Accountant (CPA) C) Certified Information Technology Professional (CITP) D) Certified Information System Auditors (CISA) C A supply chain: A) Refers to the supplies needed to build products. B) Refers to the flow of materials, information, payments and services. C) Is similar in function and purpose to the value chain. D) Does not apply to a service firm like an accounting firm. A supply chain system does not include information about: A) Current customers. B) Prospective customers. C) Availability of inventory. D) Current suppliers. B The income statement line item most likely affected by an AIS investment in enterprise systems would be: A) Revenues. B) Cost of Goods Sold. C) Selling, General and Administrative Expenses. D) Unearned Revenue. C The income statement line item most likely affected by an AIS investment in supply chain that would interface with suppliers would be: A) Revenues. B) Cost of Goods Sold. C) Selling, General and Administrative Expenses. D) Research and Development Expenses. B The IT strategic roles of AIS investments are classified as: A) Automate, Informate, Transform. B) Value creation, Value Destruction, Value Neutral. C) Digitize, Report, Transform. D) Automate, Digitize, Transport. A According to a recent study, the transform IT strategic role is defined as systems that: A) Replace human labor in automating business processes. B) Provide information about business activities to all employees. C) Provide information about business activities to senior management. D) Fundamentally redefine business processes and relationships. D According to a recent study, the informate-up IT strategic role is defined as systems that: A) Replace human labor in automating business processes. B) Provide information about business activities to all employees. C) Provide information about business activities to senior management. D) Fundamentally redefine business processes and relationships. C The income statement account most likely affected by an AIS investment in customer relationship management (CRM) would be: A) Revenues. B) Cost of Goods Sold. C) Selling, General and Administrative Expenses. D) Unearned Revenue. A Many hospitals and doctor's offices are beginning to digitize the medical records of their patients. This is an example of the ____________ strategic role. A) Automate. B) Informate - up. C) Transform. D) Informate - down. A EBay uses information technology to sell goods on the internet. This would be an example of the ___________ strategic role. A) Automate. B) Informate - up. C) Transform. D) Informate - down. C The Information Value Chain is defined as: A) The flow of materials, information, payments, and services. B) The use of computer technology to provide information about business activities to employees across the firm. C) The overall transformation of data from a business need to the ultimate decision. D) A centralized database that collects data from throughout the firm. C Business Value is defined as: A) The monetary value of a business. B) Items, events and interactions that determine the financial health and well-being of the firm. C) The cost to acquire a business by an outsider. D) The overall value of taking data and transforming it in to information needed for decision making. B Customer Relationship Management is defined as: A).A system used to manage and nurture a firm's interactions with its current and potential customers. B). A system used to track a customer's past purchases. C). A system used to connect a firm's suppliers with a firm's customers. D). A system used to advertise current items on sale to customers. A Support activities in the value chain do not include: Firm Infrastructure. Human Resource Management. Procurement. Accounting and Finance. Accounting and Finance. The role of accountants in accounting information systems include all except: User. Manager. Operator. Evaluator. operator A simple information system includes all but the following elements except: Processing. Storage. Input. Reporting. Reporting Activity-based costing is an example of: Information overload. Mandatory information. Discretionary information. Enterprise System. Discretionary Information An example of an AIS that primarily addresses internal business processes includes: Supply chain software. Customer relationship management software. B2B transaction software. Enterprise systems. Enterprise System 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 ____________. Data gridlock. Discretionary information. Information overload. Data redundancy. information overload Which of the following systems would a company be most likely to employ for the primary purpose of generating additional sales revenue? MDBMS. CRM. SCM. OCR. CRM The primary transformation of data into information takes place in which of the following activities? Input. Storage. Processing. Output. Processing Discretionary information is most likely to be used in which of the following activities? Preparing required Environmental Protection Agency emissions reports. Filing a 10-K with the SEC. Management decision-making. Payroll tax reporting. Management Decision making Which of the following is not a primary activity in the Value Chain? Outbound Logistics. Marketing. Inbound Logistics. Information Technology. information technology One of the most important ways that ERPs benefit organizations and their business processes is: Current information is made available to all users involved in the activities and decisions associated with a company's business processes. Information is stored in many specialized, distributed databases that each serve separate business processes. Reducing the amount of time to complete business processes by eliminating all controls associated with the processes. Preventing external business partners from accessing the organization's data. Current Information is made available... One common way of measuring the effectiveness of the Supply Chain is through the fill rate. Which of the following best describes the fill rate? The percentage, in monetary value, of a supplier's order which is actually delivered to the organization. The number of items per hour that receiving employees can move from the receiving dock to the warehouse. The rate at which the stock in warehouse storage bins increases. The average amount of time it takes for the organization to fulfill customers' orders. The percentage, in monetary value,... Investors reward companies most that announce IT initiatives with which type of strategic role? Automate. Informate - up. Transform. Informate - down. transform 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? Automate. Informate - up. Correct Transform. Informate - down. informate-up Which of the following most accurately describes IFAC's description of accounting and IT? IT is an important peripheral discipline to accounting. Accounting and IT are indistinguishable from one another. It is difficult to conceive of accounting independent from IT. Accounting is an important peripheral discipline to IT. C he Sarbanes-Oxley Act of 2002 requires that a company's attest auditors be able to perform which of the following activities? Evaluate the internal controls in an AIS. Assess the value of a company's IT assets. Take over the company's AIS if necessary. Design and implement the controls used in the AIS. A. Consider the non-profit organization Doctors without Borders (Médecins Sans Frontières), a Nobel Peace Prize winning organization that provides medical services in war zones and developing countries. For this type of organization, which of the following would likely be the best measure of business value? Fund balance (i.e., the net of revenues less expenditures). Lives saved. Donations raised. Volunteers deployed. B Effective use of Supply Chain Management software is generally expected to provide all of the following benefits except: Reduced inventory carrying costs. Lower production costs. Reduced gross margins. Better communications with suppliers. C. Which of the following is usually the primary objective for companies when creating mandatory information? The value of the information exceeds the cost to produce it. Minimize cost. Improve business decisions. Ensure proper controls over business processes. B. Which of the following is not a Stewardship and Reporting role of the Accounting/Finance Function in Business? Human Resource management. Regulatory compliance. Tax returns. Statutory reporting. A Which of the following is not a Business Management Support role of the Accounting/Finance Function in Business? Management information. Planning, budgeting and forecasting. Financial consolidation, reporting and analysis. Investment appraisal. C Which of the following is not an Accounting/Finance Operations role of the Accounting/Finance Function in Business? Financial close - completing period end accounts. Stakeholder assurance. People management. Financial consolidation, reporting and analysis B