Test Bank for Accounting Information Systems 4e 4th
Edition by Vernon Richardson, Chengyee Chang and
Rod Smith
Chapter 1: Accounting Details Platforms and Firm Value
Multiple Choice Questions
1. (LO 1-1) Accounting details platforms
a. Are always computerized.
b. Report only financially related details.
c. Are details platforms that record, workflow, and report on operations to provide financial
and nonfinancial details for decision making and measure?
d. Require a CITP designation to understand.
Response: C
2. (LO 1-1) Which of the following is a characteristic of relevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Cost to generate
Response: A
3. (LO 1-2) Which of the following is considered to be mandatory details required by a regulatory
Body?
a. 10-Q submission to the Securities and Exchange Commission
b. The cost to produce a Samsung Galaxy
c. The number of organic bananas that are sold at Whole Foods on July 28
d. The cost to build an all-new Starbucks restaurant in Shenzhen, China
Response: A
4. (LO 1-4) The correct order of events in the value chain is
a. Inbound logistics ➛ Operations ➛ Service.
b. Inbound logistics ➛ Outbound logistics ➛ Marketing and sales.
c. Inbound logistics ➛ Operations ➛ outbound logistics.
d. Inbound logistics ➛ Operations ➛ Marketing and Sales.
,Response: C
5. (LO 1-8) Which platform contributes details on direct labor to a cost accounting platform?
a. Supply chain management platform (SCMS)
, b. Financial reporting platform (FRS)
c. Customer Relational Management Platform (CRM)
d. Human resource management platform
(HRMS) Response: D
6. (LO 1-7) A supply chain
a. supplies jewelry chains.
b. refers to the flow of materials, details, 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.
Response: B
7. (LO 1-7) Customer relationship management software does not include details about
a. current customers.
b. prospective customers.
c. former customers.
d. current employees.
Response: D
8. (LO 1-6) An details platform that measures and records accounting operations and reports
them in the financial statements is called a
a. financial reporting platform (FRS).
b. enterprise platform (ES).
c. manufacturing platform (MS).
d. cost accounting platform.
Response: A
9. (LO 1-3) What is the name of the position for a person responsible for determining Details
needs of a business and designing a platform to meet those needs?
a. Chief details officer
b. Measureler
c. IT auditor
d. Platforms
analyst Response: D
, 10. (LO 1-9) The balance sheet account most likely affected by an AIS investment in supply chain
management software would be
a. inventories.
b. fixed assets.
c. cash and cash equivalents.
d. unearned revenue.
Response: A
11. (LO 1-7) The software/platform that helps make sure the retail firm doesn’t have a stockout is
a. supply chain management software.
b. customer relationship management software.
c. enterprise platforms.
d. human resource platforms.
Response: A
12. (LO 1-9) Records analytics performed to identify the most profitable customers would be most
likely to affect which income statement account?
a. Selling, general, and administrative expenses (SG&A)
b. Interest expense
c. Revenues
d. Cost of goods sold
Response: C
13. (LO 1-7, LO 1-9) Customer relationship management platforms would generally be considered to be
an
a. internal business workflow.
b. external business workflow.
c. interior business workflow.
d. exterior business workflow.
Response: B
14. (LO 1-3) An auditor testing internal measures would generally be considered to fill which role
with respect to accounting details platforms?
a. User
b. Manager
c. Designer
Edition by Vernon Richardson, Chengyee Chang and
Rod Smith
Chapter 1: Accounting Details Platforms and Firm Value
Multiple Choice Questions
1. (LO 1-1) Accounting details platforms
a. Are always computerized.
b. Report only financially related details.
c. Are details platforms that record, workflow, and report on operations to provide financial
and nonfinancial details for decision making and measure?
d. Require a CITP designation to understand.
Response: C
2. (LO 1-1) Which of the following is a characteristic of relevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Cost to generate
Response: A
3. (LO 1-2) Which of the following is considered to be mandatory details required by a regulatory
Body?
a. 10-Q submission to the Securities and Exchange Commission
b. The cost to produce a Samsung Galaxy
c. The number of organic bananas that are sold at Whole Foods on July 28
d. The cost to build an all-new Starbucks restaurant in Shenzhen, China
Response: A
4. (LO 1-4) The correct order of events in the value chain is
a. Inbound logistics ➛ Operations ➛ Service.
b. Inbound logistics ➛ Outbound logistics ➛ Marketing and sales.
c. Inbound logistics ➛ Operations ➛ outbound logistics.
d. Inbound logistics ➛ Operations ➛ Marketing and Sales.
,Response: C
5. (LO 1-8) Which platform contributes details on direct labor to a cost accounting platform?
a. Supply chain management platform (SCMS)
, b. Financial reporting platform (FRS)
c. Customer Relational Management Platform (CRM)
d. Human resource management platform
(HRMS) Response: D
6. (LO 1-7) A supply chain
a. supplies jewelry chains.
b. refers to the flow of materials, details, 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.
Response: B
7. (LO 1-7) Customer relationship management software does not include details about
a. current customers.
b. prospective customers.
c. former customers.
d. current employees.
Response: D
8. (LO 1-6) An details platform that measures and records accounting operations and reports
them in the financial statements is called a
a. financial reporting platform (FRS).
b. enterprise platform (ES).
c. manufacturing platform (MS).
d. cost accounting platform.
Response: A
9. (LO 1-3) What is the name of the position for a person responsible for determining Details
needs of a business and designing a platform to meet those needs?
a. Chief details officer
b. Measureler
c. IT auditor
d. Platforms
analyst Response: D
, 10. (LO 1-9) The balance sheet account most likely affected by an AIS investment in supply chain
management software would be
a. inventories.
b. fixed assets.
c. cash and cash equivalents.
d. unearned revenue.
Response: A
11. (LO 1-7) The software/platform that helps make sure the retail firm doesn’t have a stockout is
a. supply chain management software.
b. customer relationship management software.
c. enterprise platforms.
d. human resource platforms.
Response: A
12. (LO 1-9) Records analytics performed to identify the most profitable customers would be most
likely to affect which income statement account?
a. Selling, general, and administrative expenses (SG&A)
b. Interest expense
c. Revenues
d. Cost of goods sold
Response: C
13. (LO 1-7, LO 1-9) Customer relationship management platforms would generally be considered to be
an
a. internal business workflow.
b. external business workflow.
c. interior business workflow.
d. exterior business workflow.
Response: B
14. (LO 1-3) An auditor testing internal measures would generally be considered to fill which role
with respect to accounting details platforms?
a. User
b. Manager
c. Designer
