TEST BANK For Accounting Information Systems, 4th Edition by Vernon Richardson, Verified Chapters 1 - 17, Complete. Download as Pdf File UPDATED 2025

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