TEST BANK For Accounting Information Systems, 4th Edition by Vernon Richardson, Verified Chapters 1 - 17, Complete

Chapter 1: Accounting Information Systems and Firm Value Chapter 2: Data Analytics: Addressing Accounting Questions with Data Chapter 3: Data Analytics: Data Visualizations Chapter 4: Process Modeling and Documentation Tools Chapter 5: Data Modeling and Control Concepts Chapter 6: Relational Databases and Enterprise Systems Chapter 7: Sales and Collections Business Process Chapter 8: Purchases and Payments Business Process Chapter 9: Conversion Business Process Chapter 10: Integrated Project Chapter 11: Accounting Information Systems and Internal Controls Chapter 12: Cybersecurity and Computer Fraud Chapter 13: Monitoring and Auditing AIS Chapter 14: eXtensible Business Reporting Language (XBRL) Chapter 15: Emerging Technologies: Blockchain and AI Automation Chapter 16: The Balanced Scorecard and Business Value of Information Technology Chapter 17: Justifying and Planning IT Initiatives Using Project Management Techniques ACCOUNTING INFORMATION SYSTEMS (RICHARDSON) Page 1 Chapter 1 Accounting Information Systems and Firm Value 1) Accounting and Finance is a primary activity in the value chain. ANSWER: FALSE Diff: 1 Topic: The Value Chain and Accounting InformationSystems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 2) Accounting Information Systems at this date are all computerized. ANSWER: FALSE Diff: 1 Topic: Data versus Information Learning Objective: 01-02 Distinguish among data, information, and an information system. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 3) Business value includes all those items, events and interactions that determine the financial health and well-being of the firm. ANSWER: TRUE Diff: 1 Topic: The Value Chain and Accounting InformationSystems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 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. ANSWER: FALSE Diff: 1 Topic: Role of Accountants in Accounting InformationSystems Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain certifications related to accounting information systems. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 5) The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those performing IT audits. ANSWER: TRUE Diff: 1 Topic: Role of Accountants in Accounting Information Systems Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain certifications related to accounting information systems. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making ACCOUNTING INFORMATION SYSTEMS (RICHARDSON) Page 2 6) Information is defined as being data organized in a meaningful way that is useful to the user. ANSWER: TRUE Diff: 1 Topic: Data versus Information Learning Objective: 01-02 Distinguish among data, information, and an information system. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 7) Data is defined as being information organized in a meaningful way that is useful to the user. ANSWER: FALSE Diff: 1 Topic: Data versus Information Learning Objective: 01-02 Distinguish among data, information, and an information system. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 8) A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem. ANSWER: TRUE Diff: 1 Topic: The Value Chain and Accounting InformationSystems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 9) A value chain is defined as the flow of materials, information, payments, and services from customer to supplier. ANSWER: FALSE Diff: 1 Topic: The Value Chain and Accounting InformationSystems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 10) Relevant information is that information that is free from bias and error. ANSWER: FALSE Diff: 1 Topic: Definition of Accounting Information Systems; Attributes of Useful Information Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making ACCOUNTING INFORMATION SYSTEMS (RICHARDSON) Page 3 11) The characteristics of relevant information include predictive value, feedback value and timeliness. ANSWER: TRUE Diff: 1 Topic: Definition of Accounting Information Systems; Attributes of Useful Information Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 12) The characteristics of reliable information are that the information is verifiable, without bias and timely. ANSWER: FALSE Diff: 1 Topic: Definition of Accounting Information Systems; Attributes of Useful Information Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 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. ANSWER: TRUE Diff: 1 Topic: Definition of Accounting Information Systems; Attributes of Useful Information Learning Objective: 01-02 Distinguish among data, information, and an information system. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 14) The main financial benefit of Customer Relationship Management practices reduces the cost of goods sold. ANSWER: FALSE Diff: 1 Topic: AIS, Firm Profitability, and StockPrices Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 15) An efficient Enterprise System can significantly lower the cost of support processes included in sales, general, and administrative expenses. ANSWER: TRUE Diff: 1 Topic: AIS, Firm Profitability, and StockPrices Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making ACCOUNTING INFORMATION SYSTEMS (RICHARDSON) Page 4 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. ANSWER: TRUE Diff: 1 Topic: Definition of Accounting InformationSystems Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 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. ANSWER: TRUE Diff: 1 Topic: AIS and Internal Business Processes Learning Objective: 01-06 Describe how AIS assists the firm's internal business processes. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 18) Outbound logistics are the activities associated with receiving and storing raw materials and other partially completed materials, and distributing those materials to manufacturing when and where they are needed. ANSWER: FALSE Diff: 1 Topic: The Value Chain and Accounting InformationSystems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 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.). ANSWER: TRUE Diff: 1 Topic: The Value Chain and Accounting InformationSystems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 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. ANSWER: TRUE Diff: 1 Topic: AIS, Firm Profitability, and StockPrices Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making