BUS 120A PRACTICE EXAM QUESTIONS AND
ANSWERS
Top executives make more unstructured decisions than lower level employees -
Answers - True
Brooks Company has been recording shipments of goods that were not ordered by their
customers. This is a violation of Accuracy. - Answers - True
Horizontal information flow relate to specific business events. This information is narrow
scope detailed, accurate, and comes largely from the organization. - Answers - True
When evaluating the quality of information, relevance is synonym of reliability. -
Answers - False
Management is responsible for implementing and evaluating the internal control system
of an organization - Answers - True
Information has understandability when it capable of making a difference in decision-
making situations. - Answers - True
Shipments at Ever Ltd. are entered into PCs in the shipping department office. The
paperwork often gets lost between the shipping dock and the office, and some shipping
do not get entered. This is a violation of completeness. - Answers - True
Section 409 of Sarbanes-Oxley mandates auditors to report on the effectiveness of
organizations systems of internal control. - Answers - False
A bank statement is associated with which part of a company's accounting information
system - Answers - Input
The three logical components of business process include all of the following except: -
Answers - Organization Process
Operations process
information process
management process
The ability of different individuals to reach consensus about the information using the
same measurement methods is known as - Answers - Verifiability
Accuracy
Completeness
, Comparability
The information quality that enables users to identify similarities and differences in two
pieces of information is - Answers - Comparability
Neutrality
Understandability
Predictive value
Ralph is reluctant to change the cost flow assumption from last-input first to average
because of the impact this change is likely to have on the quality of information. What
particular information quality is Ralph concerned about? - Answers - Comparability
Timeliness
Verifiability
Completeness
Thomas has identified multiple errors when counting the physical inventory. To correct
this problem, Thomas is evaluating whether to implement RFID tags to keep track of
inventory. Which information quality Thomas wants to improve with the implementation
of RFID tags? - Answers - Accuracy
Predictive value
Neutrality
Comparability
Information that is capable of making a difference in a decision of a user is said to
possess a quality of - Answers - Relevance
ERP systems cause the information to be inconsistent across departments. - Answers -
False
A customer table is created for every new customer added to the ERP system. -
Answers - False
The data captured as business events occur should be sufficient for someone who was
not a party to the event to understand and reconstruct what happened. - Answers - True
When choosing modules for an organization's ERP system, it is generally best to select
them all from a single vendor - Answers - False
If you have made a web purchase such as Amazon.com you can have experience some
of the functionality of a Customer Relationship Management system where vendors
keep track of your names, address, and purchase - Answers - True
ANSWERS
Top executives make more unstructured decisions than lower level employees -
Answers - True
Brooks Company has been recording shipments of goods that were not ordered by their
customers. This is a violation of Accuracy. - Answers - True
Horizontal information flow relate to specific business events. This information is narrow
scope detailed, accurate, and comes largely from the organization. - Answers - True
When evaluating the quality of information, relevance is synonym of reliability. -
Answers - False
Management is responsible for implementing and evaluating the internal control system
of an organization - Answers - True
Information has understandability when it capable of making a difference in decision-
making situations. - Answers - True
Shipments at Ever Ltd. are entered into PCs in the shipping department office. The
paperwork often gets lost between the shipping dock and the office, and some shipping
do not get entered. This is a violation of completeness. - Answers - True
Section 409 of Sarbanes-Oxley mandates auditors to report on the effectiveness of
organizations systems of internal control. - Answers - False
A bank statement is associated with which part of a company's accounting information
system - Answers - Input
The three logical components of business process include all of the following except: -
Answers - Organization Process
Operations process
information process
management process
The ability of different individuals to reach consensus about the information using the
same measurement methods is known as - Answers - Verifiability
Accuracy
Completeness
, Comparability
The information quality that enables users to identify similarities and differences in two
pieces of information is - Answers - Comparability
Neutrality
Understandability
Predictive value
Ralph is reluctant to change the cost flow assumption from last-input first to average
because of the impact this change is likely to have on the quality of information. What
particular information quality is Ralph concerned about? - Answers - Comparability
Timeliness
Verifiability
Completeness
Thomas has identified multiple errors when counting the physical inventory. To correct
this problem, Thomas is evaluating whether to implement RFID tags to keep track of
inventory. Which information quality Thomas wants to improve with the implementation
of RFID tags? - Answers - Accuracy
Predictive value
Neutrality
Comparability
Information that is capable of making a difference in a decision of a user is said to
possess a quality of - Answers - Relevance
ERP systems cause the information to be inconsistent across departments. - Answers -
False
A customer table is created for every new customer added to the ERP system. -
Answers - False
The data captured as business events occur should be sufficient for someone who was
not a party to the event to understand and reconstruct what happened. - Answers - True
When choosing modules for an organization's ERP system, it is generally best to select
them all from a single vendor - Answers - False
If you have made a web purchase such as Amazon.com you can have experience some
of the functionality of a Customer Relationship Management system where vendors
keep track of your names, address, and purchase - Answers - True
