Accounting Information Systems 10th Edition Test Bank | James A. Hall | All Chapters Practice Questions & Comprehensive Exam Prep 2026–2027

Accounting Information Systems 10th Edition Test
Bank | James A. Hall | All Chapters Practice Questions
& Comprehensive Exam Prep 2026–2027

All chapters covered

,Accounting Information Systems 10e James A. Hall (Test Bank
g g g g g g g g




All Chapters, 100% Original Verified, A+ Grade)
g g g g g g g




Chapter 1 g




1. Information is a business resource. g g g g




*a. True g




b. Falseg




2. IT outsourcing is location-independent computing.
g g g g




a. True
*b. False g




3. Transaction processing systems convert non-financial transactions
g g g g g




into financial transactions.
g g g




a. True
*b. False g




4. Information lacking reliability may still have value.
g g g g g g




a. True
*b. False g




5. A balance sheet prepared in conformity with GAAP is an example of
g g g g g g g g g g g




discretionary reporting.
g g




a. True
*b. False g




6. The management reporting system provides the internal financial
g g g g g g g




information needed to manage a business.
g g g g g g




*a. True g




b. Falseg




7. Most of the inputs to the general ledger system come from the
g g g g g g g g g g g




financial reporting system.
g g g




a. True
*b. False g




8. When preparing discretionary reports, organizations can choose what
g g g g g g g




information to report and how to present it.
g g g g g g g g




*a. True g




b. Falseg

,9. Retrieval is the task of permanently removing obsolete or redundant
g g g g g g g g g




records from the database.
g g g g




a. True
*b. False g




10. Systems development represents 80 to 90 percent of the total cost of a
g g g g g g g g g g g g




computer system.
g g




a. True
*b. False g




11. The database administrator is responsible for the security and
g g g g g g g g




integrity of the database.
g g g g




*a. True g




b. False g




12. Custom software is developed and maintained by enterprise resource
g g g g g g g g




planners.
g




a. True
*b. False g




13. The internal auditor represents the interests of third-party
g g g g g g g




outsiders.
g




a. True
*b. False g




14. Information technology (IT) audits can be performed by both
g g g g g g g g




internal and external auditors.
g g g g




*a. True g




b. False g




15. Custom software is the most affordable systems development option.
g g g g g g g g




a. True
*b. False g




16. A database is a collection of interconnected computers and
g g g g g g g g




communications devices that allows users to communicate, access data and
g g g g g g g g g g




applications, and share information and resources.
g g g g g g




a. True
*b. False g

, 17. Systems maintenance consumes the majority of a system’s total
g g g g g g g g




costs.
g




*a. True g




b. False g




18. Cloud computing is a practice in which the organization sells its IT
g g g g g g g g g g g




resources to a third-party outsourcing vendor then leases back IT services
g g g g g g g g g g g




from the vendor for a contract period.
g g g g g g g




a. True
*b. False g




19. A potential benefit of cloud computing is that the client firm does not
g g g g g g g g g g g g




need to know where its data are being processed.
g g g g g g g g g




a. True
*b. False g




20. One of the greatest disadvantages of database systems is that all data
g g g g g g g g g g g




is always available to all users.
g g g g g g




a. True
*b. False g




21. Under SOX legislation public accounting firms are no longer allowed to
g g g g g g g g g g




provide consulting services to audit clients.
g g g g g g




*a. True g




b. False g




22. One member of a company’s audit committee must be an independent CPA.
g g g g g g g g g g g




a. True
*b. False g




23. Which of the following is not a business resource?
g g g g g g g g




a. raw material g




b. labor
c. information
*d. all are business resources
g g g g