Accounting Information Systems, 4th Edition : Rod E. Smith & Vernon Richardson ; Complete Test Bank for Chapters 1–17 | Comprehensive Exam Practice Questions, Verified Answer Key & Study Resource

TEST BANK for Accounting Information Systems, 4th Edition by
Rod E. Smith Vernon Richardson
All Chapters Fully Covered 1-17| Verified Questions & 100% Correct Answers
for Exam Preparations| A+ GRADED
All Answers are at the End of Each Chapter

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, Chapter 01: Accounting Information Systems and Firm Value
True/False Questions

1) Accounting and Finance is a primary activity in the value chain.
⊚ true
⊚ false


2) As of today, Accounting Information Systems are all computerized.
⊚ true
⊚ false


3) Business value includes all those items, events and interactions that determine the financial health
and well-being of the firm.
⊚ true
⊚ false


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.
⊚ true
⊚ false


5) The Certified Information Systems Auditor (CISA) is a professional designation generally sought
by those performing IT audits.
⊚ true
⊚ false


6) Information is defined as being data organized in a meaningful way that is useful to the user.
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⊚ true
⊚ false
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7) Data is defined as being information organized in a meaningful way that is useful to the user.
⊚ true
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⊚ false
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,8) An AIS may create value by giving access to management information relevant to the
decision makers.
⊚ true
⊚ false


9) An AIS may create value by providing an internal control structure needed to make sure the
information is secure, reliable, and free from error.
⊚ true
⊚ false


10) Relevant information‟s most defining characteristic is that it is free from bias and error.
⊚ true
⊚ false


11) The characteristics of relevant information include predictive value, feedback value and
timeliness.
⊚ true
⊚ false


12) A faithful representation of the underlying event should reflect the bias of the system analyst.
⊚ true
⊚ false
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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.
⊚ true
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⊚ false
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14) The main financial benefit of Customer Relationship Management practices reduces the cost of
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goods sold.
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⊚ false
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, 15) An efficient Enterprise System can significantly lower the cost of support processes included in sales,
general, and administrative expenses.
⊚ true
⊚ false


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.
⊚ true
⊚ false


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.
⊚ true
⊚ false


18) Outbound logistics are the activities associated with receiving and storing raw materials as well as
activities that transform these inputs into finished goods.
⊚ true
⊚ false


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.).
⊚ true
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⊚ false
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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.
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⊚ true
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⊚ false
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