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