AIS EXAM 1 Questions and Answers correct

AIS EXAM 1 Questions and Answers correct Which of the following statements below shows the contrast between data and information? -Data is more useful in decision making than information. -Information is the primary output of an accounting information system. -Data is the primary output of an accounting information system. Information is the primary output of an accounting information system. Information is best described as -facts that are useful when processed in a timely manner. -the same thing as data. -data that has been organized and processed so that it is meaningful to the user. -raw facts about transactions. data that has been organized and processed so that it is meaningful to the user. The value of information can best be determined by -its relevance to decision makers. -the extent to which it optimizes the value chain. -its usefulness to decision makers. -the benefits associated with obtaining the information minus the cost of producing it. the benefits associated with obtaining the information minus the cost of producing it. ________ information reduces uncertainty, improves decision-makers' ability to make predictions, or confirms expectations. -Reliable -Complete -Timely -Relevant relevant Information that does not omit important aspects of the underlying events or activities that it measures is -relevant. -timely. -accessible. -complete complete Before a firm can identify the information needed to effectively manage a process, the firm must -obtain internet access. -understand the process. -hire an outside consultant. -purchase computers and/or workstations. understand the process. In which transaction cycle would customer sales transaction information be most likely to pass between internal and external accounting information systems? -the human resources / payroll cycle -the expenditure cycle -the financing cycle -the revenue cycle the revenue cycle The ________ is not a transaction cycle. -expenditure cycle -general ledger and reporting cycle -human resources cycle -revenue cycle general ledger and reporting cycle The transaction cycle that includes product design is known as the -revenue cycle. -expenditure cycle. -production cycle. -financing cycle. production cycle. An accounting information system must be able to perform which of the following tasks? -collect transaction data -all of the above -provide adequate controls -process transaction data -all of the above When the AIS provides information in a timely and accurate manner, it stands as an example of -all of the above -improved decision making. -improving the quality and reducing the costs of products or services. -improving efficiency. all of the above Accounting information plays major roles in managerial decision making by -all of the above -identifying situations requiring management action. -reducing uncertainty. -providing a basis for choosing among alternative actions. all of the above A well-designed AIS can improve decision making in an organization. Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making. -An AIS provides to its users an abundance of information without any filtering or condensing of such information. -An AIS identifies situations requiring management action. -An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action. -An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making. An AIS provides to its users an abundance of information without any filtering or condensing of such information. Which of the following is not an example of how an AIS adds value to an organization? -Patient information at a hospital are encrypted and made only available on the hospital's network to healthcare professional with an access code. -Patient information at a hospital are encrypted and made only available on the hospital's network to the patient with an access code. -Patient information at a hospital are encrypted and made only available on the hospital's webpage to anyone with access to a search engine -Patient billing information at a hospital are encrypted and made only available on the hospital's network to insurance companies with an access code. Patient information at a hospital are encrypted and made only available on the hospital's webpage to anyone with access to a search engine An AIS that makes information more easily accessible and more widely available is likely to increase pressure for -centralization and autonomy. -Data is more useful in decision making than information. -decentralization and autonomy. -centralization and defined procedures. decentralization and autonomy. With respect to data flow diagrams, which of the following statements are true? (Check all that apply) -DFDs are subdivided into successively lower levels in order to provide ever-increasing amounts of detail. -If two or more data flows move together, two lines are used. If the data flow separately, a single line is used. -A context diagram is the lowest-level DFD; it provides a low-level view of a system. -In order to provide more information, a portion of a level zero diagram ( such as process 2.0) can be dividend into sub-processes (for example, 2.1, 2.2, and 2.3, if there are three sub-processes). -DFDs are subdivided into successively lower levels in order to provide ever-increasing amounts of detail. -In order to provide more information, a portion of a level zero diagram ( such as process 2.0) can be dividend into sub-processes (for example, 2.1, 2.2, and 2.3, if there are three sub-processes). Which of the following are data flow diagram preparation guidelines? (Check all that apply) -Give each process a sequential number to help readers navigate among the DFD levels Include all error paths, no matter how unimportant they may seem. -All transformation processes should have one or more incoming data flows, but may not have an outgoing data flow. -Include all relevant data elements so that they are considered during the system development -Give each process a sequential number to help readers navigate among the DFD levels -Include all relevant data elements so that they are considered during the system development Which of the following are data flow diagram preparation guidelines (Check all that apply) -Processes and data stores typically take their names from the data inflows or outflows -In a DFD, you should always show how the system starts and stops -Data flows can only move in one direction -All data flows should come from, and go to, a transformation process, a data store, or a source or destination -Processes and data stores typically take their names from the data inflows or outflows -All data flows should come from, and go to, a transformation process, a data store, or a source or destination Which of the following are flowchart preparation guidelines? (Check all that apply.) -In document flowcharts, divide the flowchart into columns with labels, clearly label all symbols, and use arrowheads on all the flow lines. -There is no need to identify departments, job functions, or external parties on the flowchart. -Develop an understanding of the system using tools, such as interviews or questionnaires, or by walking through the system transactions. -It is usually not necessary to show procedures and processes in the order they take place. -Design the flowchart so that data flow from bottom to top and from right to left. -In document flowcharts, divide the flowchart into columns with labels, clearly label all symbols, and use arrowheads on all the flow lines. -Develop an understanding of the system using tools, such as interviews or questionnaires, or by walking through the system transactions. Which of the following are flowchart preparation guidelines? (Check all that apply.) -Show data entered into, or retrieved from, a database as passing through a processing operation (computer program) first. -Do not indicate on the flowchart who prepared the flowchart. -Show the final disposition of all the documents. -Show where documents or processes originate, and data are processed, but do not show where data are stored or sent. -Identify the business processes, documents, data flows, and data processing procedures to be flowcharted. -Show data entered into, or retrieved from, a database as passing through a processing operation (computer program) first. -Show the final disposition of all the documents. -Identify the business processes, documents, data flows, and data processing procedures to be flowcharted. With respect to flowcharts, which of the following statements are true? (Check all that apply.) -Flowcharts can be used to analyze how to improve business processes, but not document flows -A system flowchart describes the specific logic used to perform a process shown on a program flowchart. -Document flowcharts trace a document for its cradle to its grave, showing everything that happens as it flows through the system -An internal control flowchart is not very helpful in spotting system weaknesses or inefficiencies. -An internal control flowchart can be used to describe, analyze, and evaluate internal control strengths. -Document flowcharts trace a document for its cradle to its grave, showing everything that happens as it flows through the system -An internal control flowchart can be used to describe, analyze, and evaluate internal control strengths.