TEST BANK For Accounting Information Systems, 3rd Edition by Vernon Richardson, Verified Chapters 1 - 18, Complete

TABLE OF CONTENTS Ch. 1 Accounting Information Systems and Firm Value Ch. 2 Accountants as Business Analysts Ch. 3 Data Modeling Ch. 4 Relational Databases and Enterprise Systems Ch. 5 Sales and Collections Business Process Ch. 6 Purchases and Payments Business Process Ch. 7 Conversion Business Process Ch. 8 Integrated Project Ch. 9 Reporting Processes and eXtensible Business Reporting Language (XBRL) Ch. 10 Data Analytics in Accounting: Concepts and the AMPS Model Ch. 11 Data Analytics in Accounting: Tools and Practice Ch. 12 Emerging Technologies: Blockchain and AI Automation Ch. 13 Accounting Information Systems and Internal Controls Ch. 14 Information Security and Computer Fraud Ch. 15 Monitoring and Auditing AIS Ch. 16 The Balanced Scorecard, Business Model Canvas, and Business Value of Information Technology Ch. 17 Evaluating AIS Investments Ch. 18 Systems Development and Project Management for AIS ACCOUNTING INFORMATION SYSTEMS (RICHARDSON) Page 3 Chapter 1 Accounting Information Systems and Firm Value 1) Accounting and Finance is a primary activity in the value chain. ANSWER: FALSE Diff: 1 Topic: The Value Chain and Accounting Information Systems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 2) Accounting Information Systems at this date are all computerized. ANSWER: FALSE Diff: 1 Topic: Data versus Information Learning Objective: 01-02 Distinguish among data, information, and an information system. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 3) Business value includes all those items, events and interactions that determine the financial health and well-being of the firm. ANSWER: TRUE Diff: 1 Topic: The Value Chain and Accounting Information Systems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 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. ANSWER: FALSE Diff: 1 Topic: Role of Accountants in Accounting Information Systems Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain certifications related to accounting information systems. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 5) The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those performing IT audits. ANSWER: TRUE Diff: 1 Topic: Role of Accountants in Accounting Information Systems Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain certifications related to accounting information systems. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON) Page 4 Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making ACCOUNTING INFORMATION SYSTEMS (RICHARDSON) Page 5 6) Information is defined as being data organized in a meaningful way that is useful to the user. ANSWER: TRUE Diff: 1 Topic: Data versus Information Learning Objective: 01-02 Distinguish among data, information, and an information system. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 7) Data is defined as being information organized in a meaningful way that is useful to the user. ANSWER: FALSE Diff: 1 Topic: Data versus Information Learning Objective: 01-02 Distinguish among data, information, and an information system. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 8) A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem. ANSWER: TRUE Diff: 1 Topic: The Value Chain and Accounting Information Systems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 9) A value chain is defined as the flow of materials, information, payments, and services from customer to supplier. ANSWER: FALSE Diff: 1 Topic: The Value Chain and Accounting Information Systems Learning Objective: 01-04 Describe how business processes affect the firm's value chain. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 10) Relevant information is that information that is free from bias and error. ANSWER: FALSE Diff: 1 Topic: Definition of Accounting Information Systems; Attributes of Useful Information Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making ACCOUNTING INFORMATION SYSTEMS (RICHARDSON) Page 6 11) The characteristics of relevant information include predictive value, feedback value and timeliness. ANSWER: TRUE Diff: 1 Topic: Definition of Accounting Information Systems; Attributes of Useful Information Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 12) The characteristics of reliable information are that the information is verifiable, without bias and timely. ANSWER: FALSE Diff: 1 Topic: Definition of Accounting Information Systems; Attributes of Useful Information Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 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. ANSWER: TRUE Diff: 1 Topic: Definition of Accounting Information Systems; Attributes of Useful Information Learning Objective: 01-02 Distinguish among data, information, and an information system. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 14) The main financial benefit of Customer Relationship Management practices reduces the cost of goods sold. ANSWER: FALSE Diff: 1 Topic: AIS, Firm Profitability, and Stock Prices Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 15) An efficient Enterprise System can significantly lower the cost of support processes included in sales, general, and administrative expenses. ANSWER: TRUE