Test Bank Complete_
Accounting Information Systems: A Practitioner Emphasis 7th Edition
By Cynthia D. Heagy & Constance M. Lehmann
All Chapter 1-15| Latest Version With Verified Answers| Rated A+
From: [Bestmaxsolutions.stuvia
,CHAPTER 1: SIGNIFICANCE OF ACCOUNTING INFORMATION SYSTEMS AND THE ACCOUNTANT’S ROLE ________ 3
CHAPTER 2: ACCOUNTING SYSTEMS DOCUMENTATION. _____________________________________________ 13
CHAPTER 3: ESSENTIAL ELEMENTS AND BASIC ACTIVITIES OF ACCOUNTING SYSTEMS _____________________ 29
CHAPTER 4: DATA FLOWS, ACTIVITIES, AND STRUCTURE OF ACCOUNTING SYSTEMS ______________________ 46
CHAPTER 5: REPORTING PROCESS, CODING METHODS, AND AUDIT TRAILS ______________________________ 58
CHAPTER 6: INTERNAL CONTROL AND RISK ASSESSMENT ____________________________________________ 72
CHAPTER 7: CONTROL ACTIVITIES AND MONITORING. _______________________________________________ 92
CHAPTER 8: THE FINANCIAL PROCESS ____________________________________________________________ 113
CHAPTER 9: THE REVENUE PROCESS _____________________________________________________________ 127
CHAPTER 10: THE PURCHASING PROCESS _________________________________________________________ 141
CHAPTER 11: THE INVENTORY PROCESS __________________________________________________________ 158
CHAPTER 12: DATABASE STRUCTURE OF ACCOUNTING SYSTEMS _____________________________________ 169
CHAPTER 13: DEVELOPING A RELATIONAL DATABASE FOR AN ACCOUNTING INFORMATION SYSTEM _______ 181
CHAPTER 14: ELECTRONIC BUSINESS _____________________________________________________________ 195
CHAPTER 15: AIS SELECTION AND IMPLEMENTATION _______________________________________________ 207
,CHAPTER 1: SIGNIFICANCE OF ACCOUNTING INFORMATION SYSTEMS AND THE ACCOUNTANT’S ROLE
CYNTHIA D. HEAGY: ACCOUNTING INFORMATION SYSTEMS: A PRACTITIONER EMPHASIS 7TH EDITION, TEST BANK
MULTIPLE CHOICE QUESTIONS
1. WHICH OF THE FOLLOWING IS NOT ACCOUNTING INFORMATION?
A. TOTAL DIRECT/INDIRECT LABOR HOURS
B. DELIVERY EQUIPMENT COST
C. COMPUTER TRAINING SCHEDULE
D. NEXT YEAR’S SALES BUDGET
ANS: C
A COMPUTER TRAINING SCHEDULE DOES NOT DIRECTLY INVOLVE FINANCIAL TRANSACTIONS OR
ECONOMIC EVENTS, MAKING IT UNRELATED TO ACCOUNTING INFORMATION. ACCOUNTING
INFORMATION GENERALLY INCLUDES DATA ON LABOR, EQUIPMENT COSTS, AND SALES
FORECASTS, WHICH DIRECTLY IMPACT FINANCIAL DECISION-MAKING.
2. IN WHAT TERMS CAN ACCOUNTING INFORMATION BE EXPRESSED?
A. UNITS, PERCENTAGES, AND MONEY
B. MONEY, RATIOS, AND TEXT
C. MONEY, PERCENTAGES, AND TEXT
D. UNITS, PERCENTAGES, AND TEXT
ANS: A
ACCOUNTING INFORMATION IS OFTEN EXPRESSED IN MONETARY TERMS (E.G., DOLLARS),
PERCENTAGES (E.G., PROFIT MARGINS), AND UNITS (E.G., NUMBER OF UNITS SOLD). THESE TERMS
HELP COMMUNICATE FINANCIAL AND OPERATIONAL PERFORMANCE.
3. WHICH OF THE FOLLOWING STATEMENTS DOES NOT APPLY TO ACCOUNTING INFORMATION?
A. ACCOUNTING INFORMATION MEETS THE LEGITIMATE NEEDS OF EXTERNAL USERS.
B. ACCOUNTING INFORMATION IS GENERATED BY ONLY EXTERNAL ACTIVITIES.
C. ACCOUNTING INFORMATION COMMUNICATES AMONG PARTIES TRANSACTING BUSINESS WITH
ONE ANOTHER.
D. ACCOUNTING INFORMATION PROVIDES A BASIS FOR INFORMED MANAGEMENT DECISION
MAKING.
ANS: B
ACCOUNTING INFORMATION IS NOT LIMITED TO EXTERNAL ACTIVITIES; IT IS ALSO GENERATED
FROM INTERNAL ACTIVITIES LIKE TRANSACTIONS, PAYROLL, AND EXPENSES. WHILE EXTERNAL
,DATA (E.G., SALES) IS IMPORTANT, INTERNAL DATA (E.G., OPERATIONAL COSTS) IS JUST AS
RELEVANT FOR ACCOUNTING PURPOSES.
4. WHICH OF THE FOLLOWING GROUPS REQUIRES ACCOUNTING DATA WITH THE BROADEST
PERSPECTIVE?
A. ENTRY-LEVEL MANAGERS
B. FIRST-LEVEL MANAGERS
C. MIDDLE-LEVEL MANAGERS
D. UPPER-LEVEL MANAGERS
ANS: D
UPPER-LEVEL MANAGERS TYPICALLY NEED A COMPREHENSIVE UNDERSTANDING OF FINANCIAL
DATA FROM BOTH INTERNAL AND EXTERNAL SOURCES TO MAKE STRATEGIC DECISIONS. THEY
MUST LOOK AT THE OVERALL HEALTH OF THE COMPANY AND HOW VARIOUS DEPARTMENTS ARE
PERFORMING, REQUIRING A BROADER SCOPE OF INFORMATION.
5. WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE?
A. AN ACCOUNTING SYSTEM DEALS PRIMARILY WITH ECONOMIC EVENTS THAT AFFECT AN
ORGANIZATION’S ACCOUNTING EQUATION.
B. SOME ACCOUNTING EVENTS MAY MATURE INTO ACCOUNTING TRANSACTIONS WHILE OTHERS
MAY NOT.
C. ONLY ACCOUNTING EVENTS THAT HAVE MATURED INTO ACCOUNTING TRANSACTIONS MUST BE
CAPTURED AND REPORTED BY THE ACCOUNTING SYSTEM.
D. MOST ACCOUNTING TRANSACTIONS RESULT FROM AN ORGANIZATION’S DAY-TO-DAY
OPERATIONS.
ANS: C
THIS STATEMENT IS FALSE BECAUSE THE ACCOUNTING SYSTEM TRACKS BOTH MATURED
TRANSACTIONS AND EVENTS THAT MIGHT EVENTUALLY LEAD TO TRANSACTIONS, SUCH AS
CUSTOMER ORDERS OR THE INCURRENCE OF EXPENSES. IT CAPTURES AND REPORTS EVENTS THAT
MAY LATER BE RECOGNIZED IN THE FINANCIAL STATEMENTS.
6. FROM WHAT DO ACCOUNTING TRANSACTIONS RESULT?
A. BOTH EXTERNAL AND INTERNAL ACTIVITIES
B. EXTERNAL ACTIVITIES
C. INTERNAL ACTIVITIES
D. NEITHER EXTERNAL NOR INTERNAL ACTIVITIES
ANS: A
ACCOUNTING TRANSACTIONS CAN RESULT FROM BOTH EXTERNAL ACTIVITIES (SUCH AS SALES TO
CUSTOMERS) AND INTERNAL ACTIVITIES (SUCH AS EMPLOYEE WAGES OR INTERNAL TRANSFERS).
,BOTH TYPES OF EVENTS HAVE FINANCIAL IMPLICATIONS THAT NEED TO BE RECORDED IN THE
ACCOUNTING SYSTEM.
7. WHICH OF THE FOLLOWING STATEMENTS ABOUT A MANUAL ACCOUNTING SYSTEM IS NOT
CORRECT?
A. VERY LITTLE DATA BEYOND THE BASIC ELEMENTS ARE INCLUDED.
B. DATA ARE STORED IN ONLY ONE LOCATION.
C. ERRORS AND INCONSISTENCIES ARE COMMON.
D. DATA ARE PROCESSED FOR EXTERNAL REPORTING.
ANS: B
IN A MANUAL ACCOUNTING SYSTEM, DATA MIGHT BE RECORDED IN MULTIPLE LOCATIONS, SUCH
AS LEDGERS, JOURNALS, AND NOTEBOOKS. THE LIMITATION IS TYPICALLY THE LACK OF
INTEGRATION, NOT DATA STORAGE IN A SINGLE LOCATION.
8. FOR DECISION-MAKING PURPOSES, MANAGERS REQUIRE DATA FROM WHICH SOURCE(S) AND IN
WHICH TERMS?
A. INTERNAL AND EXTERNAL SOURCES IN ONLY MONETARY TERMS
B. INTERNAL SOURCES IN NON-MONETARY TERMS AND EXTERNAL SOURCES IN MONETARY TERMS
C. INTERNAL SOURCES IN NON-MONETARY TERMS AND EXTERNAL SOURCES IN MONETARY TERMS
D. INTERNAL AND EXTERNAL SOURCES IN BOTH MONETARY AND NON-MONETARY TERMS
ANS: D
MANAGERS OFTEN NEED DATA FROM BOTH INTERNAL (E.G., OPERATIONAL DATA) AND EXTERNAL
(E.G., MARKET TRENDS) SOURCES IN MONETARY AND NON-MONETARY TERMS. THIS COMBINATION
HELPS MAKE WELL-ROUNDED DECISIONS THAT CONSIDER BOTH FINANCIAL AND OPERATIONAL
ASPECTS.
9. WHICH OF THE FOLLOWING BEST DESCRIBES A MANUAL ACCOUNTING SYSTEM?
A. SLOW AND PRONE TO ERROR
B. LIMITED IN THE VOLUME OF DATA IT CAN PROCESS
C. FAST AND ACCURATE
D. A AND C, BUT NOT B
E. A AND B, BUT NOT C
ANS: E
A MANUAL ACCOUNTING SYSTEM IS SLOW BECAUSE IT REQUIRES MANUAL DATA ENTRY AND
PROCESSING, AND IT IS PRONE TO ERRORS DUE TO HUMAN INVOLVEMENT. ADDITIONALLY, IT
STRUGGLES TO PROCESS LARGE VOLUMES OF DATA EFFICIENTLY.
10. WHAT ESSENTIAL FUNCTIONS ARE PERFORMED BY COMPUTER HARDWARE?
A. INPUT, PROCESSING, OUTPUT, AND INSTRUCTION OF DATA
, B. INPUT, STORAGE, AND INSTRUCTION OF DATA, AND DECISION MAKING
C. INPUT, PROCESSING, STORAGE, AND OUTPUT OF DATA
D. INPUT, STORAGE, AND OUTPUT OF DATA AND DECISION MAKING
ANS: C
COMPUTER HARDWARE IS RESPONSIBLE FOR THE CORE FUNCTIONS OF INPUT (DATA ENTRY),
PROCESSING (CALCULATIONS), STORAGE (DATA STORAGE), AND OUTPUT (DISPLAY OF RESULTS).
DECISION-MAKING IS A FUNCTION TYPICALLY HANDLED BY SOFTWARE OR HUMAN USERS BASED
ON THE PROCESSED DATA.
11. WHAT ARE THE ROLES OF PEOPLE IN COMPUTERIZED ACCOUNTING SYSTEMS?
A. TO MONITOR THE PROCESSING OF DATA AND TO INTERPRET DATA
B. TO MANUFACTURE HARDWARE, WRITE SOFTWARE, AND MAINTAIN THE ACCOUNTING SYSTEM
C. TO SUPERVISE AND CONTROL THE ACCOUNTING FUNCTION
D. A AND B, BUT NOT C
E. A, B, AND C
ANS: E
PEOPLE IN COMPUTERIZED ACCOUNTING SYSTEMS PLAY VARIOUS ROLES: MONITORING AND
INTERPRETING DATA, WRITING SOFTWARE, MAINTAINING SYSTEMS, AND OVERSEEING THE
ACCOUNTING FUNCTION TO ENSURE PROPER DATA PROCESSING AND CONTROL.
12. WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE?
A. TRUSTWORTHY ACCOUNTING INFORMATION AND RELIABLE COMPUTER EQUIPMENT CAN
PREVENT THE FAILURE OF AN ORGANIZATION, EVEN IF INCOMPETENT AND DISHONEST PEOPLE
CARRY OUT THE ACCOUNTING FUNCTION.
B. A GOOD ACCOUNTING SYSTEM MAY NOT GUARANTEE AN ORGANIZATION’S SUCCESS, BUT A
BAD ONE CAN DESTROY AN ORGANIZATION.
C. THE DIFFERENCE BETWEEN GOOD AND BAD ACCOUNTING SYSTEMS LIES IN THE WAY THEY ARE
DEVELOPED, OPERATED, AND CONTROLLED.
D. AN ACCOUNTING SYSTEM IS EXPECTED TO CARRY OUT ITS TASKS WITHOUT THE NEED FOR
UPPER MANAGEMENT’S DAY-TO-DAY CONCERN.
ANS: A
WHILE TRUSTWORTHY INFORMATION AND RELIABLE EQUIPMENT ARE ESSENTIAL, A COMPETENT,
HONEST TEAM IS NECESSARY TO MANAGE AND INTERPRET THAT DATA. NO SYSTEM CAN PREVENT
FAILURE IF THE PEOPLE INVOLVED ARE INCOMPETENT OR DISHONEST.
13. WHO ARE THE USERS OF ACCOUNTING SYSTEMS?
A. FINANCIAL ACCOUNTANTS, MANAGERIAL ACCOUNTANTS, AND SYSTEM DEVELOPERS
B. FINANCIAL ACCOUNTANTS, MANAGERIAL ACCOUNTANTS, SYSTEM DEVELOPERS, AND TAX
ACCOUNTANTS
Accounting Information Systems: A Practitioner Emphasis 7th Edition
By Cynthia D. Heagy & Constance M. Lehmann
All Chapter 1-15| Latest Version With Verified Answers| Rated A+
From: [Bestmaxsolutions.stuvia
,CHAPTER 1: SIGNIFICANCE OF ACCOUNTING INFORMATION SYSTEMS AND THE ACCOUNTANT’S ROLE ________ 3
CHAPTER 2: ACCOUNTING SYSTEMS DOCUMENTATION. _____________________________________________ 13
CHAPTER 3: ESSENTIAL ELEMENTS AND BASIC ACTIVITIES OF ACCOUNTING SYSTEMS _____________________ 29
CHAPTER 4: DATA FLOWS, ACTIVITIES, AND STRUCTURE OF ACCOUNTING SYSTEMS ______________________ 46
CHAPTER 5: REPORTING PROCESS, CODING METHODS, AND AUDIT TRAILS ______________________________ 58
CHAPTER 6: INTERNAL CONTROL AND RISK ASSESSMENT ____________________________________________ 72
CHAPTER 7: CONTROL ACTIVITIES AND MONITORING. _______________________________________________ 92
CHAPTER 8: THE FINANCIAL PROCESS ____________________________________________________________ 113
CHAPTER 9: THE REVENUE PROCESS _____________________________________________________________ 127
CHAPTER 10: THE PURCHASING PROCESS _________________________________________________________ 141
CHAPTER 11: THE INVENTORY PROCESS __________________________________________________________ 158
CHAPTER 12: DATABASE STRUCTURE OF ACCOUNTING SYSTEMS _____________________________________ 169
CHAPTER 13: DEVELOPING A RELATIONAL DATABASE FOR AN ACCOUNTING INFORMATION SYSTEM _______ 181
CHAPTER 14: ELECTRONIC BUSINESS _____________________________________________________________ 195
CHAPTER 15: AIS SELECTION AND IMPLEMENTATION _______________________________________________ 207
,CHAPTER 1: SIGNIFICANCE OF ACCOUNTING INFORMATION SYSTEMS AND THE ACCOUNTANT’S ROLE
CYNTHIA D. HEAGY: ACCOUNTING INFORMATION SYSTEMS: A PRACTITIONER EMPHASIS 7TH EDITION, TEST BANK
MULTIPLE CHOICE QUESTIONS
1. WHICH OF THE FOLLOWING IS NOT ACCOUNTING INFORMATION?
A. TOTAL DIRECT/INDIRECT LABOR HOURS
B. DELIVERY EQUIPMENT COST
C. COMPUTER TRAINING SCHEDULE
D. NEXT YEAR’S SALES BUDGET
ANS: C
A COMPUTER TRAINING SCHEDULE DOES NOT DIRECTLY INVOLVE FINANCIAL TRANSACTIONS OR
ECONOMIC EVENTS, MAKING IT UNRELATED TO ACCOUNTING INFORMATION. ACCOUNTING
INFORMATION GENERALLY INCLUDES DATA ON LABOR, EQUIPMENT COSTS, AND SALES
FORECASTS, WHICH DIRECTLY IMPACT FINANCIAL DECISION-MAKING.
2. IN WHAT TERMS CAN ACCOUNTING INFORMATION BE EXPRESSED?
A. UNITS, PERCENTAGES, AND MONEY
B. MONEY, RATIOS, AND TEXT
C. MONEY, PERCENTAGES, AND TEXT
D. UNITS, PERCENTAGES, AND TEXT
ANS: A
ACCOUNTING INFORMATION IS OFTEN EXPRESSED IN MONETARY TERMS (E.G., DOLLARS),
PERCENTAGES (E.G., PROFIT MARGINS), AND UNITS (E.G., NUMBER OF UNITS SOLD). THESE TERMS
HELP COMMUNICATE FINANCIAL AND OPERATIONAL PERFORMANCE.
3. WHICH OF THE FOLLOWING STATEMENTS DOES NOT APPLY TO ACCOUNTING INFORMATION?
A. ACCOUNTING INFORMATION MEETS THE LEGITIMATE NEEDS OF EXTERNAL USERS.
B. ACCOUNTING INFORMATION IS GENERATED BY ONLY EXTERNAL ACTIVITIES.
C. ACCOUNTING INFORMATION COMMUNICATES AMONG PARTIES TRANSACTING BUSINESS WITH
ONE ANOTHER.
D. ACCOUNTING INFORMATION PROVIDES A BASIS FOR INFORMED MANAGEMENT DECISION
MAKING.
ANS: B
ACCOUNTING INFORMATION IS NOT LIMITED TO EXTERNAL ACTIVITIES; IT IS ALSO GENERATED
FROM INTERNAL ACTIVITIES LIKE TRANSACTIONS, PAYROLL, AND EXPENSES. WHILE EXTERNAL
,DATA (E.G., SALES) IS IMPORTANT, INTERNAL DATA (E.G., OPERATIONAL COSTS) IS JUST AS
RELEVANT FOR ACCOUNTING PURPOSES.
4. WHICH OF THE FOLLOWING GROUPS REQUIRES ACCOUNTING DATA WITH THE BROADEST
PERSPECTIVE?
A. ENTRY-LEVEL MANAGERS
B. FIRST-LEVEL MANAGERS
C. MIDDLE-LEVEL MANAGERS
D. UPPER-LEVEL MANAGERS
ANS: D
UPPER-LEVEL MANAGERS TYPICALLY NEED A COMPREHENSIVE UNDERSTANDING OF FINANCIAL
DATA FROM BOTH INTERNAL AND EXTERNAL SOURCES TO MAKE STRATEGIC DECISIONS. THEY
MUST LOOK AT THE OVERALL HEALTH OF THE COMPANY AND HOW VARIOUS DEPARTMENTS ARE
PERFORMING, REQUIRING A BROADER SCOPE OF INFORMATION.
5. WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE?
A. AN ACCOUNTING SYSTEM DEALS PRIMARILY WITH ECONOMIC EVENTS THAT AFFECT AN
ORGANIZATION’S ACCOUNTING EQUATION.
B. SOME ACCOUNTING EVENTS MAY MATURE INTO ACCOUNTING TRANSACTIONS WHILE OTHERS
MAY NOT.
C. ONLY ACCOUNTING EVENTS THAT HAVE MATURED INTO ACCOUNTING TRANSACTIONS MUST BE
CAPTURED AND REPORTED BY THE ACCOUNTING SYSTEM.
D. MOST ACCOUNTING TRANSACTIONS RESULT FROM AN ORGANIZATION’S DAY-TO-DAY
OPERATIONS.
ANS: C
THIS STATEMENT IS FALSE BECAUSE THE ACCOUNTING SYSTEM TRACKS BOTH MATURED
TRANSACTIONS AND EVENTS THAT MIGHT EVENTUALLY LEAD TO TRANSACTIONS, SUCH AS
CUSTOMER ORDERS OR THE INCURRENCE OF EXPENSES. IT CAPTURES AND REPORTS EVENTS THAT
MAY LATER BE RECOGNIZED IN THE FINANCIAL STATEMENTS.
6. FROM WHAT DO ACCOUNTING TRANSACTIONS RESULT?
A. BOTH EXTERNAL AND INTERNAL ACTIVITIES
B. EXTERNAL ACTIVITIES
C. INTERNAL ACTIVITIES
D. NEITHER EXTERNAL NOR INTERNAL ACTIVITIES
ANS: A
ACCOUNTING TRANSACTIONS CAN RESULT FROM BOTH EXTERNAL ACTIVITIES (SUCH AS SALES TO
CUSTOMERS) AND INTERNAL ACTIVITIES (SUCH AS EMPLOYEE WAGES OR INTERNAL TRANSFERS).
,BOTH TYPES OF EVENTS HAVE FINANCIAL IMPLICATIONS THAT NEED TO BE RECORDED IN THE
ACCOUNTING SYSTEM.
7. WHICH OF THE FOLLOWING STATEMENTS ABOUT A MANUAL ACCOUNTING SYSTEM IS NOT
CORRECT?
A. VERY LITTLE DATA BEYOND THE BASIC ELEMENTS ARE INCLUDED.
B. DATA ARE STORED IN ONLY ONE LOCATION.
C. ERRORS AND INCONSISTENCIES ARE COMMON.
D. DATA ARE PROCESSED FOR EXTERNAL REPORTING.
ANS: B
IN A MANUAL ACCOUNTING SYSTEM, DATA MIGHT BE RECORDED IN MULTIPLE LOCATIONS, SUCH
AS LEDGERS, JOURNALS, AND NOTEBOOKS. THE LIMITATION IS TYPICALLY THE LACK OF
INTEGRATION, NOT DATA STORAGE IN A SINGLE LOCATION.
8. FOR DECISION-MAKING PURPOSES, MANAGERS REQUIRE DATA FROM WHICH SOURCE(S) AND IN
WHICH TERMS?
A. INTERNAL AND EXTERNAL SOURCES IN ONLY MONETARY TERMS
B. INTERNAL SOURCES IN NON-MONETARY TERMS AND EXTERNAL SOURCES IN MONETARY TERMS
C. INTERNAL SOURCES IN NON-MONETARY TERMS AND EXTERNAL SOURCES IN MONETARY TERMS
D. INTERNAL AND EXTERNAL SOURCES IN BOTH MONETARY AND NON-MONETARY TERMS
ANS: D
MANAGERS OFTEN NEED DATA FROM BOTH INTERNAL (E.G., OPERATIONAL DATA) AND EXTERNAL
(E.G., MARKET TRENDS) SOURCES IN MONETARY AND NON-MONETARY TERMS. THIS COMBINATION
HELPS MAKE WELL-ROUNDED DECISIONS THAT CONSIDER BOTH FINANCIAL AND OPERATIONAL
ASPECTS.
9. WHICH OF THE FOLLOWING BEST DESCRIBES A MANUAL ACCOUNTING SYSTEM?
A. SLOW AND PRONE TO ERROR
B. LIMITED IN THE VOLUME OF DATA IT CAN PROCESS
C. FAST AND ACCURATE
D. A AND C, BUT NOT B
E. A AND B, BUT NOT C
ANS: E
A MANUAL ACCOUNTING SYSTEM IS SLOW BECAUSE IT REQUIRES MANUAL DATA ENTRY AND
PROCESSING, AND IT IS PRONE TO ERRORS DUE TO HUMAN INVOLVEMENT. ADDITIONALLY, IT
STRUGGLES TO PROCESS LARGE VOLUMES OF DATA EFFICIENTLY.
10. WHAT ESSENTIAL FUNCTIONS ARE PERFORMED BY COMPUTER HARDWARE?
A. INPUT, PROCESSING, OUTPUT, AND INSTRUCTION OF DATA
, B. INPUT, STORAGE, AND INSTRUCTION OF DATA, AND DECISION MAKING
C. INPUT, PROCESSING, STORAGE, AND OUTPUT OF DATA
D. INPUT, STORAGE, AND OUTPUT OF DATA AND DECISION MAKING
ANS: C
COMPUTER HARDWARE IS RESPONSIBLE FOR THE CORE FUNCTIONS OF INPUT (DATA ENTRY),
PROCESSING (CALCULATIONS), STORAGE (DATA STORAGE), AND OUTPUT (DISPLAY OF RESULTS).
DECISION-MAKING IS A FUNCTION TYPICALLY HANDLED BY SOFTWARE OR HUMAN USERS BASED
ON THE PROCESSED DATA.
11. WHAT ARE THE ROLES OF PEOPLE IN COMPUTERIZED ACCOUNTING SYSTEMS?
A. TO MONITOR THE PROCESSING OF DATA AND TO INTERPRET DATA
B. TO MANUFACTURE HARDWARE, WRITE SOFTWARE, AND MAINTAIN THE ACCOUNTING SYSTEM
C. TO SUPERVISE AND CONTROL THE ACCOUNTING FUNCTION
D. A AND B, BUT NOT C
E. A, B, AND C
ANS: E
PEOPLE IN COMPUTERIZED ACCOUNTING SYSTEMS PLAY VARIOUS ROLES: MONITORING AND
INTERPRETING DATA, WRITING SOFTWARE, MAINTAINING SYSTEMS, AND OVERSEEING THE
ACCOUNTING FUNCTION TO ENSURE PROPER DATA PROCESSING AND CONTROL.
12. WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE?
A. TRUSTWORTHY ACCOUNTING INFORMATION AND RELIABLE COMPUTER EQUIPMENT CAN
PREVENT THE FAILURE OF AN ORGANIZATION, EVEN IF INCOMPETENT AND DISHONEST PEOPLE
CARRY OUT THE ACCOUNTING FUNCTION.
B. A GOOD ACCOUNTING SYSTEM MAY NOT GUARANTEE AN ORGANIZATION’S SUCCESS, BUT A
BAD ONE CAN DESTROY AN ORGANIZATION.
C. THE DIFFERENCE BETWEEN GOOD AND BAD ACCOUNTING SYSTEMS LIES IN THE WAY THEY ARE
DEVELOPED, OPERATED, AND CONTROLLED.
D. AN ACCOUNTING SYSTEM IS EXPECTED TO CARRY OUT ITS TASKS WITHOUT THE NEED FOR
UPPER MANAGEMENT’S DAY-TO-DAY CONCERN.
ANS: A
WHILE TRUSTWORTHY INFORMATION AND RELIABLE EQUIPMENT ARE ESSENTIAL, A COMPETENT,
HONEST TEAM IS NECESSARY TO MANAGE AND INTERPRET THAT DATA. NO SYSTEM CAN PREVENT
FAILURE IF THE PEOPLE INVOLVED ARE INCOMPETENT OR DISHONEST.
13. WHO ARE THE USERS OF ACCOUNTING SYSTEMS?
A. FINANCIAL ACCOUNTANTS, MANAGERIAL ACCOUNTANTS, AND SYSTEM DEVELOPERS
B. FINANCIAL ACCOUNTANTS, MANAGERIAL ACCOUNTANTS, SYSTEM DEVELOPERS, AND TAX
ACCOUNTANTS
