ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
TEST BANK For Accounting Information Systems,
3rd Edition by Vernon Richardson,
Verified Chapters 1 - 18, Complete
Page 1
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
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
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
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.
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
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
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
Page 4
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
12) The bcharacteristics bof breliable binformation bare bthat bthe binformation bis bverifiable, bwithout bbias
band btimely.
ANSWER: b FALSE
Diff: b1
Topic: b Definition bof bAccounting bInformation bSystems; bAttributes bof bUseful bInformation
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
13) Information boverload bis bdefined bas bthe bdifficulty ba bperson bfaces bin bunderstanding ba bproblem
band bmaking ba bdecision bas ba bconsequence bof btoo bmuch binformation.
ANSWER: b TRUE
Diff: b1
Topic: b Definition bof bAccounting bInformation bSystems; bAttributes bof bUseful
bInformation bLearning bObjective: b 01-02 bDistinguish bamong bdata, binformation, band ban
binformation bsystem. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
14) The bmain bfinancial bbenefit bof bCustomer bRelationship bManagement bpractices breduces bthe bcost
bof bgoods bsold.
ANSWER: b FALSE
Diff: b1
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
15) An befficient bEnterprise bSystem bcan bsignificantly blower bthe bcost bof bsupport bprocesses
bincluded bin bsales, bgeneral, band badministrative bexpenses.
ANSWER: b TRUE
Diff: b1
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
16) An baccounting binformation bsystem b(AIS) bis bdefined bas bbeing ban binformation bsystem bthat
brecords, bprocesses band breports bon btransactions bto bprovide bfinancial band bnonfinancial
binformation bfor bdecision bmaking band bcontrol.
ANSWER: b TRUE
Diff: b1
Topic: b Definition bof bAccounting bInformation bSystems
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
17) An benterprise bsystem bis ba bcentralized bdatabase bthat bcollects bdata bfrom bthroughout bthe bfirm.
bThis bincludes bdata bfrom borders, bcustomers, bsales, binventory band bemployees.
ANSWER: b TRUE
Diff: b1
Topic: b AIS band bInternal bBusiness bProcesses
Learning bObjective: b 01-06 bDescribe bhow bAIS bassists bthe bfirm's binternal bbusiness
bprocesses. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
18) Outbound blogistics bare bthe bactivities bassociated bwith breceiving band bstoring braw bmaterials band
bother bpartially bcompleted bmaterials, band bdistributing bthose bmaterials bto bmanufacturing bwhen
band bwhere bthey bare bneeded.
ANSWER: b FALSE
Diff: b1
Topic: b The bValue bChain band bAccounting bInformation bSystems
Learning bObjective: b 01-04 bDescribe bhow bbusiness bprocesses baffect bthe bfirm's bvalue
bchain. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
19) Service bActivities bas bdefined bin bthe bvalue bchain bare bthose bactivities bthat bprovide bthe bsupport
bof bcustomers bafter bthe bproducts band bservices bare bsold bto bthem b(e.g. bwarranty brepairs, bparts,
binstruction bmanuals, betc.).
ANSWER: b TRUE
Diff: b1
Topic: b The bValue bChain band bAccounting bInformation bSystems
Learning bObjective: b 01-04 bDescribe bhow bbusiness bprocesses baffect bthe bfirm's bvalue
bchain. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
20) A bwell-designed band bwell-functioning bAIS bcan bbe bexpected bto bcreate bvalue bby bproviding
brelevant binformation bhelpful bto bmanagement bto bincrease brevenues band breduce bexpenses.
ANSWER: b TRUE
Diff: b1
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
21) Production bof ba b1040 btax bform bfrom bthe bAIS bto bbe bdelivered bto bthe bInternal bRevenue bService
bis ban bexample bof bdiscretionary binformation.
ANSWER: b FALSE
Diff: b1
Topic: b Data bversus bInformation
Learning bObjective: b 01-02 bDistinguish bamong bdata, binformation, band ban binformation
bsystem. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
22) An benterprise bsystem bis bprimarily bused bto bmanage band bnurture ba bfirm's binteractions bwith bits
bcurrent band bpotential bclients.
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
ANSWER: b FALSE
Diff: b1
Topic: b AIS band bInternal bBusiness bProcesses
Learning bObjective: b 01-06 bDescribe bhow bAIS bassists bthe bfirm's binternal bbusiness
bprocesses. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
23) The bSarbanes-Oxley bAct bof b2002 bis ba bfederal blaw bin bthe bUnited bStates bthat bset bnew band
benhanced bstandards bfor ball bU.S. bpublic bcompanies, btheir bmanagement band bpublic baccounting
bfirms.
ANSWER: b TRUE
Diff: b1
Topic: b Role bof bAccountants bin bAccounting bInformation bSystems
Learning bObjective: b 01-03 bDistinguish bthe broles bof baccountants bin bproviding binformation, band bexplain
bcertifications brelated bto baccounting b information bsystems.
Bloom's: b Remember
b AACSB: b Reflective
bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
24) CRM bsoftware boften bincludes bthe buse bof bdatabase bmarketing btools bto blearn bmore babout
bthe bcustomers band bto bdevelop bstrong bfirm-to-customer brelationships.
ANSWER: b TRUE
Diff: b1
Topic: b AIS band bExternal bBusiness bProcesses
Learning bObjective: b 01-07 bAssess bhow bAIS bfacilitates bthe bfirm's bexternal bbusiness
bprocesses. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
25) The bCertified bInformation bTechnology bProfessional bis bthe bposition bcreated bby bthe
bAICPA bto brecognize bCPAs bwho bhave bthe bability bto bprovide bskilled bprofessional bservices
bon bInformation bTechnology.
ANSWER: b TRUE
Diff: b1
Topic: b Data bversus bInformation
Learning bObjective: b 01-03 bDistinguish bthe broles bof baccountants bin bproviding binformation, band bexplain
bcertifications brelated bto baccounting b information bsystems.
Bloom's: b Remember
b AACSB: b Reflective
bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
26) Accounting binformation bsystems:
A) Are balways bcomputerized.
B) Report bonly baccounting binformation.
C) Include brecords, bprocesses band breports.
D) Are bfor bcomputer bgames.
ANSWER: b C
Diff: b2
Topic: b Definition bof bAccounting bInformation bSystems
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Understand
AACSB: b Reflective bThinking
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
AICPA: b BB bIndustry; bFN bDecision bMaking
27) Which bof bthe bfollowing bis bnot b a bcharacteristic bof buseful binformation?
A) Easy bto b understand.
B) Feedback bvalue.
C) Timeliness.
D) Representational bFaithfulness.
ANSWER: b A
Diff: b2
Topic: b Attributes bof bUseful bInformation
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
28) Which bof bthe bfollowing bare bconsidered bto bbe bmandatory binformation brequired bby ba bregulatory
bbody?
A) Financial breports bfor bthe bSecurities band bExchange bCommission.
B) The bamount bof btaxes bsaved bby ba bmerger.
C) The btotal bdollar bvalue bof bfireworks bthat bare bsold bon bJuly b4.
D) The bcost bto bbuild ban ball-new bStarbucks brestaurant bin bAbu bDhabi.
ANSWER: b A
Diff: b2
Topic: b Data bversus bInformation
Learning bObjective: b 01-02 bDistinguish bamong bdata, binformation, band ban binformation
bsystem. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
29) The bcorrect border bof beffects bin bthe bvalue bchain bare:
A) Inbound b Logistics b→ bOperations b→ bService.
B) Inbound b Logistics b→ bOutbound b Logistics b→ bMarketing b& bSales.
C) Inbound b Logistics b→ bOperations b→ bOutbound b Logistics.
D) Inbound b Logistics b→ bOperations b→ bShipping.
ANSWER: b C
Diff: b2
Topic: b The bValue bChain band bAccounting bInformation bSystems
Learning bObjective: b 01-04 bDescribe bhow bbusiness bprocesses baffect bthe bfirm's bvalue
bchain. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
30) Which bdesignation bwould bbe bmost bappropriate bfor bthose bprofessionals bpossessing bIT baudit,
bcontrol band bsecurity bskills?
A) Certified bInternal bAuditor b(CIA).
B) Certified bPublic bAccountant b(CPA).
C) Certified bInformation bTechnology bProfessional b(CITP).
D) Certified bInformation bSystems bAuditors b(CISA).
ANSWER: b D
Diff: b2
Topic: b Role bof bAccountants bin bAccounting bInformation bSystems
Learning bObjective: b 01-03 bDistinguish bthe broles bof baccountants bin bproviding binformation, band bexplain
bcertifications brelated bto baccounting b information bsystems.
Bloom's: b Understand
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
bAACSB: b Reflective
bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
31) Which bdesignation bis bfor bCPAs bwith ba bbroad brange bof btechnology bknowledge band bexperience?
A) Certified bInternal bAuditor b(CIA).
B) Certified bPublic bAccountant b(CPA).
C) Certified bInformation bTechnology bProfessional b(CITP).
D) Certified bInformation bSystems bAuditors b(CISA).
ANSWER: b C
Diff: b2
Topic: b Role bof bAccountants bin bAccounting bInformation bSystems
Learning bObjective: b 01-03 bDistinguish bthe broles bof baccountants bin bproviding binformation, band bexplain
bcertifications brelated bto baccounting b information bsystems.
Bloom's: b Understand
bAACSB: b Reflective
bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
32) A bsupply bchain:
A) Refers bto bthe bsupplies bneeded bto bbuild bproducts.
B) Refers bto bthe bflow bof bmaterials, binformation, bpayments band bservices.
C) Is bsimilar bin bfunction band bpurpose bto bthe bvalue bchain.
D) Does bnot bapply bto ba bservice bfirm blike ban baccounting bfirm.
ANSWER: b B
Diff: b2
Topic: b AIS band bExternal bBusiness bProcesses
Learning bObjective: b 01-07 bAssess bhow bAIS bfacilitates bthe bfirm's bexternal bbusiness
bprocesses. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
33) A bsupply bchain bsystem bdoes bnot b include binformation babout:
A) Current bcustomers.
B) Prospective bcustomers.
C) Availability bof binventory.
D) Current bsuppliers.
ANSWER: b B
Diff: b2
Topic: b AIS band bExternal bBusiness bProcesses
Learning bObjective: b 01-07 bAssess bhow bAIS bfacilitates bthe bfirm's bexternal bbusiness
bprocesses. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
34) The bincome bstatement bline bitem bmost blikely baffected bby ban bAIS binvestment bin benterprise
bsystems bwould bbe:
A) Revenues.
B) Cost bof bGoods bSold.
C) Selling, bGeneral band bAdministrative bExpenses.
D) Unearned bRevenue.
ANSWER: b C
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
35) The bincome bstatement bline bitem bmost blikely baffected bby ban bAIS binvestment bin bsupply bchain
bthat bwould binterface bwith bsuppliers bwould bbe:
A) Revenues.
B) Cost bof bGoods bSold.
C) Selling, bGeneral band bAdministrative bExpenses.
D) Research band bDevelopment bExpenses.
ANSWER: b B
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
36) The bIT bstrategic broles bof bAIS binvestments bare bclassified bas:
A) Automate, bInformate, bTransform.
B) Value bcreation, bValue bDestruction, bValue bNeutral.
C) Digitize, bReport, bTransform.
D) Automate, bDigitize, bTransport.
ANSWER: b A
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
37) According bto ba brecent bstudy, bthe btransform bIT bstrategic brole bis bdefined bas bsystems bthat:
A) Replace bhuman blabor bin bautomating bbusiness bprocesses.
B) Provide binformation babout bbusiness bactivities bto ball bemployees.
C) Provide binformation babout bbusiness bactivities bto bsenior bmanagement.
D) Fundamentally bredefine bbusiness bprocesses band brelationships.
ANSWER: b D
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
38) According bto ba brecent bstudy, bthe binformate-up bIT bstrategic brole bis bdefined bas bsystems bthat:
A) Replace bhuman blabor bin bautomating bbusiness bprocesses.
B) Provide binformation babout bbusiness bactivities bto ball bemployees.
C) Provide binformation babout bbusiness bactivities bto bsenior bmanagement.
D) Fundamentally bredefine bbusiness bprocesses band brelationships.
ANSWER: b C
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
Page 10
TEST BANK For Accounting Information Systems,
3rd Edition by Vernon Richardson,
Verified Chapters 1 - 18, Complete
Page 1
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
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
Page 2
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
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.
Page 3
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
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
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
Page 4
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
12) The bcharacteristics bof breliable binformation bare bthat bthe binformation bis bverifiable, bwithout bbias
band btimely.
ANSWER: b FALSE
Diff: b1
Topic: b Definition bof bAccounting bInformation bSystems; bAttributes bof bUseful bInformation
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
13) Information boverload bis bdefined bas bthe bdifficulty ba bperson bfaces bin bunderstanding ba bproblem
band bmaking ba bdecision bas ba bconsequence bof btoo bmuch binformation.
ANSWER: b TRUE
Diff: b1
Topic: b Definition bof bAccounting bInformation bSystems; bAttributes bof bUseful
bInformation bLearning bObjective: b 01-02 bDistinguish bamong bdata, binformation, band ban
binformation bsystem. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
14) The bmain bfinancial bbenefit bof bCustomer bRelationship bManagement bpractices breduces bthe bcost
bof bgoods bsold.
ANSWER: b FALSE
Diff: b1
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
15) An befficient bEnterprise bSystem bcan bsignificantly blower bthe bcost bof bsupport bprocesses
bincluded bin bsales, bgeneral, band badministrative bexpenses.
ANSWER: b TRUE
Diff: b1
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
16) An baccounting binformation bsystem b(AIS) bis bdefined bas bbeing ban binformation bsystem bthat
brecords, bprocesses band breports bon btransactions bto bprovide bfinancial band bnonfinancial
binformation bfor bdecision bmaking band bcontrol.
ANSWER: b TRUE
Diff: b1
Topic: b Definition bof bAccounting bInformation bSystems
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
17) An benterprise bsystem bis ba bcentralized bdatabase bthat bcollects bdata bfrom bthroughout bthe bfirm.
bThis bincludes bdata bfrom borders, bcustomers, bsales, binventory band bemployees.
ANSWER: b TRUE
Diff: b1
Topic: b AIS band bInternal bBusiness bProcesses
Learning bObjective: b 01-06 bDescribe bhow bAIS bassists bthe bfirm's binternal bbusiness
bprocesses. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
18) Outbound blogistics bare bthe bactivities bassociated bwith breceiving band bstoring braw bmaterials band
bother bpartially bcompleted bmaterials, band bdistributing bthose bmaterials bto bmanufacturing bwhen
band bwhere bthey bare bneeded.
ANSWER: b FALSE
Diff: b1
Topic: b The bValue bChain band bAccounting bInformation bSystems
Learning bObjective: b 01-04 bDescribe bhow bbusiness bprocesses baffect bthe bfirm's bvalue
bchain. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
19) Service bActivities bas bdefined bin bthe bvalue bchain bare bthose bactivities bthat bprovide bthe bsupport
bof bcustomers bafter bthe bproducts band bservices bare bsold bto bthem b(e.g. bwarranty brepairs, bparts,
binstruction bmanuals, betc.).
ANSWER: b TRUE
Diff: b1
Topic: b The bValue bChain band bAccounting bInformation bSystems
Learning bObjective: b 01-04 bDescribe bhow bbusiness bprocesses baffect bthe bfirm's bvalue
bchain. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
20) A bwell-designed band bwell-functioning bAIS bcan bbe bexpected bto bcreate bvalue bby bproviding
brelevant binformation bhelpful bto bmanagement bto bincrease brevenues band breduce bexpenses.
ANSWER: b TRUE
Diff: b1
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
21) Production bof ba b1040 btax bform bfrom bthe bAIS bto bbe bdelivered bto bthe bInternal bRevenue bService
bis ban bexample bof bdiscretionary binformation.
ANSWER: b FALSE
Diff: b1
Topic: b Data bversus bInformation
Learning bObjective: b 01-02 bDistinguish bamong bdata, binformation, band ban binformation
bsystem. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
22) An benterprise bsystem bis bprimarily bused bto bmanage band bnurture ba bfirm's binteractions bwith bits
bcurrent band bpotential bclients.
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
ANSWER: b FALSE
Diff: b1
Topic: b AIS band bInternal bBusiness bProcesses
Learning bObjective: b 01-06 bDescribe bhow bAIS bassists bthe bfirm's binternal bbusiness
bprocesses. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
23) The bSarbanes-Oxley bAct bof b2002 bis ba bfederal blaw bin bthe bUnited bStates bthat bset bnew band
benhanced bstandards bfor ball bU.S. bpublic bcompanies, btheir bmanagement band bpublic baccounting
bfirms.
ANSWER: b TRUE
Diff: b1
Topic: b Role bof bAccountants bin bAccounting bInformation bSystems
Learning bObjective: b 01-03 bDistinguish bthe broles bof baccountants bin bproviding binformation, band bexplain
bcertifications brelated bto baccounting b information bsystems.
Bloom's: b Remember
b AACSB: b Reflective
bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
24) CRM bsoftware boften bincludes bthe buse bof bdatabase bmarketing btools bto blearn bmore babout
bthe bcustomers band bto bdevelop bstrong bfirm-to-customer brelationships.
ANSWER: b TRUE
Diff: b1
Topic: b AIS band bExternal bBusiness bProcesses
Learning bObjective: b 01-07 bAssess bhow bAIS bfacilitates bthe bfirm's bexternal bbusiness
bprocesses. bBloom's: b Remember
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
25) The bCertified bInformation bTechnology bProfessional bis bthe bposition bcreated bby bthe
bAICPA bto brecognize bCPAs bwho bhave bthe bability bto bprovide bskilled bprofessional bservices
bon bInformation bTechnology.
ANSWER: b TRUE
Diff: b1
Topic: b Data bversus bInformation
Learning bObjective: b 01-03 bDistinguish bthe broles bof baccountants bin bproviding binformation, band bexplain
bcertifications brelated bto baccounting b information bsystems.
Bloom's: b Remember
b AACSB: b Reflective
bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
26) Accounting binformation bsystems:
A) Are balways bcomputerized.
B) Report bonly baccounting binformation.
C) Include brecords, bprocesses band breports.
D) Are bfor bcomputer bgames.
ANSWER: b C
Diff: b2
Topic: b Definition bof bAccounting bInformation bSystems
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Understand
AACSB: b Reflective bThinking
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
AICPA: b BB bIndustry; bFN bDecision bMaking
27) Which bof bthe bfollowing bis bnot b a bcharacteristic bof buseful binformation?
A) Easy bto b understand.
B) Feedback bvalue.
C) Timeliness.
D) Representational bFaithfulness.
ANSWER: b A
Diff: b2
Topic: b Attributes bof bUseful bInformation
Learning bObjective: b 01-01 bDefine ban baccounting binformation bsystem, band bexplain bcharacteristics bof buseful
binformation. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
28) Which bof bthe bfollowing bare bconsidered bto bbe bmandatory binformation brequired bby ba bregulatory
bbody?
A) Financial breports bfor bthe bSecurities band bExchange bCommission.
B) The bamount bof btaxes bsaved bby ba bmerger.
C) The btotal bdollar bvalue bof bfireworks bthat bare bsold bon bJuly b4.
D) The bcost bto bbuild ban ball-new bStarbucks brestaurant bin bAbu bDhabi.
ANSWER: b A
Diff: b2
Topic: b Data bversus bInformation
Learning bObjective: b 01-02 bDistinguish bamong bdata, binformation, band ban binformation
bsystem. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
29) The bcorrect border bof beffects bin bthe bvalue bchain bare:
A) Inbound b Logistics b→ bOperations b→ bService.
B) Inbound b Logistics b→ bOutbound b Logistics b→ bMarketing b& bSales.
C) Inbound b Logistics b→ bOperations b→ bOutbound b Logistics.
D) Inbound b Logistics b→ bOperations b→ bShipping.
ANSWER: b C
Diff: b2
Topic: b The bValue bChain band bAccounting bInformation bSystems
Learning bObjective: b 01-04 bDescribe bhow bbusiness bprocesses baffect bthe bfirm's bvalue
bchain. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
30) Which bdesignation bwould bbe bmost bappropriate bfor bthose bprofessionals bpossessing bIT baudit,
bcontrol band bsecurity bskills?
A) Certified bInternal bAuditor b(CIA).
B) Certified bPublic bAccountant b(CPA).
C) Certified bInformation bTechnology bProfessional b(CITP).
D) Certified bInformation bSystems bAuditors b(CISA).
ANSWER: b D
Diff: b2
Topic: b Role bof bAccountants bin bAccounting bInformation bSystems
Learning bObjective: b 01-03 bDistinguish bthe broles bof baccountants bin bproviding binformation, band bexplain
bcertifications brelated bto baccounting b information bsystems.
Bloom's: b Understand
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
bAACSB: b Reflective
bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
31) Which bdesignation bis bfor bCPAs bwith ba bbroad brange bof btechnology bknowledge band bexperience?
A) Certified bInternal bAuditor b(CIA).
B) Certified bPublic bAccountant b(CPA).
C) Certified bInformation bTechnology bProfessional b(CITP).
D) Certified bInformation bSystems bAuditors b(CISA).
ANSWER: b C
Diff: b2
Topic: b Role bof bAccountants bin bAccounting bInformation bSystems
Learning bObjective: b 01-03 bDistinguish bthe broles bof baccountants bin bproviding binformation, band bexplain
bcertifications brelated bto baccounting b information bsystems.
Bloom's: b Understand
bAACSB: b Reflective
bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
32) A bsupply bchain:
A) Refers bto bthe bsupplies bneeded bto bbuild bproducts.
B) Refers bto bthe bflow bof bmaterials, binformation, bpayments band bservices.
C) Is bsimilar bin bfunction band bpurpose bto bthe bvalue bchain.
D) Does bnot bapply bto ba bservice bfirm blike ban baccounting bfirm.
ANSWER: b B
Diff: b2
Topic: b AIS band bExternal bBusiness bProcesses
Learning bObjective: b 01-07 bAssess bhow bAIS bfacilitates bthe bfirm's bexternal bbusiness
bprocesses. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
33) A bsupply bchain bsystem bdoes bnot b include binformation babout:
A) Current bcustomers.
B) Prospective bcustomers.
C) Availability bof binventory.
D) Current bsuppliers.
ANSWER: b B
Diff: b2
Topic: b AIS band bExternal bBusiness bProcesses
Learning bObjective: b 01-07 bAssess bhow bAIS bfacilitates bthe bfirm's bexternal bbusiness
bprocesses. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
34) The bincome bstatement bline bitem bmost blikely baffected bby ban bAIS binvestment bin benterprise
bsystems bwould bbe:
A) Revenues.
B) Cost bof bGoods bSold.
C) Selling, bGeneral band bAdministrative bExpenses.
D) Unearned bRevenue.
ANSWER: b C
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
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, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
35) The bincome bstatement bline bitem bmost blikely baffected bby ban bAIS binvestment bin bsupply bchain
bthat bwould binterface bwith bsuppliers bwould bbe:
A) Revenues.
B) Cost bof bGoods bSold.
C) Selling, bGeneral band bAdministrative bExpenses.
D) Research band bDevelopment bExpenses.
ANSWER: b B
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
36) The bIT bstrategic broles bof bAIS binvestments bare bclassified bas:
A) Automate, bInformate, bTransform.
B) Value bcreation, bValue bDestruction, bValue bNeutral.
C) Digitize, bReport, bTransform.
D) Automate, bDigitize, bTransport.
ANSWER: b A
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
37) According bto ba brecent bstudy, bthe btransform bIT bstrategic brole bis bdefined bas bsystems bthat:
A) Replace bhuman blabor bin bautomating bbusiness bprocesses.
B) Provide binformation babout bbusiness bactivities bto ball bemployees.
C) Provide binformation babout bbusiness bactivities bto bsenior bmanagement.
D) Fundamentally bredefine bbusiness bprocesses band brelationships.
ANSWER: b D
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
bprices. bBloom's: b Understand
AACSB: b Reflective bThinking
AICPA: b BB bIndustry; bFN bDecision bMaking
38) According bto ba brecent bstudy, bthe binformate-up bIT bstrategic brole bis bdefined bas bsystems bthat:
A) Replace bhuman blabor bin bautomating bbusiness bprocesses.
B) Provide binformation babout bbusiness bactivities bto ball bemployees.
C) Provide binformation babout bbusiness bactivities bto bsenior bmanagement.
D) Fundamentally bredefine bbusiness bprocesses band brelationships.
ANSWER: b C
Diff: b2
Topic: b AIS, bFirm bProfitability, band bStock bPrices
Learning bObjective: b 01-08 bAssess bthe bimpact bof bAIS bon bfirm bprofitability band bstock
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