1
, Answers Included y6
Chap 01 4e Richardson
y6 y6 y6
1) Accounting and Finance is a primary activity in the value chain.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
2) As of today, Accounting Information Systems are all computerized.
y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
3) Business value includes all those items, events and interactions that determine the financi
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
al health and well-being of the firm.
y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
4) The Certified Information Technology Professional (CITP) is a professional designation f
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
or those with a broad range of technology knowledge and does not require a CPA.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
5) The Certified Information Systems Auditor (CISA) is a professional designation generall
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
y sought by those performing IT audits.
y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
6) Information is defined as being data organized in a meaningful way that is useful to the user.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
7) Data is defined as being information organized in a meaningful way that is useful to the user.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
2
,8) An AIS may create value by giving access to management information relevant to t
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
he decision makers.
y6 y6
⊚ true y 6
⊚ false y 6
9) An AIS may create value by providing an internal control structure needed to make sure t
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
he information is secure, reliable, and free from error.
y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
10) Relevant information’s most defining characteristic is that it is free from bias and error.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
11) The characteristics of relevant information include predictive value, feedback value an
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
d timeliness.
y6
⊚ true y 6
⊚ false y 6
12) A faithful representation of the underlying event should reflect the bias of the system analyst.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
13) Information overload is defined as the difficulty a person faces in understanding a proble
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
m and making a decision as a consequence of too much information.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
14) The main financial benefit of Customer Relationship Management practices reduces the co
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
st of goods sold.
y6 y6 y6
⊚ true y 6
⊚ false y 6
3
, 15) An efficient Enterprise System can significantly lower the cost of support processes includ
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
ed in sales, general, and administrative expenses.
y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
16) An accounting information system (AIS) is defined as being an information system th
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
at records, processes and reports on transactions to provide financial and nonfinancia
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
l information for decision making and control.
y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
17) An enterprise system is a centralized database that collects data from throughout the fir
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
m. This includes data from orders, customers, sales, inventory and employees.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
18) Outbound logistics are the activities associated with receiving and storing raw materials
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
as well as activities that transform these inputs into finished goods.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
19) Service Activities as defined in the value chain are those activities that provide the support
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y
6of customers after the products and services are sold to them (e.g. warranty repairs, parts,
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y
6instruction manuals, etc.). y6 y6
⊚ true y 6
⊚ false y 6
20) A well-designed and well-
y6 y6 y6
functioning AIS can be expected to create value by providing relevant information he
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
lpful to management to increase revenues and reduce expenses.
y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
4
, Answers Included y6
Chap 01 4e Richardson
y6 y6 y6
1) Accounting and Finance is a primary activity in the value chain.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
2) As of today, Accounting Information Systems are all computerized.
y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
3) Business value includes all those items, events and interactions that determine the financi
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
al health and well-being of the firm.
y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
4) The Certified Information Technology Professional (CITP) is a professional designation f
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
or those with a broad range of technology knowledge and does not require a CPA.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
5) The Certified Information Systems Auditor (CISA) is a professional designation generall
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
y sought by those performing IT audits.
y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
6) Information is defined as being data organized in a meaningful way that is useful to the user.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
7) Data is defined as being information organized in a meaningful way that is useful to the user.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
2
,8) An AIS may create value by giving access to management information relevant to t
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
he decision makers.
y6 y6
⊚ true y 6
⊚ false y 6
9) An AIS may create value by providing an internal control structure needed to make sure t
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
he information is secure, reliable, and free from error.
y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
10) Relevant information’s most defining characteristic is that it is free from bias and error.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
11) The characteristics of relevant information include predictive value, feedback value an
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
d timeliness.
y6
⊚ true y 6
⊚ false y 6
12) A faithful representation of the underlying event should reflect the bias of the system analyst.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
13) Information overload is defined as the difficulty a person faces in understanding a proble
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
m and making a decision as a consequence of too much information.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
14) The main financial benefit of Customer Relationship Management practices reduces the co
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
st of goods sold.
y6 y6 y6
⊚ true y 6
⊚ false y 6
3
, 15) An efficient Enterprise System can significantly lower the cost of support processes includ
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
ed in sales, general, and administrative expenses.
y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
16) An accounting information system (AIS) is defined as being an information system th
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
at records, processes and reports on transactions to provide financial and nonfinancia
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
l information for decision making and control.
y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
17) An enterprise system is a centralized database that collects data from throughout the fir
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
m. This includes data from orders, customers, sales, inventory and employees.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
18) Outbound logistics are the activities associated with receiving and storing raw materials
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
as well as activities that transform these inputs into finished goods.
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
19) Service Activities as defined in the value chain are those activities that provide the support
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y
6of customers after the products and services are sold to them (e.g. warranty repairs, parts,
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y
6instruction manuals, etc.). y6 y6
⊚ true y 6
⊚ false y 6
20) A well-designed and well-
y6 y6 y6
functioning AIS can be expected to create value by providing relevant information he
y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6 y6
lpful to management to increase revenues and reduce expenses.
y6 y6 y6 y6 y6 y6 y6 y6
⊚ true y 6
⊚ false y 6
4
