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