TEST BANK For Accounting Information Systems, 4th Edition by Vernon Richardson, all Chapters 1 - 17, Complete, ISBN: 9781266188350

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



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20) A well-designed and well-
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functioning AIS can be expected to create value by providing relevant information hel
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pful to management to increase revenues and reduce expenses.
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