ACCOUNTING INFORMATION SYSTEMS
TEST BANK COMPLETE QUESTIONS AND
ANSWERS GUARANTEED TO PASS
PRACTICE SOLUTION
●● Why do firms invest in AIS?
Answer: To disclose required information and improve decisions and
performance.
●● What types of questions can AIS support?
Answer: Operational and strategic questions like product popularity,
inventory levels, employee hours, and store profitability trends.
●● What role do accountants play in AIS?
Answer: They identify needed information, design systems to capture it,
and analyze results to advise management.
●● What is the basic flow of an information system?
Answer: Inputs are stored, processed, and output to turn raw events into
actionable insights.
●● What is the difference between data and information?
, Answer: Data are raw facts with little meaning; information is processed
data that is useful for decision making.
●● What is mandatory information?
Answer: Information required by law, such as tax returns and Form 10-
K.
●● What is discretionary information?
Answer: Information not legally required, such as activity-based costing,
where managers weigh benefits against costs.
●● What roles do accountants play in the AIS lifecycle?
Answer: Designers, implementers, database administrators, users,
evaluators, auditors, and managers.
●● How does AIS add value in the firm's value chain?
Answer: By capturing relevant events, enforcing controls, and providing
analytics to improve efficiency and effectiveness.
●● What is the relationship between AIS and ERP systems?
Answer: AIS underpins ERP systems, integrating data across functions
for consistent and timely information.
●● How does AIS impact supply chain management (SCM)?
TEST BANK COMPLETE QUESTIONS AND
ANSWERS GUARANTEED TO PASS
PRACTICE SOLUTION
●● Why do firms invest in AIS?
Answer: To disclose required information and improve decisions and
performance.
●● What types of questions can AIS support?
Answer: Operational and strategic questions like product popularity,
inventory levels, employee hours, and store profitability trends.
●● What role do accountants play in AIS?
Answer: They identify needed information, design systems to capture it,
and analyze results to advise management.
●● What is the basic flow of an information system?
Answer: Inputs are stored, processed, and output to turn raw events into
actionable insights.
●● What is the difference between data and information?
, Answer: Data are raw facts with little meaning; information is processed
data that is useful for decision making.
●● What is mandatory information?
Answer: Information required by law, such as tax returns and Form 10-
K.
●● What is discretionary information?
Answer: Information not legally required, such as activity-based costing,
where managers weigh benefits against costs.
●● What roles do accountants play in the AIS lifecycle?
Answer: Designers, implementers, database administrators, users,
evaluators, auditors, and managers.
●● How does AIS add value in the firm's value chain?
Answer: By capturing relevant events, enforcing controls, and providing
analytics to improve efficiency and effectiveness.
●● What is the relationship between AIS and ERP systems?
Answer: AIS underpins ERP systems, integrating data across functions
for consistent and timely information.
●● How does AIS impact supply chain management (SCM)?
