Accounting Information Systems 9th Edition by James A. Hall – Chapter Notes, Key Concepts & Exam Revision Study Guide (2026–2027)

Accounting Information Systems 9th Edition by James A.
Hall Test Bank (All Chapters) | Verified Questions &
Answers | 2026–2027 Exam Prep Study Guide | A+ Grade
Resource
All chapters covered

, Accounting Information Systems 9e James A. Hall (Test Bank All l l l l l l l l l




Chapters, 100% Original Verified, A+ Grade) l l l l l l




Chapter1—TheInformationSystem:AnAccountant’sPerspective
l l l l l l




TRUE/FALSE

1. Information is a business resource. l l l l




ANS: T l PTS: 1 l l




2. IT outsourcing is location-independent computing.
l l l l




ANS: F l PTS: 1 l l




3. Transactionprocessing systems convert non-financial transactions into financial transactions.
l l l l l l l l




ANS: F l PTS: 1 l l




4. Informationlackingreliability may still have value. l l l l l l




ANS: F l PTS: 1 l l




5. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting.
l l l l l l l l l l l l l




ANS: F l PTS: 1 l l




6. The Management Reporting System provides the internal financial information needed to manage a
l l l l l l l l l l l l




business.
l




ANS: T l PTS: 1 l l




7. Most of the inputs to the General Ledger System come from the Financial Reporting System.
l l l l l l l l l l l l l l




ANS: F l PTS: 1 l l




8. When preparing discretionary reports, organizations can choose what information to report and how to
l l l l l l l l l l l l l




present it.
l l




ANS: T l PTS: 1 l l




9. Retrievalis the task of permanently removing obsolete or redundant records from the database.
l l l l l l l l l l l l l




ANS: F l PTS: 1 l l




10. Systemsdevelopment represents 80 to 90 percent of the total cost of a computer system.
l l l l l l l l l l l l l l




ANS: F l PTS: 1 l l




11. The database administrator is responsible for the security and integrity of the database.
l l l l l l l l l l l l




ANS: T l PTS: 1 l l

, Accounting Information Systems, 9e – Test Bank, Chapter 1


12. Custom software is completely finished, tested, and ready for implementation.
l l l l l l l l l




ANS: F l PTS: 1 l l




13. The internal auditor represents the interests of third-party outsiders.
l l l l l l l l




ANS: F l PTS: 1 l l




14. Information Technology (IT) audits can be performed by both internal and external auditors.
l l l l l l l l l l l l




ANS: T l PTS: 1 l l




15. Custom software is the most affordable systems development option.
l l l l l l l l




ANS: F l PTS: 1 l l




16. A database is a collection of interconnected computers and communications devices that allows users to
l l l l l l l l l l l l l l




communicate, access data and applications, and share information and resources.
l l l l l l l l l l




ANS: F l PTS: 1 l l




17. Systemsmaintenance consumes the majority of a system’s total costs.
l l l l l l l l l




ANS: T l PTS: 1 l l




18. Cloud computing is a practice in which the organization sells its IT resources to a third-party outsourcing
l l l l l l l l l l l l l l l l




vendor then leases back IT services from the vendor for a contract period.
l l l l l l l l l l l l l




ANS: F l PTS: 1 l l




19. A potential benefit of cloud computing is that the client firm does not need to know where its data are bring
l l l l l l l l l l l l l l l l l l l l




processed.
l




ANS: F l PTS: 1 l l




20. One of the greatest disadvantages of database systems is that all data is always available to all users.
l l l l l l l l l l l l l l l l l




ANS: F l PTS: 1 l l




21. Under SOX legislation public accounting firms are no longer allowed to provide consulting services to audit
l l l l l l l l l l l l l l l




clients.
l




ANS: T l PTS: 1 l l




22. One member of a company’s audit committee must be an independent CPA.
l l l l l l l l l l l




l ANS: F l PTS: 1 l

, Accounting Information Systems, 9e – Test Bank, Chapter 1


MULTIPLE CHOICE l




1. Which of the following is not a business resource?
l l l l l l l l




a. raw material l




b. labor
c. information
d. all are business resources
l l l




l ANS: D l PTS: 1 l




2. Which level of management is responsible for short-term planning and coordination of activities
l l l l l l l l l l l l




necessary to accomplish organizational objectives?
l l l l l




a. operations management l




b. middle management l




c. top management l




d. line management l




ANS: B l PTS: 1 l l




3. Which level of management is responsible for controlling day-to-day operations?
l l l l l l l l l




a. top management l




b. middle management l




c. operations management l




d. executive management l




l ANS: C l PTS: 1 l




4. Location-independent computing in which shared data centers deliver hosted IT services over the Internet. l l l l l l l l l l l l l




a. IT outsourcing l




b. Network administration l




c. Cloud computing l




d. Custom software l




ANS: C l PTS: 1 l l




5. The value of information for users is determined by all of the following but
l l l l l l l l l l l l l




a. reliability
b. relevance
c. convenience
d. completeness
ANS: C l PTS: 1 l l




6. An example of a nonfinancial transaction is
l l l l l l




a. sale of products l l




b. cash disbursement l




c. log of customer calls l l l




d. purchase of inventory l l




l ANS: C l PTS: 1 l l