CHAPTER 1: Introduction to AIS
STUDY OBJECTIVES – Chapter 1
1. An overvie of business processes
2. An overvie of an accounting information system
3. The business process linkage throughout the supply chain
4. The IT enablement of business processes
5. Basic computer and IT concepts
6. Examples of IT enablement
7. The internal control structure of organizations
8. The importance of accounting information systems to accountants
9. The relation of ethics to accounting information systems
TEXTBOOK QUESTIONS: End of Chapter Questions:
SO1
1. hen a company receives returned goods from a customer, the business process to accept the return
ould most likely be a(n):
a. Administrative process
b. Conversion process
c. Expenditure process
*d. Revenue process
SO2
2. hich of the follo ing is least likely to be an output of the accounting information system?
a. A check
b. A report
c. An invoice
*d. A bar code
2|Page
,SO3
3. hich of the follo ing is not true of the supply chain?
a. The supply chain includes vendors.
*b. The supply chain excludes customers.
c. The supply chain includes information flo s.
d. The supply chain include secondary suppliers.
SO4
4. hich of the follo ing is not an objective of IT enablement?
a. Increased accuracy of data
b. Reduced cost
*c. Reduced security problems
d. Increased efficiency
SO5
5. The correct order of the computer data hierarchy is:
a. Byte, bit, record, field, file, database
b. Bit, byte, record, field, file, database
*c. Bit, byte, field, record, file, database
d. Bit, byte, field, record, database, file
SO5
6. The process of searching for identifiable patterns in data is called:
a. Sequential processing
b. Data arehousing
3|Page
,*c. Data mining
d. Real-time processing
SO6
7. An IT enabled system for purchasing that is an "invoice-less" system is called a(n):
a. Automated matching system
*b. Evaluated receipt settlement
c. E-payables
d. Point of sale system
SO7
8. The COSO report ritten for the purpose of assisting managers in the challenge of managing risk in
their organization is entitled:
*a. Internal Control -- Integrated Frame ork
b. Enterprise Risk Management -- Integrated Frame ork
c. Corporate Governance Guidance
d. IT Governance Guidance
SO8
9. Accountants have some form of use of the AIS in all but hich role?
a. User
*b. Programmer
c. Auditor
d. Designer
SO9
4|Page
, 10. hich of the follo ing is not true of unethical behavior?
*a. The only category of unethical behavior for accountants is inflating revenue.
b. Accountants are often pressured to help commit or cover up unethical behavior.
c. Hacking is an unethical behavior that accountants should be concerned about.
d. An accounting information system can be used to cover up unethical behavior.
TESTBANK QUESTIONS NOT IN THE TEXTBOOK
SO1
11. A prescribed sequence of ork steps preformed in order to produce a desired result for the
organization is called a(n):
a. Accounting Information System
*b. Business Process
c. Financial Transaction
d. Capital Transaction Process
SO1
12. The process that must identify the transactions to be recorded, capture all the important details of the
transactions, properly process the transaction details, and provide reports is termed the:
a. Revenue Process
b. Expenditure Process
*c. Accounting Information System
d. Business Process
SO2
13. An accounting information system serves many functions. hich of the follo ing is NOT one of
those functions?
a. Capture the details of a transaction
5|Page
STUDY OBJECTIVES – Chapter 1
1. An overvie of business processes
2. An overvie of an accounting information system
3. The business process linkage throughout the supply chain
4. The IT enablement of business processes
5. Basic computer and IT concepts
6. Examples of IT enablement
7. The internal control structure of organizations
8. The importance of accounting information systems to accountants
9. The relation of ethics to accounting information systems
TEXTBOOK QUESTIONS: End of Chapter Questions:
SO1
1. hen a company receives returned goods from a customer, the business process to accept the return
ould most likely be a(n):
a. Administrative process
b. Conversion process
c. Expenditure process
*d. Revenue process
SO2
2. hich of the follo ing is least likely to be an output of the accounting information system?
a. A check
b. A report
c. An invoice
*d. A bar code
2|Page
,SO3
3. hich of the follo ing is not true of the supply chain?
a. The supply chain includes vendors.
*b. The supply chain excludes customers.
c. The supply chain includes information flo s.
d. The supply chain include secondary suppliers.
SO4
4. hich of the follo ing is not an objective of IT enablement?
a. Increased accuracy of data
b. Reduced cost
*c. Reduced security problems
d. Increased efficiency
SO5
5. The correct order of the computer data hierarchy is:
a. Byte, bit, record, field, file, database
b. Bit, byte, record, field, file, database
*c. Bit, byte, field, record, file, database
d. Bit, byte, field, record, database, file
SO5
6. The process of searching for identifiable patterns in data is called:
a. Sequential processing
b. Data arehousing
3|Page
,*c. Data mining
d. Real-time processing
SO6
7. An IT enabled system for purchasing that is an "invoice-less" system is called a(n):
a. Automated matching system
*b. Evaluated receipt settlement
c. E-payables
d. Point of sale system
SO7
8. The COSO report ritten for the purpose of assisting managers in the challenge of managing risk in
their organization is entitled:
*a. Internal Control -- Integrated Frame ork
b. Enterprise Risk Management -- Integrated Frame ork
c. Corporate Governance Guidance
d. IT Governance Guidance
SO8
9. Accountants have some form of use of the AIS in all but hich role?
a. User
*b. Programmer
c. Auditor
d. Designer
SO9
4|Page
, 10. hich of the follo ing is not true of unethical behavior?
*a. The only category of unethical behavior for accountants is inflating revenue.
b. Accountants are often pressured to help commit or cover up unethical behavior.
c. Hacking is an unethical behavior that accountants should be concerned about.
d. An accounting information system can be used to cover up unethical behavior.
TESTBANK QUESTIONS NOT IN THE TEXTBOOK
SO1
11. A prescribed sequence of ork steps preformed in order to produce a desired result for the
organization is called a(n):
a. Accounting Information System
*b. Business Process
c. Financial Transaction
d. Capital Transaction Process
SO1
12. The process that must identify the transactions to be recorded, capture all the important details of the
transactions, properly process the transaction details, and provide reports is termed the:
a. Revenue Process
b. Expenditure Process
*c. Accounting Information System
d. Business Process
SO2
13. An accounting information system serves many functions. hich of the follo ing is NOT one of
those functions?
a. Capture the details of a transaction
5|Page
