Chapter 01
Accounting Information Systems and Firm Value
True / False Questions
1. Accounting and Finance is a primary activity in the value chain.
True False
2. Accounting Information Systems at this date are all computerized.
True False
3. Business value includes all those items, events and interactions that determine
the financial health and well-being of the firm.
True False
4. The Certified Information Technology Professional (CITP) is a professional
designation for those with broad range of technology knowledge and does not
require a CPA.
True False
5. The Certified Information Systems Auditor (CISA) is a professional designation
generally sought by those performing IT audits.
True False
,6. Information is defined as being data organized in a meaningful way to be useful to
the user.
True False
7. Data is defined as being information organized in a meaningful way to be useful
to the user.
True False
8. A systems analyst analyzes a business problem that might be addressed by an
information system and recommends software or systems to address that
problem.
True False
9. A value chain is defined as the flow of materials, information, payments, and
services from customer to supplier.
True False
10. Relevant information is that information that is free from bias and error.
True False
11. The characteristics of relevant information include predictive value, feedback
value and timeliness.
True False
12. The characteristics of reliable information are that the information is verifiable,
without bias and timely.
True False
,13. Information overload is defined as the difficulty a person faces in understanding a
problem and making a decision as a consequence of too much information.
True False
14. The main financial benefit of Customer Relationship Management practices
reduces the cost of goods sold.
True False
15. An efficient Enterprise System can significantly lower the cost of support
processes included in sales, general, and administrative expenses.
True False
16. An accounting information system (AIS) is defined as being an information system
that records, processes and reports on transactions to provide financial
information for decision making and control.
True False
17. An enterprise system is a centralized database that collects data from throughout
the firm. This includes data from orders, customers, sales, inventory and
employees
True False
18. Outbound logistics are the activities associated with receiving and storing raw
materials and other partially completed materials, and distributing those
materials to manufacturing when and where they are needed.
True False
19. Service Activities as defined in the value chain are those activities that provide
the support of customers after the products and services are sold to them (e.g.
warranty repairs, parts, instruction manuals, etc.).
True False
, 20. A well-designed and well-functioning AIS can be expected to create value by
providing relevant information helpful to management to increase revenues and
reduce expenses.
True False
21. Production of a 1040 tax form from the AIS to be delivered to the Internal
Revenue Service is an example of discretionary information.
True False
22. An enterprise system is primarily used to manage and nurture a firm's
interactions with its current and potential clients.
True False
23. The Sarbanes-Oxley Act of 2002 is a federal law in the United States that set new
and enhanced standards for all U.S. public companies, management and public
accounting firms.
True False
24. CRM software often includes the use of database marketing tools to learn more
about the customers and to develop strong firm-to-customer relationships.
True False
25. The Certified Information Technology Professional is the position created by the
AICPA to recognize CPAs who have the ability to provide skilled professional
services on Information Technology.
True False
Multiple Choice Questions
Accounting Information Systems and Firm Value
True / False Questions
1. Accounting and Finance is a primary activity in the value chain.
True False
2. Accounting Information Systems at this date are all computerized.
True False
3. Business value includes all those items, events and interactions that determine
the financial health and well-being of the firm.
True False
4. The Certified Information Technology Professional (CITP) is a professional
designation for those with broad range of technology knowledge and does not
require a CPA.
True False
5. The Certified Information Systems Auditor (CISA) is a professional designation
generally sought by those performing IT audits.
True False
,6. Information is defined as being data organized in a meaningful way to be useful to
the user.
True False
7. Data is defined as being information organized in a meaningful way to be useful
to the user.
True False
8. A systems analyst analyzes a business problem that might be addressed by an
information system and recommends software or systems to address that
problem.
True False
9. A value chain is defined as the flow of materials, information, payments, and
services from customer to supplier.
True False
10. Relevant information is that information that is free from bias and error.
True False
11. The characteristics of relevant information include predictive value, feedback
value and timeliness.
True False
12. The characteristics of reliable information are that the information is verifiable,
without bias and timely.
True False
,13. Information overload is defined as the difficulty a person faces in understanding a
problem and making a decision as a consequence of too much information.
True False
14. The main financial benefit of Customer Relationship Management practices
reduces the cost of goods sold.
True False
15. An efficient Enterprise System can significantly lower the cost of support
processes included in sales, general, and administrative expenses.
True False
16. An accounting information system (AIS) is defined as being an information system
that records, processes and reports on transactions to provide financial
information for decision making and control.
True False
17. An enterprise system is a centralized database that collects data from throughout
the firm. This includes data from orders, customers, sales, inventory and
employees
True False
18. Outbound logistics are the activities associated with receiving and storing raw
materials and other partially completed materials, and distributing those
materials to manufacturing when and where they are needed.
True False
19. Service Activities as defined in the value chain are those activities that provide
the support of customers after the products and services are sold to them (e.g.
warranty repairs, parts, instruction manuals, etc.).
True False
, 20. A well-designed and well-functioning AIS can be expected to create value by
providing relevant information helpful to management to increase revenues and
reduce expenses.
True False
21. Production of a 1040 tax form from the AIS to be delivered to the Internal
Revenue Service is an example of discretionary information.
True False
22. An enterprise system is primarily used to manage and nurture a firm's
interactions with its current and potential clients.
True False
23. The Sarbanes-Oxley Act of 2002 is a federal law in the United States that set new
and enhanced standards for all U.S. public companies, management and public
accounting firms.
True False
24. CRM software often includes the use of database marketing tools to learn more
about the customers and to develop strong firm-to-customer relationships.
True False
25. The Certified Information Technology Professional is the position created by the
AICPA to recognize CPAs who have the ability to provide skilled professional
services on Information Technology.
True False
Multiple Choice Questions
