Test Bank and Instructor Manual For Accounting Information Systems, 10E George H. Bodnar William

Accounting Information Systems, 10e (Bodnar/Hopwood)
Chapter 1 Accounting Information Systems: An Overview

1) A system is a collection of related resources designed to help a company achieve specified
objectives.
Answer: TRUE
Diff: 1 Page Ref: 1

2) Accounting information systems are designed to gather and utilize information which may
cost more to provide than it is worth to the user.
Answer: FALSE
Diff: 2 Page Ref: 3

3) The basic goal of accounting information systems is to convert financial data into information.
Answer: TRUE
Diff: 1 Page Ref: 1

4) Examples of the information provided by a financial information system are cash flow
summaries and payment information.
Answer: TRUE
Diff: 2 Page Ref: 4

5) All data processed and information stored in an accounting information system are mandatory
for financial reporting purposes.
Answer: FALSE
Diff: 2 Page Ref: 3

6) A typical CRM contains one common database in which all departments with customer
contact can access and update.
Answer: TRUE
Diff: 1 Page Ref: 4

7) A typical CRM contains one database for each department which has customer contact.
Answer: FALSE
Diff: 1 Page Ref: 4

8) An extended enterprise brings suppliers and customers together in order to meet customer
demand while minimizing supplier costs.
Answer: FALSE
Diff: 1 Page Ref: 4

9) Procurement and firm infrastructure are examples of primary business processes.
Answer: FALSE
Diff: 3 Page Ref: 9




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,10) Good documentation means that records should be maintained by all parties involved in a
transaction.
Answer: TRUE
Diff: 1 Page Ref: 13

11) Some organizations that use computers to process transactional data must have an
information system function.
Answer: FALSE
Diff: 2 Page Ref: 15

12) The operations function allows specialization in areas such as operating systems and
software and communications technology.
Answer: FALSE
Diff: 3 Page Ref: 16

13) Personal computers give end users their own processing power.
Answer: TRUE
Diff: 1 Page Ref: 17

14) Most batch processing environments are JIT environments.
Answer: FALSE
Diff: 2 Page Ref: 20

15) XBRL is a language that facilitates the exchange over the Internet of all kinds of business
documents and financial statements.
Answer: TRUE
Diff: 2 Page Ref: 22

16) External users of accounting information include investors, customers, governmental
agencies, and suppliers.
Answer: TRUE
Diff: 1 Page Ref: 2

17) The functional components of a management information system (such as marketing,
manufacturing, human resources, and financial) are logically independent.
Answer: TRUE
Diff: 1 Page Ref: 3

18) A decision support system (DSS) is tailored to the strategic information needs of top-level
management.
Answer: FALSE
Diff: 1 Page Ref: 4

19) The AIS benefits of information technology include automation, information organization,
and communication.
Answer: TRUE
Diff: 1 Page Ref: 5
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,20) AIS application architecture currently focuses on automating the traditional accounting
cycle.
Answer: FALSE
Diff: 2 Page Ref: 6

21) MRP and MRP II software was created to aid in Supply Chain Management (SCM).
Answer: TRUE
Diff: 2 Page Ref: 6

22) In CIM systems, computers control management designed parts of the manufacturing
process.
Answer: FALSE
Diff: 2 Page Ref: 6

23) Flexible manufacturing systems can be reprogrammed to produce entirely different products.
Answer: TRUE
Diff: 1 Page Ref: 6

24) The process management approach aids in the management and improvement of a company's
processes in order to increase customer satisfaction while ignoring the company's cost structure.
Answer: FALSE
Diff: 2 Page Ref: 6

25) ERPs should reduce data duplication, increase communication between functional areas, and
reduce complications of software updates.
Answer: TRUE
Diff: 2 Page Ref: 7

26) ERPs can either be industry-specific or based around "best practices" of various sized
companies.
Answer: TRUE
Diff: 1 Page Ref: 7

27) ERPs are inexpensive and relatively easy to implement.
Answer: FALSE
Diff: 1 Page Ref: 7

28) ERP II adds an Enterprise Application Suite (EAS) to aid in the communication between
functional areas.
Answer: FALSE
Diff: 2 Page Ref: 8

29) Business processes are always triggered by some economic event, and all have clearly
defined starting and ending points.
Answer: TRUE
Diff: 2 Page Ref: 8
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, 30) A key characteristic and benefit of business processes is that they are always limited to one
functional area of the information system.
Answer: FALSE
Diff: 2 Page Ref: 8

31) Analyzing a company's value chain aids in the identification of a company's competitive
advantages.
Answer: TRUE
Diff: 2 Page Ref: 9

32) Operational transaction cycles have traditionally grouped activities of a business into six
common operational processes.
Answer: FALSE
Diff: 2 Page Ref: 11

33) Transactions are used by auditors to verify account balances and internal controls.
Answer: TRUE
Diff: 2 Page Ref: 12

34) The accounting and finance functions should not be segregated in order to increase a
company's internal control.
Answer: FALSE
Diff: 2 Page Ref: 13

35) The director of internal auditing should report directly to the controller of the company.
Answer: FALSE
Diff: 2 Page Ref: 14

36) The treasurer is responsible for the budgeting and tax planning aspects of a business.
Answer: FALSE
Diff: 2 Page Ref: 14

37) Systems programmers usually report to the Manager of Systems Analysis.
Answer: FALSE
Diff: 3 Page Ref: 16

38) A steering committee consists of high-level members of user functions such as
manufacturing and marketing, as well as the head of the information system function and several
of his or her staff.
Answer: TRUE
Diff: 2 Page Ref: 16

39) An information center is a support facility for end users in an organization.
Answer: TRUE
Diff: 1 Page Ref: 17


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