Test Bank AIS - Accounting information system test bank questions and answers 100% solved

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ALL CHAPTERS TEST BANK WITH QUESTIONS AND CORREC
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Chapter 1—The Information System: An Accountant’s Perspective
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TRUE/FALSE

1. Informationmismambusinessmresource.

ANS:m
T
2. Anminformationmsystemmismanmexamplemofmamnaturalmsystem.

ANS:m
F
3. Transactionmprocessingmsystemsmconvertmnon-financialmtransactionsmintomfinancialmtransactions.

ANS:m
F
4. Informationmlackingmreliabilitymmaymstillmhavemvalue.

ANS:m
F
5. AmbalancemsheetmpreparedminmconformitymwithmGAAPmismanmexamplemofmdiscretionarymreporting.

ANS:m
F
6. ThemManagementmReportingmSystemmprovidesmtheminternalmfinancialminformationmneededmtommanag
emambusiness.

ANS:m
T
7. MostmofmtheminputsmtomthemGeneralmLedgermSystemmcomemfrommthemFinancialmReportingmSystem.

ANS:m
F
8. Whenmpreparingmdiscretionarymreports,morganizationsmcanmchoosemwhatminformationmtomreportmandmho
wmtompresentmit.

ANS:m
T
9. Retrievalmismthemtaskmofmpermanentlymremovingmobsoletemormredundantmrecordsmfrommthemdatabase.

ANS:m
F
10. Systemsmdevelopmentmrepresentsm80mtom90mpercentmofmthemtotalmcostmofmamcomputermsystem.

ANS:m
F
11. Themdatabasemadministratormismresponsiblemformthemsecuritymandmintegritymofmthemdatabase.

ANS:m
T
12. Ambackbonemsystemmismcompletelymfinished,mtested,mandmreadymformimplementation.

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ANS:m F

13. Theminternalmauditormrepresentsmtheminterestsmofmthird-partymoutsiders.

ANS:m
F
14. InformationmTechnologym(IT)mauditsmcanmbemperformedmbymbothminternalmandmexternalmauditors.

ANS:m
T
15. Themsinglemlargestmusermofmcomputermservicesmismthempersonnelmfunction.

ANS:m
F
16. Increasedmcontrolmismonemofmthemkeymadvantagesmofmdistributedmdatamprocessing.

ANS:m
F
17. Themflat-filemapproachmismmostmoftenmassociatedmwithmso-calledmlegacymsystems.

ANS:m
T
18. Inmamflat-filemsystem,mfilesmaremeasilymsharedmbymusers.

ANS:m
F
19. LegacymsystemsmweremeliminatedminmthemeffortmtommakemsystemsmY2Kmcompliant.

ANS:m
F
20. Onemofmthemgreatestmdisadvantagesmofmdatabasemsystemsmismthatmallmdatamismalwaysmavailablemtomallmusers.

ANS:m
F
21. UndermSOXmlegislationmauditorsmaremnomlongermallowedmtomprovidemconsultingmservicesmtomauditmclients.

ANS:m
T
22. UndermSOXmlegislationmauditorsmaremnomlogermallowedmtomprovidemconsultingmservicesmtomtheirmclients.

ANS:mF
Theymcannotmprovidemsuchmservicesmtomauditmclientsmbutmmaymstillmprovidemthemmtomnon-auditmclients


MULTIPLEmCHOICE

1. Whichmofmthemfollowingmismnotmambusinessmresource?
a. rawmmaterial
b. labor
c. information
d. allmarembusinessmresource
smANS:mD

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2. Whichmlevelmofmmanagementmismresponsiblemformshort-
termmplanningmandmcoordinationmofmactivitiesmnecessarymtomaccomplishmorganizationalmobjectives
?
a. operationsmmanagement
b. middlemmanagement
c. topmmanagement
d. linemmanagemen
tmANS:mB

3. Whichmlevelmofmmanagementmismresponsiblemformcontrollingmday-to-daymoperations?
a. topmmanagement
b. middlemmanagement
c. operationsmmanagement
d. executivemmanagemen
tmANS:mC

4. Themabilitymtomachievemthemgoalsmofmamsystemmdependsmuponmthemeffectivemfunctioningmandmharmon
iousminteractionmbetweenmitsmsubsystems.mThismismcalled
a. systemmdecomposition
b. systemmredundancy
c. backupmsystem
d. subsystemminterdependenc
ymANS:mD

5. Themvaluemofminformationmformusersmismdeterminedmbymallmofmthemfollowingmbut
a. reliability
b. relevance
c. convenience
d. completeness
mANS:mC

6. Anmexamplemofmamnonfinancialmtransactionmis
a. salemofmproducts
b. cashmdisbursement
c. logmofmcustomermcalls
d. purchasemofminventor
ymANS:mC

7. Anmexamplemofmamfinancialmtransactionmis
a. thempurchasemofmcomputer
b. amsupplier‟smpricemlist
c. amdeliverymschedule
d. anmemployeembenefitmbrochur
emANS:mA

8. WhichmsubsystemmismnotmpartmofmthemAccountingmInformationmSystem?
a. TransactionmProcessingmSystem
b. ExpertmSystem
c. GeneralmLedger/FinancialmReportingmSystem
d. ManagementmReportingmSystem

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ANS:m B

9. ThemmajormdifferencembetweenmthemFinancialmReportingmSystemm(FRS)mandmthemManagementmReport
ingmSystemm(MRS)mismthe
a. FRSmprovidesminformationmtominternalmandmexternalmusers;mthemMRSmprovidesminformatio
nmtominternalmusers
b. FRSmprovidesmdiscretionaryminformation;mthemMRSmprovidesmnondiscretionaryminformation
c. FRSmreportsmarempreparedmusingminformationmprovidedmbymthemGeneralmLedgermSystem;m
themMRSmprovidesminformationmtomthemGeneralmLedgermSystem
d. FRSmreportsmarempreparedminmflexible,mnonstandardizedmformats;mthemMRSmreportsm
arempreparedminmstandardized,mformalmformats
ANS:m
A
10. ThempurposemofmthemTransactionmProcessingmSystemmincludesmallmofmthemfollowingmexcept
a. convertingmeconomicmeventsmintomfinancialmtransactions
b. recordingmfinancialmtransactionsminmthemaccountingmrecords
c. distributingmessentialminformationmtomoperationsmpersonnelmtomsupportmtheirmdailymoperations
d. measuringmandmreportingmthemstatusmofmfinancialmresourcesmandmthemchangesminmth
osemresources
ANS:m
D
11. ThemTransactionmProcessingmSystemmincludesmallmofmthemfollowingmcyclesmexcept
a. themrevenuemcycle
b. themadministrativemcycle
c. themexpendituremcycle
d. themconversionmcycle
ANS:m
B
12. ThemprimaryminputmtomthemTransactionmProcessingmSystemmis
a. amfinancialmtransaction
b. anmaccountingmrecord
c. anmaccountingmreport
d. amnonfinancialmtransaction
ANS:m
A
13. Whenmdesigningmthemdatamcollectionmactivity,mwhichmtypemofmdatamshouldmbemavoided?
a. datamthatmismrelevant
b. datamthatmismefficient
c. datamthatmismredundant
d. datamthatmismaccurate
ANS:m
C
14. Themmostmbasicmelementmofmusefulmdataminmthemdatabasemis
a. themrecord
b. themkey
c. themfile
d. themattribute
ANS:m
D
15. Inmamdatabase,mamcompletemsetmofmattributesmformamsinglemoccurrencemofmanmentitymclassmismcalled