Accounting Information Systems 10e James A. Hall (Test
ss ss ss ss ss ss ss
Bank All Chapters, 100% Original Verified, A+ Grade)
ss ss ss ss ss ss ss ss
Chapter 1 ss
1. Information is a business resource. ss ss ss ss
*a. True ss
b. False ss
2. IT outsourcing is location-independent computing.
ss ss ss ss
a. True
*b. False ss
3. Transaction processing systems convert non-financial transactions
ss ss ss ss ss
into financial transactions.
ss ss ss
a. True
*b. False ss
4. Information lacking reliability may still have value.
ss ss ss ss ss ss
a. True
*b. False ss
5. A balance sheet prepared in conformity with GAAP is an example of
ss ss ss ss ss ss ss ss ss ss ss
discretionary reporting.
ss ss
a. True
*b. False ss
6. The management reporting system provides the internal financial
ss ss ss ss ss ss ss
information needed to manage a business.
ss ss ss ss ss ss
*a. True ss
b. False ss
7. Most of the inputs to the general ledger system come from the
ss ss ss ss ss ss ss ss ss ss ss
financial reporting system.
ss ss ss
a. True
*b. False ss
8. When preparing discretionary reports, organizations can choose what
ss ss ss ss ss ss ss
information to report and how to present it.
ss ss ss ss ss ss ss ss
*a. True ss
b. False ss
,9. Retrieval is the task of permanently removing obsolete or redundant
ss ss ss ss ss ss ss ss ss
records from the database.
ss ss ss ss
a. True
*b. False ss
10. Systems development represents 80 to 90 percent of the total cost
ss ss ss ss ss ss ss ss ss ss
of a computer system.
ss ss ss ss
a. True
*b. False ss
11. The database administrator is responsible for the security and
ss ss ss ss ss ss ss ss
integrity of the database.
ss ss ss ss
*a. True ss
b. False
ss
12. Custom software is developed and maintained by enterprise resource
ss ss ss ss ss ss ss ss
planners.
ss
a. True
*b. False ss
13. The internal auditor represents the interests of third-party
ss ss ss ss ss ss ss
outsiders.
ss
a. True
*b. False ss
14. Information technology (IT) audits can be performed by bothss ss ss ss ss ss ss ss
internal and external auditors.
ss ss ss ss
*a. True ss
b. False
ss
15. Custom software is the most affordable systems development option.
ss ss ss ss ss ss ss ss
a. True
*b. False ss
16. A database is a collection of interconnected computers and
ss ss ss ss ss ss ss ss
communications devices that allows users to communicate, access data
ss ss ss ss ss ss ss ss ss
and applications, and share information and resources.
ss ss ss ss ss ss ss
a. True
*b. False ss
,17. Systems maintenance consumes the majority of a system‘s total
ss ss ss ss ss ss ss ss
costs.
*a. True ss
b. False
ss
18. Cloud computing is a practice in which the organization sells its
ss ss ss ss ss ss ss ss ss ss
IT resources to a third-party outsourcing vendor then leases back IT
ss ss ss ss ss ss ss ss ss ss ss
services from the vendor for a contract period.
ss ss ss ss ss ss ss ss
a. True
*b. False ss
19. A potential benefit of cloud computing is that the client firm does
ss ss ss ss ss ss ss ss ss ss ss
not need to know where its data are being processed.
ss ss ss ss ss ss ss ss ss ss
a. True
*b. False ss
20. One of the greatest disadvantages of database systems is that all
ss ss ss ss ss ss ss ss ss ss
data is always available to all users.
ss ss ss ss ss ss ss
a. True
*b. False ss
21. Under SOX legislation public accounting firms are no longer allowed
ss ss ss ss ss ss ss ss ss
to provide consulting services to audit clients.
ss ss ss ss ss ss ss
*a. True ss
b. False
ss
22. One member of a company‘s audit committee must be an independent
ss ss ss ss ss ss ss ss ss ss
CPA.
a. True
*b. False ss
23. Which of the following is not a business resource?
ss ss ss ss ss ss ss ss
a. raw material ss
b. labor
c. information
*d. all are business resources
ss ss ss ss
, 24. Which level of management is responsible for short-term planning and
ss ss ss ss ss ss ss ss ss
coordination of activities necessary to accomplish organizational
ss ss ss ss ss ss ss
objectives?
ss
a. operations management ss
*b. middle management
ss ss
c. top management ss
d. line management ss
25. Which level of management is responsible for controlling day-to-day
ss ss ss ss ss ss ss ss
ss operations?
a. top management ss
b. middle management ss
*c. operations management
ss ss
d. executive management
ss ss
26. Location-independent computing in which shared data centers deliver hosted IT ss ss ss ss ss ss ss ss ss
ss services over the Internet is called
ss ss ss ss ss
a. IT outsourcing ss
b. network administration ss
*c. cloud computing
ss ss
d. custom software
ss ss
27. The value of information for users is determined by all of the following except
ss ss ss ss ss ss ss ss ss ss ss ss ss
a. reliability
b. relevance
*c. convenience ss
d. completeness
ss
28. An example of a nonfinancial transaction is
ss ss ss ss ss ss
a. sale of products ss ss
b. cash disbursement ss
*c. log of customer calls
ss ss ss ss
d. purchase of inventory
ss ss ss
29. An example of a financial transaction is
ss ss ss ss ss ss
*a. the purchase of computer
ss ss ss ss
b. a supplier‘s price list
ss ss ss
c. a delivery scheduless ss
d. an employee benefit brochure
ss ss ss
30. Which subsystem is not part of the accounting information system?
ss ss ss ss ss ss ss ss ss
ss ss ss ss ss ss ss
Bank All Chapters, 100% Original Verified, A+ Grade)
ss ss ss ss ss ss ss ss
Chapter 1 ss
1. Information is a business resource. ss ss ss ss
*a. True ss
b. False ss
2. IT outsourcing is location-independent computing.
ss ss ss ss
a. True
*b. False ss
3. Transaction processing systems convert non-financial transactions
ss ss ss ss ss
into financial transactions.
ss ss ss
a. True
*b. False ss
4. Information lacking reliability may still have value.
ss ss ss ss ss ss
a. True
*b. False ss
5. A balance sheet prepared in conformity with GAAP is an example of
ss ss ss ss ss ss ss ss ss ss ss
discretionary reporting.
ss ss
a. True
*b. False ss
6. The management reporting system provides the internal financial
ss ss ss ss ss ss ss
information needed to manage a business.
ss ss ss ss ss ss
*a. True ss
b. False ss
7. Most of the inputs to the general ledger system come from the
ss ss ss ss ss ss ss ss ss ss ss
financial reporting system.
ss ss ss
a. True
*b. False ss
8. When preparing discretionary reports, organizations can choose what
ss ss ss ss ss ss ss
information to report and how to present it.
ss ss ss ss ss ss ss ss
*a. True ss
b. False ss
,9. Retrieval is the task of permanently removing obsolete or redundant
ss ss ss ss ss ss ss ss ss
records from the database.
ss ss ss ss
a. True
*b. False ss
10. Systems development represents 80 to 90 percent of the total cost
ss ss ss ss ss ss ss ss ss ss
of a computer system.
ss ss ss ss
a. True
*b. False ss
11. The database administrator is responsible for the security and
ss ss ss ss ss ss ss ss
integrity of the database.
ss ss ss ss
*a. True ss
b. False
ss
12. Custom software is developed and maintained by enterprise resource
ss ss ss ss ss ss ss ss
planners.
ss
a. True
*b. False ss
13. The internal auditor represents the interests of third-party
ss ss ss ss ss ss ss
outsiders.
ss
a. True
*b. False ss
14. Information technology (IT) audits can be performed by bothss ss ss ss ss ss ss ss
internal and external auditors.
ss ss ss ss
*a. True ss
b. False
ss
15. Custom software is the most affordable systems development option.
ss ss ss ss ss ss ss ss
a. True
*b. False ss
16. A database is a collection of interconnected computers and
ss ss ss ss ss ss ss ss
communications devices that allows users to communicate, access data
ss ss ss ss ss ss ss ss ss
and applications, and share information and resources.
ss ss ss ss ss ss ss
a. True
*b. False ss
,17. Systems maintenance consumes the majority of a system‘s total
ss ss ss ss ss ss ss ss
costs.
*a. True ss
b. False
ss
18. Cloud computing is a practice in which the organization sells its
ss ss ss ss ss ss ss ss ss ss
IT resources to a third-party outsourcing vendor then leases back IT
ss ss ss ss ss ss ss ss ss ss ss
services from the vendor for a contract period.
ss ss ss ss ss ss ss ss
a. True
*b. False ss
19. A potential benefit of cloud computing is that the client firm does
ss ss ss ss ss ss ss ss ss ss ss
not need to know where its data are being processed.
ss ss ss ss ss ss ss ss ss ss
a. True
*b. False ss
20. One of the greatest disadvantages of database systems is that all
ss ss ss ss ss ss ss ss ss ss
data is always available to all users.
ss ss ss ss ss ss ss
a. True
*b. False ss
21. Under SOX legislation public accounting firms are no longer allowed
ss ss ss ss ss ss ss ss ss
to provide consulting services to audit clients.
ss ss ss ss ss ss ss
*a. True ss
b. False
ss
22. One member of a company‘s audit committee must be an independent
ss ss ss ss ss ss ss ss ss ss
CPA.
a. True
*b. False ss
23. Which of the following is not a business resource?
ss ss ss ss ss ss ss ss
a. raw material ss
b. labor
c. information
*d. all are business resources
ss ss ss ss
, 24. Which level of management is responsible for short-term planning and
ss ss ss ss ss ss ss ss ss
coordination of activities necessary to accomplish organizational
ss ss ss ss ss ss ss
objectives?
ss
a. operations management ss
*b. middle management
ss ss
c. top management ss
d. line management ss
25. Which level of management is responsible for controlling day-to-day
ss ss ss ss ss ss ss ss
ss operations?
a. top management ss
b. middle management ss
*c. operations management
ss ss
d. executive management
ss ss
26. Location-independent computing in which shared data centers deliver hosted IT ss ss ss ss ss ss ss ss ss
ss services over the Internet is called
ss ss ss ss ss
a. IT outsourcing ss
b. network administration ss
*c. cloud computing
ss ss
d. custom software
ss ss
27. The value of information for users is determined by all of the following except
ss ss ss ss ss ss ss ss ss ss ss ss ss
a. reliability
b. relevance
*c. convenience ss
d. completeness
ss
28. An example of a nonfinancial transaction is
ss ss ss ss ss ss
a. sale of products ss ss
b. cash disbursement ss
*c. log of customer calls
ss ss ss ss
d. purchase of inventory
ss ss ss
29. An example of a financial transaction is
ss ss ss ss ss ss
*a. the purchase of computer
ss ss ss ss
b. a supplier‘s price list
ss ss ss
c. a delivery scheduless ss
d. an employee benefit brochure
ss ss ss
30. Which subsystem is not part of the accounting information system?
ss ss ss ss ss ss ss ss ss
