Test Bank Complete_
Accounting Information Systems 9th Edition
By James Hall (Author)
All Chapters 1-17| 5 Units| Updated Version With Verified Answers| Rated A+
From: [Bestmaxsolutions.stuvia
,PART I: OVERVIEW OF ACCOUNTING INFORMATION SYSTEMS _________________________ 3
Chapter 1—The Information System: An Accountant’s Perspective __________________________ 3
Chapter 2—Introduction To Transaction Processing _____________________________________ 35
Chapter 3—Ethics, Fraud, And Internal Control _________________________________________ 70
PART II: TRANSACTION CYCLES AND BUSINESS PROCESSES __________________________ 120
Chapter 4—The Revenue Cycle _____________________________________________________ 120
Chapter 5—The Expenditure Cycle Part I: Purchases And Cash Disbursements Procedures _____ 151
Chapter 6—The Expenditure Cycle Part II: Payroll Processing And Fixed Asset Procedures ______ 183
Chapter 7—The Conversion Cycle ___________________________________________________ 211
Chapter 8—Financial Reporting, And Management Reporting Systems _____________________ 242
PART III: ADVANCED TECHNOLOGIES IN ACCOUNTING INFORMATION ________________ 271
Chapter 9—Database Management Systems __________________________________________ 271
Chapter 10—The REA Approach To Business Process Modeling ___________________________ 300
Chapter 11—Enterprise Resource Planning Systems ____________________________________ 321
Chapter 12—Electronic Commerce Systems ___________________________________________ 349
PART IV: SYSTEMS DEVELOPMENT ACTIVITIES ____________________________________ 385
Chapter 13—Managing The Systems Development Life Cycle _____________________________ 385
Chapter 14—Construct, Deliver, And Maintain Systems Projects __________________________ 412
PART V: COMPUTER CONTROLS AND IT AUDITING ________________________________ 436
Chapter 15—Auditing IT Controls Part I: Sarbanes-Oxley And IT Governance ________________ 436
Chapter 16—Auditing IT Controls Part II: Security And Access ____________________________ 474
Chapter 17—Auditing IT Controls Part III: Systems Development, Program Changes, and Application
Auditing _______________________________________________________________________ 503
NB: All Chapters 1-17 Have Below Questions
1. True/False Questions
2. Multiple Choice Questions
3. Short Answer Questions
4. Essay Questions
,PART I: OVERVIEW OF ACCOUNTING INFORMATION SYSTEMS
Chapter 1—The Information System: An Accountant’s Perspective
James Hall: Accounting Information Systems 9th Edition, Test Bank
TRUE/FALSE
1. Information Is A Business Resource.
ANS: TRUE PTS: 1
2. IT Outsourcing Is Location-Independent Computing.
ANS: FALSE PTS: 1
3. Transaction Processing Systems Convert Non-Financial Transactions Into Financial
Transactions.
ANS: FALSE PTS: 1
4. Information Lacking Reliability May Still Have Value.
ANS: FALSE PTS: 1
5. A Balance Sheet Prepared In Conformity With GAAP Is An Example Of Discretionary
Reporting.
ANS: FALSE PTS: 1
,6. The Management Reporting System Provides The Internal Financial Information
Needed To Manage A Business.
ANS: TRUE PTS: 1
7. Most Of The Inputs To The General Ledger System Come From The Financial
Reporting System.
ANS: FALSE PTS: 1
8. When Preparing Discretionary Reports, Organizations Can Choose What Information
To Report And How To Present It.
ANS: TRUE PTS: 1
9. Retrieval Is The Task Of Permanently Removing Obsolete Or Redundant Records
From The Database.
ANS: FALSE PTS: 1
10. Systems Development Represents 80 To 90 Percent Of The Total Cost Of A
Computer System.
ANS: FALSE PTS: 1
11. The Database Administrator Is Responsible For The Security And Integrity Of The
Database.
ANS: TRUE PTS: 1
,12. Custom Software Is Completely Finished, Tested, And Ready For Implementation.
ANS: FALSE PTS: 1
13. The Internal Auditor Represents The Interests Of Third-Party Outsiders.
ANS: FALSE PTS: 1
14. Information Technology (IT) Audits Can Be Performed By Both Internal And
External Auditors.
ANS: TRUE PTS: 1
15. Custom Software Is The Most Affordable Systems Development Option.
ANS: FALSE PTS: 1
16. A Database Is A Collection Of Interconnected Computers And Communications
Devices That Allows Users To Communicate, Access Data And Applications, And Share
Information And Resources.
ANS: FALSE PTS: 1
17. Systems Maintenance Consumes The Majority Of A System’s Total Costs.
ANS: TRUE PTS: 1
18. Cloud Computing Is A Practice In Which The Organization Sells Its IT Resources To
A Third-Party Outsourcing Vendor Then Leases Back IT Services From The Vendor For
A Contract Period.
,ANS: FALSE PTS: 1
19.A Po tential Benefit Of Cloud Computing Is That The Client Firm Does Not Need To
Know Where Its Data Are Bring Processed.
ANS: FALSE PTS: 1
20. One Of The Greatest Disadvantages Of Database Systems Is That All Data Is Always
Available To All Users.
ANS: FALSE PTS: 1
21. Under SOX Legislation Public Accounting Firms Are No Longer Allowed To
Provide Consulting Services To Audit Clients.
ANS: TRUE PTS: 1
22. One Member Of A Company’s Audit Committee Must Be An Independent CPA.
ANS: FALSE PTS: 1
MULTIPLE CHOICE
1. Which Of The Following Is Not A Business Resource?
A. Raw Material
B. Labor
C. Information
D. All Are Business Resources
ANS: D
,All The Options Listed (Raw Material, Labor, And Information) Are Considered
Business Resources As They Contribute To The Production Or Operation Of A Business.
Therefore, The Correct Answer Is "All Are Business Resources."
PTS: 1
2. Which Level Of Management Is Responsible For Short-Term Planning And
Coordination Of Activities Necessary To Accomplish Organizational Objectives?
A. Operations Management
B. Middle Management
C. Top Management
D. Line Management
ANS: B
Middle Management Is Responsible For Bridging The Gap Between Top-Level Strategic
Planning And The Day-To-Day Operations. They Focus On Implementing Short-Term
Plans And Coordinating Activities.
PTS: 1
3. Which Level Of Management Is Responsible For Controlling Day-To-Day
Operations?
A. Top Management
B. Middle Management
C. Operations Management
D. Executive Management
ANS: C
Operations Management Is Directly Responsible For Overseeing The Daily Activities
And Ensuring The Organization Runs Smoothly On A Day-To-Day Basis.
PTS: 1
, 4. Location-Independent Computing In Which Shared Data Centers Deliver Hosted IT
Services Over The Internet.
A. IT Outsourcing
B. Network Administration
C. Cloud Computing
D. Custom Software
ANS: C
Cloud Computing Allows Businesses To Use IT Services Like Storage, Processing
Power, And Software Applications Over The Internet Without Maintaining Physical
Infrastructure.
PTS: 1
5. The Value Of Information For Users Is Determined By All Of The Following But:
A. Reliability
B. Relevance
C. Convenience
D. Completeness
ANS: C
While Reliability, Relevance, And Completeness Are Critical For Assessing The Value
Of Information, Convenience Is Not A Determining Factor. The Value Lies In How
Accurate And Complete The Information Is.
PTS: 1
6. An Example Of A Nonfinancial Transaction Is:
A. Sale Of Products
B. Cash Disbursement
C. Log Of Customer Calls
D. Purchase Of Inventory
Accounting Information Systems 9th Edition
By James Hall (Author)
All Chapters 1-17| 5 Units| Updated Version With Verified Answers| Rated A+
From: [Bestmaxsolutions.stuvia
,PART I: OVERVIEW OF ACCOUNTING INFORMATION SYSTEMS _________________________ 3
Chapter 1—The Information System: An Accountant’s Perspective __________________________ 3
Chapter 2—Introduction To Transaction Processing _____________________________________ 35
Chapter 3—Ethics, Fraud, And Internal Control _________________________________________ 70
PART II: TRANSACTION CYCLES AND BUSINESS PROCESSES __________________________ 120
Chapter 4—The Revenue Cycle _____________________________________________________ 120
Chapter 5—The Expenditure Cycle Part I: Purchases And Cash Disbursements Procedures _____ 151
Chapter 6—The Expenditure Cycle Part II: Payroll Processing And Fixed Asset Procedures ______ 183
Chapter 7—The Conversion Cycle ___________________________________________________ 211
Chapter 8—Financial Reporting, And Management Reporting Systems _____________________ 242
PART III: ADVANCED TECHNOLOGIES IN ACCOUNTING INFORMATION ________________ 271
Chapter 9—Database Management Systems __________________________________________ 271
Chapter 10—The REA Approach To Business Process Modeling ___________________________ 300
Chapter 11—Enterprise Resource Planning Systems ____________________________________ 321
Chapter 12—Electronic Commerce Systems ___________________________________________ 349
PART IV: SYSTEMS DEVELOPMENT ACTIVITIES ____________________________________ 385
Chapter 13—Managing The Systems Development Life Cycle _____________________________ 385
Chapter 14—Construct, Deliver, And Maintain Systems Projects __________________________ 412
PART V: COMPUTER CONTROLS AND IT AUDITING ________________________________ 436
Chapter 15—Auditing IT Controls Part I: Sarbanes-Oxley And IT Governance ________________ 436
Chapter 16—Auditing IT Controls Part II: Security And Access ____________________________ 474
Chapter 17—Auditing IT Controls Part III: Systems Development, Program Changes, and Application
Auditing _______________________________________________________________________ 503
NB: All Chapters 1-17 Have Below Questions
1. True/False Questions
2. Multiple Choice Questions
3. Short Answer Questions
4. Essay Questions
,PART I: OVERVIEW OF ACCOUNTING INFORMATION SYSTEMS
Chapter 1—The Information System: An Accountant’s Perspective
James Hall: Accounting Information Systems 9th Edition, Test Bank
TRUE/FALSE
1. Information Is A Business Resource.
ANS: TRUE PTS: 1
2. IT Outsourcing Is Location-Independent Computing.
ANS: FALSE PTS: 1
3. Transaction Processing Systems Convert Non-Financial Transactions Into Financial
Transactions.
ANS: FALSE PTS: 1
4. Information Lacking Reliability May Still Have Value.
ANS: FALSE PTS: 1
5. A Balance Sheet Prepared In Conformity With GAAP Is An Example Of Discretionary
Reporting.
ANS: FALSE PTS: 1
,6. The Management Reporting System Provides The Internal Financial Information
Needed To Manage A Business.
ANS: TRUE PTS: 1
7. Most Of The Inputs To The General Ledger System Come From The Financial
Reporting System.
ANS: FALSE PTS: 1
8. When Preparing Discretionary Reports, Organizations Can Choose What Information
To Report And How To Present It.
ANS: TRUE PTS: 1
9. Retrieval Is The Task Of Permanently Removing Obsolete Or Redundant Records
From The Database.
ANS: FALSE PTS: 1
10. Systems Development Represents 80 To 90 Percent Of The Total Cost Of A
Computer System.
ANS: FALSE PTS: 1
11. The Database Administrator Is Responsible For The Security And Integrity Of The
Database.
ANS: TRUE PTS: 1
,12. Custom Software Is Completely Finished, Tested, And Ready For Implementation.
ANS: FALSE PTS: 1
13. The Internal Auditor Represents The Interests Of Third-Party Outsiders.
ANS: FALSE PTS: 1
14. Information Technology (IT) Audits Can Be Performed By Both Internal And
External Auditors.
ANS: TRUE PTS: 1
15. Custom Software Is The Most Affordable Systems Development Option.
ANS: FALSE PTS: 1
16. A Database Is A Collection Of Interconnected Computers And Communications
Devices That Allows Users To Communicate, Access Data And Applications, And Share
Information And Resources.
ANS: FALSE PTS: 1
17. Systems Maintenance Consumes The Majority Of A System’s Total Costs.
ANS: TRUE PTS: 1
18. Cloud Computing Is A Practice In Which The Organization Sells Its IT Resources To
A Third-Party Outsourcing Vendor Then Leases Back IT Services From The Vendor For
A Contract Period.
,ANS: FALSE PTS: 1
19.A Po tential Benefit Of Cloud Computing Is That The Client Firm Does Not Need To
Know Where Its Data Are Bring Processed.
ANS: FALSE PTS: 1
20. One Of The Greatest Disadvantages Of Database Systems Is That All Data Is Always
Available To All Users.
ANS: FALSE PTS: 1
21. Under SOX Legislation Public Accounting Firms Are No Longer Allowed To
Provide Consulting Services To Audit Clients.
ANS: TRUE PTS: 1
22. One Member Of A Company’s Audit Committee Must Be An Independent CPA.
ANS: FALSE PTS: 1
MULTIPLE CHOICE
1. Which Of The Following Is Not A Business Resource?
A. Raw Material
B. Labor
C. Information
D. All Are Business Resources
ANS: D
,All The Options Listed (Raw Material, Labor, And Information) Are Considered
Business Resources As They Contribute To The Production Or Operation Of A Business.
Therefore, The Correct Answer Is "All Are Business Resources."
PTS: 1
2. Which Level Of Management Is Responsible For Short-Term Planning And
Coordination Of Activities Necessary To Accomplish Organizational Objectives?
A. Operations Management
B. Middle Management
C. Top Management
D. Line Management
ANS: B
Middle Management Is Responsible For Bridging The Gap Between Top-Level Strategic
Planning And The Day-To-Day Operations. They Focus On Implementing Short-Term
Plans And Coordinating Activities.
PTS: 1
3. Which Level Of Management Is Responsible For Controlling Day-To-Day
Operations?
A. Top Management
B. Middle Management
C. Operations Management
D. Executive Management
ANS: C
Operations Management Is Directly Responsible For Overseeing The Daily Activities
And Ensuring The Organization Runs Smoothly On A Day-To-Day Basis.
PTS: 1
, 4. Location-Independent Computing In Which Shared Data Centers Deliver Hosted IT
Services Over The Internet.
A. IT Outsourcing
B. Network Administration
C. Cloud Computing
D. Custom Software
ANS: C
Cloud Computing Allows Businesses To Use IT Services Like Storage, Processing
Power, And Software Applications Over The Internet Without Maintaining Physical
Infrastructure.
PTS: 1
5. The Value Of Information For Users Is Determined By All Of The Following But:
A. Reliability
B. Relevance
C. Convenience
D. Completeness
ANS: C
While Reliability, Relevance, And Completeness Are Critical For Assessing The Value
Of Information, Convenience Is Not A Determining Factor. The Value Lies In How
Accurate And Complete The Information Is.
PTS: 1
6. An Example Of A Nonfinancial Transaction Is:
A. Sale Of Products
B. Cash Disbursement
C. Log Of Customer Calls
D. Purchase Of Inventory
