Accounting Information Systems 10th Edition
%ij %ij %ij %ij
by James Hall
%ij %ij
♦️♦️♦️All % i j Chapters % i j Included % i j ✅✅✅
♦️♦️♦️All % i j Answers % i j Included % i j ✅✅✅
,TEST BANK FOR
Accounting Information Systems 10e James A. Hall
Chapter 1
1. Information is a business resource.
*a. True
b. False
2. IT outsourcing is location-independent computing.
a. True
*b. False
3. Transaction processing systems convert non-financial transactions
into financial transactions.
a. True
*b. False
4. Information lacking reliability may still have value.
a. True
*b. False
5. A balance sheet prepared in conformity with GAAP is an example of
discretionary reporting.
a. True
*b. False
6. The management reporting system provides the internal financial
information needed to manage a business.
*a. True
b. False
7. Most of the inputs to the general ledger system come from the
financial reporting system.
a. True
*b. False
8. When preparing discretionary reports, organizations can choose what
information to report and how to present it.
*a. True
b. False
,9. Retrieval %ijis %ijthe %ijtask %ijof %ijpermanently %ijremoving %ijobsolete %ijor
%ijredundant %ijrecords %ijfrom %ijthe %ijdatabase.
a. True
*b. %ijFalse
10. Systems %ijdevelopment %ijrepresents %ij80 %ijto %ij90 %ijpercent %ijof %ijthe
%ijtotal %ijcost %ijof %ija %ijcomputer %ijsystem.
a. True
*b. %ijFalse
11. The %ijdatabase %ijadministrator %ijis %ijresponsible %ijfor %ijthe
%ijsecurity %ijand %ijintegrity %ijof %ijthe %ijdatabase.
*a. %ijTrue
b. %ijFalse
12. Custom %ijsoftware %ijis %ijdeveloped %ijand %ijmaintained %ijby %ijenterprise
%ijresource %ijplanners.
a. True
*b. %ijFalse
13. The %ijinternal %ijauditor %ijrepresents %ijthe %ijinterests %ijof %ijthird-
party %ijoutsiders.
a. True
*b. %ijFalse
14. Information %ijtechnology %ij(IT) %ijaudits %ijcan %ijbe %ijperformed %ijby
%ijboth %ijinternal %ijand %ijexternal %ijauditors.
*a. %ijTrue
b. %ijFalse
15. Custom %ijsoftware %ijis %ijthe %ijmost %ijaffordable %ijsystems %ijdevelopment
%ijoption.
a. True
*b. %ijFalse
16. A %ijdatabase %ijis %ija %ijcollection %ijof %ijinterconnected %ijcomputers
%ijand %ijcommunications %ijdevices %ijthat %ijallows %ijusers %ijto %ijcommunicate,
%ijaccess %ijdata %ijand %ijapplications, %ijand %ijshare %ijinformation %ijand
%ijresources.
a. True
*b. %ijFalse
, 17. Systems %ijmaintenance %ijconsumes %ijthe %ijmajority %ijof %ija %ijsystem’s
%ijtotal %ijcosts.
*a. %ijTrue
b. %ijFalse
18. Cloud %ijcomputing %ijis %ija %ijpractice %ijin %ijwhich %ijthe %ijorganization
%ijsells %ijits %ijIT %ijresources %ijto %ija %ijthird-party %ijoutsourcing %ijvendor
%ijthen %ijleases %ijback %ijIT %ijservices %ijfrom %ijthe %ijvendor %ijfor %ija
%ijcontract %ijperiod.
a. True
*b. %ijFalse
19. A %ijpotential %ijbenefit %ijof %ijcloud %ijcomputing %ijis %ijthat %ijthe %ijclient
%ijfirm %ijdoes %ijnot %ijneed %ijto %ijknow %ijwhere %ijits %ijdata %ijare %ijbeing
%ijprocessed.
a. True
*b. %ijFalse
20. One %ijof %ijthe %ijgreatest %ijdisadvantages %ijof %ijdatabase %ijsystems is
%ij
%ijthat %ijall %ijdata %ijis %ijalways %ijavailable %ijto %ijall %ijusers.
a. True
*b. %ijFalse
21. Under %ijSOX %ijlegislation %ijpublic %ijaccounting %ijfirms %ijare %ijno %ijlonger
%ijallowed %ijto %ijprovide %ijconsulting %ijservices %ijto %ijaudit %ijclients.
*a. %ijTrue
b. %ijFalse
22. One %ijmember %ijof %ija %ijcompany’s %ijaudit %ijcommittee %ijmust %ijbe %ijan
%ijindependent %ijCPA.
a. True
*b. %ijFalse
23. Which %ijof %ijthe %ijfollowing %ijis %ijnot %ija %ijbusiness %ijresource?
a. raw %ijmaterial
b. labor
c. information
*d. %ijall %ijare %ijbusiness %ijresources
%ij %ij %ij %ij
by James Hall
%ij %ij
♦️♦️♦️All % i j Chapters % i j Included % i j ✅✅✅
♦️♦️♦️All % i j Answers % i j Included % i j ✅✅✅
,TEST BANK FOR
Accounting Information Systems 10e James A. Hall
Chapter 1
1. Information is a business resource.
*a. True
b. False
2. IT outsourcing is location-independent computing.
a. True
*b. False
3. Transaction processing systems convert non-financial transactions
into financial transactions.
a. True
*b. False
4. Information lacking reliability may still have value.
a. True
*b. False
5. A balance sheet prepared in conformity with GAAP is an example of
discretionary reporting.
a. True
*b. False
6. The management reporting system provides the internal financial
information needed to manage a business.
*a. True
b. False
7. Most of the inputs to the general ledger system come from the
financial reporting system.
a. True
*b. False
8. When preparing discretionary reports, organizations can choose what
information to report and how to present it.
*a. True
b. False
,9. Retrieval %ijis %ijthe %ijtask %ijof %ijpermanently %ijremoving %ijobsolete %ijor
%ijredundant %ijrecords %ijfrom %ijthe %ijdatabase.
a. True
*b. %ijFalse
10. Systems %ijdevelopment %ijrepresents %ij80 %ijto %ij90 %ijpercent %ijof %ijthe
%ijtotal %ijcost %ijof %ija %ijcomputer %ijsystem.
a. True
*b. %ijFalse
11. The %ijdatabase %ijadministrator %ijis %ijresponsible %ijfor %ijthe
%ijsecurity %ijand %ijintegrity %ijof %ijthe %ijdatabase.
*a. %ijTrue
b. %ijFalse
12. Custom %ijsoftware %ijis %ijdeveloped %ijand %ijmaintained %ijby %ijenterprise
%ijresource %ijplanners.
a. True
*b. %ijFalse
13. The %ijinternal %ijauditor %ijrepresents %ijthe %ijinterests %ijof %ijthird-
party %ijoutsiders.
a. True
*b. %ijFalse
14. Information %ijtechnology %ij(IT) %ijaudits %ijcan %ijbe %ijperformed %ijby
%ijboth %ijinternal %ijand %ijexternal %ijauditors.
*a. %ijTrue
b. %ijFalse
15. Custom %ijsoftware %ijis %ijthe %ijmost %ijaffordable %ijsystems %ijdevelopment
%ijoption.
a. True
*b. %ijFalse
16. A %ijdatabase %ijis %ija %ijcollection %ijof %ijinterconnected %ijcomputers
%ijand %ijcommunications %ijdevices %ijthat %ijallows %ijusers %ijto %ijcommunicate,
%ijaccess %ijdata %ijand %ijapplications, %ijand %ijshare %ijinformation %ijand
%ijresources.
a. True
*b. %ijFalse
, 17. Systems %ijmaintenance %ijconsumes %ijthe %ijmajority %ijof %ija %ijsystem’s
%ijtotal %ijcosts.
*a. %ijTrue
b. %ijFalse
18. Cloud %ijcomputing %ijis %ija %ijpractice %ijin %ijwhich %ijthe %ijorganization
%ijsells %ijits %ijIT %ijresources %ijto %ija %ijthird-party %ijoutsourcing %ijvendor
%ijthen %ijleases %ijback %ijIT %ijservices %ijfrom %ijthe %ijvendor %ijfor %ija
%ijcontract %ijperiod.
a. True
*b. %ijFalse
19. A %ijpotential %ijbenefit %ijof %ijcloud %ijcomputing %ijis %ijthat %ijthe %ijclient
%ijfirm %ijdoes %ijnot %ijneed %ijto %ijknow %ijwhere %ijits %ijdata %ijare %ijbeing
%ijprocessed.
a. True
*b. %ijFalse
20. One %ijof %ijthe %ijgreatest %ijdisadvantages %ijof %ijdatabase %ijsystems is
%ij
%ijthat %ijall %ijdata %ijis %ijalways %ijavailable %ijto %ijall %ijusers.
a. True
*b. %ijFalse
21. Under %ijSOX %ijlegislation %ijpublic %ijaccounting %ijfirms %ijare %ijno %ijlonger
%ijallowed %ijto %ijprovide %ijconsulting %ijservices %ijto %ijaudit %ijclients.
*a. %ijTrue
b. %ijFalse
22. One %ijmember %ijof %ija %ijcompany’s %ijaudit %ijcommittee %ijmust %ijbe %ijan
%ijindependent %ijCPA.
a. True
*b. %ijFalse
23. Which %ijof %ijthe %ijfollowing %ijis %ijnot %ija %ijbusiness %ijresource?
a. raw %ijmaterial
b. labor
c. information
*d. %ijall %ijare %ijbusiness %ijresources
