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AIS Exam 1 Questions and Answers (Expert
Solutions)
Q: An accounting information system must be able to perform which of the following
tasks?
A. collect transaction data
B. process transaction data
C. provide adequate controls
D. All of these, 🗹🗹: D. All of these
Q: Paid time-off policies, job descriptions, and procedures manuals are examples of
information needed to support key decisions in what business process?
Select one:
A. sell merchandise
B. hire and train employees
C. acquire inventory
D. collect payment from customers, 🗹🗹: B. hire and train employees
Q: Which of the following statements below shows the contrast between data and
information?
Select one:
A. Data and information are the same.
B. Data is more useful in decision making than information.
C. Information is the primary output of an accounting information system.
D. Data is the primary output of an accounting information system., 🗹🗹: C.
Information is the primary output of an accounting information system.
Q: Before a firm can identify the information needed to effectively manage a process, the
firm must
Select one:
A. obtain internet access.
B. hire an outside consultant.
C. purchase computers and/or workstations.
D. understand the process., 🗹🗹: D. understand the process.
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Q: When a subsystem's goals are inconsistent with the goals of another subsystem or with
the system as a whole, it creates
Select one:
A. system inconsistence.
B. goal inconsistence.
C. system conflict.
D. goal conflict., 🗹🗹: D. goal conflict
Q: Which of the following is not an example of a common activity in an AIS?
Select one:
A. sell goods and services and collect cash
B. buy and pay for goods and services
C. record sales calls for marketing purposes
D. summarize and report results to interested parties, 🗹🗹: C. record sales calls for
marketing purposes
Q: Identify the piece of information below that is typically needed to acquire a building.
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs, 🗹🗹: D. capacity needs
Q: When a subsystem achieves its goals while contributing to the organization's overall
goal, it is called
Select one:
A. goal congruence.
B. system congruence.
C. goal match.
D. system match., 🗹🗹: B. system congruence.
Q: Which of the following is not one of the components of an AIS?
Select one:
A. internal controls and security measures
B. procedures and instructions
C. hardware
D. people, 🗹🗹: C. hardware
Q: Identify the piece of information below that is typically needed to acquire inventory.
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Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs, 🗹🗹: B. vendor performance
Q: Information is best described as
Select one:
A. the same thing as data.
B. data that has been organized and processed so that it is meaningful to the user.
C. raw facts about transactions.
D. facts that are useful when processed in a timely manner., 🗹🗹: B. data that has
been organized and processed so that it is meaningful to the user.
Q: The primary objective of accounting is to
Select one:
A. ensure the profitability of an organization.
B. implement strong internal controls.
C. provide useful information to decision makers.
D. prepare financial statements., 🗹🗹: C. provide useful information to decision
makers.
Q: Identify the piece of information below that is typically needed to hire and train
employees.
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs, 🗹🗹: A. job descriptions
Q: Many modern accounting software packages offer separate transaction cycle modules.
What is the reason for this?
Select one:
A. The nature of a given transaction cycle is the same irrespective of the type of
organization.
B. Every organization does not need to implement all of the available transaction cycle
modules.
C. A properly designed AIS does not use the concept of separate business transaction
cycles to process transactions.
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D. Most businesses do not need the revenue cycle module as part of their AIS., 🗹🗹:
B. Every organization does not need to implement all of the available transaction cycle
modules.
Q: The value of information can best be determined by
Select one:
A. the extent to which it optimizes the value chain.
B. the benefits associated with obtaining the information minus the cost of producing it.
C. its relevance to decision makers.
D. its usefulness to decision makers., 🗹🗹: B. the benefits associated with obtaining
the information minus the cost of producing it.
Q: An accounting information system (AIS) processes ________ to provide users with
________.
Select one:
A. information; data
B. data; benefits
C. data; transactions
D. data; information, 🗹🗹: D. data; information
Q: How can query languages be used to help make better decisions?
Select one:
A. They can gather relevant data for decision making.
B. They can suggest a course of action.
C. They can model choose among alternative courses of action.
D. They can help the decision maker to interpret results., 🗹🗹: A. They can gather
relevant data for decision making.
Q: ________ information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
Select one:
A. Timely
B. Reliable
C. Relevant
D. Complete, 🗹🗹: C. Relevant
Q: What is a key decision that needs to be made with regards to selling merchandise?
Select one:
A. which credit cards to accept
B. which employees to hire
AIS Exam 1 Questions and Answers (Expert
Solutions)
Q: An accounting information system must be able to perform which of the following
tasks?
A. collect transaction data
B. process transaction data
C. provide adequate controls
D. All of these, 🗹🗹: D. All of these
Q: Paid time-off policies, job descriptions, and procedures manuals are examples of
information needed to support key decisions in what business process?
Select one:
A. sell merchandise
B. hire and train employees
C. acquire inventory
D. collect payment from customers, 🗹🗹: B. hire and train employees
Q: Which of the following statements below shows the contrast between data and
information?
Select one:
A. Data and information are the same.
B. Data is more useful in decision making than information.
C. Information is the primary output of an accounting information system.
D. Data is the primary output of an accounting information system., 🗹🗹: C.
Information is the primary output of an accounting information system.
Q: Before a firm can identify the information needed to effectively manage a process, the
firm must
Select one:
A. obtain internet access.
B. hire an outside consultant.
C. purchase computers and/or workstations.
D. understand the process., 🗹🗹: D. understand the process.
, Page | 2
Q: When a subsystem's goals are inconsistent with the goals of another subsystem or with
the system as a whole, it creates
Select one:
A. system inconsistence.
B. goal inconsistence.
C. system conflict.
D. goal conflict., 🗹🗹: D. goal conflict
Q: Which of the following is not an example of a common activity in an AIS?
Select one:
A. sell goods and services and collect cash
B. buy and pay for goods and services
C. record sales calls for marketing purposes
D. summarize and report results to interested parties, 🗹🗹: C. record sales calls for
marketing purposes
Q: Identify the piece of information below that is typically needed to acquire a building.
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs, 🗹🗹: D. capacity needs
Q: When a subsystem achieves its goals while contributing to the organization's overall
goal, it is called
Select one:
A. goal congruence.
B. system congruence.
C. goal match.
D. system match., 🗹🗹: B. system congruence.
Q: Which of the following is not one of the components of an AIS?
Select one:
A. internal controls and security measures
B. procedures and instructions
C. hardware
D. people, 🗹🗹: C. hardware
Q: Identify the piece of information below that is typically needed to acquire inventory.
, Page | 3
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs, 🗹🗹: B. vendor performance
Q: Information is best described as
Select one:
A. the same thing as data.
B. data that has been organized and processed so that it is meaningful to the user.
C. raw facts about transactions.
D. facts that are useful when processed in a timely manner., 🗹🗹: B. data that has
been organized and processed so that it is meaningful to the user.
Q: The primary objective of accounting is to
Select one:
A. ensure the profitability of an organization.
B. implement strong internal controls.
C. provide useful information to decision makers.
D. prepare financial statements., 🗹🗹: C. provide useful information to decision
makers.
Q: Identify the piece of information below that is typically needed to hire and train
employees.
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs, 🗹🗹: A. job descriptions
Q: Many modern accounting software packages offer separate transaction cycle modules.
What is the reason for this?
Select one:
A. The nature of a given transaction cycle is the same irrespective of the type of
organization.
B. Every organization does not need to implement all of the available transaction cycle
modules.
C. A properly designed AIS does not use the concept of separate business transaction
cycles to process transactions.
, Page | 4
D. Most businesses do not need the revenue cycle module as part of their AIS., 🗹🗹:
B. Every organization does not need to implement all of the available transaction cycle
modules.
Q: The value of information can best be determined by
Select one:
A. the extent to which it optimizes the value chain.
B. the benefits associated with obtaining the information minus the cost of producing it.
C. its relevance to decision makers.
D. its usefulness to decision makers., 🗹🗹: B. the benefits associated with obtaining
the information minus the cost of producing it.
Q: An accounting information system (AIS) processes ________ to provide users with
________.
Select one:
A. information; data
B. data; benefits
C. data; transactions
D. data; information, 🗹🗹: D. data; information
Q: How can query languages be used to help make better decisions?
Select one:
A. They can gather relevant data for decision making.
B. They can suggest a course of action.
C. They can model choose among alternative courses of action.
D. They can help the decision maker to interpret results., 🗹🗹: A. They can gather
relevant data for decision making.
Q: ________ information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
Select one:
A. Timely
B. Reliable
C. Relevant
D. Complete, 🗹🗹: C. Relevant
Q: What is a key decision that needs to be made with regards to selling merchandise?
Select one:
A. which credit cards to accept
B. which employees to hire
