Test Bank for Accounting Information Systems: Connecting Careers, Systems, and Analytics 1st Edition by (Savage/Brannock/Foksinska) ||Complete A+ Guide

1

,Accounting Information Systems 1st Edition Savage Test Bank
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Table of Contents:

Part I: Foundations of AIS
1 Accounting as Information
1.1 Why Is Accounting Information Important? 1-2
1.2 How Have Accounting Information Systems Evolved? 1-12
1.3 How Does Management Use Information? 1-18
1.4 What Is the Relationship Between Accounting and Data Analytics? 1-23
2 Risks and Risk Assessments
2.1 How Do We Understand Risk? 2-2
2.2 What Are the Types of Risks? 2-7
2.3 How Do We Prioritize Risk? 2-13
2.4 How Do We Respond to Risk? 2-18
3 Risk Management and Internal Controls
3.1 How Do Internal Controls Mitigate Risk? 3-2
3.2 How Are Controls Classified? 3-8
3.3 How Do We Assess Internal Controls? 3-16
3.4 Why Are Internal Control Frameworks Important? 3-21
4 Software and Systems
4.1 How Do Systems Capture and Process Data? 4-2
4.2 How Do Startups and Small Businesses Use Technology? 4-10
4.3 What Are the Characteristics of Information Systems for Growing Companies? 4-15
4.4 Why Are Enterprise Resource Planning (ERP) Systems Considered Ideal? 4-22
5 Data Storage and Analysis
5.1 What Is Data? 5-2
5.2 How Is Data Stored? 5-8
5.3 What Makes Data “Big Data”? 5-11
5.4 How Do Accounting Professionals Use Data? 5-15
6 Designing Systems and Databases
6.1 How Are Systems Developed? 6-2
6.2 Which Methodology Should Be Used? 6-9
6.3 What Type of Database Should Be Used? 6-15
6.4 How Are Relational Databases Designed? 6-20
6.5 How Do We Interact with Data in a Database? 6-29
7 Emerging and Disruptive Technologies
7.1 How Do Companies Approach Emerging and Disruptive Technologies? 7-2
7.2 How Do Disruptive Technologies Provide Business Opportunities? 7-7
7.3 How Does Robotic Process Automation (RPA) Benefit Accounting Professionals? 7-12
7.4 What Is Blockchain? 7-23
7.5 Why Should Accountants Care About Blockchain? 7-30
8 Documenting Systems and Processes
8.1 Why Do We Document Systems and
8.2 How Do We Know Which Type of Documentation to Use? 8-6
8.3 How Do Flowcharts Illustrate Systems or Business Processes? 8-12
8.4 How Do Data Flow Diagrams Show Information Flow? 8-19
Part II: Business Processes
9 Human Resources and Payroll Processes
2

,9.1 How Are Human Resources and Payroll Related? 9-2
9.2 How Are New Employees Hired? 9-6
9.3 What Happens When an Employee Is Terminated? 9-13
9.4 How Do We Compensate Employees for Their Work? 9-19
9.5 How Can Human Resources and Payroll Data Be Used to Identify Risks? 9-28
10 Purchasing and Payments Processes
10.1 What Is the Relationship Between Purchasing, Inventory Management, and Supply Chain
Management? 10-2
10.2 How Are Inventory and Other Goods and Services Purchased? 10-9
10.3 What Makes Fixed Assets Unique to Purchasing and Payments? 10-17
10.4 How Do We Evaluate the Credit Payments Process? 10-24
10.5 How Does the AIS Capture Purchasing and Payments Data? 10-28
11 Conversion Processes
11.1 What Is the Relationship Between Conversion Processes, Inventory, and Supply Chain
Management? 11-2
11.2 Why Is Cost Accounting Important to the Accounting Information System? 11-14
11.3 What Is Digital Manufacturing? 11-22
11.4 How Is Data Collected and Used? 11-26
14.5 How Do We Make Changes to Systems? 14-27
12 Marketing, Sales, and Collections Processes
12.1 How Do Marketing, Sales, and Collections Complete the Business Model? 12-2
12.2 Why Are Business Credit Sales More Complex Than Consumer Cash Sales? 12-12
12.3 How Do We Ensure That Revenue Is Correctly Recognized? 12-24
12.4 How Are Customer Payments Collected? 12-29
12.5 Which Reports and Analytics Give Insights into These Processes? 12-36
13 Financial Reporting Processes
13.1 How Is an AIS Involved in Financial Reporting? 13-2
13.2 How Are Financial Statements Generated by an AIS? 13-6
13.3 How Does XBRL Create Efficient Financial Reporting? 13-16
13.4 Are There Other Important Financial Accounting Reports? 13-20
13.5 How Is Financial Reporting Data Used for Insights and Decision Making? 13-25
Part III: Risk Assurance
14 Information Systems and Controls
14.1 What Framework Can We Use to Mitigate Risk Around Our Systems? 14-2
14.2 How Do We Decide Who Can Access Systems? 14-6
14.3 How Do We Physically Protect Our Systems? 14-13
14.4 How Do We Keep Our Systems Running? 14-18
15 Fraud
15.1 What Is Fraud? 15-2
15.2 How Do We Manage Fraud Risk? 15-8
15.3 How Does Asset Misappropriation Result in Fraud? 15-14
15.4 What Are the Characteristics of Financial Statement Fraud? 15-22
16 Cybersecurity
16.1 How Is Cybersecurity Relevant to the Accounting Profession? 16-2
16.2 How Do Cybercriminals Plan Attacks? 16-8
16.3 How Do Hackers Gain Unauthorized Access? 16-15
16.4 How Do Attackers Shut Down a System? 16-21
Part IV: Technology and Analytics
17 Data Analytics
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,17.1 How Is Data Analytics Changing the Accounting Profession? 17-2
17.2 How Do We Explore a Data Set? 17-7
17.3 How Do We Investigate Interesting Occurrences in a Data Set? 17-13
17.4 Which Analytics Techniques Are Gaining Popularity in the Accounting Profession? 17-
18
18 Data Visualization
18.1 How Does Visualization Tell a Story with Data? 18-2
18.2 What Are the Fundamentals of Design? 18-7
18.3 How Do Visualizations Help Us Explore Data? 18-13
18.4 When Should Explanatory Visualizations Be Used for Storytelling? 18-25

Online Chapter
19 Audit Assurance
19.1 What Is the Difference Between Internal Audit and External Audit? 19-2
19.2 How Are Internal Audits Performed? 19-8
19.3 How Is Testing Performed? 19-13
19.4 What Happens After an Audit? 19-21




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,Accounting Information Systems, 1e (Savage)
x x x x


Chapter 1 Accounting as Information
x x x x




1) Accounting communicates to stakeholders x x x


A) minimally required public financial data.
x x x x


B) the financial outcomes of operating, investing, and financing activities.
x x x x x x x x


C) the sales strategy for the operating, marketing, and sales activities.
x x x x x x x x x


D) black and white details about the economics of operating activities.
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Answer: B
x x


Diff: 1
x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Communication
x x


Bloom's: Comprehension
x


AICPA: AC: Reporting
x x x




2) Accounting communicates the financial outcomes of a business's activities for
x x x x x x x x x


A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
x x x x x x


Answer: D
x x


Diff: 1
x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Communication
x x


Bloom's: Comprehension
x


AICPA: AC: Reporting
x x x




3) In what way do management teams use accounting data?
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A) Management teams use accounting data to make business decisions.
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B) Management teams use accounting data to make and execute plans.
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C) Management teams use economic and accounting data together to make decisions.
x x x x x x x x x x


D) All of these answer choices are correct.
x x x x x x


Answer: D
x x


Diff: 1
x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Comprehension x


AICPA: AC: Risk Assessment, Analysis, and Management
x x x x x x




5

,4) Which statement is TRUE?
x x x


A) Accounting consists of rigid black and white rules. x x x x x x x


B) Accountants crunch numbers, not make decisions. x x x x x


C) Accounting helps support a prosperous society. x x x x x


D) Accountants focus on debits and credits, not business activities.
x x x x x x x x


Answer: C
x x


Diff: 1
x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Comprehension
x


AICPA: N/A
x x




5) Which of the following is NOT a component of an information system?
x x x x x x x x x x x


A) Hardware
B) Software
C) Input
D) Network
Answer: C
x x


Diff: 1
x x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Knowledge x


AICPA: AC: Systems and Process Management
xx x x x x x




6) Input to an information system consists of
x x x x x x


A) raw and unorganized data.
x x x


B) hardware and software. x x


C) reported information. x


D) processed data. x


Answer: A
x x


Diff: 1
x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Knowledge x


AICPA: AC: Systems and Process Management
x x x x x




7) Which of the following is a definition of output from an information system?
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A) Output is raw and unorganized data.
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B) Output is information produced by processing data.
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C) Output is database facts and figures.
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D) Output is information collected from users.
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Answer: B
x x




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,Diff: 1
x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Comprehension x


AICPA: AC: Systems and Process Management
x x x x x




8) Which statement concerning data is TRUE?
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A) Data is useless to a business until transformed into information.
x x x x x x x x x


B) Data is the output from an information system.
x x x x x x x


C) Data is organized into understandable formats.
x x x x x


D) Data is processed before being input into the information system.
x x x x x x x x x


Answer: A
x x


Diff: 1
x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Comprehension x


AICPA: AC: Systems and Process Management
x x x x x




9) Which of the following activities would NOT result in a transaction in an accounting
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information system?
x x


A) Sell goods to a customer on account
x x x x x x


B) Purchase supplies on credit x x x


C) Prepay for six months of insurance
x x x x x


D) Receive a customer order x x x


Answer: D
x x


Diff: 2
x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Application x


AICPA: AC: Systems and Process Management
x x x x x




7

,10) Which of the following activities results in a transaction an accounting information system?
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A) Sell goods to a customer
x x x x


B) Submit an order to a vendor x x x x x


C) Create estimates for a customer x x x x


D) Receive a customer order x x x


Answer: A
x x


Diff: 2 x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Application x


AICPA: AC: Systems and Process Management
x x x x x




11) A business model is
x x x


A) a company's plan for operations.
x x x x


B) a company's plan for making a profit.
x x x x x x


C) a company's plan for identifying customers.
x x x x x


D) a company's plan for production.
x x x x


Answer: B
x x


Diff: 1 x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Knowledge x


AICPA: AC: Systems and Process Management
x x x x x




12) What kind of business model should an entrepreneurial application developer consider for a
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new smartphone game that will allow users to pay for additional capabilities and/or lives during
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the game?
x x


A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: C
x x


xDiff: 2 x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Application x


AICPA: AC: Systems and Process Management
x x x x x




8

, 13) Samantha's Soy Candles has built a retail location in a seasonally busy tourist town.
x x x x x x x x x x x x x


xSamantha has developed a scent of the month that she plans to market to customers as a once
x x x x x x x x x x x x x x x x x


xpermonth shipment. The shipment of these candles once per month could help Samantha during
x x x x x x x x x x x x x x


xthe slow months at her retail store. What kind of business model would Samantha employ for
x x x x x x x x x x x x x x x


xher new seasonal candle shipment business line?
x x x x x x


A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: B
x x


xDiff: 2x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Application x


AICPA: AC: Systems and Process Management
x x x x x




14) Fast-food chains that allow individuals to purchase and operate a location for that chain are
x x x x x x x x x x x x x x


operating under what kind of business model?
x x x x x x x


A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: A
x x


xDiff: 2x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Application x


AICPA: AC: Systems and Process Management
x x x x x




15) What part of a business model includes using a company's profits to sponsor initiatives
x x x x x x x x x x x x x


where the company and employees work to benefit the community?
x x x x x x x x x x


A) Direct-to-consumer
B) Social responsibility x


C) Investor relations x


D) Peer-to-peer
Answer: B
x x


xDiff: 2x


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
x x x x x x x x x x x x x


information.
x


Section Reference: Why is Accounting Information Important?
x x x x x x


AACSB: Analytic
x x


Bloom's: Application x


AICPA: AC: Systems and Process Management
x x x x x




9