Accounting Information Systems, 9e – Test Bank, Chapter 1
Chapter 1—The Information System: An Accountant’s Perspective TRUE/FALSE 1. Information is a business resource. ANS: T
PTS: 1
2. IT outsourcing is location-independent computing. ANS: F
PTS: 1
3. Transaction processing systems convert non-financial transactions into financial transactions. ANS: F
PTS: 1
4. Information lacking reliability may still have value. ANS: F
PTS: 1
5. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting. ANS: F
PTS: 1
6. The Management Reporting System provides the internal financial information needed to manage a business. ANS: T
PTS: 1
7. Most of the inputs to the General Ledger System come from the Financial Reporting System. ANS: F
PTS: 1
8. When preparing discretionary reports, organizations can choose what information to report and how to present it. ANS: T
PTS: 1
9. Retrieval is the task of permanently removing obsolete or redundant records from the database. ANS: F
PTS: 1
10. Systems development represents 80 to 90 percent of the total cost of a computer system. © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.