Business Information Systems
Chapter Exam Questions
Course Introduction
Business Information Systems examines the integration of information technology and business strategy to enhance organizational performance. This course introduces students to the fundamentals of information systems, including their role in supporting business operations, decision-making, and competitive advantage. Topics include system development, database management, enterprise resource planning, e-commerce, and the ethical and security issues associated with information systems. Through case studies and real-world applications, students learn how to analyze business problems, design information solutions, and understand the impact of technological innovations on business processes.
Recommended Textbook
Accounting Information Systems 10th Edition by Ulric J. Gelinas
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Chapter 1: Introduction to Accounting Information Systems
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Q1) ______________________________ is the correspondence or agreement between the information and the actual events or objects that the information represents.
Answer: Accuracy
Q2) The AICPA has identified all but which of the following as assurance services?
A) consulting
B) information systems reliability
C) electronic commerce
D) All of these are assurance services identified by the AICPA.
Answer: A
Q3) In the management hierarchy,the level that lies between strategic management and operations management is called ______________________________ management.
Answer: tactical
Q4) Information that is available before it loses its capacity to influence a user's decision possesses the quality of ______________________________.
Answer: timeliness
Q5) A ________ is a tool designed to help you analyze a situation and relate processes to desired results.
Answer: matrix
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Chapter 2: Enterprise Systems
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Q1) The ______________________________ module plays a central role in the SAP system by incorporating business events from other modules into the general ledger accounts.
Answer: Financial Accounting
FI
Q2) Product life-cycle management (PLM)software manages product data from design through manufacture,and disposal.
A)True
B)False
Answer: True
Q3) A record is a collection of related data fields pertaining to a particular entity or event.
A)True
B)False
Answer: True
Q4) The first step in the order-to-cash process is ______________________________.
Answer: presale activities responding to customer inquiries
Q5) The first step in the purchase-to-pay process is
Answer: requirements determination
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Chapter 3: Electronic Business E-Business-Systems
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Sample Questions
Q1) ______________________________ provide an Internet base for companies to put products up for bid or for buyers to put proposed purchases up for bid.
Answer: Internet auction markets
Q2) ______________________________ is the processing mode in which a delay exists between the various data processing steps.
Answer: Periodic mode
Q3) A disadvantage of the periodic mode is:
A) completeness
B) accuracy
C) validity
D) timeliness
Answer: D
Q4) ______________________________ is the aggregation of several business events over some period of time with the subsequent processing of these data as a group by the information system.
Answer: Batch processing
Q5) Discuss the advantages and disadvantages of the different modes of processing (i.e. ,OLTE and OLRT).
Answer: 11ea7ce4_4b19_c893_928c_57b8949187dd_TB2009_00_TB2009_00
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Chapter 4: Documenting Information Systems
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Q1) A(n)______________________________ data flow diagram (DFD)depicts what activities the system performs rather than how,where,or by whom they are performed.
Q2) ______________________________ activities include retrieving data from storage,transforming data,or filing data.
Q3) Which data flow diagram (DFD)symbol portrays a source or destination of data outside the system?
A) data flow symbol
B) external entity symbol
C) bubble symbol
D) data store symbol
Q4) When we convert to an enterprise system,reengineered processes often result from the installation and can cause changes throughout the systems flowcharts.
A)True
B)False
Q5) A(n)______________________________ is a graphical representation of a system showing the system's internal and external entities and flows of data into and out of those entities.
Q6) On a systems flowchart a triangle represents ____________.
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Chapter 5: Database Management Systems
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Q1) The model that only works well for simple data structures is the:
A) hierarchical database model
B) network database model
C) relational database model
D) object-oriented database model
Q2) Data warehousing is the use of information systems facilities to focus on the collection,organization,integration,and long-term storage of entity-wide data.
A)True
B)False
Q3) Which of the following is not a database model discussed in Chapter 5:
A) Relational
B) Hierarchical
C) Network
D) Physical
Q4) The way a user thinks of the data in a database is called the user's:
A) physical view
B) logical view
C) data entry view
D) screen view
Q5) A(n)______________________________ depicts the fields comprising a record.
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Chapter 6: Relational Databases and SQL
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Q1) Which of the following statements about the participation constraint is false?
A) It specifies the degree of minimum participation of one entity in the relationship with the other entity.
B) The constraint is either 1 or 0.
C) It is the most common constraint in E-R diagrams.
D) It provides more information than the cardinality constraint.
Q2) A recursive relationship occurs between two different instances of an entity. A)True
B)False
Q3) Queries of a database are driven by ______________________________ commands.
Q4) In an REA diagram,the rectangle is used to represent the composite attribute. A)True B)False
Q5) The cardinality constraint is used to specify both the minimum and maximum participation of one entity in the relationship with the other entity. A)True B)False
Q6) The notation 1:N is used to specify the relationship type of
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Chapter 7: Controlling Information Systems: Introduction to
Enterprise Risk Management and Internal Control
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Q1) The section of Sarbanes Oxley that prohibits audit firms from providing a wide array of nonaudit services to audit clients is ______________________________.
Q2) A programming error causes the sale of an inventory item to be added to the quantity on hand attribute in the inventory master data.Which control goal was not achieved?
A) ensure update completeness
B) ensure input accuracy
C) ensure update accuracy
D) ensure input completeness
Q3) The ERM framework addresses four categories of management objectives.Which category addresses the effective and efficient use of resources?
A) compliance
B) operations
C) reporting
D) strategic
Q4) The control goal that seeks to protect an organization's resources from loss,destruction,disclosure,copying,sale,or other misuse of an organization's resources is called ensure ______________________________.
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Chapter 8: Controlling Information Systems: Introduction to Pervasive Controls
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Q1) ______________________________ in an internal control system means assessment by management to determine whether the control plans in place are continuing to function appropriately over time.
Q2) The ______________________________ logs and monitors who is on or is trying to access the network.
Q3) This logs and monitors who is on or trying to access an organization's network.
A) biometrics
B) electronic vaulting
C) intrusion detection systems (IDS)
D) firewall
Q4) COBIT 5 has two main components: five _____________ and seven ________________.
Q5) COBIT 5:
A) shifts the center of attention from IT to governance.
B) can be implemented by updating from COBIT 4.1.
C) does not have the enablers used in COBIT 4.1
D) all of the above.
Q6) Threat monitoring is a technique to protect one network from another "untrusted" network.
A)True
B)False Page 10
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Chapter 9: Controlling Information Systems: Business
Process and Application Controls
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Q1) Specifying ______________________________ is the first step in preparing a control matrix.
Q2) The control plan called ______________________________ is designed to reduce the possibility that data will be misread or miskeyed during data entry.
Q3) A sales representative enters the customer's account number and the system retrieves certain data about the customer from master data.This control plan addresses all of the control goals except:
A) ensure efficient employment of resources
B) ensure effectiveness of operations (timeliness)
C) ensure input accuracy
D) ensure update completeness
Q4) A dependency check authenticates the identity of a message's sender and verifies the integrity of a transmitted message.
A)True
B)False
Q5) With ______________________________ the data entry clerk compares input batch totals to those prepared and output by the computer.
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Q6) In the control matrix the P stands for ______________________________ controls.
Chapter 10: The Order Entrysales Oesprocess
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Q1) A specific type of reject stub is called a(n):
A) exception routine
B) summary report
C) corrective routine
D) normal routine
Q2) Bar code readers:
A) are devices that use light reflection to read differences in bar code patterns to identify a labeled item.
B) are devices used for pattern recognition of handwritten or printed characters.
C) are input devices that capture printed images or documents and convert them into electronic digital signals that can be stored on computer media.
D) are computer-based systems for capture,storage,retrieval,and presentation of images of objects such as pictures and documents.
Q3) To satisfy customers the focus of new OE/S systems is generally on:
A) mass marketing
B) segmented marketing strategies
C) individual customers
D) all of the above.
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Chapter 11: The Billingaccounts Receivablecash Receipts
Barcrprocess
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Q1) The ______________________________ data is a repository of all unpaid invoices issued by an organization and awaiting final disposition.
Q2) Which control plan for the cash receipts function has as its primary control goal to ensure security of resources?
A) reconcile bank account regularly.
B) enter cash receipts close to where cash is received.
C) immediately endorse incoming checks.
D) one-to-one checking of deposit slips and checks.
Q3) Quantities of items shipped to a customer would typically be found in the relational table for:
A) CUSTOMERS
B) SALES_RELATIONS
C) BANKS
D) DEPOSITS
Q4) Organizations should monitor ______________________________ to ensure that cash is received in a timely manner.
Q5) The payment event data contains the details of each payment received.
A)True
B)False
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Chapter 12: The Purchasing Process
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Sample Questions
Q1) The inventory master data contains a record of each vendor that is approved for use by the organization.
A)True
B)False
Q2) Supply chain management (SCM)is the combination of processes and procedures used to ensure the delivery of goods and services to customers at the lowest cost while providing the highest value to the customers.
A)True
B)False
Q3) The warehouse master data contains a record of each inventory item which is stocked in the warehouse and/or regularly ordered from a vendor.
A)True
B)False
Q4) The connections from the suppliers of merchandise and raw materials through to an organization's customers,including the flow of information,materials,and services,are its supply chain.
A)True
B)False
Q5) In many organizations ______________________________ do the actual buying.
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Chapter 13: The Accounts Payablecash Disbursements
Apcdprocess
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Q1) Evaluated receipt settlement (ERS)is a process by which an organization pays for a purchase on the basis of the goods receipt.
A)True
B)False
Q2) Purchase returns and allowances usually occur at the point of inspecting and counting the goods or at the point of validating vendor invoices.
A)True
B)False
Q3) The AP/CD process handles the repetitive work routines of:
A) cashier
B) purchasing
C) Receiving
D) all of the above
Q4) Which of the following is least likely to report (either directly or indirectly)to the vice president of finance?
A) controller
B) treasurer
C) shipping department supervisor
D) accounts payable department
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Chapter 14: The Human Resources Process Hrmanagement and
Payroll Processes
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Q1) Which of the following is not one of the HR related events performed by the HR management process?
A) selecting employees
B) paying employees
C) evaluating employees
D) terminating employees
Q2) Attendance time records show the time periods that employees are in attendance at the job site and available for work.
A)True
B)False
Q3) A payroll service bureau often makes tax and insurance payments for the client.
A)True
B)False
Q4) Which of the following is an example of processing the company's payroll for a fee?
A) electronic time management
B) payroll direct deposit system
C) payroll service bureau
D) payroll register
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Q5) The GL supervisor usually reports to the ______________________________.
Chapter 15: Integrated Production Processes IPP
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Q1) Variance analysis is the process of comparing actual information about input costs and usage to standards.
A)True
B)False
Q2) Manufacturing is often the quickest way for developing countries to increase domestic wealth and citizen wages.
A)True
B)False
Q3) Purchase orders convey authority for the manufacture of a specified product or subassembly in specified quantity and describe the material,labor,and machine requirements for the job.
A)True
B)False
Q4) An assembly line manufacturing system is a highly automated computer integrated manufacturing system that has its goal of achieving the ability to quickly produce wide varieties of products using the same equipment.
A)True
B)False
Q5) A(n)______________________________ is a group of similar workstations.
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Chapter 16: The General Ledger and Business Reporting
Glbrprocess
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Q1) The XBRL framework is based on the concept of a(n)______________________________,a group of definitions that together provide meaning to reporting concepts.
Q2) Which of the following items is not one of the four components of the balanced scoreboard methodology?
A) Customers
B) Financial
C) competitive environment
D) internal business processes
Q3) Performance reports are often part of a managerial reporting system known as a responsibility accounting/reporting system.
A)True
B)False
Q4) Adjusted trial balance figures are usually sent from the business reporting department to the:
A) the financial reporting officer
B) the managerial reporting officer
C) the treasurer
D) the budgeting department
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Chapter 17: Acquiring and Implementing Accounting Information Systems
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Q1) As data from the existing system are mapped into the new system,exception-reporting situations must be devised to ensure that the data are converted accurately.
A)True
B)False
Q2) Which of the following functions cannot be outsourced?
A) Accounting
B) Legal
C) IT
D) all of these functions can be outsourced
Q3) With the modular approach to systems implementation,the new system either is implemented one subsystem at a time or is introduced into one organizational unit at a time.
A)True
B)False
Q4) Specific reports and other documentation,called process documents,must be produced periodically during systems development to make development personnel accountable for faithful execution of systems development tasks.
A)True
B)False
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