Business Information Systems
Question Bank
Course Introduction
Business Information Systems explores the role and application of information technology within modern organizations. The course examines how businesses leverage information systems to improve operations, support decision-making, enhance communication, and gain strategic advantages. Topics include the fundamentals of hardware and software, databases, networking, enterprise systems, e-commerce, data analytics, and cybersecurity. Students will analyze real-world case studies to understand how information systems facilitate business processes and address organizational challenges. The course also introduces emerging technologies and their impact on business models, while emphasizing ethical considerations and the importance of aligning IT strategies with overall business objectives.
Recommended Textbook
Accounting Information Systems The Crossroads of Accounting and IT 2nd Edition by Kay
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Page 2
Chapter 1: Accounting Systems Insights
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Sample Questions
Q1) The Vendors module in the Baseline Accounting System corresponds to which transaction cycle?
A)Sales cycle
B)Financial cycle
C)Payroll cycle
D)Purchasing cycle Answer: D
Q2) When designing a database, which field would NOT belong in a table storing customer information?
A)First Name
B)Order Number
C)Zip Code
D)Street Address Answer: B
Q3) Which of the following agents is internal to a company?
A)Customer
B)Employee
C)Vendor
D)Investor Answer: B
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Chapter 2: Accounting Databases
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Sample Questions
Q1) An intersection table transforms a many-to-many relationship to two one-to-many relationships.
A)True
B)False
Answer: True
Q2) What IT professionals call people or things, accounting professionals call objects.
A)True
B)False
Answer: False
Q3) To add a vendor to the Vendor Orders table, the following information is required EXCEPT
A)PO Number
B)Vendor ID
C)Item Number
D)Vendor name
Answer: D
Q4) Data stored in a ________ may be current data, historical data, or future estimates.
Answer: data warehouse
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Chapter 3: Accounting Interface: Database Forms, Queries, and Reports
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Sample Questions
Q1) Database forms are often designed to automatically complete portions of the form after the users makes a selection.
A)True
B)False
Answer: True
Q2) How can a database report be interactive?
Answer: It can allow the user to drill-down to source documents by clicking on an amount displayed in the report. For example, in the check register for some accounting software, you can click on a check amount and drill down to the check source document.
Q3) The accounting interface connects the accountant user to the database behind the screen.
A)True
B)False
Answer: True
Q4) Database reports display the formatted results of database queries.
A)True
B)False
Answer: True
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Chapter 4: Accounting Systems and Business Processes
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Sample Questions
Q1) How may a BPMN diagram be used?
Q2) What are the transactions typically associated with vendors? Please define each transaction.
Q3) ________ and ________ are rectangles used to group and organize activities in a BPMN diagram.
Q4) When a new accounting system is developed, companies rarely streamline business processes to improve effectiveness.
A)True
B)False
Q5) How is information to build a business process map collected?
Q6) What are the transactions typically associated with customers? Please define each transaction.
Q7) How many levels of detail may be shown in a flowchart?
A)1 level
B)2 level
C)3 levels
D)4 levels
Q8) Create a business process map organizer for the Books Ga'Lore! Credit Sales narrative.
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Chapter 5: Business Processes: Purchasing, Sales, and Payroll Cycles
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Sample Questions
Q1) The customization approach that involves the system going "live" all at once is called
A)Gap analysis
B)Stages
C)Workflow management
D)Big bang
Q2) Create a business process map organizer table for the Books Ga'Lore! Cash Sale narrative.
Q3) What is the stages approach to customizing an accounting system? What are the advantages and disadvantages?
Q4) The disadvantage to the ________ approach is that the time line for such a project may seem prolonged.
Q5) Create a BPMN diagram for the Spice House Enter Bills from Vendors narrative.
Q6) Create a business process map organizer for the Books Ga'Lore! Online Payment Deposit narrative.
Q7) What are the datastores (database tables)in the Nice Lawn Sales Narrative?
A)Item, Sales Order, Vendor, Sales Order Line
B)Customer, Item, Sales Order, Sales Order Line
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C)Customer, Vendor, Invoice
D)Customer, Price, Item, Invoice, Invoice Line
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Chapter 6: Integrated Enterprise Systems and Cloud Computing
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Sample Questions
Q1) ________ includes business intelligence software to provide additional analysis for improved decision making.
Q2) SAP provides the ability to create reports using all of the following EXCEPT
A)Query wizard
B)Predefined reports
C)MS Excel
D)Manual calculations
Q3) Why did many companies install new integrated enterprise systems at the turn of the millennium?
Q4) A well-designed integrated enterprise system offers live information that facilitates business agility.
A)True
B)False
Q5) Define the PaaS (Platform-as-a-Service level of cloud computing.
Q6) The ________ cloud service level lets an enterprise out source software applications.
Q7) When you enter data into a cloud-based system, the data is not stored in a database.
A)True
B)False Page 8
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Chapter 7: Accounting and Business Intelligence
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Sample Questions
Q1) The main components of an intelligent system work together to
A)Identify meaningful interrelationships
B)Create shadow data
C)Prevent unauthorized access to the data
D)Store data
Q2) A digital dashboard is a(n)
A)Tool used to extract data from a data database
B)Interactive data visualization tool
C)Transfers data to a data analysis tool
D)Stores data
Q3) Electronic tags used by ________ permit data analysis of multidimensional data.
Q4) ________ uses mathematical algorithms to predict future trends, such as future customer purchases.
Q5) What is the difference between the star and snowflake structures of dimensional databases?
Q6) What were the predecessors of today's sophisticated intelligence tools used for data analysis?
Q7) What is a dimensional database? When/where is this type of database usually used?
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Q8) What the difference between a relational database and a dimensional database?
Chapter 8: Accounting and Sustainability Intelligence
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Sample Questions
Q1) Biomimicry is an innovation method that seeks sustainable solutions by emulating nature's patterns and strategies.
A)True
B)False
Q2) SIGMA GUIDELINES
A)Enables organizations to identify and control their environmental impact, continuously improve their environmental performance, and implement a systematic approach to setting and achieving environmental targets.
B)Provides a resource summarizing various frameworks used in accounting for sustainability.
C)Provides a sustainability reporting framework of which the G3 guidelines are the cornerstone.
D)Requires ISO 14001 as the environmental management system.
E)Provide guiding principles for sustainability and a framework that integrates sustainability into management decision making.
Q3) List and explain how integrated reporting is different from traditional financial reporting.
Q4) How does the IDa model integrate sustainability into decision making?
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Chapter 9: XBRL: Intelligent Business Reporting
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Sample Questions
Q1) In the XBRL Statement A, what is the correct amount?
A)250.00
B)2)5000
C)25000
D)2500.0
Q2) What information does the following XBRL tag provide? <us-gaap:InventoryNet contextRef="Jan012014" unitRef="USD" decimals="6">391400000000</us-gaap:InventoryNet>
Q3) Taxonomy
A)Defines which elements are related to a particular taxonomy
B)Relates to data and metadata
C)Defines relationships between data
D)A dictionary that defines the XBRL tags used for specific data items
E)Identifies the specific amounts for a taxonomy at one instance
Q4) A definition link base defines the relationship between elements and the external regulations or standards.
A)True
B)False
Q5) What is the difference between bolt-on tagging and integrated tagging?
Q6) The ________ element defines the time frame.
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Chapter 10: Fraud and Internal Control
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Sample Questions
Q1) Internal auditors exhibit the highest level of professional ________ in gathering, evaluating, and communicating information about the activity or process being examined.
Q2) What three things must a perpetrator have to commit fraud? Include a brief description of each.
Q3) A(n)________ in internal control over financial reporting is defined as a deficiency as such that there is a reasonable possibility that a material misstatement of financial statements will not be prevented or detected in a timely basis.
Q4) Corruption involves theft of assets for personal gain.
A)True
B)False
Q5) What is internal control and what is its purpose?
Q6) What is SOX?
Q7) Application controls ensure completeness and accuracy of transaction processing, authorization, and validity.
A)True
B)False
Q8) What is the purpose of the Trust Services framework?
Q9) List and define the 10 generally accepted privacy principles.
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Chapter 11: Cybersecurity
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Sample Questions
Q1) List and describe the IT resources categories as defined by COBIT.
Q2) Security of the IT architecture should be considered in which phase of the system development life cycle (SDLC)?
A)All the phases
B)Design phase
C)Install phase
D)Build/purchase phase
Q3) Which legislation requires organizations that handle credit and debit card data to meet cybersecurity requirements to safeguard data?
A)Computer Fraud and Abuse Act
B)Federal Information Security Management Act of 2002 (FISMA)
C)Economic Espionage Act of 1996
D)Payment Card Industries Data Security Standards (PCI-DDS)
Q4) Which type of malware executes when a specific event happens within the computer?
A)Logic bombs
B)Bots
C)Trojan horses
D)Worms
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Chapter 12: The Risk Intelligent Enterprise: Enterprise Risk Management
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Sample Questions
Q1) List and define the eight interrelated ERM components.
Q2) Hiring competent employees who are provided ongoing training
A)Can increase risks from accidents and errors
B)Can increase the amount of fraud
C)Can reduce risks from accidents and errors
D)Can reduce an enterprise's risk tolerance
Q3) Reduce
A)An entity reduces risk likelihood or risk impact by ________ the risk with another entity.
B)This risk response refers to actions taken to ________ risk likelihood, risk impact, or both.
C)When an entity responds to risk with ________, the entity takes no action to affect risk likelihood or risk impact.
D)This risk response involves ________ or exiting the activities that give rise to the risk.
Q4) Which ERM objective relates to the goals that support a corporation's mission?
A)Reporting objective
B)Operational objective
C)Strategic objective
D)Compliance objective
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Chapter 13: Accounting System Development
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Sample Questions
Q1) What are the basic steps in the ABC methodology?
Q2) Which phase of the SDLC involves users entering data into the new system?
A)Design
B)Deploy
C)Install
D)Build
Q3) Plan
A)Deliver the new system, including hardware and software.
B)Models for the current system, such as database models and business process models, are studied to determine modifications required.
C)In this phase, the models are transformed into software programming code, which is then tested.
D)Identify the problem, need, or opportunity that a new system would address.
E)Based on your system analysis, design new system models.
F)Operate the new system as users enter data, execute processing, and generate reports.
Q4) What is the system development life cycle (SDLC)?
Q5) A ________ analysis identifies any difference between the specifications of the baseline accounting system and the enterprise-specific user requirements.
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Chapter 14: Database Design: ERD, REA, and SQL
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Sample Questions
Q1) What is the difference between a procedural programming language and a non-procedural programming language?
Q2) ________ databases contain data collected by other organizations and agencies, such as the Securities and Exchange Commission (SEC).
Q3) SQL is a language for ________ databases.
Q4) This database essential retrieves data from a database.
A)Report
B)Form
C)Query
D)Field
Q5) In SQL, ________ statements select, insert, update, and delete database records.
Q6) In an ERD diagram, a relationship between entities is represented as
A)PK symbol listed by attribute
B)Connector lines
C)Square box
D)Crow's feet symbols
Q7) The ________ database structure is used by data warehouses.
Q8) List and define the four database essentials.
Q10) A specific customer, such as Vincent, is an entity ________. Page 17
Q9) Why does a database designer need to understand a business's rules?
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