Financial Information Systems
Study Guide Questions
Course Introduction
Financial Information Systems explores the integration of information technology and financial management within organizations. The course covers the design, implementation, and management of computerized systems that support accounting, budgeting, financial reporting, and decision-making processes. Students will examine topics such as enterprise resource planning (ERP), data analytics, systems controls, cybersecurity, and regulatory compliance, with a focus on how technology innovations optimize financial operations and strategic planning. Practical applications and case studies will illustrate real-world challenges and solutions encountered by finance professionals in a technology-driven business environment.
Recommended Textbook Accounting Information Systems 10th Edition by
James A. Hall
Available Study Resources on Quizplus
16 Chapters
1672 Verified Questions
1672 Flashcards
Source URL: https://quizplus.com/study-set/3789 Page 2
Chapter 1: The Information System: an Accountants Perspective
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/75666
Sample Questions
Q1) The most basic element of useful data in the database is the A)record
B)key
C)file
D)attribute
Answer: D
Q2) An example of a nonfinancial transaction is
A)sale of products
B)cash disbursement
C)log of customer calls
D)purchase of inventory
Answer: C
Q3) Systems development represents 80 to 90 percent of the total cost of a computer system.
A)True
B)False
Answer: False
Q4) The task of locating and transferring an existing record from the database for processing is called data ____________________.
Answer: retrieval
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Introduction to Transaction Processing
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/75665
Sample Questions
Q1) System flowcharts are often used to depict processes that are handled in batches.
A)True
B)False
Answer: True
Q2) With regard to an entity relationship diagram,what is an entity?
Answer: Entities are physical resources (automobiles,cash,or inventory),events (ordering inventory,receiving cash,shipping goods)and agents (salesperson,customer,or vendor)about which the organization wishes to capture data.
Q3) Is a flowchart an effective documentation technique for identifying who or what performs a particular task? Explain.
Answer: Yes.A flowchart depicts the physical system and illustrates who,what,and where a task is performed.
Q4) All of the following can provide evidence of an economic event except A)source document
B)turnaround document
C)master document
D)product document
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Ethics,fraud,and Internal Control
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/75664
Sample Questions
Q1) An inventory record indicates that 12 items of a specific product are on hand.A customer purchased two of the items,but when recording the order,the data entry clerk mistakenly entered 20 items sold.Which check could detect this error?
A)numeric/alphabetic data checks
B)limit check
C)range check
D)reasonableness check
Answer: B
Q2) List the four broad objectives of the internal control system.
Answer: safeguard assets, ensure the accuracy and reliability of accounting records, promote organizational efficiency, comply with management's policies and procedures
Q3) How does privacy relate to output control?
Answer: If the privacy of certain types of output (e.g.,sensitive information about clients or customers)is violated,a firm could be legally exposed.
Q4) Locking petty cash in a safe is an example of __________________________.
Answer: access controls
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: The Revenue Cycle
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/75663
Sample Questions
Q1) The bill of lading is a legal contract between the buyer and the seller.
A)True
B)False
Q2) Which situation indicates a weak internal control structure?
A)the mail room clerk authorizes credit memos
B)the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers
C)the warehouse clerk obtains a signature before releasing goods for shipment
D)the accounts receivable clerk prepares customer statements every month
Q3) Which document is not prepared by the sales department?
A)packing slip
B)shipping notice
C)bill of lading
D)stock release
Q4) For the revenue cycle,state two specific independent verifications that should be performed.
Q5) The purpose of the invoice is to bill the customer.
A)True
B)False
Q6) Give three examples of access control in a point-of-sale (POS)system.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: The Expenditure Cycle Part I: Purchases and Cash
Disbursements Procedures
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/75662
Sample Questions
Q1) Name the key tasks associated with purchases procedures.
Q2) Inventory control should be located in the warehouse.
A)True
B)False
Q3) In regards to the accounts payable department,which statement is not true?
A)The purchase requisition shows that the transaction was authorized.
B)The purchase order proves that the purchase was required.
C)The receiving report provides evidence of the physical receipt of the goods.
D)The supplier's invoice indicates the financial value of the transaction.
Q4) Which of the following tasks is not performed by the cash disbursement clerk?
A)Review the supporting documents for completeness and accuracy.
B)Prepare checks.
C)Sign checks.
D)Mark the supporting documents paid.
Q5) One reason for authorizing purchases is to enable efficient inventory management.
A)True
B)False
Q6) What are the key authorization issues in purchasing and cash disbursements?
Q7) Identify three IT controls in the expenditure cycle.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: The Expenditure Cycle Part II: Payroll Processing and
Fixed Asset Procedures
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/75661
Sample Questions
Q1) Three major tasks are handled by the fixed asset system.What is the purpose of each? What special control issues affect each?
Q2) Objectives of the fixed asset system do not include
A)authorizing the acquisition of fixed assets
B)recording depreciation expense
C)computing gain and/or loss on disposal of fixed assets
D)maintaining a record of the fair market value of all fixed assets
Q3) The paymaster distributes paychecks to work center supervisors.
A)True
B)False
Q4) The document that records the total amount of time spent on a production job is the A)time card
B)job ticket
C)labor distribution summary
D)personnel action form
Q5) Timekeeping is part of the personnel function.
A)True
B)False
Q6) How do fixed asset systems differ from the expenditure cycle?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Conversion Cycle
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/75660
Sample Questions
Q1) The philosophy of customer satisfaction permeates the world-class firm.
A)True
B)False
Q2) Firms are abandoning activity-based costing (ABC)because
A)it does not facilitate the analysis of variances
B)it is complex and time consuming
C)it does not recognize the importance of direct labor as a component of total manufacturing cost
D)the financial nature of the reports does not permit comparisons to be made among different types of products
Q3) Which of the following is not an example of waste?
A)overproduction of products
B)safety hazards that cause injury
C)stand-alone processes that are not linked to upstream or downstream processes
D)All of the above are examples of waste.
Q4) An example of a continuous process is the production of
A)wedding invitations
B)milk products
C)jet aircraft
D)all of the above
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Financial Reporting,and Management Reporting Systems
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/75659
Sample Questions
Q1) An inventory out-of-stock report is an example of a programmed,on-demand report. A)True
B)False
Q2) Risk exposures in the general ledger and financial reporting systems include all of the following except
A)defective audit trail
B)unauthorized access to the general ledger
C)loss of physical assets
D)general ledger account is out of balance with the subsidiary account
Q3) The management reporting system is a nondiscretionary system. A)True
B)False
Q4) Many financial reports produced by organizations are nondiscretionary-publicly traded firms have no choice but to prepare income statements,tax returns,etc.Management reporting is often called discretionary reporting because it is not mandated,as is financial reporting.Is this a valid statement? Why or why not?
Q5) Discuss the primary advantage of XBRL over traditional HTML as a means of online reporting of financial information to users.
Q6) What is information overload? How does it affect decision-making?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Database Management Systems
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/75658
Sample Questions
Q1) Which statement is false?
A)The DBMS is special software that is programmed to know which data elements each user is authorized to access.
B)User programs send requests for data to the DBMS.
C)During processing, the DBMS periodically makes backup copies of the physical database.
D)The DBMS does not control access to the database.
Q2) The physical database is an abstract representation of the database.
A)True
B)False
Q3) The normalization process involves identifying and removing structural dependencies from the tables being modeled.
A)True
B)False
Q4) What are the three data management problems caused by data redundancy?
Q5) A table is in second normal form when it is
A)free of repeating group data
B)free of transitive dependencies
C)free of partial dependencies
D)free of insert anomalies
11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: The Rea Approach to Business Process
Modeling
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/75657
Sample Questions
Q1) When one side of a 1:1 association has a minimum cardinality of zero,the primary key of the table with the 0,1 cardinality should be embedded as a foreign key in the table with the 1,1 cardinality.
A)True
B)False
Q2) ER diagrams always label entity names in the singular noun form.
A)True
B)False
Q3) How do the entity relationship (ER)and the REA diagrams differ?
Q4) A semantic data model captures the operational meaning of the user's data and provides a concise description of it.
A)True
B)False
Q5) Modeling economic transactions under the REA approach always includes depicting both internal and external agents.
A)True
B)False
Q6) Why would a company adopt the REA approach to database design?
12
Q7) What are the four basic forms of cardinality?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Enterprise Resource Planning Systems
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/75656
Sample Questions
Q1) What is data cleansing?
Q2) ERP systems support a smooth and seamless flow of information across organizations.
A)True
B)False
Q3) Supply chain management software
A)is typically under the control of external partners in the chain
B)links all of the partners in the chain, including vendors, carriers, third-party firms, and information systems providers
C)cannot be integrated into an overall ERP
D)none of the above
Q4) Which statement is true?
A)ERPs are infinitely scalable.
B)Performance problems usually stem from technical problems, not business process reengineering.
C)The higher-end ERP can handle any problems an organization can have.
D)ERP systems can be modified using bolt-on software.
Q5) Drill-down capability is an OLAP feature of data mining tools.
A)True
B)False
13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Electronic Commerce Systems
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/75655
Sample Questions
Q1) What is a certification authority and what are the implications for the accounting profession?
Q2) What is an IRC?
Q3) Cloud computing is decreasing as hardware resources become cheaper because acquisition of resources is slow and not scalable.
A)True
B)False
Q4) Define and contrast digital certificate and digital signature.
Q5) Sniffer software is
A)software used by malicious websites to sniff data from cookies stored on the user's hard drive
B)used by network administrators to analyze network traffic
C)used by bus topology intranets to sniff for a carrier before transmitting a message to avoid data collisions
D)an illegal program downloaded from the Internet to sniff passwords from the encrypted data of Internet customers
Q6) Define risk in an electronic commerce setting.
Q7) Discuss the key features of cloud computing.
Q8) Discuss the private key encryption technique and its shortcomings.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Managing the Systems Development Life Cycle
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/75654
Sample Questions
Q1) Discuss the advantage of the parallel operation cutover approach.
Q2) Project feasibility includes all of the following except
A)technical feasibility
B)conceptual feasibility
C)operational feasibility
D)schedule feasibility
Q3) List three advantages and one disadvantage of commercial software.
Q4) Systems analysis involves all of the following except
A)gathering facts
B)surveying the current system
C)redesigning bottleneck activities
D)reviewing key documents
Q5) The systems steering committee is responsible for all of the following except
A)assigning priorities
B)determining whether and when to terminate systems projects
C)analyzing the technical feasibility of the project
D)budgeting funds for systems development
Q6) According to the text,a stakeholder is an end user of a system.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Auditing It Controls Part I: Sarbanes-Oxley and It Governance
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/75653
Sample Questions
Q1) Tests of controls determine whether the database contents fairly reflect the organization's transactions.
A)True
B)False
Q2) Explain the role of an SSAE 16 report in reviewing internal controls.
Q3) Why is inadequate documentation a chronic problem?
Q4) All of the following are steps in an IT audit except
A)substantive testing
B)tests of controls
C)post-audit testing
D)audit planning
Q5) Corporate management (including the CEO)must certify monthly and annually their organization's internal controls over financial reporting.
A)True
B)False
Q6) The most common access point for perpetrating computer fraud is at the data collection stage.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Auditing It Controls Part II: Security and Access
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/75652
Sample Questions
Q1) A software program that replicates itself in areas of idle memory until the system fails is called a
A)Trojan horse
B)worm
C)logic bomb
D)none of the above
Q2) All of the following are objectives of operating system control except
A)protecting the OS from users
B)protesting users from each other
C)protecting users from themselves
D)protecting the environment from users
Q3) Which control will not reduce the likelihood of data loss due to a line error?
A)echo check
B)encryption
C)vertical parity bit
D)horizontal parity bit
Q4) Explain how SYN flood attacks can be controlled.
Q5) Explain how transactions are audited in an electronic data interchange environment.
Q6) What problem is common to all private key encryption techniques?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Auditing It Controls Part III: Systems
Development, program Changes, and Application Auditing
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/75651
Sample Questions
Q1) Which statement is not true?
A)An audit objective for systems maintenance is to detect unauthorized access to application databases.
B)An audit objective for systems maintenance is to ensure that applications are free from errors.
C)An audit objective for systems maintenance is to verify that user requests for maintenance reconcile to program version numbers.
D)An audit objective for systems maintenance is to ensure that the production libraries are protected from unauthorized access.
Q2) One of the auditor's objectives relating to systems development is to authorize development projects.
A)True
B)False
Q3) What are program version numbers and how are they used?
Q4) Outline the six controllable activities that relate to new systems development
Q5) Meaningful test data is relatively easy to create.
A)True
B)False
Q6) What are CAATS? Identify five of them.
To view all questions and flashcards with answers, click on the resource link above. Page 18