Management Information Systems
Midterm Exam
Course Introduction
Management Information Systems explores the integration of technology and organizational processes to support managerial decision-making and streamline business operations. This course covers the fundamentals of information systems, including data management, system development, and the strategic use of technology in achieving organizational goals. Students will examine how information systems can improve efficiency, facilitate communication, and provide a competitive advantage, while also addressing issues related to security, ethics, and global trends in digital transformation.
Recommended Textbook
Accounting Information Systems A Practitioner Emphasis 7th Edition by Cynthia D. Heagy
Available Study Resources on Quizplus
15 Chapters
1075 Verified Questions
1075 Flashcards
Source URL: https://quizplus.com/study-set/3554 Page 2
Chapter 1: Significance of Accounting Information Systems
and the Accountants Role
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/70586
Sample Questions
Q1) Auditors do not need substantial technical knowledge about accounting systems to be able to carry out their responsibilities.
A)True
B)False
Answer: False
Q2) Which of the following statements is false?
A) Internal auditors lack the necessary independence to express opinions about the financial statements of the organizations for which they work.
B) Internal auditors ensure that an organization's accounting system is properly designed to meet the organization's present and future needs.
C) An external auditor who performs a financial statement audit is not required by professional standards to gain an understanding of the client's accounting information system before expressing an opinion.
D) If an external auditor finds the controls over the accounting system to be adequate, he or she may be able to reduce the amount of testing of transactions and account balances necessary to support an opinion on the fairness of the financial statements.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Accounting Systems Documentation
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/70579
Sample Questions
Q1) Accounting systems documentation is used for which of the following?
A) To communicate how an accounting system works
B) To communicate management's overall corporate strategy
C) To describe the role of financial planners in an organization
D) To depict a company's hierarchical organizational chart
Answer: A
Q2) Which of the following is not a characteristic of system flowcharts?
A)They are governed by national and international standards.
B) They show technical details.
C) They are used to guide the construction of new systems and maintain/evaluate existing systems.
D) They are also known as problem definition documentation.
Answer: D
Q3) Narrative descriptions are the dominant choice of documentation for showing details.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Essential Elements and Basic Activities of Accounting Systems
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/70578
Sample Questions
Q1) What is the purpose of an open customer invoice file in a computerized system?
A) To store data about customer invoices that have not yet been paid
B) To store data about daily sales transactions
C) To store data that are used repeatedly for processing transactions
D) To store data about customers such as addresses
Answer: A
Q2) Compare batch versus real-time posting.
Answer: Batch processing involves posting or updating in a batch, often times after the close of a business day. At a designated time, the data from the transaction files are used to update master file and open files-similar to posting in a paper-based system. An effect of batch posting is that master and open file records are only up-to-date after posting has occurred.
With real-time posting, data are captured for each transaction which can immediately be used to update the appropriate master and open files. The frequently touted advantage of real-time posting is the availability of up-to-the-minute information.
Q3) A bill of lading is a written contract between the shipper and the consignee.
A)True
B)False
Answer: False
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Data Flows, Activities, and Structure of Accounting Systems
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/70577
Sample Questions
Q1) When a user enters a customer code in the sales transaction screen, the user also enters the customer name.
A)True
B)False
Q2) What should be characteristics of the information provided by an accounting system?
A) Useful
B) Timely and inexpensive
C) Easy to understand
D) Useful and easy to understand
E) All of these D
Q3) What are the primary activities of an accounting information system?
A) Input (capture) data
B) Store data
C) Process data
D) Output (communicate) data
E) All of the above are primary activities. E
Q4) What are the two major types of reports that are produced by an accounting information system?
Q5) Name three business processes.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Reporting Process, Coding Methods, and Audit Trails
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/70576
Sample Questions
Q1) Which of the following factors does not influence the frequency of reporting?
A) The type of data reported
B) The significance of the data
C) The nature of the activity
D) The conciseness of the report
Q2) 17 What is a set of processing references that enables the tracing of an event from its source to its destination or from its destination back to its sources known as?
A) Sequencing records
B) Hierarchical report
C) Audit trail
D) Coding methods
Q3) Numbers that should be used for unique identifiers for coding an audit trail are prenumbered documents that represent the initiation of a transaction and numbers of externally generated documents.
A)True
B)False
Q4) What numbers should NOT be used for unique reference identifiers?
Q5) Describe in what situations the frequency of reporting should be weekly or even daily.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Internal Control and Risk Assessment
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/70575
Sample Questions
Q1) Which of the following describe categories of entity objectives that must exist before management can identify potential events?
A) High-level strategic goals aligned with and supporting the organization's vision or mission.
B) Effectiveness and efficiency of internal reporting.
C) Relevance of non-financial information and reporting.
D) Compliance with all laws and regulations.
E) All of these are categories of entity objectives. A
Q2) Two factors of the internal environment are the board of directors and control activities.
A)True
B)False
Q3) Describe the risk response component of the Enterprise Risk Management (ERM) framework.
Q4) One of the basic factors of the internal environment is an historical perspective of the organization.
A)True
B)False
Q5) Provide some examples of risks to accounting information systems.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Control Activities
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/70574
Sample Questions
Q1) The authority for establishing selling prices normally resides with which of the following?
A) Treasurer and upper management
B) Controller and upper management
C) Sales department and upper management
D) Credit department and upper management
Q2) To enable a user to access data and program files, what should the user be required to enter?
A) A parity check
B) A personal identification code
C) A self-diagnosis test
D) An echo check
Q3) Of the following control activities, which is the MOST effective for minimizing the possibility of fraudulent activity?
A) Bonding of employees.
B) Segregation of duties.
C) Rotation of assignments.
D) Enforced vacations.
Q4) Identify five commonly used input verification controls.
Q5) What are the underlying fundamental concepts of control activities?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: The Financial Process
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/70573
Sample Questions
Q1) List and explain four examples (out of the ten listed in the text) of transaction risk in the financial process.
Q2) Mainframe and minicomputer based accounting packages, being designed for large transaction volumes, almost universally support the dollar-entry method for entering monetary values.
A)True
B)False
Q3) Which of the following are efficiency features in data entry?
A) Recurring entries
B) Automatic distribution entry
C) Auto-enter
D) All of the above are efficiency features in data entry.
Q4) Horizontal analysis of financial statements is the presentation of each item as a percentage of some base amount.
A)True
B)False
Q5) List and explain three examples of information processing control activities in the financial process.
Q6) Why is the time-sensitive entries feature useful?
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: The Revenue Process
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/70572
Sample Questions
Q1) An aging accounts receivable report is commonly used for which of the following purposes?
A) As a tool for contacting customers regarding overdue amounts
B) As a basis for calculating the bad debt provision
C) As a tool for writing off small, miscellaneous, delinquent amounts
D) All of the above are purposes of an aging accounts receivable report.
Q2) While advertising, promotion, and sales solicitations are functions in the business revenue process, the costs of these activities are accounted for in the purchases and financial processes.
A)True
B)False
Q3) What is the most critical report for shipping activities?
A) Picking list
B) Remittance advice
C) Credit memorandum
D) FOB
Q4) A detailed aging of open item accounts lists individual invoices by customer.
A)True
B)False
Q5) What are the principal events to be recorded in the revenue process?
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: The Purchasing Process
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/70585
Sample Questions
Q1) When is a cash requirements forecast prepared?
A) After invoices have been approved for payment
B) After a schedule of aged accounts payable has been prepared
C) Before a schedule of aged accounts payable has been prepared
D) At regular intervals
Q2) What is a major source of purchasing errors?
A) Data entry errors
B) Not setting budgets for managers
C) Not validating the purchase order
D) EDI errors
Q3) The addition of a new vendor is handled in the vendor account maintenance function of the purchase order module.
A)True
B)False
Q4) What is a unique aspect of vendor maintenance?
A) Add a new vendor
B) 1099 tasks
C) Deactivate a vendor
D) Tax Form 1099
Q5) Describe output controls typically found in the purchasing process.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: The Inventory Process
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/70584
Sample Questions
Q1) The economic order quantity is the order size that minimizes holding cost plus stockout cost.
A)True
B)False
Q2) What are the main activities in the inventory process for a mercantile organization?
Q3) Which of the following control activities would protect inventory from theft?
A) Limited access to the warehouse containing inventory.
B) Allowing only the inventory manager to authorize removal of items from the warehouse.
C) Only the shipping clerks can verify the shipments and deliver the items to the warehouse.
D) All of the above are control activities that would protect inventory from theft.
Q4) Because of the similarities in inventory processes of manufacturing organizations, treatment of inventory problems in the paper industry would be treated like those in the automobile manufacturing industry.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Database Structure of Accounting Systems
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/70583
Sample Questions
Q1) What is meant by the "logical" structure of a database?
A) The way the data are thought about, or viewed, by users
B) The way the data are stored on storage devices
C) The internal level of a database
D) The conceptual and internal levels of a database
Q2) In a one-to-many relationship, one record in the first table matches many records in the second table, and one record in the second table matches many records in the first table.
A)True
B)False
Q3) What type of relationship do a customer table and an invoice table have?
A) One-to-one
B) One-to-many
C) Many-to-many
D) A and B, but not C
Q4) An index file contains metadata, which is data about data.
A)True
B)False
Q5) List the rules regarding where the foreign key should be placed EACH OF the following relationships: one-to-one, one-to-many, many-to-many.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Developing a Relational Database for an Accounting Information System
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/70582
Sample Questions
Q1) The participation of which of the following individuals is not necessary in the development of a database system?
A) Accountants
B) Marketing managers
C) Human resource managers
D) Board of directors
Q2) In the REA framework approach to developing a relational database for an accounting system, the first step is to identify and document the business events, or activities, that are of interest to users and the resources and agents that are related to the events.
A)True
B)False
Q3) A study of the business processes would uncover the relationships among events, resources, and agents.
A)True
B)False
Q4) Briefly summarize the steps required to develop a database for an accounting system using the REA framework approach.
Q5) What is an insertion anomaly?
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Electronic Business
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/70581
Sample Questions
Q1) What is the most significant benefit from EDI implementation?
A) Cost reduction from paper work elimination
B) The ability to capture and exercise a degree of control over customers
C) Increased speed in trading in merchandise
D) Increased bargaining ability with suppliers
Q2) Continuous bar codes are those that have no inter-character gaps.
A)True
B)False
Q3) The barcode symbology that uses several (more than 2) bar widths is
A) Code 39
B) UPC
Q4) Bar codes are most widely used in which application(s)?
A) General ledger
B) Sales order and accounts receivable
C) Accounts payable and purchase order
D) Inventory
Q5) List the three types of e-business and give one example of each.
Q6) Identify at least two benefits of EDI.
Q7) Define a digital signature.
Page 16
Q8) Identify three of the four functions of a VAN listed in the chapter.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Ais Selection and Implementation
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/70580
Sample Questions
Q1) What is modular conversion to a new accounting information system?
A) A conversion method that is used when a company has a number of locations, and the AIS is to be installed at each location
B) The opposite of a parallel conversion
C) The installation of one AIS component at a time and the loading of data only for that component
D) A conversion method in which the old system is stopped and existing data are imported to the new system.
Q2) Most AIS developers permit no changes to programs, while the next largest group permits only limited changes.
A)True
B)False
Q3) Which of the following is not an ERP package?
A) Oracle E-Business Suite
B) Lawson Enterprise
C) Microsoft Dynamics GP
D) Peachtree by Sage
Q4) List the tasks required in a systems acquisition project.
Q5) Discuss issues involved in system acquisition.
To view all questions and flashcards with answers, click on the resource link above. Page 17