Type:
Test Bank
Resource:
Accounting Information Systems The Processes and Controls
Edition:
2nd Edition
Author(s):
Leslie Turner Andrea B. Weickgenannt
ACCOUNTING INFORMATION SYSTEMS/2e TURNER / WEICKGENANNT Test Bank: CHAPTER 1: Introduction to AIS
NOTE: All new or adjusted questions are in red. New questions are identified by the letter A as part of the question number; adjusted questions are identified by the letter X as part of the question number.
End of Chapter Questions: 1. When a company receives returned goods from a customer, the business process to accept the return would most likely be a(n): A. Administrative process B. Conversion process C. Expenditure process D. Revenue process 2. Which of the following is least likely to be an output of the accounting information system? A. A check B. A report C. An invoice D. A bar code 3. Which of the following is not true of the supply chain? A. The supply chain includes vendors. B. The supply chain excludes customers. C. The supply chain includes information flows. D. The supply chain include secondary suppliers. 4. Which of the following is not an objective of IT enablement? A. Increased accuracy of data B. Reduced cost C. Reduced security problems D. Increased efficiency 5. The correct order of the computer data hierarchy is: A. Byte, bit, record, field, file, database B. Bit, byte, record, field, file, database C. Bit, byte, field, record, file, database D. Bit, byte, field, record, database, file 6. The process of searching for identifiable patterns in data is called: A. Sequential processing B. Data warehousing C. Data mining D. Real-time processing 7. An IT enabled system for purchasing that is an “invoice-less” system is called a(n): A. Automated matching system B. Evaluated receipt settlement
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C. E-payables D. Point of sale system 8. The COSO report written for the purpose of assisting managers in the challenge of managing risk in their organization is entitled: A. Internal Control – Integrated Framework B. Enterprise Risk Management – Integrated Framework C. Corporate Governance Guidance D. IT Governance Guidance 9. Accountants have some form of use of the AIS in all but which role? A. User B. Programmer C. Auditor D. Designer 10. Which of the following is not true of unethical behavior? A. The only category of unethical behavior for accountants is inflating revenue. B. Accountants are often pressured to help commit or coverup unethical behavior. C. Hacking is an unethical behavior that accountants should be concerned about. D. An accounting information system can be used to cover up unethical behavior. ANSWERS TO QUESTIONS 1 - 10 (FROM THE TEXTBOOK) 1. D 6. C 2. D 7. B 3. B 8. A 4. C 9. B 5. C 10. A TEST BANK – CHAPTER 1 – MULTIPLE CHOICE 11. A prescribed sequence of work steps preformed in order to produce a desired result for the organization is called a(n): A. Accounting Information System B. Business Process C. Financial Transaction D. Capital Transaction Process 12. The process that must identify the transactions to be recorded, capture all the important details of the transactions, properly process the transaction details, and provide reports is termed the: A. Revenue Process B. Expenditure Process C. Accounting Information System D. Business Process 13. An accounting information system serves many functions - which of the following is NOT one of those functions? A. Capture the details of a transaction B. Implement the start of a transaction C. Provide reports of transactions D. Process the transactions details into appropriate accounts
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14. The proper order of activity in an accounting information system would be as follows: A. Capture, Record, Process, Report B. Process, Record, Capture, Report C. Capture, Process, Report, Record D. Record, Capture, Process, Report 15. Which of the following is not one of the general types of business processes identified by the textbook? A. Revenue Processes B. Expenditure Processes C. Conversion Processes D. Human Resource Processes 16. Which of the following statements, related to business processes, is false? A. Each business process has a direct effect on the financial status of the organization. B. A business process is initiated by a particular kind of event. C. A business process has a well-defined beginning and end. D. Each business process is usually completed in a relatively short period. 17. Which of the following is least likely to be part of an accounting information system function? A. Record the accounting data in the appropriate records B. Generation of data to be part of the information system. C. Process the detailed accounting data. D. Report the summarized accounting data. 18. Work steps that are internal controls within the business process would include: A. Using an electronic register to record all sales transactions. B. Combining both manual and computer based records. C. Reconciling a cash register at the end of each day. D. Preparation of internal reports to monitor the performance of a specific department. 19. Five different components of the accounting information system were presented in the textbook. Which of the following is not one of those components? A. Work steps within a business process intended to capture accounting data as the business process occurs. B. Work steps that are internal controls within the business process to safeguard assets and to ensure the accuracy and completeness of the data. C. Work steps that generate both internal and external reports. D. Work steps to assure that all business processes are recorded using computer-based procedures. 20. Output from an accounting information system would include: A. Checks to vendors B. Invoices from vendors C. Customer statements D. Purchase orders
21. The entities, processes, and information flows that involve the movement of materials, funds, and related information through the full logistics process, from the acquisition of raw materials to the delivery of the finished produces to the end use is a set of linked activities referred to as: A. Management Information System B. Supply Chain C. Accounting Information System
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D. Logistics Management 22. The organization and control of all materials, funds, and related information in the logistics process, from the acquisition of raw materials to the delivery of finished products to the end user is referred to as: A. Supply Chain Management B. Management Information System C. Logistics Management D. IT Enablement 23. When discussing the supply chain: A. Any concern about vendors would relate only to those vendors with which a company has direct contact. B. Service providers would not be part of the supply chain. C. Concern would not extend beyond the point where the product is shipped to a customer. D. An entity may not be able to directly control all of the interrelated activities within the supply chain. 24. Using IT systems to enhance efficiency and effectiveness of internal or supply chain processes is called: A. Information Technology Enablement B. Information Systems Control C. Information Technology Process Engineering D. Information Technology Business Processes 25. The purposeful and organized changing of business processes to make them more efficient is referred to as: A. Information Technology Engineering B. Information Systems Management C. Business Process Reengineering D. Business Process Supply Chain 26. The use of BPR (Business Process Reengineerin) is a two-fold: (1) Aligns business processes with the IT systems used to recorded processes and, (2): A. Improves the efficiency and effectiveness of these processes. B. Reduces the cost of these processes. C. Enhances the usefulness of these processes. D. Increases the accuracy of the process. 27. The smallest unit of information in a computer system can have only one of two values, zero or one, and is referred to as a(n): A. Field B. Record C. Byte D. Bit 28. A unit of storage that represents one character is referred to as a: A. Byte B. Bit C. Bat D. Field 29. A set of related fields is referred to as a: A. File B. Record C. Byte D. Binary Digit
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30. Each record is made up of related: A. Files B. Bytes C. Name D. Fields 31. A collection of data stored on a computer in a form that allows the data to be easily accessed, retrieved, manipulated, and stored is referred to as a(n): A. Accounting Information System B. Information Technology C. Database D. Master File 32. A collection of data stored in several small two-dimensional tables that can be joined together in many varying ways to represent many different kinds of relationships among the data is referred to as a(n): A. Database B. Master File C. Relational Database D. Relation Based Accounting Software 33. Accounting software traditionally uses two different types of files. The file type that is relatively permanent and used to maintain the detailed data for each major process is a(n): A. General Ledger B. Master File C. Transaction File D. Subsidiary File 34. Accounting software traditionally uses two different types of files. The file type that is the set of relatively temporary records that will be process to update the permanent file is referred to as a(n): A. Master File B. General File C. Transaction File D. Subsidiary File 35. The chart of accounts would be a good example of a: A. Transaction File B. Master File C. Field D. Record 36. The organization of files in a computer system normally uses one of two different access methods. The access method where the files store records in sequence, with one record stored immediately after another, is referred to as: A. Chronological Access B. Sequential Access C. Random Access D. Numerical Access 37. The organization of files in a computer system normally uses one of two different access methods. The access method where the files are not stored in sequence, one record not stored immediately after another, is referred
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to as: A. Indexed Access B. Batch Access C. Sequential Access D. Random Access 38. There are two modes of processing transactions in accounting systems. The mode that requires all similar transactions be grouped together and be processed at the same time, is referred to as: A. Batch Processing B. Online Processing C. Real-time Processing D. Sequential Processing 39. There are two modes of processing transactions in accounting systems. The mode that will record transactions, one at a time, is referred to as: A. Batch Processing B. Online Processing C. Real-Time Processing D. Sequential Processing 40. A type of online processing where a transaction is processed immediately so that the output is available immediately is termed: A. Virtual Processing B. Sequential Processing C. Real-Time Processing D. Batch Processing 41. An integrated collection of enterprise-wide data that includes five to ten fiscal years of non-volatile data, used to support management in decision making and planning is referred to as: A. Operational Database B. Relational Database C. Data Storage D. Data Warehouse 42. This type of database contains the data that are continually updated as transactions are processed and includes data for the current fiscal year and supports day-to-day operations is referred to as a(n): A. Data Warehouse B. Data Storage C. Relational Database D. Operational Database 43. The data in the data warehouse are said to be enterprise-wide because: A. The data relate to all areas of the business. B. The data are pulled from each of the operational databases and maintained in the data warehouse for many fiscal periods. C. All areas of the business are able to access the data warehouse. D. All transactions across the all areas of the business are recorded in the data warehouse. 44. The process of searching data within the data warehouse for identifiable patterns that can be used to predict future behavior is referred to as: A. Data mining B. Data digging
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C. Data housing D. Data querying 45. Two or more computers linked together to share information and / or resources is referred to as a(n): A. Computer Intranet B. Computer Internet C. Computer System D. Computer Network 46. This type of computer network is one that spans a relatively small area - often confined to a single building or group of buildings, and are intended to connect computers within an organization. A. Local Area Network B. Land Arena Network C. Extranet D. Internet 47. The global computer network, or “information super highway”, is the: A. WAN B. Intranet C. Internet D. LAN 48. A company’s private network, accessible only to the employees of that company is the: A. WAN B. Intranet C. Internet D. LAN 49. This computer network is similar to a company’s intranet except that it does allow access to selected outsiders, such as buyers, suppliers, distributors, and wholesalers. A. Ultranet B. Internet C. Extranet D. LAN 49A. A contemporary type of computer infrastructure that is used by an increasing number of companies involves the use of shared services, software, and / or data stored on servers at a remote location, which are accessible over a network, is referred to as: A. Database B. Cloud Computing C. Internet D. Relational Internet 50. The use of electronic means to enhance business processes is termed: A. E-business B. Electronic data interchange C. Point of sale system D. E-commerce 51. The intercompany, computer-to-computer transfer of business documents in a standard business format is called: A. E-business B. E-commerce
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C. Local area network D. Electronic data interchange 52. Which of the following is NOT one of the three components of electronic data interchange? A. Commerce - encompasses all forms of electronic trading. B. Intercompany - two or more companies conducting business electronically. C. Standard business format - necessary so that the various companies can interact and trade electronically. D. Computer to computer - indicates that each company’s computers are connected via a network. 53. This term refers to a system of hardware and software that captures retail sales transactions by standard bar coding. A. E-business B. Electronic data interchange C. Point of sale system D. E-commerce 54. When a point of sale system is used and a customer checks out through a cash register, which of the following processes occur? A. Net income is computed B. Inventory values are updated C. Accounts payable balances are updated D. Replacement inventory is purchased 55. A system of computer hardware and software in which the software matches an invoice to its related purchase order and receiving report is called: A. Point of sale system B. Electronic data interchange C. Automated matching D. Evaluated receipt settlement 56. An invoice-less system in which computer hardware and software complete an invoice-less match that is a comparison of the purchase order with the goods received is termed: A. Evaluated receipt settlement B. Automated matching C. Electronic invoice presentation and payment D. Enterprise resource planning 57. This system enables a vendor to present an invoice to its trading partner via the internet, eliminating the paper, printing, and postage costs of traditional paper invoicing. A. Evaluated receipt settlement B. Electronic invoice presentation and payment C. Automated matching D. Electronic data interchange
58. A multi-module software system designed to manage all aspects of an enterprise usually broken down into modules such as financials, sales, human resources, and manufacturing, is referred to as a(n): A. Electronic data system B. Electronic data interchange C. Enterprise resource planning D. Electronic resource program
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59X. Management has the responsibility, and the ability, to take action to reduce risks or to lessen the impact al nearly all risks an organization faces. The steps taken by management to lessen the risk or reduce the impact of the risk, are referred to as: A. Programs B. Risk assessment C. Information evaluation D. Controls 60. Which of the following groups of professionals within an organization have a history of designing and implementing the controls to lessen risks? A. Management B. Accountants C. Human Resources D. Lawyers 61. Which of the following is not one of broad categories of controls? A. The risk that assets will be stolen or misused. B. The risk of errors in accounting data or information. C. The risk of loss due to a natural disaster. D. The risk of fraudulent activity by employees. 62. Which of the following is not a risk inherent in an IT system? A. Computer security breaches. B. Computers being stolen. C. Erroneous input of data. D. Hardware or software failure. 63X. A comprehensive report on enterprise risk management was issued by this organization. A. American Accounting Association B. New York Stock Exchange C. Institute of Internal Auditors D. Committee on Sponsoring Organizations 64. A process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be withing its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives is referred to as: A. Enterprise resource planning B. Enterprise risk management C. IT system control structure D. Corporate governance structure 65. In order to achieve the objective of managing risk, management should establish control structures that include, at a minimum: A. Accounting internal controls. B. Accounting internal controls, IT controls, corporate governance, enterprise risk management, and IT governance. C. IT controls, IT governance, corporate governance, and accounting internal controls. D. IT controls and accounting internal controls.
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66. The company’s development and adherence to this should reduce the opportunities for managements or employees to conduct fraud. A. Code of ethics B. Internal control structure C. Application controls D. Corporate governance 67X. The COSO report, Internal Controls – Integrated Framework, identified interrelated components of internal control. Which of the following is not one of those components? A. Monitoring B. Risk assessment C. Control activities D. Enterprise risk management 68. IT controls can be divided into two categories. Which of the following is a correct statement of one of those categories? A. Application controls apply overall to the IT accounting system. B. Application controls apply to the prevention of erroneous or incomplete input or processing of data. C. Application controls are used specifically in accounting applications to control inputs, processing, and output. D. Application controls are used to prohibit fraudulent financial reporting. 69. An elaborate system of checks and balances, whereby a company’s leadership is held accountable for building shareholder value and creating confidence in the financial reporting processes, is referred to as: A. Enterprise risk management B. Corporate governance C. Application controls D. Internal control structure 70. The purpose of this 2002 act was to improve financial reporting and reinforce the importance of corporate ethics. A. Foreign Corrupt Practices Act B. Sarbanes-Oxley Act C. Securities and Exchange Act D. Treadway Act 71. Which of the following is not one of the corporate functions interrelated within the corporate governance system? A. Management Oversight B. Ethical Conduct C. Risk Assessment D. Financial Stewardship 72. The proper management, control, and use of IT systems are known as: A. IT Governance B. IT Controls C. IT Risk Management D. IT Code of Ethics 73. Accountants have several possible roles related to accounting information systems. Which of the following is not normally one of those roles? A. Auditor of an AIS B. User of the AIS
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C. Programmer of the AIS D. Design of the AIS 74. There are many reasons for accountants to become aware of potential unethical behaviors. Which of the following is not one of the reasons identified by the authors? A. Accountants are responsible for identifying unethical and illegal activities. B. Accounts assist in developing and implementing internal control structures that should decrease the chance of unethical actions. C. Accountants are often pressured to assist in, or cover up, unethical actions. D. Accountants deal with assets or records that could easily tempt accountants to engage in unethical behavior. ANSWERS TO TEST BANK – CHAPTER 1 – MULTIPLE CHOICE: 11. B 24. A 37. D 12. C 25. C 38. A 13. B 26. A 39. B 14. A 27. D 40. C 15. D 28. A 41. D 16. A 29. B 42. D 17. B 30. D 43. B 18. C 31. C 44. A 19. D 32. C 45. D 20. B 33. B 46. A 21. B 34. C 47. C 22. A 35. B 48. B 23. D 36. B 49. C 49A. B
50. 51. 52. 53. 54. 55. 56. 57. 58. 59X. 60. 61. 62.
A D A C B C A B C D B C B
63X. 64. 65. 66. 67X. 68. 69. 70. 71. 72. 73. 74.
D B C A D C B B C A C A
TEST BANK – CHAPTER 1 – TRUE/FALSE: 75. A business process has a well-defined beginning and end. TRUE 76. Each business process has a direct effect on the financial status of an organization. FALSE: The process could have an indirect effect. 77. Few accounting information systems rely on computer hardware and software to track business processes. FALSE: Most accounting information systems rely on computer hardware and software. 78. The rethinking and redesigning that occur during business process reengineering are aided by the use of information technology. TRUE 79. There are very few business processes that have the potential to be improved by IT enablement. FALSE 80. Business process reengineering should leverage the capabilities of information technology to improve the efficiency of business processes. TRUE 81. It is important for accountants to have some understanding of basic computer terminology.
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TRUE 82. When files are organized as sequential access, and the user needs to access record number 250, the previous 249 records will be read by the computer before reading record number 250. TRUE 83. When files are organized as sequential access, the sequence is normally based on one key record in each file. FALSE: the key is a field – not a record 84. Batch processing is best suited to applications that have large volumes of similar transactions that can be processed as regular intervals. TRUE 85. Online processing is the opposite of real-time processing. FALSE: Online processing is the opposite of batch processing. 86. Batch processing is best suited to sequential access files. TRUE 87. Online processing is best suited to sequential access files. FALSE: random access files, not sequential access files. 88. Online processing is best suited to situations were there is a large volume of records but only a few records are needed to process any individual transaction. TRUE 89. Each time a new transaction is completed, parts of the data warehouse must be updated. FALSE: parts of the operational database must be updated. 90. Data in the data warehouse are called nonvolatile because they do not change rapidly in the same way that operational data change. TRUE 91. A system of local area networks connected over any distance via other net work connections is called a WAN, or wide area network. TRUE 92. E-business is a type of e-commerce. FALSE: e-commerce is a type of e-business 93. The “intercompany” component of electronic data interchange means that two or more companies are conducting business electronically. TRUE 94. In order to have an automated matching system it is necessary to have access to paper copies of purchase orders and invoices. FALSE: All of the related files need to be online. 95. When automated matching is used, the system will not approve an invoice for payment unless the items and quantities match with the packing slip and the prices match the purchase order prices. TRUE
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96. The evaluated receipt settlement system is an IT enabled system that reduces the time and cost of processing customer payments. FALSE: processing vendor payments. 97. ERP systems are based on a relational database system. TRUE 98. Traditional accounting software is much more comprehensive and encompassing that ERP software. FALSE 99. Before ERP software systems, modules such as human resources were in separate software but well integrated with the accounting software. FALSE: were NOT well integrated. 100. Although accountants are heavily involved in the creation, implementation, and monitoring of the control structure, management has the ultimate responsibility to establish a control environment. TRUE 101. Once a company has decided on the control processes needed, it is not necessary to have an ongoing assessment of risks. FALSE: it is necessary to have an ongoing assessment of risks. 102. A code of ethics should reduce opportunities for employees to conduct fraud if management emphasizes the cost and disciplines or discharges those who violate it. TRUE 103. IT systems are to be chosen and implemented to support the attainment of strategies and objectives. TRUE 104. It is likely that an accountant will select a career path, within accounting, that will not in some way, involve the use of an accounting information system. FALSE 105. An auditor cannot make informed decisions necessary to complete the audit without an understanding of the accounting information system. TRUE 106. The accounting information system is often the tool used to commit or cover up unethical behavior. TRUE
ANSWERS TO TEST BANK – CHAPTER 1 – TRUE/FALSE: 75. True 82. True 89. False 76. False 83. False 90. True 77. False 84. True 91. True 78. True 85. False 92. False 79. False 86. True 93. True 80. True 87. False 94. False 81. True 88. True 95. True
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96. 97. 98. 99. 100. 101. 102.
False True False False True False True
103. 104. 105. 106.
True False True True
ACCOUNTING INFORMATION SYSTEMS/2e TURNER / WEICKGENANNT Test Bank: CHAPTER 2: Foundational Concepts of the AIS
NOTE: All new or adjusted questions are in red. New questions are identified by the letter A as part of the question number; adjusted questions are identified by the letter X as part of the question number.
End of Chapter Questions:
1. Which of the following statements is not true? A. Accounting information systems must maintain both detail and summary information. B. Business processes may vary from company to company. C. Regardless of the extent of computerization, all accounting information systems must capture data from the transactions within business processes. D. Business processes categorized as expenditure processes are not intended to be processes that serve customers. 2. In a manual system, an adjusting entry would most likely be initially recorded in a: A. Special journal B. Subsidiary ledger C. General journal D. General ledger 3. Which of the following is not a disadvantage of maintaining legacy systems? A. There are fewer programmers available to support and maintain legacy systems. B. They contain invaluable historical data that may be difficult to integrate into newer systems. C. Hardware or hardware parts may be unavailable for legacy systems. D. It can be difficult to integrate various legacy systems into an integrated whole. 4. Which of the following is not an advantage of cloud computing when compared to client-server computing? A. It is more calable. B. It is less costly. C. It increases the amount of computer infrastructure in a company. D. It has expanded availability. (Previous #4) 5. Which of the following is a disadvantage of purchased accounting software, compared with software developed in-house? A. It is custom designed for that company. B. It is less costly. C. The implementation time is shorter. D. There are fewer bugs. (Previous #5) 6. Which of the following is not a method of updating legacy systems? A. Enterprise application integration B. Backoffice ware C. Screen scraper
D. Complete replacement (Previous #6) 7. When categorizing the accounting software market, a company with revenue of $8 million would most likely purchase software from which segment? A. Small company B. Midmarket C. Beginning ERP D. Tier 1 ERP (Previous #7) 8. An IT system that uses touch-screen cash registers as an input method is called: A. Electronic data interchange B. E-business C. Point-of-sale system D. Source documents and keying (Previous #8) 9. When similar transactions are grouped together for a specified time for processing, it is called: A. Online processing B. Real-time processing C. Batch processing D. Group processing (Previous #9) 10. Which of the following is not correct regarding the differences in the ways that real-time systems differ from batch systems?
A. B. C. D.
Real-Time Systems Must use direct access files. Processing occurs on demand. Processing choices are menu-driven. Supporting documents are prepared as items are processed.
Batch Systems Can use simple sequential files. Processing must be scheduled. Processing is interactive. Supporting documents are prepared during scheduled runs.
(Previous #10) 11. In documenting systems, which pictorial method is described as a method that diagrams the actual flow and sequence of events? A. Systems flowchart B. Process map C. Data flow diagram D. Entity relationship diagram (Previous #11) 12. (CMA Adapted) A company in Florida provides certified flight training programs for aspiring new pilots of small aircraft. Although awarding a pilot’s license requires one-on-one flight time, there is also much preparatory training conducted in classroom settings. The company needs to create a conceptual data model for its classroom training program, using an entity-relationship diagram. The company provided the following information: Floridian Flight, Inc. has 10 instructors who can tach up to 30 pilot trainees per class. The company offers 10 different courses, and each course may generate up to eight classes. Identify the entities that should be included in the entity-relationship diagram: A. Instructor, Floridian Flight Inc., Pilot Trainee
B. Instructor, Floridian Flight Inc., Course, Enrollment, Class C. Floridian Flight Inc., Enrollment, Course, Class, Pilot Trainee D. Instructor, Course, Enrollment, Class, Pilot Trainee ANSWERS TO QUESTIONS 1-12 (FROM THE TEXTBOOK) 1. D 4. A 7. B 10. C 2. C 5. A 8. C 11. B 3. B 6. B 9. C 12. D
TEST BANK – CHAPTER 2
1. IT systems have dramatically affected many aspects of business. Which of the following is not one of the changes? A. Data input into accounting information systems. B. The way that data is processed in the system. C. The accounting information that is reported by the system. D. The outputs of the system. 2. Which of the following statements is false? A. Technology has allowed many industries to provide better, faster, and higher quality information. B. Business process must adapt to the new technologies. C. Business processes, IT systems, and the accounting information system are inextricably linked. D. IT systems have not had a major impact on the input of data into the accounting information system. 3. The system that captures, records, processes, and reports accounting information is referred to as a(n): A. Accounting information system B. Management information system. C. System of business processes. D. Client-server system. 4. Information captured by a system is generated by financial transactions: A. Within the organization only. B. Between an organization and its customers only. C. Between an organization and its vendors only. D. Within the organization and between an organization and its customers and vendors. 5. A prescribed sequence of work steps completed in order to produced a desired result for an organization is the definition of: A. Accounting information system B. Business process C. Business transaction D. Financial statement 6. Which of the following statements, related to a business process, is not a true statement? A. It has a well-defined beginning and end. B. Usually takes a long-period of time to complete. C. Occur so that the organization may serve its customers. D. Is initiated by a particular kind of event. 7. When a transaction occurs there are systematic and defined steps that take place within the organization to complete all of the underlying tasks. These “defined steps” are referred to as: A. Business Processes
B. Financial Transactions C. Accounting Information Systems D. Customer Service Arenas 8. The substance of an accounting information system includes: A. Initiate an event B. Steps taken to create a business process C. Capturing, recording, processing and reporting accounting information D. Selection of client-server computing 9. Which of the following is not one of the general categories of business processes? A. Revenue Processes B. Inventory Processes C. Expenditure Processes D. Conversion Processes 10. Which of the following correctly states the order of steps in a manual accounting system? A. Source Documents, Journals, Ledgers, Reports B. Journals, Source Documents, Ledgers, Reports C. Source Documents, Ledgers, Journals, Reports D. Ledgers, Reports, Journals, Source Documents 11. Which of the following statements is true? A. Most accounting systems in use today are computerized systems. B. All accounting systems, whether computerized or not, must capture data, process the data, and provide outputs C. It is not necessary for an accounting system to maintain summary information if it maintains detail information. D. The general ledger will be summarized and then posted to the subsidiary ledger. 12. The choice of accounting information system will depend on all of the following except: A. The size of the organization B. The philosophy of management C. The ability of the company to capture information D. The nature of its processes 13. The record that captures the key data of a transaction is called: A. Turnaround document B. Ledger C. Journal D. Source document 14. In order to organize the study of accounting information systems, the authors divided the systems in place into three categories. Which of the following is not one of those categories? A. Manual Systems B. Client-Server Systems C. Legacy Systems D. Integrated IT Systems 15. Which of the following statements is true related to manual systems? A. Few small organizations use computerized accounting systems. B. Computerized systems rely on some manual record keeping. C. Most medium sized organizations rely on manual accounting systems.
D. When using a computerized system, it is not necessary to understand the manual system. 16. Which of the following is an example of a source document? A. Purchase order B. Employee time card C. Cash receipts D. All of the above are examples of source documents. 17. A source document serves important functions in the accounting system. Which of the following is not one of those functions? A. Provides the output data for financial reports B. Serves as part of the permanent audit trail C. Triggers beginning of business processes D. Provides the input data to record the transaction 18. An output of the accounting system that can be used as an input in a different part of the accounting system is referred to as: A. Round table document B. Source document C. Turnaround document D. Financial report 19. Which of the following provides details for the entire set of accounts used in the organization’s accounting systems? A. General Ledger B. Special Journal C. Subsidiary Ledger D. General Journal 20. The book of original entry for any transaction not recorded in a special journal is the: A. Special Ledger B. General Ledger C. General Journal D. Subsidiary Journal 21. Special journals are created, or established, to record specific types of transactions. Which of the following is not one of the special journals? A. Fixed Asset Journal B. Cash Receipts Journal C. Purchases Journal D. Payroll Journal 22. The purpose of this item is to maintain the detailed information regarding routine transactions, with an account established for each entity. A. Purchases Journal B. Subsidiary Ledger C. General Journal D. General Ledger 23. Which of the following items is not one of the manual records in a manual accounting system? A. Journals B. Ledgers C. Source Documents
D. Trial Balance 24. Many of the accounting software systems consist of modules. Which of the following statements is false related to these modules? A. Are separate programs for different business processes B. Include accounts receivable, payroll, and accounts payable C. Have essentially the same purpose as special journals and special ledgers D. Are referred to as special purpose systems 25. An existing system within the organization that uses older technology is called a(n): A. Manual system B. Legacy system C. Client-server system D. Modern integrated system 26. Which of the following statements does not refer to a legacy system? A. Includes source documents, journals, and ledgers. B. Have been in place for may years. C. Much time has been spent developing, maintaining, and customizing the system. D. Often based on old or inadequate technology. 27. Organizations are often reluctant to abandon their legacy systems because: A. The system was customized to meet specific needs. B. The process to replace the systems is inexpensive. C. The time involved for replacement is minimal. D. Information contained on the system is outdated. 28. Which of the following is not one of the advantages of maintaining the legacy systems? A. The system often supports unique business processes not inherent in generic accounting software. B. The system contains invaluable historical data that may be difficult to integrate into a new system. C. The system is well supported and understood by existing personnel who are already trained to use the system. D. The system has been customized to meet specific needs of the organization. 29. Which of the following is one of the disadvantages of maintaining the legacy systems? A. Often support unique business processes not inherent in generic accounting software. B. May not easily run on new hardware. C. Contain invaluable historical data. D. Existing personnel are already trained to use the system. 30. Which of the following is not one of the disadvantages of maintaining the legacy systems? A. They become difficult to integrate when companies merge or acquire other companies. B. They are often difficult to modify to make them web based. C. They are well supported and understood by existing personnel. D. They lack adequate, up-to-date supporting documentation. 31. Frontware, which adds modern, user friendly screen interfaces to legacy systems are referred to as: A. Turnaround software B. Graphical user face C. COBOL D. Screen scrapers 32. Instead of completely replacing their systems, organizations often try to use new technology to enhance existing
systems. Which of the following is not one of the approaches taken by these organizations? A. Enterprise application integration B. Screen scrapers C. Enterprise resource planning D. Using interface bridges 33. A set of processes, software and hardware tools, methodologies, and technologies to integrate software systems is referred to as: A. Enterprise application integration B. Client-server interface C. Screen scrapers D. Complete integration 34. An use of enterprise application integration would include: A. Bridge the legacy systems to the new hardware and software. B. Intended to consolidate, connect, and organize all of the computer applications, data, and business processes. C. Allow real-time exchange and management of all the critical information. D. All of the listed items would be included. 35. Which of the following statements is false? A. When a modern, integrated system is purchased, they are often modified by the IT staff to meet the needs of the organization. B. New programs sold by software development companies are not as user friendly as the legacy systems. C. Purchased software has a lower cost, shorter implementation time, and fewer bugs. D. The modern, integrated systems typically use the latest technology. 35A. The modern integrated systems discussed by the authors include different types of architectures or model. Which of the following is not one of those models? A. Client-server model B. Legacy accounting C. Cloud computing D. All of the listed are examples of the modern integrated systems. 35B. This type of computing means that there are two types of copmuters networked together to accomplish the application processing. A. Cloud computing B. IT-Software computing C. Client-Server computing D. Web-Server computing 35C. The advantage of client-server computing is: A. PC clients perform as “smart” terminals that can accomplish some share of the process tasks. B. The server is housed at the client’s location and is maintained by the client. C. The client PC works with the entire database, whereas the server works with only a portoin of the client data. D. Each of the parts - the client PC and the server - work separately and are viewed separately by the users. 35D. Which of the following is not a main characteristic of client-server system? A. Client and server computer are networked together. B. Individual parts of processing are shared between the server and the client. C. The system appears to users to be one integrated whole. D. The client does not participate in the processing or data manipulation.
35E. Which of the following statements is false related to client-server computing? A. Tasks are assigned to either the server or the client based on the size of the task. B. A large number of client-server applications are moving toward a web-based model. C. The client is more efficient at manipulating subsets of data. D. The server is more efficient in managing large databases. 35F. Which of the following is not an example of cloud computing? A. The current method that Apple now uses to manage iTunes. B. Google’s Gmail - e-mail software. C. Purchasing songs from iTunes and downloading those songs onto your computer. D. Email accounts such as Yahoo. 35G. Which of the following is not an advantage to a cloud model of e-mail? A. It may be accessed and read from any device you use. B. You are not required to maintain e-mail software and data storage. C. Costs associated with maintaining are higher but are more controllable. D. Fewer IT employees would be needed. 35H. There are a number of cloud computing services, and one of those services is called SaaS. This acronym stands for: A. Software as a Service B. Systems at a Server C. Server adding another System D. Software as actual Services 35I. There are a number of advantages to cloud computing. Which of the following is one of those advantages? A. As a company grows, it can easily purchase new capacity from the cloud provider. B. Once the software and data are stored in the cloud, it can be accessed by multiple devices from multiple locations. C. The company has a reduced need for servers and data storage. D. All of the above. 36. There were four market segments identified by the authors in chapter 2. Which of the following is not one of those segments. A. Small Company Systems B. Midmarket Company Systems C. Legacy Company Systems D. Beginning ERP Systems 37.A company with revenue of $50 million would be most likely to purchase software from which one of the four market segments? A. Midmarket Segment B. Beginning ERP Segment C. Tier 1: ERP Segment D. Integrated Segment 38. Quickbooks and Peachtree would be part of which market segment of accounting software? A. Small Segment B. Midmarket Segment C. Beginning ERP Segment D. Legacy Segment
39. SAP and PeopleSoft are part of which market segment of accounting software? A. Small Segment B. Midmarket Segment C. Beginning ERP Segment D. Tier 1 ERP Segment 40. Five different input methods were identified by the authors. Which of the following is one of those input methods. A. EDI B. ERP C. EAI D. EPS 41. Source documents are usually preprinted and sequentially prenumbered. Which of the following is not one of the reasons for this prenumbering and preprinting? A. To have an established format to capture data B. To assure that there are no duplicate source documents C. To be sure that all of the documents have been recorded D. To be sure that all of the documents are accounted for 42. This method of input for AIS is considered to be time consuming and error prone due to the human effort required to write on some documents and to manually key in the data: A. Bar Coding B. Key Punching C. Source Documents and Keying D. Point of Sale Systems 43. The use of employee prepared time cards and the entering of the time worked by the payroll department is a good example of which type of input method for AIS? A. EDI B. Bar Coding C. Point of Use System D. Source Documents and Keying 44. A printed code consisting of a series of vertical, machine readable, rectuangular bars and spaces, that vary in width and are arranged in a specific ways to represent letters and numbers are referred to as: A. COBOL Coding B. Bar Coding C. Key Coding D. EOS Coding 45. Bar codes can be used in a number of different instances for input: A. Products that are sold B. Identification of individuals C. Track work in process D. Prepare financial statements 46. A method of using hardware and software that captures retail sales transactions by standard bar coding is referred to as: A. Point of Sale System B. COBOL System C. Inventory Tracking System D. UPC System