ACCT 4330 AIS Exam 1

____________ are examples of activities that constitute inbound logistics

Activities that consist of receiving, storing, and distributing the materials used as inputs by the organization

Many modern accounting software packages offer separate transaction cycle modules. What is the reason for this?

Every organization does not need to implement all of the available transaction cycle modules.

Identify the false statement below.

Every organization should implement every transaction cycle module.

Accounting information plays major roles in managerial decision making by

Identifying situations requiring management action & reducing uncertainty & providing a basis for choosing among alternative actions.

Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Friday, who manages the carving process. Monday is the newest employee. She collects the coconuts. Tuesday takes calls from unhappy customers. Wednesday tosses finished coconuts into the sea, sending them to the wholesaler. Thursday sends smoke signals to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Monday performing?

Inbound logistics

Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Friday, who manages the carving process. Monday is the newest employee. She collects the coconuts. Tuesday takes calls from unhappy customers. Wednesday tosses finished coconuts into the sea, sending them to the wholesaler. Thursday sends smoke signals to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Thursday performing?

Marketing and Sales

Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Friday, who manages the carving process. Monday is the newest employee. She collects the coconuts. Tuesday takes calls from unhappy customers. Wednesday tosses finished coconuts into the sea, sending them to the wholesaler. Thursday sends smoke signals to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Friday performing?

Operations

Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Friday, who manages the carving process. Monday is the newest employee. She collects the coconuts. Tuesday takes calls from unhappy customers. Wednesday tosses finished coconuts into the sea, sending them to the wholesaler. Thursday sends smoke signals to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Wednesday performing?

Outbound Logistics

___________ information reduces uncertainty, improves decision makers' ability to make predictions, or confirms expectations.

Relevant

Obtaining financing from outside investors is part of which cycle?

The Financing Cycle

Who of the following is not a stakeholder with whom an accounting information system typically communicates directly?

Wall Street industry analyst

Chopra, Limited, is an Indian company operating in New York state. It offers stylized, boutique public relations services to upscale retailers in quaint New England towns. A major source of revenue is a weekly newsletter that reports on current and projected tourist travel and spending patterns. Preparation of the newsletter requires study and analysis of weather conditions, economic activity, and travel costs. It is available at an annual subscription rate of $299.99. There are currently 190 subscribers. Preparation and distribution of the newsletter costs $12,000 annually. The value of information to subscribers is

at least $300.00

Identify the primary reason that it is important for a firm to identify the AIS improvements likely to yield the greatest return.

because most organizations have limited resources.

An accounting information system must be able to perform which of the following tasks?

collect and process transaction data and provide adequate controls

Information that does not omit important aspects of the underlying events or activities that is measures is

complete

An accounting information system (AIS) processes ________ to provide users with ________.

data; information

The _________ is not a transaction cycle.

general ledger and reporting cycle

Which of the following is not one of the components of an AIS?

hardware

Identify the piece of information below that is typically needed to hire and train employees.

job description

One group that relies on both the adequate collection and transformation of data for decision-making purposes for an organization

management

Identify a recent technological advance that provides an opportunity to gain a competitive advantage.

predictive analysis

Information that is free from error or bias and accurately represents the events or activities of the organization is

reliable

One activity within the value chain is research and development. This activity can be identified as a

technology activity

The value of information can best be determined by

the benefits associated with obtaining the information minus the cost of producing it.

In which transaction cycle would information for inventory purchases be most likely to pass between internal and external accounting

the expenditure cycle

What is the key decision that needs to be made with regards to acquiring equipment?

the location

Identify how firms use predictive analysis

to provide an educated guess regarding what is expected to occur in the future

Groups of related business activities such as the acquisition of merchandise and payment of vendors are called

transaction cycles.

Before a firm can identify the information needed to effectively manage a process, the firm must

understand the process

Identify the piece of information below that is typically needed to acquire inventory.

vendor performance