AIS Chapter 1

What are supporting activities of the value chain

1. Firm infrastructure 2. Human resource management 3. Technology 4. Procurement

What are the primary activities of the value chain

1. Inbound logistics 2. Operations 3. Outbound logistics 4. Marketing and sales activities 5. Service Activities

What is the IT strategic role that replaces human labor with technology?

Automate

What designation would be appropriate for a CPA with a broad range of technology knowledge and experience

Certified Information Technology Professional

Which software manages sales and market for current sales and customer service

Customer Relationship Management Software

What system can significantly lower the cost of support processes included in sales, general and administrative expenses (SG&A)

Enterprise System

True/False: Data that collects the characteristics of different transactions has great value to an organization

False

Supply chain is the term used to describe a firm's interactions with its current and potential clients

False (supply chain is the flow of materials, information, payments and services from raw materials suppliers through factories and warehouses, all the way to final customers of the firms products)

Attributes of reliable information include representational faithfulness, verifiability, and ______________

Neutrality

Accountants gather information relevant in solving business problems, create or extract that information, and then _____ the information to solve the problem

analyze

Discretionary information should only be produced if the cost _____

are less than the benefits of using that information

In the information value chain presented in the book, what precedes the receipt of information?

data

Accountants serving in a ____ capacity must have significant practical exposure to key phases of systems analysis and design, including preparation of the feasibility analysis and data file design and documentation

designer

As business analysts and information providers, accountants understand what data is needed to solve a problem and are thus in a unique position to serve as a _____ of accounting information system.

designer

Activity based costing would be an example of _____

discretionary information

managerial accounting information is generally produced for internal information purposes and would be considered to be _____

discretionary information (discretionary information because there is no law requiring that it be provided to management)

Accounting Information Systems are defined as

either manual or computerized systems

A(n) ________ system serves as a central depository for information from orders, customers, sales, inventory, and employees

enterprise

An IT auditor serves as a _________ of the accounting information system

evaluator

External auditors accessing their client's accounting information system would be serving the accountant's role in an AIS of a ___________

evaluator

When auditors assess the internal controls in an AIS as part of the Sarbanes-Oxley Act, they are serving in their role as a ______of the system

evaluator

Sales recorded in a cash register would be an example of a(n) _______ activity in an information system

input

corporate tax return would be considered to be _____

mandatory information

A monthly sales report produced by an information system would be an example of a(n) ________ activity

output

An attribute of relevant information is the information provides

predictive value

To be useful to decision makers, information from an AIS must be both reliable and ________________

relevant

Information which helps users evaluate how pst decisions actually worked would be an attribute of ______

relevant information

Information that is not designed to lead users to accept or reject any specific decisions would be an attribute of _____

reliable information

Recorded transactions that are saved in the cloud would be an example of a _______ activity in an Information system

storage (different types are input, storage, processing, and output activities )

What process refers to the flow of materials, information, payments, and services from raw materials suppliers to the final customer?

supply chain

An accounting information system is defined as a system that records, processes and reports on

transactions

Information is defined as data organized in a meaningful way to be useful to the _______

user

When a product passes through value -enhancing activities, the process is called the

value chain