AIS Exam 1

What are important business functions that an AIS can fulfill? (hint: there are 3)

-collect and store data -Transform data into information -Provide adequate controls -Sharing knowledge -improve business efficiency

What are some activities in an expenditure cycle?

-get goods, give cash -purchasing raw materials (sometimes people thing thats the production cycle but whenever you are purchasing something it is part of the expenditure cycle) -Pay vendors -Purchase order -shipping and delivery are more of a revenue cycle -paying rent -Taxes like a property tax

When accountants build bots to help them with the tasks of their job, what description best explains the type of bot they would build? A. A computer program that is designed to perform a specific task B. None of these C. A robot that uses artificial intelligence to act like a human D. A machine that performs a task more quickly than a human

A. A computer program that is designed to perform a specific task

Before becoming the CEO, Kurt designed a new toy for the company. Although the sales of the new toy are the same as other toys in the company, the CEO gives employees in the new toy division a reward and bonus. The CEO is likely showing what? A. A confirmation bias B. A data sharing error C. Correlation can be causation D. A data analysis error

A. A confirmation bias

What is the definition of a question that is measurable? A. A question that is amenable to data analysis: the inputs are measurable with data. B. A question that is direct and focused to produce a meaningful answer. C. A question that has a defined time horizon for answering. D. A question that should be able to be answered and the answer should cause a decision maker to act.

A. A question that is amenable to data analysis: the inputs are measurable with data.

Which of the following is a benefit of implementing an ERP system at a multinational corporation? A. All of these are correct B. Standardization of procedures and reports across business units C. Customer service improves as employees can quickly access data D. Increased productivity of employees

A. All of these are correct

Accounting software has improved significantly over time. We now have intelligent or automated accounting systems that can: (Check all that apply.) A. Allow companies and clients to use smart portals to transfer data and information back and forth securely B. Use machine learning and artificial intelligence to process data and store it in the cloud C. Make critical and strategic management decisions without human intervention D. Record transactions automatically, perform on demand accounting functions, and automatically distribute data

A. Allow companies and clients to use smart portals to transfer data and information back and forth securely B. Use machine learning and artificial intelligence to process data and store it in the cloud D. Record transactions automatically, perform on demand accounting functions, and automatically distribute data

Accounting software has improved significantly over time. We now have intelligent or automated accounting systems that can: (Check all that apply.) A. Allow companies and clients to use smart portals to transfer data and information back and forth securely B. Make critical and strategic management decisions without human intervention C. Record transactions automatically, perform on demand accounting functions, and automatically distribute data D. Use machine learning and artificial intelligence to process data and store it in the cloud

A. Allow companies and clients to use smart portals to transfer data and information back and forth securely C. Record transactions automatically, perform on demand accounting functions, and automatically distribute data D. Use machine learning and artificial intelligence to process data and store it in the cloud

Check good visualization design principles among the four options given. A. Choose the right type of visualization B. Use text and not data visualizations C. Do not use data dashboards D. Simplify the presentation of data.

A. Choose the right type of visualization D. Simplify the presentation of data.

An AIS is composed of people, procedures and instructions, data, software, technology infrastructure, and controls. These six components enable an AIS to fulfill which of the following important business functions? (Check all that apply.) A. Collect and store data about the organization's activities, resources, and personnel B. Transform data into information so management can plan, execute, control, and evaluate activities, resources, and personnel C. Develop the procedures and instructions needed to operate the software and store the data D. Provide the controls needed to safeguard an organization's assets and data E. Hire the best people available to manage the organization

A. Collect and store data about the organization's activities, resources, and personnel B. Transform data into information so management can plan, execute, control, and evaluate activities, resources, and personnel D. Provide the controls needed to safeguard an organization's assets and data

Once business activity data have been entered into the system, they must be processed to keep the databases current. Which of the following are not one of the four different types of data processing activities? A. Controlling access to the data records B. Updating previously stored data C. Deleting data records no longer needed D. Creating new data records E. Reading, retrieving, or viewing existing data

A. Controlling access to the data records

Check each example of structured data in the list below. A. Customer addresses saved in a customer relation database B. HTML website data saved on the company's website C. Photographs of all employees saved in the human resource database D. Phone numbers of employees saved in a database

A. Customer addresses saved in a customer relation database D. Phone numbers of employees saved in a database

Amitola created a dashboard showing key metrics about the accounts payable process at her organization. The dashboard showed various metrics including: the total number of vendors, the amount saved by paying vendors on early, and the number of late payments to vendors. Which of the following best describes the type of analytics included in the dashboard? A. Descriptive analytics B. Prescriptive analytics C. Diagnostic analytics D. Predictive analytics

A. Descriptive analytics

Which of the following are ADVANTAGES of ERP systems? (Check all that apply.) A. ERP systems provide an integrated, enterprise-wide view of an organization's data and financial situation. B. Management gains greater visibility into every area of the enterprise, and greater monitoring capabilities. C. ERP systems are relatively inexpensive. D. Procedures and reports are standardized across business units. E. Because the ERP system benefits are so great, there is little resistance to their installation.

A. ERP systems provide an integrated, enterprise-wide view of an organization's data and financial situation. B. Management gains greater visibility into every area of the enterprise, and greater monitoring capabilities. D. Procedures and reports are standardized across business units.

Which of the following statements about database systems is (are) true? (Check all that apply.) A. Encourages data sharing B. Increases data inconsistency C. Minimizes data redundancy D. Provides data independence

A. Encourages data sharing C. Minimizes data redundancy D. Provides data independence

The text discusses three different steps when processing input. Which of the following is (are) one of those steps? (Check all that apply.) A. Make sure captured data are accurate and complete. B. Make sure to capture transaction data and enter them into the system. C. Make sure the input data is processed and stored correctly. D. Make sure company policies are followed when data is input.

A. Make sure captured data are accurate and complete. B. Make sure to capture transaction data and enter them into the system. D. Make sure company policies are followed when data is input.

Bernard prepares a data dashboard to send to the CFO. The CFO's objective for the dashboard is to see the "free cash" position of the company each morning in less than one minute. The dashboard fits on a single computer screen and contains 22 different charts. Which storytelling principles are supported by this dashboard? A. None of these B. Communicate effectively C. Communicate quickly D. Appropriate level of detail

A. None of these

If analytics are performed well, it is certain that ____________________________. A. None of these are necessarily certain. B. high-quality judgments will follow. C. fraud will be reduced. D. efficiency will be gained.

A. None of these are necessarily certain.

Shipping newly manufactured phones to retailers and customers is an example of which type of primary activity? A. Outbound logistics B. Marketing C. Operations D. Service

A. Outbound logistics

ERP systems are modular, with each module handling a standard business process. This modular design allows businesses to add or delete modules as needed. Which of the following are typical ERP modules mentioned in the text? (Check all that apply.) A. Project management—costing, billing, time and expense, performance units, and activity management B. Order to cash—sales order entry, shipping, inventory, cash receipts, and commission calculation C. Financial—general ledger, budgeting, cash management, and preparation of managerial reports and financial statements D. Vendor relationship management—procurement and promotion, vendor contact and service, and call center support E. System tools—tools for establishing master file data, specifying flow of information, and access controls

A. Project management—costing, billing, time and expense, performance units, and activity management B. Order to cash—sales order entry, shipping, inventory, cash receipts, and commission calculation C. Financial—general ledger, budgeting, cash management, and preparation of managerial reports and financial statements E. System tools—tools for establishing master file data, specifying flow of information, and access controls

According to the EY Foundation, over which data analytic techniques should accountants gain mastery? A. Querying, trends, forecasting B. Cluster analysis, inferential statistics C. Correlation, regression D. Data mining, artificial intelligence

A. Querying, trends, forecasting

Check the likely benefits of using robotic process automation among the four options below. A. RPA performs tasks faster than a human. B. RPA is better adapting to changing environments than a human. C. RPA will make fewer mistakes for rules based tasks than a human. D. RPA can do more cognitively challenging tasks than a human.

A. RPA performs tasks faster than a human. C. RPA will make fewer mistakes for rules based tasks than a human.

Which of the following is not a transaction cycle? A. The general ledger cycle. B. The expenditure cycle. C. The revenue cycle. D. The HR/payroll cycle.

A. The general ledger cycle.

Which of the following statements is (are) true? (Check all that apply.) A. There are limits to the amount of information the human mind can absorb and process. B. Information costs and benefits can be difficult to quantify. C. The smaller the organization and the less complicated the system, the more difficult it is to achieve goal congruence. D. Most systems are composed of smaller subsystems, each designed to achieve one or more organizational goals, which support a larger system. E. As a rule, users make better decisions as the quantity and quality of information decreases.

A. There are limits to the amount of information the human mind can absorb and process. B. Information costs and benefits can be difficult to quantify. D. Most systems are composed of smaller subsystems, each designed to achieve one or more organizational goals, which support a larger system.

Which of the following are DISADVANTAGES of ERP systems? (Check all that apply.) A. They are complex because they have to integrate many different business activities and systems. B. Usually companies must adapt their processes to standardized ERP business processes. C. Data input must be captured or keyed multiple times as it is entered into different systems. D. It can take years to select and fully implement an ERP system. E. The organization is less able to control access to the system.

A. They are complex because they have to integrate many different business activities and systems. B. Usually companies must adapt their processes to standardized ERP business processes. D. It can take years to select and fully implement an ERP system.

You are tasked with representing how much of total product sales is represented by each of four product lines. Which viz is most appropriate? A. Treemap B. Area chart C. Bullet chart D. Bar chart

A. Treemap

Chibuzo creates a chart to show the percentage of activities in the accounting function have been automated over time. She wants to stress the slow rate of change by the department to adopt automation. What is the purpose of Chibuzo's visualization and what type of chart would be best for this purpose? A. Trend evaluation, line chart B. Comparison, line chart C. Comparison, bar chart D. Correlation, scatterplot

A. Trend evaluation, line chart

Check each item listed below that is part of the process for transforming data. A. Understand the data and the desired outcome B. Standardize, structure, and clean the data C. Document the transformation process D. Validate data quality and verify data meets data requirements

A. Understand the data and the desired outcome B. Standardize, structure, and clean the data C. Document the transformation process D. Validate data quality and verify data meets data requirements

Which of the following are access rights that can be granted in a subschema? (Check all that apply.) A. Update B. Delete C. Read D. Create E. Edit

A. Update B. Delete C. Read D. Create

Which of the following is most likely to be a general ledger control account? A. accounts receivable B. prepaid rent C. retained earnings D. petty cash

A. accounts receivable Accounts receivable is typically made up of many individual customer accounts maintained in a subsidiary ledger. The total of all individual customer accounts in the subsidiary ledger is maintained in the accounts receivable control account in the general ledger.

Data must be collected about three facets of each business activity. These facets are A. activity of interest, the resource(s), and the people who participate. B. the resource(s), the benefits, and the process. C. activity of interest, the process, and the people who participate. D. activity of interest, the resource(s), and the process.

A. activity of interest, the resource(s), and the people who participate.

Which of the following is NOT a component of an AIS? A. company culture B. software C. people D. IT infrastructure

A. company culture

The process of translating complex data into easier to understand terms is called ________. A. data storytelling B. data visualization C. data transformation D. data dashboard

A. data storytelling

Which of the following is LEAST likely to be a specialized journal? A. prepaid insurance journal B. sales journal C. cash receipts journal D. cash disbursements journal A specialized journal is used to record large numbers of repetitive transactions, and most companies have very few prepaid insurance transactions.

A. prepaid insurance journal A specialized journal is used to record large numbers of repetitive transactions, and most companies have very few prepaid insurance transactions.

To answer the question of "What should be done," one would apply ____________________. A. prescriptive analytics B. diagnostic analytics C. predictive analytics D. descriptive analytics

A. prescriptive analytics

Computer software that can be programmed to automatically perform tasks across applications just as human workers do is called _______. A. robotic process automation (RPA) software B. analytics software C. ETL software D. big data software

A. robotic process automation (RPA) software

You are given an extract of one field from a database. The field has the value "11815 N. Diamond Dr." Which type of data is contained in this field? A. structured data B. unstructured data C. semi-structured data D. None of the above

A. structured data The data has a defined structure that can be easily fit into a database field.

The value of information can best be determined by A. the benefit provided by information less the cost of producing it. B. the time it takes to help decision makers make their decisions. C. the relevance provided to decision makers. D. the usefulness provided to decision makers.

A. the benefit provided by information less the cost of producing it.

Before a company can identify the information needed to effectively manage a process, the company must A. understand its business process. B. upgrade its information system. C. consult with its operation department. D. hire an information system director.

A. understand its business process.

Which of the following are characteristics of useful information? (Check all that apply.) A. Encrypted B. Accurate C. Reputable D. Biased

B. Accurate C. Reputable

You are tasked with presenting a viz that compares sales for four different products. Which viz is likely most appropriate? A. Histogram B. Bar chart C. Pie hart D. Area chart

B. Bar chart

The text mentions four guidelines for developing a properly structured relational database. Which of the following is not one of these guidelines? A. Primary keys cannot be null. B. Each object identified by the primary key must have at least three non-key attributes C. All non-key attributes must describe the object identified by the primary key D. Every column in a row must be single valued.

B. Each object identified by the primary key must have at least three non-key attributes

Receiving and storing inventory is an activity in which transaction cycle? A. Production B. Expenditure C. Revenue D. Financing

B. Expenditure

A data owner sends you an e-mail with a file to prepare for analysis. The file contains data from multiple database tables all merged into a single file. There are multiple fields in the file each separated by a "~" symbol. For fields that contain large amounts of text, the file contains a "+" at the beginning and end of the text field. Indicate which of the following best describes (1) the type of file the data owner sent, (2), what the "+" is called, and (3) what the "~" is called. A. Flat file, delimiter, text qualifier B. Flat file, text qualifier, delimiter C. Relational database file, delimiter, text qualifier D. Relational database file, text qualifier, delimiter

B. Flat file, text qualifier, delimiter

Most organizations engage in a small number of a pair of activities that happen many times. These are called: A. Paired transaction exchanges B. Give-get exchanges C. Conflict-congruence exchanges D. Revenue-expenditure exchanges

B. Give-get exchanges

Which of the following is a primary activity? A. Firm infrastructure B. Inbound logistics C. Technology D. Purchasing

B. Inbound logistics

A company has collected performance data (machine movements, units produced, quality measures) from a production machine for several months. Each day the company has increased speed by 0.05 percent. The company plans on building a model to estimate the machine's quality measures assuming an additional 2% increase in machine speed. Which type of analytic will be performed? A. Prescriptive B. Predictive C. Descriptive D. Diagnostic

B. Predictive

Making sure to use separate training datasets and test datasets is especially important for creating what type of analytic? A. Descriptive analytic B. Predictive analytic C. Diagnostic analytic D. Prescriptive analytic

B. Predictive analytic

Which of the following is the most common source doc in the expenditure cycle? A. Bill of lading B. Purchase order C. Credit memo D. Remittance advice

B. Purchase order

In which business cycle are goods shipped to a customer? A. Expenditure cycle B. Revenue cycle C. Production cycle D. Payroll cycle

B. Revenue cycle

With respect to data input, data must be collected about three facets of each business activity. Which of the following is (are) one of those facets? (Check all that apply.) A. The decisions that will be made about each activity B. The resource(s) affected by each activity C. Each activity of interest D. The controls needed to protect activity data E. The people who participate in each activity

B. The resource(s) affected by each activity C. Each activity of interest E. The people who participate in each activity

In which transaction cycle would information for generating customer orders be most likely to pass between internal and external accounting information systems? A. The financing cycle. B. The revenue cycle. C. The expenditure cycle. D. The HR/payroll cycle.

B. The revenue cycle.

A delimiter is _________. A. a data element that identifies numeric values B. a data element that separates field values C. a data element used in the data dictionary D. a data element that allows large text sizes

B. a data element that separates field values

An analysis of the current profitability of a product line such as Cost-Volume-Profit (CVP) analysis is an example of ____________ analytics. A. diagnostic B. descriptive C. prescriptive D. predictive

B. descriptive

Testing a hypothesis is an example of ___________ analytics. A. descriptive B. diagnostic C. predictive D. prescriptive

B. diagnostic

The constraint that all primary keys must have non-null data values is referred to as which of the following? A. referential integrity rule B. entity integrity rule C. relational data model rule D. normalization rule

B. entity integrity rule Every primary key in a relational table must have a nonnull value.

Which of the following would contain the total value of all inventory owned by an organization? A. source document B. general ledger C. cash budget

B. general ledger The general ledger maintains summary information on inventory and every other general ledger account.

Data is most useful when ______. (Check all that apply.) A. it increases uncertainty. B. it is in machine-readable format. C. it lacks clarity. D. its access is limited to a single person.

B. it is in machine-readable format.

Joey Smith has been the controller of Nadia Cake for the past 5 years. The owners of Nadia have recently decided to expand their operation and are in the process of obtaining a loan from a local bank. In order to be qualified for the loan, the bank asks Nadia to conduct an audit of the financial records. The auditors have been unable to obtain Nadia's financial statements that were prepared by Joey. While there is no evidence of wrongdoing, the auditors are not able to complete the audit. Which of the following characteristics of useful information is absent in the situation described above? A. Reliable B. Verifiable C. Accessible D. Complete

C. Accessible

Pie charts are the most over-used type of charts. This is because they are often used to show comparison. Select which chart type is best for making comparisons. A. Scatterplot B. Histogram C. Bar chart D. Line chart

C. Bar chart

Suppose your salespersons are given great latitude is setting product prices to their customers. You are tasked with showing how much each salesperson varies in prices for one particular product. Which viz is most appropriate? A. Bar chart B. Area chart C. Boxplot D. Heatmap

C. Boxplot

An analytic that answers the question, "why did this happen?" is best described as which of the following? A. Prescriptive analytic B. Predictive analytic C. Diagnostic analytic D. Descriptive analytic

C. Diagnostic analytic

When confirmatory data analysis techniques are used, what type of analytic is likely being computed? A. Predictive analytic B. Prescriptive analytic C. Diagnostic analytic D. Descriptive analytic

C. Diagnostic analytic

Which of the following is an example of an ERP system? A. John uses a computerized information system to keep track of all the financial data generated by his business. B. Jim has a system that keeps track of the cash receipts and cash disbursements of his cleaning business. At the end of each month, the system helps him prepare a monthly profit and loss statement. C. Each week Emily enters all of the data into a system that automatically generates purchase orders, based on predetermined inventory reorder points. Production quotas for the coming week are also automatically generated based on customer orders. D. Ken is a freelance contractor. He keeps records of all expenses and revenues on his cell phone app and the files are uploaded to the cloud on a regular basis.

C. Each week Emily enters all of the data into a system that automatically generates purchase orders, based on predetermined inventory reorder points. Production quotas for the coming week are also automatically generated based on customer orders.

The logical view of data is: A. Way data are arranged and stored in the computer B. Description of data elements in a database, relationships among them, and logical model used to organize and describe data C. How people organize, view, and understand relationships among data items D. Information about the database structure; includes description of each data element

C. How people organize, view, and understand relationships among data items

What is the first step in the data processing cycle? A. Output B. Processing C. Input D. Storage

C. Input

At a local supermarket, a data analyst used video data of the parking lots to identify the times when customer carts are most often left out in the parking lot. The analyst then designed the scheduling program to schedule more employee baggers to work during the time when shopping carts are left outside. The data analyst used what type of analytics in this scenario? A. Diagnostic analytics B. Predictive analytics C. Prescriptive analytics D. Descriptive analytics

C. Prescriptive analytics

Indicate which option orders the type of analytic from the one that provides the most value added to an organization to the least value added to the organization. A. Prescriptive, predictive, descriptive, diagnostic B. Predictive, prescriptive, diagnostic, descriptive C. Prescriptive, predictive, diagnostic, descriptive D. Predictive, prescriptive, descriptive, diagnostic

C. Prescriptive, predictive, diagnostic, descriptive

________ information reduces uncertainty, improves decision making, or confirms or corrects prior expectations. A. Complete B. Verifiable C. Relevant D. Reliable

C. Relevant

____________ is a process of changing data into a format that another program can use. A. Delimiting B. Cleaning C. Transforming D. Visualizing

C. Transforming

The central organizing tenant of the file-oriented approach is to store data related to A. an entity. B. a transaction cycle. C. a specific program. D. a business division.

C. a specific program.

External level schemas A. define the entire database. B. are only available to the DBA. C. are where rights are set for individual users. D. include details about record layouts and definitions.

C. are where rights are set for individual users.

One of the benefits of using a database is to allow an organization to change its data in one location without concern of affecting its data in another location. This benefit is called A. data integration. B. data redundancy minimization. C. data independence. D. data sharing.

C. data independence.

Mary Grossman has been selling cupcakes for the past few years. She keeps meticulous record of every cupcake that she has ever made and sold. She has also kept records of customers' comments on all her cupcakes. These have been entered into a computerized accounting information system that her accountant refers to as a "data warehouse." Mary is considering rebranding her cupcake business and has asked her accountant to identify the top-selling cupcakes for the past few years. Mary wants her accountant to engage in A. product auditing. B. data exploring. C. data mining. D. product resource management.

C. data mining.

The process of translating complex data into easier to understand terms is called ________. A. data dashboard B. data transformation C. data storytelling D. data visualization

C. data storytelling

A company uses a boxplot in a visualization. What is likely the purpose of the visualization? A. comparison B. part to whole C. distribution D. correlation

C. distribution Boxplots show the distribution of data.

An attribute in a table that serves as a unique identifier in another table and is used to link the two tables is a A. local key. B. primary key. C. foreign key. D. secondary key.

C. foreign key.

The referential integrity rule states that A. a database table row must contain data about a specific item. B. a non-null primary key should ensure that every row in a table represents something that can be identified. C. foreign keys must have values that correspond to the value of a primary key in another table. D. in a two-dimensional table, each row is a unique entity and each column is a field where data are stored.

C. foreign keys must have values that correspond to the value of a primary key in another table.

Cupcake by Emma is a dessert retailer located in Springtown, Texas. Emma is a sole proprietorship that stocks an inventory of between 30 and 50 different kinds of desserts. Inventory is updated in real time by the company's AIS. If Emma wishes to keep cumulative data about the company, Emma might use a A. specific file. B. transaction file. C. master file. D. relational file.

C. master file.

Using Robotic Process Automation is best for tasks that are ________________. A. interesting B. changing C. repetitive D. complex

C. repetitive

The relational data model portrays data as being stored in __________. A. objects B. hierarchies C. tables D. files

C. tables The relational data model portrays data as being stored in a table or relation format.

The database view that allows a sales manager to view all customer information as if stored in a table is called A. the custom view. B. the physical view. C. the logical view. D. the detail view.

C. the logical view.

Making an item in the data area of a viz larger to increase emphasis is an example of using which principle? A. ordering B. highlighting C. weighting D. It's a poor design choice; items should all be the same size.

C. weighting Size is an important way to increase visual heaviness, which emphasizes the item.

Which of the following is not a principle to avoid in trying to create ethical data presentations? A. Show representations of numbers proportional to the reported number B. Present complete data given the context C. In vizs designed to depict trends, show time progressing from left to right on the x-axis D. All of these are important principles to follow for creating ethical data presentations

D. All of these are important principles to follow for creating ethical data presentations

Which of the following can be used to present data unethically? A. selectively presenting only part of a viz B. with an axis, showing the most recent time closest to the origin C. truncating or stretching the axes D. All the above

D. All the above All of the above can be used to unethically present data.

Which of the following is the best example of correlation not being the same as causation? A. After a poorly performing quarter, a company sends out coupons in the mail and sees an increase in sales. The company concludes that sending coupons causes sales to increase. B. A company redesigns a production process and afterwards it takes less time to produce products. The company concludes that redesigning processes causes production efficiency gains. C. A company pays sales employees more for each sale and each employee starts selling more goods. The company concludes that paying employees more for a sale causes employees to sell more items. D. During an economic downturn, a company changes its computer policy to only allow purchases of windows-based laptops and see profits go down. The company concludes that windows-based laptops cause profits to go down.

D. During an economic downturn, a company changes its computer policy to only allow purchases of windows-based laptops and see profits go down. The company concludes that windows-based laptops cause profits to go down.

Asking the right questions is the first step of an analytics mindset. Which of the following is not part of the analytics mindset as defined by the accounting firm EY? A. Interpret and share the results with stakeholders B. Extract, transform, and load relevant data C. Apply appropriate data analytic techniques D. Exercise professional skepticism when using data

D. Exercise professional skepticism when using data

All of the following are ways an AIS can add value to an organization except: A. Improving efficiency B. Improving internal controls C. Sharing knowledge D. Increasing product costs

D. Increasing product costs

An analytic that answers the question, "what might happen in the future?" is best described as which of the following? A. Diagnostic analytic B. Descriptive analytic C. Prescriptive analytic D. Predictive analytic

D. Predictive analytic

When sharing the results of an analysis, which of the following is NOT a key principle to follow? A. Ethically represent the data. B. Emphasize what is important. C. Simplify the presentation of data. D. Present the visualization in a timely manner.

D. Present the visualization in a timely manner. While timeliness may be important in many settings, it is not a key component of how to share data analytics results.

Good questions should be "SMART." Which of the SMART objectives suggests that a question should relate to the objectives of the organization or the situation under consideration? A. Measurable B. Specific C. Achievable D. Relevant

D. Relevant

Which of the following is an example of a common activity in an AIS? A. Organizing community services for the company. B. Recording sales calls for marketing purposes. C. Keeping track of the number of customers who visited the company's website. D. Selling goods and services and collecting cash.

D. Selling goods and services and collecting cash.

Which of the following is an example of a turnaround doc A. A company's financial statements B. Employee earnings record C. Purchase orders D. Utility bill

D. Utility bill

Understanding what big data means helps to know what types of questions can be fruitfully examined using data. Big data differs from regular data in four ways, often called the "four V's." Which of the following is not one of the four V's? A. Variety B. Veracity C. Velocity D. Validity

D. Validity

An update anomaly can occur if A. a data element is left out of an update. B. a data element is deleted and causes the loss of information about a different data element. C. a user incorrectly changes a value. D. an instance of the same data is stored in two or more places in the database.

D. an instance of the same data is stored in two or more places in the database.

The organization-wide view of the entire database that lists all data elements and the relationships between them is called A. subschema. B. external-level schema. C. internal-level schema. D. conceptual-level schema.

D. conceptual-level schema.

A collection of structure, semi-structured, and unstructured data stored in a single location is called a ___________. A. data warehouse B. database C. metadata D. data lake

D. data lake

Information is best described as A. raw facts about transactions. B. a set of related, coordinated, and structured data. C. facts that are collected, recorded, stored, and processed by an information system. D. data that have been organized and processed to provide meaning and improve decision making.

D. data that have been organized and processed to provide meaning and improve decision making.

Comparing means and medians is an example of __________________ analytics. A. diagnostic B. predictive C. prescriptive D. descriptive

D. descriptive

A company wants to determine how to decrease employee turnover. In order to do this, they test whether paying off an employee's student debt will cause fewer employees to leave. The analytic testing whether paying off an employee's student debt causes lower turnover is an example of which type of analytic? A. predictive B. prescriptive C. descriptive D. diagnostic

D. diagnostic The analytic is explaining why there is a relationship between two variables.

Annie Walker is a sales associate for Drug Co. Annie uses her company issued computer to access Drug Co.'s accounting information system when she travels across the country. She has access to view customer and product information. She also has access that allows her to enter and cancel customer orders. Annie's right to access those portions of Drug Co.'s AIS represents a(n) ________ in the company's database management system. A. data dictionary. B. internal-level schema. C. conceptual-level schema. D. external-level schema.

D. external-level schema.

The problem of not being able to add records to a database is called A. delete anomaly. B. database anomaly. C. update anomaly. D. insert anomaly.

D. insert anomaly.

The database used for processing current business transactions is called the A. data warehouse. B. online analytical processing database (OLAP). C. data lake. D. online transaction processing database (OLTP).

D. online transaction processing database (OLTP).

The National Butterfly Society maintains a database of all types of butterflies within the United States. One database table will store the butterfly species name and family classification number, with each species uniquely identified by a registration number. A second table will contain butterfly families, uniquely identified by the family classification number, and will be linked to the species table by means of the family classification number. The primary key of the species table is A. species number. B. butterfly number. C. family classification number. D. registration number.

D. registration number.

How does the chart of accounts list general ledger accounts? A. alphabetical order B. size order C. chronological order D. the order in which they appear in financial statements

D. the order in which they appear in financial statements

When discussing the amount of attention an element attracts, you are discussing _______________. A. distance B. highlighting C. ordering D. visual weight

D. visual weight

A virus pandemic causes governments to shut down all restaurants. A national restaurant chain creates an analysis to see how long their cash reserves can continue to pay employees before the company runs out of money.

Descriptive

An internal auditor notices an increase in a company's inventory shrinkage (i.e., inventory being stolen). The internal auditor creates a data model that explains what types of inventory are being stolen.

Diagnostic

Check all techniques that can be used to EMPHASIZE in a visualization. A. Highlighting B. Color C. Orientation D. Weighting E. All of the above

E. All of the above

Check all techniques that can be used to simplify a visualization. A. Put information on multiple vizs B. Orientation C. Distance D. Quantity E. All of the above

E. All of the above

Check good visualization design principles among the four options given. A. Choose the right type of visualization B. Simplify the presentation of data. C. Use text and not data visualizations D. Do not use data dashboards E. Both A and B

E. Both A and B

General Transaction Journals

General Journal

A tax accountant prepares analyses that shows what will happen to the customers of his client if the country adopts a new tax law.

Predictive

A corporate accountant designs a cook scheduling system based on past data for meal preparation. The new system should assure that there are always enough cooks scheduled for peak demand at the restaurant.

Prescriptive

Specialized Transaction journals

Sales Journal Cash receipts journal Cash disbursement journals Purchases journals

Prescriptive analytics answer which of the following questions? a. "What should be done?" b. "What is likely to happen in the future?" c. "Why did this happen?" d. "What happened?"

a. "What should be done?"

A collection of structured, semi-structured, and unstructured data stored in a single location is called: a. A data lake b. A data mart c. A data swamp d. None of the above

a. A data lake

What is data? a. All of the facts that are collected, stored, and processed by an information system b. All of the debit and credit information about each transaction c. The output which results from the input of information d. The same thing as information

a. All of the facts that are collected, stored, and processed by an information system

A key competency that accountants and business professionals must develop in the age of big data is which of the following? a. Analytics mindset b. Big data mindset c. The ETL mindset d. The SMART mindset

a. Analytics mindset

What type of data analysis tests a hypothesis and provides statistical measures of the likelihood that the data supports or refutes a particular hypothesis? a. Confirmatory b. Visualization c. Predictive d. Prescriptive

a. Confirmatory

Which of the following is not a step in the data processing cycle? a. Data collection b. Data input c. Data storage d. Data processing

a. Data collection

A company wants to store information about inventory including quantities, prices, cost, photos, and social media reviews. What type of data repository should be used? a. Data lake b. Data warehouse c. Data mart d. Data swamp

a. Data lake

Which of the following statements is FALSE: a. Data storytelling allows a person to make the data say anything they want to achieve their objective. b. Data dashboards show multiple visuals to tell a complete story. c. Data interpretation can differ between individuals for non-nefarious reasons. d. Data visualization often communicates information more quickly and in a more memorable fashion than using text.

a. Data storytelling allows a person to make the data say anything they want to achieve their objective.

A company upgraded production machinery to collect data about the fit tolerance for assembled parts of each unit produced along with environmental data such as machine temperature, parts temperature, ambient air temperature, humidity, and atmospheric pressure. Before the upgrade, only fit tolerance data was collected. The upgrade represents an increase in a. Data variety b. Data velocity c. Data veracity d. Data validity

a. Data variety

If the CIO asks for a report of how many website visits come from IP addresses that are known to be associated with website hacking, what type of analytic would be computed? a. Descriptive b. Diagnostic c. Predictive d. Prescriptive

a. Descriptive

If the CIO asks for a report of how many attempted data breaches occurred in the last quarter, what type of analytic would be computed? a. Descriptive Analytic b. Diagnostic Analytic c. Predictive Analytic d. Prescriptive Analytic

a. Descriptive Analytic

The controller of a company performs an analysis to examine the hypothesis that if customers purchase higher priced machines in the last quarter of the year, they are less likely to purchase new machinery the following year. a. Diagnostic Analytic b. Predictive Analytic c. Descriptive Analytic d. Prescriptive Analytic

a. Diagnostic Analytic

A text file that contains data from multiple tables or sources and merges that data into a single row is known as a: a. Flat file b. Data owner file c. Delimiter file d. Text qualifier file

a. Flat file

An accounting firm predicts the likelihood of employees passing the CPA exam within one year of accepting an offer. In creating the dataset, the HR analyst sorts the data incorrectly so that the hire date and the exam pass date on each line do not correspond. This analysis most likely suffers from which of the following problems? a. Garbage in, garbage out b. Overfitting c. Extrapolating beyond the range d. Too much variance

a. Garbage in, garbage out

All of the following techniques are useful for simplifying a visualization except for: a. Ordering b. Color c. Distance d. Quantity

a. Ordering

A chart of accounts provides the user with a list of general ledger accounts. a. True b. False

a. True

A component of an Accounting Information System are the people who use the system. a. True b. False

a. True

A data dashboard is a display of important data points, metrics, and key performance indicators in easily understood data visualizations. a. True b. False

a. True

A data dictionary contains information about the structure of the database. a. True b. False

a. True

A data dictionary should contain metadata, which is data that describes other data. a. True b. False

a. True

A foreign key is an attribute in a table that is a primary key in another table. a. True b. False

a. True

Accounts receivable generally has a sub-ledger for many companies. a. True b. False

a. True

Data veracity refers to the quality or the trustworthiness of data. a. True b. False

a. True

Information is data that has been organized and processed. a. True b. False

a. True

It is possible that two or more attributes can form a single key. a. True b. False

a. True

In a Sales Table, the most likely primary key would be: a. sales invoice ID b. inventory item ID c. customer ID d. customer name

a. sales invoice ID

Which of the following is the use of a graphical representation of data to convey meaning to the stakeholders? a. Data storytelling b. Data visualization c. Data dashboard d. Diagnostic data

b. Data visualization

A data science team used a machine learning algorithm to study historical email subject lines of prior marketing campaigns by their open rates. The algorithm categorized subject lines and provided insights into top-performing key phrases. This is an example of what type of analytic? a. Descriptive b. Diagnostic c. Predictive d. Prescriptive

b. Diagnostic

In order to create a computer program that predicts customer demand in a restaurant, a data analyst tests to see if different sport seasons cause more customers to go out to eat. The data analyst computed which type of analytic? a. Descriptive b. Diagnostic c. Predictive d. Prescriptive

b. Diagnostic

What type of analytics is built on examination of the data and tries to answer the question 'why did this happen?" a. Descriptive analytics b. Diagnostic analytics c. Predictive analytics d. Prescriptive analytics

b. Diagnostic analytics

An AIS designer, who is very competent with information technology skills, will be successful in designing an information system regardless of his/her understanding of the organization that he/she is designing for. a. True b. False

b. False

An audit trail can only assist external auditors. a. True b. False

b. False

Data processing is comprised of four elements and can be represented by the acronym CRUD. The R in CRUD stands for Revise. a. True b. False

b. False

Information that is timely is free from error or bias. a. True b. False

b. False

The primary difference between the conceptual and external schema is that the external schema is an organization-wide view of the entire database. a. True b. False

b. False

Unstructured data is organized in some ways but is not fully organized to be inserted into relationship database. a. True b. False

b. False

Common source documents for the revenue cycle include all of the following except a. Sales order b. Receiving report c. Delivery ticket d. Credit memo

b. Receiving report

A foreign key imposes a specific kind of integrity to related tables. What is the name of this integrity? a. Schema b. Referential c. Independence d. Data e. None of the above

b. Referential

Which of the following is considered a disadvantage of an Enterprise Resource Planning (ERP) system? a. Data input is captured once b. Time required for implementation c. Customer relationship management d. Increased productivity

b. Time required for implementation

When the same, non-key, data element is stored multiple times in table it creates an anomaly known as the: a. Delete Anomaly. b. Update Anomaly. c. Insert Anomaly. d. None of the above.

b. Update Anomaly.

The data view that shows how the user or programmer conceptually organizes and understands the data is the: a. record layout view b. logical view c. physical view d. none of the above

b. logical view

Which of the following would be identified as a table? a. A customer's name b. Data about one customer c. All inventory records d. Data about one inventory item

c. All inventory records

Which of the following is not a problem have with interpreting data correctly: a. Mistaking correlation for causation b. Confirmation bias c. Data overload d. All the above are problems

c. Data overload

Which of the following is the best example of a prescriptive analytic? a. Evaluating whether billboards increase sales for a pharmaceutical company. b. Creating a model predicting employee absenteeism based on weather for a trucking company. c. Developing a model to predict audit risk that includes a recommendation for accepting audit clients based on the model outcomes. d. Evaluating the performance of airline on-time-arrivals to large and to small cities.

c. Developing a model to predict audit risk that includes a recommendation for accepting audit clients based on the model outcomes.

A company developed a dessert in their lab that involves a special freezing process. The company tested the production process using temperatures in the range of -50 to -30 Celsius. The company's freezing equipment on the production line is not functioning as well as expected, so it can only cool things to -10 Celsius. The data analysts believe this will still work to successfully produce the dessert based on their analysis of previous data. What problem are the data analysts ignoring in this example? a. Garbage in, garbage out b. Overfitting c. Extrapolating beyond the range d. Too much variance

c. Extrapolating beyond the range

Using colors, contrasts, call-outs, labeling, and any other technique that brings attention or emphasis to an item in a visualization presentation is called: a. Weighting b. Data ordering c. Highlighting d. Orientation

c. Highlighting

The collection of employee time sheets as a source document is part of which transaction cycle? a. Revenue cycle b. Production cycle c. Human resources cycle d. Expenditure cycle

c. Human resources cycle

A single or a few data points lying outside the normal values in a particular data set are called: a. Median data b. Mean data c. Outlier data d. Data overfitting

c. Outlier data

A bank manager created a model to forecast customer payoffs of loans. The bank manager likely computed what type of analytic? a. Descriptive b. Diagnostic c. Predictive d. Prescriptive

c. Predictive

Which of the following data analysis techniques is the most complex AND provides the most value added to an organization when performed properly? a. Descriptive b. Predictive c. Prescriptive d. Diagnostic e. None of the above

c. Prescriptive

A manager wants to report division products in a way that makes her division look better than they actually are. To do this, she uses a line chart that only shows data for the last 20 days and not the last 90 days as the last 20 days show an upward trend in production. The manager did not follow which ethical rule? a. Show representations of numbers proportional to the reported number (starting the y-axis at zero helps ensure this). b. In visualizations designed to depict trends, show time progressing from left to right on the x-axis. c. Present complete data given the context. d. None of the above.

c. Present complete data given the context.

Which of the following is NOT an element of data processing? a. Create b. Update c. Reconcile d. Delete

c. Reconcile

Choose the best answer, the creation of a "bot" is related to which of the following words? a. Dark data b. Data visualization c. Robotic process automation (RPA) d. The extract, transform, and load (ETL) process

c. Robotic process automation (RPA)

What type of data refers to data that is highly organized and fits into fixed fields? a. Unstructured data b. Semi-structured data c. Structured data d. Data marts

c. Structured data

Which of the following provides the low-level view of the database? a. Conceptual-level schema b. External-level schema c. The internal-level schema d. None of the above

c. The internal-level schema

The first step in transforming data is to: a. Standardize, structure, and clean the data b. Validate data quality and achievement of data requirements c. Understand the data and the desired outcome d. Document the transformation process

c. Understand the data and the desired outcome

The type of journal that records large numbers of repetitive transactions such as sales, cash receipts, and cash disbursements is a. a general journal b. a subsidiary journal c. a specialized journal d. a detailed journal

c. a specialized journal

The type of journal that records large numbers of repetitive transactions such as sales, cash receipts, and cash disbursements is a. a general journal. b. a subsidiary journal. c. a specialized journal. d. a detailed transaction journal.

c. a specialized journal.

A customer's name would be a: a. database b. table c. field d. record

c. field

When a non-null value for the primary key indicates that a specific object exists and can be identified by reference to its primary key value, it is referred to as a. the referential integrity rule. b. the relational database rule. c. the entity integrity rule. d. None of the above.

c. the entity integrity rule.

An audit trail consists of which of the following items? a. Sales invoice b. Sales Journal c. Accounts Receivable Ledger d. All of the above

d. All of the above

High-quality data visualizations follow which of the following important design presentation principles? a. Simplification b. Emphasis c. Ethical data presentation d. All of the above

d. All of the above

To understand predictive analytics better, which of the following steps should be considered? a. Select a targeted outcome b. Find and prepare the appropriate data c. Create and validate the model d. All of the above

d. All of the above

Accounting Information Systems (AIS) is most likely applicable to which area of accounting? a. Tax accounting b. Public Accounting c. Management consulting d. All of the above are applicable to AIS. e. None of the above.

d. All of the above are applicable to AIS.

Which of the following is a situation where data analytics is better than using human judgment to inform or to make a decision? a. There is not enough data for estimating an analytic. b. Making an ethical judgment. c. Data cannot measure a phenomenon well. d. All of the above are situations where human judgment is better than using data analytics.

d. All of the above are situations where human judgment is better than using data analytics.

Information can improve decision making in what way? a. It identifies situations requiring management action. b. It provides a basis for choosing among alternative actions. c. Provides valuable feedback that can be used to improve future decisions. d. All of the above.

d. All of the above.

Which of the following are requirements of a relational database? a. All nonkey (primary and foreign) attributes must describe a quality of the item identified by the primary key. b. Primary keys cannot be null or empty. c. Foreign keys (if not empty) must be a primary key in another table. d. All of the above. e. None of the above.

d. All of the above.

Examples of data visualization types best used for comparing how two numeric variables fluctuate with each other include: a. Heatmaps b. Scatterplots c. Line charts d. Answers a and b e. Answers a and c

d. Answers a and b

Trend evaluation charts showing changes over an ordered variable, most often a measurement over time, include: a. Line charts b. Area charts c. Bullet charts d. Answers a and b e. Answers a and c

d. Answers a and b

An entity is something about which information is stored. What is the term for the characteristics of interest that are stored about an entity of employee such as a pay rate or an address? a. Field b. File c. Record d. Attribute

d. Attribute

Which of the following is a major activity for the revenue cycle? a. Receive items b. Forecast production c. Record time spent on specific jobs d. Deliver or ship order

d. Deliver or ship order

A CEO wants to know the trends in her company's market share relative to her competitors. She asks an analyst to prepare analytics to show how the market share of each company in the industry has changed over the last 5 years. What type of analytic is the analyst going to prepare? a. Diagnostic b. Prescriptive c. Predictive d. Descriptive

d. Descriptive

Which of the following is not a technique described in the textbook for increasing visual weight? a. Color b. Size c. Complexity d. Highlighting e. Density

d. Highlighting

Which of the following does not influence the design of an Accounting Information System (AIS)? a. Organizational culture b. Information Technology c. Business strategy d. Legal environment

d. Legal environment

A company develops a computer program to replace stock analysts that makes stock purchasing recommendations based on financial statement data and social media information. This is an example of which type of analytic? a. Descriptive b. Diagnostic c. Predictive d. Prescriptive

d. Prescriptive

Which of the following cannot be blank (null)? a. Foreign key b. Secondary key c. Connecting key d. Primary key e. None of the above can be null. f. Two of the above cannot be null.

d. Primary key

Which of the following would be an activity associated with the human resources/payroll cycle? a. Deposit cash receipts b. Adjust customer account c. Pay for items d. Record time worked by employees

d. Record time worked by employees

Which of the following is not one of the SMART question criteria: a. Achievable b. Specific c. Timely d. Reliable

d. Reliable

Which of the following is not an advantage of an ERP system? a. Better access control b. Standardization of procedures and reports c. Improved monitoring capabilities d. Simplicity and reduced costs

d. Simplicity and reduced costs

Which of the following types of data is most likely to properly use delimiters and text qualifiers? a. Dark data b. Unstructured data c. Semi-structured data d. Structured data

d. Structured data

Which of the following is NOT a major business cycle? a. The production cycle b. The revenue cycle c. The financing cycle d. The cash receipts cycle e. The payroll cycle

d. The cash receipts cycle

How does the chart of accounts list general ledger accounts? a. Alphabetical order b. Chronological order c. Size order d. The order in which they appear in financial statements

d. The order in which they appear in financial statements

A visualization in a report is an area chart. If the people designing the viz use good practice, what is the likely purpose of this visualization? a. Comparison b. Correlation c. Distribution d. Trend Evaluation e. Part to Whole

d. Trend Evaluation

In an inventory table, the most likely non-key column(s) would be: a. item number b. color c. price d. b and c e. a and c

d. b and c

Which of the following is a major activity for the revenue cycle? a. receive items b. forecast production c. record time spent on specific jobs d. deliver or ship order

d. deliver or ship order

The scope of the data revolution includes which of the following four V's of big data? a. Volume b. Veracity c. Variety d. Velocity e. All of the above

e. All of the above

Examples of data visualization types best used for comparing data across categories or groups include: a. A bar chart b. A correlation chart c. A bullet chart d. Answers a and b e. Answers a and c

e. Answers a and c

What are the benefits associated with database technology? a. Data sharing b. Data integration c. Data independence d. Answers a and b only e. Answers a, b, and c

e. Answers a, b, and c

AIS adds value to an organization by: a. Improving efficiency. b. Sharing knowledge. c. Improving the internal control structure. d. Answers a and b only. e. Answers a, b, and c.

e. Answers a, b, and c.

Which of the following is NOT a characteristic of useful information? a. Relevant b. Verifiable c. Timely d. Accessible e. Cost-effective

e. Cost-effective

Which of the following graph types would be best to show correlation? a. Bullet chart b. Treemap c. Area chart d. Histogram e. None of the above

e. None of the above

Which of the following is NOT a common data coding technique discussed in the chapter? a. Mnemonic b. Group c. Sequence d. Block e. Sorted

e. Sorted

Which of the following are included in the ETL Process? a. Loading data b. Transforming data c. Examining data d. Extracting data e. a, b, and d only above.

e. a, b, and d only above.

Which of the following is NOT one of the five major business processes or transaction cycles? a. Expenditure b. Production c. Human Resource & Payroll d. Revenue e. Financing f. All of the above are major cycles.

f. All of the above are major cycles.