Acct 4240 Ch 1
Which of the following is considered to be mandatory information required by a regulatory body? Multiple Choice The number of organic bananas that are sold at Whole Foods on July 28 10-Q submission to the Securities and Exchange Commission The cost to build an all-new Starbucks restaurant in Shenzhen, China The cost to produce a Samsung Galaxy
10-Q submission to the Securities and Exchange Commission
Which software manages sales and market for current sales and customer service? Customer Relationship Management Software Customer Revenue Management Software Customer Service Relationship Software
Customer Relationship Management Software
_____ manages the interaction between the company and its customer, from initial lead to customer service after the sale. Customer Revenue Management Software Customer Service Relationship Software Customer Relationship Management Software
Customer Relationship Management Software
What is a primary activity of the value chain? Firm Infrastructure Inbound logistics Information Technology
Inbound logistics
_____ would generally be considered the first primary activity in the value chain. Services Marketing Inbound logistics Operations
Inbound logistics
The correct order of events in the value chain is: Multiple Choice Inbound logistics ➞ Outbound logistics ➞ Marketing and Sales. Inbound logistics ➞ Operations ➞ Service. Inbound logistics ➞ Operations ➞ Outbound logistics. Inbound logistics ➞ Operations ➞ Marketing and Sales.
Inbound logistics ➞ Operations ➞ Outbound logistics.
What is a primary activity of the value chain? Outbound logistics Firm Infrastructure Accounting
Outbound logistics
What is a supporting activity of the value chain? Marketing Inbound Logistics Procurement Operations
Procurement
Customer relationship management software would be most likely to affect which income statement account? Multiple Choice Interest Expense Revenues Selling, General, and Administrative Expenses (SG&A) Cost of Goods Sold
Revenues
Accountants gather information relevant in solving business problems, create or extract that information, and then ______ the information to solve the problem. analyze manipulate present
analyze
As part of the faithful representation attribute of useful information, the information that contains all monetary transactions and doesn't miss any would be _____. accurate neutral complete
complete
An attribute of relevant information is: the information is _________. neutral confirmatory verifiable
confirmatory
Customer relationship management software does not include information about: Multiple Choice prospective customers. former customers. current customers. current employees.
current employees.
Accounting information systems provide decision makers _____________________. financial information only financial and nonfinancial information nonfinancial information only
financial and nonfinancial information
An attribute of faithful representation is the information is ______________. timeliness free from error helpfulness
free from error
Transform
fundamentally redefine business processes and relationships.
Sales recorded in a cash register would be an example of a(n) ____________ activity in an information system. input processing storage output
input
Accountants are _____ of accounting information systems when they plan, coordinate, organize, staff, direct and lead those information systems. manager evaluator designer
manager
The four roles of accountants with respect to accounting information systems include user, designer, evaluator and _____. planner manager auditor monitor
manager
A corporate tax return would be considered to be ______________. notional information optional information discretionary information mandatory information
mandatory information
Information produced for investors, banks, the SEC and the IRS would be considered ______________. mandatory information forecasted information discretionary information
mandatory information
To have faithful representation, the attributes of AIS information should be complete, ______, and free from error. neutral relevant reliable
neutral
An attribute of relevant information is: the information provides _________. predictive value representational faithfulness neutrality
predictive value
Informate-down
provide information about business activities to employees across the firm.
Informate-up
provide information about business activities to senior management.
An accounting information system is defined as a system that _____. summarizes and reports on business transactions records and summarizes business transactions records, processes, summarizes and reports on business transactions gathers, summarizes and reports on accounting transactions
records, processes, summarizes and reports on business transactions
A supply chain: Multiple Choice does not apply to a service firm like an accounting firm. supplies jewelry chains. is similar in function and purpose to the value chain. refers to the flow of materials, information, payments, and services.
refers to the flow of materials, information, payments, and services.
Information which helps users evaluate how past decisions actually worked would be an attribute of __________. reliable information relevant information neutral information
relevant information
Information which helps users predict what will happen in the future would be an attribute of __________. relevant information neutral information reliable information
relevant information
Automate
replace human labor in automating business processes
Recorded transactions that are saved in the cloud would be an example of a(n) ____________ activity in an information system. input storage processing output
storage
The software/system that helps make sure the retail firm doesn't have a stockout is: Multiple Choice supply chain management software. human resource systems. enterprise systems. customer relationship management software.
supply chain management software.
When accountants input journal entries or calculate the cost of a product input, the accountants' role in an accounting information system is that of a _____. evaluator user designer
user
When a product passes through value-enhancing activities, the process is called the _______________. supply chain value process value chain
value chain
Which of the following is a characteristic of relevance? Multiple Choice Materiality Verifiable Timeliness Cost to Generate
Materiality
What is a support activity of the value chain? Service Inbound logistics Outbound logistics Technology
Technology
What is the IT strategic role that replaces human labor with technology? Transform Informate-up Automate
Automate
What is the IT strategic role that fundamentally redefines business process and relationships through the use of technology? Automate Transform Informate
Transform
According to a recent study, the AIS strategic role that has the greatest impact on shareholder value is: Multiple Choice digitize. informate. automate. Transform.
Transform.
What designation would be most appropriate for those professionals possessing IT audit, control, and security skills? Multiple Choice Certified Information Systems Auditor (CISA) Certified Information Technology Professional (CITP) Certified Public Accountant (CPA) Certified Management Accountant (CMA)
Certified Information Systems Auditor (CISA)
What would be the most appropriate designation for a professional who serves as an IT auditor? Certified Information Systems Auditor (CISA) Certified Internal Auditor (CIA) Certified Information Technology Professional (CITP)
Certified Information Systems Auditor (CISA)
What would be an appropriate designation for a CPA with a broad range of technology knowledge and experience? Certified Information Systems Auditor (CISA) Certified Internal Auditor (CIA) Certified Public Accountant (CPA) Certified Information Technology Professional (CITP)
Certified Information Technology Professional (CITP)
Which system can significantly lower the cost of support processes included in sales, general and administrative expenses (SG&A)? Customer Relationship Management System Enterprise System
Enterprise System
An auditor testing internal controls would generally be considered to fill which role with respect to accounting information systems? Multiple Choice Evaluator Manager User Designer
Evaluator
True or false: Data that simply collects the characteristics of different transactions has great value to an organization.
False
True or false: Management is required to produce discretionary information due to regulatory requirements.
False
True or false: Supply chain is the term used to describe a firm's interactions with its current and potential clients.
False
True or false: To produce data, information is often processed and then combined with the appropriate context.
False
True or false: Too much information is not possible.
False
A(n) -------- system is a centralized database that collects data from throughout the firm.
Blank 1: enterprise , ERP, or ES
A(n) --------- system serves as a central depository for information from orders, customers, sales, inventory, and employees.
Blank 1: enterprise or ERP
When auditors assess the internal controls in an AIS as part of the Sarbanes-Oxley Act, they are serving in their role as a(n) -------- of the system.
Blank 1: evaluator, designer, or manager
Attributes of faithful representation include complete, free from error and ---------.
Blank 1: neutrality, unbiased, or neutral
Information is defined as data organized in a meaningful way to be useful to the -------
Blank 1: user, users, organization, or business
In the information value chain presented in the book, what precedes the collection of data? Information Business event
Business event
Which of these represents the proper transformation from data to decision according to the information value chain? Multiple Choice Data ➞ Knowledge ➞ Information ➞ Decision Data ➞ Information ➞ Knowledge ➞ Decision Data ➞ Analysis ➞ Information ➞ Decision Data ➞ Business Event ➞ Information ➞ Decision
Data ➞ Information ➞ Knowledge ➞ Decision
What is the IT strategic role that uses technology to provide information about business activities to senior management or to employees across the firm? Transform Automate Informate
Informate
What is the IT strategic role that uses technology to provide information to the line (entry-level) worker? Informate-down Informate-up
Informate-down
What is the IT strategic role that uses technology to provide information to senior management? Informate-down Informate-up
Informate-up
The International Federation of Accountants suggests that accounting can hardly be viewed separately from which field? Marketing Firm Management Information Technology
Information Technology
______ is the difficulty a person faces in understanding a problem and making a decision when faced with too much information. Information avalanche Information overload Information deficit
Information overload
The balance sheet account most likely affected by an AIS investment in supply chain management software would be: Multiple Choice unearned revenue. fixed assets. cash and cash equivalents. Inventories.
Inventories.
What process refers to the flow of materials, information, payments and services from raw materials suppliers to the final customer? Supply chain Production chain Value chain
Supply chain
Which information system is most likely to impact the total cost of goods sold line item? Supply chain management software Customer Relationship Management
Supply chain management software
Accounting information systems: report only financially related information. are an information system that records, processes, and reports on transactions to provide financial and nonfinancial information for decision making and control. are always computerized. require a CITP designation to understand.
are an information system that records, processes, and reports on transactions to provide financial and nonfinancial information for decision making and control.
Discretionary information should only be produced if the costs _________________________. outweigh the benefits of using that information of data collection are minimal are less than the benefits of using that information
are less than the benefits of using that information
AIS strategic roles of AIS investments are classified as: Multiple Choice automate, digitize, transport. digitize, report, transform. value creation, value destruction, value neutral. automate, informate, transform.
automate, informate, transform.
To be useful to decision makers, information from an AIS must be both relevant and __________. reliable be a faithful representation exhibit high quality
be a faithful representation
In the information value chain presented in the book, what precedes the receipt of information? Data Knowledge
data
Raw facts that describe the basic characteristics of an event would be defined as _________. decision data
data
An accounting information system is defined as a system that records, processes and reports on business
decisions/transactions
Accountants serving in a _______ capacity must have significant practical exposure to the key phases of systems analysis and design, including preparation of the feasibility analysis and data file design and documentation. designer user manager
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 systems. manager designer user
designer
Activity-based costing would be an example of ____________. mandatory information audited information discretionary information
discretionary information
Managerial accounting information is generally produced for internal information purposes and would be considered to be ____________. discretionary information mandatory information
discretionary information
Accounting Information Systems include _________________. either manual or computerized systems computerized systems exclusively manual systems exclusively
either manual or computerized systems
An IT auditor serves as a(n) ____________ of the accounting information system. evaluator designer manage
evaluator
External auditors accessing their client's accounting information system would be serving the accountant's role in an accounting information system of a(n) _____. manager evaluator designer user
evaluator
Customer Relationship Management systems would generally be considered to be an: Multiple Choice exterior business process. external business process. internal business process. interior business process.
external business process.
Information that is not designed to lead users to accept or reject any specific decision would be an attribute of __________. faithful representation relevant information financial information
faithful representation
Neutrality, or information without bias, would be considered a component of ________, which are critical for providing useful accounting information. reliability relevance faithful representation
faithful representation