ACCT341 Info Systems

Low-end accounting software is unlikely to include features such as sample charts of accounts and flexible reporting.

False

Mainstream spreadsheet and database software, such as Excel and Access, are often sufficient for analyzing the variety and volume presented by big data.

False

Most accountants believe that auditors do not need to concern themselves with IP addresses.

False

OLAP tools are uniquely positioned to analyzing big data because of their ad hoc flexibility and ability to handle very large data sets.

False

One major difference between financial accounting and managerial accounting is that financial accountants use dashboards while managerial accountants do not.

False

Organizations that spend more on legacy systems tend to experience a lower incidence of security breaches.

False

PRM stands for Personnel Relationship Management.

False

SAP R/3 is a good example of a middle-range AIS software program.

False

Social media is important to marketers, but only of passing interest to accountants.

False

Social networks do not pose privacy concerns

False

Software and consultant selection precedes formulation of the project team in an enterprise system implementation

False

Spam is annoying, but not a particularly costly or bothersome, to most businesses or government agencies.

False

Students majoring in AIS are unlikely to assume jobs in traditional accounting positions because they know too much.

False

Surveys suggest that less than half of all companies use social media for business purposes.

False

The SEC will not accept XBRL formatted data in electronically filed financial reports.

False

The Sarbanes-Oxley Act allows CPA firms to help clients acquire, install and use information systems and to also act as those clients' external auditor.

False

The World Wide Web is the text portion of the Internet

False

The acronym AIS stands for "Accounting Information Standards."

False

The acronym CRM stands for "computer resource management."

False

The acronym CRM stands for "computerized relationship module."

False

The acronym ERP stands for "electronic relations protocol."

False

The acronym ERP stands for "electronic reporting plan."

False

The acronym ERP stands for "enterprise reporting system."

False

The approach to purchasing accounting software is the same, regardless of software complexity or price range.

False

The availability of cloud services is available in accounting packages developed for medium and larger companies, but not available in packages developed for small businesses.

False

The best-of-breed approach to software selection is never a good idea

False

The four components of an ERP are its system configuration, a centralized database, application interfaces, and Internet protocols.

False

The heaviest demands on book publishing websites come in the weeks just prior to the start of a fall or spring semester.

False

The majority of data analysis currently performed in businesses today would be classified as predictive analytics.

False

The most common reason businesses outsource is to increase control over their data and data processing tasks.

False

The purpose of the assurance services of an accounting firm is to give a company's managers moral support when they are audited by the federal or state government.

False

The term "B2B" is Internet slang for "back to basics."

False

The term "blog" is an acronym that stands for "binary login."

False

The term "scalability" refers to the ability of an organization to scale down an accounting package for a small business.

False

There are limited career opportunities available for students who study both accounting and information systems.

False

There is no such thing as an ERP for a niche market because with ERPs, one size fits all.

False

Today's ERP systems are so good, and so straightforward, that most companies do not need the help of an expert when shopping for one.

False

Today's ERP systems provide integration among all of an organization's major business processes.

False

Traditional AISs generate unstructured data as part of processing transactions and business events

False

Variety is a term coined to describe the diversity of data that organizations create or collect.

False

Velocity is a term coined to describe the diversity of data that organizations create or collect

False

When we hear the term big data, typically we think of historical data stored in legacy systems.

False

XBRL is an acronym for "extensive business reports and liabilities."

False

XBRL is not related to XML

False

"CPA Trust Services" performed by a CPA provides assurance that a company engaged in electronic commerce has an information system that is secure

True

"Cost accounting" is a subset of managerial accounting

True

"Integrated accounting software" means software that includes the major software modules needed by a business—e.g., accounts payable, accounts receivable, inventory, general ledger, and payroll.

True

A "portal" refers to a gateway with which users gain access to an ERP system.

True

A Value-Added Reseller can help install and customize software, along with selling it.

True

A characteristic of mashups when used with ERPs is their ability to combine the internal data of an organization with external data such as interest rates.

True

A common source of business intelligence is the data in CRM systems

True

A company's audit trail is normally easier to follow under a manual data processing system compared to a computerized information processing system.

True

A consulting service provided by CPA firms is risk assessment.

True

A dashboard for an ERP displays current information about important operations of a companyfor example, sales for a given store.

True

A disadvantage of a virtual currency is the unwillingness of some to accept payments

True

A good audit trail within the financial accounting system should allow a manager or auditor to trace any source document back from a report to the original data entry.

True

A key success factor in BPR is the support of top management.

True

A major issue impacting e-business is the trade-off between accessibility and vulnerability

True

A major output of financial accounting is the preparation of financial statements such as an income statement.

True

A rule of thumb is that prewritten accounting packages can handle about 80% of a company's needs.

True

A set of XBRL tags identifies the data it contains as well as indicates how to display that data.

True

AISs often create information that is useful to non-accountants.

True

According to the AIS-at-Work article, Mar-Bal is a private company that makes plastic products.

True

An ABC inventory system refers to an "activity-based costing" system.

True

An advantage of XBRL is its ability to express semantic meaning—i.e., to express such relationships as "assets = liabilities + equity."

True

An advantage of XBRL is that it can save companies the cost of rekeying financial data from one computer application to another.

True

An advantage of a proxy server is the ability to store commonly-requested web pages in memory, thereby enabling it to respond quickly to internal user requests for them.

True

An e-business portal is a gateway to outside web sites and services.

True

An example of a corporate scandal that was mentioned in this chapter is the Enron case

True

An example of a financial report that would be prepared by a managerial accountant (instead of a financial accountant) is a budget report.

True

An example of a social networking site is FaceBook.

True

An example of an Internet domain address is www.Wiley.com.

True

An example of an intangible benefit of ERP systems is increased customer satisfaction.

True

An example of an integrated accounting software package are various versions of Quickbooks.

True

An extranet is a network that a business might establish with its trading partners.

True

An important drawback of an ERP system is that a failure can be catastrophic.

True

Another name for a URL is the term "domain address."

True

As used in Chapter 1, a dashboard is an up-to-the-minute graphic depiction of key performance measures.

True

Bitcom is an example of a virtual currency.

True

Businesses can use social networking sites to better understand the reactions to new products or services.

True

Change management activities are nice to include in an enterprise system implementation, but they aren't necessary

True

Cloud computing is a way of using business applications over the Internet.

True

Data encryption renders a text message unreadable during data transmission, even if intercepted.

True

Digital time stamping authenticates the time and sometimes the place a transmission or transaction occurred.

True

E-wallets store customer data to facilitate online purchases. They do not store dollars.

True

EDI automates the exchange of business information, particularly with respect to source documents.

True

ERP I systems are mostly back-office systems; ERP II systems are front-office information systems.

True

ETL involves extracting data from source data stores, harmonizing and cleansing the data into a consistent format, and populating a final data store.

True

Extended enterprise systems bring customers, suppliers, and other business partners together.

True

Facebook, Pinterest, Instagram and YouTube are all sources of social data

True

For most businesses, cloud computing is an example of outsourcing

True

Groupware is the technology that enables knowledge sharing and knowledge management among employees.

True

HTML tags describe how data and graphics should be presented by a web browser.

True

IDEA is a computer system used by the Securities and Exchange Commission (SEC).

True

IDEA uses XBRL-coded data of corporate financial statements

True

In a responsibility accounting system, managers trace unfavorable performance to the department or persons causing the inefficiencies.

True

MRP I and MRP II systems were forerunners to enterprise information systems.

True

Managerial accounting principally provides decision-making information to a company's internal managers.

True

Mashups are web pages that can combine the data from two or more sources.

True

Mechanical sources of data include sensors, wearable tech and ingestible e-pills.

True

Middle range accounting software programs can cost as much as $100,000 when you include the costs of customizing the software for a particular organization.

True

Mozy is a cloud provider of backup services.

True

One advantage of an ERP's centralized database is that data are consistent for one user to another, even if they work in different parts of the country

True

One important personal category of cloud computing for accountants is educational services

True

One major difference between financial accounting and managerial accounting is that financial accountants prepare financial statements for external investors while managerial accountants prepare financial statements for internal managers.

True

One of the challenges the accounting profession faces is that the tools accountants have traditionally used are ill-equipped for analyzing the types and quantity of data present in big data

True

One of the motivations for SAR is to identify money laundering activities.

True

One possible career for AIS majors is in the traditional area of financial or managerial accounting.

True

One possible reason to acquire a new accounting system is "pressure from competitors."

True

Operational sources of data include transaction processing systems, enterprise systems and legacy systems.

True

Predictive analytics use large data warehouses to help organizations improve performance by predicting future outcomes.

True

Prescriptive analytics are useful in answering What should be done?

True

Proxy servers can act as firewalls and can also limit employee Internet access to approved web addresses only.

True

Public key encryption requires the use of a pair of public/private encryption keys.

True

Sections of the Patriot Act mandate suspicious activity reporting.

True

Some possible career opportunities for AIS majors or minors include consulting positions, computerized auditing, or computer security positions.

True

Supply chain management concerns an organization's ability to interface with its customers and suppliers.

True

The "Four V's" of big data are velocity, veracity, volume and variety

True

The "systems configuration" of an ERP system refers to how the ERP system is deployed.

True

The Association to Advance Collegiate Schools of Business (AACSB-International) requires all separately accredited accounting programs to incorporate data analytics into their accounting curriculum.

True

The CISA is an acronym for a professional accounting certification.

True

The Department of Justice prosecutes identity theft under the ITADA Act of 1998.

True

The Internet Protocol address is a numerical translation of the text-based domain address

True

The Internet can be a great tool in learning about specialized accounting software options.

True

The Sarbanes-Oxley Act prohibits companies from using the same auditing firms for performing both auditing and management consulting services.

True

The acronym BPR stands for "business process reengineering."

True

The acronym ERP stands for "enterprise resource management."

True

The acronym SCM stands for "supply chain management."

True

The authors consider accountants to be "knowledge workers."

True

The benefits of an enterprise system may include reduced inventory investment and improved cash management.

True

The domain address of a web page is the equivalent of its universal resource locator (URL).

True

The majority of data analysis currently performed in businesses today would be classified as descriptive analytics.

True

The new standard is IPv6 that uses 128 bits for Internet protocol addresses.

True

The path that data follow in an AIS, for example from manual source document to completed output report, is called an audit trail.

True

The series of steps leading from data recorded in transaction records to the information reported on financial statements is called the accounting cycle

True

The starting point for an audit trail of a production department might be the purchase order for raw materials.

True

The starting point for an audit trail of a weekly payroll system might be an employee time card.

True

The term "Patriot" in the "Patriot Act of 2001 is an acronym for "providing appropriate tools required to intercept and obstruct terrorism."

True

The term "SaaS" is an acronym standing for "software as a service."

True

The term "extended ERP systems" refers to ERP systems that have been expanded to include "front office" capabilities.

True

The term "phishing" refers to the use of web pages or other means to trick viewers into revealing their passwords or other personal information.

True

The term "scalability" refers to the ability of an organization to ramp up processing volume, number of simultaneous users, and similar items as a company and its accounting transactions grows.

True

The term "spend management" refers to the ongoing process of limiting expenses to minimum levels.

True

The term information overload refers to providing too much data to management, often resulting in managers ignoring it.

True

Three types of access security are (1) what you have, (2) what you know, and (3) who you are.

True

Today's AIS is an enterprise-wide information system that focuses on interdepartmental business processes.

True

Transaction processing systems handle the collection, modification and retrieval of data associated with business events.

True

Two important features of enterprise systems are integration and a centralized database.

True

Two types of firewall policies are protection by (1) inclusion, and (2) exclusion.

True

Typically, BPR requires change management.

True

When a cloud service company hosts a client's website, this is an example of "platform as a service."

True

Within the traditional AIS, a sales order would not be considered an accounting transaction

True

Worldwide, the total the total number of phishing attacks is increasing.

True

XBRL allows users to extract and compare financial data from many different companies

True

XBRL is a business reporting language that is used to define interactive financial data.

True

XBRL is a type of XML.

True

An important advantage of ERP systems is that they are close to failure-proof.

False

An important advantage of cloud accounting includes the availability of backup services, multi-user access, but not upgrades to newer versions of the software

False

An important disadvantage of XBRL is that most accounting packages cannot read or write documents in XBRL format.

False

As a result of computerized information processing systems in many organizations today, the need for accountants in these organizations has significantly declined.

False

As used in chapter 1, the term "dashboard" refers to a quick and easy plan to install a computerized accounting system in an organization

False

As used in this chapter, the acronym SAR stands for "suspicious accounting reporting."

False

BASF is one of the world's largest telephone companies.

False

Because accountants are not normally computer programmers working within the information processing subsystem, it is unnecessary for them to understand the capabilities and limitations of computers

False

Because data formats are consistent across all data stores within an organization, the TRANFORM component of ETL requires very little effort.

False

Because most accounting software is standardized and straightforward, most packages can be purchased "off the shelf" from shopping mall sellers.

False

Digital signatures can never be as secure as written signatures.

False

EDI can only be used by private, for-profit businesses

False

EDI is an acronym standing for "electronic delayed interface."

False

Extended application interfaces are middleware that allow different software applications to share data and information

False

Firewalls are virtually unbreachable and offer assurance against all viruses

False

For all its exposure in the popular press media, identity theft affects a relatively small number of people and, in total, involves a small amount of losses per year.

False

ICANN is an acronym that stands for Internet Control and Network Numbers.

False

In order to be useful, raw accounting data must be processed by a computer.

False

In the "AIS at Work" case, Mar-Bal installed an integrated accounting package rather than an ERP system.

False

Integrated accounting software is mostly available to midsize and large-sized firms—not small businesses.

False

Integrated accounting software programs process accounting transactions only

False

Internet connectivity is a software feature that is available only in enterprise resource planning software.

False

Intranets do not use the same software as the Internet.

False

It is always best to extract all data from the source data store during ETL

False

It is best to view an AIS as an accounting system that must be computerized.

False

It is impossible for the prices used by the accounting department to be different from the prices stored on the company's website.

False

It is not possible to implement an enterprise information system in less than one year.

False

It is rarely external forces that cause an organization to need new AIS software.

False

It is relatively easy to determine the acquisition costs of an ERP system.

False

Big data is a catch-all term that term that primarily deals with voluminous amounts of structured data.

False

Business intelligence tools have no relationship with CRM.

False

Computers tend to make audit trails easier to follow because everything is computerized.

False

"Integrated accounting software" means software that can interface with other corporate software such as CRM software.

False

A business implementing an enterprise system should always conduct business process reengineering before putting in the new system

False

A dashboard is another name for the control panel of an ERP that allows users to determine, for example, how fast the system operates.

False

A data mart is larger and more comprehensive than a data warehouse.

False

AISs are only concerned with financial information.

False

Accountants are usually classified as "line workers" within business organizations.

False

Accounting information systems must be computerized to be effective.

False

Accounting rules do not allow for any flexibility in financial reporting by management

False

Accounting systems are useful for performing accounting tasks, but cannot be used for such security purposes as countering terrorism.

False

Activity-based costing systems focus on allocating overhead on the basis of direct labor hours used.

False

All electronic commerce takes place over the Internet.

False

An advantage of XBRL is that the tags have been completely standardized by the XBRL International Consortium and these standards are now fixed.

False

An advantage of an ERP system is that, once implemented, maintenance costs are negligible.

False

An advantage of computerized AISs is that they do not need to be programmed to catch simple input errors such as entering "4.0" instead of "40.0" for hours worked in a payroll application

False

An example of a social networking site is eBay.

False

An example of a value-added reseller (VAR) is a dealer who sells software but does not help with the installation, training and customization of that software for the customer.

False

Components of an ERP's architecture typically include: a) A centralized database and application interfaces b) Multiple databases c) A centralized database running on a mainframe computer d) A UNIX operating system

a) A centralized database and application interfaces

In the Internet address www.Name.com.X, the term X usually stands for: a) A country b) A city c) An abbreviation such as "gov" d) A transmission protocol

a) A country

Which of the following is not a sign that indicates the need for a new AIS? a) A new vendor has just announced an AIS package with several features your system does not have b) A slowdown in inventory turnover c) The owner is concerned about cash flows and profitability d) It takes longer to collect on receivables e) It takes longer to close the books

a) A new vendor has just announced an AIS package with several features your system does not have

Business process reengineering, as it relates to an enterprise system implementation: a) Always precedes the implementation b) May precede or be concurrent with implementation depending on the need to conform with industry best practices c) May precede or succeed an implementation depending on the need to conform with industry best practices d) Always succeeds the implementation

a) Always precedes the implementation

Retail sales on the Internet: a) Are growing rapidly b) Were growing at first, but are now declining c) Are not possible on the Internet d) Have only been achieved by major retailers such as Wal-Mart

a) Are growing rapidly

Companies such as Backblaze, DropBox, and Mozy are examples of companies that perform this type of cloud service: a) Backup services b) Payroll processing c) Janitorial services d) Tax preparation services e) Web hosting

a) Backup services

ERPs often require BPR because: a) Business processes must change to accommodate the system b) Employees cannot breathe on their own c) They are so expensive d) They require a centralized database

a) Business processes must change to accommodate the system

Which of these is not an advantage of cloud computing? a) Companies must update their own software, even if stored in the cloud b) Companies save money on hardware or software costs c) Gives access to distant vendors or software developers d) Organizations pay as they go

a) Companies must update their own software, even if stored in the cloud

The balanced scorecard provides an action plan for achieving competitive success by focusing management attention on critical success factors. Which one of the following is not one of the competitive success factors commonly focused upon in the balanced scorecard? a) Competitor business strategies b) Financial performance measures c) Internal business processes d) Employee innovation and learning

a) Competitor business strategies

A Big Four public accounting firm whose proprietary data analytics software utilizes artificial intelligence and natural language processing to read and interpret contracts is: a) Deloitte's Argus b) EY's Helix c) PwC's Halo d) KPMG's Clara

a) Deloitte's Argus

How are ERP systems and databases related? a) ERP systems are configured around a central database b) ERP systems eliminate the need for databases c) ERP systems and databases are not related d) ERP systems employ small, simple databases

a) ERP systems are configured around a central database

Considerations when performing an EXTRACT include all of the following except: a) Field format differences between various data stores b) Identifying which data to extract from source data stores c) Load and other negative infrastructure performance considerations d) Determining whether all data or a subset of the data are sufficient

a) Field format differences between various data stores

Which of the following is not listed as a "Leader" in Gartner's 2017 Magic Quadrant for Business Intelligence and Analytics Platforms? a) Google b) Microsoft c) Qlik d) Tableau

a) Google

These allow a user to access alternate web pages from an existing page: a) Hyperlinks b) Golf links c) html titles d) The XBRL tag

a) Hyperlinks

The certified information systems auditor certification is sponsored by: a) ISACA b) AICPA c) IMA d) none of these

a) ISACA

Because Internet software is so convenient to use, many companies also create the following for communications purposes: a) Intranets b) Extranets c) Firewalls d) Domain address

a) Intranets

A software package at the entry-level, such as Peachtree: a) Is likely to cost a few thousand dollars to implement fully b) Is scalable c) Is unlikely to incorporate Internet connectivity d) Is suitable for many businesses with less than $5 million in revenues e) Will include sample, customizable Charts of Accounts

a) Is likely to cost a few thousand dollars to implement fully

An interesting dimension of public key encryption is that: a) It actually requires two keys b) It only requires one key c) Everyone can decode a message written in it d) none of these

a) It actually requires two keys

Which of the following describes "cloud computing"? a) It is a is a way of using business applications over the Internet b) It is an internal business process over the organizations intranet c) It is an internal business process over the organizations extranet d) none of these

a) It is a is a way of using business applications over the Internet

Which of the following is not true regarding selecting a new AIS? a) It is usually cheaper to build a new AIS software program than to purchase it b) It is much easier today to learn about software options because of the Internet c) It is always a good idea to get expert help in choosing an ERP system d) Middle-range and high-end AIS software are not available in shopping malls

a) It is usually cheaper to build a new AIS software program than to purchase it

Which of the following is not an important feature of an enterprise system? a) Multiple databases b) Centralized database c) Functional integration d) Back-office functionality

a) Multiple databases

The letter "N" in VPN stands for: a) Network b) Notice c) Nanosecond d) Nothing

a) Network

The 80-20 rule, when applied to accounting software states that: a) On average, a business can satisfy about 80 percent of its accounting needs with packaged software b) On average, a business can satisfy about 20 percent of its accounting needs with packages software c) On average, about 80 percent of employees hate ERP systems d) On average, about 80 percent of customers hate ERP systems

a) On average, a business can satisfy about 80 percent of its accounting needs with packaged software

Which of the following is not true regarding user authentication? a) One level of authentication is who you know b) An information system may require more than one level of authentication for access c) One level of authentication is what you know d) An example of authentication would be use of a password

a) One level of authentication is who you know

Transaction processing systems would be categorized as a/n: a) Operational data source b) Mechanical data source c) Social data source d) Financial data source

a) Operational data source

Third party assurance: a) Provides online purchasers with some assurance regarding the security and privacy of a web site b) Is unlikely to concern auditors c) Is a service offered only by the American Institute of Certified Public Accountants d) Is a service offered only by the Better Business Bureau

a) Provides online purchasers with some assurance regarding the security and privacy of a web site

All of the following are benefits of ERP systems except: a) Reduced employee turnover b) Corporate-wide integration of data c) Reductions in data redundancy d) Better coordination of the different functional areas of a business

a) Reduced employee turnover

Utilizing tax preparation software from a cloud service provider is an example of: a) SaaS b) PaaS c) IDEA d) XML

a) SaaS

IDEA is used by the Securities and Exchange Commission (SEC) to: a) Store the financial data of public companies b) Collect lists of bankrupt companies c) Store the URL's of member firms d) Collect data on individuals victimized by identity theft hackers

a) Store the financial data of public companies

Which of these is most likely to be added to an ERP so that it becomes an extended enterprise information system? a) Supply chain management module b) Accounting module c) Human relations module d) Inventory control module e) all of the above

a) Supply chain management module

Training and change management activities: a) Take place just before implementation b) Are most effective when conducted throughout design, implementation, and postimplementation follow-up c) Include technical training only d) Do not include the design of user interfaces

a) Take place just before implementation

One of the defining attributes of big data is variety. Variety is defined as: a) The diversity of data that entities collect or create b) The extent to which data are objective and representative relative to the decision at hand c) The speed at which data are created d) The quantity and scale of data that entities collect or create

a) The diversity of data that entities collect or create

When we talk about "front-office" capabilities of today's ERP systems, we are referring to which of the following? a) The payroll functions b) The human resource functions c) The administrative functions d) none of the above

a) The payroll functions

Which of these is a concern regarding social networks? a) They pose privacy issues b) They are inconvenient for communicating with target audiences c) none of them identify the author of a particular comment d) none of these are social-networking concerns

a) They pose privacy issues

Another name for an Internet domain address is its: a) URL b) ISP c) email address d) IETF

a) URL

An advantage of E-wallets is that: a) Users do not need to re-enter personal information each time they make an online purchase b) Most E-wallet information is maintained on vendor file servers c) They ensure the completion of a purchase transaction over the Internet d) none of the above are advantages of E-wallets

a) Users do not need to re-enter personal information each time they make an online purchase

Another term for an accounting system accessed via the Internet is: a) Internet portal b) Online access c) Hosted solution d) BRP system

c) Hosted solution

One form of access security is determining authentic users by "what they know." Which of the following would be an example of such authentication? a) Verifying a password b) Biometric tests such as retina scans c) Requesting that the user provide an employee identification card d) Requiring the user to show a valid driver's license

a) Verifying a password

Which of these is a business reporting language often used in recording or transmitting accounting data? a) XBRL b) XFile c) ABC d) Accounting Live

a) XBRL

Information systems that collect data from sensors that are worn, embedded in devices, or ingested originate from the following broad source: a) mechanical b) electronic c) operational d) social

a) mechanical

This organization assigns the official registry of Internet domain names. a) TCP b) URL c) ICANN d) HTTP

c) ICANN

Which of these statements best describes the relationship between "AISs" and "countering terrorism?" a) These are completely independent items; there is no relationship b) AISs can help counter terrorism by providing SAR evidence c) AISs can help by denying financial aid to terrorist groups d) AISs can help by identifying international embezzlers

b) AISs can help counter terrorism by providing SAR evidence

An example of an Internet service provider is: a) General Electric b) AOL c) PeachTree d) ISP e) none of these

b) AOL

Hadoop is: a) a distributed file system that is optimized for mobile platforms b) An open-source platform for storing large datasets c) An infrastructure that allows organizations to outsources their databases to cloud service providers d) A tool used by public accounting firms to read and interpret text in contracts

b) An open-source platform for storing large datasets

One form of access security is determining authentic users by "who they are." Which of the following is an example of such authentication? a) Verifying a password b) Biometric tests such as retina scans c) Requesting that the user provide his or her mother's maiden name d) Requiring the user to show a valid driver's license

b) Biometric tests such as retina scans

An example of a virtual currency is: a) Negotiable bonds b) Bitcoin c) A certificate of deposit d) The lettered stock of a company

b) Bitcoin

Which of the following is a group collaboration tool that allows anyone with a Web browser and some easy-to-use software to publish a personalized diary online? a) Electronic conferencing b) Blogs c) Firewalls d) e-mail

b) Blogs

Financial statements are ___ in nature. a) Predictive b) Descriptive c) Prescriptive d) Directive

b) Descriptive

The "X" in the term XBRL stands for: a) Extra b) Extensible c) X-rated d) Exante

b) Extensible

This language allows its users to create web pages on the Internet: a) HTTP b) HTML c) URL d) COBOL

b) HTML

Social networking sites such as Twitter or Facebook: a) Have only social uses, not commercial ones b) Have both social and commercial uses c) Have only commercial uses d) May have future commercial uses that have not been realized to date

b) Have both social and commercial uses

An example of business intelligence (BI) is to help managers: a) Identify the slowest-paying vendors b) Identify which of their customers are most profitable c) Avoid taxes d) Spy on their competitors

b) Identify which of their customers are most profitable

Which of the following is not a core function of data analytics software? a) Communicating insights b) Identifying data c) Processing data d) Enabling data collection

b) Identifying data

Which of these is not an advantage of XBRL? a) It often enables businesses to avoid rekeying data downloaded from corporate websites b) It constrains companies to particular formats, thus ensuring consistency c) It helps standardize the storage and therefore presentation of financial information d) all of these are advantages of XBRL

b) It constrains companies to particular formats, thus ensuring consistency

Which of the following best describes "predictive analytics"? a) It is a method auditors use to predict when managers might have a weak internal control system b) It is a technique that uses data stored in data warehouses to create systems that allow managers to use their data to make predictions about future outcomes c) It is a method used to prevent managers from overriding internal controls d) none of the above

b) It is a technique that uses data stored in data warehouses to create systems that allow managers to use their data to make predictions about future outcomes

A web page that uses graphs and other tools to visually display data from both an ERP system and from external sources is also called a: a) Portal b) Mashup c) Mixup d) Frameup

b) Mashup

One advantage of XBRL tags is that: a) They always contain links to other web pages b) Optional entries allow users to specify units of currency, such as Euros c) They are now fixed standards d) They cannot be used by hackers

b) Optional entries allow users to specify units of currency, such as Euros

The term "click fraud" refers to: a) Overcharging clients when they view a website b) Overcharging companies for phantom clicks on an advertising link c) Misleading users into clicking on links to web sites selling illegal goods or services d) none of these refers to click fraud

b) Overcharging companies for phantom clicks on an advertising link

The P in the acronym KPI stands for: a) Processing b) Performance c) Planning d) Personnel e) none of these

b) Performance

The letter "P" in the acronym "ERP" stands for: a) Production b) Planning c) Project d) none of these

b) Planning

Blazer Communications, a digital content provider, is experiencing intense competition from a number of new entrants into their marketspace. In an effort to determine which customer are at risk of not renewing their contract, the CFO has asked the comptroller to perform an analysis to identify vulnerable customers based on past payment history, renewal patterns, and the like. This type of analysis would be characterized as: a) Prescriptive b) Predictive c) Descriptive d) Directive

b) Predictive

The "S" in the acronym "AIS" stands for: a) Standard b) System c) Symbol d) none of these

b) System

Resolving issues related to harmonizing field formats and data duplication would be addressed in which phase of the ETL process? a) EXTRACT b) TRANSFORM c) LOAD d) These issues would be considerations during all phases of ETL

b) TRANSFORM

Within the context of accounting packages for small businesses, the term "scalability" refers to: a) The weight of the package b) The ability of the system to grow with a business c) The ability to measure the benefits of the system in monetary terms d) none of these

b) The ability of the system to grow with a business

Which of these is not an acronym normally associated with cloud computing? a) SaaS b) PaaS c) IDEA d) all of these are cloud computing acronyms

c) IDEA

All of the following are advantages of cloud computing except: a) The client only pays for resources that it actually uses b) The client gains additional control over its data c) The provider, not the client, handles changes in processing volume d) all of these are advantages of cloud computing

b) The client gains additional control over its data

One of the defining attributes of big data is veracity. Veracity is defined as: a) The diversity of data that entities collect or create b) The extent to which data are objective and representative relative to the decision at hand c) The speed at which data are created d) The quantity and scale of data that entities collect or create

b) The extent to which data are objective and representative relative to the decision at hand

Which of the following captures the same idea as the term "Garbage In Garbage Out?" a) Too much information is the same as garbage b) The quality of computer output is determined by the quality of the input c) Great investments lead to great returns d) Too many cooks spoil the broth

b) The quality of computer output is determined by the quality of the input

Which of these is likely to be the best source for acquiring accounting software for a medium-sized company? a) Shopping mall store b) Value-added reseller (VAR) c) ERP consultant d) BPR consultant

b) Value-added reseller (VAR)

Which of these is the official website of the XBRL International Consortium? a) www.xbrl.com b) www.xbrl.org c) www.xbrl.gov d) www.xbrlic.com

b) www.xbrl.org

Which of these describes large businesses such as Amazon selling goods to individuals? a. B2B b. B2C c. C2C d. C2B

b. B2C

Which of these is not an example of a cloud service provider? a) A company that performs backup services over the Internet b) A company that performs payroll processing over the Internet c) A company that provides janitorial services d) all of these are examples of cloud service providers

c) A company that provides janitorial services

The term key in the context of data encryption refers to: a) A physical key similar to a house key b) A logical key similar to the primary key of a data file c) A mathematical function used for encryption purposes d) A computer function key that can be found on keyboards

c) A mathematical function used for encryption purposes

Which of the following best describes a data warehouse? a) A repository of historical information from one accounting application b) A repository of historical information from a set of accounting applications c) A repository of information from a wide range of services—some not accounting —stored within a company d) A repository of information from many businesses in the same industry

c) A repository of information from a wide range of services—some not accounting —stored within a company

Extended ERP systems are ones that: a) Can process higher volumes of transactions b) Customers can access and use as though they were employees c) Can perform such front-office tasks as working with customers d) Were due for retirement, but whose life has been extended

c) Can perform such front-office tasks as working with customers

The database of an ERP system is best described as: a) Limited b) Bolt-on c) Centralized d) Distributed

c) Centralized

A hosted (cloud) ERP system is an example of which component of an ERP? a) Internet portal b) Bolt-on component c) Configuration d) Database

c) Configuration

A trend in low- and mid-level accounting software is: a) Most sellers now come from China b) Decreasing prices for packages c) Consolidation of vendors d) The availability of fewer product lines, per vendor e) Their disappearance, because ERP systems are replacing them

c) Consolidation of vendors

In recent years, the most common complaint related to identify theft is: a) Alteration of personal information b) Imbalances in financial statements c) Credit card fraud d) Deletions of the personal information maintained by banks and insurance companies

c) Credit card fraud

The purpose of a company firewall is to: a) Guard against spoofing b) Assist the IETF c) Deny computer hackers access to sensitive data d) all of the above

c) Deny computer hackers access to sensitive data

A division manager is interested in identifying which products are most profitable. She has requested the accounting department to pull together a report that breaks out product sales by profit margin, region and product category. This type of analysis would be characterized as: a) Prescriptive b) Predictive c) Descriptive d) Directive

c) Descriptive

The acronym ERP stands for: a) Electronic relative payment b) Electronic relational planning c) Enterprise resource planning d) Planning for enterprise resources

c) Enterprise resource planning

As used in the chapter, the term "knowledge workers": a) Are blue collar workers in non-managerial positions b) Are the same as delivery clerks c) Include most accountants d) Does not include most accountants

c) Include most accountants

Managerial accounting principally provides information to: a) Stockholders b) Government regulators (e.g., SEC, Federal bank examiners) c) Internal company management d) Potential creditors

c) Internal company management

A digital signature: a) Is the same as a hand-written signature b) Is a bitmapped representation of a hand-written signature c) Is encrypted data that authenticates a transmitted message d) none of these

c) Is encrypted data that authenticates a transmitted message

An important characteristic of E-wallets is: a) It is exactly the same as regular cash b) It is the same as EDI c) It contains the identity of the user d) Users must also supply a credit card number when using it

c) It contains the identity of the user

Which of these best describes a firm's use of social media for monitoring employees? a) It is illegal b) It is legal but rarely done c) It enables companies to identify employees with undesirable traits d) It is a required practice that is required by most worker unions

c) It enables companies to identify employees with undesirable traits

A virtual currency is money that: a) Doesn't actually exist b) Cannot actually be purchased by anyone who is not authorized to buy it c) Operates as a medium of exchange despite the fact that no company or country stands behind it d) No one has ever seen, but that Internet junkies believe exists

c) Operates as a medium of exchange despite the fact that no company or country stands behind it

Bernard Madoff is most closely associated with which of the following terms? a) The father of activity-based costing systems b) SAR c) Ponzi scheme d) Sarbanes-Oxley Act of 2002 e) Key sponsor of the Patriot Act

c) Ponzi scheme

The term "spoofing" refers to: a) Computer hijacking b) Kidding c) Posing as a legitimate computer user d) Distributing junk mail

c) Posing as a legitimate computer user

An effective data visualization: a) Provides an unfiltered view of the data b) Only provides facts c) Presents analysis results in a meaningful and informative format d) Is historical in nature

c) Presents analysis results in a meaningful and informative format

Which of the following is true about the terms "data" and "information" within the context of Chapter 1? a) These terms are exactly the same b) These terms are exact opposites c) Processed "data" becomes "information" d) none of these

c) Processed "data" becomes "information"

The letter "p" in the acronym http stands for: a) Page b) Provider c) Protocol d) Parity

c) Protocol

Which of these is not a risk or cost normally associated with an ERP system? a) Costs of internal staff time and effort b) Increased training of staff and users c) Reduced IT costs d) Potential for massive failure

c) Reduced IT costs

The term data encryption refers to: a) Storing data in safe places called "crypts" b) Transforming data into secret codes c) Scrambling data systematically d) none of these

c) Scrambling data systematically

Many accountants feel that the most important part of the Sarbanes-Oxley Act is: a) Its anti-terrorist provisions b) Its provisions requiring the reporting of suspicious activities c) Section 404 on internal controls d) Section 505 on money laundering

c) Section 404 on internal controls

What is the main reason why companies prefer VANs to the Internet for implementing EDI? a) Cost - VANs are cheaper than the Internet b) Speed - VANs are faster than the Internet c) Security - VANs are thought to be more secure d) Convenience - VANs are everywhere

c) Security - VANs are thought to be more secure

Given the tools and training that accountants currently possess, which of the following sources of data presents the most challenges with respect to data manipulation and analysis? a) Operational sources b) Mechanical sources c) Social sources d) All are equally challenging

c) Social sources

What has been the effect on accountants in those organizations which have computerized their data processing functions? a) The need for accountants has disappeared b) The accountants have become "pure" bookkeepers c) The accountants have become involved in more decision-making activities d) The accountants' decision-making activities have drastically declined

c) The accountants have become involved in more decision-making activities

Which of these best describes the current state of XBRL? a) It now lacks standards, but the hope is that we will get some soon b) The language is completely standardized c) The language is dynamic and standards are still being developed d) The language now awaits official sanction by the United Nations before being released for use

c) The language is dynamic and standards are still being developed

The word "integrated" in the term "integrated accounting software" means: a) The software is color blind b) The software can interface with non-accounting software such as spreadsheets. c) The software combines several accounting functions in one package. d) all of these are terms of integrated accounting software

c) The software combines several accounting functions in one package.

One of the defining attributes of big data is velocity. Velocity is defined as: a) The diversity of data that entities collect or create b) The extent to which data are objective and representative relative to the decision at hand c) The speed at which data are created d) The quantity and scale of data that entities collect or create

c) The speed at which data are created

All of these are advantages of a virtual currency except: a) The ability of a company to do more business if they accept the currency b) No need to pay credit-card charges or large clearing house fees c) The support of the issuer's central bank in the event of default d) all of these are advantages of a virtual currency

c) The support of the issuer's central bank in the event of default

According to the textbook, which of the following statements is true about identity theft? a) Most personal identities are stolen by dumpster diving b) There is little individuals can do to protect themselves from identify theft; this is a corporate problem c) There is much that individuals can do to protect themselves d) Accountants are more vulnerable to identity theft than non-accountants

c) There is much that individuals can do to protect themselves

Which of the following is not a component of the balanced scorecard? a) Customer knowledge b) Internal business processes c) Transaction processing d) Financial performance

c) Transaction processing

Historically, financial data used in one application was not easily transferable to other applications. However, the problem was fixed with which one of the following? a) XMP b) ERP c) XBRL d) XMLP

c) XBRL

This company is one of the largest "auction houses" on the web: a) Wal-Mart b) Sears, Roebuck c) eBay d) Forester

c) eBay

Information systems that collect data regarding the business events of entity and support its day-to-day business requirements originate from the following broad source: a) mechanical b) electronic c) operational d) social

c) operational

An example of a URL is: a) .gov b) 100.100.100.100 c) www.wiley.com d) Title

c) www.wiley.com

The company AirBnB is an example of: a. B2B b. B2C c. C2C d. C2B

c. C2C

A proxy server is: a) A type of computer network often used by companies with many employees b) An alternate for a company mainframe computer c) A substitute for a good waiter at a restaurant d) A computer dedicated to Internet access and transfers

d) A computer dedicated to Internet access and transfers

Most AISs perform all of these functions except: a) Collect raw accounting data b) Store accounting data for future uses c) Process data into useful information d) AISs perform all of these functions

d) AISs perform all of these functions

The process by which a financial transaction is recorded so that its flow through the system can be followed is called: a) Financial shadowing b) Managerial trace technique c) Concatenation d) An audit trail

d) An audit trail

The "A" in the term IDEA (used by the SEC) stands for: a) Accounting b) Association c) Addition d) Applications e) Access

d) Applications

All of the following are examples of EDI "documents" except: a) Purchase orders b) Sales invoices c) Customs documents d) Bar codes

d) Bar codes

Which of the following is not true regarding customer relationship management (CRM) systems? a) CRM is actually a set of multiple applications b) CRM can help managers better understand customer purchasing behavior c) CRM requires the collection of customer demographic data d) Business intelligence tools can enhance CRM

d) Business intelligence tools can enhance CRM

Within the context of e-commerce, the acronym B2B stands for: a) Back to basics b) Baltimore or bust c) A non-existent public broadcasting system d) Business to business

d) Business to business

The designation for a licensed information systems audit professional is: a) CPA b) CMA c) CIA d) CISA

d) CISA

Which of these is a certification that accountants can earn that focuses on proficiency in information technology? a) CPA b) CMA c) CISA d) CITP

d) CITP

An example of an assurance service for a company engaged in electronic commerce is: a) XBRL b) Trust US c) CITP d) CPA Trust Services

d) CPA Trust Services

The Cougar Mountain Fund Suite is accounting software designed for: a) Small businesses with less than $1 million in revenues b) Manufacturing concerns with between $1 million and $5 million in revenues c) Retail furniture stores d) Charities

d) Charities

Data analyses performed by management accountants typically include all of the following except: a) Cost management and reporting b) Performance management and analysis c) Supporting management's planning and decision-making d) Compiling financial statements

d) Compiling financial statements

The output from a company's ERP system displays graphs and charts depicting sales by different regions of the country is often called a: a) Figure b) Portal c) Graphic design d) Dashboard

d) Dashboard

Enterprise-wide AISs: a) Almost never pay for themselves b) Do not include many more features than middle-range accounting software packages c) Are seldom used by multinational organizations d) Integrate an organization's financial functions with its other functional areas

d) Integrate an organization's financial functions with its other functional areas

A catch-all phrase that refers to aging applications and/or hardware that is outdated is: a) Enterprise Resource Planning systems b) Transaction processing systems c) Bookkeeping systems d) Legacy systems

d) Legacy systems

All of the following are normally associated with the Internet except: a) IP addresses b) URL addresses c) http d) MICR coding

d) MICR coding

Your car insurance company asks you to install a tracking device in your vehicle to record your driving habits. Data from this device is used to adjust your premium. The source of this data is: a) Operational b) Transformative c) Social d) Mechanical

d) Mechanical

Which of these is not an Internet search engine? a) Google b) Bing c) Yahoo d) MySpace

d) MySpace

All of the following are possible uses of AIS or accounting personnel that were discussed in the chapter except: a) Countering terrorism b) Foiling future accounting scandals c) Providing assurance services d) Performing monetary exchanges

d) Performing monetary exchanges

Tricking users into providing personal information such as a social security number on a web site is an example of: a) Spamming b) Spoofing c) Proxy serving d) Phishing

d) Phishing

What is the first step to be performed by most organizations in their accounting cycles? a) Recording business transactions in a journal b) Preparing a trial balance c) Recording closing entries in a journal d) Preparing transaction source documents e) none of the above

d) Preparing transaction source documents

One form of access security is determining authentic users by "what they have." Which of the following would be an example of such authentication? a) Verifying a password b) Biometric tests such as retina scans c) Requesting that the user provide his or her mother's maiden name d) Requiring the user to show a valid driver's license

d) Requiring the user to show a valid driver's license

On which of these should a business normally expend the most time and effort? a) Shopping for a spreadsheet program b) Shopping for an integrated accounting package c) Shopping for a bolt-on d) Shopping for an ERP system

d) Shopping for an ERP system

Which of the following software packages is not an example of a middle-range AIS? a) Great Plains Dynamics b) MAS 90 c) SAP d) Solomon

d) Solomon

All of the following are true about XBRL tags except: a) Tags are "extensible" b) Tags describe the data c) Tags tell how to display data d) Tags are now permanently standardized across industries

d) Tags are now permanently standardized across industries

Integrated accounting software programs generally include all of the following, except: a) Graphic reporting capabilities b) Internet connectivity c) One standardized chart of accounts d) The ability to handle multiple companies

d) The ability to handle multiple companies

One problem with accounting packages for small businesses is that: a) There are so few of them b) The absence of cloud computing capabilities in most of them c) Their inability to interface with internet shopping cart applications d) The cost of a package is just the beginning of "total costs"

d) The cost of a package is just the beginning of "total costs"

One of the defining attributes of big data is volume. Volume is defined as: a) The diversity of data that entities collect or create b) The extent to which data are objective and representative relative to the decision at hand c) The speed at which data are created d) The quantity and scale of data that entities collect or create

d) The quantity and scale of data that entities collect or create

Which of these is the best reason why a company should not implement an ERP system? a) The system you want is expensive b) The system you want is likely to be difficult to implement c) The system you want requires you to reengineer some business processes d) The system you want has expected costs that exceed its expected benefits

d) The system you want has expected costs that exceed its expected benefits

Which of the following is true regarding ERP costs? a) Enterprise systems tend to be less costly than integrated accounting software b) Enterprise systems are always less costly than best of breed software solutions c) Costs associated with reassigned employees have nothing to do with the true cost of an enterprise system d) There may be many costs that continue after systems implementation

d) There may be many costs that continue after systems implementation

All of the following are associated with data encryption except: a) Plaintext b) Cyphertext c) DES d) URL

d) URL

Which one of the following best describes the performance elements contained in most balanced scorecards? Financial Nonfinancial Performance Measures Performance Measures a) No No b) No Yes c) Yes No d) Yes Yes

d) Yes Yes

An advantage of an extranet is that: a) It can disseminate information corporate-wide b) It can be accessed by selected trading partners c) Users can employ common web browsers to access information in them d) all of the above

d) all of the above

Information systems auditors are: a) Auditors who are concerned with analyzing risks associated with computerized information systems b) Individuals who often work closely with financial auditors c) Auditors who have a lot of technical expertise related to information technology d) all of the above

d) all of the above

Successful implementation of ERP systems typically involves: a) Substantial planning b) Review of business processes c) Support from management d) all of the above

d) all of the above

Which of the following accounting functions has been automated by most companies' information processing subsystems? a) Posting to ledgers b) Recording journal entries c) Preparing trial balances d) all of the above

d) all of the above

Which of the following is considered an integrated software system? a) Material requirements planning systems (MRP I) b) Manufacturing resource planning systems (MRP II) c) Enterprise resource planning systems (ERP) d) all of the above

d) all of the above

All of the following are benefits of XBRL except: a) Companies can file financial information in one format, avoiding the errors that may come from reentering data multiple times b) The SEC accepts XBRL-format for electronic filing of financial statement reports c) XBRL permits the automatic and reliable exchange of financial information across many software formats and technologies, including the Internet d) all of the above are benefits of XBRL e) none of the above are benefits of XBRL

d) all of the above are benefits of XBRL

Which of the following is true about XBRL? a) It is a business application of XML b) It uses tags such as like HTML c) It is used by the SEC to collect and store financial information about companies d) all of the above are true about XBRL

d) all of the above are true about XBRL

Which of these would be considered suspicious activities under current SAR rules? a) Money laundering b) Bribing officials c) Transferring money to suspected terrorists d) all of these

d) all of these

Which of these is an accounting drawback of a virtual currency to a company using it? a) Appreciation in value is reportable for tax purposes b) Floating cost bases makes accounting for such assets more difficult c) No central bank guarantees its value d) all of these are drawbacks of virtual currencies

d) all of these are drawbacks of virtual currencies

When we talk about a Value-Added Reseller within the context of accounting and enterprise software, we are referring to an individual or business that: a) Usually assists small businesses to select entry-level, small business software b) Is a qualified installer of mid-level or high-end accounting software c) Makes special arrangements with software vendors and is able to train customers d) both (b) and (c) e) none of the above

d) both (b) and (c)

Which of these is correct about the terms "e-business" and "e-commerce." a) They are exact synonyms b) They are exact opposites c) e-business is a subset of e-commerce d) e-commerce is a subset of e-business

d) e-commerce is a subset of e-business

Information systems that collect large quantities of data from sources such as Facebook, Twitter and LinkedIn originate from the following broad source: a) mechanical b) electronic c) operational d) social

d) social

Which one of these acronyms does not make sense within the context of Chapter 2? a. B2B b. C2C c. B2C d. C2B

d. C2B

Within the context of Chapter 2, the term "C2C" means: a. Computer to computer b. Customer to computer c. Correction to correction d. Customer to customer

d. Customer to customer

Which of these is not a component of an IP address? a) A geographic region b) An organization number c) A computer group d) A specific computer number e) A specific user number

e) A specific user number

Which of these businesses is not required to report suspicious activities under current federal laws? a) Banks b) Money service organizations c) Commodity Traders d) Mutual fund dealers e) All of these businesses must engage in SAR

e) All of these businesses must engage in SAR

For performance reports to achieve their control objectives, they must: a) Include relevant information so that necessary action may be taken to accomplish organizational goals b) Be timely so that minimal time elapses between an activity's occurrence and the feedback reflecting the activity's efficient or inefficient performance c) Provide subsystem managers with suggestions as to how they can operate their subsystems more efficiently d) all of the above e) a and b only

e) a and b only

Which of the following business processes or functions is unlikely to be part of an enterprise system? a) Accounting/financing b) Human resources c) Manufacturing d) Sales or distribution e) all of the above are likely to be included in an enterprise system

e) all of the above are likely to be included in an enterprise system

All of these are business advantages of social media except: a) Enables businesses to increase organization recognition b) Enables businesses to evaluate customer reactions to new goods or services c) Enables accountants to communicate with one another on projects d) Enables businesses to manage strong reactions to firm missteps early e) all of these are business advantages of social media

e) all of these are business advantages of social media

Suspicious activity reporting: a) Only applies to banking transactions b) Is mandated by state, but not federal, regulations c) Is mostly concerned with embezzlement issues d) Requires CPAs to report questionable financial transactions to the U.S. Treasury Department. e) none of these

e) none of these