AIS Chapter 1

Which of the following is a secondary activity?

Human Resoruces

Which of the following statements is (are) true? (Check all that apply.)

A well-designed AIS can add value to an organization by improving product quality, improving efficiency, and sharing knowledge. An AIS can help improve decision making by providing accurate and timely information, reducing uncertainty, and identifying situations requiring management action. By paying attention to its supply chain, a company can improve its performance by helping the others in the supply chain to improve their performance.

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?

Accesible

Which of the following are characteristics of useful information?

Accurate, Reputable

Which of the following statements is (are) true? (Check all that apply.)

All organizations need information in order to make effective decisions. A transaction is an agreement between two entities to exchange goods or services. In most cycles, companies repeatedly process a few related transactions, such as buying or selling goods.

A set of related activities that help accomplish a specific organizational goal is called a(n):

Business Process

Which of the following statements is (are) true? (Check all that apply.)

Businesses need to collect data about activities that take place, the resources affected by the activities, and the people who participate in the activity. A system is a set of two or more interrelated components that interact to achieve a goal. It is difficult to determine the value of information before it has been produced and utilized.

Receiving and storing inventory is an activity in which transaction cycle?

Expenditure

Which of the following is a primary activity?

Inbound Logistics

All of the following are ways an AIS can add value to an organization except:

Increasing product costs

Shipping newly manufactured phones to retailers and customers is an example of which type of primary activity?

Outbound Logistics

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?

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

________ information reduces uncertainty, improves decision making, or confirms or corrects prior expectations.

Relevant

In which business cycle are goods shipped to a customer?

Revenue Cycle

Which of the following is an example of a common activity in an AIS?

Selling goods and services and collecting cash.

In which transaction cycle would information for generating customer orders be most likely to pass between internal and external accounting information systems?

The Revenue Cycle

Which of the following is not a transaction cycle?

The general ledger cycle

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

Understand its business process

Which of the following is NOT a component of an AIS?

company culture

Information is best described as

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

Data is most useful when ______.

it is in machine-readable format.

Most organizations engage in a small number of a pair of activities that happen many times. These are called:

Give-Get Exchanges

Which of the following statements is (are) true? (Check all that apply.)

Information system designers use information technology to help decision makers more effectively filter and condense information. Benefits of information include reduced uncertainty, improved decisions, and improved ability to plan and schedule activities

Which of the following statements is (are) true? (Check all that apply.)

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

The value of information can best be determined by

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