SU 12

No debits or credits entered. ; Production of an ad hoc report is possible by simple queries.

Advantage of REA

Substantial computer storage and processing power is required. ; REA process training must be provided to accountants.

Disadvantage of REA

An accounting consultant providing taxation services. ; An employee installing engines on a plane. ;

REA agents

Rental of construction equipment. ; Sale of computer equipment.

REA events

A transaction processing system that uses single entry rather than double entry.

REA processing

The pizza delivered to customers by Hot Pizza restaurant ; The cash received from customers by selling furniture.

REA resources

Porter's five forces analysis is a. A framework for analyzing the level of competition within an industry and business strategy development. b. A process that systematically surveys and interprets relevant data to identify external opportunities and threats. c. A structured planning method that evaluates the strengths, weaknesses, opportunities, and threats of a project or business venture. d. An analysis of structured, semi-structured, and unstructured data that can be mined to reveal relationships and dependencies or predict outcomes and behaviors.

a. A framework for analyzing the level of competition within an industry and business strategy development.

Which of the following is the best example of the use of a decision support system (DSS)? a. A manager uses a personal-computer-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule. b. An auditor uses a generalized audit software package to retrieve several purchase orders for detailed vouching. c. A manager uses the query language feature of a database management system (DBMS) to compile a report showing customers whose average purchase exceeds $2,500. d. An auditor uses a personal-computer-based word processing software package to modify an internal control questionnaire for a specific audit engagement.

a. A manager uses a personal-computer-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule.

Information technology (IT) strategy is determined by a. Business needs. b. Individual department needs. c. The technology available. d. Competitors' strategies.

a. Business needs.

Real-time processing is most appropriate for which of the following bank transactions? a. Credit authorizations for consumer loan applicants. b. Biweekly payroll for bank employees. c. Purchases of fixed assets. d. Expiration of prepaid liability insurance.

a. Credit authorizations for consumer loan applicants.

Which of the following statements regarding decision support systems is generally true? a. Decision support systems facilitate solving relatively unstructured problems. b. A decision support system should be designed to provide specific answers and a predefined sequence of analysis. c. Decision support systems are usually developed most successfully by using a system development life cycle approach. d. A decision support system best supports very structured applications.

a. Decision support systems facilitate solving relatively unstructured problems.

Early decision models used with structured decisions, such as inventory reordering and production scheduling, emphasized finding the structure of the decision and programming as much of it as possible. More recent models have been developed to support unstructured decision processes. Models of the latter type are called a. Decision support systems. b. Management information systems. c. Systems analysis techniques. d. Rational decision models.

a. Decision support systems.

An organization does business in seven states. Its offices maintain regional databases on their own computers, which are linked to the server at headquarters. Regional office computers periodically relay summarized data to the home-office, where they are used to update a corporate database. This organization uses a system known as a. Distributed data processing. b. Parallel-systems method. c. Inventory method. d. Strategic-planning system.

a. Distributed data processing.

A system that has several computers connected for communication and data transmission purposes but also enables each computer to process its own data is known as a a. Distributed network. b. Centralized network. c. Outsourced network. d. Multidrop network.

a. Distributed network.

A large organization uses batch processing to process sales transactions. The system sorts sales transactions by customer number and performs edit checks when preparing invoices, processing payment information, recording journal entries, and updating customer account balances. Which of the following reports should be analyzed most frequently to ensure correct customer balances? a. Exception reports with control totals. b. A cash reconciliation report. c. An accounts receivable aging report. d. A report on the sales-price master file.

a. Exception reports with control totals.

Which of the following systems assists with nonroutine decisions, serves strategic levels of the organization, and helps answer questions regarding what a company's competitors are doing, as well as identifies new acquisitions that would protect the company from cyclical business swings? a. Executive support system. b. Decision support system. c. Transaction processing system. d. Management information system.

a. Executive support system.

The four major tasks that any system must perform are a. Input, transformation, output, and storage. b. Input, backup, output, and storage. c. Input, transformation, output, and maintenance. d. Input, transformation, storage, and feedback.

a. Input, transformation, output, and storage.

Management information systems represent a significant investment by most businesses. A primary concern of management is that the system a. Meet the business needs of the organization. b. Employ the latest technology. c. Might consume too much time and money during testing. d. Was designed using CASE (Computer-Aided Software Engineering) tools rather than traditional methods.

a. Meet the business needs of the organization.

Credit Card International developed a management reporting software package that enables members interactively to query a data warehouse and drill-down into transaction and trend information via various network setups. What type of management reporting system has Credit Card International developed? a. Online analytical processing system. b. Online transaction-processing system. c. Online executive information system. d. Online information storage system.

a. Online analytical processing system.

Which of the following is a critical success factor in data mining a large data store? a. Pattern recognition. b. Effective search engines. c. Image processing systems. d. Accurate universal resource locator (URL).

a. Pattern recognition.

Mill Co. uses a batch processing method to process its sales transactions. Data on Mill's sales transaction file are electronically sorted by customer number and are subjected to programmed edit checks in preparing its invoices, sales journals, and updated customer account balances. One of the direct outputs of the creation of this file most likely would be a a. Report showing exceptions and control totals. b. Printout of the updated inventory records. c. Report showing overdue accounts receivable. d. Printout of the sales price master file.

a. Report showing exceptions and control totals.

Which of the following is not an element of SWOT analysis? a. Strategies. b. Weaknesses. c. Opportunities. d. Threats.

a. Strategies.

An enterprise resource planning (ERP) system integrates the organization's computerized subsystems and may also provide links to external parties. An advantage of ERP is that a. The reengineering needed for its implementation should improve business processes. b. Customizing the software to suit the unique needs of the organization will facilitate upgrades. c. It can be installed by organizations of all sizes. d. The comprehensiveness of the system reduces resistance to change.

a. The reengineering needed for its implementation should improve business processes.

In traditional information systems, computer operators are generally responsible for backing up software and data files on a regular basis. In distributed or cooperative systems, ensuring that adequate backups are taken is the responsibility of a. User management. b. Systems programmers. c. Data entry clerks. d Data librarians.

a. User management.

A commonly used measure of the activity in a master file during a specified time period is a. Volatility. b. The index ratio. c. The frequency ratio. d. The volume ratio.

a. Volatility.

Processing becomes more efficient.

advantage of batch processing

Data and processes are better and more efficiently secured.

advantage of centralization

Processing becomes more consistent because it occurs at a set time in one location.

advantage of centralization

Remote locations get data without concern about traffic bottlenecks over networks.

advantage of decentralization

Remote locations have increased accountability for their data and processes.

advantage of decentralization

The system provides more support for decision making.

advantage of real time processing

User directly communicates with the computer and gets immediate feedback.

advantage of real time processing

Represents a vital component of monitoring security over an information system.

audit trail

A company updates the payroll master file at the end of the week. The payroll time cards are transported to the computer center for processing. The sequence of events followed by the computer center in updating its master file should be a. Converting to machine-readable form, batching records of transactions, validating input, updating the master. b. Batching records of transactions, converting to machine-readable form, validating input, updating the master. c. Validating input, batching records of transactions, converting to machine-readable form, updating the master. d. Batching records of transactions, validating input, converting to machine-readable form, updating the master.

b. Batching records of transactions, converting to machine-readable form, validating input, updating the master.

All of the following are correct statements regarding business information systems (IS) strategy and business information technology (IT) except a. Business IT strategy is focused on determining what technology and technological systems development are needed to accomplish the business IS strategy. b. Business IS strategy is focused on determining what IS must be provided to accomplish the goals of the business strategy. c. Business IT strategy concentrates on how to provide the information. d. Business IT strategy is focused on developing and explaining the information architecture that will provide the best return for the organization.

b. Business IS strategy is focused on determining what IS must be provided to accomplish the goals of the business strategy.

Batch and online processing modes a. Are mutually exclusive. b. Can be used in combination in a single application. c. Are outmoded means of processing data. d. Are forms of real-time processing.

b. Can be used in combination in a single application.

Which one of the following distinguishes a management information system from a transaction processing system? a. Maintenance of a structured database. b. Capability to provide data for decision-making support. c. Automation of routine transaction processing. d. Production of reports to support operations.

b. Capability to provide data for decision-making support.

A computer network has the ability to produce output on laser printers in departments. Users specify where their output is to be printed, but some users give the wrong destination code and tie up others' printers needlessly. The best approach for ensuring that printing occurs on the right device is to a. Permit departments to cancel printing that does not belong to one of its employees. b. Create destination defaults for printing based on each employee's departmental affiliation. c. Put all the printers in one location so that it is irrelevant which device does the printing. d. Train current users in how to specify the right designation codes for their printing.

b. Create destination defaults for printing based on each employee's departmental affiliation.

The purchasing department buys cleaning compound from four different companies. The computerized purchasing system uses a decision table to select a vendor based on continually changing costs, delivery dates, and past experience. This is an example of a(n) a. Base case system evaluation. b. Expert system. c. Parallel simulation. d. Chargeback system.

b. Expert system.

Which one of the following incorporates making the best decisions possible, using a logical approach by asking a series of questions, by using reasoning, and by allowing subjective inputs and outputs? a. Decision support systems. b. Expert systems. c. Multi-networking. d. Teleprocessing.

b. Expert systems.

Which of the following are the components of a business information system (BIS)? a. Hardware, software, data, system, people, procedures. b. Hardware, data, software, network, people. c. Input, output, processing, storage. d. Hardware, data, software, people, processing, storage.

b. Hardware, data, software, network, people.

The client's computer exception reporting system helps an auditor to conduct a more efficient audit because it a. Condenses data significantly. b. Highlights abnormal conditions. c. Decreases the need for tests of computer processing controls. d. Is an efficient computer output control.

b. Highlights abnormal conditions.

Which of the following can be discovered using a data-mining process? a. Data structure. b. Previously unknown information. c. Artificial intelligence. d. Standard query reporting.

b. Previously unknown information.

What type of computerized data processing system would be most appropriate for a company that is opening a new retail location? a. Batch processing. b. Real-time processing. c. Sequential-file processing. d. Direct-access processing.

b. Real-time processing.

A firm is considering two possible computer configurations. System I would have a mainframe computer tied to 16 time-sharing terminals. System II would have a minicomputer tied to 16 intelligent workstations. Which of these two systems could be termed a "distributed system"? a. System I only. b. System II only. c. Both Systems I and II. d. Neither System I nor II.

b. System II only.

Which of the following terms best describes a payroll system? a. Database management system (DBMS). b. Transaction processing system (TPS). c. Decision support system (DSS). d. Enterprise resource planning (ERP) system.

b. Transaction processing system (TPS).

Which of the following factors has the greatest impact on the design of an effective management reporting system? a. Number of transactions to be processed. b. Types of decisions to be made. c. Number of authorized users. d. Number of regulatory agencies to be satisfied.

b. Types of decisions to be made.

Subsystems in an ERP system are internal to the organization and are usually referred to as _____ .

back-office functions

An organization employs a ________, which is the combination of hardware, software, data, people, and procedures, to pursue its objectives.

business information system

Which one of the following statements about a management information system (MIS) is false? a. A MIS supports day-to-day operations by aggregating and formatting data about an organization's transactions. b. The information produced by a MIS is made available to middle management for use in controlling an organization's activities. c. A MIS is best suited to solve problems when uncertainty is great and reporting requirements are ill-defined. d. A MIS is often fed with input by a transaction processing system.

c. A MIS is best suited to solve problems when uncertainty is great and reporting requirements are ill-defined.

The relationship between online, real-time database systems and batch processing systems is that a. A firm will have only one processing mode because a single computer cannot do both. b. A firm will not use batch processing if it has a large computer. c. A firm may use both processing modes concurrently. d. A firm will always prefer an online, real-time processing system because batch processing is slow.

c. A firm may use both processing modes concurrently.

A bank implemented an expert system to help account representatives consolidate the bank's relationships with each customer. The expert system has a. A sequential control structure. b. Distinct input-output variables. c. A knowledge base. d. Passive data elements.

c. A knowledge base.

Which one of the following statements about an accounting information system (AIS) is false? a. AIS supports day-to-day operations by collecting and sorting data about an organization's transactions. b. The information produced by AIS is made available to all levels of management for use in planning and controlling an organization's activities. c. AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements. d. AIS is often referred to as a transaction processing system.

c. AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements.

Batch processing a. Is not used by most businesses because it reduces the audit trail. b. Allows users to inquire about groups of information contained in the system. c. Accumulates transaction records into groups for processing against the master file on a delayed basis. d. Can only be performed on a centralized basis.

c. Accumulates transaction records into groups for processing against the master file on a delayed basis.

A decision support system a. Improves management productivity by automating the decision-making process. b. Searches for unexpected relationships among data. c. Allows for certain aspects of a problem to be preprogrammed. d. Provides immediate information about an organization's critical success factors.

c. Allows for certain aspects of a problem to be preprogrammed.

How is an accounting information system (AIS) distinguished from a management information system (MIS)? a. An AIS deals with financial information; a MIS handles all other information. b. An AIS may be either manual or computer based; a MIS is computer based. c. An AIS is a subsystem within a MIS. d. An AIS is control oriented; a MIS is used exclusively for planning.

c. An AIS is a subsystem within a MIS.

All of the following are true statements about mission and vision statements except a. The vision statement is the organization's aspirations for what it intends to achieve over time. b. The mission statement expands on the vision statement by communicating the organization's goals and why it exists. c. An IS strategic plan incorporates the organization's vision and mission to ensure the strategy employed matches the needs of a single department. d. The goals outlined in the mission statement should provide guidance for the IT infrastructure to create a detailed strategic plan.

c. An IS strategic plan incorporates the organization's vision and mission to ensure the strategy employed matches the needs of a single department.

The current generation of ERP software (ERP II) may include an advanced planning and scheduling system that a. Determines the location of retail outlets. b. Connects the organization with other members of a joint venture. c. Controls the flow of a manufacturer's materials and components through the supply chain. d. Permits tracking of orders by customers.

c. Controls the flow of a manufacturer's materials and components through the supply chain.

Remote batch processing avoids the need for having a. Terminals at each user location. b. Printers at each user location. c. File updating at each user location. d. Input controls at each user location.

c. File updating at each user location.

In a traditional ERP system, the receipt of a customer order may result in 1. Customer tracking of the order's progress 2. Automatic replenishment of inventory by a supplier 3. Hiring or reassigning of employees 4. Automatic adjustment of output schedules a. I, II, and IV only. b. I and III only. c. III and IV only. d. I, II, III, and IV.

c. III and IV only.

The following are three computer files from the internal systems of a corporation: 1. A complete listing of the firm's property, plant, and equipment (PPE), including such information as date of purchase, historical cost, accumulated depreciation, estimated service life, etc. 2. The names and addresses of all vendors from whom the firm has purchased PPE in the past. 3. Journal entries affecting PPE. Which one of the following is an appropriate ranking of the three files in order from the most to the least volatile? a. I, II, III. b. III, II, I. c. III, I, II. d. Cannot be determined from the information given.

c. III, I, II.

An enterprise resource planning system is designed to a. Allow nonexperts to make decisions about a particular problem. b. Help with the decision-making process. c. Integrate data from all aspects of an organization's activities. d. Present executives with the information needed to make strategic plans.

c. Integrate data from all aspects of an organization's activities.

Which one of the following terms best describes a decision support system (DSS)? a. Management reporting system. b. Formalized system. c. Interactive system. d. Accounting information system.

c. Interactive system.

NEEM Co.'s monthly closing procedures include creating journal entries to account for cash collected at month end. The journal entries are captured by the system and converted into a special format from which the monthly financial report is generated and maintained in the database. This information system performs all of the major tasks except a. Transformation. b. Output. c. Maintenance. d. Storage.

c. Maintenance.

A file containing relatively long-term information used as a source of reference and periodically updated with detail is termed a a. Transaction file. b. Record layout. c. Master file. d. Dump.

c. Master file.

An insurance company that has adopted cooperative processing is planning to implement new standard software in all its local offices. The new software has a fast response time, is very user friendly, and was developed with extensive user involvement. The new software captures, consolidates, edits, validates, and finally transfers standardized transaction data to the headquarters server. Local managers, who were satisfied with existing locally written personal computer applications, opposed the new approach because they anticipated a. Increased workloads. b. Centralization of all processing tasks. c. More accountability. d. Less computer equipment.

c. More accountability.

Which of the following transaction processing modes provides the most accurate and complete information for decision making? a. Batch. b. Distributed. c. Online. d. Application.

c. Online.

Edwin Co., an insurance company, is deciding whether to develop its in-house systems or source from a cloud computing provider. Which of the following is not a reason to source from a cloud computing provider? a. Sales agents of Edwin Co. normally work off-site to solicit sales. b. Edwin Co. wants to reduce upfront costs. c. Program modifications are needed to satisfy customer needs. d. Edwin Co. has only two IT employees for IT infrastructure and system maintenance.

c. Program modifications are needed to satisfy customer needs.

There are many ways that realtime accounts receivable systems differ from batch accounts receivable systems. Which one of the following is not correct? a. Realtime Systems- Must use direct-access files Batch System- Can use simple sequential files b. Realtime Systems- Processing is done on demand Batch Systems- Processing is done during scheduled computer runs c. Realtime Systems- Processing choices are menu-driven Batch Systems- Processing is interactive d. Realtime Systems- Invoicing is performed as goods are shipped Batch Systems- Invoicing is performed through scheduled billing runs

c. Realtime Systems- Processing choices are menu-driven Batch Systems- Processing is interactive

Which of the following artificial intelligence information systems cannot learn from experience? a. Neural networks. b. Case-based reasoning systems. c. Rule-based expert systems. d. Intelligent agents.

c. Rule-based expert systems.

Distributed computing systems provide several advantages over a centralized computer. Which of the following is not an advantage of distributed systems? a. Communications costs are usually lower. b. Alternate processing locations are available in case one site's computer is not functioning. c. Security measures are easier to provide. d. Investment in hardware is smaller for each site than for a central site.

c. Security measures are easier to provide.

A review of the system activity log kept by the operating system would reveal which of the following problems in the processing of the inventory? a. In recording the transaction an inventory purchase was inadvertently recorded as an inventory usage. b. The dollar amount of an inventory purchase transaction had two of the digits transposed. c. The inventory master file scheduled to be updated every Friday was updated on Sunday. d. An inventory purchase was recorded twice on the transaction file to be used in updating the master file.

c. The inventory master file scheduled to be updated every Friday was updated on Sunday.

Misstatements in a batch computer system caused by incorrect programs or data may not be detected immediately because a. Errors in some transactions may cause rejection of other transactions in the batch. b. The identification of errors in input data typically is not part of the program. c. There are time delays in processing transactions in a batch system. d. The processing of transactions in a batch system is not uniform.

c. There are time delays in processing transactions in a batch system.

Compared to batch processing, real-time processing has which of the following advantages? a. Ease of auditing. b. Ease of implementation. c. Timeliness of information. d. Efficiency of processing.

c. Timeliness of information.

In a manual system, records of current activity are posted from a journal to a ledger. In a computer system, current records from a(n) a. Table file are updated to a transaction file. b. Index file are updated to a master file. c. Transaction file are updated to a master file. d. Master file are updated to a year-to-date file.

c. Transaction file are updated to a master file.

Enterprise resource planning (ERP) software packages, such as SAP ERP Central Component and Oracle e-Business Suite, are all-inclusive systems that attempt to provide entity-wide information. ERP systems provide advantages to an organization's auditors because they a. Have proven difficult for some firms to install. b. Typically require firms to reduce the division of duties and responsibilities found in traditional systems. c. Typically have built-in transaction logs and ability to produce a variety of diagnostic reports. d. Have been installed by smaller firms so, to date, few auditors have used them.

c. Typically have built-in transaction logs and ability to produce a variety of diagnostic reports.

In an effort to recognize improvement opportunities, a company is reviewing its in-house systems. The best reason for the company to consider switching to cloud computing as a solution is that it a. Is the best way to secure sensitive corporate information. b. Is accessible only from within the company on its intranet. c. Usually has lower upfront costs for equipment and maintenance. d. Provides better program modification options.

c. Usually has lower upfront costs for equipment and maintenance.

With respect to networks, organizations can use __________ to lower infrastructure investments and maintenance costs and increase mobility.

cloud computing

With respect to accounting, information technology (IT) refers to _______.

computer networks and the use of computer programs

Environmental scanning with the use of the Internet is a. A framework that analyzes the level of competition within an industry and business strategy development. b. An analysis of structured, semi-structured, and unstructured data that can be mined to reveal relationships and dependencies or to predict outcomes and behaviors. c. A structured planning method that evaluates the strengths, weaknesses, opportunities, and threats of a project or business venture. d. A process that systematically surveys and interprets relevant data to identify external opportunities and threats.

d. A process that systematically surveys and interprets relevant data to identify external opportunities and threats.

Which of the following best describes an enterprise resource planning (ERP) system? a. A subsystem of a management information system (MIS). b. A system concerned with transactions with external parties reflected in financial statements. c. A system that combines all of an organization's systems into one. d. A system that automates many back-office functions.

d. A system that automates many back-office functions.

The fixed assets and related depreciation of a company are currently tracked on a password-protected spreadsheet. The information technology governance committee is designing a new enterprise-wide system and needs to determine whether the current fixed asset process should be included because the current system seems to be working properly. What long-term solution should the committee recommend? a. Continuing to use the current spreadsheet process because there have been no issues in this area. b. Developing a new fixed-asset system to manage the assets and related depreciation. c. Purchasing a stand-alone fixed asset program for managing the assets and related depreciation. d. Adopting the fixed-asset module of the new system for integration.

d. Adopting the fixed-asset module of the new system for integration.

Which of the following is (are) a type(s) of business strategy(ies)? a. Corporate-level strategy. b. Business-level strategy. c. Functional-level strategy. d. All are types of strategies.

d. All are types of strategies.

Cloud computing can best be defined as a model that a. Streamlines business processes onto a well-secured and highly available in-house e-commerce platform to optimize customers' online experience. b. Is designed for rapid application deployment by making several virtual servers run on one physical host. c. Allows users to access network resources from remote locations through a virtual private network. d. Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure.

d. Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure.

Big data and analytics is a. A framework that analyzes the level of competition within an industry and business strategy development. b. A process that systematically surveys and interprets relevant data to identify external opportunities and threats. c. A structured planning method that evaluates strengths, weaknesses, opportunities, and threats of a project or business venture. d. An analysis of structured, semi-structured, and unstructured data that can be mined to reveal relationships and dependencies or to predict outcomes and behaviors.

d. An analysis of structured, semi-structured, and unstructured data that can be mined to reveal relationships and dependencies or to predict outcomes and behaviors.

A client would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application? a. A decision support system. b. An executive support system. c. An office automation system. d. An enterprise resource planning system.

d. An enterprise resource planning system.

Which group of characteristics best describes decision support systems? a. Programming models and interactive computer-based modeling processes. b. Analytical models, applications models, and interactive computer-based modeling processes. c. Expert systems, model-based information, electronic data interchange, and the decision maker's own insights and judgments. d. Analytical models, specialized databases, interactive computer-based modeling processes, and the decision maker's own insights and judgments.

d. Analytical models, specialized databases, interactive computer-based modeling processes, and the decision maker's own insights and judgments.

In business information systems, the term "stakeholder" is best described by which of the following? a. The management team responsible for the security of the documents and data stored on the computers or networks. b. Information technology personnel responsible for creating the documents and data stored on the computers or networks. c. Authorized users who are granted access rights to the documents and data stored on the computers or networks. d. Anyone in the organization who has a role in creating or using the documents and data stored on the computers or networks.

d. Anyone in the organization who has a role in creating or using the documents and data stored on the computers or networks.

At a remote computer center, management installed an automated scheduling system to load data files and execute programs at specific times during the day. The best approach for verifying that the scheduling system performs as intended is to a. Analyze job activity with a queuing model to determine workload characteristics. b. Simulate the resource usage and compare the results with actual results of operations. c. Use library management software to track changes to successive versions of applications programs. d. Audit job accounting data for file accesses and job initiation/termination messages.

d. Audit job accounting data for file accesses and job initiation/termination messages.

Which of the following features is classified as part of an expert system? a. Use of electronic mail to route and approve purchase requisitions. b. Automatic obligation of budget funds as soon as an order is issued. c. Issuance of purchase requisition notices as soon as the on-hand balance reaches the reorder point. d. Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and delivery time.

d. Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and delivery time.

A payroll system's master file is processed at night once every 2 weeks. There is relatively little file maintenance required. Which of the following is most likely to be the appropriate processing method under the circumstances? a. Parallel. b. Online, real-time. c. Network. d. Batch.

d. Batch.

A principal advantage of an ERP system is a. Program-data dependence. b. Data redundancy. c. Separate data updating for different functions. d. Centralization of data.

d. Centralization of data.

The system that permits the computers in a distributed network to share the use of another end-user's application program is a. Electronic data interchange. b. Interactive processing. c. Executive support system. d. Cooperative processing.

d. Cooperative processing.

Today, organizations are using personal computers for data presentation because personal computer use compared to mainframe use is more a. Controllable. b. Conducive to data integrity. c. Reliable. d. Cost effective.

d. Cost effective.

The current generation of ERP software (ERP II) has added front-office functions like a. Inventory control. b. Human resources. c. Purchasing. d. Customer service.

d. Customer service.

Which one of the following features is least likely to apply to the transaction processing cycle of an accounting information system? a. Data records are chiefly historical in nature. b. Most of the sources of data are an organization's recurring transactions. c. Data are usually financial in nature. d. Data records are the basis of predictive systems.

d. Data records are the basis of predictive systems.

Devices that are used only to perform sequential file processing will not permit a. The use of a database structure. b. Data to be edited in an offline mode. c. Batch processing to be initiated from a terminal. d. Data to be edited on a real-time basis.

d. Data to be edited on a real-time basis.

Information processing made possible by a network of computers dispersed throughout an organization is called a. Online processing. b. Interactive processing. c. Time sharing. d. Distributed data processing.

d. Distributed data processing.

Transaction processing systems frequently support the inquiry of online database users. Inquiry processing includes all of the following characteristics except that a. End users may write their own queries. b. It is dependent on the use of telecommunication networks and database management query languages. c. Responses are in a prespecified format displayed on the end user's terminal. d. End users are allowed to make changes to the records retrieved.

d. End users are allowed to make changes to the records retrieved.

A business information system is used to pursue an organization's objectives. Stakeholders of business information systems include 1 Data entry clerks 2 IT personnel 3 Customers 4 Vendors a. II only. b. I and II only. c. III and IV only. d. I, II, III, and IV.

d. I, II, III, and IV.

Advanced electronic point-of-sale (POS) systems allow instant capture and transmission of information for which purposes? 1. Instant updating of accounting records 2. Accumulation of marketing information 3. Tracking of information about specific customers 4. Facilitation of warehousing a. I and II only. b. III and IV only. c. I, II, and III only. d. I, II, III, and IV.

d. I, II, III, and IV.

Which of the following is true about strategic drivers that help determine the outcome of an organization's strategy? 1 New technologies create opportunities for improvement and competitive advantage. 2 Customer relationship management (CRM) is a term that refers to practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. 3 Information systems (IS) has become a strategic driver in most, if not all, organizations. a. I only. b. II only. c. III only. d. I, II, and III.

d. I, II, and III.

A totally centralized system a. Is inherently less secure than a decentralized one. b. Is one that performs batch processing for subscribers. c. Accumulates and groups transactions for processing on a delayed basis. d. Is typical of older systems.

d. Is typical of older systems.

An expert system a. Comprises a general ledger/financial reporting system and a management reporting system. b. Is a central database for transaction-level data. c. Solicits opinions from experts, summarizes the opinions, and feeds the summaries back to the experts. d. Is useful in solving unstructured problems.

d. Is useful in solving unstructured problems.

The finance department is evaluating two accounts receivable transaction processing systems. System A provides for batch processing twice weekly. System B provides online real-time processing. Which of the following requirements is most important in determining whether to adopt system A or system B? a. Accuracy of weekly accounts receivable aging report. b. Accuracy of monthly general ledger balance. c. Need for controls that validate transactions. d. Need to immediately answer customers' questions regarding account balances.

d. Need to immediately answer customers' questions regarding account balances.

A new purchasing system for just-in-time production requirements has been proposed. Users want access to current master file information at all times. To satisfy user needs, master file changes should be implemented with a. Periodic entry with subsequent batch processing. b. Periodic entry with immediate batch processing. c. Online entry with subsequent batch processing. d. Online entry with immediate processing.

d. Online entry with immediate processing.

The concept of timeliness of data availability is most relevant to a. Computerized systems. b. Payroll systems. c. Manual systems. d. Online systems.

d. Online systems.

What type of computer processing system is characterized by data that are assembled from more than one location and records that are updated immediately? a. Personal computer systems. b. Data compression systems. c. Batch processing systems. d. Online, real-time systems.

d. Online, real-time systems.

Business intelligence (BI) has all of the following characteristics except a. Focusing on strategic objectives. b. Giving immediate information about an organization's critical success factors. c. Displaying information in graphical format. d. Providing advice and answers to top management from a knowledge-based system.

d. Providing advice and answers to top management from a knowledge-based system.

An accounting information system (AIS) must include certain source documents in order to control purchasing and accounts payable. For a manufacturing organization, the best set of documents should include a. Purchase requisitions, purchase orders, inventory reports of goods needed, and vendor invoices. b. Purchase orders, receiving reports, and inventory reports of goods needed. c. Purchase orders, receiving reports, and vendor invoices. d. Purchase requisitions, purchase orders, receiving reports, and vendor invoices.

d. Purchase requisitions, purchase orders, receiving reports, and vendor invoices.

Compared to online real-time processing, batch processing has which of the following disadvantages? a. A greater level of control is necessary. b. Additional computing resources are required. c. Additional personnel are required. d. Stored data are current only after the update process.

d. Stored data are current only after the update process.

An interactive system environment is best characterized by a. Data files with records arranged sequentially. b. The processing of groups of data at regular intervals. c. Sorting the transaction file before processing. d. The processing of data immediately on input.

d. The processing of data immediately on input.

______ are information, not instructions, stored in hardware.

data

Data are entered into an information system in this process.

data capture

Errors caused by incorrect programs or data may not be detected immediately.

disadvantage of batch processing

The updating of the records will likely be delayed, even as long as overnight.

disadvantage of batch processing

Processing becomes more difficult to audit.

disadvantage of real time processing

Reports generated after daily processing to identify transactions or activities that lie outside predefined boundaries.

exception report

Major disadvantages of ERP include its ________, making implementation difficult and costly.

extent and complexity

An ERP system with _______ capability enables organizations to connect with external parties, such as customers, suppliers, or creditors.

front-office functions

Physical items, such as a monitor, disk drive, and keyboard, are all ________ components of a computer system.

hardware

The information produced in a traditional ERP system is generally intended for _______.

internal use by managers

A type of computer data file that may be fairly static or volatile.

master files

A type of computer data file that stores permanent information that is updated for the effects of transactions.

master files

A management information system is useful for ______ to run the business.

middle management

The Internet and intranet are both examples of a(n) ________.

network

To integrate enterprise-wide information systems, entities use an enterprise resource planning (ERP) system by creating ________ linked to all of an organization's applications.

one database

A method of data capture that involves entering single records and is used in point-of-sale transactions.

online entry method

Type of report required at regular intervals.

periodic routine report

Conversion of raw data into usable information performed by the combination of hardware and software in an IT system.

processing

Organizations usually use accounting information systems (AISs) to process ______ data relevant to managerial and financial accounting.

routine, highly structured

A traditional management information system is called a stovepipe system because it is a _________.

single-function system

Facebook and Twitter are both examples of __________.

social networking sites

A computer uses _______ to manipulate data and instruct computer hardware on what to do.

software

With respect to business information systems, a _________ has an interest in the system's effective and efficient functioning.

stakeholder

Major tasks performed by an information system includes input, output, processing, and __________.

storage

A type of computer data file that reflects ongoing business activity and accumulates transactions.

transaction files