ACG 3401 - Ch. 1 SmartBook Q&A

In the information value chain presented in the book, what precedes the collection of data?

Business event

What would be the most appropriate designation for a professional who serves as an IT auditor?

Certified Information Systems Auditor (CISA)

What would be an appropriate designation for a CPA with a broad range of technology knowledge and experience?

Certified Information Technology Professional (CITP)

Which information system is most likely to impact the total revenue line item for a company?

Customer Relationship Management

Which software manages sales and market for current sales and customer service?

Customer Relationship Management (CRM) Software

_____ manages the interaction between the company and its customer, from initial lead to customer service after the sale.

Customer Relationship Management (CRM) Software

In the information value chain presented in the book, what precedes the receipt of information?

Data

Which system can significantly lower the cost of support processes included in sales, general and administrative expenses (SG&A)?

Enterprise System

True or false: To produce data, information is often processed and then combined with the appropriate context.

False Reason: Data is processed to produce information.

True or false: Management is required to produce discretionary information due to regulatory requirements.

False Reason: Discretionary information is produced only if it is useful to management and its benefits are greater than its costs.

True or false: Too much information is not possible.

False Reason: Information overload is the difficulty a person faces in understanding a problem and making a decision when faced due to too much information.

True or false: Supply chain is the term used to describe a firm's interactions with its current and potential clients.

False Reason: The supply chain refers to the flow of materials, information, payments, and services from raw materials suppliers to the final customer.

True or false: Data that simply collects the characteristics of different transactions has great value to an organization.

False Reason: Without context, data has little meaning and little value to an organization.

_____ would generally be considered the first primary activity in the value chain.

Inbound logistics

What is a primary activity of the value chain?

Inbound logistics, outbound logistics

What is the IT strategic role that uses technology to provide information about business activities to senior management or to employees across the firm?

Informate

What is the IT strategic role that uses technology to provide information to senior management?

Informate-up

The International Federation of Accountants suggests that accounting can hardly be viewed separately from which field?

Information Technology

______ is the difficulty a person faces in understanding a problem and making a decision when faced with too much information.

Information overload

What is a supporting activity of the value chain?

Procurement

What process refers to the flow of materials, information, payments and services from raw materials suppliers to the final customer?

Supply chain

What is a support activity of the value chain?

Technology

Accountants gather information relevant in solving business problems, create or extract that information, and then ______ the information to solve the problem.

analyze

Discretionary information should only be produced if the costs _________________________.

are less than the benefits of using that information

To be useful to decision makers, information from an AIS must be both relevant and __________.

be a faithful representation

As part of the faithful representation attribute of useful information, the information that contains all monetary transactions and doesn't miss any would be _____.

complete

Raw facts that describe the basic characteristics of an event would be defined as _________.

data

Accountants serving in a _______ capacity must have significant practical exposure to the key phases of systems analysis and design, including preparation of the feasibility analysis and data file design and documentation.

designer

As business analysts and information providers, accountants understand what data is needed to solve a problem and are, thus, in a unique position to serve as a __________ of accounting information systems.

designer

Activity-based costing would be an example of ____________.

discretionary information

Managerial accounting information is generally produced for internal information purposes and would be considered to be ____________.

discretionary information

Accounting Information Systems include _________________.

either manual or computerized systems

A(n) [blank] system is a centralized database that collects data from throughout the firm.

enterprise , ERP, or ES

A(n) [blank] system serves as a central depository for information from orders, customers, sales, inventory, and employees.

enterprise or ERP

An IT auditor serves as a(n) ____________ of the accounting information system.

evaluator

External auditors accessing their client's accounting information system would be serving the accountant's role in an accounting information system of a(n) _____.

evaluator

When auditors assess the internal controls in an AIS as part of the Sarbanes-Oxley Act, they are serving in their role as a(n) [blank] of the system.

evaluator, designer, or manager

Neutrality, or information without bias, would be considered a component of ________, which are critical for providing useful accounting information.

faithful representation

Accounting information systems provide decision makers _____________________.

financial and nonfinancial information

An attribute of faithful representation is the information is ______________.

free from error

Sales recorded in a cash register would be an example of a(n) ____________ activity in an information system.

input

Accountants are _____ of accounting information systems when they plan, coordinate, organize, staff, direct and lead those information systems.

manager

The four roles of accountants with respect to accounting information systems include user, designer, evaluator and _____.

manager

A corporate tax return would be considered to be ______________.

mandatory information

Information produced for investors, banks, the SEC and the IRS would be considered ______________.

mandatory information

To have faithful representation, the attributes of AIS information should be complete, ______, and free from error.

neutral

Attributes of faithful representation include complete, free from error and [blank].

neutrality or unbiased

An attribute of relevant information is: the information provides _________.

predictive value

An accounting information system is defined as a system that _____.

records, processes, summarizes and reports on business transactions

Information which helps users evaluate how past decisions actually worked would be an attribute of __________.

relevant information

Information which helps users predict what will happen in the future would be an attribute of __________.

relevant information

Recorded transactions that are saved in the cloud would be an example of a(n) ____________ activity in an information system.

storage

An attribute of relevant information is: the information is _________.

timely

An accounting information system is defined as a system that records, processes and reports on business [blank] (decisions/transactions).

transactions

When accountants input journal entries or calculate the cost of a product input, the accountants' role in an accounting information system is that of a _____.

user

Information is defined as data organized in a meaningful way to be useful to the [blank].

user, users, or organization

When a product passes through value-enhancing activities, the process is called the _______________.

value chain