Accounting 310 Chapter 1

Customer Relationship Management is defined as: a. A system used to manage and nurture a firm's interactions with its current and potential customers. b. A system used to track a customer's past purchases c. A system used to connect a firm's suppliers with a firm's customers. d. A system used to advertise current items on sale to customers.

a system used to manage and nurture a firms interactions with its current and potential customers

Support activities in the value chain do not include: a. Firm Infrastructure. b. Human Resource Management. c. Procurement. d. Accounting and Finance.

Accounting and finance

Many hospitals and doctor's offices are beginning to digitize the medical records of their patients. This is an example of the ________ strategic role. a. Automate b. informate-up c. informate-down d. Transform

Automate

The IT strategic roles of AIS investments are classified as: a. Automate, Informate, Transform. b. Value creation, Value Destruction, Value Neutral. c. Digitize, Report, Transform. d. Automate, Digitize, Transport.

Automate, informate, transform

Which of the following systems would a company be most likely to employ for the primary purpose of generating additional sales revenue? a. MDBMS. b. CRM. c. SCM. d. OCR.

CRM

Which designation would be most appropriate for those professionals possessing IT audit, control and security skills? a. Certified Internal Auditor (CIA) b. Certified Public Accountant (CPA) c. Certified Information Technology Professional (CITP) d. Certified Information Systems Auditors (CISA)

Certified information systems auditors CISA

Which designation is for CPAs with a broad range of technology knowledge and experience? a. Certified Internal Auditor (CIA) b. Certified Public Accountant (CPA) c. Certified Information Technology Professional (CITP) d. Certified Information Systems Auditors (CISA)

Certified information technology professional CITP

The income statement line item most likely affected by an AIS investment in supply chain that would interface with suppliers would be: a. Revenues. b. Cost of Goods Sold. c. Selling, General and Administrative Expenses. d. Research and Development Expenses.

Cost of goods sold

One of the most important ways that ERPs benefit organizations and their business processes is: a. Current information is made available to all users involved in the activities and decisions associated with a company's business processes. b. Information is stored in many specialized, distributed databases that each serve separate business processes. c. Reducing the amount of time to complete business processes by eliminating all controls associated with the processes. Preventing external business partners from accessing the organization's data.

Current information is made available to all users involved in the activities and decisions associated with a company's business processes

Activity-based costing is an example of: a. Information overload. b. Mandatory information. c. Discretionary information. d. Enterprise System

Discretionary information

Which of the following is not a characteristic of useful information? a. Easy to understand b. Feedback value c. Timeliness d. Representational Faithfulness

Easy to understand

An example of an AIS that primarily addresses internal business processes includes: a. Supply chain software. b. Customer relationship management software. c. B2B transaction software. d. Enterprise systems.

Enterprise systems

The Sarbanes-Oxley Act of 2002 requires that a company's attest auditors be able to perform which of the following activities? a. Evaluate the internal controls in an AIS. b. Assess the value of a company's IT assets. c. Take over the company's AIS if necessary. d. Design and implement the controls used in the AIS.

Evaluate the internal control in an AIS

Which of the following are considered to be mandatory information required by a regulatory body? a. Financial reports for the Securities and Exchange Commission b. The amount of taxes saved by a merger c. The total dollar value of fireworks that are sold on July 4 d. The cost to build an all-new Starbucks restaurant in Abu Dhabi

Financial reports for the securities and exchange commission

The correct order of effects in the value chain are: a. Inbound Logistics Operations Service b. Inbound Logistics Outbound Logistics Marketing & Sales c. Inbound Logistics Operations Outbound Logistics d. Inbound Logistics Operations Service

Inbound logistics, operations, outbound logistics

A dental practice implemented an upgrade to its AIS that provides the dentists with daily and weekly patient and financial summaries. The practice's upgrade is an example of which IT strategic role? a. Automate. b. Informate - up. c. Transform d. Informate - down.

Informate-up

Which of the following is not a primary activity in the Value Chain? a. Outbound Logistics. b. Marketing. c. Inbound Logistics. d. Information Technology.

Information Technology

Which of the following most accurately describes IFAC's description of accounting and IT? a. IT is an important peripheral discipline to accounting. b. Accounting and IT are indistinguishable from one another. c. It is difficult to conceive of accounting independent from IT. d. Accounting is an important peripheral discipline to IT.

It is difficult to conceive of accounting independent from IT

Consider the non-profit organization Doctors without Borders (Médecins Sans Frontières), a Nobel Peace Prize winning organization that provides medical services in war zones and developing countries. For this type of organization, which of the following would likely be the best measure of business value? a. Fund balance (i.e., the net of revenues less expenditures). b. Lives saved. c. Donations raised. d. Volunteers deployed.

Lives saved

Discretionary information is most likely to be used in which of the following activities? a. Preparing required Environmental Protection Agency emissions reports. b. Filing a 10-K with the SEC. c. Management decision-making. d. Payroll tax reporting.

Management Decision Making

Which of the following is usually the primary objective for companies when creating mandatory information? a. The value of the information exceeds the cost to produce it. b. Minimize cost. c. Improve business decisions. d. Ensure proper controls over business processes.

Minimize cost

The primary transformation of data into information takes place in which of the following activities? 1. Output 2. Processing 3. Input 4. Storage

Processing

A supply chain system does not include information about: a. Current customers. b. Prospective customers. c. Availability of inventory. Current suppliers.

Prospective customers

Effective use of Supply Chain Management software is generally expected to provide all of the following benefits except: a. Reduced inventory carrying costs. b. Lower production costs. c. Reduced gross margins. d. Better communications with suppliers

Reduced gross margins

A supply chain: a. Refers to the supplies needed to build products. b. Refers to the flow of materials, information, payments and services. c. Is similar in function and purpose to the value chain. d. Does not apply to a service firm like an accounting firm.

Refers to the flow of materials, information, payments and services

A simple information system includes all but the following elements except: 1. Reporting 2. Storage 3. Input 4. Processing

Reporting

The income statement line item most likely affected by an AIS investment in enterprise systems would be: a. Revenues. b. Cost of Goods Sold. c. Selling, General and Administrative Expenses. d. Unearned Revenue.

Selling, general and administrative expenses

The Information Value Chain is defined as: a. The flow of materials, information, payments, and services. b. The use of computer technology to provide information about business activities to employees across the firm. c. The overall transformation of data from a business need to the ultimate decision. d. A centralized database that collects data from throughout the firm.

The overall transformation of data from a business need to the ultimate decision

One common way of measuring the effectiveness of the Supply Chain is through the fill rate. Which of the following best describes the fill rate? a. The percentage, in monetary value, of a supplier's order which is actually delivered to the organization. b. The number of items per hour that receiving employees can move from the receiving dock to the warehouse. c. The rate at which the stock in warehouse storage bins increases. The average amount of time it takes for the organization to fulfill customers' orders

The percentage in monetary value of a supplies order which is actually delivered to the organization

EBay uses information technology to sell goods on the internet. This would be an example of the ___________ strategic role. a. Informate - Down b. Transform c. Informate - up d. Automate

Transform

Investors reward companies most that announce IT initiatives with which type of strategic role? a. Automate. b. Informate - up. c. Transform. d. Informate - down.

Transform

According to a recent study, the transform IT strategic role is defined as systems that: a. Replace human labor in automating business processes. b. Provide information about business activities to all employees. c. Provide information about business activities to senior management. d. Fundamentally redefine business processes and relationships.

fundamentally redefine business processes and relationships

Accounting information systems: a. Are always computerized. b. Report only accounting information. c. Include records, processes and reports. d. Are for computer games.

include records, processes and reports

Bob's manager complains that Bob suffers from "Analysis Paralysis;" that is, he spends too much time reviewing endless reports and is reluctant to make decisions. Bob most likely suffers from ____________. a. Data gridlock. b. Discretionary information. c. Information overload. d. Data redundancy.

information overload

Business Value is defined as: a. The monetary value of a business. b. Items, events and interactions that determine the financial health and well-being of the firm. c. The cost to acquire a business by an outsider. d. The overall value of taking data and transforming it in to information needed for decision making.

items, events and interactions that determine the financial health and well-being of the firm

The role of accountants in accounting information systems include all except: a. User. b. Manager. c. Operator. d. Evaluator.

operator

According to a recent study, the informate-up IT strategic role is defined as systems that: a. Replace human labor in automating business processes. b. Provide information about business activities to all employees. c. Provide information about business activities to senior management. d. Fundamentally redefine business processes and relationships.

provide information about business activities to senior management

The income statement account most likely affected by an AIS investment in customer relationship management (CRM) would be: a. Revenues. b. Cost of Goods Sold. c. Selling, General and Administrative Expenses. d. Unearned Revenue.

revenues