BSAD265-AIS Exam 1 Study Questions

Data must be collected about three facets of each business activity. These facets are A.activity of interest, the resource(s), and the people who participate. B.activity of interest, the resource(s), and the process. C.the resource(s), the benefits, and the process. D.activity of interest, the process, and the people who participate.

A

A performance report about all approved vendors during the previous 12 months is information MOST needed in which business process? paying vendors acquiring inventory selling merchandise paying employees

B

Which of the following are characteristics of useful information? (Check all that apply.) A.Biased B.Accurate C.Reputable D.Encrypted

B, C

A DFD consists of the following four basic elements: data sources and destinations, data flows, transformation processes, and data stores. Each is represented on a DFD by a different symbol. True False

True

Documentation methods such as DFDs, BPDs, and flowcharts save both time and money, adding value to an organization. True False

True

A BPD for the revenue cycle will include which of the following? A.Description of all selling functions within an organization B.Description of all human resource and payroll functions within an organization C.Description of all purchasing functions performed within an organization D.Description of all the major functions performed within all cycles within an organization

A

A BPD provides users a ________ of the different steps or activities in a business process. A.visual view B.data flow C.decision tree D.narrative

A

A ______ is a pictorial, analytical technique used to describe some aspect of an information system in a clear, concise, and logical manner. A.flowchart B.narrative C.BFD D.context flow diagram

A

A firm, its suppliers, and its customers collectively form which of the following? supply chain AIS value chain ERP system

A

A graphical description of data sources, data flows, transformation processes, data storage, and data destinations is called A.a data flow diagram. B.a context diagram. C.a flowchart. D.a business process diagram.

A

A set of related activities that help accomplish a specific organizational goal is called a(n): A.Business process B.Information need C.Key decision D.Transaction

A

All of the information (name, GPA, major, etc.) about a particular student is stored in the same _______________. record field attribute file

A

How are data sources and destinations represented in a data flow diagram? A. As a square B. As a curved arrow C. As a circle D. As two parallel lines E. None of the above

A

In a DFD, a data destination is represented by A.a square. B.a bubble. C.an arrow. D.two horizontal lines.

A

In which transaction cycle would information for generating customer orders be most likely to pass between internal and external accounting information systems? A.The revenue cycle. B.The financing cycle. C.The expenditure cycle. D.The HR/payroll cycle.

A

The documentation skills that accountants require vary with their job functions. However, they should at least be able to do which of the following? A. Read documentation to determine how the system works B. Critique and correct documentation that others prepare C. Prepare documentation for a newly developed information system D. Teach others how to prepare documentation

A

Which of the following Flowchart symbols is used to show an annotation in a flowchart? A. Sideways goal post B. Rectangle C. Folder Tab D. Cylander

A

Which of the following documents is most likely to be used in the expenditure cycle? receiving report job time ticket sales order credit memo

A

Which of the following is NOT a step in the data processing cycle? data collection data input data processing data storage

A

Which of the following is NOT an advantage of an ERP system? simplicity and reduced costs improved monitoring capabilities standardization of procedures and reports better access control

A

Which of the following is a function of an AIS? transforming data into useful information reducing the need to identify a strategy and strategic position allocating organizational resources automating all decision making

A

Which of the following is not a guideline when preparing a data flow diagram? A.Do not ignore any aspects of the system B.Subdivide the DFD C.Group transformation processes D.Give each process a sequential number

A

Which of the following is not a transaction cycle? A.The general ledger cycle. B.The expenditure cycle. C.The HR/payroll cycle. D.The revenue cycle.

A

Which of the following statements is FALSE? DFDs help convey the timing of events. Flowcharts make use of many symbols. A document flowchart emphasizes the flow of documents or records containing data. Both a and b are false.

A

Which of the following statement(s) about the Internet is(are) true? (Check all that apply.) A.The Internet has many uses, including the ability to share information with large groups of people B.Many Internet transactions are processed and stored by older, traditional legacy systems C.The Internet has made people-to-people interactions easier to engage in D.The Internet has made business-to-business transactions more difficult to engage in

A, B, C

Which of the following statements is(are) true? (Check all that apply.) A.A smart contract is a regular contract with the terms and agreed upon details built into a blockchain. B.With blockchain, items of value can be exchanged in a secure and trusted manner. C.Blockchain is more than a database; it is a new way to process, store, share, and search information. D.While the Internet is a network of value and of trust, a blockchain is a network of information.

A, B, C

ERP systems are modular, with each module handling a standard business process. This modular design allows businesses to add or delete modules as needed. Which of the following are typical ERP modules mentioned in the text? (Check all that apply.) A.Financial—general ledger, budgeting, cash management, and preparation of managerial reports and financial statements B.Order to cash—sales order entry, shipping, inventory, cash receipts, and commission calculation C.Project management—costing, billing, time and expense, performance units, and activity management D.System tools—tools for establishing master file data, specifying flow of information, and access controls E.Vendor relationship management—procurement and promotion, vendor contact and service, and call center support

A, B, C, D

Accounting software has improved significantly over time. We now have intelligent or automated accounting systems that can: (Check all that apply.) A.Allow companies and clients to use smart portals to transfer data and information back and forth securely B.Record transactions automatically, perform on demand accounting functions, and automatically distribute data C.Make critical and strategic management decisions without human intervention D.Use machine learning and artificial intelligence to process data and store it in the cloud

A, B, D

Which of the following statement(s) about the history of transaction processing is(are) true? (Check all that apply.) A.When computers were invented, we digitized journals and ledgers and created transaction files and master files that did the job of paper-based journals and ledgers. B.Originally, people kept track of transactions using a single-entry accounting system. C.When the number of master files proliferated, we combined multiple files into databases, which have grown much smaller and simpler. D.We used double-entry bookkeeping systems with journals and ledgers and paper-based financial reports for hundreds of years.

A, B, D

With respect to data input, data must be collected about three facets of each business activity. Which of the following is (are) one of those facets? (Check all that apply.) A.The people who participate in each activity B.Each activity of interest C.The decisions that will be made about each activity D.The controls needed to protect activity data E.The resource(s) affected by each activity

A, B, E

Which of the following are data flow diagram preparation guidelines? (Check all that apply.) A.All data flows should come from, and go to, a transformation process, a data store, a source, or destination. B.Data flows can only move in one direction. C.Processes and data stores typically take their names from the data inflows or outflows. D.In a DFD, you should always show how the system starts and stops.

A, C

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? (Check all that apply.) A.Provide the controls needed to safeguard an organization's assets and data B.Develop the procedures and instructions needed to operate the software and store the data C.Transform data into information so management can plan, execute, control, and evaluate activities, resources, and personnel D.Collect and store data about the organization's activities, resources, and personnel E.Hire the best people available to manage the organization

A, C, D

The text discusses three different steps when processing input. Which of the following is (are) one of those steps? (Check all that apply.) A.Make sure company policies are followed when data is input. B.Make sure the input data is processed and stored correctly. C.Make sure captured data are accurate and complete. D.Make sure to capture transaction data and enter them into the system.

A, C, D

Which of the following statements about ERP systems is(are) true? (Check all that apply.) A.ERP systems integrate all aspects of a company's operations with a traditional AIS. B.Before ERP systems were developed, it was easy to include nonfinancial information in an AIS. C.ERP systems use a centralized database to share information across business processes and coordinate activities. D.Well-designed ERP systems provide management with the easy access to up-to-date information needed to plan, control, and evaluate business processes more effectively.

A, C, D

Which of the following statements is (are) true? (Check all that apply.) A.A transaction is an agreement between two entities to exchange goods or services. B.In the conversion cycle, companies convert company shares to cash by selling ownership shares to investors. C.All organizations need information in order to make effective decisions. D.In most cycles, companies repeatedly process a few related transactions, such as buying or selling goods.

A, C, D

Which of the following are advantages of ERP systems? (Check all that apply.) A.Management gains greater visibility into every area of the enterprise, and greater monitoring capabilities. B.Because the ERP system benefits are so great, there is little resistance to their installation. C.Procedures and reports are standardized across business units. D.ERP systems are relatively inexpensive. E.ERP systems provide an integrated, enterprise-wide view of an organization's data and financial situation.

A, C, E

Which of the following statements about ERP systems is(are) true? (Check all that apply.) A.Top management's commitment to an ERP system greatly increases the chances of success. B.Since there are so few quality ERP systems, choosing one is an easy task. C.One way to choose a suitable ERP system is to select a package designed for your industry. D.Companies seldom hire outside help to implement ERP software. E.The importance of sound internal controls in an ERP system cannot be overstated.

A, C, E

Which of the following are data flow diagram preparation guidelines? (Check all that apply.) A.Include all relevant data elements so that they are considered during the system development B.Include all error paths, no matter how unimportant they may seem C.All transformation processes should have one or more incoming data flows, but may not have an outgoing data flow D.Give each process a sequential number to help readers navigate among the DFD levels

A, D

Which of the following statements about data storage is (are) true? (Check all that apply.) A.A subsidiary ledger contains detailed data for any general ledger account with many individual subaccounts. B.A general journal is used to record a large number of repetitive transactions. C.A specialized journal is used to record infrequent or non-routine transactions. D.A chart of accounts is a list of the numbers assigned to each general ledger account. E.A general ledger contains detailed level data for every asset, liability, equity, revenue, and expense account.

A, D

With respect to data flow diagrams, which of the following statements are true? (Check all that apply.) A.In order to provide more information, a portion of a level-zero diagram (such as process 2.0) can be divided into sub-processes (for example, 2.1, 2.2, and 2.3, if there are three sub-processes). B.A context diagram is the lowest-level DFD; it provides a low-level view of a system. C.If two or more data flows move together, two lines are used. If the data flow separately, a single line is used. D.DFDs are subdivided into successively lower levels in order to provide ever-increasing amounts of detail.

A, D

With respect to flowcharts, which of the following statements is (are) true? (Check all that apply.) A.An internal control flowchart can be used to describe, analyze, and evaluate internal control strengths. B.A system flowchart describes the specific logic used to perform a process shown on a program flowchart. C.Flowcharts can be used to analyze how to improve business processes, but not document flows. D.Document flowcharts trace a document from its cradle to its grave, showing everything that happens as it flows through the system. E.An internal control flowchart is not very helpful in spotting system weaknesses or inefficiencies.

A, D

Which of the following are business process diagram preparation guidelines? (Check all that apply.) A.Each row or swim lane in a BPD contains the activities performed by the indicated employee or department B.Unlike DFDs, most BPDs will not start with an action verb C.A BPD, no matter how detailed, is rarely sufficient to evaluate internal controls, such as whether duties are properly segregated D.Show what technology is used in each business process E.BPDs depict the major steps in a process sequentially, reading from left to right and top to bottom

A, E

Which of the following are flowchart preparation guidelines? (Check all that apply.) A.Develop an understanding of the system using tools, such as interviews or questionnaires, or by walking through the system transactions. B.Design the flowchart so that data flow from bottom to top and from right to left. C.There is no need to identify departments, job functions, or external parties on the flowchart. D.It is usually not necessary to show procedures and processes in the order they take place. E.In documents flowcharts, divide the flowchart into columns with labels, clearly label all symbols, and use arrowheads on all the flow lines.

A, E

All of the following are recommended guidelines for making flowcharts more readable clear concise consistent and understandable EXCEPT: A. Divide a document flowchart into columns with labels B. Flowchart all data flows, especially exception procedures and error routines C. Design the flowchart so that flow proceeds from top to bottom and from left to right D. Show the final disposition of all documents to prevent loose ends that leave the reader dangling

B

Before a company can identify the information needed to effectively manage a process, the company must A.consult with its operation department. B.understand its business process. C.hire an information system director. D.upgrade its information system.

B

ERP is the abbreviation for A.entity resource planning. B.enterprise resource planning. C.enterprise resource program. D.enterprise reporting program.

B

How does the chart of accounts list general ledger accounts? alphabetical order the order in which they appear in financial statements chronological order size order

B

In which business cycle are goods shipped to a customer? A.Production cycle B.Revenue cycle C.Payroll cycle D.Expenditure cycle

B

Shipping newly manufactured phones to retailers and customers is an example of which type of primary activity? A.Marketing B.Outbound logistics C.Operations D.Service

B

The flowchart that show the sequence of logical operations executed by a computer is called a: A.Systems flowchart B.Program flowchart C.Operations flowchart D.Decision flowchart

B

Which of the following is LEAST likely to be a specialized journal? cash receipts journal prepaid insurance journal sales journal cash disbursements journal

B

Which of the following is NOT a characteristic that makes information useful? It is timely. It is inexpensive. It is accurate. It is relevant.

B

Which of the following is NOT a component of an AIS? A.IT infrastructure B.company culture C.people D.software

B

Which of the following is a benefit of implementing an ERP system at a multinational corporation? A.Increased productivity of employees B.All of these are correct C.Customer service improves as employees can quickly access data D.Standardization of procedures and reports across business units

B

Which of the following is a primary activity in the value chain? human resource management post-sales service accounting purchasing

B

Which of the following is a primary activity? A.Firm infrastructure B.Inbound logistics C.Technology D.Purchasing

B

Which of the following is a secondary activity? A.Operations B.Human resources C.Service D.Marketing

B

Which of the following is not a flowcharting symbol category? A.Processing B.Reporting C.Input/output D.Storage

B

Which of the following is the most common source doc in the expenditure cycle? A.Remittance advice B.Purchase order C.Bill of lading D.Credit memo

B

Which of the following would contain the total value of all inventory owned by an organization? cash budget general ledger source document

B

With respect to data flow diagrams, which of the following statements is true? A.A data store represents the movement of data among processes, sources, and destinations. B.A data flow diagram graphically describes the flow of data within an organization. C.A process represents a repository of stored data. D.In a DFD, a data source is represented by a circle and a data destination is represented by a square.

B

Which of the following are disadvantages of ERP systems? (Check all that apply.) A.Data input must be captured or keyed multiple times as it is entered into different systems. B.It can take years to select and fully implement an ERP system. C.Usually companies must adapt their processes to standardized ERP business processes. D.They are complex because they have to integrate many different business activities and systems. E.The organization is less able to control access to the system.

B, C, D

Which of the following statements is (are) true? (Check all that apply.) A.As a rule, users make better decisions as the quantity and quality of information decreases. B.Most systems are composed of smaller subsystems, each designed to achieve one or more organizational goals, which support a larger system. C.There are limits to the amount of information the human mind can absorb and process. D.Information costs and benefits can be difficult to quantify. E.The smaller the organization and the less complicated the system, the more difficult it is to achieve goal congruence.

B, C, D

Which of the following statements is (are) true? (Check all that apply.) A.The value of information is the cost of producing it minus the benefit produced by the information. B.Information system designers use information technology to help decision makers more effectively filter and condense information. C.Goal conflict occurs when a subsystem achieves its goals while contributing to the organization's overall goal. D.Benefits of information include reduced uncertainty, improved decisions, and improved ability to plan and schedule activities. E.Changes in a subsystem can usually be made without considering the effect on other subsystems.

B, D

With respect to computer-based storage concepts, which of the following statements is (are) true? (Check all that apply.) A.An attribute is something about which information is stored. B.A set of interrelated, centrally coordinated files is referred to as a database. C.Data values are characteristics of interest that are stored. D.A file is a group of related records.

B, D

A graphical description of a company's processes is called a: A.Program flowchart B.Document flowchart C.Business process diagram D.Data flow diagram

C

A well-planned and drawn level 0 data flow diagram for the revenue cycle would show which of the following processes? A.0.1 Take customer's order; 0.2 Ship product; 0.3 Bill customer. B.1.1 Take customer's order; 1.2 Ship product; 1.3 Bill customer. C.1.0 Take customer's order; 2.0 Ship product; 3.0 Bill customer. D.0.1 Take customer's order; 0.12 Ship product; 0.13 Bill customer.

C

All of the following are guidelines that should be followed in naming DFD data elements EXCEPT: A. Process names should include action verbs such as update, edit, prepare and record B. Make sure names describe all of the data or entire process C. Name only the most important DFD elements D. Choose active and descriptive names

C

All of the following are ways an AIS can add value to an organization except: A.Improving efficiency B.Sharing knowledge C.Increasing product costs D.Improving internal controls

C

Cupcake by Emma is a dessert retailer located in Springtown, Texas. Emma is a sole proprietorship that stocks an inventory of between 30 and 50 different kinds of desserts. Inventory is updated in real time by the company's AIS. If Emma wishes to keep cumulative data about the company, Emma might use a A.transaction file. B.specific file. C.master file. D.relational file.

C

Data is most useful when ______. (Check all that apply.) A.it lacks clarity. B.it increases uncertainty. C.it is in machine-readable format. D.its access is limited to a single person.

C

In an ERP system, the module used to record data about transactions in the disbursement cycle is called A.order to cash. B.manufacturing. C.purchase to pay. D.financial.

C

In the value chain concept, upgrading IT is considered what kind of activity? primary activity service activity support activity structured activity

C

Most organizations engage in a small number of a pair of activities that happen many times. These are called: A.Conflict-congruence exchanges B.Revenue-expenditure exchanges C.Give-get exchanges D.Paired transaction exchanges

C

Receiving and storing inventory is an activity in which transaction cycle? A.Production B.Financing C.Expenditure D.Revenue

C

Recording and processing information about a transaction at the time it takes place is referred to as which of the following? chart of accounts processing captured transaction processing real-time processing batch processing

C

Records of company data sent to an external party and then returned to the system as input are called _________. source documents external input documents turnaround documents source data automation documents

C

Which of the following data flow diagram symbols is used to show a transformation process in a DFD? A. Triangle B. Square C. Circle D. Two parallel lines

C

Which of the following is NOT a means by which information improves decision making? provides feedback about the effectiveness of prior decisions identifies situations requiring management action increases information overload reduces uncertainty

C

Which of the following is an example of a common activity in an AIS? A.Keeping track of the number of customers who visited the company's website. B.Organizing community services for the company. C.Selling goods and services and collecting cash. D.Recording sales calls for marketing purposes.

C

Which of the following is an example of a turnaround doc A.A company's financial statements B.Employee earnings record C.Utility bill D.Purchase orders

C

Which of the following is most likely to be a general ledger control account? petty cash prepaid rent accounts receivable retained earnings

C

Which of the following is the most effective way to segregate duties in an ERP system? A.No one person should be responsible for recording and monitoring of organizational assets. B.No one person should be responsible for authorization, monitoring, and risk assessment. C.No one person should be responsible for authorization, recording, and have custody of organizational assets. D.No one person should be responsible for recording, risk assessment, and control procedures.

C

Which transaction cycle includes interactions between an organization and its suppliers? general ledger and reporting system human resources/payroll cycle expenditure revenue cycle

C

Which of the following are business process diagram preparation guidelines? (Check all that apply.) A.Divide the BPD into columns with labels, clearly label all symbols, and use arrowheads on all flow lines B.Show documents as they flow through the system, and show where each is stored C.Place the name, date, and preparer's name on each page of the completed BPD D.Get an understanding of the system using tools, such as observing business processes and data flows, or by walking through the system transactions E.Identify business processes, documents, data flows, and data processing procedures

C, D, E

Which of the following are flowchart preparation guidelines? (Check all that apply.) A.Show where documents or processes originate, and data are processed, but do not show where data are stored or sent B.Do not indicate on the flowchart who prepared the flowchart C.Show data entered into, or retrieved from, a database as passing through a processing operation (computer program) first. D.Identify the business processes, documents, data flows, and data processing procedures to be flowcharted E.Show the final disposition of all the documents

C, D, E

Which of the following statements is (are) true? (Check all that apply.) A.IT developments should not be allowed to affect business strategy or organizational culture. B.Because the data is so different, it is not practical to collect and integrate both financial and nonfinancial data about an organization's activities. C.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. D.An AIS can help improve decision making by providing accurate and timely information, reducing uncertainty, and identifying situations requiring management action. E.A well-designed AIS can add value to an organization by improving product quality, improving efficiency, and sharing knowledge.

C, D, E

Which of the following statements is (are) true? (Check all that apply.) A.Information is facts that are collected, recorded, stored, and processed by an information system. B.Goal congruence occurs when a subsystem's goals are inconsistent with the goals of another subsystem or with the system as a whole. C.Businesses need to collect data about activities that take place, the resources affected by the activities, and the people who participate in the activity. D.A system is a set of two or more interrelated components that interact to achieve a goal. E.It is difficult to determine the value of information before it has been produced and utilized.

C, D, E

A DFD is a representation of which of the following? decision rules in a computer program computer hardware configuration the logical operations performed by a computer program flow of data in an organization

D

Data differ from information in which way? There is no difference. Data are meaningful bits of information. Data are output, and information is input. Information is output, and data are input.

D

In which cycle does a company ship goods to customers? Production cycle Financing cycle Expenditure cycle Revenue cycle

D

Information is best described as A.a set of related, coordinated, and structured data. B.facts that are collected, recorded, stored, and processed by an information system. C.raw facts about transactions. D.data that have been organized and processed to provide meaning and improve decision making.

D

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? A.Complete B.Verifiable C.Reliable D.Accessible

D

The type of flowchart that illustrates the flow of documents and data among areas of responsibility within an organization is called A.program flowchart. B.system flowchart. C.business process flowchart D.document flowchart.

D

The type of flowchart that illustrates the relationships among system input, processing, storage, and output in an organization is called ________ A.program flowchart. B.document flowchart. C.internal control flowchart. D.system flowchart.

D

The value of information can best be determined by A.the relevance provided to decision makers. B.the usefulness provided to decision makers. C.the time it takes to help decision makers make their decisions. D.the benefit provided by information less the cost of producing it.

D

What is the first step in the data processing cycle? A.Storage B.Output C.Processing D.Input

D

Which of the following BPD symbols is used to show an activity in a process? A. Circle B. Arrow C. Triangle D. Rectangle

D

Which of the following flowcharts illustrates the flow of data among areas of responsibility in an organization? A. Program flowchart B. Computer configuration chart C. System flowchart D. Document flowchart

D

Which of the following is an example of an ERP system? A.Jim has a system that keeps track of the cash receipts and cash disbursements of his cleaning business. At the end of each month, the system helps him prepare a monthly profit and loss statement. B.Ken is a freelance contractor. He keeps records of all expenses and revenues on his cell phone app and the files are uploaded to the cloud on a regular basis. C.John uses a computerized information system to keep track of all the financial data generated by his business. D.Each week Emily enters all of the data into a system that automatically generates purchase orders, based on predetermined inventory reorder points. Production quotas for the coming week are also automatically generated based on customer orders.

D

Which of the following statement(s) is(are) true? (Check all that apply.) A.A BPD for the revenue cycle will only describe the functions performed by the purchasing company. B.BPDs only describe interactions within an entity; it is never used to describe interactions between entities. C.There are only a small number of different symbols that can be used in drawing a BPD. D.The Business Process Modeling Initiative Notation Working Group established standards for drawing BPDs.

D

Which of the following statements is FALSE? A. A flowchart is an analytical technique used to describe some aspect of an information system in a clear, concise and logical manner B. Flowcharts use a standard set of symbols to describe pictorially the flow of documents and data through a system C. Flowcharts are easy to prepare and revise when the designer utilizes a flowcharting software package. D. A system flowchart is a narrative representation of an information system

D

With the advent of cryptocurrencies, a new technology is changing the way financial and many other types of transactions are recorded, processed, and stored. This technology is called: A.Cryptochain B.Cyclechain C.Transactionchain D.Blockchain

D

________ information reduces uncertainty, improves decision making, or confirms or corrects prior expectations. A.Complete B.Verifiable C.Reliable D.Relevant

D

Once business activity data have been entered into the system, they must be processed to keep the databases current. Which of the following are not one of the four different types of data processing activities? A.Updating previously stored data B.Creating new data records C.Deleting data records no longer needed D.Reading, retrieving, or viewing existing data E.Controlling access to the data records

E