Chapter 1 - Quiz

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 revenue cycle.

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

A.it is in machine-readable format.

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

A.understand its business process.

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

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

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

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

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

A.An AIS can help improve decision making by providing accurate and timely information, reducing uncertainty, and identifying situations requiring management action. B.A well-designed AIS can add value to an organization by improving product quality, improving efficiency, and sharing knowledge. E.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.

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.Collect and store data about the organization's activities, resources, and personnel 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.Hire the best people available to manage the organization E.Provide the controls needed to safeguard an organization's assets and data

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

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

A.Give-get exchanges

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

A.Inbound logistics

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

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

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

A.Outbound logistics

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

A.Relevant

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

A.Selling goods and services and collecting cash.

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

B.Accurate C.Reputable

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

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

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

B.Revenue cycle

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.Reliable C.Accessible D.Verifiable

C.Accessible

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

C.Business process

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

C.Human resources

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

C.Increasing product costs

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

C.company culture

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

D.Expenditure

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

D.The general ledger cycle.

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

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

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

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