1- Quiz

A pizza company is evaluating the following measures: the amount of sales realized from each customer in their database; how much it costs to acquire each new customer added to their database; ratings of customer satisfaction with the quality of the pizzas they ordered and paid for; and the number of new customers added to their database. Which of the following best describes the tasks undertaken by the pizza company? a. Decision making b. Decision context c. KPIs d. Data analytics

c Management's responsibilities include identifying ways to monitor the performance of the business. A popular way to approach this process is developing key performance indicators (KPIs), which are metrics used to measure the success or lack of success and progress or lack of progress of a business.

______________oversees business processes through planning, monitoring, implementing, changing and improving processes. a. Company shareholders b. The IRS c. Management d. The SEC

c Managers use a variety of systems to make good decisions. By overseeing business processes through planning, implementing, monitoring, and changing and improving processes, management has the tools and ability to help with good decision making.

The relationship between data, useful information, and decisions are supported by which of the following? a. business events and business models b. investing event and operating event c. reporting and analytics d. data integrity and data analytics

c Reporting and data analytics are dependent upon each other, and both are useless without a robust information system capturing the business process data required to perform both.

The informational output of an accounting information system is best represented by which of the following reports? a. reports used by the SEC for private companies b. reports used by the chamber of commerce c. reports used by stockholders and creditors d. reports used by the general public

c The AIS performs data collection, data transformation, and data reporting, specific to accounting and financial data, including reports used by stockholders and creditors of the company.

Which of the following would NOT be recorded or captured in a transaction-based accounting information system? a. paying a vendor invoice b. shipping goods to a customer c. receiving goods from a vendor d. receiving a customer order

d In a transaction-based AIS, receiving a customer order is not captured in the AIS. The other three answer choices are captured (recorded) in an AIS.

In the acquisitions and payments process, which of the following would be an example of additional data capture that would be useful information for this process? a. getting a loan from a bank b. placing an order with a supplier c. hiring a new employee d. monitoring supplier delivery performance

d The acquisitions and payment process involves expenditures, payroll, and financing; monitoring a supplier's delivery performance is an example of additional data capture in this process.

A phone company is planning to use data analytics to examine certain types of basic information related to the manufacturing of its phones overseas. Which of the following would be an example of a data analytics-related project the company may consider implementing to ensure no particular vendor is being favored by accounts payable? a. Calculating the number of days it takes to pay each respective vendor. b. Checking to determine if vendors have sent multiple invoices to the company for the same orders c. Matching the purchase order to a receiving report and the vendor's invoice. d. Comparing total phones ordered to total phones delivered to the company's warehouses.

a A phone company can calculate the average number of days it takes to pay each respective vendor. The company can then use this information to determine the average number of days taken to pay each vendor and match the terms of the company's purchase order with each respective vendor.

Information quality refers to the suitability of the information for a particular purpose for a specific task. Which of the following would NOT be suitable information for management evaluating if they should extend credit to a potential new customer? a. obtaining a banking reference for the new customer b. historical company bad debt accrual c. the new customer's overall credit rating d. references provided by the new customer

a Bad debt expenses and accruals have nothing to do with evaluating the creditworthiness of a potential new customer. The other three answers choices would be part of suitable information gathered in this situation to evaluate and help management decide regarding whether or not to grant credit terms to a new large customer.

As part of the marketing, sales and collections processes in a processed-based system, which of the following would NOT be considered non-financial additional data? a. Collecting payment from a customer. b. Capturing customer engagement data. c. Tracking online engagement levels. d. Identifying the time from initial contact to becoming a customer.

a Collecting payment from a customer is a financial transaction. The other three options are additional data that are non-financial in nature, but helpful in decision making.

What does management use to make decisions on how to improve business processes? a. Future performance projections and reports b. Historical performance information and analytics c. Reports and future projections d. Professionally prepared dashboards

b By combining historical performance information and data analytics, management can glean insights to understand what has happened and make decisions on improving business processes.

When reviewing the fundamental characteristics of useful information, what is an overall constraint that must be considered? a. faithful representation b. cost-effectiveness c. timeliness d. confirmatory value

b Cost-effectiveness is an overall constraint related to the usefulness of the information. A cost-benefit analysis is necessary to ensure that the information is worth the cost required to access it.

Even though _____________doesn't result in an accounting transaction, the data is additional useful data. a. paying vendor invoices b. terminating an employee c. making a loan payment d. paying employees

b Terminating an employee is not an event that creates accounting data. Still, the information will be useful in calculating employee turnover, which will be a helpful piece of information for management.

Marketing, sales and collection processes are one of three primary types of __________. a. information processes b. business processes c. information events d. business events

b There are three primary business processes: marketing, sales, and collection. The other business processes include acquisitions, payments, and conversion.

Foxy Sonic Inc. is processing payables invoices and preparing the electronic payments for each vendor. What type of business event would this be considered? a. Investing b. Monitoring c. Operating d. Financing

c Accounts payable is an operating business event, as it happens in the normal course of business.

EBITDA is a financial ratio and KPI that means what? a. Expenses before interest income, tax expense, depreciation and assets b. Earnings before interest income, taxes, depreciation and amortization c. Earnings before interest, taxes, depreciation and amortization d. Earnings before income, taxes, depreciation and assets

c EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This is a useful KPI for manager decision making.

The size and the complexity of an accounting information system vary based upon the needs of each Company. For example, for most small businesses the AIS should___________. a. be complex enough to integrate into the overall information system b. not need to focus on other accounting subdisciplines, like cost accounting c. focus on properly recording each underlying business event d. be complex enough to integrate with the enterprise-wide information system

c For small businesses, a less complex AIS can be a stand-alone system that focuses on the accounting equation and the financial implications of properly recording each underlying business event in the AIS.

Which of the following is NOT an explanation for how information improves decision-making within an organization? a. Information provides management with feedback regarding prior actions. b. Information reduces uncertainty. c. Information increases information overload. d. Information identifies business situations requiring management action.

c It is possible that decision makers may receive too much information, which would not improve decision-making within an organization. If decision makers receive too much information, they may have difficulty combining all this information when preparing their decision-making process. The end result is the decision-making process, including its quality, may be hindered instead of improved. The other three answer choices are explanations for how the information would improve decision-making processes within an organization.