Accounting 3303 chapter 1 mgraw hills

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

data

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

data

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

data

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

customer relationship management software

Information that is not designed to lead users to accept or reject any specific decision would be an attribute of __________.

faithful representation

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

faithful representation

Accounting information systems must be computerized to be effective.

false

Accounting rules do not allow for any flexibility in financial reporting by management.

false

Accounting systems are useful for performing accounting tasks, but cannot be used for such security purposes as countering terrorism.

false

An advantage of computerized AISs is that they do not need to be programmed to catch simple input errors such as entering "4.0" instead of "40.0" for hours worked in a payroll application.

false

As used in this chapter, the acronym SAR stands for "suspicious accounting reporting."

false

Computers tend to make audit trails easier to follow because everything is computerized.

false

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

false

In order to be useful, raw accounting data must be processed by a computer.

false

It is best to view an AIS as an accounting system that must be computerized.

false

The acronym ERP stands for "electronic reporting plan."

false

The acronym ERP stands for "enterprise reporting system."

false

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

false

True or false: Raising capital is an activity in the Accounting/Finance Operations role of accountants.

false

True or false: Rapid changes in the global marketplace that affect the accounting profession have resulted in a focus on accountings' stewardship and reporting functions.

false

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

false

True or false: Too much information is not possible

false

Accounting information systems provide decision makers

financial and nonfinancial information

An attribute of faithful representation is the information is

free from error

An attribute of faithful representation is the information is ______________

free from error

An attribute of faithful representation is the information is ______________.

free from error

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

relevant information

An attribute of relevant information is: the information provides

representational faithfulness

The path that data follow in an AIS, for example from manual source document to completed output report, is called an audit trail.

true

The starting point for an audit trail of a production department might be the purchase order for raw materials.

true

The starting point for an audit trail of a weekly payroll system might be an employee time card.

true

The term "Patriot" in the "Patriot Act of 2001 is an acronym for "providing appropriate tools required to intercept and obstruct terrorism."

true

The term information overload refers to providing too much data to management, often resulting in managers ignoring it.

true

Sections of the Patriot Act mandate suspicious activity reporting.

true

The authors consider accountants to be "knowledge workers."

true

The five primary activities for value chain

1. firm infrastructure 2. human resource management 3. Technology 4.procurement

Stewardship and Reporting

1.Regulatory compliance 2.Tax returns 3. Stakeholder assurance 4. Investor relations 5. statutory reporting

An example of a corporate scandal that was mentioned in this chapter is the Enron case.

23.true

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

Certified Information Technology Professional (CITP)

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

Enterprise System

The acronym AIS stands for "Accounting Information Standards."

False

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

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

Information Technology

Which of the following is included in Accountants' Stewardship and Reporting role? (Check all that apply).

Investor Relations Statutory Reporting

Technology does not necessarily result in better decisions, because the information produced may not support the information requirements of the business's DECISION makers.

Performance measurement, reporting and analysis

a enterprise, ERP, OR ES

System is a centrailzed database that collects data from throughout firm.

user

accounting information systems whether it be inputting journal entries into an accounting system, using a financial spread sheet to calculate the cost of a product, or using anti-virus software to protect the system.

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

AIS strategic roles

automate - replace human labor in automating business processes. informate-up- provide information about business activities to senior management informate-down transform - fundamentally redfine business processes and relationships

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

be a faithful representation

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

business event

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

An attribute of relevant information is: the information is

confirmatory

an attribute of relevant information is : the information is

confirmatory

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 inforamtion

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

Accounting Information Systems include _________________.

either manual or computerized systems

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)

evealuator

To be relevant, the attributes of AIS information should have feedback value, ______, and be material.

have predictive value

What is a primary activity of the value chain?

inbound logistics

What is the IT strategic role that uses technology to provide information to the line (entry-level) worker?

informate-down

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

information overload

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

information technology

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

neutrality, unbiased, or neutral

An attribute of relevant information is: the information provides

predictive value

What is a supporting activity of the value chain?

procurement

an accounting information system is defined as a system that

records, processes summarizes and reports on business transcations

An accounting information system is defined as a system that

records, processes, summarizes and reports on business transactions

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

storage

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

supply chain

an accounting information system is defined as a system that records, processes and reports on business

transactions

A company's audit trail is normally easier to follow under a manual data processing system compared to a computerized information processing system.

true

AISs often create information that is useful to non-accountants.

true

One of the motivations for SAR is to identify money laundering activities.

true

Predictive analytics use large data warehouses to help organizations improve performance by predicting future outcomes.

true

True or false: Although rapid changes in technology increase the amount of information available, the information must support the information requirements of the business decision makers to be fully effective.

true

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

user, users, organization, or business

inbound logistics

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