ACCT 310 - Ch. 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) A system used to manage and nurture a firm's interactions with its current and potential customers.

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.

A) Automate, Informate, Transform.

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) Transform. D) Informate - down.

A) Automate.

Which designation would be most appropriate for those professionals possessing IT audit, control and security skills? A) Certified Information Systems Auditors (CISA) B) Certified Public Accountant (CPA) C) Certified Internal Auditor (CIA) D) Certified Information Technology Professional (CITP)

A) Certified Information Systems Auditors (CISA)

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

A) Refers to the flow of materials, information, payments and services.

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.

A) Revenues.

The characteristics of reliable information are that the information is verifiable, without bias and timely.

False

The main financial benefit of Customer Relationship Management practices reduces the cost of goods sold.

False

A well-designed and well-functioning AIS can be expected to create value by providing relevant information helpful to management to increase revenues and reduce expenses.

True

An accounting information system (AIS) is defined as being an information system that records, processes and reports on transactions to provide financial and nonfinancial information for decision making and control.

True

An efficient Enterprise System can significantly lower the cost of support processes included in sales, general, and administrative expenses.

True

An enterprise system is a centralized database that collects data from throughout the firm. This includes data from orders, customers, sales, inventory and employees.

True

Business value includes all those items, events, and interactions that determine the financial health and well-being of the firm.

True

CRM software often includes the use of database marketing tools to learn more about the customers and to develop strong firm-to-customer relationships.

True

Information is defined as being data organized in a meaningful way that is useful to the user.

True

Information overload is defined as the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.

True

Service Activities as defined in the value chain are those activities that provide the support of customers after the products and services are sold to them (ex: warranty repairs, parts, instruction manuals, etc.).

True

The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those performing IT audits.

True

The Certified Information Technology Professional is the position created by the AICPA to recognize CPAs who have the ability to provide skilled professional services on Information Technology.

True

The Sabanes-Oxley Act of 2002 is a federal law in the United States that set new and enhanced standards for all US public companies, their management and public accounting firms.

True

The characteristics of relevant information include predictive value, feedback value and timeliness.

True

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.

B) CRM.

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.

B) Cost of Goods Sold.

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

B) 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 >> Operations >> Outbound Logistics C) Inbound Logistics >> Operations >> Shipping D) Inbound Logistics >> Outbound Logistics >> Marketing & Sales

B) Inbound Logistics >> Operations >> Outbound Logistics

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.

B) Items, events and interactions that determine the financial health and well-being of the firm.

A supply chain system does NOT include information about: A) Current customers. B) Prospective customers. C) Availability of inventory. D) Current suppliers.

B) Prospective customers.

Which designation is for CPAs with a broad range of technology knowledge and experience? A) Certified Public Accountant (CPA) B) Certified Information Systems Auditors (CISA) C) Certified Information Technology Professional (CITP) D) Certified Internal Auditor (CIA)

C) Certified Information Technology Professional (CITP)

Activity-based costing is an example of: A) Information overload. B) Mandatory information. C) Discretionary information. D) Enterprise System.

C) Discretionary information.

Accounting information systems: A) Are for computer games. B) Are always computerized. C) Include records, processes and reports. D) Report only accounting information.

C) 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.

C) Information overload.

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.

C) Management decision-making.

The role of accountants in accounting information systems include all except: A) User. B) Manager. C) Operator. D) Evaluator.

C) Operator.

The primary transformation of data into information takes place in which of the following activities? A) Input. B) Storage. C) Processing. D) Output.

C) Processing.

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.

C) Provide information about business activities to senior management.

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.

C) 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.

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

EBay uses information technology to sell goods on the internet. This would be an example of the strategic role. A) Automate. B) Informate - up. C) Transform. D) Informate - down.

C) Transform.

Support activities in the value chain do not include: A) Firm Infrastructure. B) Human Resource Management. C) Procurement. D) Accounting and Finance.

D) Accounting and Finance.

Which of following is NOT a characteristics of useful information? A) Feedback value. B) Timeliness. C) Representational Faithfulness. D) Easy to understand.

D) 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.

D) Enterprise systems.

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.

D) Fundamentally redefine business processes and relationships.

A simple information system includes all but the following elements except: A) Processing. B) Storage. C) Input. D) Reporting.

D) Reporting.

The Certified Information Technology Professional (CITP) is a professional designation for those with a broad range of technology knowledge and does not require a CPA.

False

A value chain is defined as the flow of materials, information, payments, and services from customer to supplier.

False

Accounting Information Systems at this date are all computerized.

False

Accounting and Finance is a primary activity in the value chain.

False

An enterprise system is primarily used to manage and nurture a firm's interactions with its current and potential clients.

False

Data is defined as being information organized in a meaningful way that is useful to the user.

False

Outbound logistics are the activities associated with receiving and storing raw materials and other partially completed materials, and distributing those materials to manufacturing when and where they are needed.

False

Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue Service is an example of discretionary information.

False

Relevant information is that information that is free from bias and error.

False

A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.

True