ACCT- EXAM 1 (CH. 1-3)

Organization, interrelationships, integration, and central objectives must be present in a system because:

A system is a set of interdependent elements that together accomplish specific objectives

Which of the following is a supporting activity in the value chain?

Accounting Information Technology Human Resources

Internet commerce simplifies the world of E-business by:

Allowing the organization to provide templates based on a customer's needs

What is the relationship between an AIS and an IS?

An AIS cannot be distinguished separately from an IS

The relationship between the periodic mode and batch processing is:

Batch processing is the processing of data as a group

Lack of systems integration may result in the same data having to be multiple times into the systems. This can weaken which of the following data characteristics?

Consistency, accuracy and completeness

Which software builds and maintains an organization's customer-related database?

Customer relationship management (CRM) software

Which software and allows a customer to inquire, perform a task, or troubleshoot problems without the help of the organization's employees?

Customer self-service (CSS) software

______ ______ is the process of making choices.

Decision making

______ ______ is the use of electronic networks (including the Internet) to enable business processes between individuals and organizations.

E-Business

______ ______ are software packages that can be used to support enterprise systems.

ERP Systems

The difference between system and subsystem is:

Each part of a system is known as a subsystem

______ ______ integrate the business processes and information from all of an organization's functional areas.

Enterprise Systems

The ________ _______ is the central repository for all the data related to the enterprise's business activities and resources:

Enterprise database

The information system is important to the success of the organization by:

Facilitating operations processes and providing information for the organization's management

If information has integrity, then it is:

Free of error and complete

If information has confidentiality, then it is:

Has restricted access

The Sales and Distribution (SD) module in SAP:

Includes recording customer orders, shipping goods to the customer, and billing customers

If information has effectiveness, then it is:

Information meets the needs of the information consumer who uses the information for a specific task

If information has compliance, then it is:

Information must conform to specifications is covered by any of the information quality goals, depending on the requirements

Which types of updates can be made to master data?

Information processing and data maintenance

If information has efficiency, then it is:

Information relates more to the process of obtaining and using information, so it aligns to the "information as a service" view

What are the three steps in decision making?

Intelligence, Design, Choice

______ ______ is a process designed to provide confidence that the organization is achieving its objectives.

Internal control

If information has availability, then it is:

Is one of the information quality goals under the accessibility and security heading

What are three logical components of a business process?

Management, operations and information processes

The difference between business event data and master data is:

Master data is relatively permanent data

Are the terms system and subsystem synonymous?

No. Each part of a system is known as a subsystem

The relationship between online real-time (OLRT) and immediate mode processing:

OLRT completes all stages of business event data processing in immediate mode

How do horizontal and vertical information flows differ?

Operations and information flows are both horizontal and vertical

______ ______ require information that is an aggregate of data related to several business events

Operations managers

The ______ ______is a system consisting of the people, equipment, organization, policies, and procedures whose objective is to accomplish the work of the organization.

Operations process

Service-oriented architecture is:

Plug-and-play components

Two types of activities in the value chain are known as:

Primary and supporting

Which software manages product data during a product's life?

Product life-cycle management (PLM) software

Which of the following is a primary activity in the value chain?

Production Marketing & Sales Logistics

Network providers:

Provide a link to the Internet

Internet assurance services:

Provide limited assurance to users of the vendor's Web site that the site is in fact reliable and event data security is reasonable

E-mail can be adapted to a more structured form to aid in capturing business event data by:

Providing a link to an electronic order form that removes the need for an e-mail message containing an order

Which of the following is a step in the purchase-to-pay process? a. Sales order processing b. Pick and pack c. Shipping d. Purchase order processing

Purchase order processing

The use of online transaction entry (OLTE) can increase efficiency by:

Reduces the redundancies in periodic mode processing

If information has reliability, then it is:

Regarded as true and credible

Which software automates sales tasks such as order processing and inventory monitoring?

Sales force automation (SFA) software

Steps in the order-to-cash process:

Step 1) Presale Activities Step 2) Sales Order Processing Step 3) Pick and Pack Step 4) Shipping Step 5) Billing Step 6) Payment

Steps in the purchase-to-pay process:

Step 1) Requirements Determination Step 2) Purchase Order Processing Step 3) Goods Receipt Step 4) Invoice Verification Step 5) Payment Processing

______ ______ requires summarized and external information.

Strategic management

______is the degree of repetition and routine in the decision

Structure

What is structure as it relates to decisions?

Structure is the degree of repetition and routine in the decision

Which software manages the interactions with the organizations that supply the goods and services to an enterprise?

Supplier relationship management (SRM) software

Which software helps enable the steps in an organization's supply chain?

Supply chain management (SCM) software

______ ______ require information that is summarized, broader in scope, and need not be accurate

Tactical management

One of the most important functions provided by an enterprise system is:

The coordination of value activities in the value chain

Two major functions of an information system are:

This information can supplement accounting information and can assist managers in their decision making

It is important to capture the who, what, where, and when in describing business events because:

This information can supplement accounting information and can assist managers in their decision making.

The difference between wide area networks (WANs) and local area networks (LANs) is:

WANs link local networks into an integrated communications network and LANs link shared devices

Data captured as business events unfold should be related to the four Ws, which are:

Who, What, Where, When

E-Business changes organizational processes through: a. All of these choices b. Enabling more efficient operations c. Participating in new value chains d. Reengineering its business processes

a. All of these choices

WebTrust: a. All of these choices b. Was developed by accountants c. Is displayed by a seal on the client's webpage. d. Is designed to provide assurance

a. All of these choices

Business processes include: a. All of these choices are correct b. Business Operations c. Management decision making d. Events Processing

a. All of these choices are correct

Which roles can an accountant assume in the AIS? a. All of these choices are correct b. Auditor c. User d. Designer

a. All of these choices are correct

The following are key features/characteristics of an enterprise resource planning (ERP) system except: a. All of these choices are correct are features of an ERP system b. Integration of the major business processes c. Automation or computerization of business processes d. Consists of modules

a. All of these choices are correct are features of an ERP system

All of the following are advantages of enterprise systems except: a. Decentralized empowerment b. Single database c. All of these choices are correct are advantages d. Standardization of business processes

a. Decentralized empowerment

Which of the following is true about enterprise application integration (EAI)? a. EAI is an approach that combines processes, software, standards, and hardware to link two or more systems together. b. EAI cannot be used to connect pieces of an enterprise system to legacy systems. c. EAI cannot be used to connect pieces of an enterprise system to add-on modules such as CRM software. d. EAI can only be used to connect systems within a company.

a. EAI is an approach that combines processes, software, standards, and hardware to link two or more systems together.

Benefits of EDM systems include all of the following, except: a. Increased cost of handling and storing paper b. Enhanced management of operational workflow c. Superior customer service d. Improved staff productivity

a. Increased cost of handling and storing paper

Qualities of information include all of the following except: a. Public access b. Integrity c. Understandability d. Relevance

a. Public access

Which of the following SAP modules is used to automate the order-to-cash process? a. Sales and Distribution (SD) b. Controlling (CO) c. Electronic Data Interchange (EDI) d. Materials Management (MM)

a. Sales and Distribution (SD)

Lack of information systems integration when receiving a customer order over the phone can cause all of the following problems except: a. Sales person may have to determine whether or not an item is available. b. Sales person may not be able to determine the items current price. c. Sales person may not be able to determine a customer's creditworthiness. d. Sales person may have to put the customer on hold while checking with another department.

a. Sales person may have to determine whether or not an item is available.

Amazon.com's e-business model is based on: a. Online shopping carts b. All of these choices c. Secure transaction software d. Sophisticated data-analysis programs

b. All of these choices

B2B systems are limited to: a. Retail stores which rely heavily on B2B b. All of these choices c. Companies that sell predominantly over the Internet d. Companies such as Walmart

b. All of these choices

For WebTrust certification a Web site must meet which of the following principles? a. Processing integrity b. All of these choices c. Privacy d. Availability

b. All of these choices

If the customer service process were integrated: a. The enterprise system establishes the ATP date by determining whether the item is available in warehouses, scheduled to be manufactured and when it will be available. b. All of these choices c. The system automatically determines the price and the customer's creditworthiness d. Input of the customer name or number gives access to the customer data

b. All of these choices

Online real-time (OLRT) systems: a. Gather business event data at the time of occurrence, b. All of these choices c. Provide the results arising from the business event d. Update the master data essentially instantaneously

b. All of these choices

Steps in the purchase-to-pay process include: a. Requirements determination b. All of these choices c. Purchase order processing d. Payment processing

b. All of these choices

An enterprise system can support the functioning of an organization's processes by enhancing all of the following except: a. Communication with the organization b. All of these choices are correct are beneficial functions of enterprise systems c. Automation of business processes d. Systems integration

b. All of these choices are correct are beneficial functions of enterprise systems

The following are included in the 10 elements are included in the study of AIS except: a. Technology, databases, reporting, control b. All of these choices are part of the 10 elements c. Business operations, events processing, management decision making, systems development and operation d. Communications, accounting and auditing principles

b. All of these choices are part of the 10 elements

All of the following are true about add-on modules to an ERP system except that they: a. Are not necessary to the integration of the company's core business processes b. Can be used to enhance the interface with business partners but not with customers c. Can be provided by a third party vendor other than the ERP vendor d. May be used to complement the core functionality of an ERP system

b. Can be used to enhance the interface with business partners but not with customers

Steps in the order-to-cash process do not include: a. Presales activities b. Goods receipt c. Sales order processing d. Billing

b. Goods receipt

Web Services:

b. Is a software application

Which of the following are activities associated with a manual accounting process? a. Record business event data b. Journalize the business event c. Generate reports (and support queries) d. Update master data

b. Journalize the business event

Costs of Internet commerce include all the following, except: a. Staffing and training employees to work in a technology-driven environment b. Mailroom and other document preparation and handling costs are eliminated c. Organizational change to a completely different way of doing business d. Buying/leasing equipment and maintaining connection to the Internet

b. Mailroom and other document preparation and handling costs are eliminated

Which of the following is true of value chains? a. They are an approach to connecting information systems within an organization so as to increase the organization's value. b. They consist of activities performed by the organization to transform inputs into outputs valued by the customer. c. They manage product data during a product's life in order to increase its value. d. They enable the steps in an organization's supply chain, including demand planning and acquiring inventory.

b. They consist of activities performed by the organization to transform inputs into outputs valued by the customer.

Add-on modules that complement the core elements of an ERP system do not include: a. Supply chain management (SCM) software b. Vendor relationship management (VRM) software c. Customer self-service (CSS) software d. Customer relationship management (CRM) software

b. Vendor relationship management (VRM) software

How has technology supported Amazon.com's growth? a. Provides "almost-in-time" inventory b. Provide services to competitors c. All of these choices are correct d. Providing Web Services

c. All of these choices are correct

Which questions do accountants address when designing AIS? a. What reports will be produced? b. What will be recorded? c. All of these choices are correct d. What controls are necessary?

c. All of these choices are correct

Factors that distinguish data from information are all of the following except: a. Data must be transformed into information b. Data are facts or figures in raw form c. All of these choices are correct are factors d. Information is data

c. All of these choices are correct are factors

Methods of conducting E-business sometimes do not include: a. Internet commerce b. E-mail c. EDM d. EDI

c. EDM

Information is all of the following, except: a. Has value to the decision maker b. Reduces uncertainty and increases knowledge about a particular area of concern c. Facts or figures in raw form d. Data presented in a form that is useful in a decision-making activity

c. Facts or figures in raw form

In an automated accounting system, activities include all of the following, except: a. Prepare trial balance b. Update GL master data c. Journalize the business event d. Update AR master data

c. Journalize the business event

The basic subprocesses completed in processing business event data using OLRT processing do not include: a. Update master data b. Generate reports (and support queries) c. Journalize the business event d. Record business event data

c. Journalize the business event

Which of the following SAP modules is used to automate the purchase-to-pay process? a. Human Resources (HR) b. Sales and Distribution (SD) c. Materials Management (MM) d. Controlling (CO)

c. Materials Management (MM)

Risks of Internet commerce include all of the following, except: a. Illegal access to customer credit card information b. Hackers attempting to access sensitive information such as customer lists c. Organizational change d. Denial-of-service attacks

c. Organizational change

Which of the following are activities associated with an automated accounting process? a. Post the total from the journal to the general ledgerThis is a manual accounting process b. Post the business event from the journal to a subsidiary ledger c. Update master data d. Journalize the business event

c. Update master data

An enterprise system: a. Makes possible the coordinated operation of the organization's functions b. Provides a central information resource for the organization c. Integrates and automates business process functionality and information in an organization d. All of the these choices

d. All of the these choices

Value-added networks (VANs): a. Operates as a hub by linking many business partners together b. Can perform translation services c. Can perform communication services d. All of these choices

d. All of these choices

What is data? a. Facts or figures in raw form b. The measurements of objects and events c. Can be transformed into information d. All of these choices are correct

d. All of these choices are correct

Each of the following is one of the themes of this textbook except for: a. E-Business b. Controls c. Enterprise Systems d. Assurance Services

d. Assurance Services

The following are key features/characteristics of an enterprise system except: a. Automation or computerization of business processes b. Integration of the major business processes c. All of these choices are correct are features of an enterprise system d. Consists of modules

d. Consists of modules

E-business is all of the following, except: a. Enabling organizations to become part of new value chains b. A paper-trail c. Electronic business events d. E-commerce

d. E-commerce

The basic subprocesses completed in processing business event data using batch processing do not include: a. Update master data and generate output b. Business event occurs c. Record business event data d. Journalize the business event

d. Journalize the business event

Which of the following is a step in the order-to-cash process? a. Goods receipt b. Invoice verification c. Purchase order processing d. Sales order processing

d. Sales order processing