Accy 310 Chapter 1

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, and transform

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

False

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

An accounting information system (AIS) is defined as being an information system that records, processes, and reports on transactions to provide financial 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

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 to be useful to the user

True

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

True

Service Activities are defined in the value chain are those activities that provide the support of customers after the product and services are sold to them

True

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

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 Sarbanes-Oxley Act of 2002 is a federal law that set new and enhanced standards for all US public companies, management, and public accounting firms

True

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

True

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

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 of the following are not a characteristic of useful information? A. Easy to understand B. Feedback value. C. Timely D. Representational Faithfulness

a. easy to understand

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

a. financial reports for the Securities and Exchange Commission

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

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

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

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

The correct order of effects in the value chain are: A. Inbound Logistics → Operations → Service B. Inbound Logistics → Outbound Logistics → Marketing & Sales C. Inbound Logistics → Operations → Outbound Logistics D. Inbound Logistics → Operations → Shipping

C. Inbound Logistics -> Operations -> Outbound Logistics

Accounting information systems are: A. Always computerized. B. Report only accounting information. C. Records, processes and reports D. Are for computer games

C. Records, processes, and reports

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

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

Certified Information Technology Professional (CITP)

T/F Accounting Information Systems at this date are all computerized

False

T/F Accounting and Finance is a primary activity in the value chain

False

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

D. Certified Information Systems Auditors (CISA)

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

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 organized in a meaningful way to be 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 1040 tax form from the AIS to be delivered to the IRS 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

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

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

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

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

c. discretionary information

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

c. operator

According to a recent study, the informate-up IT strategic role is defined as systems that: A. replacing human labor in automating business processes B. provides 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 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 does not include: A. Firm Infrastructure B. Human Resource Management C. Procurement D. Accounting and Finance

d. accounting and finance

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. replacing human labor in automating business processes B. provides 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