MC questions Chapter 1, 7, 16

Which statement about blockchain technology is false? A record of a transaction can't be added to the blockchain without network consensus. A blockchain has nodes, which consist of the computers, laptops, or servers of all participants in the blockchain. Blockchain transactions can be updated at any time by participants in the blockchain. Blocks of ledgers are stored on nodes in the blockchain.

Blockchain transactions can be updated at any time by participants in the blockchain.

Which underlying technology does blockchain not depend on? Network connectivity Cryptology Centralized ledgers Distributed ledgers

Centralized ledgers

Which statement about public blockchains is false? Participants need permission to join public blockchains. Public blockchains require proof of work. Public blockchains are transparent. Public blockchains are immutable.

Participants need permission to join public blockchains

Which of the following is true about denial-of-service attacks? 1. A denial-of-service attack takes advantage of a network communications protocol to tie up the server's communication ports so that legitimate users cannot gain access to the server. 2. If the denial-of-service attack is successful, the attacker can gain access to unprotected resources on the server. a. 1 only b. 2 only c. Both 1 and 2 d. Neither 1 nor 2

a. 1 only

How does data differ from information? a. Data is input; information is output. b. Information is input; data is output. c. Data is ready to be used; information must be processed. d. Information is generated by business events; data is used for decision making.

a. Data is input; information is output.

Which of the following is not one of the ways that the Equifax hackers hid their suspicious network activity? a. Purchased subscriptions to Equifax's third-party software service b. Created profiles using Equifax employee credentials c. Purchased remote computing services from other countries d. Blended into normal activity with encrypted communication channels

a. Purchased subscriptions to Equifax's third-party software service

Within the context of qualitative characteristics of accounting information, which of the following is a fundamental qualitative characteristic? a. Relevance b. Timeliness c. Comparability d. Confirmatory value

a. Relevance

In which of the three types of business processes in the basic business model does a business deliver products to its customers? a. Sales and collections b. Acquisitions and payments c. Conversion d. Delivery contracts

a. Sales and collections

What is the primary difference between a virus and a worm? a. Viruses require human interaction, but worms replicate without assistance. b. Viruses must be activated before a worm can replicate. c. Viruses are only effective on Windows operating systems. d. Viruses are a type of malware, but worms are a type of denial-of-service attack

a. Viruses require human interaction, but worms replicate without assistance.

A synonym for faithful representation is a. accuracy. b. verifiability. c. neutrality. d. understandability.

a. accuracy.

IP spoofing disguises the ______ source address with the ______ IP address. a. attacker's; target's b. target's; attacker's c. recipient's; target's d. attacker's; recipient's

a. attacker's; target's

At Mega-Construction, secured payments are sent to suppliers as soon as materials are received and scanned. Many attributes of the received goods are also scanned and recorded immediately on receipt (e.g., time received, quality indicators, item location through GPS functionality). This information is shared through a distributed ledger. Mega-Construction is likely using _______________. a. blockchain b. TCP/IP c. bitcoin d. STAMP

a. blockchain

Using the principles of a feasibility study, including a cost-benefit analysis, select the use case that is the least feasible for robotic process automation (RPA). The RPA solution a. copies and pastes the prior year's annual report disclaimer verbiage into the current year's document. b. reviews employee expense reimbursements and sends an email alert to finance employees for investigation upon detecting a red flag for fraud. c. automatically retrieves and opens vendor invoice files received via email, identifies the key data in each invoice, and copies that data into the accounts payable system. d. automatically retrieves findings and recommendations directly from the internal audit system for each engagement and copies the text into a Power Point presentation.

a. copies and pastes the prior year's annual report disclaimer verbiage into the current year's document.

Disruptive technologies a. force companies to adapt their operations to stay competitive. b. have entered the market but are not yet regularly used by companies. c. are difficult to analyze using traditional software tools. d. may eventually become emerging technologies

a. force companies to adapt their operations to stay competitive

Disruptive technologies: a. force companies to adapt their operations to stay competitive b. have entered the market but are not yet regularly used by companies c. are difficult to analyze using traditional software tools d. may eventually become emerging technologies

a. force companies to adapt their operations to stay competitve

Anna wires money from her bank account to her brother Garin in Australia for a fee of $35. The role of her bank is that of a. intermediary. b. miner. c. blockchain participant. d. payee.

a. intermediary.

The Cybersecurity and Infrastructure Security Agency (CISA) recommends that companies facing cyberattacks that include ransom demands a. refuse to pay to discourage future attacks. b. pay immediately to protect public interests. c. consult lawyers before negotiating with criminals. d. consult NIST 800-53 for guidelines on negotiations.

a. refuse to pay to discourage future attacks.

McDonald's could have avoided massive financial losses from changing its conversion processes if it had a. used data to analyze market trends and customer desires. b. used robots to create the made-to-order meals. c. spent more money on marketing. d. changed them sooner.

a. used data to analyze market trends and customer desires.

In which of the three types of business processes in the basic business model does a business interact with vendors? a. Sales and collections b. Acquisitions and payments c. Conversion d. Accounts receivable

b. Acquisitions and payments

Which of the following is not a characteristic that makes information useful? a. Relevant b. Cost-effective c. Timely d. Neutral

b. Cost-effective

Compared to traditional ledgers, blockchain systems have the following advantage from a data perspective: a. Data retention: Backups of blockchain data are more restrictive. b. Data security: A majority of participants in a blockchain must engage in fraud malfeasance for the fraud to be successful. c. Data verification: Blockchain transactions are approved by an accounting manager. d. Data integrity: A blockchain system relies on an object-oriented database for data storage.

b. Data security: A majority of participants in a blockchain must engage in fraud malfeasance for the fraud to be successful.

A tire company is evaluating the following measures: customer lifetime value (the value the company realizes from each customer), customer acquisition cost (cost of acquiring each customer), customer satisfaction and retention, and number of new and existing customers. Which of the following best describes this initiative? a. Data analytics b. KPIs c. Audit data analytics d. Decision making

b. KPIs

Which of these business events results in an accounting transaction? a. Monitor production defects b. Receive damaged goods back from customer c. Evaluate employee performance d. Measure carbon footprint

b. Receive damaged goods back from customer

Which of the following is an important outcome of the use of blockchain? a. Closed-form accounting b. Reduced auditing and compliance costs c. Increased centralization of accounting systems d. Impenetrable authentication

b. Reduced auditing and compliance costs

Which of the following statements about robotic process automation (RPA) is false? a. Follows pre-programmed rules b. Simulates human decision making c. Suitable for repetitive tasks d. Always performs programmed tasks in the same way

b. Simulates human decision making

Data analytics is the process of using technology to transform a. business event data into business process data. b. data into useful information. c. accounting data into business data. d. unreliable data into reliable data.

b. data into useful information.

Business transformation through blockchain is likely to occur _______________ and requires _________________ adoption. a. quickly; supplier b. eventually; widespread c. eventually; supplier d. quickly; widespread

b. eventually; widespread

Emerging technologies: a. will always become disruptive technologies. b. may become disruptive if successful. c. will be adopted by companies to stay competitive. d. have entered the market and are now regularly used by companies.

b. may become disruptive if successful.

Incorrect sender addresses are red flags indicating possible a. eavesdropping. b. phishing. c. Dumpster diving. d. ping sweeps.

b. phishing.

In which of the three types of business processes in the basic business model does a business transform resources into a product or service that customers want? a. Sales and collections b. Acquisitions and payments c. Conversion d. Accounts receivable

c. Conversion

Which of the following is not a method of attack used in the process of a full cyberattack? a. Reconnaissance b. Disruption c. Distancing d. Access

c. Distancing

Which of the following is not an example of gamification? a. Building graphics and video displays into simulations to teach workers about dangers at a factory b. A competition among salespeople to earn points c. Dressing up as a cow to promote a fast-food restaurant d. Creating a game to teach students about managerial accounting

c. Dressing up as a cow to promote a fast-food restaurant

Autonomous Things inlcude (AuT) a. ERP b. Gamification c. Drones d. Head mounted display

c. Drones

Which of the following statements about artificial intelligence is false? a. Enables programmed tasks to evolve through self-learning b. Performs tasks associated with intelligent beings c. Ideal for repetitive tasks d. Simulates human decision making

c. Ideal for repetitive tasks

Which of these business events does not result in an accounting transaction? a. Declare a dividend b. Pay a dividend c. Order supplies from vendor d. Deliver product to customer

c. Order supplies from vendor

Which type of attack do network administrators not have control over preventing? a. Logical attacks b. Reconnaissance attacks c. Physical attacks d. Access attacks

c. Physical attacks

Which of these statements about information systems is correct? a. They capture only financial data. b. They report information in standard format only. c. They collect, process, store, and analyze data and report information. d. They are difficult to analyze using traditional software tools.

c. They collect, process, store, and analyze data and report information.

In the iterative relationship of data-driven decision making, what occurs after business events create data? a. Management decision making b. Business process updates c. Transformation of raw data into useful information d. Control activities through monitoring

c. Transformation of raw data into useful information

From the perspective of the accounting profession, blockchain technology is a. an emerging technology. b. a mature and widely accepted technology. c. a disruptive technology. d. a technology that requires trusted third-party intermediaries

c. a disruptive technology

In 2017, Equifax made global news when hackers a. used Trojan horses to access its network. b. held a system hostage for ransom. c. accessed financial data of millions of Americans. d. deleted millions of records containing customer data.

c. accessed financial data of millions of Americans.

The IT department at Piggy Parts BBQ has recently learned of phishing attempts that rely on social engineering to break into its financial systems. Information about these attempts should be communicated to a. internal auditors. b. other personnel. c. all personnel. d. support functions.

c. all personnel.

The two types of outputs that are generated with data created during a business event are reports and a. timesheets. b. invoices. c. analytics. d. decisions.

c. analytics.

Managing cyber risks requires a. blocking all cyber breaching by relying on preventive controls. b. blocking all cyber breaching by relying on detective and corrective controls. c. attempting to prevent cyber breaching but addressing those that occur through detective and corrective controls. d. attempting to prevent cyber breaching but addressing those that occur through preventive controls.

c. attempting to prevent cyber breaching but addressing those that occur through detective and corrective controls.

Roles for accountants in data include all of the following except a. assessing the quality and integrity of data. b. integrating data into evaluations of internal controls. c. building big data systems. d. data analytics.

c. building big data systems.

Spirit Line Beverages sponsors a contest for its programmers, with prizes for the winning teams. This is an example of ___________________ that is intended to _______________________. a. online marketing; build social media data b. industrial espionage; build internal data c. gamification; build motivation and team rapport d. data mining; use big data

c. gamification; build motivation and team rapport

Emerging technologies: a. have entered the market and are now regularly used by companies b. will be adopted by companies to stay competitive. c. may become disruptive if successful. d. will always become disruptive technologies

c. may become disruptive if successful

In ______ tailgating, the authorized user holds the door open for the tailgater. a. accidental b. spoofing c. polite d. forced

c. polite

The information quality characteristic that refers to knowledgeable and independent people reaching agreement about whether information is representative of a real-world fact or occurrence is a. relevance. b. faithful representation. c. verifiability. d. reliability.

c. verifiability.

When adopting new technologies, companies can safeguard their businesses from related risks by implementing policies and procedures and internal controls that identify, assess, and mitigate the risk. These include all of the following except a. establishing an emerging technology center of excellence as part of the organizational structure. b. auditing emerging technologies. c. waiting to be one of the last companies to adopt a technology. d. conducting enterprise-wide risk assessments

c. waiting to be one of the last companies to adopt a technology

When adopting new technologies, companies can safeguard their businesses from related risks by implementing policies and procedures and internal controls that identify, assess, and mitigate the risk. These include all of the following except: a. establishing an emerging technology center of excellence as part of the organizational structure. b. auditing emerging technologies. c. waiting to be one of the last companies to adopt a technology d. conducting enterprise-wide risk assessments

c. waiting to be one of the last companies to adopt a technology.

Which of the following is not a business event? a. Hire a new employee. b. Order raw materials. c. Deliver goods to customer. d. Accounts receivable.

d. Accounts receivable.

Who plays a pivotal role in a company's cybersecurity program? a. Chief information officer (CIO) b. Chief financial officer (CFO) c. Chief executive officer (CEO) d. All of these

d. All of these

Accounting information systems differ from larger business information systems in that they a. consist of a subset of the data stored in the entire information system. b. focus on data from business events involving exchanges of economic resources. c. collect, process, store, and analyze data and report information. d. All of these are correct.

d. All of these are correct.

Which of the following is true? a. Bitcoin trading is an example of robotic process automation. b. Bitcoin trading uses gamification. c. Bitcoin trading uses extended reality. d. Bitcoin trading uses blockchain technology.

d. Bitcoin trading uses blockchain technology.

IP spoofing is often used as part of which of the following? a. Viruses b. Trojan horses c. Worms d. Denial-of-service attacks

d. Denial-of-service attacks

Which of the following KPIs (ratios) would be used to evaluate a company's profitability? a. Current ratio b. Inventory turnover ratio c. Debt to total assets ratio d. Gross margin ratio

d. Gross margin ratio

Which of the following is an important skill related to data analytics that new accounting professionals need to learn? a. How to code programming languages b. How to use statistical algorithms c. Web design d. How to recognize data quality issues

d. How to recognize data quality issues

______ identifies active IP addresses, while ______ identifies the types of communication occurring on the network. a. Eavesdropping; phishing b. Phishing; port scanning c. Port scanning; ping sweeping d. Ping sweeping; port scanning

d. Ping sweeping; port scanning

Which of the following is a computer program that appears to be legitimate but performs an illicit action when it is run? a. Redundant verification b. Parallel count c. Web crawler d. Trojan horse

d. Trojan horse

A company's web server has been overwhelmed with a sudden surge of false requests that caused the server to crash. The company has most likely been the target of a. spoofing. b. piggybacking. c. an eavesdropping attack. d. a denial-of-service attack.

d. a denial-of-service attack.

Cyberattacks are a. preventable. b. addressed in the original COSO pronouncements. c. assumable. d. inevitable.

d. inevitable.

The difference between eavesdropping and on-path attacks is that eavesdropping is ______ the communication, and an on-path attack is ______ the communication. a. writing over; injecting into b. listening to; writing over c. injecting into; listening to d. listening to; injecting into

d. listening to; injecting into

An auditor was examining a client's network and discovered that the users did not have any password protection. Which of the following would be the best example of a strong network password? a. trjunpqs b. 34787761 c. tr34ju78 d. tR34ju78

d. tR34ju78