ACC 307 Chapter 1 quiz problems
value of information
(benefits produced by the information) - (cost of producing the information)
A firm, its suppliers, and its customers collectively form which of the following? a. supply chain b. value chain c. ERP system d. AIS
A
Early decision models used with structured decisions, such as inventory reordering and production scheduling, emphasized finding the structure of the decision and programming as much of it as possible. More recent models have been developed to support unstructured decision processes. Models of the latter type are called A. Decision support systems. B. Rational decision models. C. Management information systems. D. Systems analysis techniques.
A
How is an accounting information system (AIS) distinguished from a management information system (MIS)? A. An AIS is a subsystem within a MIS. B. An AIS is control oriented; a MIS is used exclusively for planning. C. An AIS deals with financial information; a MIS handles all other information. D. An AIS may be either manual or computer based; a MIS is computer based.
A
Which group of characteristics best describes decision support systems? A. Analytical models, specialized databases, interactive computer-based modeling processes, and the decision maker's own insights and judgments. B. Programming models and interactive computer-based modeling processes. C. Analytical models, applications models, and interactive computer-based modeling processes. D. Expert systems, model-based information, electronic data interchange, and the decision maker's own insights and judgments.
A
Which of the following is NOT a means by which information improves decision making? a. increases information overload b. reduces uncertainty c. provides feedback about the effectiveness of prior decisions d. identifies situation requiring management action
A
Which of the following is NOT a means by which information improves decision making? (p.16) a.Increasing information overload b.Reducing uncertainty c.Providing feedback about the effectiveness of prior decisions d.Identifying situations requiring management action
A
Which of the following is the best example of the use of a decision support system? (Gleim) a)A manager uses a PC-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule. b)An auditor uses a generalized audit software package to retrieve several purchases orders for detailed vouching c)A manager uses the query language feature of a DBMS to compile a report showing customers whose average purchase exceeds $25,000 d)An auditor uses a PC-based word processing software package to modify an internal control questionnaire for a specific audit engagement.
A
Which of the following statements regarding decision support systems is generally true? A. Decision support systems facilitate solving relatively unstructured problems. B. Decision support systems are usually developed most successfully by using a system development life cycle approach. C. A decision support system should be designed to provide specific answers and a predefined sequence of analysis. D. A decision support system best supports very structured applications.
A
Which one of the following terms best describes a decision support system (DSS)? A. Interactive system. B. Formalized system. C. Accounting information system. D. Management reporting system.
A
A bank implemented an expert system to help account representatives consolidate the bank's relationships with each customer. The expert system has A. Passive data elements. B. A knowledge base. C. Distinct input-output variables. D. A sequential control structure.
B
A decision support system A. Searches for unexpected relationships among data. B. Allows for certain aspects of a problem to be preprogrammed. C. Provides immediate information about an organization's critical success factors. D. Improves management productivity by automating the decision-making process.
B
A report telling how well all approved vendors have performed in the prior 12 months is information that is MOST needed in which business process? a. paying vendors b. acquiring inventory c. selling mercy d. paying employees
B
All of the following are examples of a DSS, except for a: (CPA) a)Financial modeling application b)Transaction processing system c)Database query application d)Sensitivity analysis application
B
Data differ from information in which way?(p.16) a.Data are output, and information is input b.Information is output, and data are input c.Data are meaningful bits of information d.There is no difference
B
In the value chain concept, upgrading IT is considered what kind of activity? a. primary activity b. support activity c. service activity d. structured activity
B
Management information systems represent a significant investment by most businesses. A primary concern of management is that the system A. Was designed using CASE (Computer-Aided Software Engineering) tools rather than traditional methods. B. Meet the business needs of the organization. C. Employ the latest technology. D. Might consume too much time and money during testing.
B
The purchasing department buys cleaning compound from four different companies. The computerized purchasing system uses a decision table to select a vendor based on continually changing costs, delivery dates, and past experience. This is an example of a(n) A. Parallel simulation. B. Expert system. C. Base case system evaluation. D. Chargeback system.
B
Which business cycle does not involve cash? a)Revenue b)Production c)Human resources d)Expenditure e)Financing
B
Which of the following features is classified as part of an expert system? A. Automatic obligation of budget funds as soon as an order is issued. B. Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and delivery time. C. Use of electronic mail to route and approve purchase requisitions. D. Issuance of purchase requisition notices as soon as the on-hand balance reaches the reorder point.
B
Which of the following is a function of an AIS? a. reducing the need to identify a strategy and strategic position b. transforming data into useful information c. allocating organizational resources d. automating all decision making
B
Which of the following is a function of an AIS? (p.16) a.reducing the need to identify a strategy and strategic position b.transforming data into useful information c.allocating organizational resources d.automating all decision making
B
Which of the following is the best example of the use of a decision support system (DSS)? A. An auditor uses a personal-computer-based word processing software package to modify an internal control questionnaire for a specific audit engagement. B. A manager uses a personal-computer-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule. C. A manager uses the query language feature of a database management system (DBMS) to compile a report showing customers whose average purchase exceeds $2,500. D. An auditor uses a generalized audit software package to retrieve several purchase orders for detailed vouching.
B
Which one of the following statements about a management information system (MIS) is false? A. A MIS is often fed with input by a transaction processing system. B. A MIS is best suited to solve problems when uncertainty is great and reporting requirements are ill-defined. C. A MIS supports day-to-day operations by aggregating and formatting data about an organization's transactions. D. The information produced by a MIS is made available to middle management for use in controlling an organization's activities.
B
Which transaction cycle includes interactions between an organization and its suppliers? a. revenue cycle b. expenditure cycle c. human resources/payroll cycle d. general ledger & reporting system
B
In which cycle does a company ship goods to customers? a. production cycle b. financing cycle c. revenue cycle d. expenditure cycle
C
Which of the following is a primary activity in the value chain? A. purchasing B. accounting C. post-sales service D. human resource management
C
Which one of the following incorporates making the best decisions possible, using a logical approach by asking a series of questions, by using reasoning, and by allowing subjective inputs and outputs? A. Decision support systems. B. Teleprocessing. C. Expert systems. D. Multi-networking.
C
Which one of the following statements about an accounting information system (AIS) is false? A. The information produced by AIS is made available to all levels of management for use in planning and controlling an organization's activities. B. AIS supports day-to-day operations by collecting and sorting data about an organization's transactions. C. AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements. D. AIS is often referred to as a transaction processing system.
C
Which one of the following statements about an accounting information system is INCORRECT? (CPA) a)An AIS supports day-to-day operations by collecting and storing data about an organization's transactions. b)The information produced by AIS is made available to all levels of management for use in planning and controlling an organization's activities c)An AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements. d)An AIS is often referred to as a transaction processing system.
C
which of the following is NOT a characteristic that makes information useful? A. it is reliable B. it is timely C. it is inexpensive D. it is relevant
C
Give cash and get raw materials is an event in the _____ cycle, and give labor and get finished goods is an event in the ______ cycle. a)Financing, production b)Financing, human resources c)Revenue, production d)Expenditure, production
D
In business information systems, the term "stakeholder" refers to which of the following parties (Gleim, CPA Adapted)? a)The management team responsible for the security of the documents and data stored on the computers or networks. b)Information technology personnel responsible for creating the documents and data stored on the computers and networks. c)Authorized users who are granted access rights to the documents and data stored on the computers and networks. d)Anyone in the organization who has a role in creating or using the documents and data stored on the computers and networks.
D
The four major tasks that any system must perform are A. Input, backup, output, and storage. B. Input, transformation, output, and maintenance. C. Input, transformation, storage, and feedback. D. Input, transformation, output, and storage.
D
Which of the following features is classified as part of an expert system? (Gleim) a)Use of electronic mail to route and approve purchase requisitions b)Automatic obligation of budget funds as soon as an order is issued c)Issuance of purchase requisition notices as soon as the on-hand balance reaches the reorder point d)Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and deliver time.
D
Which of the following statements about an EIS is INCORRECT? The EIS (CPA) a)Provides top executives with immediate and easy access to information in a highly interactive format b)Helps executives monitor business conditions in general and assists in strategic planning to control and operate the company. c)Is designed to accept data from different sources; to combine, integrate, and summarize the data; and to display this data in a format that is easy to understand and use d)Is likely to be one of the most widely used and the largest of the information subsystems in a business organization
D
Which of the following terms best describes a payroll system? A. Database management system (DBMS). B. Decision support system (DSS). C. Enterprise resource planning (ERP) system. D. Transaction processing system (TPS).
D
Which one of the following distinguishes a management information system from a transaction processing system? A. Automation of routine transaction processing. B. Maintenance of a structured database. C. Production of reports to support operations. D. Capability to provide data for decision-making support.
D
business model
a framework for creating economic, social, and/or other forms of value
business processes
a set of related, coordinated, and structured activities and tasks that are performed by a person or by a computer or machine, and that help accomplish a specific organizational goal
business intelligence
a set of technologies and processes that use data to understand and analyze business performance, which includes data access and reporting and analytics
system
a set of two or more interrelated components interacting to achieve a goal
information systems
a system of persons, data records, and activities that process the data and information in an organization, and it includes the organization's manual and automated processes
transaction
an agreement between two entities to exchange goods or services or any other event that can be measured in economic terms by an organization
decision support systems
an interactive computer-based information system that combines models and data to resolve unstructured to semi-structured problems with extensive user involvement ex: google, GPS
knowledge
application of data and information intended to be useful when someone memorizes information, then they have amassed ________.
expert systems & artificial intelligence
computer systems that apply reasoning methods to data in a specific relatively structured area to render advice or recommendations, much like a human expert
executive information system
computerized systems that are specifically designed to support executive work (top managers) specialized form of DSS
wisdom
extrapolative process- constructing new data points beyond the range of known data points
data
facts that are stored in an information system facts that are collected, recorded, stored, and processed by an information system do not have meaning
list of business processes (transaction cycles)
financing cycle (give cash, get cash) expenditure cycle (give cash, get raw materials) human resources/payroll cycle (give cash, get labor) production cycle (give labor/raw materials, get finished goods) revenue cycle (give goods, get cash)
understanding
in interpolative process- constructing new data points within the range of known data points difference between this and knowledge is that knowledge is memorizing, whereas this is learning
transaction processing cycle
involved the daily processing of transactions captures the fundamental data that reflect the economic life of an organization
information overload
limits to the amount of information the human mind can absorb and process occurs when those limits are passed, resulting in decline in decision-making quality
goal conflict
occurs when components act in their own interest without regard to overall goal
goal congruence
occurs when components acting in their own interest contribute toward overall goal
information
process data with meanings data that has been organized and processed to provide meaning and improve the decision making can be useful
management information systems
receives input from a transaction processing system, aggregates it, and reports it in a format useful by middle managers
8 levels of business intelligence
standard reports AD HOC reports query drilldown alerts statistical analysis forecasting predictive modeling optimization
business analytics
the extensive use of data, statistical, and quantitative analysis, explanatory and predictive models, and fact-based management to drive decision and actions
procedural
the knowledge exercised in the performance of some task how to gain or develop: practice
declarative
the knowledge expressed in declarative sentences or indicative propositions how to gain or develop: memorization
reasoning
the knowledge used in problem solving or decision making how to gain or develop: experience
data mining
the process of discovering new patterns from large data sets involving methods from statistics, artificial intelligence, and database management
