AIS Exam #2

An adjusting entry to record interest revenue that has been earned but not yet received is an example of which of the following? a. Accrual b. Deferral c. Estimate d. Revaluation

A. Accrual

Increased error rates, disruptions, and sabotage are examples of which of the following? a. aggression b. avoidance c. projection d. payback

A. Aggression

What is the process of discontinuing an old system as soon as a new one is introduced? a. direct conversion b. parallel conversion c. phase-in conversion d. pilot conversion

A. Direct Conversion

A document given to each employee that shows gross pay, net pay, and itemizes all deductions both for the current pay period and for the year-to-date A. Earnings Statement B. Time Card C. Payroll Register

A. Earnings Statement

Which of the following describes designing a program from the top down or more detailed levels? a. hierarchical program design b. top-down program design c. parallel program design d. unstructured program design

A. Hierarchical program design

A Cost accounting method that assigns costs to specific batches or production runs and it used when the product or service consists of uniquely identifiable items A. Cost Driver B. Job Order Costing C. Production Order

A. Job-Order Costing

A document that records labor costs associated with manufacturing a product. A. Job-Time Ticket B. Cost Driver C. Operations List

A. Job-Time Ticket

which of the following is an important part of the audit trail? a. journal vouchers b. flexible budgets c. trial balance d. data warehouse

A. Journal Vouchers

The set of journal entries that updated the general ledger A. Journal Voucher File B. Balanced scorecard C. Instance Document

A. Journal voucher file

Which system is most likely to be used by a company that mass-produces large batches of standard items in anticipation of customer demand? a. MRP-11 b. lean manufacturing c. activity-based costing d. throughput

A. MRP-11

A list of each employee's gross pay, payroll deductions, and net pay in a multicolumn format A. Payroll Register B. Payroll Service Bureau C. Payroll Clearing Account

A. Payroll Register

A monthly payroll register showing all hourly employees, the number of hours they worked, their deductions, and their net pay is most likely which of the following? a. scheduled report b. special-purpose analysis c. triggered exception report d. demand report

A. Scheduled Report

What is often the most significant problem a company encounters in designing, developing, and implementing a system? a. the human element b. technology c. legal challenges d. planning for the new system

A. The human element

Used to record time worked by an hourly wage employee A. Time Card B. Time Sheet C. Payroll Register

A. Time Card

A file containing a set of customized tags to define new XBRL elements that are unique to a specific organization A. XBRL Extension Taxonomy B. XBRL Style Sheet C. XBRL Link base

A. XBRL Extension Taxonomy

A file that defines relationships among XBRL elements A. XBRL Link base B. XBRL Taxonomy C. XBRL Style Sheet

A. XBRL Link base

A list of the raw materials used to create a finished product A. Production Order B. Bill of Materials C. Operations List

B. Bill of Materials

Chapter 10 The developers of your new system have proposed two different AIS designs and have asked you to evaluate them. This evaluation process is most likely to be a part of which SDLC step? a. systems analysis b. conceptual design c. physical design d. implementation and conversion e. operation and maintenance

B. Conceptual Design

From where do adjusting entries usually come? a. treasurer b. controller c. various accounting cycle subsystems, such as sales order entry d. unit managers

B. Controller

Physical (detailed) system designs C. Identifying alternative system designs B. Developing program and process controls F. Testing the system A. Writing Operating procedure manuals

B. Developing program and process controls A. Writing Operating procedure manuals

Which document captures information about labor used in production? a. move ticket b. job-time ticket c. operations list d. bill of materials

B. Job Ticket Time

Which of the following is the long-range planning document that specifies what the system will consist of, how it will be developed, who will develop it, how needed resources will be acquired, and its overall vision? a. steering committee agenda b. master plan c. systems development cycle d. project development plan

B. Master Plan

A document used to authorize removal of raw materials from inventory? A. Production order B. Materials Requisition C. Move Ticket

B. Materials Requisition

Determining whether the organization has access to people who can design, implement, and operate the proposed system is referred to as which of the following? a. technical feasibility b. operational feasibility c. legal feasibility d. scheduling feasibility e. economic feasibility

B. Operational Feasibility

Which of the following is the planning technique that identifies implementation activities and their relationships, constructs a network of arrows and nodes, and then determines the critical path through the network? a)Gannt chart b) PERT diagram c) physical model d) data flow diagram

B. PERT Diagram

Traditionally accountants have been most involved with which portion of the HRM/ Payroll cycle? a. hiring b. payroll c. training d. performance evaluation

B. Payroll

An organization that processes payroll A. Payroll Clearing Account B. Payroll Service Bureau C. Payroll Register

B. Payroll Service Bureau

An individual financial statement item A. Balanced Scorecard B. XBLR Element C. XBRL Style Sheet

B. XBLR Element

Which of the following is designed primarily to improve the efficiency of financial reporting? a. XML b. XBRL c. IFRS d. the balanced scorecard

B. XBRL

A file that defines the attributes of XBRL elements A. XBRL Link Base B. XBRL Schema C. XBRL Style sheet

B. XBRL Schema

A set of files that defines XBRL elements and specifies the relationships among them. A. XBRL Extension Taxonomy B. XBRL Taxonomy C. XBRL Style Sheet

B. XBRL Taxonomy

Which control procedure would be most effective in detecting the failure to prepare a paycheck for a new employee before paychecks are distributed? a. validity checks on the employee number on each time card b. record counts of time cards submitted and times cards processed c. zero-balance check d. use of a separate payroll bank account

B. record counts of time cards submitted and times cards processed

Which of the following describes the systems testing approach that uses real transactions and files rather than hypothetical ones? a. walk-through b. processing of test transactions c. acceptance test d. parallel conversion test

C. Acceptance Test

A detective control that can be used to trace changes in general ledger account balances back to source documents A. Flexible Budget B. Responsibility Accounting C. Audit Trail

C. Audit Trial

Which document lists the components needed to manufacture a specific product? A. Operations List B. Master Production Schedule C. Bill of Materials D. Production Order

C. Bill of Materials

Which of the following is an advantage of bar-coding over RFID? a. speed b. accuracy c. cost d. safety

C. Cost

Which department should have responsibility for authorizing pay rate changes? a. timekeeping b. payroll c. HRM d. accounting

C. HRM

A document that specifies how much of a finished good to be produced during a specific time period A. Job-Time Ticket B. Job-Order Costing C. Master Production Schedule

C. Master Production Schedule

Special General ledger account used for payroll processing A. Time Card B. Time Sheet C. Payroll Clearing Account

C. Payroll Clearing Account

Which control procedure is probably least effective in reducing the threat of inventory loss? a. limited physical access to inventory b. documenting all transfer of inventory within the company c. regular materials usage reports that highlight variances from standards d. periodically counting inventory and investigating any discrepancies between those counts and recorded amounts

C. Regular materials usage reports that highlight variances from standards

Used to record the activities performed by a salaried professional for various clients A. Time Card B. Payroll Register C. Time Sheet

C. Time Sheet

Which of the following is most likely to help improve program development? a. physical model b. IT strategic plan c. walk-through d. record layout

C. Walk-Through

Which graph design principle is most important for ensuring that financial data is accurately interpreted? a. including a title that summarizes the point of the graph b. attaching data values to specific elements in the graph c. starting the y-axis of the graph at zero d. using different colors for different variables

C. starting the y axis of the graph at zero.

Use of a payroll service bureau or PEO provides which of the following benefits? a. fewer staff needed to process payroll b. lower cost of processing payroll c. less need for developing and maintaing payroll tax expense d. all of the above

D. All of the above

To maximize effectiveness of internal controls over payroll, which of the following persons should be responsible for distributing employee paychecks? a. departmental secretary b. payroll check c. controller d. departmental supervisor

D. Departmental Supervisor

Which document lists the current amount and the year to date totals of gross pay, deductions, and net pay for one employee? a. payroll register b. time card c. paycheck d. earnings statement

D. Earnings Statement

The development of an MPS would be most effective in preventing which of the following threats? a. recording and posting entries b. loss of inventory c. production of poor-quality goods d. excess production

D. Excess Production

Which of the following is not a consideration in input design? a. Which errors are possible, and how can they be detected and corrected? b. How can data be entered c. Which format efficently captures the input data with the least effort and cost? d. How often should the system produce reports?

D. How often should the system pro due reports

Online processing is most useful for which of these tasks? a. preparing payroll checks b. reconciling job0time tickets and time cards c. paying payroll tax obligations d. making changes in employee benefit choices

D. Making changes in employee benefit choices

Which of the following is the correct order of the steps in physical systems design? a. input, file and database, output, controls, procedures, program b. file and database, output, input, procedures, program, controls c. output, input, file and database, procedures, program, controls d. output, file and database, input, program, procedures, controls

D. Output, file and database, input, program, procedures, controls

The purchasing department is designing a new AIS. Who is best able to determine departmental information requirements? a. steering committee b. controller c. top management d. purchasing department

D. Purchasing Department

What is the number of good units produced in a given period of time called? a. productive capacity b. productive processing time c. yield d. throughput

D. Throughput

Which of the following is the correct order of the steps in system analysis? a. initial investigation, determination of information needs and system requirements, feasibility study, system survey b. determination of information needs and system requirements, system survey, feasibility study, initial investigation c. system survey, initial investigation, determination of information needs and system requirements, feasibility study d. initial investigation, system survey, feasibility study, determination of information needs and system requirements

D. initial investigation, system survey, feasibility study, determination of information needs and system requirements

Which of the following is not one of the tangible or intangible benefits a company might obtain from a new system? a. cost savings b. improved customer service and productivity c. improved decision making d. improved data processing e. All are benefits of a new system

E. All Benefit of a new system

Conceptual (general) systems design E. Identifying external and administrative controls L. Conducting a feasibility analysis B. Developing program and process controls D. Developing a logical model of the system C. Identifying alternative system designs

E. Identifying external and administrative controls D. Developing a logical model of the system C. Identifying alternative system designs

What is the purpose of the conceptual systems design report? a. to guide physical systems design activities b. to communicate how management and user information needs are met c. to help the steering committee assess system feasibility d. a and b e. a,b, and c

E. a,b, and c

Implementation and Conversion G. Training personnel H. Evaluating the existing system J. Modifying and altering programs A. Writing operating procedure manuals F. Testing the System

G. Training personnel F. Testing the System

Operation and Maintenance K. Analyzing total quality management performance measures C. Identifying alternative system designs B. Developing program and process controls J. Modifying and altering programs I. Conducting a feasibility analysis

K. Analyzing total quality management performance measures J. Modifying and altering programs I. Conducting a feasibility analysis

System Analysis M. Aligning AIS development plans with business objectives A. Writing operating procedure manuals L. Conducting a feasibility analysis G. Training Personnel K. Analyzing total quality management performance measures H. Evaluating the existing system

M. Aligning AIS development plans with business objectives L. Conducting a feasibility analysis K. Analyzing total quality management performance measures H. Evaluating the existing system

Resistance is often a reaction to the methods of instituting change rather than to change itself. True or False

True

Which of the following is NOT a benefit of outsourcing? a) It offers a great deal of flexibility because it is relatively easy to change outsourcers b) it can provide access to the expertise and special services provided by outsourcers c) it allows companies to move to a more sophisticated level of computing at a reasonable cost d) it is a cost-effective way to handle the peaks and valleys found in seasonal businesses

a) It offers a great deal of flexibility because it is relatively easy to change outsourcers

To compare system performance, a company can create a data processing task with input, processing, and output jobs. This task is performed on the systems under consideration and the processing times are compared. The AIS with the lowest time is the most efficient. What is this process called? a) benchmarking b) requirements costing c) point scoring d) performance testing

a) benchmarking

Companies that buy rather than develop an AIS must still go through the systems development life cycle a) true b) false

a. True

Which of the following statements is FALSE? a) As a general rule, companies should buy rather than develop software if they can find a package that meets their needs b) As an AIS increases in size and complexity, there is a greater likelihood that canned software can be found that meets user needs c) A company should not attempt to develop its own custom software unless experienced, in-house programming personnel are available and the job can be completed less expensively on the inside d) As a general rule, a company should develop custom software only when it will provide a significant competitive advantage

b) As an AIS increases in size and complexity, there is a greater likelihood that canned software can be found that meets user needs

Which of the following is NOT an advantage of prototyping? a) better definition of user needs b) adequately tested and documented systems c) higher user involvement and satisfaction d) faster development time

b) adequately tested and documented systems

Which of the following statements is true? a) because the AIS is so crucial, companies never outsource parts of the AIS b) most mainframe outsourcing contracts are for two to three years and cost thousands of dollars a year c) Outsourcers often buy the client's computers and hire all or most of its information systems employees d) Only companies struggling to survive and wanting a quick infusion of cash from selling their hardware use outsourcing

c) Outsourcers often buy the client's computers and hire all or most of its information systems employees

When a company is buying large and complex systems, vendors are invited to submit systems for consideration. what is such a solicitation called? a) request for quotation b) request for system c) request for proposal d) good-faith estimate

c) request for proposal

When is it most appropriate to use prototyping? a) when there is little uncertainty about the AIS b) when it is clear what users' needs are c) when the final AIS cannot be clearly visualized because the decision process is still unclear d) when there is a very low likelihood of failure

c) when the final AIS cannot be clearly visualized because the decision process is still unclear

Which of the following is an important supporting document to authorize the transfer of funds to the payroll bank account? a. earnings statement b. time cost c. payroll register d. W-2 form

c. Payroll Register

Which of the following is a true statement with respect to prototyping? a) in the early stages of prototyping, system controls and exception handling may be sacrificed in the interests of simplicity, flexibility, and ease of use b) a prototype is a scaled-down, first-draft model that is quickly and inexpensively built and given to users to evaluate c) the first step in prototyping is to identify system requirements d) all of the above statements are true

d) all of the above statements are true

Which of the following is NOT one of the difficulties accountants have experienced using the traditional systems development life cycle? a. AIS development projects are backlogged for years b. Changes are usually not possible after requirements have been frozen c. The AIS that is developed may not meet their needs d. All are difficulties with the SDLC

d. All are difficulties with the SDLC

Which of the following statements is true? a. The Gartner Group estimates that programming bugs not found until later in the SDLC cost 25 to 30% more to correct than if they had been found earlier in the SDLC. b. Direct system conversion is the least risky of the system conversion methods c. Many software developers state that 5 to 10% of software development costs should be allocated to testing, debugging, and rewriting software. d. Over the life of the system, only 30% of information systems work takes place during development; the remaining 70% is spent maintaining the system.

d. Over the life of the system, only 30% of information systems work takes place during development; the remaining 70% is spent maintaining the system.

Which of the following is NOT a reason why companies make changes to their AIS? a. Gain a competitive advantage b. increase productivity c. keep up with business growth d. downsize company operation e. all of the above are reason why companies change an AIS

e. all of the above are reason why companies change an AIS e. all of the above are reason why companies change an AIS