CH 2
103. When creating or reading a system flowchart, the triangle symbol represents a: A. File B. Direct access storage C. Manual input D. Document
A
107. This document system is used by systems professionals to show the logical design of a system. The advantage of the method is that it uses only four symbols. A. Data Flow Diagram B. ER Diagram C. System Flowchart D. Document Flowchart
A
109. This document system is used by systems professionals to show the logical design of a system. The advantage of the method is that it uses only four symbols. The symbol used to represent any task or function performed is a(n): A. Rectangle with rounded corners B. Open-ended rectangle C. Arrow D. Rectangle with squared corners
A
112. The document system is a pictorial representation of the logical structure of databases. It identifies the entities, the attributes of the entities, and the relationship between the entities. A. ER Diagram B. System Flowchart C. Entity Flowchart D. Process Map
A
114. When discussing entity relationship diagrams, this is considered to be a characteristic of an entity. A. Attribute B. Flow C. Relationship D. Field
A
117. The oval used in an entity relationship diagram is used to represent a(n): A. Attribute B. Relationship C. Entity D. On-page Connector
A
35. The system that captures, records, processes, and reports accounting information is referred to as a(n): A. Accounting information system B. Management information system. C. System of business processes. D. Client-server system.
A
39. When a transaction occurs there are systematic and defined steps that take place within the organization to complete all of the underlying tasks. These "defined steps" are referred to as: A. Business Processes B. Financial Transactions C. Accounting Information Systems D. Customer Service Arenas
A
42. Which of the following correctly states the order of steps in a manual accounting system? A. Source Documents, Journals, Ledgers, Reports B. Journals, Source Documents, Ledgers, Reports C. Source Documents, Ledgers, Journals, Reports D. Ledgers, Reports, Journals, Source Documents
A
49. A source document serves important functions in the accounting system. Which of the following is not one of those functions? A. Provides the output data for financial reports B. Serves as part of the permanent audit trail C. Triggers beginning of business processes D. Provides the input data to record the transaction
A
51. Which of the following provides details for the entire set of accounts used in the organization's accounting systems? A. General Ledger B. Special Journal C. Subsidiary Ledger D. General Journal
A
53. Special journals are created, or established, to record specific types of transactions. Which of the following is not one of the special journals? A. Fixed Asset Journal B. Cash Receipts Journal C. Purchases Journal D. Payroll Journal
A
58. Which of the following statements does not refer to a legacy system? A. Includes source documents, journals, and ledgers. B. Have been in place for may years. C. Much time has been spent developing, maintaining, and customizing the system. D. Often based on old or inadequate technology.
A
59. Organizations are often reluctant to abandon their legacy systems because: A. The system was customized to meet specific needs. B. The process to replace the systems is inexpensive. C. The time involved for replacement is minimal. D. Information contained on the system is outdated.
A
60. Which of the following is not one of the advantages of maintaining the legacy systems? A. The system often supports unique business processes not inherent in generic accounting software. B. The system contains invaluable historical data that may be difficult to integrate into a new system. C. The system is well supported and understood by existing personnel who are already trained to use the system. D. The system has been customized to meet specific needs of the organization.
A
65. A set of processes, software and hardware tools, methodologies, and technologies to integrate software systems is referred to as: A. Enterprise application integration B. Client-server interface C. Screen scrapers D. Complete integration
A
70. Quickbooks and Peachtree would be part of which market segment of accounting software? A. Small Segment B. Midmarket Segment C. Beginning ERP Segment D. Legacy Segment
A
72. Five different input methods were identified by the authors. Which of the following is one of those input methods? A. EDI B. ERP C. EAI D. EPS
A
78. A method of using hardware and software that captures retail sales transactions by standard bar coding is referred to as: A. Point of Sale System B. COBOL System C. Inventory Tracking System D. UPC System
A
80. The inter-company, computer-to-computer transfer of business documents in a standard business format is referred to as: A. Electronic Data Interchange B. E-Business Document Identification C. Earned Daily Interest D. Electronic Document Idea
A
88. The processing system where transactions are processed immediately and where output is available immediately is referred to as: A. Real-time processing B. Online processing C. Batch processing D. Sequential processing
A
91. Many different types of output are generated by an accounting information system. The authors identified general categories of output. The category that would include credit memorandums, receiving memorandums, and production schedules is: A. Internal documents B. Internal reports C. External reports D. Trading partner documents
A
93. Documentation of the accounting system allows: A. The accountant to analyze and understand the procedures and business process and the systems that capture and record the accounting data. B. The non-accountant to create a picture or chart of what should happen within the accounting system. C. The investor to see inside the accounting system so that he / she can better understand the financial statements. D. The accountant to determine which financial statements will be necessary to properly report the results of operations.
A
97. Which of the process map symbols is used to show a task or activity in the process? A. Rectangle B. Oval C. Diamond D. Circle
A
99. A process map shows a circle with a letter or number in the middle. This symbol is used to show: A. That there is a break in the process. B. That there is a decision to be made. C. That a process is starting. D. That there is an activity that will take place.
A
100. This method of system documentation is intended to show the entire system, including inputs manual and computerized processes, and outputs. A. Procedure mapping B. System flowcharting C. Data flow diagramming D. Entity relationship diagrams
B
102. Accountants and auditors are less likely to use which of the following system documentation methods? A. Process maps B. System flowcharting C. Document flowcharting D. Data flow diagrams
B
104. When creating or reading a system flowchart, the diamond represents a(n): A. On-page connector B. Decision C. Data D. Process
B
110. This document system is used by systems professionals to show the logical design of a system. The advantage of the method is that it uses only four symbols. The symbol used to represent a data store or the storage of data is a(n): A. Rectangle with rounded corners B. Open-ended rectangle C. Arrow D. Rectangle with squared corners
B
116. The diamond used in an entity relationship diagram is used to represent a(n): A. Attribute B. Relationship C. Entity D. Decision
B
120. This type of client terminal can accomplish some of the processing tasks in a client-server computing network: A. Application terminal B. Smart terminal C. Subset terminal D. Presentation terminal
B
122. In this type of client-server computing, the client PC manipulates data for presentation but does not do any other significant processing. A. Application presentation B. Distributed presentation C. Distributed application D. ERP application
B
124. Which of the following statements, regarding ethical considerations in an accounting information system is false? A. The accounting information system is often the tool used to either commit or cover up unethical behavior. B. If there is only one person within the organization with responsibility for maintaining the computer systems, it is not difficult to detect instances of computer fraud. C. Fraud could be perpetrated and go undetected for a long time if the accounting information system is not carefully monitored. D. If accountants are well informed about the risks of unethical behavior, they will be better prepared to control those risks.
B
37. A prescribed sequence of work steps completed in order to produce a desired result for an organization is the definition of: A. Accounting information system B. Business process C. Business transaction D. Financial statement
B
38. Which of the following statements, related to a business process, is not a true statement? A. It has a well-defined beginning and end. B. Usually takes a long-period of time to complete. C. Occur so that the organization may serve its customers. D. Is initiated by a particular kind of event.
B
41. Which of the following is not one of the general categories of business processes? A. Revenue Processes B. Inventory Processes C. Expenditure Processes D. Conversion Processes
B
43. Which of the following statements is true? A. Most accounting systems in use today are computerized systems. B. All accounting systems, whether computerized or not, must capture data, process the data, and provide outputs C. It is not necessary for an accounting system to maintain summary information if it maintains detail information. D. The general ledger will be summarized and then posted to the subsidiary ledger.
B
46. In order to organize the study of accounting information systems, the authors divided the systems in place into three categories. Which of the following is not one of those categories? A. Manual Systems B. Client-Server Systems C. Legacy Systems D. Integrated IT Systems
B
47. Which of the following statements is true as it relates to manual systems? A. Few small organizations use computerized accounting systems. B. Computerized systems rely on some manual record keeping. C. Most medium sized organizations rely on manual accounting systems. D. When using a computerized system, it is not necessary to understand the manual system.
B
54. The purpose of this item is to maintain the detailed information regarding routine transactions, with an account established for each entity. A. Purchases Journal B. Subsidiary Ledger C. General Journal D. General Ledger
B
57. An existing system within the organization that uses older technology is called a(n): A. Manual system B. Legacy system C. Client-server system D. Modern integrated system
B
61. Which of the following is one of the disadvantages of maintaining the legacy systems? A. Often support unique business processes not inherent in generic accounting software. B. May not easily run on new hardware. C. Contain invaluable historical data. D. Existing personnel are already trained to use the system.
B
67. Which of the following statements is false? A. When a modern, integrated system is purchased, they are often modified by the IT staff to meet the needs of the organization. B. New programs sold by software development companies are not as user friendly as the legacy systems. C. Purchased software has a lower cost, shorter implementation time, and fewer bugs. D. The modern, integrated systems typically use the latest technology.
B
69. A company with revenue of $50 million would be most likely to purchase software from which one of the four market segments? A. Midmarket Segment B. Beginning ERP Segment C. Tier 1: ERP Segment D. Integrated Segment
B
76. A printed code consisting of a series of vertical, machine readable, rectangular bars and spaces that vary in width and are arranged in a specific ways to represent letters and numbers are referred to as: A. COBOL Coding B. Bar Coding C. Key Coding D. EOS Coding
B
79. The letter UPC, when relating to bar codes, stands for: A. United Price Code B. Universal Product Code C. Unity Product Cost D. Ulterior Price Company
B
84. When all similar transactions are grouped together for a specified time and then processed together as a group, the process is referred to as: A. Grouped processing B. Batch processing C. Bound processing D. Unit processing
B
87. Which of the following is one of the disadvantages to batch processing? A. The hardware and software are more expensive. B. Integration across business processes is difficult in legacy systems that are batch oriented. C. Batch systems can be difficult to audit because of the complexity of the system. D. Errors can be corrected immediately because the system checks for input errors as the data is entered.
B
92. Many different types of output are generated by an accounting information system. The authors identified general categories of output. The category that would include any document that management determines would be useful to the business is: A. Internal documents B. Internal reports C. External reports D. Trading partner documents
B
96. Which of the process map symbols is used to show the start and / or finish of a process? A. Rectangle B. Oval C. Diamond D. Circle
B
106. The documenting system that shows the flow of documents and information among departments or units within an organization is called a: A. System Flowchart B. ER Diagram C. Document Flowchart D. Data Flow Diagram
C
111. This document system is used by systems professionals to show the logical design of a system. The advantage of the method is that it uses only four symbols. The symbol used to represent the flow of data is a(n): A. Rectangle with rounded corners B. Open-ended rectangle C. Arrow D. Rectangle with squared corners
C
113. When discussing entity relationship diagrams, this is considered to be a noun that represents items in the accounting system: A. Attribute B. Relationship C. Entity D. Flow
C
115. The rectangle used in an entity relationship diagram is used to represent a(n): A. Attribute B. Relationship C. Entity D. Process
C
119. When an organization has this type of network, there are two types of computers networked together to accomplish the application processing: A. Point of sale B. Batch processing C. Client-server computing D. General-subsidiary computing
C
123. In this type of client-server computing, the client PC participates in application processing - including the updates and changes to data that reside on the server. A. Subset application B. Distributed presentation C. Distributed application D. Real-time application
C
33. IT systems have dramatically affected many aspects of business. Which of the following is not one of the changes? A. Data input into accounting information systems. B. The way that data is processed in the system. C. The accounting information that is reported by the system. D. The outputs of the system.
C
40. The substance of an accounting information system includes: A. Initiate an event B. Steps taken to create a business process C. Capturing, recording, processing and reporting accounting information D. Selection of client-server computing
C
44. The choice of accounting information system will depend on all of the following except: A. The size of the organization B. The philosophy of management C. The ability of the company to capture information D. The nature of its processes
C
50. An output of the accounting system that can be used as an input in a different part of the accounting system is referred to as: A. Round table document B. Source document C. Turnaround document D. Financial report
C
52. The book of original entry for any transaction not recorded in a special journal is the: A. Special Ledger B. General Ledger C. General Journal D. Subsidiary Journal
C
62. Which of the following is not one of the disadvantages of maintaining the legacy systems? A. They become difficult to integrate when companies merge or acquire other companies. B. They are often difficult to modify to make them web based. C. They are well supported and understood by existing personnel. D. They lack adequate, up-to-date supporting documentation.
C
64. Instead of completely replacing their systems, organizations often try to use new technology to enhance existing systems. Which of the following is not one of the approaches taken by the se organizations? A. Enterprise application integration B. Screen scrapers C. Enterprise resource planning D. Using interface bridges
C
68. There were four market segments identified by the authors in chapter 2. Which of the following is not one of those segments? A. Small Company Systems B. Midmarket Company Systems C. Legacy Company Systems D. Beginning ERP Systems
C
73. Source documents are usually preprinted and sequentially prenumbered. Which of the following is not one of the reasons for this prenumbering and preprinting? A. To have an established format to capture data B. To assure that there is no duplicate source documents C. To be sure that all of the documents have been recorded D. To be sure that all of the documents are accounted for
C
74. This method of input for AIS is considered to be time consuming and error prone due to the human effort required to write on some documents and to manually key in the data: A. Bar Coding B. Key Punching C. Source Documents and Keying D. Point of Sale Systems
C
81. The major difference between EDI and e-business is: A. EDI uses the internet and e-business uses dedicated networks B. EDI does not require the use of computers C. EDI uses dedicated networks and e-business uses the internet D. There is no difference between EDI and e-business
C
83. In a manual accounting system, the processing of accounting information includes: A. Recording in the ledger B. Posting to the journal C. Closing the necessary ledger accounts D. Adjusting the journal
C
85. An organization that has applications having large volumes of similar transactions that can be processed at regular intervals is best suited to use which method of processing? A. Real-time processing B. Point of sale processing C. Batch processing D. Sequential processing
C
90. The disadvantages to real-time processing include: A. Processing can take longer than normal if the master files are large. B. Adding or deleting records takes a considerable amount of time. C. The single database that is shared is more susceptible to unauthorized access. D. Data duplication is likely because each process uses its own master file.
C
95. A pictorial representation of business processes in which the actual flow and sequence of events in the process are presented in the diagram form - the start of the process, the steps within the process, and the finish of the process is referred to as: A. System flowchart B. ER Diagram C. Process Map D. Data Flow Diagram
C
98. Which of the process map symbols is used to show a point in the process when a decision must be made? A. Rectangle B. Oval C. Diamond D. Circle
C
101. Systems professionals in the design and maintenance of IT systems use this documentation method. A. Document flowcharts B. Process maps C. Data flow diagrams D. System flowcharting
D
105. When creating or reading a system flowchart, the rectangle represents a(n): A. Decision B. Off-page connector C. Document D. Process
D
108. This document system is used by systems professionals to show the logical design of a system. The advantage of the method is that it uses only four symbols. The symbol used to represent both sources and destinations of data is a(n): A. Rectangle with rounded corners B. Open-ended rectangle C. Arrow D. Rectangle with squared corners
D
118. The term that refers to how many instances of an entity relates to each instance of another entity is: A. Supervisor B. Symbol C. Relationship D. Cardinality
D
121. Characteristics of a client-server system include all of the following except: A. The client and the server are networked together. B. The client computer participates in either the processing or the data manipulation. C. Individual parts of processing are shared between the server and the client. D. The client normally stores the large database.
D
34. Which of the following statements is false? A. Technology has allowed many industries to provide better, faster, and higher quality information. B. Business process must adapt to the new technologies. C. Business processes, IT systems, and the accounting information system are inextricably linked. D. IT systems have not had a major impact on the input of data into the accounting information system.
D
36. Information captured by a system is generated by financial transactions: A. Within the organization only. B. Between an organization and its customers only. C. Between an organization and its vendors only. D. Within the organization and between an organization and its customers and vendors.
D
45. The record that captures the key data of a transaction is called: A. Turnaround document B. Ledger C. Journal D. Source document
D
48. Which of the following is an example of a source document? A. Purchase order B. Employee time card C. Cash receipts D. All of the above are examples of source documents.
D
55. Which of the following items is not one of the manual records in a manual accounting system? A. Journals B. Ledgers C. Source Documents D. Trial Balance
D
56. Many of the accounting software systems consist of modules. Which of the following statements is false related to these modules? A. Are separate programs for different business processes B. Include accounts receivable, payroll, and accounts payable C. Have essentially the same purpose as special journals and special ledgers D. Are referred to as special purpose systems
D
63. Frontware, which adds modern, user friendly screen interfaces to legacy systems are referred to as: A. Turnaround software B. Graphical user face C. COBOL D. Screen scrapers
D
66. An use of enterprise application integration would include: A. Bridge the legacy systems to the new hardware and software. B. Intended to consolidate, connect, and organize all of the computer applications, data, and business processes. C. Allow real-time exchange and management of all the critical information. D. All of the listed items would be included.
D
71. SAP and PeopleSoft are part of which market segment of accounting software? A. Small Segment B. Midmarket Segment C. Beginning ERP Segment D. Tier 1 ERP Segment
D
75. The use of employee prepared time cards and the entering of the time worked by the payroll department is a good example of which type of input method for AIS? A. EDI B. Bar Coding C. Point of Use System D. Source Documents and Keying
D
77. Bar codes can be used in a number of different instances for input: A. Products that are sold B. Identification of individuals C. Track work in process D. Prepare financial statements
D
82. After the accounting information has been input into the accounting system, it must be processed. Process accounting data involves: A. Source documents and keying B. Bar codes and point of sale C. Electronic data interchange and e-business D. Calculations, classification, and summarization.
D
86. Which of the following is not one of the advantages of batch processing? A. It is generally easier to control than other types of computerized systems. B. It uses less costly hardware and software. C. It is very efficient for large volumes of like transactions when most items in the master file are used. D. Information can be provided to users on a timely basis.
D
89. The advantages to real-time processing include: A. As the data are entered, the system checks for input errors - therefore, errors can be corrected immediately. B. Information is provided to users on a timely basis. C. All files are constantly up-to-date. D. All of the above are advantages.
D
94. Which of the following is not one of the popular documentation methods for processes and systems presented in the textbook? A. Process maps B. Document flowcharts C. Entity relationship diagram D. Document creation map
D
1. Technology has done little to help the hospitality industry improve the quality of services to customers.
false
11. The software market segment for small companies is usually for companies who have less than $10,000,000 in revenue.
false
12. Oracle is considered as a software program for the beginning ERP market.
false
13. ERP systems usually don't allow the user the flexibility to set it up to customize it for their specific business needs.
false
16. EDI is the intracompany, computer-to-computer transfer of business documents in a standard business format.
false
17. Dedicated lines are used to transmit data in e-business systems.
false
19. Online processing is best suited to applications in which there is a small volume of records, and only a few records are needed to process any individual transaction.
false
21. The exclusive output of an AIS is that it produces trading partner documents such as checks, invoices, and statements.
false
22. The output of an AIS is for external users only, such as trading partner documents and external reports including financial statements.
false
24. Documentation allows the accountant to analyze and understand the procedures and processes of a business process and the systems that capture and record accounting data.
false
25. A system flow chart describes in a graphic way the entire system and goes into great detail about each of the processes.
false
28. The relationships between entities in ER diagrams are depicted by a concept called co-ordinality which refers to how many instances an entity relates to each instance of another entity.
false
30. In client-server computing a PC-type computer is more efficient in managing large databases and extracting data from databases.
false
31. One of the key aspects of computerizing the AIS is that the greater the system is computerized the lesser the chance for someone to cover up their unethical behavior.
false
4. There aren't may organizations that need to use paper documents anymore.
false
5. Once the data is entered into the AIS, the source document then isn't considered a part of the audit trail.
false
6. In a manual system the general ledger is the book of original entry.
false
9. In today's AIS environment, because of a company's unique needs, new software is most often developed within the organization rather than purchasing it.
false
10. Purchased software is usually has a low cost, shorter implementation time, and fewer bugs.
true
14. Bar codes, POS systems, EDI, and e-business systems are technology systems that enable the input of data.
true
15. A bar code reader can record the start and end of an employee's work.
true
18. Batch processing is generally easier to control than other types of computerized systems, since batch totals can be used to ensure the batch was processed correctly.
true
2. Using IT will change the business processes and the way accounting data is collected.
true
20. One of the advantages of a real time system is that the system checks for input errors, and errors can be corrected immediately.
true
23. Internal reports produced by an AIS are designed specifically for the function that is the subject of the report.
true
26. A special kind of system flow chart is a document flow chart.
true
27. In an ER diagram entities are the nouns, and attributes are characteristics of the entities.
true
29. One of the computers in client-server computing is usually a PC-type computer.
true
3. When a business process occurs, there must be a way of capturing the data generated to input it into the AIS.
true
32. REA restrictions may not be compatible with all of the accounting conventions.
true
7. In large companies, many legacy systems run on host-based mainframe computers.
true
8. One of the advantages of a legacy system is that it supports business processes that are not contained in generic accounting software.
true