Chapter 1 AIS

112) From an organization's viewpoint, a distinction can be drawn between the following two broad classes of accounting information. A) Historical and future B) Strategic and operational C) Internal and external D) Mandatory and discretionary

D) Mandatory and discretionary

92) Which of the following transaction processing cycles concerns events related to the distribution of goods and services to other organizations and the collection of related payments? A) Production B) Expenditure C) Financial reporting D) Revenue cycle

D) Revenue cycle

146) In the systems approach to administering a systems project, which of the following phases should be performed first? A) Creating alternatives B) Analyzing the system C) Implementing the system D) Stating the system's objectives

D) Stating the system's objectives

137) Which of the following is used to ensure a high degree of user involvement in the control of an information systems department? A) Maintenance programmers B) Operations manager C) Technical support committee D) Steering committee

D) Steering committee

119) The technological philosophy that emphasizes "customer satisfaction" to the point of "customer obsession" is known as A) TQP B) EDI. C) TQM. D) TQP and TQM

D) TQP and TQM

140) When should the actual users of a system be involved when a new system is being developed? A) As soon as the new system is implemented B) After all unexpected bugs and glitches have been found and corrected C) Only after all employees have been thoroughly trained to use the new system D) Throughout the design of the new system

D) Throughout the design of the new system

98) A group of individual software applications designed to run in Web browsers and facilitated through a service-oriented architecture (SOA) is referred to as a(n) A) ERP II B) Application architecture C) value chain application suite D) enterprise application suite

D) enterprise application suite

A department or section of an organization that uses the organization's computer data processing other than the information systems department

End user

____________ is the hands-on use of computers by end users.

End-user computing (EUC)

________ software assists management in managing inventories and scheduling production.

MRP

A way of viewing the company's activities in a manner suited to analyzing competitive advantages

Value chain

A(n) ________ ________ ________ is a type of information system that supports nonroutine needs for information, while ________ systems support routine, nonrecurring information needs.

decision support system; DP

In ________ ________ ________, computers take control of the entire production process (CIM) but also can be reprogrammed so the same processes can produce entirely different products.

flexible manufacturing systems FMSs/FMS

The purpose of the ________ approach is to assist in the orderly development of effective systems.

systems

Middle management uses ________ information in an organization.

tactical

A common division or section within the information systems department

technical support function

Quick Response code is a ______ bar code.

two-dimensional

Allows employees to work at home and still have direct interaction with the organization's information systems

Telecommuting

A universal formatting language used for exchanging business documents via the Internet

XBRL

______ is a language that facilitates the exchange of financial statements over the Internet.

XBRL

A type of information system which requires an inference engine to make a decision for the user

Expert system

A simple way of viewing the company's activities in a manner suited to analyzing its competitive advantages is known as the ________ ________.

value chain

_________ RFID tags all transmit signals containing digital information to receivers.

Active, passive, and semi-passive

142) When a management report is discretionary rather than mandatory, the primary consideration should be A) that there are benefits to be obtained by producing the report. B) that the benefits obtained by producing the report exceed the cost of its production. C) to minimize the cost of producing the report while maintaining minimum standards of usefulness. D) to minimize the cost of producing the report while maintaining minimum standards of reliability and accuracy.

B) that the benefits obtained by producing the report exceed the cost of its production.

111) When information levels within an organization are viewed as a pyramid, strategic information is used primarily by A) lower-level management. B) top-level management. C) middle management. D) lower-level and middle management.

B) top-level management.

113) Which item listed below is not considered a primary business process: Activities that directly add value to the company's products. Include inbound logistics, production, outbound logistics, sales and marketing, and service.? A) Marketing B) Outbound sales logistics C) Technology development D) Service

C) Technology development

104) Groups of organizations working together to create new products, new process methods, and/or human capital intelligence is referred to as a(n) A) ERP. B) e-commerce. C) collaborative commerce D) application consortium.

C) collaborative commerce

107) The staff position which would generally report to the treasurer rather than to the controller is A) budgeting. B) accounts payable. C) credit manager D) cost accounting.

C) credit manager

The term that best describes an information system that is tailored to the strategic information needs of top-level management is a(n) A) accounting information system. B) expert system. C) executive information system (EIS: ). D) EDP system.

C) executive information system (EIS: ).

129) RFID tags include all of the following except A) active tags. B) passive tags. C) inactive tags. D) semi-passive tags.

C) inactive tags.

116) The internal audit function within an organization should be considered a(n) A) activity supervised by the controller. B) sub function of the treasurer. C) independent appraisal activity. D) optional service provided by the firm's external auditors.

C) independent appraisal activity.

97) The fundamental benefits of information technology for AISs include the following except A) communication B) information organization C) systems development. D) automation.

C) systems development.

147) A way of viewing company activities that breaks the activities down into components that can be individually optimized in terms of goals and strategies is known as the A) primary business process. B) accounting information system. C) value chain

C) value chain

The individual who supervises accounting functions

Controller

The following are benefits of an ERP except for the ability A) to eliminate data duplication and redundancy. B) to standardize data formats. C) to easily share data from various departments. D) to easily customize software to meet company needs.

D) to easily customize software to meet company needs.

152) When viewing a typical organization chart, the individual responsible for the finances of the business is the A) controller. B) president. C) vice president. D) treasurer.

D) treasurer.

Data are processed into a decision-making format for the end user

DSS

________ ________ ________ combines functional information systems in a single software package and a single database.

Enterprise resource planning/ERP

An information system tailored to the information needs of top management

Executive information system

The use of electronic technology in the office or workplace

OA

___________ tags are used for tracking objects within a quick-response system.

RFID

The controller is the executive in charge of ________ activities of the organization, while the treasurer supervises the ________ activities.

accounting; financial

Enterprise ________ suite uses a group of individual packages that work with each other on a Web browser as opposed to one large ERP software package.

application

ERP II adds collaborative ________ to ERP.

commerce

Many companies prefer business process ________ because they find it more cost-effective than designing their own system from the ground up.

blueprinting

A just-in-time (JIT) environment is characterized by activities occurring in a(n) ________ ________ environment.

continuous flow

The ______ is responsible for the budgeting and tax planning aspects of a business.

controller

A(n) ________ ________ ________ system manages all contact with customers.

customer relation management CRM

Green IT is concerned with reducing ________ through recycling and reusing electronic products rather than discarding these products.

e-waste

A(n) ________ information system is tailored to the strategic information needs of top-level management.

executive

Events related to the acquisition of goods and services from other entities and the settlement of related obligations are in the ________ cycle; events related to the transformation of resources into goods and services are in the ________ cycle.

expenditure; production

A group of loosely connected companies that work together to maximize the value of their economic outputs is a(n) ________ ________.

extended enterprise

The essence of cloud computing is that data storage is _______.

in "the cloud".

An _________ is a support facility for end users in an organization.

information center

The source for most information used by lower-level managers is largely ________.

internal

A ____________ manufacturing system is one form of lean manufacturing.

just-in-time

The main focus of ________ manufacturing is eliminating waste and improving production flow.

lean

The three major categories of waste under the original Toyota Production System (TPS) are ________, ________, and ________.

muda, muri, and mura

A business process is an interrelated set of tasks that involve data, ________ units, and a logical time sequence.

organizational

The ________ management approach involves the application of knowledge, skills, tools, techniques and systems to manage and improve organizational processes to better meet customers' needs and maximize profitability.

process

Lean manufacturing focuses on eliminating waste and improving the smoothness of the ________.

production flow.

The ISO 9001 is a(n) ________-management standard published by the International Standards Organization.

quality

A common violation of the ________ principle is the delegation of both accounting and financial responsibilities to the same individual or department.

segregation

The linking of applications in a suite is facilitated through a(n) ________ ________ ________.

service-oriented architecture/SOA

A(n) ________ committee is an advisory group who can influence the policies, budget, and planning of information services within an organization.

steering

A __________ consists of high-level members of user functions such as manufacturing and marketing, as well as the head of the information system function and several of his or her staff.

steering committee

A(n) ________ ________ ________ system encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities.

supply chain management SCM

A systems development project consists of ________ general phases.

three

One or more applications systems consisting of logically related transactions

transaction processing cycle

The department which has supervision over cash and credit activities

treasurer

A philosophy of ________ design fosters a set of attitudes and an approach to systems development that consciously considers the organizational context.

user-oriented

130) Which of the following is not associated with lean manufacturing? A) CRM B) Toyota Production System C) Eliminating waste D) JIT

A) CRM

150) Which statement regarding internal control is false? A) Documentation is not a critical component of an internal control system. B) Ideally, a task can be divided to make job functions as natural checks on each other. C) A specific person should ideally be responsible for each task or job function. D) All records should allow cross-referencing from one area of responsibility to another.

A) Documentation is not a critical component of an internal control system.

102) A complete systems solution involving one software package and one database is referred to as A) ERP: B) MRP. C) SCM. D) DSS.

A) ERP:

121) Which of the following is not a benefit of electronic data interchange (EDI)? A) Electronic mail messages are interpreted by humans. B) EDI eliminates paper. C) EDI saves time. D) EDI may allow for EFT payments to vendor accounts.

A) Electronic mail messages are interpreted by humans.

143) Which of the following groups would not be considered external users of the company's information? A) Factory supervisors B) Creditors C) Investors D) Labor unions

A) Factory supervisors

136) Which officer, department, or division within an organization is responsible for monitoring the other departments to ensure that the organization's policies and procedures are being carried out? A) Internal auditing B) Vice President for Administration C) Chief Information Officer D) A steering committee

A) Internal auditing

126) Which of the following is not an objective of a design group or project team charged with creating and implementing a new information system? A) Securing funding for a new information system B) Identifying needs to be satisfied by a new system C) Developing technical specifications for a new system D) Implementation of a new system

A) Securing funding for a new information system

125) Which of the following is not one of the criteria of the design specification step of the systems approach to design? A) Using a team approach in many cases B) Sufficient detailed specifications for implementation process C) Identification of system inputs D) Strategies for producing system outputs

A) Using a team approach in many cases

106) What language facilitates business-to-business commerce through the extended value chain, which includes both manufacturers and their suppliers? A) VCML B) XBRL C) HTML D) COBOL

A) VCML

115) The preparation of forecasts and analyses used by management in planning and controlling the operations of the organization is generally a(n) A) budgeting function B) tax planning function. C) accounting manager function. D) treasurer function.

A) budgeting function

148) Software that integrates business processes on a company-wide basis is called A) enterprise resource planning B) executive information systems. C) expert systems. D) manufacturing information systems.

A) enterprise resource planning

A(n) ___________ is a group of loosely connected companies that work together to maximize the value of their economic outputs. A) extended enterprise B) enterprise resource planners C) enterprise suite D) value chain consortium

A) extended enterprise

132) Green IT is concerned with A) reducing e-waste by reusing and or refurbishing IT products. B) using less fuel in the creation of IT systems. C) designing more efficient systems in order to reduce necessary storage requirements. D) Green IT is concerned with all of the above.

A) reducing e-waste by reusing and or refurbishing IT products.

91) Which of the following is not a common transaction processing cycle found in business organizations? A) Expenditure cycle B) Accounting cycle E) Transaction processing cycles

B) Accounting cycle

114) Which of the following is not an objective of internal control as a process? A) Reliability of financial reporting B) Accuracy of accounting information C) Compliance with applicable laws and regulations D) Effectiveness and efficiency of operations

B) Accuracy of accounting information

Which systems permit the reprogramming of computers to produce entirely different products in the same manufacturing facility with the same equipment? A) MRP and MRP II B) CIMs and FMSs C) ESs and FMSs D) ERPs and MRPs

B) CIMs and FMSs

139) A company known for its use of blueprints in systems design for clients is A) SAM. B) SAP. C) SAS. D) SAR.

B) SAP.

96) A(n) __________ encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. It also includes collaboration with suppliers in the extended enterprise. A) CRM B) SCM C) DS D) ES

B) SCM

145) A report prepared exclusively for use by this group is almost always mandatory. A) The company's labor union B) The Internal Revenue Service C) The company's main bank D) The company's main supplier of its raw materials

B) The Internal Revenue Service

120) Which of the following is not a consumer benefit of Web commerce? A) There is no waiting for a salesperson or product information. B) There is automatic electronic encoding of transaction data. C) Web-based transactions are encrypted providing security. D) Intelligent Web-based software can provide answers to complicated questions.

B) There is automatic electronic encoding of transaction data.

122) Which of the statements below is false regarding Extensible Business Reporting Language (XBRL)? A) Many experts feel that XBRL will replace EDI. B) XBRL is in effect a narrower standard than the ANSI X.12 standard for EDI. C) The SEC allows use of the XBRL format. D) XBRL facilitates the exchange of business documents over the Internet.

B) XBRL is in effect a narrower standard than the ANSI X.12 standard for EDI.

108) The high-level executive who supervises accounting functions such as budgeting, billing, and payroll is known as the A) treasurer. B) controller C) chief information officer. D) chief internal auditor.

B) controller

94) A system that manages all contacts with customers is a ________ system. A) customer value chain B) customer relation management (CRM) C) customer supply chain management D) customer requirements planning

B) customer relation management (CRM)

133) The exchange of business documents such as purchase orders and invoices in an electronic format between the computers of separate organizations is known as A) e-mail. B) electronic data interchange. C) computer-integrated information system. D) electronic document exchange.

B) electronic data interchange.

128) An important quick response technology used to track objects using radio signals is called A) sonic tagging. B) radio frequency identification. C) object frequency tagging. D) frequency waves identification.

B) radio frequency identification.

149) An accounting information system plays a key role in the internal control process, thereby helping management with its major responsibility of A) managing the internal audit function. B) stewardship. C) global-level marketing. D) managing the production cycle.

B) stewardship.

144) Internal users of reports from a company's information system might include all of the following except its A) chief executive officer. B) stockholders. C) payroll department. D) lower-level managers.

B) stockholders.

123) The Clearing House Automated Payment System is also known as A) FedWire. B) CHIPS. C) CHAPS. D) EFT.

C) CHAPS.

Information retrieval from the organization's database using the query language feature of DBMS is a common A) programming function. B) technical support function. C) EUC application D) ES application.

C) EUC application

151) An organization's internal control process consists of how many element? A) Six B) Four C) Five D) Seven

C) Five

The international quality-management standard credited for promoting the process management approach is the A) Six Sigma. B) ISA-95 C) ISO 9001. D) ISA-Y2K.

C) ISO 9001.

135) Which of the following is not an example of good internal control? A) Having adequate records B) Being sure that everyone clearly understands his or her own responsibilities C) Making sure that each department is responsible for keeping its own accounting records D) Having periodic physical checks (or counts) of the inventory

C) Making sure that each department is responsible for keeping its own accounting records

138) Which of the following is not a merchant benefit of Web commerce? A) Cost savings through automated ordering B) Worldwide availability of the company's products C) No waiting in line for a salesperson or to obtain product information D) Low overhead

C) No waiting in line for a salesperson or to obtain product information

93) The transaction processing cycle that is concerned with the events related to the transformation of resources into goods and services is C) Production cycle B) revenue. C) financial reporting. D) expenditure.

C) Production cycle

127) Which of the following is not an objective of internal control? A) Reliability of financial reporting B) Effectiveness and efficiency of operations C) Relevance of financial statements D) Compliance with applicable laws and regulations

C) Relevance of financial statements

141) Which of the following information characteristics pertains to the situation when a lower-level manager receives a well-defined, narrowly focused report, while a top-level manager receives a report covering more general topics? A) Level of aggregation B) Time horizon C) Scope D) Required accuracy

C) Scope

________ is an automated clearing house system used for the clearing of Eurodollar payments between U.S. and non-U.S. financial institutions.

CHIPS

The ________ is the head of the information systems function in an organization.

CIO/chief information officer

Individual who has overall responsibility for the information system function

Chief Information Officer (CIO)

______ describes the increasing trend for data processing capabilities to be provided as a service via the Internet.

Cloud computing

An integrated approach to the use of information technology in manufacturing systems

Computer-integrated manufacturing

90) ________ are the only physical items that are absolutely required for a user of cloud computing. A) A data storage unit and an Internet connection B) A Web browser and a RFID card C) A QR reader and an Internet connection D) A Web browser and an Internet connection

D) A Web browser and an Internet connection

134) Which of the following specialized information systems would be the most useful in providing information for routine decisions? A) Decision support system B) Expert system C) Executive information system D) Accounting information system

D) Accounting information system

124) Which of the steps below is not part of the systems approach process? A) Creation of alternatives B) Statement of system objective(s) C) Systems evaluation D) All of the answers are steps in the systems approach process.

D) All of the answers are steps in the systems approach process.

110) Quick Response reader application can typically ________. A) open a Web site B) display a video C) display text D) All of these answers are correct.

D) All of these answers are correct.

131) The following are EDI standards except A) ANSI X.12. B) AS2. C) eBXML. D) ISO-95.

D) ISO-95.

105) A group of individual software applications designed to run in Web browsers and facilitated through a service oriented architecture (SOA) is referred to as a(n) A) ERP II. B) application architecture. C) value chain application suite. D) enterprise application suite (EAS)

D) enterprise application suite (EAS)

The area of functional specialization which is responsible for the design, coding, testing, and debugging of computer programs is the A) technical support function. B) user function. C) operations function. D) programming function.

D) programming function.

109) The three general phases of systems development projects and the order in which they occur are A) systems design, systems implementation, and systems analysis. B) systems design, systems implementation, and systems auditing. C) systems design, systems analysis, and systems programming. D) systems analysis, systems design, and systems implementation.

D) systems analysis, systems design, and systems implementation.

___________ software assists management in managing inventories and scheduling production. A) inventories. B) overhead. C) scheduling production. D) both inventories and scheduling production. E) MRP

E) MRP

_________ refers to IT and other electronic products that are at or near the end of their useful life.

E-waste

_______ is a key component to quick-response technology systems.

EDI

A _________ environment is a continuous-flow environment rather than a batch-process environment.

JIT

A continuous flow environment that seeks to minimize or totally eliminate inventories

JIT

Involves inbound and outbound logistics, operations, marketing, and service

Primary business processes

An example of an internal control

Segregation of duties

The first step in the systems development approach

Systems analysis

The philosophy that one should do the right thing the first time is better known as _________.

TQM or TQP

A synonym for the acronym TQP

Total quality management

Seal of approval from the AICPA certifying that a Web site has met certain standards

Web Trust