Accounting Information Systems Chapters Quizzes

Accounting Information Systems Chapters Quizzes

Accounting Information Systems Chapter 1 Quiz

online quiz helpQ1. What is the relationship between an AIS and an IS?

  • IS manages inventory while AIS manages sales data
  • IS facilitates operational functions and AIS facilitates financial functions
  • An IS is a natural system and an AIS is a man-made system
  • An AIS cannot be distinguished separately from an IS

Q2. What are the three steps in decision making?

  • Design, Choice, Decision
  • Decision, Action, Feedback
  • Choice, Decision, Action
  • Intelligence, Design, Choice

Q3. The following are included in the 10 elements are included in the study of AIS except:

  • Technology, databases, reporting, control
  • Business operations, events processing, management decision making, systems development and operation
  • All of these choices are part of the 10 elements
  • Communications, accounting and auditing principles

Q4. Each of the following is one of the themes of this textbook except for:

  • Controls
  • Assurance Services
  • Enterprise Systems
  • E-Business

Q5. Factors that distinguish data from information are all of the following except:

  • Data are facts or figures in raw form
  • All of these choices are correct are factors
  • Information is data
  • Data must be transformed into information

Q6. Qualities of information include all of the following except:

  • Understandability
  • Public Access
  • Relevance
  • Integrity

Q7. Are the terms system and subsystem synonymous?

  • The terms system and subsystem are synonymous in certain systems
  • No. Each part of a subsystem is known as a system
  • No. Each part of a system is known as a subsystem
  • The terms system and subsystem are synonymous

Q8. What are three logical components of a business process?

  • Management, operations and financial processes
  • Management, operations and information processes
  • Accounting, operations and information processes
  • Accounting, marketing and financial processes

Q9. How do horizontal and vertical information flows differ?

  • Operations and information flows are both horizontal and vertical
  • Vertical flows relate to specific business events
  • Horizontal and vertical information flows do not differ
  • Horizontal flows relate to an aggregate of data related to several business events

Q10. Organization, interrelationships, integration, and central objectives must be present in a system because:

  • Central objectives exist only in man-made systems
  • A system consists of interrelated parts that continue to function as separate systems
  • A system is a set of interdependent elements that together accomplish specific objectives
  • An integrated system is no longer divisible into subsystems

Accounting Information Systems Chapter 2 Quiz

Q1. An enterprise system can support the functioning of an organization’s processes by enhancing all of the following except:

  • Automation of business processes
  • All of these choices are correct are beneficial functions of enterprise systems
  • Communication with the organization
  • Systems integration

Q2.

  • Single database
  • Decentralized empowerment
  • All of these choices are correct are advantages
  • Standardization of business processes

Q3. Which of the following is true of value chains?

  • They manage product data during a product’s life in order to increase its value.
  • They consist of activities performed by the organization to transform inputs into outputs valued by the customer.
  • They enable the steps in an organization’s supply chain, including demand planning and acquiring inventory.
  • They are an approach to connecting information systems within an organization so as to increase the organization’s value.

Q4. Lack of information systems integration when receiving a customer order over the phone can cause all of the following problems except:

  • Sales person may have to put the customer on hold while checking with another department.
  • Sales person may not be able to determine the items current price.
  • Sales person may have to determine whether or not an item is available.
  • Sales person may not be able to determine a customer’s creditworthiness.

Q5. The following are key features/characteristics of an enterprise system except:

  • All of these choices are correct are features of an enterprise system
  • Automation or computerization of business processes
  • Integration of the major business processes
  • Consists of modules

Q6. Lack of systems integration may result in the same data having to be multiple times into the systems. This can weaken which of the following data characteristics?

  • Completeness but not accuracy
  • Consistency but not accuracy
  • Completeness but not consistency
  • Consistency, accuracy and completeness

Q7. All of the following are true about add-on modules to an ERP system except that they:

  • Are not necessary to the integration of the company’s core business processes
  • May be used to complement the core functionality of an ERP system
  • Can be used to enhance the interface with business partners but not with customers
  • Can be provided by a third party vendor other than the ERP vendor

Q8. It is important to capture the who, what, where, and when in describing business events because:

  • All of this information is needed to make initial journal entries.
  • This information is now required to be collected by Sarbanes-Oxley 2002.
  • This information can supplement accounting information and can assist managers in their decision making.
  • There is no cost in capturing this information if this is done at the time of the transaction or event.

Q9. Which of the following is true about enterprise application integration (EAI)?

  • EAI cannot be used to connect pieces of an enterprise system to add-on modules such as CRM software.
  • EAI is an approach that combines processes, software, standards, and hardware to link two or more systems together.
  • EAI cannot be used to connect pieces of an enterprise system to legacy systems.
  • EAI can only be used to connect systems within a company.

Q10. The Sales and Distribution (SD) module in SAP:

  • Includes recording customer orders, shipping goods to the customer, but not billing customers
  • Includes recording customer orders, shipping goods to the customer, and billing customers
  • Contains functions related to the acquisition of goods from vendors
  • Includes cost center accounting, profitability analysis for sales, activity-based accounting, and budgeting

Accounting Information Systems Chapter 3 Quiz

Q1. The relationship between online real-time (OLRT) and immediate mode processing:

  • OLRT completes all stages of business event data processing in immediate mode
  • OLRT which uses immediate mode processing is a disadvantage to decision makers unless they use traditional periodic mode processing
  • OLRT and immediate mode are not related
  • OLRT completes all stages of business event data processing in traditional mode

Q2. The difference between business event data and master data is:

  • Master data is relatively temporary data
  • Business event data includes data such as the general ledger
  • Business event data is relatively permanent data
  • Master data is relatively permanent data

Q3. Which of the following are activities associated with an automated accounting process?

  • Post the business event from the journal to a subsidiary ledger
  • Update master data
  • Post the total from the journal to the general ledger. This is a manual accounting process
  • Journalize the business event

Q4. The basic subprocesses completed in processing business event data using batch processing do not include:

  • Journalize the business event
  • Update master data and generate output
  • Record business event data
  • Business event occurs

Q5. Web Services:

  • Is a single database
  • Is an enterprise system
  • Is a hardware application
  • Is a software application

Q6. The basic subprocesses completed in processing business event data using OLRT processing do not include:

  • Update master data
  • Generate reports (and support queries)
  • Record business event data
  • Journalize the business event

Q7. E-business is all of the following, except:

  • Enabling organizations to become part of new value chains
  • A paper-trail
  • E-commerce
  • Electronic business events

Q8. The relationship between the periodic mode and batch processing is:

  • Batch processing is the processing of data as a group
  • Batch processing is heavily dependent on periodic mode
  • Periodic mode is the processing of data as a group
  • Periodic mode is the most efficient way to process business event data

Q9. The use of online transaction entry (OLTE) can increase efficiency by:

  • Having one person enter business event data have a second person perform the data entry
  • Processing of store data is immediate and is not completed on a batch of event data at a later time.
  • Reduces the redundancies in periodic mode processing
  • Collecting information as required by Sarbanes-Oxley 2002

Q10. Which of the following are activities associated with a manual accounting process?

  • Journalize the business event
  • Record business event data
  • Generate reports (and support queries)
  • Update master data

Accounting Information Systems Chapter 6 Quiz

Q1. Which of the following is not an objective in the development of an REA model?

  • To identify the data required by managers and other users to perform effectively
  • To monitor how well a company uses its resources
  • To integrate the data in a way that allows those users to efficiently access the information needed
  • To incorporate financial and non-financial data, and accounting and non-accounting data

Q2. Which of the following is true about recursive relationships?

  • They cause redundancies
  • They are best modeled in the database as two separate entities
  • They occur between two different instances of an entity
  • They should not be represented in the database

Q3. Relationships are:

  • A key attribute
  • A composite attribute
  • Associations between entities.
  • None of these choices

Q4. Which of the following is true about business intelligence (BI)?

  • BI cannot use data from data warehouses
  • BI uses financial data and transforms it into non-financial information
  • BI uses only structured data
  • BI uses simplified business models to help managers make better decisions

Q5. Which of the following is not one of the three components of the SQL SELECT statement?

  • A list of attributes that we want to SELECT from the database
  • A WHERE clause that sets the conditions under which attribute values are to be retrieved
  • A list of tables where these attributes can be found
  • A PULL clause that sets the conditions for extracting the desired data

Q6. A tuple is not:

  • One employee in an instance of the EMPLOYEE relation
  • A row in a relational database
  • A collection of data representing multiple occurrences of a resource, event, or agent.
  • A set of data that describes a single instance of the entity represented by a relation

Q7. A key attribute:

  • All of these choices are correct
  • Uses the client’s name
  • Is the secondary key
  • Is the attribute whose value is unique

Q8. The participation constraint:

  • Specifies the degree of participation
  • Is 2 or 3
  • Notation reflects (maximum, minimum)
  • The minimum participation in the relationship can be one or two.

Q9. Which of the following is true about an entity in a relational database?

  • Is also called the primary key
  • Is several things of the type defined by the entity
  • Is represented as a table
  • Is the input to BI dashboards

Q10. Which of the following is false about attributes?

  • It is one specific thing of the type defined by the entity
  • It is an item of data that characterizes an entity or relationship
  • It is an item of data that characterizes a relationship
  • The essential characteristics of an entity are its attributes

Accounting Information Systems Chapter 7 Quiz

Q1. The key provisions of SOX are that SOX:

  • Increased accountability of company officers and directors
  • Strengthened auditor independence rules
  • All of these choices
  • Created a new accounting oversight board

Q2. Elements common to definitions of internal control include all of the following, except:

  • Compliance with applicable laws and regulations
  • Effectiveness of operations
  • Reliability of financial reporting
  • Automation of business processes

Q3. The difference between risks and opportunities is:

  • Risks could have a positive impact and opportunities could have a negative impact on the organization’s objectives.
  • Opportunities require response, whereas risks are channeled back to the strategy-setting process.
  • Risks and opportunities are identified through risk identification.
  • Risks could have a negative impact and opportunities could have a positive impact on the organization’s objectives.

Q4. Risk responses do not include:

  • Sharing a risk by, for example, buying insurance or outsourcing the activity
  • Staying in the activity that is giving rise to the risk
  • Accepting a risk by taking no action
  • Reducing a risk by taking actions that reduce the likelihood of an event

Q5. The eight elements of ERM do not include:

  • Issue management
  • Objective setting
  • Risk management
  • Information and communication

Q6. Who is responsible for creating an organization’s control environment?

  • Directors
  • SOX
  • Shareholders
  • Management

Q7. What is the relationship between fraud and internal control?

  • Includes cost center accounting, profitability analysis for sales, activity-based accounting, and budgeting
  • Foreign Corrupt
  • Includes recording customer orders, shipping goods to the customer, but not billing customers
  • Internal control must be designed to address the risks of fraud

Q8. Organizational governance is:

  • Tactical management
  • Day to day management of the organization
  • A process by which organizations select objectives, establish processes to achieve objectives, and monitor performance
  • Compliance

Q9. Enterprise Risk Management (ERM):

  • Provides reasonable assurance regarding the achievement of entity objectives
  • All of these choices are correct are features of an ERM
  • Is designed to manage risk
  • Is the responsibility of an entity’s board of directors, management, and other personnel

Q10. ______control plans relate to a multitude of goals and processes and business _______control plans relate to the technology used to implement the process

  • Process, pervasive
  • IT, general
  • General, IT
  • Pervasive, process

Accounting Information Systems Chapter 8 Quiz

Q1. The key objective of segregating duties is to:

  • Segregate safeguarding, collusion authorizing and efficient functions
  • Segregate recording, safeguarding, collusion and authorizing functions
  • Segregate authorization, execution, recording, and safeguarding functions
  • Segregate execution, recording, safeguarding and collusion functions

Q2. All of the following are major elements of the strategic IT plan, except:

  • Investigate a competitor’s use of IT
  • Write policies
  • Leverage opportunities to apply information technology
  • Accommodate changes in organizational objectives

Q3. What is a policy?

  • A law to prevent fraud
  • A plan or process put in place to guide actions
  • A law to enforce penalties for noncompliance
  • A law to compel behaviors

Q4. Which of the following is not IT governance?

  • A process that ensures that IT protects the organizations assets
  • A process that ensures that IT establishes control processes to achieve objectives
  • A process that ensures that IT supports the organization’s objectives
  • A process that ensures that IT supports the organization’s strategies

Q5. Identify the item below that is not a category of a personnel control plan:

  • Management and termination
  • Monitoring and governance
  • Selection and hiring
  • Retention and development

Q6. IT control process domains in COBIT 5 include:

  • All of these choices are part of the domains
  • Evaluate, Deliver, and Monitor (EDM)
  • Align, Plan, and Organize (APO)
  • Build, Acquire, and Implement (BAI)

Q7. A well-documented application typically includes:

  • All of these choices are correct
  • Systems documentation
  • Program documentation
  • Operations run and user manuals

Q8. Which of the following functions within the IT organization need to be segregated?

  • Protect data and computer equipment
  • All of these choices are correct
  • Process data received from user departments
  • Create or update programs

Q9. Having two employees authorize the release of a purchase order or requiring dual signatures on checks is an example of what type of control?

  • IT controls
  • Pervasive controls
  • Compensatory controls
  • Application controls

Q10. What is the purpose of the strategic IT plan?

  • It is a segregation of duties control plan.
  • It is used to set the direction for the IT projects
  • It is used to set the direction for the organization
  • It is a static document

Accounting Information Systems Chapter 17 Quiz

Q1. The purpose of conducting an effectiveness analysis is to:

  • To define the future logical system
  • To verify the team’s cost/benefit results or produce conflicting results
  • Study the current physical system
  • To document the current logical system

Q2. Systems development life cycle (SDLC):

  • None of these choices are correct
  • Is made up of four primary phases
  • All of these choices are correct
  • Is the term often used to describe the progression through the phases of the systems development process

Q3. TELOS is an acronym for:

  • Technological, Economics, Legality, Operational, Scheduling
  • Technological, Economics, Legality, Operational, Systems
  • Technological, Enterprise, Legality, Operational, Systems
  • Technological, Enterprise, Logic, Operational, Systems

Q4. Maintenance activities include:

  • Adaptive maintenance adjusts applications to reflect changing business needs and environmental challenges
  • Corrective maintenance must be performed to fix errors
  • Perfective maintenance is conducted to improve the performance of an application
  • All of these choices

Q5. Skills accountants have to contribute in the development or acquisition of an AIS include:

  • Skills with metrics that will be needed to make important decisions and to monitor the acquisition process
  • Expertise in internal controls that will be extremely important during the development process and for the new system
  • All of these choices
  • Knowledge of the business processes and the business context for the new AIS

Q6. Tangible and intangible benefits are defined as:

  • An intangible cost (benefit) is one that cannot be reasonably quantified
  • All of these choices are correct
  • None of these choices
  • Tangible costs (benefits) can be reasonably quantified

Q7. Tasks required to complete a structured systems analysis include:

  • Determine the scope of the problem
  • Propose a course of action that might solve the problem
  • Determine the nature and the extent of each reported problem
  • Develop the physical requirements for the selected design

Q8. Tasks required to complete the systems survey do not include:

  • Develop logical specifications for the selected design
  • Propose a course of action that might solve the problem
  • Determine the nature and the extent of each reported problem
  • Determine the scope of the problem

Q9. A structured systems analysis:

  • None of these choices are correct
  • All of these choices are correct
  • Reflects a set of procedures conducted to generate the specifications for a new (or modified) information system or subsystem
  • Is often called structured systems analysis when certain “structured” tools and techniques, such as data flow diagrams (DFDs), are used in conducting the analysis

Q10. Systems development:

  • Is made up of two primary phases
  • Comprise the steps undertaken to create, modify, or maintain an organization’s information system
  • Is a set of procedures conducted to determine the practicability of a GL/BR project
  • Is an option for implementations

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