148 test bank for accounting information systems 11th edition

148 Test Bank for Accounting Information Systems 11th
Edition
True False Questions - Free Text Questions -

Mutiple Choice Questions - Page 1
________ involves the process of ensuring the suite of organization's
applications work together as a composite application according to the goals
and objectives of the organization.
1.

A) Applications requirements planning

2.

B) Enterprise application structure

3.

C) Enterprise resource planning

4.

D) Applications architecture

Which of the following is not an objective of internal control as a process?
1.

A) Reliability of financial reporting

2.

B) Accuracy of accounting information

3.

C) Compliance with applicable laws and regulations

4.

D) Effectiveness and efficiency of operations

The internal audit function within an organization should be considered a(n)
1.

A) activity supervised by the controller.

2.

B) sub function of the treasurer.

3.

C) independent appraisal activity.


4.

D) optional service provided by the firm's external auditors.

Groups of organizations working together to create new products, new
process methods, and/or human capital intelligence is referred to as a(n)

1.

A) ERP.

2.

B) e-commerce.

3.

C) collaborative commerce.

4.

D) application consortium.

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?
1.

A) Production

2.

B) Expenditure

3.

C) Financial reporting

4.

D) Revenue

The fundamental benefits of information technology for AISs include the
following except
1.

A) communication.

2.

B) information organization.

3.

C) systems development.

4.

D) automation.


The preparation of forecasts and analyses used by management in planning
and controlling the operations of the organization is generally a(n)
1.

A) budgeting function.

2.

B) tax planning function.

3.

C) accounting manager function.

4.

D) treasurer function.

A(n) ________ is a group of loosely connected companies that work together
to maximize the value of their economic outputs.
1.

A) extended enterprise

2.

B) enterprise resource planners

3.

C) enterprise suite

4.

D) value chain consortium

What language facilitates business-to-business commerce through the
extended value chain, which includes both manufacturers and their
suppliers?
1.

A) VCML

2.

B) XBRL

3.

C) HTML

4.

D) COBOL

Which item listed below is not considered a primary business process?
1.

A) Marketing


2.

B) Outbound sales logistics

3.

C) Technology development

4.

D) Service

Which systems permit the reprogramming of computers to produce entirely
different products in the same manufacturing facility with the same
equipment?
1.

A) MRP and MRP II

2.

B) CIMs and FMSs

3.

C) ESs and FMSs

4.

D) ERPs and MRPs

The international quality-management standard credited for promoting the
process management approach is the
1.

A) Six Sigma.

2.

B) ISA-95.

3.

C) ISO 9001.

4.

D) ISA-Y2K.

A system that manages all contacts with customers is a ________ system.
1.

A) customer value chain

2.

B) customer relation management

3.

C) customer supply chain management

4.

D) customer requirements planning

Material requirements planning software assists management in managing
1.

A) inventories.

2.

B) overhead.

3.

C) scheduling production.

4.

D) both inventories and scheduling production.

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)
1.

A) ERP II.

2.

B) application architecture.

3.

C) value chain application suite.

4.

D) enterprise application suite.

The area of functional specialization which is responsible for the design,
coding, testing, and debugging of computer programs is the
1.

A) technical support function.

2.

B) user function.

3.

C) operations function.

4.

D) programming function.

The three general phases of systems development projects and the order in
which they occur are
1.

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


2.

B) systems design, systems implementation, and systems auditing.

3.

C) systems design, systems analysis, and systems programming.

4.

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

A complete systems solution involving one software package and one
database is referred to as
1.

A) ERP.

2.

B) MRP.

3.

C) SCM.

4.

D) DSS.

The high-level executive who supervises accounting functions such as
budgeting, billing, and payroll is known as the
1.

A) treasurer.

2.

B) controller.

3.

C) chief information officer.

4.

D) chief internal auditor.

Information retrieval from the organization's database using the query
language feature of DBMS is a common
1.

A) programming function.

2.

B) technical support function.

3.

C) EUC application.

4.

D) ES application.


________ are the only physical items that are absolutely required for a user of
cloud computing.
1.

A) A data storage unit and an Internet connection

2.

B) A Web browser and a RFID card

3.

C) A QR reader and an Internet connection

4.

D) A Web browser and an Internet connection

The technological philosophy that emphasizes "customer satisfaction" to the
point of "customer obsession" is known as

1.

A) TQP.

2.

B) EDI.

3.

C) TQM.

4.

D) TQP and TQM.

From an organization's viewpoint, a distinction can be drawn between the
following two broad classes of accounting information.
1.

A) Historical and future

2.

B) Strategic and operational

3.

C) Internal and external

4.

D) Mandatory and discretionary

Which of the following is not a common transaction processing cycle found in
business organizations?
1.

A) Expenditure cycle


2.

B) Accounting cycle

3.

C) Production cycle

4.

D) Revenue cycle

The staff position which would generally report to the treasurer rather than to
the controller is
1.

A) budgeting.

2.

B) accounts payable.

3.

C) credit manager.

4.

D) cost accounting.

When information levels within an organization are viewed as a pyramid,
strategic information is used primarily by
1.

A) lower-level management.

2.

B) top-level management.

3.

C) middle management.

4.

D) lower-level and middle management.

Quick Response reader application can typically ________.

1.

A) open a Web site

2.

B) display a video

3.

C) display text

4.

D) All of these answers are correct.


The term that best describes an information system that is tailored to the
strategic information needs of top-level management is a(n)
1.

A) accounting information system.

2.

B) expert system.

3.

C) executive information system.

4.

D) EDP system.

The transaction processing cycle that is concerned with the events related to
the transformation of resources into goods and services is
1.

A) production.

2.

B) revenue.

3.

C) financial reporting.

4.

D) expenditure.

The following are benefits of an ERP except for the ability
1.

A) to eliminate data duplication and redundancy.

2.

B) to standardize data formats.

3.

C) to easily share data from various departments.

4.

D) to easily customize software to meet company needs.

A(n) ________ system encompasses the planning and management of all
activities involved in sourcing, procurement, conversion, and logistics
management activities.
1.

A) CRM


2.

B) SCM

3.

C) DS

4.

D) ES

64 Free Test Bank for Accounting Information Systems
11th Edition by Bodnar Mutiple Choice Questions - Page
2
When should the actual users of a system be involved when a new system is
being developed?
1.

A) As soon as the new system is implemented

2.

B) After all unexpected bugs and glitches have been found and corrected

3.

C) Only after all employees have been thoroughly trained to use the new system

4.

D) Throughout the design of the new system

An organization's internal control process consists of how many elements?
1.

A) Six

2.

B) Four

3.

C) Five

4.

D) Seven

A report prepared exclusively for use by this group is almost always
mandatory.
1.

A) The company's labor union

2.

B) The Internal Revenue Service


3.

C) The company's main bank

4.

D) The company's main supplier of its raw materials

Software that integrates business processes on a company-wide basis is
called
1.

A) enterprise resource planning.

2.

B) executive information systems.

3.

C) expert systems.

4.

D) manufacturing information systems.

Which of the following is not associated with lean manufacturing?
1.

A) CRM

2.

B) Toyota Production System

3.

C) Eliminating waste

4.

D) JIT

Which of the statements below is false regarding extensible business
reporting language (XBRL)?
1.

A) Many experts feel that XBRL will replace EDI.

2.

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

3.

C) The SEC allows use of the XBRL format.

4.

D) XBRL facilitates the exchange of business documents over the Internet.


Which of the following is not an objective of internal control?
1.

A) Reliability of financial reporting

2.

B) Effectiveness and efficiency of operations

3.

C) Relevance of financial statements

4.

D) Compliance with applicable laws and regulations

An important quick response technology used to track objects using radio
signals is called
1.

A) sonic tagging.

2.

B) radio frequency identification.

3.

C) object frequency tagging.

4.

D) frequency waves identification.

Green IT is concerned with
1.

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

2.

B) using less fuel in the creation of IT systems.

3.

C) designing more efficient systems in order to reduce necessary storage
requirements.

4.

D) Green IT is concerned with all of the above.

Which of the following is not a consumer benefit of Web commerce?
1.

A) There is no waiting for a salesperson or product information.

2.

B) There is automatic electronic encoding of transaction data.


3.

C) Web-based transactions are encrypted providing security.

4.

D) Intelligent Web-based software can provide answers to complicated questions.

A company known for its use of blueprints in systems design for clients is
1.

A) SAM.

2.

B) SAP.

3.

C) SAS.

4.

D) SAR.

The Clearing House Automated Payment System is also known as
1.

A) FedWire.

2.

B) CHIPS.

3.

C) CHAPS.

4.

D) EFT.

Which of the following specialized information systems would be the most
useful in providing information for routine decisions?
1.

A) Decision support system

2.

B) Expert system

3.

C) Executive information system

4.

D) Accounting information system

The following are EDI standards except
1.

A) ANSI X.12.

2.

B) AS2.

3.

C) eBXML.

4.

D) ISO-95.

Which statement regarding internal control is false?
1.

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

2.

B) Ideally, a task can be divided to make job functions as natural checks on each other.

3.

C) A specific person should ideally be responsible for each task or job function.

4.

D) All records should allow cross-referencing from one area of responsibility to another.

Which of the steps below is not part of the systems approach process?

1.

A) Creation of alternatives

2.

B) Statement of system objective(s)

3.

C) Systems evaluation

4.

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

In the systems approach to administering a systems project, which of the
following phases should be performed first?
1.

A) Creating alternatives

2.

B) Analyzing the system

3.

C) Implementing the system

4.

D) Stating the system's objectives


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?
1.

A) Internal auditing

2.

B) Vice President for Administration

3.

C) Chief Information Officer

4.

D) A steering committee

An accounting information system plays a key role in the internal control
process, thereby helping management with its major responsibility of
1.

A) managing the internal audit function.

2.

B) stewardship.

3.

C) global-level marketing.

4.

D) managing the production cycle.

When viewing a typical organization chart, the individual responsible for the
finances of the business is the
1.

A) controller.

2.

B) president.

3.

C) vice president.

4.

D) treasurer.

Which of the following is not an objective of a design group or project team
charged with creating and implementing a new information system?
1.

A) Securing funding for a new information system

2.

B) Identifying needs to be satisfied by a new system

3.

C) Developing technical specifications for a new system

4.

D) Implementation of a new system

Which of the following is not one of the criteria of the design specification
step of the systems approach to design?
1.

A) Using a team approach in many cases

2.

B) Sufficient detailed specifications for implementation process

3.

C) Identification of system inputs

4.

D) Strategies for producing system outputs

Which of the following is not a merchant benefit of Web commerce?
1.

A) Cost savings through automated ordering

2.

B) Worldwide availability of the company's products

3.

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

4.

D) Low overhead

Which of the following is used to ensure a high degree of user involvement in
the control of an information systems department?
1.

A) Maintenance programmers

2.

B) Operations manager


3.

C) Technical support committee

4.

D) Steering committee

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?
1.

A) Level of aggregation

2.

B) Time horizon

3.

C) Scope

4.

D) Required accuracy

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
1.

A) primary business process.

2.

B) accounting information system.

3.

C) value chain.

4.

D) internal control process.

Which of the following is not an example of good internal control?
1.

A) Having adequate records

2.

B) Being sure that everyone clearly understands his or her own responsibilities

3.

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


4.

D) Having periodic physical checks (or counts) of the inventory

RFID tags include all of the following except
1.

A) active tags.

2.

B) passive tags.

3.

C) inactive tags.

4.

D) semi-passive tags.

When a management report is discretionary rather than mandatory, the
primary consideration should be
1.

A) that there are benefits to be obtained by producing the report.

2.

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

3.

C) to minimize the cost of producing the report while maintaining minimum standards of
usefulness.

4.

D) to minimize the cost of producing the report while maintaining minimum standards of
reliability and accuracy.

Which of the following is not a benefit of electronic data interchange (EDI)?
1.

A) Electronic mail messages are interpreted by humans.

2.

B) EDI eliminates paper.

3.

C) EDI saves time.

4.

D) EDI may allow for EFT payments to vendor accounts.


Which of the following groups would not be considered external users of the
company's information?
1.

A) Factory supervisors

2.

B) Creditors

3.

C) Investors

4.

D) Labor unions

The exchange of business documents such as purchase orders and invoices
in an electronic format between the computers of separate organizations is
known as
1.

A) e-mail.

2.

B) electronic data interchange.

3.

C) computer-integrated information system.

4.

D) electronic document exchange.

Internal users of reports from a company's information system might include
all of the following except its
1.

A) chief executive officer.

2.

B) stockholders.

3.

C) payroll department.

4.

D) lower-level managers.

True - False Questions
The AIS benefits of information technology include automation, information
organization, and communication.
1.

True

2.

False

Lean manufacturing focuses on eliminating waste from the entire value chain.
1.

True

2.

False

In CIM systems, computers control management-designed parts of the
manufacturing process.
1.

True

2.

False

ERP II adds an Enterprise Application Suite (EAS) to aid in the communication
between functional areas.
1.

True

2.

False

A decision support system (DSS) is tailored to the strategic information needs
of top-level management.
1.

True

2.

False


Good documentation means that records should be maintained by all parties
involved in a transaction.
1.

True

2.

False

Cloud computing describes the increasing trend for data processing
capabilities to be provided as a service via the Internet.
1.

True

2.

False

Business processes are always triggered by some economic event, and all
have clearly defined starting and ending points.
1.

True

2.

False

Operational transaction cycles have traditionally grouped activities of a
business into six common operational processes.
1.

True

2.

False

The SEC requires that all companies must file their financial reports
electronically using XBRL.
1.

True

2.

False


FedWire is a retail EFT system used for telephone wire transfers and
payments.
1.

True

2.

False

The process management approach aids in the management and
improvement of a company's processes in order to increase customer
satisfaction while ignoring the company's cost structure.
1.

True

2.

False

Only active RFID tags transmit signals containing digital information to
receivers.
1.

True

2.

False

A typical CRM contains one common database in which all departments with
customer contact can access and update.
1.

True

2.

False

A just-in-time manufacturing system is one form of lean manufacturing.
1.

True

2.

False


An extended enterprise brings suppliers and customers together in order to
meet customer demand while minimizing supplier costs.
1.

True

2.

False

ERPs are inexpensive and relatively easy to implement.
1.

True

2.

False

The operations function allows specialization in areas such as operating
systems and software and communications technology.
1.

True

2.

False

Most batch processing environments are JIT environments.
1.

True

2.

False

An information center is a support facility for end users in an organization.
1.

True

2.

False

A key characteristic and benefit of business processes is that they are always
limited to one functional area of the information system.
1.

True

2.

False

The essence of cloud computing is that data storage is maintained by the enduser.
1.

True

2.

False

Accounting information systems are designed to gather and utilize
information which may cost more to provide than it is worth to the user.
1.

True

2.

False

Flexible manufacturing systems can be reprogrammed to produce entirely
different products.
1.

True

2.

False

The director of internal auditing should report directly to the controller of the
company.
1.

True

2.

False

EDI is a key component to quick-response technology systems.
1.

True

2.

False


Microsoft sponsors the Web TrustTM seal of approval to certain Web sites
that meet their security and integrity criteria.
1.

True

2.

False

Quick Response code is a three-dimensional bar code.
1.

True

2.

False

MRP and MRP II software was created to aid in Supply Chain Management
(SCM).
1.

True

2.

False

XBRL is a language that facilitates the exchange of financial statements over
the Internet.
1.

True

2.

False

ERPs can either be industry-specific or based around "best practices" of
various sized companies.
1.

True

2.

False