Test bank for accounting information systems the crossroads of accounting and IT 2nd edition

Test Bank for Accounting Information Systems The Crossroads
of Accounting and IT 2nd Edition

Which event is part of the Sales Cycle?

1. A) Enter time
2. B) Make deposit
3. C) Create purchase order
4. D) Receive item


Which event is usually performed in the Financial modules of the Baseline
Accounting System?

1. A) Make adjusting entries
2. B) Pay bills
3. C) Enter time
4. D) Create income statement
Which accounting software is typically used in a mid-sized enterprise?

1. A) Oracle`s Peoplesoft Enterprise
2. B) SAP Business One
3. C) Peachtree
4. D) Quickbooks Enterprise
What modules comprise a baseline accounting system?

1. A) Vendors, Employees, Sales, Banking, Financial, and Reports
2. B) Inventory, Employees, Sales, Banking, Financial, and Reports
3. C) Inventory, Employees, Sales, Banking, Accounting, and Reports
4. D) Vendors, Employees, Customers, Banking, Financial, and Reports
To record a payment for inventory delivered, the information would be

entered in a screen that looks similar to which paper form?

1. A) Sales receipt
2. B) Check


3. C) Invoice
4. D) Purchase order
To record an inventory order, the information would be entered in a screen
that looks similar to which paper form?

1. A) Sales receipt
2. B) Check
3. C) Invoice
4. D) Purchase order
What is the purpose of an onscreen entry form?

1. A) Onscreen entry forms allow you to perform data Analysis that is
cumbersome in a relational database.
2. B) Onscreen entry forms provide predictive modeling to gain insights from
data to improve business decisions.
3. C) Onscreen entry forms provide a familiar interface for entering information
into a database.
4. D) Onscreen entry forms help ensure information is entered only once in the
database.
Which accounting software is designed for a large-scale company?

1. A) Oracle`s PeopleSoft Enterprise
2. B) SAP Business All-In-One
3. C) Oracle`s JD Edwards EnterpriseOne

4. D) SAP Business One


When designing a database, which field would NOT belong in a table storing
customer information?

1. A) First Name
2. B) Order Number
3. C) Zip Code
4. D) Street Address
When designing a database, which field would NOT belong in a table storing
inventory information?

1. A) Cost
2. B) Part Number
3. C) Purchase Order
4. D) Sale Price
A database form is a

1. A) Database screen for data input
2. B) Database queries
3. C) Database screen for data output
4. D) Database searches
In an accounting system database, which field belongs in a table containing
customer information?

1. A) Street Address
2. B) Cost

3. C) Item Number
4. D) Invoice Number
A spreadsheet can be viewed as

1. A) A database form
2. B) A relational database
3. C) A flat database
4. D) A collection of related tables
In an accounting system database, which field belongs in a table containing
inventory information?

1. A) Vendor ID
2. B) Purchase Order
3. C) City
4. D) Invoice Number
The following field names are part of a table for a company's inventory. Which
field name could be the primary key for this table?

1. A) Sales Prices
2. B) Cost
3. C) Item ID
4. D) Vendor ID


In a relational database, how are tables connected?

1. A) By a query statement
2. B) By network addresses
3. C) By the tables names
4. D) By fields that are common in two or more tables

The following fields are common to tables storing customer, vendor, and
employee information EXCEPT

1. A) City
2. B) Area Code
3. C) Cost
4. D) State
Which field below would NOT be stored in an order table?

1. A) Customer ID
2. B) Vendor ID
3. C) Order ID
4. D) ItemID
What is the purpose of a database query?

1. A) To search the database to answer a specific question
2. B) To connect related tables
3. C) To uniquely identify a record in a database table


4. D) To provide a format for viewing data
What is the purpose of Business Intelligence Technologies?

1. A) Shadow the accounting system
2. B) Safeguard information
3. C) Extract data from databases
4. D) Find consumer patterns and insights
Spreadsheets containing data extracted from a relational database are called
what?

1. A) Shadow data
2. B) Ghost data
3. C) Gray data
4. D) Intelligent
Which of the following is NOT considered an information asset?

1. A) Shadow data systems
2. B) Business intelligence applications
3. C) Electronic records
4. D) None of the above
Which act requires publicly traded companies to assess the effectiveness of
their internal controls and have an independent CPA firm audit this
assessment?

1. A) Sarbanes-Oxley Act of 2002


2. B) The GAAP Act of 1932
3. C) Wheat Commission
4. D) Security Exchange Commission Act of 1934
What is the purpose of security and controls over information assets?

1. A) Security and controls are to prevent fraud, unauthorized access,
modification, destruction, or disclosure of information assets.
2. B) Security and controls are to prevent data analysis.
3. C) Security and controls are to frustrate employees with legitimate need to
access information assets.
4. D) Security and controls are to ensure all the information assets are available
to all employees.
What is data mining?

1. A) A type of OLAP cube
2. B) A method for safeguarding information asset
3. C) A business intelligence tool
4. D) All the above except C
Which of the following statements about data warehouses is false?

1. A) Data warehouses store vast amounts of enterprise data.
2. B) Data warehouses permit extensive data analytics to provide business
intelligence tools for improved decision quality.
3. C) Data warehouses store current and historical data.
4. D) Data warehouses are not considered an information asset and do not need
to be safeguarded.


Processes are related activities or events that create value.

1. True
2. False
An IT audit includes auditing the System Development Life Cycle (SDLC).

1. True
2. False
What are the three key factors to consider for a successful accounting
system?

1. A) People, budget, and time
2. B) Time, processes, and technology
3. C) People, processes, and technology
4. D) Processes, budget, and time

Which of the following agents is internal to a company?

1. A) Customer
2. B) Employee
3. C) Vendor
4. D) Investor
IFRS is an acronym for

1. A) Integrated Financial Reporting Services


2. B) International Financial Reporting Standards
3. C) Integrated Federal Recording Standards
4. D) International Financial Regulated Services
Which of the following processes are performed in the Designing Phase of the
SDLC?

1. A) Identify the new business processes
2. B) Install the new system
3. C) Test the new system
4. D) Identify the new requirements for the system
The staffing process occurs in which phase of the SDLC?

1. A) Build/Buy Phase
2. B) Deploy Phase
3. C) Analyze Phase
4. D) Plan Phase
Analyzing the impact an accounting system will have on people should occur
in which phase of the SDLC?

1. A) Deploy
2. B) Design
3. C) Analyze
4. D) Planning


IT ________ is the design or blueprint for an enterprise's information
technology.

1. A) Technology
2. B) Infrastructures
3. C) Network
4. D) Architecture

An IT auditor must understand the terms and definitions used by accounting
and IT professionals.

1. True
2. False
Which of the following are NOT part of the basic functions of an enterprise
system?

1. A) Hiring
2. B) Output
3. C) Input
4. D) Processing
A Supply Chain Management (SCM) system is a subsystem of an Accounting
System.

1. True

2. False


Activities performed by various departments within a company are rarely
interconnected.

1. True
2. False
An integrated enterprise system allows different departments to use the
same information.

1. True
2. False
Business processes are related activities performed by an enterprise to
create value by transforming input into output.

1. True
2. False
When data is "hard keyed" into the program, which of the following is
true?

1. A) Changing the data requires recreating (recording) the entire program.
2. B) Changing the data requires purchasing additional computer storage and
may take days or weeks.
3. C) Changing the data is cost efficient and may be accomplished in a matter of
minutes.
4. D) Changing the data is costly and may take days or weeks.


What is an alternative to "hard keyed" data?

1. A) If user requirements are correctly defined, the data will not change and
may be `hard keyed.`
2. B) Using variables in the program, such as cell addresses in a spreadsheet.
3. C) Alternatives to `hard keyed` data is not possible. All data must be `hard
keyed.`
4. D) Creating the program in a way that does not require data.
The three basic functions of an enterprise system are

1. A) Input, processing, and output
2. B) Processing, output, and reports
3. C) Business intelligence, processing, and output
4. D) Input, data, and reports
Which symbol is used by IT professionals to represent the enterprise
network?

1. A) Cloud
2. B) Star
3. C) Circle
4. D) Square
What is the purpose of Enterprise Resource Planning (ERP) software?

1. A) Help identify the end of a product`s life cycle
2. B) Identify new trends in consumer purchasing


3. C) Analyze an organization`s sales projections
4. D) Help managers control organizational resources
An accounting system spans which of the following Value Chain
components?

1. A) Support
2. B) Purchase
3. C) Customers
4. D) All the above except C
The Value Chain begins with which activity?

1. A) Selling items to customers
2. B) Creating the products
3. C) Purchasing items from vendors
4. D) Providing support to customers
Which transactions are related to the purchasing cycle?

1. A) Buying items from vendors
2. B) Paying employees
3. C) Selling items to customers
4. D) None of the above
Which transactions are related to the sales cycle?

1. A) Paying employees


2. B) Selling items to customers
3. C) Buying items from vendors
4. D) None of the above
What purpose of the processing function of an enterprise system?

1. A) Summarize information
2. B) Capture information
3. C) Generate reports

4. D) Sort and store information
The Vendors Module of a baseline accounting system relates to the sales
cycle.

1. True
2. False
The Customer Module of a baseline accounting system includes creating
purchase orders.

1. True
2. False
The Banking Module of a baseline accounting system includes bill paying
transactions.

1. True
2. False


Accounting software often includes a navigation screen that represents the
major modules within the accounting system.

1. True
2. False
A database may have two or more tables with the exact same name.

1. True
2. False
Financial accounting focuses on providing accounting information to internal
users, primarily management.

1. True
2. False
An event that does not involve an exchange, for example accrued interest
expense, does not need to be recorded in the accounting system.

1. True
2. False
A primary key may be used to associate customer information (name,
address, phone number, etc.) with a sales order.

1. True
2. False


A primary key is a unique identifer for a database table.

1. True
2. False
Understanding accounting systems involves seeing the overall system. There
is no need to focus on the details.

1. True
2. False
Business Intelligence tools use queries to extract data directly from the
relational database, bypassing the OLAP cube and any accompanying
delay.

1. True
2. False
Data cubes allow you to view data in two dimensions.

1. True
2. False
Structured Query Language is used to query a relational database.

1. True
2. False


When looking at an accounting system using the aerial view, you see

1. A) Detailed information recorded in the accounting system
2. B) Information available on the tax reports for the Internal Revenue Services
and other tax agencies
3. C) Accounting information available to internal users, primarily management
4. D) An enterprise-wide view of an organization showing the entire accounting
system
When looking at an accounting system using the zoom view, you see

1. A) An enterprise-wide view of an organization showing the entire accounting
system
2. B) Information available on the tax reports for the Internal Revenue Service
and other tax agencies
3. C) Detailed information recorded in the accounting system
4. D) Accounting information available to internal users, primarily management
The Vendors module in the Baseline Accounting System corresponds to which
transaction cycle?

1. A) Sales cycle
2. B) Financial cycle

3. C) Payroll cycle
4. D) Purchasing cycle


Which transactions are usually performed in the Customers module of the
Baseline Accounting System?

1. A) Receive inventory
2. B) Create invoice
3. C) Create purchase order
4. D) Pay bills
The sales cycle corresponds to which module in the Baseline Accounting
System?

1. A) Banking
2. B) Vendors
3. C) Customers
4. D) Employees
Which event is part of the Purchasing Cycle?

1. A) Pay bill
2. B) Create invoice
3. C) Make deposit
4. D) Enter bill