Skip to content
Exam Guides

Test Bank For Accounting Information Systems, 10th Edition

Strengthen your exam preparation with Test Bank For Accounting Information Systems, 10th Edition, offering a diverse set of questions and answers.

Preview 16 of 367 pages

See the first 16 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    1 Accounting Information Systems, 10e (Bodnar/Hopwood) Chapter 1 Accounting Information Systems: An Overview 1) A system is a collection of related resources designed to help a company achieve specified objectives. Answer: TRUE Diff: 1 Page Ref: 1 2) Accounting information systems are designed to gather and utilize information which may cost more to provide than it is worth to the user. Answer: FALSE Diff: 2 Page Ref: 3 3) The basic goal of accounting information systems is to convert financial data into information. Answer: TRUE Diff: 1 Page Ref: 1 4) Examples of the information provided by a financial information system are cash flow summaries and payment information. Answer: TRUE Diff: 2 Page Ref: 4 5) All data processed and information stored in an accounting information system are mandatory for financial reporting purposes. Answer: FALSE Diff: 2 Page Ref: 3 6) A typical CRM contains one common database in which all departments with customer contact can access and update. Answer: TRUE Diff: 1 Page Ref: 4 7) A typical CRM contains one database for each department which has customer contact. Answer: FALSE Diff: 1 Page Ref: 4 8) An extended enterprise brings suppliers and customers together in order to meet customer demand while minimizing supplier costs. Answer: FALSE Diff: 1 Page Ref: 4 9) Procurement and firm infrastructure are examples of primary business processes. Answer: FALSE Diff: 3 Page Ref: 9

  2. Page 2
  3. Page 3
    Read page 3 as text

    2 10) Good documentation means that records should be maintained by all parties involved in a transaction. Answer: TRUE Diff: 1 Page Ref: 13 11) Some organizations that use computers to process transactional data must have an information system function. Answer: FALSE Diff: 2 Page Ref: 15 12) The operations function allows specialization in areas such as operating systems and software and communications technology. Answer: FALSE Diff: 3 Page Ref: 16 13) Personal computers give end users their own processing power. Answer: TRUE Diff: 1 Page Ref: 17 14) Most batch processing environments are JIT environments. Answer: FALSE Diff: 2 Page Ref: 20 15) XBRL is a language that facilitates the exchange over the Internet of all kinds of business documents and financial statements. Answer: TRUE Diff: 2 Page Ref: 22 16) External users of accounting information include investors, customers, governmental agencies, and suppliers. Answer: TRUE Diff: 1 Page Ref: 2 17) The functional components of a management information system (such as marketing, manufacturing, human resources, and financial) are logically independent. Answer: TRUE Diff: 1 Page Ref: 3 18) A decision support system (DSS) is tailored to the strategic information needs of top - level management. Answer: FALSE Diff: 1 Page Ref: 4 19) The AIS benefits of information technology include automation, information organization, and communication. Answer: TRUE Diff: 1 Page Ref: 5

  4. Page 4
    Read page 4 as text

    3 20) AIS application architecture currently focuses on automating the traditional accounting cycle. Answer: FALSE Diff: 2 Page Ref: 6 21) MRP and MRP II software was created to aid in Supply Chain Management (SCM). Answer: TRUE Diff: 2 Page Ref: 6 22) In CIM systems, computers control management designed parts of the manufacturing process. Answer: FALSE Diff: 2 Page Ref: 6 23) Flexible manufacturing systems can be reprogrammed to produce entirely different products. Answer: TRUE Diff: 1 Page Ref: 6 24) 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. Answer: FALSE Diff: 2 Page Ref: 6 25) ERPs should reduce data duplication, increase communication between functional areas, and reduce complications of software updates. Answer: TRUE Diff: 2 Page Ref: 7 26) ERPs can either be industry - specific or based around "best practices" of various sized companies. Answer: TRUE Diff: 1 Page Ref: 7 27) ERPs are inexpensive and relatively easy to implement. Answer: FALSE Diff: 1 Page Ref: 7 28) ERP II adds an Enterprise Application Suite (EAS) to aid in the communication between functional areas. Answer: FALSE Diff: 2 Page Ref: 8 29) Business processes are always triggered by some economic event, and all have clearly defined starting and ending points. Answer: TRUE Diff: 2 Page Ref: 8

  5. Page 5
    Read page 5 as text

    4 30) A key characteristic and benefit of business processes is that they are always limited to one functional area of the information system. Answer: FALSE Diff: 2 Page Ref: 8 31) Analyzing a company's value chain aids in the identification of a company's competitive advantages. Answer: TRUE Diff: 2 Page Ref: 9 32) Operational transaction cycles have traditionally grouped activities of a business into six common operational processes. Answer: FALSE Diff: 2 Page Ref: 11 33) Transactions are used by auditors to verify account balances and internal controls. Answer: TRUE Diff: 2 Page Ref: 12 34) The accounting and finance functions should not be segregated in order to increase a company's internal control. Answer: FALSE Diff: 2 Page Ref: 13 35) The director of internal auditing should report directly to the controller of the company. Answer: FALSE Diff: 2 Page Ref: 14 36) The treasurer is responsible for the budgeting and tax planning aspects of a business. Answer: FALSE Diff: 2 Page Ref: 14 37) Systems programmers usually report to the Manager of Systems Analysis. Answer: FALSE Diff: 3 Page Ref: 16 38) A steering committee 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. Answer: TRUE Diff: 2 Page Ref: 16 39) An information center is a support facility for end users in an organization. Answer: TRUE Diff: 1 Page Ref: 17

  6. Page 6
    Read page 6 as text

    5 40) DBMS is the hands - on use of computers by end users. Answer: FALSE Diff: 2 Page Ref: 17 41) Information system specialists are used in the traditional approach to data processing for end users. Answer: TRUE Diff: 2 Page Ref: 17 42) EDI is a key component to quick - response technology system. Answer: TRUE Diff: 2 Page Ref: 19 43) The philosophy that one should do the right thing the first time is better known as TQM or TQP. Answer: TRUE Diff: 2 Page Ref: 18 44) RFID tags are used for tracking objects within a quick - response system. Answer: TRUE Diff: 1 Page Ref: 19 45) Only active RFID tags transmit signals containing digital information to receivers. Answer: FALSE Diff: 1 Page Ref: 20 46) Lean manufacturing focuses on eliminating waste from the entire value chain. Answer: FALSE Diff: 1 Page Ref: 20 47) A just - in - time manufacturing system is one form of lean manufacturing. Answer: TRUE Diff: 1 Page Ref: 20 48) Microsoft sponsors the Web Trust TM seal of approval to certain web sites that meet their security and integrity criteria. Answer: FALSE Diff: 2 Page Ref: 21 49) Electronic data interchange (EDI) is the direct computer - to - end - user exchange of business documents via a communications network. Answer: FALSE Diff: 1 Page Ref: 21 50) ANSI X.12 is a public EDI standard. Answer: TRUE Diff: 3 Page Ref: 22

  7. Page 7
    Read page 7 as text

    6 51) The SEC requires that all companies must file their financial reports electronically using XBRL. Answer: FALSE Diff: 2 Page Ref: 22 52) FedWire is a retail EFT system used for telephone wire transfers and payments. Answer: FALSE Diff: 2 Page Ref: 22 53) E - waste refers to dollars spent on unsuccessful implementations and technologies. Answer: FALSE Diff: 2 Page Ref: 26 54) Green IT states system design should include a plan for recycling and reusing system components. Answer: TRUE Diff: 1 Page Ref: 26 55) A systems development project consists of ________ general phases. Answer: three Diff: 1 Page Ref: 23 56) The purpose of the ________ approach is to assist in the orderly development of effective systems. Answer: systems Diff: 2 Page Ref: 23 57) Many companies prefer business process ________ because they find it more cost - effective than designing their own system from the ground up. Answer: blueprinting Diff: 2 Page Ref: 24 58) A philosophy of ________ design fosters a set of attitudes and an approach to systems development that consciously considers the organizational context. Answer: user - oriented Diff: 2 Page Ref: 25 59) Middle management uses ________ information in an organization. Answer: tactical Diff: 2 Page Ref: 2 60) The source for most information used by lower - level managers is largely ________. Answer: internal Diff: 2 Page Ref: 2

  8. Page 8
    Read page 8 as text

    7 61) There are ________ major categories of information systems within an organization. Answer: seven Diff: 2 Page Ref: 3 62) A(n) ________ information system is tailored to the strategic information needs of top - level management. Answer: executive Diff: 1 Page Ref: 5 63) A(n) ________ system manages all contact with customers. Answer: customer relation management (CRM) Diff: 1 Page Ref: 4 64) A(n) ________ system encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Answer: supply chain management (SCM) Diff: 1 Page Ref: 4 65) A group of loosely - connected companies that work together to maximize the value of their economic outputs is a(n) ________. Answer: extended enterprise Diff: 2 Page Ref: 4 66) The IT benefits for AISs are ________, ________, and ________. Answer: automation, information organization, and communication Diff: 2 Page Ref: 5 67) Application ________ involves the process of ensuring the suite of organization's applications work together in order to meet organizational goals and objectives. Answer: architecture Diff: 2 Page Ref: 6 68) ________ software assists management in managing inventories and scheduling production. Answer: MRP Diff: 1 Page Ref: 6 69) In ________ computers take control of the entire production process (CIM) but also can be reprogrammed so the same processes can produce entirely different products. Answer: flexible manufacturing systems (FMSs) Diff: 2 Page Ref: 6 70) 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. Answer: process Diff: 2 Page Ref: 6

  9. Page 9
    Read page 9 as text

    8 71) The ISO 9001 is a(n) ________ - management standard published by the International Standards Organization. Answer: quality Diff: 2 Page Ref: 6 72) ________ combines functional information systems in a single software package and a single database. Answer: enterprise resource planning (ERP) Diff: 1 Page Ref: 7 73) ERP II adds collaborative ________ to ERP. Answer: commerce Diff: 2 Page Ref: 8 74) 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. Answer: application Diff: 2 Page Ref: 8 75) The linking of applications in suite is facilitated through a ________. Answer: service oriented architecture (SOA) Diff: 2 Page Ref: 8 76) A business process is an interrelated set of tasks that involve data, ________ units, and a logical time sequence. Answer: organizational Diff: 3 Page Ref: 8 77) A simple way of viewing the company's activities in a manner suited to analyzing its competitive advantages is known as the ________ ________. Answer: value chain Diff: 1 Page Ref: 9 78) The controller is the executive in charge of ________ activities of the organization, while the treasurer supervises the ________ activities. Answer: accounting; financial Diff: 1 Page Ref: 14 79) 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. Answer: expenditure; production Diff: 1 Page Ref: 11

  10. Page 10
    Read page 10 as text

    9 80) A common violation of the ________ principle is the delegation of both accounting and financial responsibilities to the same individual or department. Answer: segregation Diff: 2 Page Ref: 13 81) The ________ is the head of the information systems function in an organization. Answer: CIO (chief information officer) Diff: 2 Page Ref: 15 82) A ________ committee is an advisory group who can influence the policies, budget, and planning of information services within an organization. Answer: steering Diff: 2 Page Ref: 16 83) Radio frequency identification tags (RFID) can be either ________, ________, or ________. Answer: active, passive, or semi - passive Diff: 3 Page Ref: 19 84) The main focus of ________ manufacturing is eliminating waste and improving production flow. Answer: lean Diff: 1 Page Ref: 20 85) The three major categories of waste under the original Toyota Production System (TPS) are ________, ________, and ________. Answer: muda, muri, and mura Diff: 3 Page Ref: 20 86) Green IT is concerned with reducing ________ through recycling and reusing electronic products rather than discarding these products. Answer: e - waste Diff: 1 Page Ref: 26 87) A just - in - time (JIT) environment is characterized by activities occurring in a ________ ________ environment. Answer: continuous flow Diff: 1 Page Ref: 20 88) A(n) ________ ________ ________ is a type of information system that supports nonroutine needs for information, while ________ systems support routine, nonrecurring information needs. Answer: decision support system; DP Diff: 2 Page Ref: 4 89) ________ is an automated clearing house system used for the clearing of Eurodollar payments between U.S. and non - U.S. financial institutions. Answer: CHIPS Diff: 3 Page Ref: 22

  11. Page 11
    Read page 11 as text

    10 90) The term that best describes an information system that is tailored to the strategic information needs of top - level management is a/an A) accounting information system. B) expert system. C) executive information system. D) EDP system. Answer: C Diff: 1 Page Ref: 5 91) Which of the following is not an example of a common functional MIS subsystem? A) Decision support system B) Marketing information system C) Manufacturing information system D) Human resources information system Answer: A Diff: 1 Page Ref: 4 92) Which of the following is not a common transaction processing cycle found in business organizations? A) Expenditure cycle B) Accounting cycle C) Production cycle D) Revenue cycle Answer: B Diff: 2 Page Ref: 11 93) 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 Answer: D Diff: 1 Page Ref: 11 94) The transaction processing cycle that is concerned with the events related to the transformation of resources into goods and services is A) production. B) revenue. C) financial reporting. D) expenditure. Answer: A Diff: 1 Page Ref: 11

  12. Page 12
    Read page 12 as text

    11 95) A system that manages all contacts with customers is a ________ system. A) customer value chain B) customer relation management C) customer supply chain management D) customer requirements planning Answer: B Diff: 1 Page Ref: 4 96) 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 Answer: A Diff: 2 Page Ref: 4 97) A(n) ________ system encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. A) CRM B) SCM C) DS D) ES Answer: B Diff: 2 Page Ref: 4 98) The fundamental benefits of information technology for AISs include the following except A) communication. B) information organization. C) systems development. D) automation. Answer: C Diff: 1 Page Ref: 5 99) ________ 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. A) Applications requirements planning B) Enterprise application structure C) Enterprise resource planning D) Applications architecture Answer: D Diff: 2 Page Ref: 6

  13. Page 13
    Read page 13 as text

    12 100) Material requirements planning software assists management in managing A) inventories. B) overhead. C) scheduling production. D) both inventories and scheduling production. Answer: D Diff: 2 Page Ref: 6 101) 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. Answer: C Diff: 2 Page Ref: 6 102) 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 Answer: B Diff: 2 Page Ref: 6 103) A complete systems solution involving one software package and one database is referred to as A) ERP. B) MRP. C) SCM. D) DSS. Answer: A Diff: 1 Page Ref: 7 104) 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. Answer: D Diff: 1 Page Ref: 7 - 8

  14. Page 14
    Read page 14 as text

    13 105) 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. Answer: C Diff: 2 Page Ref: 8 106) 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. Answer: D Diff: 2 Page Ref: 8 107) 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 Answer: A Diff: 3 Page Ref: 10 108) 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. Answer: C Diff: 1 Page Ref: 14 109) 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. Answer: B Diff: 2 Page Ref: 14

  15. Page 15
    Read page 15 as text

    14 110) 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. Answer: D Diff: 2 Page Ref: 23 111) The functional subsystem of a management information system that would likely obtain data on wage and payroll tax summaries, benefit information, and government regulations is called the A) human resources information system. B) manufacturing information system. C) financial information system. D) marketing information system. Answer: A Diff: 2 Page Ref: 4 112) 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. Answer: B Diff: 2 Page Ref: 2 113) 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. Answer: D Diff: 2 Page Ref: 3 114) Which item listed below is not considered a primary business process? A) Marketing B) Outbound sales logistics C) Technology development D) Service Answer: C Diff: 2 Page Ref: 9

  16. Page 16
    Read page 16 as text

    15 115) 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 Answer: B Diff: 1 Page Ref: 13 116) 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. Answer: A Diff: 2 Page Ref: 14 117) 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. Answer: C Diff: 2 Page Ref: 15 118) 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. Answer: D Diff: 1 Page Ref: 16 119) 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. Answer: C Diff: 3 Page Ref: 17

351 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Accounting study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.