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Test Bank For Core Concepts Of Accounting Information Systems, 12th Edition

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    TB 2. 1 Chapter 2 Information Technology and AISs True - False Questions 1. Data transcription in AISs is labor intensive and is prone to introduce errors into accounting data. 2. A printer is an example of an input device. 3. A computer mouse is an example of an input device. 4. Equipment that surrounds a computer and assists it with input and output tasks is called “peripheral equipment.” 5. An example of a source document is an employee payroll check. 6. An example of a source document is an employee time card. 7. “Data transcription” is the same as “data communications.” 8. Plastic cards with magnetic strips are an example of bar code input. 9. PDA is an acronym for “ personal digital access .” 10. Equipment that gathers accounting data at the point at which a sale is made are sometimes called POS devices. 11. The acronym OCR stands for “optical character recognition.” 12. A Blackberry device is an example of a PDA. 13. The processing power of a computer is often measured by the power of its CPU. 14. CPU is an acronym for “computerized peripheral unit.” 15. The processing power of the CPU in a mainframe computer is greater than in a minicomputer. 16. RAM is an acronym for “record access machine.” 17. RAM is an acronym that stands for “read and manipulate.” 18. RAM is usually measured in megahertz. 19. A gigabyte of computer storage is equal to one million bytes. 20. The two components of a microprocessor are the arithmetic - logic unit and the control unit.

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    TB 2. 2 21. Processor speeds are very important to AIS applications because faster processors automatically lead to greater throughput. 22. Laser printers and dot - matrix printers produce equal quality output. 23. In online, real - time systems, hard - copy output may be less desirable than soft - copy video screen display output. 24. For fast printing, most AIS systems use ink jet printers rather than laser printers. 25. The opposite of “primary storage” is “secondary storage . ” 26. Magnetic disks and USB flash disks are examples of secondary storage media. 27. CD - ROM disks and hard disks have about the same capacities. 28. Accounting data are typically stored on hard disks in groupings called “computer records.” 29. Each computer record on a hard disk is composed of sub - elements called “data fields.” 30. The term “ROM” (as in CD - ROM) means “read - only memory.” 31. The acronym “worm” means that some types of CD - ROMs can be rewritten repeatedly. 32. A “DVD” disk is read magnetically. 33. A DVD typically has a greater storage capacity than a CD - ROM medium. 34. Blu - ray disks can store more than CD - ROM disks . 35. The term “data communications” primarily refers to the transfer of data from primary memory to hard disks. 36. The mechanism for transferring data between components of the CPU is called a TRAIN (Transfer Random Accessed Instructions Now). 37. The term DSL stands for “digital subscriber line . ” 38. The term “enrollment” refers to the initial reading in a biometric authentication. 39. An example of a “communications channel” is microwave transmission. 40. LAN is an acronym for “local area network.” 41. The central computer of a LAN is called a “file server.”

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    TB 2. 3 42. An advantage of using a LAN is the ability to distribute information among the employees in the same building. 43. An advantage of using a LAN is the ability to share computer files and equipment. 44. A computer network spanning a small area such as a single building is a WAN. 45. A computer network spanning a regional or national area is called a WAN. 46. Client/Server computing enables businesses to distribute the computer processing of the system between the client computer and the server computer. 47. The “application - logic” component of a client/server system refers to where the processing logic of the system takes place. 48. Wireless data communications refers to the ability to transmit data over fiber optic cables instead of twisted pair wires. 49. Bluetooth is actually a wireless data communications standard that allows unlike communications devices to communicate with one another. 50. An operating system is a set of computer programs that helps a computer run itself. 51. Programs such as Windows Vista and Unix are examples of application programs. 52. Fortran, COBOL, and RPG are examples of computer operating systems. 53. NFC is an example of cloud computing. 54. A legacy system is an example of an older computer system, typically running on a mainframe computer. 55. The terms kilobyte, megabyte, terabyte, and gigabyte are correctly ordered by size or capacity. 56. The term RFID is an acronym for “registered for information or data.” 57. The term cloud computing refers to services that organizations can access on the Internet. 58. The ability to use a tax - preparation program via the Internet for a fee is an example of SaaS. 59. The acronym ERP stands for “ enterprise read - only program .” 60. A “mom - and - pop” convenience store would be an example of a business that would best utilize an ERP system.

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    TB 2. 4 Multiple - Choice Questions 61. All of the following are reasons why information technology is important to accountants except: a) IT supports AIS functions such as communications and record keeping b) Accountants must often evaluate AISs for themselves or for clients c) It is important to keep up; if your competitors buy new compu ters, you should too d) IT is likely to affect the way accountants work in the future 62. The AICPA regularly conducts a voluntary survey to identify a list of important IT trends or factors called: a) T he Top Ten Information Technologies b) T he Top Twenty Information Technologies c) IT Information Trends for Tomorrow d) T he AICPA IT Information List 63. The hardware of a computer system includes the computer itself and other devices that help the computer perform its tasks. These “other devices” are commonly also called: a) H elper equipment b) IT devices c) Peripheral equipment d) Secondary equipment e) Accessory equipment 64. All of the following are examples of peripheral equipment except: a) I nput equipment b) O utput equipment c) C ommunications equipment d) P rimary memory equipment e) S econdary storage equipment 65. Which of the se is one of the five interacting components of an accounting information system? a) Fuzzy logic b) Testing c) Certification d) Procedures e) Internet 66. Time cards, airline reserv ation screens, and bank deposit screens best describe which of the following ? a) Data transcription b) Point - of - sale devices c) Source documents d) Turnaround documents e) Data transaction documents

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    TB 2. 5 67. MICR is most closely associated with: a) The airline industry b) The data communications industry c) manufacturing d) the banking industry 68. The UPC code is an example of a(n): a) PDA b) MICR c) Bar code d) Biometric input 69. Which of the following best describes documents initially prepared by a company, then sent to individuals, and finally returned to the organization for data processing? a) Mark - sense media b) Source documents c) Turnaround documents d) MICR d ocuments 70. A POS device is usually attached to a: a) P rinter b) B ank check c) C ash register d) K eyboard e) C omputer mouse 71. POS devices, bar code readers, and OCR devices ar e examples of: a) Input devices b) Output d evices c) Processing d evices d) Transaction d evices 72. Minicomputers, mainframe computers, supercomputers, and laptops are examples of : a) Input devices b) Output devices c) Central processing units d) Display devices 73. Printers and video monitors are examples of : a) Output devices b) Input devices c) Processing devices d) Storage devic es

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    TB 2. 6 74. Which of these is a portable computing device that enables users to maintain personal data like postal addresses, appointment calendars, and check registers ? a) PDA b) Minicomputer c) Personal c omputer d) CPU 75. A secondary storage device that protects against disk failures and increases storage capacities by using stacks of hard disks best describes which of the following ? a) Magnetic d isk b) CD - ROM d isk c) Flash m emory d) WORM (Write - once, Read - many) Disks e) RAID (Redundant Array of Independent Disks) 76. A 5 - inch plastic disk used to store information up to 17 gigabytes describes which of the following ? a) CD - ROM b) Flash m emory c) Zip d isk d) DVD d isk 77. A bar code reader is most likely to be used by which type of system? a) POS system b) MICR system c) Printer/scanner system d) Fax machine system 78. Which type of company is most likely to use MICR? a) G rocery store b) B ank c) P hone company d) W eb site seller 79. The term “mark sense media” is most - closely related to which of the following? a) POS system b) OCR system c) MICR system d) ABA system 80. Which of the following is the most important reason to use POS systems, OCR systems, or MICR systems? a) T o use the latest information technology b) To avoid data transcription c) T o create an extra layer of IT infrastructure d) T o decrease dependency on foreign oil

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    TB 2. 7 81. The term “enrollment” is most closely associated with which of the following? a) ABA system b) Biometric system c) POS system d) Joystick e) PDA 82. Which of the following is correct? a) A laptop computer is an example of a minicomputer b) M inicomputers are more powerful than microcomputers c) M inicomputers are examples of PDAs d) A mainframe computer is an example of a supercomputer 83. An older computer system, typically using a mainframe , centralized data processing , and COBOL software, is often called a: a) S upercomputer system b) P rimary system c) L egacy system d) T raditional system 84. The reason why processor speeds are not important to AISs is because: a) M ost AIS processing is performed on weekends anyway b) T here are so many of them in the world today c) M icrocomputers are so inexpensive these days d) M ost computers are I/O bound 85. Which of these is another common name for a printed document? a) A foldable document b) A hard - copy document c) A soft - copy document d) A POS document 86. Which of these is not an example of a type of printer? a) D ot - matrix printer b) I nkjet printer c) L aser printer d) VGA printer 87. The speed of a printer is commonly measured in: a) ppm b) crt c) lcd d) P ixels 88. Within the context of the chapter on IT, which of these is not an acronym? a) ppm b) byte c) p ixel d) CD - ROM e) a ll of these are acronyms

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    TB 2. 8 89. When associated with CD - ROMs, the letters “rw” mean: a) R aw b) R ewind c) Re writeable d) R egular width 90. A USB drive that uses flash memory is an example of a(n): a) I nput device b) O utput device c) S econdary storage device d) W eb device 91. The term “EDRM” is mostly - closely associated with: a) R ecords management b) P oints - of - sale processing c) B anking d) E lectronic data recording and merchandising 92. Which of the following is not an example of a communication c hannel ? a) Twisted - Pair wires b) Coaxial Cables c) Optical Fibers d) Modem 93. Data communication speeds are typically measured in: a) ppm b) bps c) P ixels d) LANS e) WANs 94. A computer network spanning regional, national, or global areas best d escribes which of the following? a) LAN b) WAN c) ESPN d) DSL e) ISDN 95. Hardware or software that guards organizational information from external sources best describes which of the following ? a) Intranets b) Extranets c) Firewalls d) ISDN servers

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    TB 2. 9 96. Which of the following is a component of a client/server system ? a) User c omponent b) Satellite c omponent c) Data - management component d) Output c omponent 97. The user’s view of a client/server system best describes which componen t of a client/server system? a) Application - logic component b) Data - management component c) Presentation component d) Data - transmission component 98. Which of these measures how close a biometric readin g is to a prerecorded template? a ) PDA reading b) H amming distance c) M atch percentage d) L egacy amount 99. A system that uses inexpen sive or diskless microcomputers instead of more expensive models to save money on system ac quisition and maintenance costs describes which component of a client/server system? a) Data - management component b) Application - logic component c) Thin - client system d) Presentation component 100. The special cards that users can store in their cars to gain access to parking lots and breeze through collection booths on toll roads are examples of: a) RFID systems b) NFC systems c) POS systems d) MICR systems 101. This is an example of an RFID system with a very limited range (less than 8 inches): a) LAN system b) NFC system c) WAN system d) MICR system 102. Menus, icons, and other graphical elements are an example of which of the following ? a) Utility programs b) Personal productivity software c) Virtual s torage d) Graphical user interface (GUI)

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    TB 2. 10 103. Programs that help users perform such tasks as copying files, converting files from one format to another, compressing files, performing system diagnostics, and building disk directories best describes which of the following ? a) Antivirus software b) Utility programs c) Application software d) Operating system software 104. Application s oftware that enables businesses and government agencies to maintain, transmit and manipulate financial data on an organization - wide basis best describes : a) Communication software b) CAD software c) Enterprise resource planning (ERP) software d) Programming software 105. Software used for preparing payrolls, maintaining accounts receivable files, or controlling inventory best describes : a) Communication software b) Personal productivity software c) Project management software d) Accounting software 106. All of the following are p rogramming language s except: a) Java b) HTML c) C++ d) COBO L e) ERP 107. The translation process of converting source code into machine language (object code) is performed by which of the following ? a) Utility program b) System software c) ERP (Enterprise Resource Management) software d) Compiler 108. This is the process of recording the biometric readings of a legitimate user for the first time: a) A uthorization b) B iometric recording c) C ompiling d) D igital assisting e) E nrollment 10 9 . The term DSL is mostly closely associated with: a) PDAs b) B iometrics c) C ompiling computer programs d) D igital data transmission

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    TB 2. 11 110 . The term cloud computing refers to: a) F uzzy computing logic b) H idden computer data, which are obscured in some way c) P urchasing computing services on the Internet d) U ndetected errors in data processing 11 1 . Which of these is not an example of application software? a) O perating systems b) S preadsheet packages c ) A ccounting packages d ) D atabase management systems e) all of these are e xamples of application software

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    TB 2. 12 Matching Questions For the fo llowing terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once – there are two definitions that are not used. 11 2 . ______ Input - processing - output 113 . ______ POS system 114 . ______ data transcription 115 . ______ MICR coding 116 . ______ biometric verification 117 . ______ legacy system 118 . ______ gigabyte 119 . ______ terabyte 120 . ______ worm 121 . ______ RFID Definitions: A. A utomated data recording for input B. P otential bottleneck for processing accounting data C. A n older AIS, typically using a mainframe computer D. 1 billion bytes E. T he data processing cycle for processing most accounting transactions F. A type of CD encoding G. 1 trillion bytes H. T hreshold hamming distance I. D ata communications using radio waves J. U sed by banks for automated data input K. 1 thousand bytes L. 1 million bytes Short Answer Questions 12 2 . What components make up an AIS system? 123 . Why are microprocessor speeds rarely important to an AIS? 124 . What is the difference between mainframe/host computing and microcomputer client/server computing?

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    TB 3. 1 Chapter 3 Data Modeling True - False Questions 1. The letter “M” in the acronym DBMS stands for “maintenance.” 2. The letter “M” in the acronym DBMS stands for “management.” 3 . An accounting information system database is a collection of facts and figures that serves the accounting information needs of one or more organizational subsystems. 4 . Given the flexibility and usefulness of computerized accounting databases, a company will always find it cost effective to use them in processing, storing, and retrieving accounting data. 5 . The correct order of elements, from smallest to largest, in the data hierarchy is data field, record, file (table), database. 6 . The correct order of elements, from smallest to largest, in the data hierarchy is data field, file (table), record, database. 7 . The correct order of elements, from smallest to largest, in the data hierarchy is database, data field, record, file (table) . 8 . The basic unit of information in an accounting information system database is the debit. 9 . The largest unit of information in an accounting information database is a data field. 10 . The basic unit of information in an accounting information database is a table. 11 . The smallest unit of information in the data hierarchy is a data field. 12 . The largest unit of information in the data hierarchy is a record. 13 . A computer record is used to store all the information about one transaction, but several such records must be used to store the information about one employee, one inventory part, and so forth, on a master file. 14 . The data field that distinguishes one record from another in a database table is called the primary key . 15 . Record keys on computer files are unique only to the extent that they classify computer records by some general category. 16 . A last name such as “Smith” is an example of a useful primary record key. 17 . A Social Security number is a good example of a useful primary record key.

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    TB 3. 2 18 . For a file of employee workers, it would make more sense to use their last name as a primary key rather than their Social S ecurity number because this would better preserve their privacy. 19 . A foreign key is a data field in the records of one file that references a primary key in the records of another file. 20 . Three database concerns when creating large databases are “data integrity,” “processing accuracy,” and “data security.” 21 . A data dictionary is a computer file describing the data items of an accounting database. 22 . The term “transaction control” refers to the requirement that a database system either process a transaction entirely, or not at all. 23 . The “concurrency” con trol in database operations refers to the need to convert foreign currency amounts into dollar terms before reporting them to subschema viewers. 24 . The idea behind concurrency control is to deny several users access to the same database record at the same time. 25 . Database security is no longer important because DBMSs are already so safe. 26 . The idea behind view controls is to allow users access to only that information that they need to see. 27 . An REA accounting system takes an “enterprise - wide view” of accounting data. 28 . The initials R - E - A in the REA accounting framework refer to “resources, events, and accounting.” 29 . “Protecting privacy” is one of the important goal s in data modeling. 30 . “ Avoiding data redundancy” is one of the important goal s in data modeling. 31 . The E - R model refers to the “entity - relationship” model. 32 . An example of a database cardinality is “one - to - many.” 33 . An example of a database cardinality is “one - to - few.” 34 . An example of a database cardinality is “one - to - one.” 35 . An example of a “one - to - one” relationship is “employee to assigned parking stall.” 36 . An example of a “one - to - many” relationship is “students to classes.” 37 . A relational data structure should never be used for accounting systems. 38 . A disadvantage of relational databases is that they cannot accommodate a variety of file inquiries.

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    TB 3. 3 39 . An advantage of relational databases is that additional indexes can be added at later points of time as new data processing requirements dictate. 40. Normalizing accounting data refers primarily to eliminating errors and outliers, thus creating “normal data.” 41. An important reason for normalizing data is to eliminate data redundancy. 42. There are exactly three normal forms. 43. Databases cannot store more than one value in the same data field of the same record. 44. A database is in first normal form if the data it contains is free of errors and outliers. 45. A database is in second normal form if all of its records are in first normal form, and a second, duplicate record exists for each of them. 46. A database is in third normal form if all of its records are in second normal form, and there are no transitive dependencies. 47. An example of a transitive relationship in a parking - tickets application is the one between “ticket code” and “fine amount.” 48. An example of a transitive relationship in a medical application is the one between “medical procedure code” and “cost of treatment.” 49. An example of a transitive relationship in a medical application is the one between “doctor number” and “patient name.” Multiple - Choice Questions 50. All of these are reasons why databases are important to AISs except : a) AIS databases store valuable information b) Many AISs are large and therefore potentially unwieldy c) The databases of some organizations are very complex d) The hard disk space used to store AIS databases is comparatively expensive e) all of these are reasons why databases are important to AISs 5 1 . The basic unit of information on a computer file of accounting data is a(n): a) Inventory part number b) Data field c) Computer record d) Bit

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