Ias quiz
- 1. Accounting Information System True/False Indicate whether the statement is true or false. ____ 1. An AIS designer, who is very competent with information technology skills, will be successful in designing an information system regardless of his/her understanding of the organization that he/she is designing for. ____ 2. Collecting and monitoring data about a business activity may change the manner in which employees perform that activity. ____ 3. When making a design choice regarding the amount of information to provide to a decision maker, providing more information is always better ____ 4. An accounting information system should capture the financial measures of a transaction, without regard to the operational data of that transaction. ____ 5. Special forms, called source documents, provide improved control over data collection. ____ 6. A control account contains all of the detailed subaccount data for a general ledger account. ____ 7. Organizations should take advantage of every opportunity to invest in information technology in order to improve their AIS ____ 8. Data and information are among an organization's most valuable assets. ____ 9. Within an organization, it is acceptable to allow one person to both authorize sales transactions and record purchase transactions ____ 10. Lower bandwidth allows data to be transmitted faster Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 11. A widely used method that uses the same key to encrypt and decrypt a data transmission is referred to as: a . PKI. c . DES. b . none of the above d . digital signature. ____ 12. Information can improve decision making in what way? a . All of the above. c . It identifies situations requiring management action. b . It provides a basis for choosing among alternative actions d . Provides valuable feedback that can be used to improve future decisions. ____ 13. In order for an accounting information system to meet the needs of systems users, one must take into account the types of decisions that are made. Decisions vary from repetitive and routine to nonrecurring and non-routine. How would you classify a decision where no framework or model exists for the decision? a . Semi-structured c . Structured b . Unstructured d . All of the above
- 2. ____ 14. Which of the following best describes the sequence of the supply chain? a . Raw materials supplier, manufacturer, distributor, retailer, and consumer c . Raw materials supplier, manufacturer, retailer, distributor, and consumer b . Manufacturer, distributor, raw materials supplier, retailer, and consumer d . Retailer, distributor, manufacturer, raw materials supplier, and consumer ____ 15. Which of the following is not one of the three important functions that an accounting information system performs? a . It assures that management's decisions optimize the profitability of the company. c . It provides adequate controls to safeguard the organization's assets, including its data. These controls ensure that the data is available when needed and that it is accurate and reliable. b . It processes data into information that is useful for making decisions that enable management to plan, execute, and control activities. d . It collects and stores data about activities and transactions so that the organization can review what has happened in the business. ____ 16. Which of the following must not be performed by the person responsible for custody of inventory? a . Paying cash to vendors c . Authorization to move inventory to shipping b . Receiving cash from customers d . Authorization to write off bad debt ____ 17. Which of the following is NOT a "primary activity" that directly provides value to the customer? a . Operations c . Inbound logistics b . Human resources d . Outbound logistics ____ 18. Which of the following is not one of the primary activities in the value chain of an organization? a . Purchasing c . Operations b . Outbound Logistics d . Marketing and Sales ____ 19. The use of EDI by small businesses is increasing because of a . the Internet and HTML. c . cheaper computing power and graphical user interface. b . third-party proprietary networks d . the Internet and XML. ____ 20. Which of the following does not influence the design of an Accounting Information System (AIS)? a . Information Technology c . Legal environment b . Organizational culture d . Business strategy ____ 21. Which of the following is NOT one of the five major business processes or transaction cycles?
- 3. a . Financing c . Production b . Expenditure d . All of the above are major cycles. ____ 22. The third function of the AIS is to provide adequate internal controls to accomplish three basic objectives. Identify the improper objective. a . Ensure that business activities are performed efficiently and in accordance with management's objectives while also conforming to any applicable regulatory policies c . Safeguard organizational assets, including its data b . Ensure that the information that is produced by the system is reliable d . Ensure that the information that is produced by the system is relevant ____ 23. Specific types of duties must be kept separate in order to achieve good internal control. Which of the following must not be performed by the individual responsible for receiving cash from the customers? a . Authorizing the receipt of goods c . Managing the purchases journal b . Writing off uncollectable customer accounts d . Updating shipping records for goods sold ____ 24. Which of the following accurately depicts the components of an accounting information system? a . People, procedures, and information technology c . People, forms, and reports b . People, procedures, and paper d . Procedures, paper, and information technology ____ 25. Communication software manages data flow across a network by performing the following functions: a . controlling the transfer of data, files and messages. c . controlling the transfer of data, files and messages. b . all of the above. d . controlling access to network devices. ____ 26. Identify the two basic strategies noted in the text a . High quantity producer strategy and loss leader strategy c . Low cost producer strategy and product/service differentiation strategy b . Product/service differentiation strategy and loss leader strategy d . Low cost producer strategy and high quantity producer strategy ____ 27. Identify the three strategic positions which an organization might adopt a . Variety-based, access-based, and needs- based c . Customer-based, product-based, location- based b . Customer-based, product-based, access- based d . Access-based, needs-based, and product based ____ 28. Listed below are the four of the characteristics that make information useful and meaningful. Pick the characteristic that relates to information's ability to reduce uncertainty
- 4. a . Verifiable c . Relevant b . Understandable d . Complete ____ 29. AIS adds value to an organization by: a . Improving efficiency c . Sharing knowledge b . Improving the internal control structure. d . all of the above ____ 30. Which of the following is NOT one of the support activities in the value chain of an organization? a . Service c . Purchasing b . Human Resources d . Firm Infrastructure ____ 31. Management by exception: a . requires a periodic comparison of each unit's activities with past performance c . is a technique whereby exceptional performance is guaranteed b . None of the above d . is a technique of hands-off management, unless current performance does not meet the expectations established in the budget ____ 32. A digital certificate: a . is a reliable third party that authenticates the message sender. c . is an electronic message uniquely identifying the message sender. b . is a summary of a plain text document. d . is used to identify the owner of a private key and related public key. ____ 33. Which of the following is not one of the three important functions that an accounting information system performs? a . It processes data into information that is useful for making decisions that enable management to plan, execute, and control activities. c . It collects and stores data about activities and transactions so that the organization can review what has happened in the business. b . It assures that management's decisions optimize the profitability of the company. d . It provides adequate controls to safeguard the organization's assets, including its data. These controls ensure that the data is available when needed and that it is accurate and reliable. ____ 34. What is data? a . The same thing as information c . A character in the Star Trek series b . All of the facts that are collected, stored, and processed by an information system d . All of the debit and credit information about each transaction
- 5. ____ 35. The posting process: a . is used to place post-it notes on all items that need attention c . occurs as needed b . is used to meter the outgoing mail d . summarizes the amounts recorded in the journals to the ledgers ____ 36. While more is often considered better, we reach a point at which our human minds cannot effectively absorb and process more information. This condition is called a . Neural Collapse c . None of the above b . Decision Aid Deficient d . Information Overload ____ 37. While general ledgers are used to summarize every asset, liability, equity, revenue, and expense account, subsidiary ledgers are used to summarize subaccounts for particular general ledger accounts. Identify the general ledger account that typically does not have a subsidiary ledger. a . Accounts Receivable c . Fixed Assets b . Purchases d . Inventory ____ 38. A chart of accounts: a . provides an audit trail c . is a list of all accounts in the organization with each account identified by a three- or four-digit code b . is a list of all permanent accounts in the organization. Temporary accounts, such as revenue and expense accounts, are not included in the chart of accounts. d . None of the above ____ 39. An accounting information system adds value to an organization in many ways. Which of the following is not a way in which the AIS adds value? a . All of the above are ways in which an AIS adds value to the organization. c . Monitoring outputs for defects to increase product quality b . Providing more accurate information d . Monitoring outputs for defects to reduce the amount of waste ____ 40. An intranet a . provides everyone access to the World Wide Web. c . allows two or more companies to share internal information via the World Wide Web b . none of the above d . provides a company an internal means of communicating via the World Wide Web.
- 6. ____ 35. The posting process: a . is used to place post-it notes on all items that need attention c . occurs as needed b . is used to meter the outgoing mail d . summarizes the amounts recorded in the journals to the ledgers ____ 36. While more is often considered better, we reach a point at which our human minds cannot effectively absorb and process more information. This condition is called a . Neural Collapse c . None of the above b . Decision Aid Deficient d . Information Overload ____ 37. While general ledgers are used to summarize every asset, liability, equity, revenue, and expense account, subsidiary ledgers are used to summarize subaccounts for particular general ledger accounts. Identify the general ledger account that typically does not have a subsidiary ledger. a . Accounts Receivable c . Fixed Assets b . Purchases d . Inventory ____ 38. A chart of accounts: a . provides an audit trail c . is a list of all accounts in the organization with each account identified by a three- or four-digit code b . is a list of all permanent accounts in the organization. Temporary accounts, such as revenue and expense accounts, are not included in the chart of accounts. d . None of the above ____ 39. An accounting information system adds value to an organization in many ways. Which of the following is not a way in which the AIS adds value? a . All of the above are ways in which an AIS adds value to the organization. c . Monitoring outputs for defects to increase product quality b . Providing more accurate information d . Monitoring outputs for defects to reduce the amount of waste ____ 40. An intranet a . provides everyone access to the World Wide Web. c . allows two or more companies to share internal information via the World Wide Web b . none of the above d . provides a company an internal means of communicating via the World Wide Web.