Chapter 1 Test Bank Questions & Answers

Chapter 1 Test Bank Questions & Answers 15) Accounting information systems: A) Are always computerized. B) Report only accounting information. C) Include records, processes and reports. D) Are for computer games. C 16) Which of the following is not an attribute of useful information? A) Bias. B) Feedback value. C) Predictive value. D) Verifiability. A 17) Which of the following are considered to be mandatory information required by a regulatory body? A) Financial reports for the Securities and Exchange Commission. B) The amount of taxes saved by a merger. C) The total dollar value of fireworks that are sold on July 4. D) The cost to build an all-new Starbucks restaurant in Abu Dhabi. A 18) The correct order of effects in the value chain are: A) Inbound Logistics → Operations → Service. B) Inbound Logistics → Outbound Logistics → Marketing & Sales. C) Inbound Logistics → Operations → Outbound Logistics. D) Inbound Logistics → Operations → Shipping. C 19) Which designation would be most appropriate for those professionals possessing IT audit, control and security skills? A) Certified Internal Auditor (CIA). B) Certified Public Accountant (CPA). C) Certified Information Technology Professional (CITP). D) Certified Information Systems Auditors (CISA). D 20) Which designation is for CPAs with a broad range of technology knowledge and experience? A) Certified Internal Auditor (CIA). B) Certified Public Accountant (CPA). C) Certified Information Technology Professional (CITP). D) Certified Information Systems Auditors (CISA). C 21) A supply chain: A) Refers to the supplies needed to build products. B) Refers to the flow of materials, information, payments and services. C) Refers to how costs are tracking in an AIS. D) Does not apply to a service firm like an accounting firm. A 22) A supply chain system does not include information about: A) Current customers. B) Prospective customers. C) Availability of inventory. D) Current suppliers. B 23) The income statement line item most likely affected by an AIS investment in enterprise systems would be: A) Revenues. B) Cost of Goods Sold. C) Selling, General and Administrative Expenses. D) Unearned Revenue. C 24) The income statement line item most likely affected by an AIS investment in supply chain that would interface with suppliers would be: A) Revenues. B) Cost of Goods Sold. C) Selling, General and Administrative Expenses. D) Research and Development Expenses. B 25) The IT strategic roles of AIS investments are classified as: A) Automate, Informate, Transform. B) Value creation, Value Destruction, Value Neutral. C) Digitize, Report, Transform. D) Automate, Digitize, Transport. A D 26) According to a recent study, the transform IT strategic role is defined as systems that: A) Replace human labor in automating business processes. B) Provide information about business activities to all employees. C) Provide information about business activities to senior management. D) Fundamentally redefine business processes and relationships. C 27) According to a recent study, the informate-up IT strategic role is defined as systems that: A) Replace human labor in automating business processes. B) Provide information about business activities to all employees. C) Provide information about business activities to senior management. D) Fundamentally redefine business processes and relationships. A 28) The income statement account most likely affected by an AIS investment in customer relationship management (CRM) would be: A) Revenues. B) Cost of Goods Sold. C) Selling, General and Administrative Expenses. D) Unearned Revenue. A 29) Many fast food restaurants now have kiosks where customers can order without speaking to an employee. This is an example of the _____ strategic role. A) Automate B) Informate- up C) Transform D) Informate- down C 30) When Uber (a ride sharing application) developed their unique platform to match drivers with riders, this was an example of _____ with IT Investments which fundamentally changed how people use car services. A) Automating B) Informating - up C) Transforming D) Informating - down C 31) The Information Value Chain is defined as: A) The flow of materials, information, payments, and services. B) The use of computer technology to provide information about business activities to employees across the firm. C) The overall transformation of data from a business need to the ultimate decision. D) A centralized database that collects data from throughout the firm. A 32) Customer Relationship Management is best defined as: A) A system used to manage and nurture a firm's interactions with its current and potential customers. B) A system used to track a customer's past purchases. C) A system used to connect a firm's suppliers with a firm's customers. D) A system used to advertise current items on sale to customers. C 33) The role of accountants in accounting information systems include all except: A) User. B) Manager. C) Coder. D) Evaluator. D 34) A simple information system includes all but the following elements except: A) Processing. B) Storage. C) Input. D) Reporting. C 35) Branch profitability is an example of: A) Information overload. B) Mandatory information. C) Discretionary information. D) Enterprise System. B 37) Which of the following systems would a company be most likely to employ for the primary purpose of generating additional sales revenue? A) MDBMS. B) CRM. C) SCM. D) OCR. C 38) The primary transformation of data into information takes place in which of the following activities? A) Input. B) Storage. C) Processing. D) Output. C 39) Discretionary information is most likely to be used in which of the following activities? A) Preparing required Environmental Protection Agency emissions reports. B) Filing a 10-K with the SEC. C) Management decision-making. D) Payroll tax reporting. D 40) Which of the following is not a primary activity in the Value Chain? A) Outbound Logistics. B) Marketing. C) Inbound Logistics. D) Information Technology. A 41) One of the most important ways that ERPs benefit organizations and their business processes is: A) Current information is made available to all users involved in the activities and decisions associated with a company's business processes. B) Information is stored in many specialized, distributed databases that each serve separate business processes. C) Reducing the amount of time to complete business processes by eliminating all controls associated with the processes. D) Preventing external business partners from accessing the organization's data.