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Chapter 1 Test Bank Questions & Answers

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chapter 1 test bank questions answers
15 accounting information systems a are always
16 which of the following is not an attribute of

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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. - answer C

16) Which of the following is not an attribute of useful information?

A) Bias.
B) Feedback value.
C) Predictive value.
D) Verifiability. - answer 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. - answer 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. - answer 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). - answer 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). - answer 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. - answer A

22) A supply chain system does not include information about:

A) Current customers.
B) Prospective customers.
C) Availability of inventory.
D) Current suppliers. - answer 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. - answer 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. - answer 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. - answer A

D - answer 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.

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