AIS exam 1 Questions and Answers correct

AIS exam 1 Questions and Answers correct 1.Accounting information systems always computerized. t only financially related information. information systems that record, process, and report on transactions to provide financial and nonfinancial information for decision making and control. re a CITP designation to understand. are information systems that record, process, and report on transactions to provide financial and nonfinancial information for decision making and control. information systems that record, process, and report on transactions to provide financial and nonfinancial information for decision making and control. 2.Which of the following is a characteristic of relevance? LO 1-1 a.Materiality b.Timeliness c.Verifiable d.Cost to generate a.Materiality - it would change a decision 3.Which of the following is considered to be mandatory information required by a regulatory body? LO 1-2 a. submission to the Securities and Exchange Commission b. The cost to produce a Samsung Galaxy c. The number of organic bananas that are sold at Whole Foods on July 28 d. The cost to build an all-new Starbucks restaurant in Shenzhen, China a. submission to the Securities and Exchange Commission 4. The correct order of events in the value chain is LO 1-4 a. Inbound logistics -> Operations -> Service. b. Inbound logistics -> Outbound logistics -> Marketing and sales. c. Inbound logistics -> Operations -> Outbound logistics. d. Inbound logistics -> Operations -> Marketing and Sales. c. Inbound logistics -> Operations -> Outbound logistics. then marketing and sales ->service 5. Which system contributes information on direct labor to a cost accounting system? LO 1-8 a. Supply chain management system (SCMS) b. Financial reporting system (FRS) c. Customer Relational Management System (CRM) d. Human resource management system (HRMS) d. Human resource management system (HRMS) 6. A supply chain LO 1-7 a. supplies jewelry chains. b. refers to the flow of materials, information, payments, and services. c. is similar in function and purpose to the value chain. d. does not apply to a service firm like an accounting firm. b. refers to the flow of materials, information, payments, and services. 7. Customer relationship management software does not include information about LO 1-7 a. current customers. b. prospective customers. c. former customers. d. current employees. d. current employees. 8. An information system that measures and records accounting transactions and reports them in the financial statements is called a LO 1-6 1 a. financial reporting system (FRS). b. enterprise system (ES). c. manufacturing system (MS). d. cost accounting system. a. financial reporting system (FRS). 9. What is the name of the position for a person responsible for determining information needs of a business and designing a system to meet those needs? LO 1-3 a. Chief information officer b. Controller c. IT auditor d. Systems analyst d. Systems analyst 10. The balance sheet account most likely affected by an AIS investment in supply chain management software would be LO 1-9 a. inventories. b. fixed assets. c. cash and cash equivalents. d. unearned revenue. a. inventories. 11. The software/system that helps make sure the retail firm doesn't have a stockout is LO 1-7 a. supply chain management software. b. customer relationship management software. c. enterprise systems. d. human resource systems. a. supply chain management software. 12. Data analytics performed to identify the most profitable customers would be most likely to affect which income statement account? LO 1-9 a. Selling, general, and administrative expenses (SG&A) b. Interest expense c. Revenues d. Cost of goods sold c. Revenues 13. Customer relationship management systems would generally be considered to be an LO 1-7 , LO 1-9 a. internal business process. b. external business process. c. interior business process. d. exterior business process. b. external business process. 14. An auditor testing internal controls would generally be considered to fill which role with respect to accounting information systems? LO 1-3 a. User b. Manager c. Designer d. Evaluator d. Evaluator 15. Which of these represents the proper transformation from data to decision according to the information value chain? LO 1-2 a. Data -> Information ->Knowledge -> Decision b. Data -> Knowledge -> Information -> Decision c. Data -> Business event -> Information -> Decision d. Data -> Analysis -> Information -> Decision a. Data -> Information ->Knowledge -> Decision 1. Big Data is often described by the 4 Vs, or LO 2-2 a. Volume, velocity, veracity, and variability. b. Volume, velocity, veracity, and variety. c. Volume, volatility, veracity, and variability. d. Volume, volatility, veracity, and variety. b. Volume, velocity, veracity, and variety. 2. According to estimates considered in the chapter, up to what percentage of a data analyst's time is spent cleaning (or scrubbing) the data to be ready for analysis? LO 2-5 a. 40 percent b. 0 percent c. 20 percent d. 90 percent d. 90 percent 3. The acronym ETL, in the process of readying data for use in data analysis, refers to what three words? LO 2-5 a. Extrapolate, transform, and learn b. Extrapolate, transpose, and load c. Extract, transform, and load d. Extract, transform, and learn c. Extract, transform, and load 4. Which term is used to describe the science of examining raw data, removing excess noise from the dataset, and organizing the data with the purpose of drawing conclusions for decision making? LO 2-1 a. Big Data b. Data Analytics c. Audit Analytics d. Extract, transform, and load b. Data Analytics 5. ADS is a standard format for data files and fields typically needed to support an external audit in a given financial business process area that was developed by the AICPA. The acronym ADS stands for what three words? LO 2-5 a. Accounting Data Specification b. Accounting Data Standards c. Audit Data Standards d. Auditor Data Standards c. Audit Data Standards 6. Which type of question does prescriptive analytics address? LO 2-4 a. What happened? b. What should we do based on what we expect will happen? c. Why did it happen? d. Will it happen in the future? b. What should we do based on what we expect will happen? 7. Which type of question does predictive analytics address? LO 2-4 a. What happened? b. What should we do based on what we expect will happen? c. Why did it happen? d. Will it happen in the future? d. Will it happen in the future? 8. What type of analytics addresses questions of "Why did it happen"? LO 2-4 a. Descriptive analytics b. Diagnostic analytics c. Predictive analytics d. Prescriptive analytics b. Diagnostic analytics 9. What type of analytics would address the question of whether a customer will ultimately pay if credit is granted? LO 2-6 a. Descriptive analytics b. Diagnostic analytics c. Predictive analytics d. Prescriptive analytics c. Predictive analytics 10. If we wanted to know what score we needed to get on the final in this class based on our expected performance before the final, we would call that _____________ analytics. LO 2-6 a. Descriptive b. Diagnostic c. Predictive d. Prescriptive d. Prescriptive 1. Which of the following best describes a data visualization? LO 3 -1 a. Part of the information value chain b. A tool for preparing the data c. A tool for recording data transactions d. A graphical representation that presents information to decision makers e. None of the above d. A graphical representation that presents information to decision makers 2. Which of the following charts is used to show trend over time? LO 3 -5 a. Symbol maps b. Scatter plots c. Line charts d. Pie charts e. Treemaps c. Line charts 3. Which of the following charts is generally considered the best way to show proportions? LO 3-4 a. Bar charts b. Scatter plots c. Line charts d. Pie charts e. Treemaps d. Pie charts 4. Which of the following software is best at data analysis, as compared to visualizations? LO 3-3 a. Power BI b. Excel c. Tableau d. Powerpoint b. Excel 5. The use of visualizations to help perform the analysis is called LO 3 -3 a. explanatory visualizations. b. diagnostic visualizations. c. exploratory visualizations. d. interpretive visualizations. c. exploratory visualizations. 6. The use of visualizations to communicate the results to decision makers is called LO 3-3 a. explanatory visualizations. b. prescriptive visualizations. c. exploratory visualizations. d. diagnostic visualizations. a. explanatory visualizations. 7. Which of the following statements is true? LO 3-4 a. Scatterplots show values of two variables each plotted on its own axis to exhibit potential trends. b. Scatterplots show values of two variables each plotted on its own axis to exhibit potential correlation. c. Graphs show values of two variables each plotted on its own axis to exhibit potential trends. d. Graphs show values of two variables each plotted on its own axis to exhibit potential correlation. e. None of the above b. Scatterplots show values of two variables each plotted on its own axis to exhibit potential correlation 8. Assume that Netflix wants to show the relative frequency of its sales by state. Which of the following would be most appropriate? LO 3-4 a. Word cloud b. Filled geographic map c. Bar chart d. Pie chart e. None of the above b. Filled geographic map 9. Which of the following software tools is more associated with getting the data ready for analysis? a. Tableau Desktop b. Tableau Prep c. Python d. SAS e. None of the above b. Tableau Prep 10. If the CEO prefers less detail in their written report, the analyst might suggest LO 3 -6 a. an executive summary. b. a complete set of visualizations. c. a full report. d. a sampling of the most important visualizations e. None of the above a. an executive summary. 2. Which of the following is not an example of business process documentation? LO 4-2 a. Business process models b. Training manuals c. Organization charts d. Internal audit e. All of these are examples of business process documentation. e. All of these are examples of business process documentation. 1. Which of the following is not a role of the accounting function in business? LO 4-1 a. Financial close b. Regulatory compliance c. Project management d. Using IT to make finance and accounting processes more efficient e. All of these are roles of the accounting function e. All of these are roles of the accounting function