Test Bank Accounting Information Systems, 4th Edition by Vernon
Richardson - All Chapters ( 1-17 ) Newest Version 2024
Chapter 1: Accounting Information Systems and Firm Value
1) Accounting and Finance is a primary activity in the value chain.
⊚ true
⊚ false
2) As of today, Accounting Information Systems are all computerized.
⊚ true
⊚ false
3) Business value includes all those items, events and interactions that determine the financial
health and well-being of the firm.
⊚ true
⊚ false
4) The Certified Information Technology Professional (CITP) is a professional designation for
those with a broad range of technology knowledge and does not require a CPA.
⊚ true
⊚ false
5) The Certified Information Systems Auditor (CISA) is a professional designation generally
sought by those performing IT audits.
⊚ true
⊚ false
6) Information is defined as being data organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
7) Data is defined as being information organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
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8) An AIS may create value by giving access to management information relevant to the decision
makers.
⊚ true
⊚ false
9) An AIS may create value by providing an internal control structure needed to make sure the
information is secure, reliable, and free from error.
⊚ true
⊚ false
10) Relevant information’s most defining characteristic is that it is free from bias and error.
⊚ true
⊚ false
11) The characteristics of relevant information include predictive value, feedback value and
timeliness.
⊚ true
⊚ false
12) A faithful representation of the underlying event should reflect the bias of the system analyst.
⊚ true
⊚ false
13) Information overload is defined as the difficulty a person faces in understanding a problem
and making a decision as a consequence of too much information.
⊚ true
⊚ false
14) The main financial benefit of Customer Relationship Management practices reduces the cost
of goods sold.
⊚ true
⊚ false
15) An efficient Enterprise System can significantly lower the cost of support processes included
in sales, general, and administrative expenses.
⊚ true
⊚ false
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16) An accounting information system (AIS) is defined as being an information system that
records, processes and reports on transactions to provide financial and nonfinancial information
for decision making and control.
⊚ true
⊚ false
17) An enterprise system is a centralized database that collects data from throughout the firm.
This includes data from orders, customers, sales, inventory and employees.
⊚ true
⊚ false
18) Outbound logistics are the activities associated with receiving and storing raw materials as
well as activities that transform these inputs into finished goods.
⊚ true
⊚ false
19) Service Activities as defined in the value chain are those activities that provide the support of
customers after the products and services are sold to them (e.g. warranty repairs, parts,
instruction manuals, etc.).
⊚ true
⊚ false
20) A well-designed and well-functioning AIS can be expected to create value by providing
relevant information helpful to management to increase revenues and reduce expenses.
⊚ true
⊚ false
21) Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue Service
is an example of discretionary information.
⊚ true
⊚ false
22) Enterprise Systems do not exist to facilitate decision making.
⊚ true
⊚ false
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23) The Sarbanes-Oxley Act of 2002 is a federal law in the United States that set new and
enhanced standards for all U.S. public companies, their management and public accounting
firms.
⊚ true
⊚ false
24) CRM software often includes the use of database marketing tools to learn more about the
customers and to develop strong firm-to-customer relationships.
⊚ true
⊚ false
25) The Certified Information Technology Professional is the position created by the AICPA to
recognize CPAs who have the ability to provide skilled professional services on Information
Technology.
⊚ true
⊚ false
26) Accounting Information Systems which are computerized do not need to maintain internal
controls.
⊚ true
⊚ false
27) Accounting information systems:
A) Are always computerized.
B) Report only accounting information.
C) Include records, processes and reports.
D) Are for computer games.
28) Which of the following is not an attribute of useful information?
A) Bias.
B) Feedback value.
C) Predictive value.
D) Verifiability.
29) 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.
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