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Chapter 03 Data Modeling True / False Questions 1. The Object Management Group maintains the standard for Unified Modeling Language (UML) Class diagrams. True False 2. Unified Modeling Language (UML) Class diagrams describe the logical structure of a database system. Tru...

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Chapter 01

Accounting Information Systems and Firm Value


True / False Questions


1. Accounting and Finance is a primary activity in the value chain.

True False

2. Accounting Information Systems at this date 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 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 to be useful to
the user.

True False

7. Data is defined as being information organized in a meaningful way to be useful to
the user.

True False

8. A systems analyst analyzes a business problem that might be addressed by an
information system and recommends software or systems to address that problem.

True False

9. A value chain is defined as the flow of materials, information, payments, and services
from customer to supplier.

True False

,10. Relevant information is that information that is free from bias and error.

True False

11. The characteristics of relevant information include predictive value, feedback value
and timeliness.

True False

12. The characteristics of reliable information are that the information is verifiable,
without bias and timely.

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

16. An accounting information system (AIS) is defined as being an information system
that records, processes and reports on transactions to provide financial 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 and other partially completed materials, and distributing those materials to
manufacturing when and where they are needed.

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. An enterprise system is primarily used to manage and nurture a firm's interactions
with its current and potential clients.

True False

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, 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




Multiple Choice Questions


26. Accounting information systems are:


A. Always
computerized.
B. Report only accounting
information.
C. Records, processes and
reports
D. Are for computer
games

, 27. Which of the following are not a characteristic of useful information?


A. Easy to
understand
B. Feedback
value.
C. Timel
y
D. Representational
Faithfulness

28. 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.

29. 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

30. Which designation would most appropriate for those professionals possessing an 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)

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