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Test Bank for Accounting Information Systems, 4th Edition by Vernon Richardson

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Accounting Information Systems

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Accounting Information Systems

Test Bank for Accounting Information Systems 4e 4th Edition by Vernon Richardson, Chengyee Chang and Rod Smith. Chapter 1: Accounting Information Systems and Firm Value Chapter 2: Data Analytics: Addressing Accounting Questions with Data Chapter 3: Data Analytics: Data Visualizations Chapter 4: Acc...

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Instelling Accounting Information Systems
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Test Bank Accounting Information Systems, 4th Edition by Vernon Richardson

Answers Included ✅
Chap 01 4e Richardson
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

R
U
3) Business value includes all those items, events and interactions that determine the financial
health and well-being of the firm.

SE
⊚ true
⊚ false

IS
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.
O
⊚ true
⊚ false
N
N

5) The Certified Information Systems Auditor (CISA) is a professional designation generally
sought by those performing IT audits.
O

⊚ true
⊚ false
C
ED

6) Information is defined as being data organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
M

7) Data is defined as being information organized in a meaningful way that is useful to the user.
⊚ true
⊚ false

1

,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

R
⊚ false

U
10) Relevant information’s most defining characteristic is that it is free from bias and error.

SE
⊚ true
⊚ false

IS
11) The characteristics of relevant information include predictive value, feedback value and
timeliness.
O
⊚ true
⊚ false
N
N

12) A faithful representation of the underlying event should reflect the bias of the system analyst.
⊚ true
O

⊚ false
C

13) Information overload is defined as the difficulty a person faces in understanding a problem
ED

and making a decision as a consequence of too much information.
⊚ true
⊚ false
M

14) The main financial benefit of Customer Relationship Management practices reduces the cost
of goods sold.
⊚ true
⊚ false

2

,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 and nonfinancial
information for decision making and control.

R
⊚ true
⊚ false

U
SE
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

IS
⊚ false O
18) Outbound logistics are the activities associated with receiving and storing raw materials as
well as activities that transform these inputs into finished goods.
N
⊚ true
⊚ false
N
O

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,
C

instruction manuals, etc.).
⊚ true
ED

⊚ false

20) A well-designed and well-functioning AIS can be expected to create value by providing
M

relevant information helpful to management to increase revenues and reduce expenses.
⊚ true
⊚ false

3

, 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

R
U
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

SE
firms.
⊚ true
⊚ false

IS
24) CRM software often includes the use of database marketing tools to learn more about the
O
customers and to develop strong firm-to-customer relationships.
⊚ true
N
⊚ false
N

25) The Certified Information Technology Professional is the position created by the AICPA to
O

recognize CPAs who have the ability to provide skilled professional services on Information
Technology.
C

⊚ true
⊚ false
ED

26) Accounting Information Systems which are computerized do not need to maintain internal
controls.
M

⊚ true
⊚ false

4

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