Deck 1: Introduction to AIS

Question 1

Which of the following is not true of the supply chain?

A)The supply chain includes vendors.
B)The supply chain excludes customers.
C)The supply chain includes information flows.
D)The supply chain include secondary suppliers.

Answer 1

B

Question 2

The correct order of the computer data hierarchy is:

A)Byte, bit, record, field, file, database
B)Bit, byte, record, field, file, database
C)Bit, byte, field, record, file, database
D)Bit, byte, field, record, database, file

Answer 2

C

Question 3

Which of the following is not an objective of IT enablement?

A)Increased accuracy of data
B)Reduced cost
C)Reduced security problems
D)Increased efficiency

Answer 3

C

Question 4

Work steps that are internal controls within the business process would include:

A)Using an electronic register to record all sales transactions.
B)Combining both manual and computer based records.
C)Reconciling a cash register at the end of each day.
D)Preparation of internal reports to monitor the performance of a specific department.

Question 5

The proper order of activity in an accounting information system would be as follows:

A)Capture, Record, Process, Report
B)Process, Record, Capture, Report
C)Capture, Process, Report, Record
D)Record, Capture, Process, Report

Question 6

The COSO report written for the purpose of assisting managers in the challenge of managing risk in their organization is entitled:

A)Internal Control -- Integrated Framework
B)Enterprise Risk Management -- Integrated Framework
C)Corporate Governance Guidance
D)IT Governance Guidance

Question 7

An accounting information system serves many functions.Which of the following is NOT one of those functions?

A)Capture the details of a transaction
B)Implement the start of a transaction
C)Provide reports of transactions
D)Process the transactions details into appropriate accounts

Question 8

Accountants have some form of use of the AIS in all but which role?

A)User
B)Programmer
C)Auditor
D)Designer

Question 9

A company's ____________ encompasses the tone of an organization and sets the basis for how risk is viewed and addressed by an entity's people.

A)Internal Environment
B)Internal Controls Framework
C)Code of Ethics
D)IT Governance Structure

Question 10

An IT enabled system for purchasing that is an "invoice-less" system is called a(n):

A)Automated matching system
B)Evaluated receipt settlement
C)E-payables
D)Point of sale system

Question 11

Which of the following is least likely to be part of an accounting information system function?

A)Record the accounting data in the appropriate records
B)Generation of data to be part of the information system.
C)Process the detailed accounting data.
D)Report the summarized accounting data.

Question 12

Which of the following statements, related to business processes, is false?

A)Each business process has a direct effect on the financial status of the organization.
B)A business process is initiated by a particular kind of event.
C)A business process has a well-defined beginning and end.
D)Each business process is usually completed in a relatively short period.

Question 13

The process that must identify the transactions to be recorded, capture all the important details of the transactions, properly process the transaction details, and provide reports is termed the:

A)Revenue Process
B)Expenditure Process
C)Accounting Information System
D)Business Process

Question 14

Which of the following is least likely to be an output of the accounting information system?

A)A check
B)A report
C)An invoice
D)A bar code

Question 15

Which of the following is not one of the general types of business processes identified by the textbook?

A)Revenue Processes
B)Expenditure Processes
C)Conversion Processes
D)Human Re

Question 16

Which of the following is not true of unethical behavior?

A)The only category of unethical behavior for accountants is inflating revenue.
B)Accountants are often pressured to help commit or cover up unethical behavior.
C)Hacking is an unethical behavior that accountants should be concerned about.
D)An accounting information system can be used to cover up unethical behavior.

Question 17

A prescribed sequence of work steps preformed in order to produce a desired result for the organization is called a(n):

A)Accounting Information System
B)Business Process
C)Financial Transaction
D)Capital Transaction Process

Question 18

When a company receives returned goods from a customer, the business process to accept the return would most likely be a(n):

A)Administrative process
B)Conversion process
C)Expenditure process
D)Revenue process

Question 19

The process of searching for identifiable patterns in data is called:

A)Sequential processing
B)Data warehousing
C)Data mining
D)Real-time processing

Question 20

Five different components of the accounting information system were presented in the textbook.Which of the following is not one of those components?

A)Work steps within a business process intended to capture accounting data as the business process occurs.
B)Work steps that are internal controls within the business process to safeguard assets and to ensure the accuracy and completeness of the data.
C)Work steps that generate both internal and external reports.
D)Work steps to assure that all business processes are recorded using computer-based procedures.

Question 21

The organization and control of all materials, funds, and related information in the logistics process, from the acquisition of raw materials to the delivery of finished products to the end user is referred to as:

A)Supply Chain Management
B)Management Information System
C)Logistics Management
D)IT Enablement

Question 22

A unit of storage that represents one character is referred to as a:

A)Byte
B)Bit
C)Bat
D)Field

Question 23

Each record is made up of related:

A)Files
B)Bytes
C)Name
D)Fields

Question 24

A set of related fields is referred to as a:

A)File
B)Record
C)Byte
D)Binary Digit

Question 25

The use of BPR (Business Process Reengineering) is twofold: (1) Aligns business processes with the IT systems used to recorded processes and, (2):

A)Improves the efficiency and effectiveness of these processes
B)Reduces the cost of these processes
C)Enhances the usefulness of these processes
D)Increases the accuracy of the process

Question 26

Output from an accounting information system would NOT include:

A)Checks to vendors
B)Invoices from vendors
C)Customer statements
D)Purchase orders

Question 27

Accounting software traditionally uses two different types of files.The file type that is the set of relatively temporary records that will be process to update the permanent file is referred to as a(n):

A)Master File
B)General File
C)Transaction File
D)Subsidiary File

Question 28

Which of the following statements is false?

A)A data warehouse is an integrated collection of enterprise-wide data that generally includes multiple years of nonvolatile data
B)When performing month end close and preparing monthly financial statements, an accountant would typically run reports from information stored in the company's data warehouse.
C)Data in a data warehouse is used to support management in decision making and planning
D)Data mining is the process of searching data within the data warehouse for identifiable patters than can be used to predict future behavior.

Question 29

The organization of files in a computer system normally uses one of two different access methods.The access method where the files are not stored in sequence, one record not stored immediately after another, is referred to as:

A)Indexed Access
B)Batch Access
C)Sequential Access
D)Random Access

Question 30

A collection of data stored in several small two-dimensional tables that can be joined together in many varying ways to represent many different kinds of relationships among the data is referred to as a(n):

A)Database
B)Master File
C)Relational Database
D)Relation Based Accounting

Question 31

The organization of files in a computer system normally uses one of two different access methods.The access method where the files store records in sequence, with one record stored immediately after another, is referred to as:

A)Chronological Access
B)Sequential Access
C)Random Access
D)Numerical Access

Question 32

The entities, processes, and information flows that involve the movement of materials, funds, and related information through the full logistics process, from the acquisition of raw materials to the delivery of the finished products to the end use is a set of linked activities referred to as:

A)Management Information System
B)Supply Chain
C)Accounting Information System
D)Logistics Management

Question 33

The purposeful and organized changing of business processes to make them more efficient is referred to as:

A)Information Technology Engineering
B)Information Systems Management
C)Business Process Reengineering
D)Business Process Supply Chain

Question 34

Using IT systems to enhance efficiency and effectiveness of internal or supply chain processes is called:

A)Information Technology Enablement
B)Information Systems Control
C)Information Technology Process Engineering
D)Information Technology Business Processes

Question 35

There are two modes of processing transactions in accounting systems.The mode that requires all similar transactions be grouped together and be processed at the same time, is referred to as:

A)Batch Processing
B)Online Processing
C)Real-time Processing
D)Sequential Processing

Question 36

The smallest unit of information in a computer system can have only one of two values, zero or one, and is referred to as a(n):

A)Field
B)Record
C)Byte
D)Bit

Question 37

The chart of accounts would be a good example of a:

A)Transaction File
B)Master File
C)Field
D)Record

Question 38

A collection of data stored on a computer in a form that allows the data to be easily accessed, retrieved, manipulated, and stored is referred to as a(n):

A)Accounting Information System
B)Information Technology
C)Database
D)Master File

Question 39

Accounting software traditionally uses two different types of files.The file type that is relatively permanent and used to maintain the detailed data for each major process is a(n):

A)General Ledger
B)Master File
C)Transaction File
D)Subsidiary File

Question 40

When discussing the supply chain:

A)Any concern about vendors would relate only to those vendors with which a company has direct contact.
B)Service providers would not be part of the supply chain.
C)Concern would not extend beyond the point where the product is shipped to a customer.
D)An entity may not be able to directly control all of the interrelated activities within the supply chain.

Question 41

An integrated collection of enterprise-wide data that includes five to ten fiscal years of non-volatile data, used to support management in decision making and planning is referred to as:

A)Operational Database
B)Relational Database
C)Data Storage
D)Data Warehouse

Question 42

The global computer network, or "information super highway," is the:

A)WAN
B)Intranet
C)Internet
D)LAN

Question 43

When a point of sale system is used and a customer checks out through a cash register, which of the following processes occur?

A)Net income is computed
B)Inventory values are updated
C)Accounts payable balances are updated
D)Replacement inventory is purchased

Question 44

This type of database contains the data that are continually updated as transactions are processed and includes data for the current fiscal year and supports day-to-day operations is referred to as a(n):

A)Data Warehouse
B)Data Storage
C)Relational Database
D)Operational Database

Question 45

This type of computer network spans a relatively small area, often confined to a single building or group of buildings, and is intended to connect computers within an organization.

A)Local Area Network
B)Land Arena Network
C)Extranet
D)Internet

Question 46

A type of online processing where a transaction is processed immediately so that the output is available immediately is termed:

A)Virtual Processing
B)Sequential Processing
C)Real-Time Processing
D)Batch Processing

Question 47

A system of computer hardware and software in which the software matches an invoice to its related purchase order and receiving report is called:

A)Point of sale system
B)Electronic data interchange
C)Automated matching
D)Evaluated receipt settlement

Question 48

This computer network is similar to a company's intranet except that it does allow access to selected outsiders, such as buyers, suppliers, distributors, and wholesalers.

A)Ultranet
B)Internet
C)Extranet
D)LAN

Question 49

A company's private network, accessible only to the employees of that company is the:

A)WAN
B)Intranet
C)Internet
D)LAN

Question 50

Two or more computers linked together to share information and / or resources is referred to as a(n):

A)Computer Intranet
B)Computer Internet
C)Computer System
D)Computer Network

Question 51

The process of searching data within the data warehouse for identifiable patterns that can be used to predict future behavior is referred to as:

A)Data mining
B)Data digging
C)Data housing
D)Data querying

Question 52

The intercompany, computer-to-computer transfer of business documents in a standard business format is called:

A)E-business
B)E-commerce
C)Local area network
D)Electronic data interchange

Question 53

An invoice-less system in which computer hardware and software complete an invoice-less match that is a comparison of the purchase order with the goods received is termed:

A)Evaluated receipt settlement
B)Automated matching
C)Electronic invoice presentation and payment
D)Enterprise re

Question 54

A contemporary type of computer infrastructure that is used by an increasing number of companies involves the use of shared services, software, and/or data stored on servers at a remote location, which are accessible over a network, is referred to as:

A)Database
B)Cloud Computing
C)Internet
D)Relational Internet

Question 55

There are two modes of processing transactions in accounting systems.The mode that will record transactions, one at a time, is referred to as:

A)Batch Processing
B)Online Processing
C)Real-Time Processing
D)Sequential Processing

Question 56

The use of electronic means to enhance business processes is termed:

A)E-business
B)Electronic data interchange
C)Point of sale system
D)E-commerce

Question 57

Which of the following is NOT one of the three components of electronic data interchange?

A)Commerce: encompasses all forms of electronic trading
B)Intercompany: two or more companies conducting business electronically
C)Standard business format: necessary
D)Computer to computer: indicates that each company's computers are connected via a network

Question 58

This term refers to a system of hardware and software that captures retail sales transactions by standard bar coding.

A)E-business
B)Electronic data interchange
C)Point of sale system
D)E-commerce

Question 59

The data in the data warehouse are said to be enterprise-wide because:

A)The data relate to all areas of the business.
B)The data are pulled from each of the operational databases and maintained in the data warehouse for many fiscal periods.
C)All areas of the business are able to access the data warehouse.
D)All transactions across the all areas of the business are recorded in the data warehouse.

Question 60

Which of the following is not an example of IT enablement?

A)Point of Sales Systems
B)Automated matching
C)Business Proecess Rengineering
D)Electronic Data Exchange

Question 61

Which of the following is not a risk inherent in an IT system?

A)Computer security breaches
B)Computers being stolen
C)Erroneous input of data
D)Hardware or

Question 62

An elaborate system of checks and balances, whereby a company's leadership is held accountable for building shareholder value and creating confidence in the financial reporting processes, is referred to as:

A)Enterprise risk management
B)Corporate governance
C)Application controls
D)Internal control structure

Question 63

The proper management, control, and use of IT systems are known as:

A)IT Governance
B)IT Controls
C)IT Risk Management
D)IT Code of Ethics

Question 64

Management has the responsibility, and the ability, to take action to reduce risks or to lessen the impact al nearly all risks an organization faces.The steps taken by management to lessen the risk or reduce the impact of the risk, are referred to as:

A)Programs
B)Risk assessment
C)Information evaluation
D)Controls

Question 65

A process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives is referred to as:

A)Enterprise re
B)Enterprise risk management
C)IT system control structure
D)Corporate governance structure

Question 66

Accountants have several possible roles related to accounting information systems.Which of the following is not normally one of those roles?

A)Auditor of an AIS
B)User of the AIS
C)Programmer of the AIS
D)Design of the AIS

Question 67

The COSO report, Internal Controls -- Integrated Framework, identified interrelated components of internal control.Which of the following is not one of those components?

A)Monitoring
B)Risk assessment
C)Control activities
D)Enterprise risk management

Question 68

The purpose of this 2002 act was to improve financial reporting and reinforce the importance of corporate ethics.

A)Foreign Corrupt Practices Act
B)Sarbanes-Oxley Act
C)Securities and Exchange Act
D)Treadway Act

Question 69

________ is accomplished through ongoing management activities, separate evaluations, or both.

A)Control activities
B)Risk Assessment
C)Risk Response
D)Monitoring

Question 70

IT controls can be divided into two categories.Which of the following is a correct statement of one of those categories?

A)Application controls apply overall to the IT accounting system.
B)Application controls apply to the prevention of erroneous or incomplete input or processing of data.
C)Application controls are used specifically in accounting applications to control inputs, processing, and output.
D)Application controls are used to prohibit fraudulent financial reporting.

Question 71

A multi-module software system designed to manage all aspects of an enterprise usually broken down into modules such as financials, sales, human resources, and manufacturing, is referred to as a(n):

A)Electronic data system
B)Electronic data interchange
C)Enterprise re
D)Electronic re

Question 72

This system enables a vendor to present an invoice to its trading partner via the internet, eliminating the paper, printing, and postage costs of traditional paper invoicing.

A)Evaluated receipt settlement
B)Electronic invoice presentation and payment
C)Automated matching
D)Electronic data interchange

Question 73

Which of the following is not one of the corporate functions interrelated within the corporate governance system?

A)Management Oversight
B)Ethical Conduct
C)Risk Assessment
D)Financial Stewardship

Question 74

IT Controls can be divided into two categories, general controls and application controls.Which of the following is an example of a general control?

A)The alignment of a company's IT strategy with its business strategy
B)The use of passwords to allow only authorized users to log into an IT-based accounting system
C)The use of an elaborate set of checks and balances whereby a company's leadership is held accountable for building shareholder value
D)A company performing background checks on employees of its IT department

Question 75

Which of the following is not one of broad categories of controls?

A)The risk that assets will be stolen or misused.
B)The risk of errors in accounting data or information.
C)The risk of loss due to a natural disaster.
D)The risk of fraudulent activity by employees.

Question 76

Which of the following are not part of risk analysis?

A)Risk management
B)Event Identification
C)Risk Response
D)Risk Assessment

Question 77

In order to achieve the objective of managing risk, management should establish control structures that include, at a minimum:

A)Accounting internal controls.
B)Accounting internal controls, IT controls, corporate governance, enterprise risk management, and IT governance.
C)IT controls, IT governance, corporate governance, and accounting internal controls.
D)IT controls and accounting internal controls.

Question 78

Which of the following groups of professionals within an organization have a history of designing and implementing the controls to lessen risks?

A)Management
B)Accountants
C)Human Re
D)Lawyers

Question 79

A comprehensive report on enterprise risk management was issued by this organization.

A)American Accounting As
B)New York Stock Exchange
C)Institute of Internal Auditors
D)Committee on Spon

Question 80

The company's development and adherence to this should reduce the opportunities for managements or employees to conduct fraud.

A)Code of ethics
B)Internal control structure
C)Application controls
D)Corporate governance