Deck 1: Systems Fundamentals

Question 1

What does ERP stand for?

A)Enterprise Resource Planning
B)Enterprise Resource Package
C)Electronic Resource Planning
D)Electronic Resource Package

Answer 1

A

Question 2

Which of the following is unlikely to be the accounting's role to an organisation?

A)Gather data about the organisation's activities.
B)Provide a means for business data storage and processing.
C)Convert business data into useful information.
D)Exercise strategic decision-making according to accounting information.

Answer 2

D

Question 3

The following message box appears when entering a customer order into a sales system:

This is an example of:

A)Input
B)Process
C)Output
D)Feedback

Answer 3

D

Question 4

Which of the following statements best indicates the difference between data and information:

A)information and data are the same.
B)information is less useful than data.
C)information is always useful whereas data is only sometimes useful.
D)information is data that has been processed and converted

Question 5

The ICAA requires that its members should bring their analytic expertise to several fields.Which one of the following field is NOT specified by the ICAA?

A)Strategic planning and change management
B)Market analysis and compliance
C)The use of information technology
D)Human resource management

Question 6

A large company that provides supplies to the defence forces has just established a new accounting system.Which of the following is an example of a factor in the external environment that would impact on the design of this system:

A)The specification details gained from users.
B)The directive from the finance director about the system's operation capacity.
C)The defence force requirement regarding e-commerce.
D)The accounting standards governing large companies.

Question 7

A system can be defined as:

A)activities that are performed on inputs
B)any device used to capture data including manual keying and scanning.
C)any process that an accountant is involved in.
D)something that takes inputs,applies a set of rules or processes to the inputs and generates outputs.

Question 8

Inputs can include:

A)receipts and invoices that are given to customers.
B)data as well as other resources,that are the starting point for the system.
C)any process that an accountant is involved in.
D)computer reports that are analysed by accountants.

Question 9

As computer systems have been developed to perform the recording and classification tasks associated with business activities,the nature of accounting and the work of the accountant have also been pushed in a new direction.Increasingly,the role of the accountant is seen to be to:

A)Use computer programs rather than manual journals.
B)Ensure that businesses invest in new software.
C)Add value and provide and interpret information for an organisation.
D)Outsource accounting work to bookkeepers.

Question 10

"Charlie & Dave's Computer Store" is considering the best way to enter data about new customers that sign up as part of a new marketing campaign.Customers complete their details on a form and leave them at the store for further processing.The best method for capturing this data would be:

A)scanning through barcode technology.
B)optical mark readers.
C)manual keying.
D)scanning through image scanners.

Question 11

An accounting information system is unlikely to help a firm to:

A)determine whether to approve a credit sale
B)decide how much to purchase from suppliers
C)determine the provision for bad debts
D)eliminate financial fraud

Question 12

Which of the following statements is NOT a major reason of why accountants of the twenty-first century must be comfortable with information systems concepts?

A)Computer systems are playing an increasing part in the management and functioning of the organisation
B)Accountants are increasingly exposed to and working with technology and information systems
C)Accountants need to know how computers manage knowledge and its data resources.
D)Accountants need to lead and oversee the design of an accounting information system.

Question 13

Information is:

A)the same as data.
B)data that has been processed and converted.
C)less useful than data.
D)raw facts describing an event.

Question 14

Over time,the relationship between accounting and information systems has seen:

A)Accounting gain an increased role as the emphasis shifted from information systems to accounting
B)Information systems gain an increased role as the emphasis shifted from accounting to information systems
C)Information systems and accounting share the emphasis
D)Both accounting and information systems become part of a wider organisational IT function

Question 15

What is information overload?

A)The situation where a computer has more information than is needed or is able to be processed in a meaningful way when a computer program is executed.
B)The situation where an individual has more information than is needed or is able to be processed in a meaningful way when working through a decision.
C)The situation where a computer has more information than is needed or is able to be processed when data storage is taking place.
D)The situation where the amount of information exceeds the storage capacity of the brain of a human being.

Question 16

An accounting information system can best be defined as:

A)The application of technology to the capturing,storing,sorting and reporting of data.
B)The application of technology to the capturing,storing,sorting and reporting of information.
C)The application of technology to the capturing,verifying,storing,sorting and reporting of information relating to an organisation's activities.
D)The application of technology to the capturing,verifying,storing,sorting and reporting of data relating to an organisation's activities..

Question 17

An example of an output from an accounting information system could be:

A)the screen for entering transactions.
B)the screen for selecting what report to produce.
C)the screen that lists updated and categorised account balances.
D)the screen for entering file saving locations.

Question 18

The role of the accountant has changed in recent times because:

A)Professional bodies have sought to redefine and reposition the accounting function.
B)Computer systems have emerged to handle the classification and recording tasks traditionally associated with the accounting function.
C)The accounting cycle is too complex and involved to be performed solely by the accountant.
D)Knowledge workers have increasingly replaced accountants in the performance of recording and classification tasks.

Question 19

MICR is an input technology used:

A)on receipts and invoices that are given to customers.
B)on bank cheques.
C)in the processing of ATM receipts.
D)by many organisations to expedite the processing of accounts payable invoices.

Question 20

There are a few source documents that contain accounting data.An accounting clerk enters these data into an accounting program hosted in a computer.The computer displays an analysis report on screen when the accounting program has finished processing the data.
In this scenario,the accounting information system consists of:

A)The accounting program.
B)Source document and the accounting program.
C)Source document,the accounting program,and the computer.
D)Source document,the accounting clerk,the accounting program,and the computer.

Question 21

Which of the following description of XBRL is true?

A)XBRL is a new technology that yet to be made a practical reality.
B)XBRL adds meaning to data so that other applications know what the data represents and how it should be treated
C)XBRL is fundamentally different from HTML.
D)A standard set of XBRL tags is not available yet.

Question 22

Feedback:

A)always includes an error message.
B)is the method to indicate that a problem exists.
C)never includes an error message.
D)is the method for ensuring that the system is running as normal and that there are no problems or exceptional circumstances.

Question 23

Normalisation:

A)Is a process that can now be eliminated in designing databases due to technology improvements.
B)Ensures all the higher-level operational aspects are also included,as normalisation starts with the tables,forms and data of the organisation.
C)Is a top-down process.
D)Minimises potential anomalies that can emerge in a data management system

Question 24

Internal controls cannot:

A)Prevent anomalous and undesirable occurrences
B)Detect anomalous and undesirable occurrences
C)Correct anomalous and undesirable occurrences
D)Reverse the effects brought about by anomalous and undesirable occurrences

Question 25

Which of the following factors will impact on the way an auditor goes about the audit of an information system? (i)Legislative requirements (ii)Professional requirements; (iii)Prescription of the various auditing standards; (iv)Unique characteristics of the individual client.

A)i,iii
B)i,ii,iii
C)i,ii,iv
D)i,ii,iii,iv

Question 26

Which of the following statements concerning ethics is correct?

A)Ethics is concerned with how we act and how we make decisions.
B)Electronic accounting information systems eliminate the need for ethical behaviour.
C)Professional bodies,such as CPA and ICAA,are placing less reliance on ethics and more on legal compliance.
D)Ethical issues and legal issues are the same.

Question 27

Which of the following statements concerning working professionals is correct?

A)A working professional in the accounting domain will not be involved in system development.
B)A working professional in a domain extended beyond accounting is more likely to be involved in system development than their counterparts in the accounting domain.
C)A working professional in a domain extended beyond accounting is less likely to be involved in system development than their counterparts in the accounting domain.
D)System development will be part of the career of a working professional in the accounting domain.

Question 28

A database represents:

A)The culmination of hardware and software.
B)The culmination of hardware,software and data.
C)The culmination of procedures,hardware,software and data.
D)The culmination of people,procedures,hardware,software and data.

Question 29

Data Mining is:

A)a technology that is used by large multinational resource companies such as BHP,Rio Tinto and Xstrata
B)declining in popularity with companies due to the emergence of newer technologies.
C)a technology that analyses small pools of internally generated data and identifies possible cost savings.
D)a technology that analyses large pools of data and identifies patterns in them that can then be used by organisations for decision making.

Question 30

When it comes to capturing the underlying design and structure of a database,the term "ER diagram" refers to:

A)Enterprise Resource diagram
B)Entity Relationship diagram
C)Enterprise Relationship diagram
D)Entity Resource diagram

Question 31

Which of the following statement regarding internal control is correct?

A)Internal controls provide a degree of assurance that the organisation and its systems are running normally.
B)Internal controls can prevent and detect anomalous and undesirable occurrences,but they cannot reverse the effects caused by such occurrences.
C)Internal controls do not concern about natural disasters and other catastrophic disruptions.
D)Internal controls are only implemented in the most important functions of an organisation.

Question 32

The role of the accountant has changed in recent times because:

A)professional bodies have sought to redefine and reposition the accounting function.
B)Computer systems have emerged to handle the classification and recording tasks traditionally associated with the accounting function.
C)The accounting cycle is too complex and involved to be performed solely by the accountant.
D)Knowledge workers have increasingly replaced accountants in the performance of recording and classification tasks.

Question 33

Relational database approach:

A)looks for relationships between different business processes of logically connecting the different pieces of data
B)looks for relationships between different pieces of data as a means of logically connecting the different pieces of data
C)looks for relationships between different transactions as a means of logically connecting the different pieces of data
D)looks for relationships between different business entities as a means of logically connecting the different pieces of data

Question 34

XBRL stands for:

A)Extensible business reporting language.
B)Cross business reporting language.
C)Extended business report language.
D)Executable business reporting language.

Question 35

Internal controls do not control:

A)Physical assets in an organisation
B)Information resources in an organisation.
C)Human behaviours in an organisation.
D)Business process efficiencies in an organisation.

Question 36

In general,system documentations cannot show:

A)how business processes are designed
B)the data that moves through the processes
C)the activities that occur within the processes
D)all internal control mechanisms

Question 37

Which of the following activities is not part of the revenue cycle?

A)Receiving customer orders
B)Checking credit history
C)Packing and shipping goods to customers
D)Ordering new goods from suppliers

Question 38

Which one of the following is often overlooked by businesses when it comes to internal control?

A)Fraud
B)Theft of business data
C)Disaster recovery
D)Errors in data

Question 39

Which of the following statement regarding business processes is correct?

A)Business processes represent the series of discrete activities that deliver something of value to external customers
B)Business processes represent the series of discrete activities that deliver something of value to both internal and external customers
C)Business processes represent the series of interlocking activities that deliver something of value to internal customers
D)Business processes represent the series of interlocking activities that deliver something of value to both internal and external customers

Question 40

An ER diagram shows:

A)the logical design of the database from a top-down perspective
B)the physical design of the database from a top-down perspective
C)the logical design of the database from a bottom-up perspective
D)the physical design of the database from a bottom-up perspective

Question 41

Which of the following statements regarding the auditing of accounting information systems is NOT true?

A)When conducting an audit,the auditors should consider legislative requirements
B)When conducting an audit,the auditors should consider professional requirements
C)When conducting an audit,the auditors should consider prescriptions of various accounting standards
D)When conducting an audit,the auditors do not need to worry about the unique characteristics of an individual client

Question 42

Give five examples of decision-making (within a firm)that require accounting information.

Question 43

What is feedback and how does it interact with the system?

Question 44

Traditionally,the role of an accountant is to capture and record financial information.Has this role changed? Why or why not?

Question 45

Until the 1970s,information systems were seen as a support tool for the accounting function.What happened afterwards as technology continued to develop?

Question 46

Systems development is unlikely to be driven by:

A)A change in the regulatory environment
B)A change in the business environment
C)A business need from within the organisation
D)A change in the technology infrastructure,such as computer hardware

Question 47

Which of the following activities is not part of the production cycle?

A)Managing raw materials
B)Planning production
C)Keeping the finished goods
D)Handling variances for standard and actual costs of goods manufactured

Question 48

What is the relationship between system scope and the external environment?

Question 49

Which of the following activities is NOT part of the general ledger and financial reporting cycle?

A)Preparing and updating journals and ledger accounts
B)Preparing end-of-period adjusting entries and close the temporary accounts to profit and loss
C)Preparing trial balances and producing financial reports
D)Preparing cheque requisition

Question 50

Information overload can be harmful to both individuals and the relevant organisation,why?

Question 51

An accounting information system can be defined as the application of technology to the capturing,verifying,storing,sorting and reporting of data relating to an organisation's activities.Explain how this definition is arrived.

Question 52

What kind of information can an accounting information system provide and what are the uses of such information?

Question 53

Which of the following activities is not part of the expenditure cycle?

A)Purchasing
B)Updating the accounts payable
C)Authorising payment
D)Producing goods

Question 54

Which of the following statements about the HR management and payroll cycle is NOT true?

A)The cycle involves recruiting employees
B)The cycle involves managing and paying employees
C)The cycle involves dealing with situations where employees leave the organisation
D)Decisions about who to hire will not impact upon the way the other processes are executed.

Question 55

What are the differences between data and information?

Question 56

Which of the follow statements regarding ethics is false?

A)Ethics is concerned with how we act and how we make decisions.
B)Accountants are bound by professional ethics.
C)Most professional bodies have ethical standards that members must follow.
D)A casual bookkeeping employee,who is not a member of any professional association,need not adhere to professional accounting ethics.

Question 57

Describe the relationship between input,process,and output.