Question 1

Which of the following best describes a data warehouse?

Accepted Answer

A data warehouse is a centralized repository that stores data from a wide range of sources, not limited to accounting, to support business analysis and decision-making.

Question 2

Students majoring in AIS are unlikely to assume jobs in traditional accounting positions because they know too much.

Accepted Answer

Students majoring in Accounting Information Systems (AIS) are equipped with both accounting knowledge and information systems skills, making them highly versatile and capable of assuming traditional accounting positions as well as roles that integrate technology with accounting processes.

Question 3

Because accountants are not normally computer programmers working within the information processing subsystem, it is unnecessary for them to understand the capabilities and limitations of computers.

Accepted Answer

Accountants need to understand the capabilities and limitations of computers to effectively design, implement, and audit accounting information systems, ensuring they meet the organization's financial reporting and operational needs.

Question 4

Today's AIS is an enterprise-wide information system that focuses on interdepartmental business processes.

Accepted Answer

Today's Accounting Information Systems (AIS) are designed to be enterprise-wide, integrating and supporting interdepartmental business processes to enhance decision-making and operational efficiency across the organization.

Question 5

Activity-based costing systems focus on allocating overhead on the basis of direct labor hours used.

Accepted Answer

Activity-based costing (ABC) systems allocate overhead based on multiple cost drivers that reflect the cause-and-effect relationship between the activities performed and the costs incurred, rather than just on direct labor hours.

Question 6

The letter "P" in the acronym "ERP" stands for:

Accepted Answer

The answer of The letter "P" in the acronym "ERP"...

Question 7

As a result of computerized information processing systems in many organizations today, the need for accountants in these organizations has significantly declined.

Accepted Answer

While computerized information processing systems have automated many traditional accounting tasks, the need for accountants has not significantly declined. Instead, the role of accountants has evolved to focus more on analysis, strategy, and advising, leveraging the data processed by these systems.

Question 8

Managerial accounting principally provides decision?making information to a company's internal managers.

Accepted Answer

Managerial accounting focuses on providing information to a company's internal managers to assist in decision-making processes, unlike financial accounting which is aimed at providing information to external parties.

Question 9

The "S" in the acronym "AIS" stands for:

Accepted Answer

The "S" in the acronym "AIS" stands for "System," making the full term "Accounting Information System."

Question 10

Which of the following captures the same idea as the term "Garbage In Garbage Out?"

Accepted Answer

The phrase "Garbage In, Garbage Out" means that the quality of output is determined by the quality of the input. If poor data (garbage) is input into a system, the output will also be poor (garbage). This concept is widely used in computer science and information technology to emphasize the importance of accurate and high-quality input data.

Question 11

An example of a value-added reseller (VAR)is a dealer who sells software but does not help with the installation, training and customization of that software for the customer.

Accepted Answer

A value-added reseller (VAR) typically enhances or adds features to an existing product, then sells it as an integrated product or complete "turn-key" solution, which often includes installation, training, and customization.

Question 12

Which of the following is true about the terms "data" and "information" within the context of Chapter 1?

Accepted Answer

Processed data becomes information, which means that once data is analyzed and interpreted, it provides meaningful insights or information.

Question 13

The CISA is an acronym for a professional accounting certification.

Accepted Answer

The CISA (Certified Information Systems Auditor) is a professional certification for information systems auditors.

Question 14

One possible career for AIS majors is in the traditional area of financial or managerial accounting.

Accepted Answer

AIS (Accounting Information Systems) majors can pursue careers in various fields, including traditional areas such as financial or managerial accounting, as their education provides a strong foundation in accounting principles enhanced by a deep understanding of information systems.

Question 15

Some possible career opportunities for AIS majors or minors include consulting positions, computerized auditing, or computer security positions.

Accepted Answer

AIS (Accounting Information Systems) majors or minors are well-prepared for careers in consulting, computerized auditing, and computer security due to their understanding of both accounting principles and information technology systems.

Question 16

Within the traditional AIS, a sales order would not be considered an accounting transaction.

Accepted Answer

A sales order is a request for goods or services and does not involve a financial exchange or impact on the financial statements, so it is not considered an accounting transaction.

Question 17

A good audit trail within the financial accounting system should allow a manager or auditor to trace any source document back from a report to the original data entry.

Accepted Answer

A good audit trail is designed to provide a chronological path that allows an auditor or manager to trace any financial data or transaction from the report back to the original source document or data entry, ensuring transparency and accountability.

Question 18

There are limited career opportunities available for students who study both accounting and information systems.

Accepted Answer

Studying both accounting and information systems opens up a wide range of career opportunities, including roles in financial analysis, management consulting, information systems auditing, and more, as these skills are highly valued in the intersection of finance and technology.

Question 19

"CPA Trust Services" performed by a CPA provides assurance that a company engaged in electronic commerce has an information system that is secure.

Accepted Answer

CPA Trust Services are designed to provide assurance on information systems, including their security, which is crucial for companies engaged in electronic commerce.

Question 20

Accountants are usually classified as "line workers" within business organizations.

Accepted Answer

Accountants are typically classified as "staff" rather than "line workers" because they provide support, advice, and assistance to the line functions within an organization, rather than being directly involved in the primary activities of producing or selling.

Quiz 1: Accounting Information Systems and the Accountant