Question 1

Which of the following is not an example of how an AIS adds value to an organization?
A) All employees at a hospital can access and update patient records from any computer terminal in the hospital.
B) A customer service representative can find a customer's account data, purchase history, payment history, and salesperson's name while on the phone with the customer, to resolve issues quickly.
C) Suppliers are able to access sales data directly from the point-of-sale system of a retailer and deliver inventory automatically when needed.
D) Client tax files are encrypted and made available on the CPA firm's network to any employee with an access code.

Accepted Answer

The answer of Which of the following is not an...

Question 2

Differentiate between an AIS course and other accounting courses.

Accepted Answer

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Question 3

A good example of how an AIS is used to share knowledge within an organization is
A) the use of a corporate database to help staff identify the relevant experts who can help with a particular client.
B) the use of tablets to access a network for messaging worldwide.
C) the monitoring of production equipment to watch for defects.
D) the use of point-of-sale data to determine hot-selling items.

Accepted Answer

Option A describes a specific example of how an AIS can be used to share knowledge within an organization. By using a corporate database, staff can quickly and easily identify experts within the organization who can assist with a particular client. This helps to facilitate knowledge sharing and transfer within the organization, leading to better decision-making and improved client outcomes. Options B, C, and D are not examples of how an AIS can be used to share knowledge within an organization.

Question 4

Corporate strategy should affect the way a firm deploys an accounting information system.

Accepted Answer

Corporate strategy guides a firm's decisions regarding resource allocation, technology adoption, and business processes. An accounting information system is a critical component of a firm's technological infrastructure, and its deployment should align with the firm's overall strategy to ensure optimal usage and effectiveness.

Question 5

The American Institute of Certified Public Accountants (AICPA)has recognized the importance of AIS and the major impact information technology has on the area of accounting.To recognize individual CPAs who have met educational and experiential requirements in this area,the group formally created the designation known as
A) the Certified Information Auditor.
B) the Certified Internal Auditor.
C) the Certified Information Technology Professional.
D) the Certified Data Processing Professional.

Accepted Answer

The AICPA formally created the designation known as the Certified Information Technology Professional (CITP) to recognize individual CPAs who have met educational and experiential requirements in the area of AIS and information technology. The other options, such as Certified Information Auditor and Certified Internal Auditor, are designations offered by other organizations and do not specifically focus on the intersection of AIS and IT. Certified Data Processing Professional is an outdated designation that is no longer recognized by AICPA.

Question 6

What is the CITP designation and why is it important to AIS?

Accepted Answer

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Question 7

Accounting information plays major roles in managerial decision making by
A) identifying situations requiring management action.
B) reducing uncertainty.
C) providing a basis for choosing among alternative actions.
D) all of the above

Accepted Answer

Accounting information helps in identifying situations that require management action, reduces uncertainty by providing accurate and timely financial data, and provides a basis for choosing among alternative actions by presenting the costs and benefits associated with each option. All of these roles are essential for effective managerial decision making.

Question 8

Why have accounting software packages been designed with separate transaction modules?

Accepted Answer

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Question 9

Which of the following is a true statement?
A) Business strategy directly influences AIS, but not information technology.
B) Information technology directly influences organizational culture, but not business strategy.
C) Organizational culture directly influences business strategy, but not AIS.
D) AIS directly influences information technology, but not business strategy.

Accepted Answer

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Question 10

An accounting information system requires at least one computer.

Accepted Answer

An accounting information system (AIS) can be as simple as a manual system using ledgers and books; it does not necessarily require a computer.

Question 11

When the AIS provides information in a timely and accurate manner,it stands as an example of
A) improved decision making.
B) improving the quality and reducing the costs of products or services.
C) improving efficiency.
D) all of the above

Accepted Answer

When the AIS provides information in a timely and accurate manner, it can lead to improved decision making, improving the quality and reducing the costs of products or services, and improving efficiency. All of these factors contribute to the overall success and effectiveness of the organization.

Question 12

The AIS must include controls to ensure
A) safety and availability of data.
B) marketing initiatives match corporate goals.
C) information produced from data is accurate.
D) both A and C

Accepted Answer

The AIS must ensure the safety and availability of data as well as the accuracy of information produced from data. Marketing initiatives matching corporate goals are not directly related to the AIS.

Question 13

In Chapter 1,Figure 1-4 shows the factors that influence the design of AIS.The diagram shows a bi-directional arrow between the organizational culture and the AIS.The reason for this two-way interchange between organizational culture and AIS is
A) that the AIS should not influence the values of the organizational culture.
B) because the organization's culture influences the AIS, and likewise the AIS influences the organization's culture by controlling the flow of information within the organization.
C) due to the transfer of managers between the two corporate elements.
D) the AIS impacts the organization's key strategies.

Accepted Answer

The bi-directional arrow between organizational culture and AIS in Figure 1-4 indicates that there is a two-way interchange between these two elements. The organization's culture influences the design and use of the AIS, while the AIS also influences the organization's culture by controlling the flow of information within the organization. Therefore, both elements have an impact on each other, and the relationship is not just one-way.

Question 14

An AIS provides value by
A) improving products or services through information that increases quality and reduces costs.
B) providing timely and reliable information to decision makers.
C) creating new products.
D) both A and B

Accepted Answer

An AIS provides value by improving products or services through information that increases quality and reduces costs, as well as by providing timely and reliable information to decision makers. Therefore, option D is the best choice. Option C is not accurate because creating new products is not necessarily a direct value provided by an AIS, although it may indirectly contribute to product development through better information management.

Question 15

How can an AIS add value to the organization?

Accepted Answer

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Question 16

A well-designed AIS can improve the decision making in an organization.Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making.
A) An AIS provides to its users an abundance of information without any filtering or condensing of such information.
B) An AIS identifies situations requiring management action.
C) An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action.
D) An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making.

Accepted Answer

While providing an abundance of information may seem helpful, if the information is not filtered or condensed appropriately, it can actually inhibit effective decision making by overwhelming decision makers with irrelevant or extraneous information.

Question 17

How can an AIS become part of the firm's value chain and add value to the business?

Accepted Answer

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Question 18

Explain what an AIS is,describe the basic tasks it performs in an organization,and give some examples of the types of accounting transactions it processes.

Accepted Answer

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Question 19

How can the value of the information produced by an accounting information system be determined? What would a measurement and verification expert think about quantification and verification of such information?

Accepted Answer

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Question 20

A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the
A) organizational culture.
B) customer base.
C) external financial statement users.
D) production activity.

Accepted Answer

A change in the AIS that makes information more easily accessible and widely available within an organization is likely to have the most immediate impact on organizational culture. It may lead to a more transparent and collaborative work environment, where decision-making is informed by accurate and timely data. This can also foster a greater sense of accountability and engagement among employees. While changes in the AIS can ultimately affect customer base, external financial statement users, and production activity, these effects are likely to be more indirect and longer-term.

Quiz 1: Accounting Information Systems: an Overview

Which of the following is not an example of how an AIS adds value to an organization?

Differentiate between an AIS course and other accounting courses.

A good example of how an AIS is used to share knowledge within an organization is

Corporate strategy should affect the way a firm deploys an accounting information system.

What is the CITP designation and why is it important to AIS?

Accounting information plays major roles in managerial decision making by

Why have accounting software packages been designed with separate transaction modules?

Which of the following is a true statement?

An accounting information system requires at least one computer.

When the AIS provides information in a timely and accurate manner,it stands as an example of

The AIS must include controls to ensure

In Chapter 1,Figure 1-4 shows the factors that influence the design of AIS.The diagram shows a bi-directional arrow between the organizational culture and the AIS.The reason for this two-way interchange between organizational culture and AIS is

An AIS provides value by

How can an AIS add value to the organization?

A well-designed AIS can improve the decision making in an organization.Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making.

How can an AIS become part of the firm's value chain and add value to the business?

Explain what an AIS is,describe the basic tasks it performs in an organization,and give some examples of the types of accounting transactions it processes.

How can the value of the information produced by an accounting information system be determined? What would a measurement and verification expert think about quantification and verification of such information?

A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the