Question 1

Refer to the Level Zero data flow diagram below and the CWM case in responding to the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.  Which of the following is most likely to be the name of Process 1.0?
A)Perform intake interview
B)Give client service information
C)Create online account
D)None of these is likely to be the name of Process 1.0.

Accepted Answer

Process 1.0 involves collecting client information during the intake interview, as stated in the case description. Therefore, A) Perform intake interview is the most likely name for Process 1.0. B and C do not accurately describe the process of collecting client information during the initial phone call. D is not a valid option as the case describes a specific process that needs to be named.

Question 2

Refer to the Level Zero data flow diagram below and the CWM case in responding to the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.  Which of the following statements about the Level Zero data flow diagram is most true?
A)Process 1.0 is likely to be labeled "Perform intake interview."
B)Process 2.0 is likely to be labeled "Bill client and collect payment."
C)Both process 1.0 is likely to be labeled "Perform intake interview" and process 2.0 is likely to be labeled "Bill client and collect payment" are true.
D)Neither process 1.0 is likely to be labeled "Perform intake interview" nor process 2.0 is likely to be labeled "Bill client and collect payment" is true.

Accepted Answer

The answer of Refer to the Level Zero data flow...

Question 3

Please refer to the following case as you answer the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.CWM stores clients' information electronically.The database file would be represented in a data flow diagram with a(n):
A)Circle
B)Arrow
C)Rectangle
D)Set of parallel lines

Accepted Answer

In a data flow diagram (DFD), a database or a data store is represented by a set of parallel lines.

Question 4

The generalized model of business process management discussed in the text comprises seven steps.Data flow diagrams could be used in a BPM project to: (i) select the process and define its boundaries, (ii) observe, document and map the process steps and flow, (iii) optimize the process.
A)I and II only
B)I and III only
C)II and III only
D)I, II and III

Accepted Answer

Data flow diagrams could be used in all three steps of BPM project: (i) to select the process and define its boundaries by identifying the information inputs and outputs, (ii) to observe, document and map the process steps and flow by representing how the data moves through the process, and (iii) to optimize the process by identifying areas where data flows could be improved or eliminated. Therefore, the best choice is D, which includes all possible steps.

Question 5

Refer to the Level Zero data flow diagram below and the CWM case in responding to the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.  Which of the following statements about the Level Zero data flow diagram is most true?
A)Process 2.0 is likely to be labeled "Bill client and collect payment."
B)Process 3.0 is likely to be labeled "Establish online account and update data store."
C)Both process 2.0 is likely to be labeled "Bill client and collect payment" and process 3.0 is likely to be labeled "Establish online account and update data store" are true.
D)Neither process 2.0 is likely to be labeled "Bill client and collect payment" nor process 3.0 is likely to be labeled "Establish online account and update data store" is true.

Accepted Answer

Process 2.0 involves the billing and payment process for CWM's clients, as stated in the problem description. This process does not involve establishing an online account, so it is unlikely to be labeled "Establish online account and update data store" (Choice B). Therefore, the most true statement is that Process 2.0 is likely to be labeled "Bill client and collect payment" (Choice A). Choice C is incorrect because it implies that both statements are true, which is not supported by the problem description. Choice D is incorrect because it implies that neither statement is true, which is also not supported by the problem description.

Question 6

Please refer to the following case as you answer the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.How many data stores will be shown in CWM's Level Zero data flow diagram?
A)Zero, since all the information is stored electronically
B)One, labeled "client database"
C)Two, labeled "client database" and "invoice database"
D)More than two

Accepted Answer

The correct answer is two data stores: "client database" for storing client information and "invoice database" for billing and payment information.

Question 7

Please refer to the following case as you answer the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.How many processes will be shown in a context diagram for the CWM case?
A)Zero
B)One
C)Two
D)More than two

Accepted Answer

The context diagram shows the highest level of detail and only portrays one process - the interaction between the new client and the CWM employee to establish service. The billing and online account creation processes are at a lower level of detail and would be shown in separate diagrams.

Question 8

Please refer to the data flow diagram below in answering the question:  Which of the following statements about the data flow diagram is most true?
A)"External stakeholders" will be decomposed in subsequent levels.
B)"Ledger" must be maintained electronically.
C)Process 3.0 will be decomposed in subsequent levels.
D)All of these statements are true.

Accepted Answer

The answer of Please refer to the data flow diagram...

Question 9

If an accounting information system is documented with a systems flowchart:
A)It does not need to be documented with a data flow diagram.
B)It cannot be documented with a data flow diagram.
C)It may also be documented with a data flow diagram.
D)A data flow diagram would serve no practical purpose.

Accepted Answer

While a systems flowchart provides an overview of the processes and subsystems within an accounting information system, a data flow diagram can further illustrate how data moves through the system. Therefore, it is possible and often beneficial to have both types of documentation for a complete understanding of the system.

Question 10

Refer to the Level Zero data flow diagram below and the CWM case in responding to the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.  Based on the Level Zero data flow diagram, which of the following statements about the context diagram is most true?
A)The client database will not be shown in the context diagram.
B)The external entity "client" must have at least three data flows coming out of it.
C)The external entity "client" must have at least one data flow going into it.
D)All of these statements are true.

Accepted Answer

The answer of Refer to the Level Zero data flow...

Question 11

Data flow diagrams can be used for: (i) completing the steps in the accounting cycle, (ii) making business processes more efficient and effective, (iii) completing one or more steps of the systems development life cycle.
A)I and II only
B)I and III only
C)II and III only
D)I, II and III

Accepted Answer

Data flow diagrams are primarily used for making business processes more efficient and effective (ii) and for completing one or more steps of the systems development life cycle (iii). They are not typically used for completing steps in the accounting cycle (i).

Question 12

Please refer to the following case as you answer the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.Which of the following data flow diagram levels provides the highest level view of the CWM information system?
A)Context
B)Level Zero
C)Level One
D)Some other level

Accepted Answer

The Context level provides the highest level view of the information system, showing only the system's external inputs and outputs without any details of the processes or data flows within the system. In this case, the external inputs would be the client's information provided over the phone, and the external output would be the information given to the client regarding services, fees, and billing procedures.

Question 13

A data flow diagram can be used:
A)Instead of a systems flowchart in AIS work.
B)In addition to a systems flowchart in AIS work.
C)Both instead of a systems flowchart in AIS work and in addition to a systems flowchart in AIS work.
D)Neither instead of a systems flowchart in AIS work nor in addition to a systems flowchart in AIS work.

Accepted Answer

A data flow diagram (DFD) can serve both as an alternative to a systems flowchart and as a complementary tool in Accounting Information Systems (AIS) work. It provides a visual representation of data flow within a system, which can be useful both in lieu of and alongside traditional flowcharting techniques to offer different perspectives on system processes.

Question 14

Please refer to the data flow diagram below in answering the question:  The preceding data flow diagram is:
A)A context diagram of the accounting cycle.
B)A Level Zero diagram of the accounting cycle.
C)A Level Zero diagram of the transaction analysis process.
D)A Level One diagram of the transaction analysis process.

Accepted Answer

The diagram shows a single process labeled "Transaction Analysis" with inputs and outputs. This is a Level Zero diagram of the accounting cycle, which represents the overall process without going into detail.

Question 15

Please refer to the following case as you answer the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.CWM's manual billing process will be represented in a data flow diagram with a(n):
A)Circle
B)Arrow
C)Rectangle
D)Set of parallel lines

Accepted Answer

In a data flow diagram, a circle represents a process, such as the manual billing process described for CWM.

Question 16

Please refer to the following case as you answer the question: Comprehensive Waste Management (CWM) provides trash hauling services for several communities in southern California.When a new client wants to establish service, the client calls the company's main office on the phone.A CWM employee collects the following information from the client: name, street address, city, state, ZIP code, area code, telephone number, e-mail address.The employee gives the new client information regarding regular weekly service dates, special services provided by the company, fees and billing procedures.CWM bills its clients every two months in advance of the service; for example, bills are sent to clients at the beginning of January for the months of January and February.Initially, CWM does all its billing manually; they send out paper bills and collect payment from clients via check.Once service is established, a client can create an online account; the online account provides an option for paperless billing and a separate option for charging a credit card rather than paying with a mailed check.To create an online account, the client creates login credentials (user name and password); they provide their CWM account number (provided on the invoice) and relevant credit card data (type of card, name, billing address, and security code).CWM's database uses the account number to look up the client's original information, then merges the new information with it.Assume CWM wants no more than three processes shown on its Level Zero data flow diagram.All of the following are likely to be processes except:
A)Perform intake interview
B)Bill client and collect payment
C)Establish online account
D)Update client database

Accepted Answer

"Update client database" is not a process but rather a data storage or maintenance activity. Processes typically involve actions or operations performed on data, such as intake interviews, billing, and account establishment.

Question 17

Data flow diagrams can be used in which of the following steps of the systems development life cycle: (i) requirements analysis, (ii) design, (iii) implementation.
A)I and II only
B)I and III only
C)II and III only
D)I, II and III

Accepted Answer

Data flow diagrams (DFDs) are useful in all three steps of the systems development life cycle. In the requirements analysis phase, DFDs can be used to describe the current system and identify the requirements for the new system. During the design phase, DFDs can be used to model the new system, identify its components, and specify how they interact. In the implementation phase, DFDs can be used to plan and execute the coding and testing of the new system. Therefore, the correct answer is D, which includes all three steps of the systems development life cycle.

Question 18

Accounting information systems have five generic elements.A data flow diagram would be least helpful for which of the five?
A)Processes
B)Outputs
C)Storage
D)Internal control

Accepted Answer

A data flow diagram is used to depict the flow of data among processes, storage, and outputs. Internal control is a broader concept that includes the policies, procedures, and systems put in place by an organization to safeguard its assets, ensure accuracy and completeness of financial reports, comply with laws and regulations, and promote operational efficiency. While a data flow diagram may show the flow of data related to internal control processes, it would not provide a comprehensive overview of the organization's internal control system.

Question 19

Please refer to the data flow diagram below in answering the question:  In the next level of data flow diagrams, Process 3.1 is most likely to be labeled:
A)Record adjusting entries.
B)Prepare financial statements.
C)Close nominal accounts.
D)Complete first step of year-end work.

Accepted Answer

The answer of Please refer to the data flow diagram...

Question 20

Please refer to the data flow diagram below in answering the question:  In the next level of data flow diagrams:
A)Process 1.0 could be decomposed into two steps.
B)Process 3.0 can only be decomposed if both the other processes are.
C)Additional data stores are likely to appear.
D)The data flows "financial statements" and "account balances" can be combined.

Accepted Answer

Process 1.0 has multiple inputs and outputs, which makes it a good candidate for decomposition into smaller steps. Processes 2.0 and 3.0 both have only one input and one output, so there is less need to decompose them. Additional data stores may or may not be needed in the next level of data flow diagrams, depending on how the processes are decomposed. The data flows "financial statements" and "account balances" are distinct and should not be combined.

Quiz 8: Data Flow Diagramming

The generalized model of business process management discussed in the text comprises seven steps.Data flow diagrams could be used in a BPM project to: (i) select the process and define its boundaries, (ii) observe, document and map the process steps and flow, (iii) optimize the process.

Please refer to the data flow diagram below in answering the question: Which of the following statements about the data flow diagram is most true?

If an accounting information system is documented with a systems flowchart:

Data flow diagrams can be used for: (i) completing the steps in the accounting cycle, (ii) making business processes more efficient and effective, (iii) completing one or more steps of the systems development life cycle.

A data flow diagram can be used:

Please refer to the data flow diagram below in answering the question: The preceding data flow diagram is:

Data flow diagrams can be used in which of the following steps of the systems development life cycle: (i) requirements analysis, (ii) design, (iii) implementation.

Accounting information systems have five generic elements.A data flow diagram would be least helpful for which of the five?

Please refer to the data flow diagram below in answering the question: In the next level of data flow diagrams, Process 3.1 is most likely to be labeled:

Please refer to the data flow diagram below in answering the question: In the next level of data flow diagrams: