Question 1

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

Accepted Answer

Within the context of Chapter 1, "data" refers to raw facts and figures, while "information" refers to processed, organized, and meaningful data. Therefore, some types of data can be transformed into information through processing and analysis, making C the correct answer. A and B are incorrect because these terms are not the same nor exact opposites. D is incorrect because there is a correct answer.

Question 2

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

Accepted Answer

Students who specialize in both accounting and information systems have a unique skill set that is highly valuable in today's digital age. They can work in a wide range of job roles, including accounting information systems specialist, business systems analyst, IT auditor, financial systems analyst, etc. Therefore, there are ample career opportunities available for such students.

Question 3

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

Accepted Answer

The "S" in AIS stands for "System," as AIS stands for Automatic Identification System.

Question 4

Which of the following best describes a data warehouse as discussed in Chapter 1?

Accepted Answer

A data warehouse is designed to store and manage large volumes of data from various business applications, not limited to accounting, to support decision-making and analysis.

Question 5

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

Accepted Answer

Activity-based costing systems focus on allocating overhead on the basis of activities performed, rather than solely on direct labor hours used. Activities may include machine setups, inspections, or deliveries, and costs are assigned based on the resources consumed by each activity.

Question 6

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

Accepted Answer

Consulting positions, computerized auditing, and system computer auditing positions are all potential career opportunities for AIS (Accounting Information Systems) majors or minors. These fields require a strong understanding of accounting principles and practices, as well as expertise with data management and computer systems. Other potential career paths for AIS majors/minors include data analytics, financial analysis, and enterprise systems management.

Question 7

If a manager suffers "information overload":

Accepted Answer

The answer of If a manager suffers "information overload":
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Question 8

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

Accepted Answer

AIS majors are trained to manage and analyze financial information, making them well-suited for careers in financial or managerial accounting. They can use their skills to help organizations make informed decisions and improve their financial performance.

Question 9

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 10

Which of the following is true?

Accepted Answer

None of these choices are completely true. An AIS can be manual or computerized, may produce both useful and not-so-useful information, and can produce non-financial information as well.

Question 11

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

Accepted Answer

Within the traditional AIS, sales order would fall under the category of operational transactions, not accounting transactions. The purpose of accounting transactions is to record financial events and transactions that directly impact the financial statements, whereas operational transactions relate to the day-to-day operations of the business such as sales, purchases, inventory, etc.

Question 12

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

It is important for accountants to have knowledge of the capabilities and limitations of computers, as they often work with financial software and systems. This understanding can help them to identify errors or potential issues and ensure the accuracy and reliability of financial data.

Question 13

The CISA is an acronym for a professional accounting certification.

Accepted Answer

The answer of The CISA is an acronym for a...

Question 14

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 tasks traditionally performed by accountants, the need for accountants still exists as they play a critical role in interpreting and analyzing financial data, providing financial advice, and ensuring compliance with laws and regulations. Additionally, accountants are needed to design, implement, and maintain these computerized systems. Therefore, the role of accountants has evolved rather than declined.

Question 15

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

Accepted Answer

This is the main purpose of managerial accounting - to provide relevant and timely information to internal managers to help them make informed decisions for the company.

Question 16

Most AISs perform all of these functions except:

Accepted Answer

AISs perform all of the mentioned functions of collecting, storing and processing accounting data into useful information.

Question 17

Which of the following captures the same idea as the term "GIGO?"

Accepted Answer

"GIGO" stands for "Garbage In, Garbage Out," meaning that if you input poor quality data into a system, the output will also be poor. The phrase "Computers cannot turn straw into gold" captures this idea by suggesting that computers cannot produce valuable results from worthless input.

Question 18

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

Accepted Answer

Accountants are usually classified as "staff workers" within business organizations, as they provide support to the management team rather than being directly involved in production or sales.

Question 19

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

Accepted Answer

Today's AIS, or Accounting Information System, is designed to serve the entire enterprise and integrate various business processes across different departments.

Question 20

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

Accepted Answer

The letter "P" in the acronym ERP stands for "Planning." ERP software helps with planning and managing various aspects of a business, such as inventory, production, and finance.

Quiz 1: Accounting Information Systems and the Accountant