Question 1

Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue Service is an example of discretionary information.

Accepted Answer

The production of a 1040 tax form from the Accounting Information System (AIS) for delivery to the Internal Revenue Service (IRS) is an example of mandatory information, as it is required by law.

Question 2

An accounting information system (AIS)is defined as being an information system that records,processes and reports on transactions to provide financial and nonfinancial information for decision making and control.

Accepted Answer

An accounting information system (AIS) is indeed defined as an information system that records, processes and reports on transactions to provide financial and nonfinancial information for decision making and control.

Question 3

A well-designed and well-functioning AIS can be expected to create value by providing relevant information helpful to management to increase revenues and reduce expenses.

Accepted Answer

A well-designed and well-functioning AIS is expected to provide accurate, timely and relevant information that enhances decision-making processes, which in turn can lead to increased revenues and reduced expenses.

Question 4

Information is defined as being data organized in a meaningful way that is useful to the user.

Accepted Answer

This is the commonly accepted definition of information in both everyday language and the field of information science.

Question 5

The Certified Information Systems Auditor (CISA)is a professional designation generally sought by those performing IT audits.

Accepted Answer

The statement is true. The CISA is a professional certification granted by ISACA (Information Systems Audit and Control Association) to individuals who demonstrate proficiency in auditing, controlling, and securing information systems.

Question 6

Relevant information's most defining characteristic is that it is free from bias and error.

Accepted Answer

Relevant information may still contain some bias or error, but it should provide accurate and useful insights for decision-making. It is important to evaluate sources of information and consider potential biases or inaccuracies before making any significant decisions based on that information.

Question 7

An enterprise system is a centralized database that collects data from throughout the firm.This includes data from orders,customers,sales,inventory and employees.

Accepted Answer

An enterprise system is designed to centralize and integrate all data and processes of an organization, including data from orders, customers, sales, inventory, and employees.

Question 8

Outbound logistics are the activities associated with receiving and storing raw materials as well as activities that transform these inputs into finished goods.

Accepted Answer

Outbound logistics are the activities associated with delivering finished products to customers, not receiving and storing raw materials or transforming inputs into finished goods. This definition describes inbound logistics.

Question 9

The Certified Information Technology Professional (CITP)is a professional designation for those with a broad range of technology knowledge and does not require a CPA.

Accepted Answer

The CITP (Certified Information Technology Professional) is a credential granted by the American Institute of Certified Public Accountants (AICPA) specifically for CPAs who have demonstrated expertise and proficiency in information technology.

Question 10

A faithful representation of the underlying event should reflect the bias of the system analyst.

Accepted Answer

A faithful representation of the underlying event should be objective and free from bias, not influenced by the personal opinions or preferences of the system analyst.

Question 11

As of today,Accounting Information Systems are all computerized.

Accepted Answer

Not all Accounting Information Systems are computerized. Some organizations may still use manual systems or a combination of manual and computerized systems.

Question 12

The main financial benefit of Customer Relationship Management practices reduces the cost of goods sold.

Accepted Answer

The main financial benefit of Customer Relationship Management practices is increasing revenue through customer retention and loyalty, as well as reducing customer acquisition costs. It may indirectly lead to reducing the cost of goods sold, but it is not its main financial benefit.

Question 13

Information overload is defined as the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.

Accepted Answer

This is the correct definition of information overload.

Question 14

Data is defined as being information organized in a meaningful way that is useful to the user.

Accepted Answer

The answer of Data is defined as being information organized...

Question 15

Business value includes all those items,events and interactions that determine the financial health and well-being of the firm.

Accepted Answer

Business value is a comprehensive term that includes all the factors that determine the financial performance of a company, such as revenue, profit margins, customer satisfaction, brand reputation, employee engagement, and market share.

Question 16

The characteristics of relevant information include predictive value,feedback value and timeliness.

Accepted Answer

Predictive value means that the information can help to predict future events, feedback value means that the information can provide feedback on past events for evaluation, and timeliness means that the information is available in time to make decisions. These are all characteristics of relevant information.

Question 17

A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.

Accepted Answer

This is the primary role and responsibility of a systems analyst - to analyze business problems and recommend software or systems to address them.

Question 18

A value chain is defined as the cost of performing various activities inside a firm.

Accepted Answer

A value chain is defined as a sequence of activities that help create and deliver a product or service, and it includes both internal and external activities. It is not just the cost of performing activities inside a firm, but also the value added at each step in the chain.

Question 19

Service Activities as defined in the value chain are those activities that provide the support of customers after the products and services are sold to them (e.g.warranty repairs,parts,instruction manuals,etc. ).

Accepted Answer

Service activities in the value chain are indeed those activities that provide support to customers after the products and services are sold to them, such as warranty repairs, parts, instruction manuals, customer service, and technical support.

Question 20

An efficient Enterprise System can significantly lower the cost of support processes included in sales,general,and administrative expenses.

Accepted Answer

An efficient Enterprise System can automate and streamline support processes, reducing the need for manual intervention and lowering the cost of support processes included in sales, general, and administrative expenses.

Quiz 1: Accounting Information Systems and Firm Value