Question 1

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 definition of information overload.

Question 2

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 are indeed defined as those activities that support customers after the sale, such as warranty repairs, parts, and instruction manuals.

Question 3

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

Accepted Answer

The CITP designation is specifically for CPAs who have a broad range of technology knowledge and skills.

Question 4

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

Accepted Answer

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

Question 5

Outbound logistics are the activities associated with receiving and storing raw materials and other partially completed materials,and distributing those materials to manufacturing when and where they are needed.

Accepted Answer

Outbound logistics are actually the activities associated with delivering finished products to customers or distributors, not receiving and storing raw materials.

Question 6

The characteristics of reliable information are that the information is verifiable,without bias and timely.

Accepted Answer

The answer of The characteristics of reliable information are that...

Question 7

Relevant information is that information that is free from bias and error.

Accepted Answer

Relevant information refers to information that is applicable and pertinent to a particular situation or problem. It does not necessarily guarantee freedom from bias or error.

Question 8

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 processes, reducing the need for manual labor and therefore lowering costs associated with support processes included in sales, general, and administrative expenses.

Question 9

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

A systems analyst is responsible for identifying and analyzing business problems and then recommending appropriate software or systems to solve those problems.

Question 10

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 can provide accurate and timely information to management, which can lead to better decision-making and ultimately increase revenues and reduce expenses. Therefore, it can create value for the organization.

Question 11

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 indeed a measure of the financial health and well-being of the firm, which includes a wide range of items, events, and interactions. This can include everything from sales revenue, profits and costs to intangible factors such as customer satisfaction, employee morale, and brand reputation.

Question 12

A value chain is defined as the flow of materials,information,payments,and services from customer to supplier.

Accepted Answer

A value chain is defined as the flow of materials, information, payments, and services from supplier to customer, not the other way around.

Question 13

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

Accepted Answer

This is the correct definition of information.

Question 14

Accounting and Finance is a primary activity in the value chain.

Accepted Answer

Accounting and Finance are considered support activities in the value chain, not primary activities. Primary activities directly relate to the creation and delivery of a product or service.

Question 15

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 a centralized database that collects data from throughout the firm, including data from orders, customers, sales, inventory, and employees.

Question 16

Accounting Information Systems at this date are all computerized.

Accepted Answer

While many accounting information systems are computerized, not all of them are. Some smaller businesses may still utilize manual accounting systems or a combination of manual and computerized systems.

Question 17

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 certification is specifically designed for professionals who perform IT audits, among other tasks related to information systems control and security.

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

Data is raw, unprocessed facts and figures. When organized and processed, it becomes information, which is meaningful and useful to the user.

Question 20

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 increased revenue and customer loyalty, which may lead to reduced customer acquisition costs and an increase in customer lifetime value. It may indirectly impact the cost of goods sold, but it is not the main financial benefit.

Quiz 1: Accounting Information Systems and Firm Value