Question 1

What does ERP stand for?

Accepted Answer

ERP stands for Enterprise Resource Planning, which is a business management software that allows organizations to consolidate and automate their operations across different departments and functions. It integrates various business processes such as finance, human resources, manufacturing, supply chain management, and customer relationship management into a single system, providing real-time data and insights for decision-making. Option B, C, and D are not correct because they do not accurately reflect the meaning of ERP.

Question 2

Which of the following is unlikely to be the accounting's role to an organisation?

Accepted Answer

While accounting information can inform strategic decision-making, it is unlikely that accounting would be responsible for actually making those decisions on behalf of the organization. Accounting generally provides objective data and analysis to inform decision-makers, but the ultimate responsibility for strategic decision-making typically lies elsewhere within the organization.

Question 3

The following message box appears when entering a customer order into a sales system:

This is an example of:

Accepted Answer

D

Question 4

Which of the following statements best indicates the difference between data and information:

Accepted Answer

Data refers to raw facts and figures that have not been processed or organized. Information, on the other hand, is data that has been processed and organized into a form that is useful for decision-making or other purposes. Therefore, option D - information is data that has been processed and converted is the best choice that accurately indicates the difference between data and information.

Question 5

The ICAA requires that its members should bring their analytic expertise to several fields.Which one of the following field is NOT specified by the ICAA?

Accepted Answer

The ICAA specifies strategic planning and change management, market analysis and compliance, and the use of information technology as fields where its members should bring their analytic expertise, but it does not specify human resource management.

Question 6

A large company that provides supplies to the defence forces has just established a new accounting system.Which of the following is an example of a factor in the external environment that would impact on the design of this system:

Accepted Answer

The answer of A large company that provides supplies to...

Question 7

A system can be defined as:

Accepted Answer

Option D provides the most accurate and complete definition of a system. It encompasses the input-output process and the application of a set of rules or processes. Option A is too narrow, option B only refers to data capture devices, and option C is too vague.

Question 8

Inputs can include:

Accepted Answer

Inputs for accounting systems typically refer to data and resources that are used to initiate and inform the system. Receipts and invoices given to customers (A) are outputs, not inputs, as they represent the results of a transaction that has already been entered into the system. "Any process that an accountant is involved in" (C) is too broad a term and doesn't specifically refer to inputs. Similarly, "computer reports" (D) are outputs, not inputs, as they represent information that has already been processed and analyzed by the system.

Question 9

As computer systems have been developed to perform the recording and classification tasks associated with business activities,the nature of accounting and the work of the accountant have also been pushed in a new direction.Increasingly,the role of the accountant is seen to be to:

Accepted Answer

With the advent of computer systems, the role of accountants is no longer limited to manual journaling or investing in new software. Accountants now have the responsibility to add value to the organization by providing and interpreting information that can help in making strategic decisions. This is possible with the help of the vast amounts of financial and non-financial data that can be easily accessed and processed using modern software tools. Therefore, Option C is the best choice.

Question 10

"Charlie & Dave's Computer Store" is considering the best way to enter data about new customers that sign up as part of a new marketing campaign.Customers complete their details on a form and leave them at the store for further processing.The best method for capturing this data would be:

Accepted Answer

Given that customers are completing their details on a form and leaving them at the store, the most flexible and accurate method for capturing a wide range of handwritten or typed information would be manual keying. This method allows for the input of diverse data types (such as names, addresses, and phone numbers) exactly as provided by the customers, which might not be effectively captured by barcode technology, optical mark readers, or image scanners due to their limitations in recognizing handwritten or complex information.

Question 11

An accounting information system is unlikely to help a firm to:

Accepted Answer

While an accounting information system can help in detecting financial fraud, it cannot completely eliminate it as there is always the possibility of human errors or intentional misconduct. Therefore, option D is not an accurate statement. Options A, B, and C are all tasks that an accounting information system can help with, as it can provide information on creditworthiness, purchasing levels, and potential bad debts.

Question 12

Which of the following statements is NOT a major reason of why accountants of the twenty-first century must be comfortable with information systems concepts?

Accepted Answer

While accountants do have a role in the design and implementation of accounting information systems, it is not the primary reason why they must be comfortable with information systems concepts. The other options listed (A, B, and C) all highlight the increasing role of technology and information systems in accounting and business operations.

Question 13

Information is:

Accepted Answer

Information refers to data that has been processed, structured or presented in a given context to make it meaningful and useful. Therefore, data needs to be converted into information to become useful. Option B best describes this definition.

Question 14

Over time,the relationship between accounting and information systems has seen:

Accepted Answer

Over time, information systems have gained an increased role in accounting, as technology has enabled more efficient and accurate recording and reporting of financial information. This has led to the development of specialized accounting information systems that are integrated with other organizational IT functions. Accounting still plays a crucial role in overseeing the accuracy and reliability of financial information, but its relationship with information systems has become more intertwined.

Question 15

What is information overload?

Accepted Answer

Information overload refers to the situation in which an individual has more information than they are able to effectively process, making it difficult to make decisions or take action. This can lead to feelings of stress, anxiety, and confusion. While computers can also experience information overload, the term is most commonly applied to humans.

(Note: option A describes a scenario that may occur during computer processing, but it does not accurately define information overload. Option C is misleading, as the amount of information a computer can process is typically limited by capacity or processing power, rather than the sheer amount of information available. Option D is also incorrect, as the human brain has an almost limitless capacity to store information.)

Question 16

An accounting information system can best be defined as:

Accepted Answer

The answer of An accounting information system can best be...

Question 17

An example of an output from an accounting information system could be:

Accepted Answer

The screen for updated and categorised account balances is an example of an output from an accounting information system as it provides relevant and valuable financial information to the user. The other options listed are inputs or settings for the system.

Question 18

The role of the accountant has changed in recent times because:

Accepted Answer

The answer of The role of the accountant has changed...

Question 19

MICR is an input technology used:

Accepted Answer

MICR (Magnetic Ink Character Recognition) is a technology used for processing checks in the banking industry. The characters on the bottom of a check are printed in magnetic ink, allowing for faster and more accurate processing through high-speed sorting machines. MICR technology is not typically used for receipts, invoices or ATM receipts, although it may be used by some organizations to process accounts payable invoices.

Question 20

There are a few source documents that contain accounting data.An accounting clerk enters these data into an accounting program hosted in a computer.The computer displays an analysis report on screen when the accounting program has finished processing the data.
In this scenario,the accounting information system consists of:

Accepted Answer

The accounting information system includes the source documents as the initial input, the accounting clerk to enter the data, the accounting program to process the data, and the computer to display the analysis report. All four components are necessary to create the accounting information system. Therefore, option D is the correct choice.

Quiz 1: Systems Fundamentals