Question 1

An AIS is a system of six interrelated components that interact to achieve a goal.One of these components,which includes both manual and automated activities that involve collecting,processing,and storing data,is known as

Accepted Answer

Procedures and instructions are the component of an AIS that involve the manual and automated activities for collecting, processing, and storing data.

Question 2

A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the

Accepted Answer

A change in the AIS that makes information more easily accessible and widely available within an organization is likely to first influence the organizational culture. This is because the availability of information can change the way employees make decisions and carry out their tasks, leading to a shift in the overall culture of the organization. It can also affect communication and collaboration within the organization, which can further impact the organizational culture.

Question 3

The American Institute of Certified Public Accountants (AICPA)has recognized the importance of AIS and the major impact information technology has on the area of accounting.To recognize individual CPAs who have met educational and experiential requirements in this area,the group formally created the designation known as

Accepted Answer

The AICPA created the Certified Information Technology Professional (CITP) designation to recognize CPAs who have met specific educational and experiential requirements in the area of accounting information systems (AIS) and information technology. Choice A, the Certified Management Accountant, is a separate certification offered by the Institute of Management Accountants. Choice C, the Certified Internal Auditor, is a certification offered by the Institute of Internal Auditors. Choice D, the Certified Data Processing Professional, is an outdated certification that was offered by the Institute of Electrical and Electronics Engineers.

Question 4

An AIS provides value by

Accepted Answer

AIS provides value by improving products or services through information that increases quality and reduces costs, as well as by providing timely and reliable information to decision makers. This helps organizations make better decisions, streamline business processes, and stay competitive in the market. Creating new products is not a direct value provided by an AIS, but it can indirectly result from the insights gained through the system.

Question 5

The process of creating value for customers is the result of nine activities (five primary and four support)that taken together form a

Accepted Answer

The nine activities that create value for customers are known as the value chain. The primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. The support activities include procurement, technology development, human resource management, and infrastructure. Therefore, option A is the correct choice.

Question 6

An AIS must be able to fulfill three important functions in any organization.One such function is the collecting and storing of data about activities performed by the organization.One group that relies on both the adequate collection and transformation of data for decision-making purposes for an organization is

Accepted Answer

Management relies on the collection and transformation of data through the AIS for decision-making purposes within the organization. Interested outsiders, competitors, and the government may also use this information, but management is the primary group that relies on the AIS for data analysis and decision-making.

Question 7

The AIS must include controls to ensure

Accepted Answer

The AIS must include controls for both safety and availability of data and ensuring accuracy of information produced from data. Ensuring marketing initiatives match corporate goals is important but not directly related to controls within the AIS.

Question 8

In value chain analysis,what is the activity of arranging the delivery of products to customers called?

Accepted Answer

Outbound logistics is the activity that involves arranging the delivery of products to customers. This includes activities such as transportation, storage, and distribution. In contrast, inbound logistics refers to the activities involved in receiving, storing, and distributing materials or inputs needed for producing goods or services. Shipping and delivery are specific parts of outbound logistics.

Question 9

The Financial Accounting Standards Board (FASB),in its Statement of Financial Accounting Concepts No.2,has defined accounting as

Accepted Answer

The answer of The Financial Accounting Standards Board (FASB),in its...

Question 10

The objective of the majority of organizations is to provide value to their customers.The activities that support such an objective can be conceptualized as forming a value chain.Within this value chain,logistics plays an important role.Logistics is both inbound and outbound in nature.An example of inbound logistics would consist of

Accepted Answer

Inbound logistics refers to the activities related to receiving, storing, and distributing materials or inputs that are needed to create the organization's products or services. Option D is the only choice that describes these activities. Option A refers to operations, Option B refers to marketing and sales, and Option C refers to customer support, which are not related to inbound logistics.

Question 11

Which of the following is not an example of a common activity in an AIS?

Accepted Answer

Recording of sales calls for marketing purposes is not a common activity in an AIS. The other options (buying and paying for goods and services, selling goods and services and collecting cash, summarizing and reporting results to interested parties) are all common activities in an AIS.

Question 12

Which of the following is a primary activity in the value chain?

Accepted Answer

Marketing and sales are considered a primary activity in the value chain model. Primary activities are directly involved in the creation, sale, maintenance, and support of a product or service. They include inbound logistics, operations, outbound logistics, marketing and sales, and service. Infrastructure, technology, and purchasing are considered support activities, which help to enhance the efficiency and effectiveness of primary activities.

Question 13

The primary focus of an AIS course,as opposed to other IS courses,is on

Accepted Answer

The primary focus of an AIS (Accounting Information Systems) course is to enhance students' understanding of how information technology can improve accounting processes, as opposed to simply teaching them how to use accounting software or preparing financial statements. Therefore, option C is the best choice.

Question 14

Which of the following is not one of the components of an AIS?

Accepted Answer

The answer of Which of the following is not one...

Question 15

The value chain concept is composed of two types of activities known as

Accepted Answer

The value chain concept consists of primary activities that are directly involved in the creation of a product or service, such as inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities, on the other hand, provide the necessary support for the primary activities to take place, such as procurement, technology development, human resource management, and infrastructure. Therefore, the correct choices are primary and support activities.

Question 16

In Chapter 1,shows the factors that influence the design of AIS.The diagram shows a bi-directional arrow between the organizational culture and the AIS.The reason for this two-way interchange between organizational culture and AIS is

Accepted Answer

The bi-directional arrow between organizational culture and AIS in the diagram indicates that they both have an influence on each other. The organization's culture can shape the design of AIS, but the AIS can also impact the communication and information flow within the organization and thus shape the culture. Therefore, option B is the correct answer. Options A, C, and D are incorrect because they do not fully explain the bi-directional relationship between organizational culture and AIS.

Question 17

The primary objective of accounting is to

Accepted Answer

The primary objective of accounting is to provide useful information to decision makers. While internal controls, financial statement preparation, and ensuring profitability are important objectives, they are not the primary focus of accounting.

Question 18

An analysis conducted by the Institute of Management Accountants shows that the most important activities performed by corporate accountants relate to

Accepted Answer

According to the analysis conducted by the Institute of Management Accountants, the most important activities performed by corporate accountants relate to accounting systems and financial reporting. Therefore, option D is the best choice. The other options may also be important, but they do not rank higher than accounting systems and financial reporting in terms of importance.

Question 19

An accounting information system must be able to perform which of the following tasks?

Accepted Answer

An accounting information system must be able to collect transaction data, process transaction data, and provide adequate controls in order to be an effective tool for managing financial information. Without these capabilities, the system would be incomplete and unable to provide the necessary information required for making informed financial decisions.

Question 20

Which activity below would not be considered to be a "top" accountant work activity?

Accepted Answer

Input into future product marketing initiatives would not typically be considered a primary responsibility of an accountant, as it is more closely aligned with sales and marketing functions. The other options listed (process improvement, long-term strategic planning, and computer systems and operations) are all common areas of focus for accountants.

Quiz 1: Accounting Information Systems