5) The ________ is a set of programs or instructions that drive the computer to perform the work desired.
A) network
B) hardware
C) software
D) router
6) Which of the following is an example of hardware?
A) monitor
B) malware
C) firewall
D) operating system
7) List and briefly discuss the two basic components of a computerized accounting information system.
8) Two popular entry-level software packages for accounting information systems are QuickBooks and
Excel.
9) Entry-level software packages for accounting information systems are difficult to use and require a
complete knowledge of GAAP.
10) Which of the following is an entry-level software package for accounting information systems?
A) Microsoft Word
B) QuickBooks
C) Cloud Computing
D) Oracle®
11) Entry-level accounting software ________.
A) can handle advanced processes and transactions
B) is an affordable system that is difficult to use
C) allows businesses to enter sales of services and merchandise inventory, record expenses, and produce
financial statements
D) integrates all of a company‘s functions, departments, and data into a single system
12) Enterprise resource planning systems are software systems that can integrate all of a company’s
functions, departments, and data into a single system.
13) A disadvantage of a typical enterprise resource planning system is that it cannot be offered through
cloud computing.
14) In cloud computing, the accounting software and data are stored on the company’s server instead of a
third-party server.
15) An enterprise resource planning (ERP) is a ________.
A) hardware system that controls the access of employees to different levels of production in a firm
B) software system used by small companies to record revenue and expenses
C) hardware system of electronic linkages that allows different computers to share the same information
D) software system that can integrate all of a company‘s functions, departments, and data into a single
system
16) Which of the following is an advantage of enterprise resource planning (ERP) systems?
A) It is inexpensive to implement.
B) It provides financial benefits only to small corporations.
C) It replaces separate software systems, such as sales and payroll.
D) Its implementation requires a small commitment of time and people.
17) Which of the following is a disadvantage of enterprise resource planning (ERP) systems?
A) It is not beneficial to large corporations.
B) It is not supported by cloud computing.
C) Its implementation requires a large commitment of time and people.
D) It uses separate software systems, such as sales and payroll.
18) ________ refers to purchasing software and data storage from a third party.
A) Cloud computing
B) Resource planning
C) Networking
D) Entry-level software
19) Define enterprise resource planning (ERP) systems and state one advantage and one disadvantage of
ERP systems.
20) When using a computerized accounting information system, transactions do not need to be recorded
in a debit and credit format.
21) When using a computerized accounting information system, sales transactions are only recorded
when the cash is received.
22) When using QuickBooks, the Vendors tab is used to record a bill that has been received.
23) When using QuickBooks, the software automatically transfers the amounts from the general ledger to
Excel. The accountant can then prepare the financial statements.
24) In a typical computerized accounting information system, ________.
A) transactions must be recorded in debit and credit format
B) the software automatically knows to record a debit or a credit
C) transactions are posted manually
D) spreadsheets must be used to produce financial statements
25) Which of the following activities is handled by selecting the “Make payment” action of QuickBooks?
A) entering sales receipts
B) selecting bills to be paid
C) recording a bill that has been received
D) recording customer payments
26) Which of the following is a benefit of using a computerized accounting information system?
A) The software can accurately measure the intrinsic value of the firm using the built-in simulation
techniques.
B) There is no need to review the financial statements for accuracy.
C) The software is easy to use and thus no training or financial statement review is necessary.
D) The software automatically transfers the amounts from the general ledger to the financial statements.
27) Which of the following transactions is recorded by selecting the “Receive payment” action of
QuickBooks?
A) making electricity bill payments
B) selling merchandise inventory on account
C) collecting an account receivable from a customer
D) paying interest to bondholders