Identify the party below that is not external to the firm.
A) customer
B) vendor
C) government agencies
D) CEO
The relationship between the Acquire Services and Disburse Cash events is modeled as
________ to reflect the common situation in which the organization obtains the use of a
specific service for a particular period of time and makes a payment each month for the
services it acquired and used that month.
A) 1:1
B) 1:N
C) M:N
D) 1:M.
Which of the following user groups generally receive information produced by the
general ledger and reporting system?
A) internal users
B) external users
C) inquiry processing by internal or external users
D) all of the above
When updating the general ledger, sales, purchases, and production are examples of
________ entries, and issuance or retirement of debt and the purchase or sale of
investment securities are examples of ________ entries.
A) adjusting; controller originated
B) accounting subsystem; treasurer originated
C) adjusting; special journal
D) controller generated; special journal
________ is a method of comparing systems by executing an input, processing, and
output task on different computer systems and evaluating the results.
A) Benchmarking
B) Point scoring
C) Prototyping
D) Requirement costing
Spyware that pops banner ads on a monitor, then collects information about the users
web-surfing and spending habits is an example of
A) a Trojan horse.
B) scareware.
C) adware.
D) a keylogger.
“Push manufacturing” is also known as
A) manufacturing resource planning (MRP).
B) just-in-time manufacturing system (JIT).
C) the economic order quantity (EOQ) system.
D) ahead-of-time production implementation (ATPI).
Which of the following duties could be performed by the same individual without
violating segregation of duties controls?
A) Approving accounting software change requests and testing production scheduling
software changes.
B) Programming new code for accounting software and testing accounting software
upgrades.
C) Approving software changes and implementing the upgraded software.
D) Managing accounts payable function and revising code for accounting software to
more efficiently process discount due dates on vendor invoices.
Megan has purchased a brand new laptop about three months ago. Recently, she feels
that her computer is operating much more slowly and sluggishly than before. Since
purchasing the computer, Megan had been accessing the Internet and had installed a
variety of free software. The problem is mostly likely to be
A) a zero-day attack.
B) a virus.
C) a spoof.
D) a sluggishness infection.
Which documentation technique would not depict the type of storage medium used
(such as a flash drive or a hard drive) to physically store data?
A) system flowchart
B) data flow diagram
C) business process diagram
D) internal control flowchart
From the choices below, identify the attribute below that would make the best primary
key.
A) Product number.
B) Date of first purchase.
C) Postal code.
D) Customer telephone number.
A ________ determines if all required data items have been entered.
A) completeness check
B) field check
C) limit check
D) range check
Upon acquiring a new computer operating system, management at Berryhill worried
that computer virus might cripple the company’s operation. Despite the concern,
management did not think that the risk was high enough to justify the purchase of an
anti-virus software. Berryhill chose to ________ the risk of being crippled by computer
virus.
A) reduce
B) share
C) avoid
D) accept
Which of the following statements below shows the contrast between data and
information?
A) Data is the primary output of an accounting information system.
B) Information is the primary output of an accounting information system.
C) Data is more useful in decision making than information.
D) Data and information are the same.
A change in the AIS that makes information more easily accessible and widely available
within an organization is most likely to first influence the
A) organizational culture.
B) customer base.
C) external financial statement users.
D) production activity.
A flowchart that depicts the relationships among the input, processing, and output of an
AIS is
A) an internal control flowchart.
B) a document flowchart.
C) a system flowchart.
D) a program flowchart.
________ is/are an example of a preventive control.
A) Emergency response teams
B) Encryption
C) Log analysis
D) Intrusion detection
While not required, connecting the Time Used entity to specific business events enables
A) evaluating performance at a very detailed level.
B) general performance evaluation.
C) evaluating the quality of the services received.
D) determining productivity of employees, such as how many customer calls were
made, or how many sales were made.
All of the following are reasons that implementing a new ERP may fail except
A) employees may resist using the ERP system.
B) ERPs can take years to fully implement.
C) employees may refuse to share sensitive information with different departments.
D) ERPs may require procedures and reports to be standardized across business units.
A ________ is a data entry control that compares the ID number in transaction data to a
master file to verify that the ID number exists.
A) reasonableness test
B) user review
C) data matching
D) validity check
The transaction cycle approach yields efficiencies when processing of a large number of
transactions because
A) a large number of transactions within a given cycle can be categorized into a
relatively small number of distinct types.
B) transaction cycles are easier to computerize.
C) the transaction cycle approach represents the natural order of business.
D) transaction cycles are easy to understand.
The ________ is the production cycle document that specifies the quantity of each
product to be produced and when production should begin.
A) receiving report
B) bill of lading
C) master production schedule
D) operations list
When comparing REA diagrams used to design an AIS with a traditionally designed
AIS,
A) traditional AIS information, such as journals and ledgers no longer exist.
B) similar information is present as in a traditional AIS, but stored in a different format.
C) queries are used to input data into the AIS.
D) an REA designed AIS cannot recreate a traditional journal.
One fraudulent scheme covers up a theft by creating cash through the transfer of money
between banks. This is known as
A) lapping.
B) misappropriation of assets.
C) kiting.
D) concealment.
What information is necessary to create the master production schedule?
A) engineering department specifications and inventory levels
B) engineering department specifications and sales forecasts
C) special orders information and engineering department specifications
D) sales forecasts, special orders information, and inventory levels
The management at Barks-a-Million is considering a new inventory control system. The
current system is inadequate because it frequently causes stockouts that interrupt
production and lead to excess stock of other materials — resulting in markdowns and
high carrying costs. The new system, which will focus on forecasting demand for their
products, will likely employ
A) a just-in-time inventory system.
B) the economic order quantity.
C) materials requirements planning.
D) a reorder point.
Which of the following is a control related to design and use of documents and records?
A) Locking blank checks in a drawer or safe.
B) Sequentially prenumbering sales invoices.
C) Reconciling the bank statement to the general ledger.
D) Comparing physical inventory counts with perpetual inventory records.
It is important that ________ for data storage purposes.
A) all data is in compatible format
B) there is easy access to the system
C) a printout of the data dictionary is available
D) copies of necessary reports are available
Identify one aspect of systems reliability that is not a source of concern with regards to
a public cloud.
A) confidentiality
B) privacy
C) efficiency
D) availability
What is a potential threat to the specific activity of payroll processing?
A) Hiring unqualified employees.
B) Poor system performance.
C) Violations of employment laws.
D) Unauthorized changes to the payroll master file.
When the information is brief and well defined, which is the best data-gathering
approach to use?
A) A questionnaire.
B) An interview.
C) Observation by the analyst.
D) System documentation.
In an integrated REA diagram, every event must be linked to
A) at least two resources.
B) at least two agents.
C) at least one other event.
D) at least two other events.
Identify the corrective control below.
A) Reconciling the bank statement to the cash control account.
B) Approving customer credit prior to approving a sales order.
C) Maintaining frequent backup records to prevent loss of data.
D) Counting inventory on hand and comparing counts to the perpetual inventory
records.
The primary key for 1:1 relationship tables
A) is a single attribute.
B) always consists of two attributes.
C) is the primary key of the most important entity linked to that relationship.
D) does not exist. Many-to-many relationship tables only use foreign keys.