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An accounting information system comprises five generic parts. Which of the following
gives an example of an internal control associated with the financing process?
A. Maintaining a good credit rating to facilitate the issuance of bonds and other debt
securities.
B. Evaluating employees in the finance department on a quarterly basis.
C. Both maintaining a good credit rating to facilitate the issuance of bonds and other
debt securities and evaluating employees in the finance department on a quarterly basis.
D. Neither maintaining a good credit rating to facilitate the issuance of bonds and other
debt securities nor evaluating employees in the finance department on a quarterly basis.
According to the table presented in the text, which major form of e-business describes
each of the following?
a. Dell Computers
b. eBay
c. EDGAR
d. Internal Revenue Service
f. Travelocity
Documents in a flowchart should have:
A. A clear origin, but not a clear termination
B. A clear termination, but not a clear origin
C. Both a clear origin and a clear termination
D. Neither a clear origin nor a clear termination
Consider the following case as you respond to the questions:
HSO Corp. designs, manufactures and sells golf carts, scooters and similar vehicles.
When a prospective client contacts one of their seven corporate offices, the office
manager fills out an "intake questionnaire" to determine if HSO can meet the
prospective client's needs. The office manager assembles a team of employees with
expertise in design, production, marketing and accounting; the team reviews the intake
questionnaire and determines if HSO can take on the order. If so, the office manager
prepares a three-page written proposal for the prospective client; the proposal explains
the responsibilities of both HSO and the client, along with a timeline and a budget. The
proposal is forwarded to the prospective client electronically, and the client has ten
calendar days to accept it. If HSO cannot take on the order, the prospective client
receives an automatically generated form letter; if the prospective client does not accept
the proposal within ten calendar days, they receive a different form letter. The new
client remits half of the fee at the time the proposal is accepted, and HSO prepares
weekly progress reports as the project moves forward. The reports are filed in HSO's
database; a hard copy is sent to the client. On a monthly basis, HSO's office manager
prepares a comprehensive status report for all current engagements. One week before
each project is concluded, HSO bills the client for half of the remaining amount due;
after the client has paid all outstanding invoices, HSO completes the work and bills the
client for all remaining amounts. HSO delivers the finished product; the client must pay
the full amount due within 30 days of the final invoice date. If the client pays within 15
days, HSO gives a 3% discount off the amount due.
If HSO maintains a relational database to track proposals and projects, which of the
following would require a junction table?
A. The office manager assembles a team of employees to review the intake
questionnaire.
B. The office manager prepares a three-page written proposal.
C. HSO bills clients multiple times throughout each project.
D. All of these would require a junction table.
STC Corporation's enterprise resource planning system contains a cash payments table,
a cash receipts table and a cash table. The cash payments table is most likely to be part
of which ERP module?
A. CRM
B. HRM
C. SCM
D. Financial management
Consider the following illustration as you respond to the questions:
"Diagram X" is:
A. A context flowchart
B. A context diagram
C. A
D. A database diagram
Jack and Lindsay were choosing a new general ledger system for the company they
own. They decided to use three factors for the evaluation: adaptability, strategic fit and
training. They considered training three times more important than strategic fit; they
considered adaptability twice as important as strategic fit. To keep their evaluation
simple, they assigned a weight of "1" to strategic fit. If software package A had scores
of 5 on adaptability, 8 on strategic fit and 9 on training, its score using the
weighted-rating technique will be:
A. 6.
B. 22.
C. 45.
D. Some other number.
Consider the table below as you answer the questions:
In the table, "E" would most appropriately be replaced with:
A. Name
B. Namespace prefix
C. Data type
D. Some other label
The table is a replica of the one in the chapter's "AIS in the Business World."
The steps in the generalized model of business process management discussed in the
text are listed below. In the space provided, number them in the correct order.A.
Analyze the collected dataB. Optimize the processC. Collect process-related dataD.
Select the process and define its boundariesE. Implement and monitor process
improvements
F. Observe, document and map the process steps and flow\
G. Identify and prioritize potential process improvements
AIS study sometimes involves questions with deterministic answers. Which of the
following questions is most likely to have a deterministic answer?
A. How should a company record the purchase of supplies on account in its AIS?
B. In a corporation with sales of $100,000 annually, what dollar amount should be
considered material?
C. Which processing tools should the AIS use?
D. Has the conceptual framework achieved the FASB's original objective for
developing it?
REA models often are created using the six-step process described in the text; after they
are created, they are often used to create database tables. List and discuss three internal
controls you would recommend implementing in the six-step process and/or the
database creation process.
The Festival Theatre produces twelve plays per year. Patrons can buy tickets for a
single play; alternatively, they can purchase a season pass for either three plays or six
plays. Three-play passes offer a 10% discount from the prices of single tickets; six-play
passes, a 25% discount. Since most patrons live within 30 miles of the theatre, all ticket
sales are done at the box office only. The theatre has an "open seating" plan, so patrons
do not reserve a specific seat at any performance.
Data flow diagrams incorporate four types of symbols. Give one example of each
symbol you would expect to find in a
Rectangle (external entity): patron
Circle (process): Sell tickets
Set of parallel lines (data store): patron database
Arrow (data flow): order information
In your own words, explain the role and purpose of the sales/collection process. Do not
list the steps in the process as part of your response.
Several symbols that might be used in a systems flowchart of the sales/collection
process are listed below.
Indicate which symbol should be used to depict each of the following. Some symbols
may be used more than once; others may not be used at all. 1) Bill of lading 2)
Customer invoice 3) Electronic sales transaction file 4) Employee master file
(computerized) 5) Fill order 6) Grant credit? 7) Manually file by name 8) Manually
prepare items for shipment 9) Start 10) To bank
Bonnie is the owner of Doggie Day Care, a pet-sitting service. Pet owners bring their
dogs to Bonnie's facility, where they are either given private accommodations or are put
in a large pen with other dogs. (Private accommodations are more expensive.) Bonnie
and her employees feed the dogs twice a day; those dogs in private accommodations are
also given two exercise periods per day. Owners pay half the daily fee at the start of the
day, and the other half when they pick up the dog at the end of the day; owners must
also certify that their dogs have had all required vaccinations. As Bonnie's company is a
day care service, no dogs stay the night in her facility. Bonnie accepts cash, checks and
major credit cards in payment. List and discuss three to five risk exposures Bonnie's
company faces. For each risk you identify, explain where it fits within Brown's
taxonomy of risk.
Bumble Beasley runs a medium-sized consulting firm with offices throughout the
United States and Europe. For the past several years, the firm has provided continuing
education to its 500 employees via monthly seminars in various locations. But, travel
costs are becoming prohibitively expensive, leading Bumble to look for other ways to
provide continuing education. Bumble has contacted Training Services Unlimited, an
application service provider that specializes in delivering Web-based training on various
topics to professional services firms.
What type of ASP is Training Services Unlimited? What are the advantages and
disadvantages of using their services? Discuss the nature and value of an SSAE 16 audit
within the context of this case.
YHW Corporation had been a traditional brick-and-mortar business, but was interested
in expanding into e-business practices. Starting with the "identifying" phase, explain
how you would use Steps for Better Thinking to make a recommendation on the
expansion.
