Accounting Information Systems, 11e (Bodnar/Hopwood)
Chapter 1 Accounting Information Systems: An Overview
1) A system is a collection of related resources designed to help a company achieve specified
objectives.
2) Accounting information systems are designed to gather and utilize information which may
cost more to provide than it is worth to the user.
3) The basic goal of accounting information systems is to convert financial data into information.
4) Quick-response systems are essential to the total quality performance movement in business.
5) All data processed and information stored in an accounting information system are mandatory
for financial reporting purposes.
6) A typical CRM contains one common database in which all departments with customer
contact can access and update.
7) A company can use QR codes to provide a convenient way to direct customers to its Web site
by embedding them in advertising, such as magazines or in-store displays.
8) An extended enterprise brings suppliers and customers together in order to meet customer
demand while minimizing supplier costs.
9) Procurement and firm infrastructure are examples of primary business processes.
10) Good documentation means that records should be maintained by all parties involved in a
transaction.
11) Some organizations that use computers to process transactional data must have an
information system function.
12) The operations function allows specialization in areas such as operating systems and
software and communications technology.
13) Cloud computing describes the increasing trend for data processing capabilities to be
provided as a service via the Internet.
14) Most batch processing environments are JIT environments.
15) XBRL is a language that facilitates the exchange of financial statements over the Internet.
16) External users of accounting information include stockholders, investors, creditors,
government agencies, customers and vendors, competitors, labor unions, and the public at large.
17) A decision support system (DSS) is tailored to the strategic information needs of top-level
management.
18) The AIS benefits of information technology include automation, information organization,
and communication.
19) AIS application architecture currently focuses on automating the traditional accounting
cycle.
20) MRP and MRP II software was created to aid in Supply Chain Management (SCM).
21) In CIM systems, computers control management-designed parts of the manufacturing
process.
22) Flexible manufacturing systems can be reprogrammed to produce entirely different products.
23) The process management approach aids in the management and improvement of a company’s
processes in order to increase customer satisfaction while ignoring the company’s cost structure.
24) ERPs should reduce data duplication, increase communication between functional areas, and
reduce complications of software updates.
25) ERPs can either be industry-specific or based around “best practices” of various sized
companies.
26) ERPs are inexpensive and relatively easy to implement.
27) ERP II adds an Enterprise Application Suite (EAS) to aid in the communication between
functional areas.
28) Business processes are always triggered by some economic event, and all have clearly
defined starting and ending points.
29) A key characteristic and benefit of business processes is that they are always limited to one
functional area of the information system.
30) Analyzing a company’s value chain aids in the identification of a company’s competitive
advantages.
31) Operational transaction cycles have traditionally grouped activities of a business into six
common operational processes.
32) Transactions are used by auditors to verify account balances and internal controls.
33) The internal audit function and the accounting functions should not be segregated in order to
increase a company’s internal control.
34) The director of internal auditing should report directly to the controller of the company.
35) The treasurer is responsible for the budgeting and tax planning aspects of a business.
36) The essence of cloud computing is that data storage is maintained by the end-user.
37) A steering committee consists of high-level members of user functions such as
manufacturing and marketing, as well as the head of the information system function and several
of his or her staff.
38) An information center is a support facility for end users in an organization.
39) DBMS is the hands-on use of computers by end users.
40) Quick Response code is a three-dimensional bar code.
41) EDI is a key component to quick-response technology systems.
42) The philosophy that one should do the right thing the first time is better known as TQM or
TQP.
43) RFID tags are used for tracking objects within a quick-response system.
44) Only active RFID tags transmit signals containing digital information to receivers.
45) Lean manufacturing focuses on eliminating waste from the entire value chain.
46) A just-in-time manufacturing system is one form of lean manufacturing.
47) Microsoft sponsors the Web TrustTM seal of approval to certain Web sites that meet their
security and integrity criteria.
48) Electronic data interchange (EDI) is the direct computer-to-end-user exchange of business
documents via a communications network.
49) ANSI X.12 is a public EDI standard.
50) The SEC requires that all companies must file their financial reports electronically using
XBRL.
51) FedWire is a retail EFT system used for telephone wire transfers and payments.
52) E-waste refers to dollars spent on unsuccessful implementations and technologies.
53) Green IT states system design should include a plan for recycling and reusing system
components.
54) A systems development project consists of ________ general phases.
55) The purpose of the ________ approach is to assist in the orderly development of effective
systems.
56) Many companies prefer business process ________ because they find it more cost-effective
than designing their own system from the ground up.
57) A philosophy of ________ design fosters a set of attitudes and an approach to systems
development that consciously considers the organizational context.
58) Middle management uses ________ information in an organization.
59) The source for most information used by lower-level managers is largely ________.
60) There are ________ major categories of information systems within an organization.
61) A(n) ________ information system is tailored to the strategic information needs of top-level
management.
62) A(n) ________ ________ ________ system manages all contact with customers.
63) A(n) ________ ________ ________ system encompasses the planning and management of
all activities involved in sourcing, procurement, conversion, and logistics management activities.
64) A group of loosely connected companies that work together to maximize the value of their
economic outputs is a(n) ________ ________.
65) The IT benefits for AISs are ________, ________, and ________.
66) Application ________ involves the process of ensuring the suite of organization’s
applications work together in order to meet organizational goals and objectives.
67) ________ software assists management in managing inventories and scheduling production.
68) In ________ ________ ________, computers take control of the entire production process
(CIM) but also can be reprogrammed so the same processes can produce entirely different
products.
69) The ________ management approach involves the application of knowledge, skills, tools,
techniques and systems to manage and improve organizational processes to better meet
customers’ needs and maximize profitability.
70) The ISO 9001 is a(n) ________-management standard published by the International
Standards Organization.
71) ________ ________ ________ combines functional information systems in a single software
package and a single database.
72) ERP II adds collaborative ________ to ERP.
73) Enterprise ________ suite uses a group of individual packages that work with each other on
a Web browser as opposed to one large ERP software package.
74) The linking of applications in a suite is facilitated through a(n) ________ ________
________.
75) A business process is an interrelated set of tasks that involve data, ________ units, and a
logical time sequence.
76) A simple way of viewing the company’s activities in a manner suited to analyzing its
competitive advantages is known as the ________ ________.
77) The controller is the executive in charge of ________ activities of the organization, while the
treasurer supervises the ________ activities.
78) Events related to the acquisition of goods and services from other entities and the settlement
of related obligations are in the ________ cycle; events related to the transformation of resources
into goods and services are in the ________ cycle.
79) A common violation of the ________ principle is the delegation of both accounting and
financial responsibilities to the same individual or department.
80) The ________ is the head of the information systems function in an organization.
81) A(n) ________ committee is an advisory group who can influence the policies, budget, and
planning of information services within an organization.
82) Radio frequency identification tags (RFID) can be either ________, ________, or ________.
83) The main focus of ________ manufacturing is eliminating waste and improving production
flow.
84) The three major categories of waste under the original Toyota Production System (TPS) are
________, ________, and ________.
85) Green IT is concerned with reducing ________ through recycling and reusing electronic
products rather than discarding these products.
86) A just-in-time (JIT) environment is characterized by activities occurring in a(n) ________
________ environment.
87) A(n) ________ ________ ________ is a type of information system that supports nonroutine
needs for information, while ________ systems support routine, nonrecurring information needs.
88) ________ is an automated clearing house system used for the clearing of Eurodollar
payments between U.S. and non-U.S. financial institutions.
89) The term that best describes an information system that is tailored to the strategic
information needs of top-level management is a(n)
A) accounting information system.
B) expert system.
C) executive information system.
D) EDP system.
90) ________ are the only physical items that are absolutely required for a user of cloud
computing.
A) A data storage unit and an Internet connection
B) A Web browser and a RFID card
C) A QR reader and an Internet connection
D) A Web browser and an Internet connection
91) Which of the following is not a common transaction processing cycle found in business
organizations?
A) Expenditure cycle
B) Accounting cycle
C) Production cycle
D) Revenue cycle
92) Which of the following transaction processing cycles concerns events related to the
distribution of goods and services to other organizations and the collection of related payments?
A) Production
B) Expenditure
C) Financial reporting
D) Revenue
93) The transaction processing cycle that is concerned with the events related to the
transformation of resources into goods and services is
A) production.
B) revenue.
C) financial reporting.
D) expenditure.
94) A system that manages all contacts with customers is a ________ system.
A) customer value chain
B) customer relation management
C) customer supply chain management
D) customer requirements planning
95) A(n) ________ is a group of loosely connected companies that work together to maximize
the value of their economic outputs.
A) extended enterprise
B) enterprise resource planners
C) enterprise suite
D) value chain consortium
96) A(n) ________ system encompasses the planning and management of all activities involved
in sourcing, procurement, conversion, and logistics management activities.
A) CRM
B) SCM
C) DS
D) ES
97) The fundamental benefits of information technology for AISs include the following except
A) communication.
B) information organization.
C) systems development.
D) automation.
98) ________ involves the process of ensuring the suite of organization’s applications work
together as a composite application according to the goals and objectives of the organization.
A) Applications requirements planning
B) Enterprise application structure
C) Enterprise resource planning
D) Applications architecture
99) Material requirements planning software assists management in managing
A) inventories.
B) overhead.
C) scheduling production.
D) both inventories and scheduling production.
100) The international quality-management standard credited for promoting the process
management approach is the
A) Six Sigma.
B) ISA-95.
C) ISO 9001.
D) ISA-Y2K.
101) Which systems permit the reprogramming of computers to produce entirely different
products in the same manufacturing facility with the same equipment?
A) MRP and MRP II
B) CIMs and FMSs
C) ESs and FMSs
D) ERPs and MRPs
102) A complete systems solution involving one software package and one database is referred
to as
A) ERP.
B) MRP.
C) SCM.
D) DSS.
103) The following are benefits of an ERP except for the ability
A) to eliminate data duplication and redundancy.
B) to standardize data formats.
C) to easily share data from various departments.
D) to easily customize software to meet company needs.
104) Groups of organizations working together to create new products, new process methods,
and/or human capital intelligence is referred to as a(n)
A) ERP.
B) e-commerce.
C) collaborative commerce.
D) application consortium.
105) A group of individual software applications designed to run in Web browsers and facilitated
through a service oriented architecture (SOA) is referred to as a(n)
A) ERP II.
B) application architecture.
C) value chain application suite.
D) enterprise application suite.
106) What language facilitates business-to-business commerce through the extended value chain,
which includes both manufacturers and their suppliers?
A) VCML
B) XBRL
C) HTML
D) COBOL
107) The staff position which would generally report to the treasurer rather than to the controller
is
A) budgeting.
B) accounts payable.
C) credit manager.
D) cost accounting.
108) The high-level executive who supervises accounting functions such as budgeting, billing,
and payroll is known as the
A) treasurer.
B) controller.
C) chief information officer.
D) chief internal auditor.
109) The three general phases of systems development projects and the order in which they
occur are
A) systems design, systems implementation, and systems analysis.
B) systems design, systems implementation, and systems auditing.
C) systems design, systems analysis, and systems programming.
D) systems analysis, systems design, and systems implementation.