110) Quick Response reader application can typically ________.
A) open a Web site
B) display a video
C) display text
D) All of these answers are correct.
111) When information levels within an organization are viewed as a pyramid, strategic
information is used primarily by
A) lower-level management.
B) top-level management.
C) middle management.
D) lower-level and middle management.
112) From an organization’s viewpoint, a distinction can be drawn between the following two
broad classes of accounting information.
A) Historical and future
B) Strategic and operational
C) Internal and external
D) Mandatory and discretionary
113) Which item listed below is not considered a primary business process?
A) Marketing
B) Outbound sales logistics
C) Technology development
D) Service
114) Which of the following is not an objective of internal control as a process?
A) Reliability of financial reporting
B) Accuracy of accounting information
C) Compliance with applicable laws and regulations
D) Effectiveness and efficiency of operations
115) The preparation of forecasts and analyses used by management in planning and controlling
the operations of the organization is generally a(n)
A) budgeting function.
B) tax planning function.
C) accounting manager function.
D) treasurer function.
116) The internal audit function within an organization should be considered a(n)
A) activity supervised by the controller.
B) sub function of the treasurer.
C) independent appraisal activity.
D) optional service provided by the firm’s external auditors.
117) The area of functional specialization which is responsible for the design, coding, testing,
and debugging of computer programs is the
A) technical support function.
B) user function.
C) operations function.
D) programming function.
118) Information retrieval from the organization’s database using the query language feature of
DBMS is a common
A) programming function.
B) technical support function.
C) EUC application.
D) ES application.
119) The technological philosophy that emphasizes “customer satisfaction” to the point of
“customer obsession” is known as
A) TQP.
B) EDI.
C) TQM.
D) TQP and TQM.
120) Which of the following is not a consumer benefit of Web commerce?
A) There is no waiting for a salesperson or product information.
B) There is automatic electronic encoding of transaction data.
C) Web-based transactions are encrypted providing security.
D) Intelligent Web-based software can provide answers to complicated questions.
121) Which of the following is not a benefit of electronic data interchange (EDI)?
A) Electronic mail messages are interpreted by humans.
B) EDI eliminates paper.
C) EDI saves time.
D) EDI may allow for EFT payments to vendor accounts.
122) Which of the statements below is false regarding extensible business reporting language
(XBRL)?
A) Many experts feel that XBRL will replace EDI.
B) XBRL is in effect a narrower standard than the ANSI X.12 standard for EDI.
C) The SEC allows use of the XBRL format.
D) XBRL facilitates the exchange of business documents over the Internet.
123) The Clearing House Automated Payment System is also known as
A) FedWire.
B) CHIPS.
C) CHAPS.
D) EFT.
124) Which of the steps below is not part of the systems approach process?
A) Creation of alternatives
B) Statement of system objective(s)
C) Systems evaluation
D) All of the answers are steps in the systems approach process.
125) Which of the following is not one of the criteria of the design specification step of the
systems approach to design?
A) Using a team approach in many cases
B) Sufficient detailed specifications for implementation process
C) Identification of system inputs
D) Strategies for producing system outputs
126) Which of the following is not an objective of a design group or project team charged with
creating and implementing a new information system?
A) Securing funding for a new information system
B) Identifying needs to be satisfied by a new system
C) Developing technical specifications for a new system
D) Implementation of a new system
127) Which of the following is not an objective of internal control?
A) Reliability of financial reporting
B) Effectiveness and efficiency of operations
C) Relevance of financial statements
D) Compliance with applicable laws and regulations
128) An important quick response technology used to track objects using radio signals is called
A) sonic tagging.
B) radio frequency identification.
C) object frequency tagging.
D) frequency waves identification.
129) RFID tags include all of the following except
A) active tags.
B) passive tags.
C) inactive tags.
D) semi-passive tags.
130) Which of the following is not associated with lean manufacturing?
A) CRM
B) Toyota Production System
C) Eliminating waste
D) JIT
131) The following are EDI standards except
A) ANSI X.12.
B) AS2.
C) eBXML.
D) ISO-95.
132) Green IT is concerned with
A) reducing e-waste by reusing and or refurbishing IT products.
B) using less fuel in the creation of IT systems.
C) designing more efficient systems in order to reduce necessary storage requirements.
D) Green IT is concerned with all of the above.
133) The exchange of business documents such as purchase orders and invoices in an electronic
format between the computers of separate organizations is known as
A) e-mail.
B) electronic data interchange.
C) computer-integrated information system.
D) electronic document exchange.
134) Which of the following specialized information systems would be the most useful in
providing information for routine decisions?
A) Decision support system
B) Expert system
C) Executive information system
D) Accounting information system
135) Which of the following is not an example of good internal control?
A) Having adequate records
B) Being sure that everyone clearly understands his or her own responsibilities
C) Making sure that each department is responsible for keeping its own accounting records
D) Having periodic physical checks (or counts) of the inventory
136) Which officer, department, or division within an organization is responsible for monitoring
the other departments to ensure that the organization’s policies and procedures are being carried
out?
A) Internal auditing
B) Vice President for Administration
C) Chief Information Officer
D) A steering committee
137) Which of the following is used to ensure a high degree of user involvement in the control of
an information systems department?
A) Maintenance programmers
B) Operations manager
C) Technical support committee
D) Steering committee
138) Which of the following is not a merchant benefit of Web commerce?
A) Cost savings through automated ordering
B) Worldwide availability of the company’s products
C) No waiting in line for a salesperson or to obtain product information
D) Low overhead
139) A company known for its use of blueprints in systems design for clients is
A) SAM.
B) SAP.
C) SAS.
D) SAR.
140) When should the actual users of a system be involved when a new system is being
developed?
A) As soon as the new system is implemented
B) After all unexpected bugs and glitches have been found and corrected
C) Only after all employees have been thoroughly trained to use the new system
D) Throughout the design of the new system
141) Which of the following information characteristics pertains to the situation when a lower-
level manager receives a well-defined, narrowly focused report, while a top-level manager
receives a report covering more general topics?
A) Level of aggregation
B) Time horizon
C) Scope
D) Required accuracy
142) When a management report is discretionary rather than mandatory, the primary
consideration should be
A) that there are benefits to be obtained by producing the report.
B) that the benefits obtained by producing the report exceed the cost of its production.
C) to minimize the cost of producing the report while maintaining minimum standards of
usefulness.
D) to minimize the cost of producing the report while maintaining minimum standards of
reliability and accuracy.
143) Which of the following groups would not be considered external users of the company’s
information?
A) Factory supervisors
B) Creditors
C) Investors
D) Labor unions
144) Internal users of reports from a company’s information system might include all of the
following except its
A) chief executive officer.
B) stockholders.
C) payroll department.
D) lower-level managers.
145) A report prepared exclusively for use by this group is almost always mandatory.
A) The company’s labor union
B) The Internal Revenue Service
C) The company’s main bank
D) The company’s main supplier of its raw materials
146) In the systems approach to administering a systems project, which of the following phases
should be performed first?
A) Creating alternatives
B) Analyzing the system
C) Implementing the system
D) Stating the system’s objectives
147) A way of viewing company activities that breaks the activities down into components that
can be individually optimized in terms of goals and strategies is known as the
A) primary business process.
B) accounting information system.
C) value chain.
D) internal control process.
148) Software that integrates business processes on a company-wide basis is called
A) enterprise resource planning.
B) executive information systems.
C) expert systems.
D) manufacturing information systems.
149) An accounting information system plays a key role in the internal control process, thereby
helping management with its major responsibility of
A) managing the internal audit function.
B) stewardship.
C) global-level marketing.
D) managing the production cycle.
150) Which statement regarding internal control is false?
A) Documentation is not a critical component of an internal control system.
B) Ideally, a task can be divided to make job functions as natural checks on each other.
C) A specific person should ideally be responsible for each task or job function.
D) All records should allow cross-referencing from one area of responsibility to another.
151) An organization’s internal control process consists of how many elements?
A) Six
B) Four
C) Five
D) Seven
152) When viewing a typical organization chart, the individual responsible for the finances of the
business is the
A) controller.
B) president.
C) vice president.
D) treasurer.
153) Presented below is a list of terms relating to accounting information systems, followed by
definitions of those terms.
Required: Match the letter next to each definition with the appropriate term. Each answer will be
used only once.
________ 1. Chief Information Officer
________ 2. Treasurer
________ 3. Transaction processing cycle
________ 4. Technical support function
________ 5. Computer-integrated manufacturing
________ 6. End user
________ 7. Controller
________ 8. Expert system
________ 9. Systems analysis
________ 10. Segregation of duties
A. A common division or section within the information systems department
B. The individual who supervises accounting functions
C. An example of an internal control
D. Individual who has overall responsibility for the information system function
E. The first step in the systems development approach
F. The department which has supervision over cash and credit activities
G. A type of information system which requires an inference engine to make a decision for the
user
H. One or more applications systems consisting of logically related transactions
I. An integrated approach to the use of information technology in manufacturing systems
J. A department or section of an organization that uses the organization’s computer data
processing other than the information systems department
154) Presented below is a list of terms relating to accounting information systems, followed by
definitions of those terms.
Required: Match the letter next to each definition with the appropriate term. Each answer will be
used only once.
________ 1. XBRL
________ 2. Telecommuting
________ 3. JIT
________ 4. Total quality management
________ 5. OA
________ 6. Primary business processes
________ 7. Value chain
________ 8. Web Trust
________ 9. DSS
________ 10. Executive information system
A. A way of viewing the company’s activities in a manner suited to analyzing competitive
advantages
B. Allows employees to work at home and still have direct interaction with the organization’s
information systems
C. An information system tailored to the information needs of top management
D. A synonym for the acronym TQP
E. A universal formatting language used for exchanging business documents via the Internet
F. The use of electronic technology in the office or workplace
G. Data are processed into a decision-making format for the end user
H. A continuous flow environment that seeks to minimize or totally eliminate inventories
I. Involves inbound and outbound logistics, operations, marketing, and service
J. Seal of approval from the AICPA certifying that a Web site has met certain standards
155) Explain what is meant by “internal control,” and give two examples.
156) Explain the three fundamental benefits of information technology to accounting information
systems.
157) Give four components that may be found in an organization’s quick-response system and
briefly describe each component.
158) Briefly describe and distinguish technical support and user support.
159) Discuss the internal audit function within an organization.
160) Discuss the nature of systems development.
161) Describe an enterprise resource planning system to include the pros and cons of this type of
system.