The purpose of the conversion process is to transform material, labor and overhead into
a finished product. To accomplish that purpose, organizations can use one of three
systems. Which of the following pairs includes examples of products that would use
different systems?
A. Decks of playing cards, compact discs
B. Compact discs, made-to-order smoothies
C. Custom-built homes, original works of art
D. Plastic bottles, aluminum cans
A modular information technology designed to provide comprehensive information
about a company is called:
A. An enterprise resource planning system.
B. A spreadsheet.
C. A risk management plan.
D. The accounting cycle.
The principles of normalization can be useful in:
A. Designing an accounting information system.
B. Completing a systems audit.
C. Both designing an accounting information system and completing a systems audit.
D. Neither designing an accounting information system nor completing a systems audit.
Liam has developed a good process for safeguarding his company’s information
technology assets. He has talked about his methodology with some of his co-workers
and has created a schedule for applying his process to various kinds of information
technology assets. Which of the following phrases best indicates the process is
repeatable, as the term is defined in the capability maturity model?
A. A good process
B. Talked with some of his co-workers
C. Created a schedule
D. Various kinds of information technology assets
Consider the following partially completed flowchart as you respond to the questions:
In the partial flowchart, “E” should be replaced with a ___ symbol labeled ___.
A. predefined process; interview finalists
B. predefined process; choose finalists to interview
C. decision; interview finalists
D. decision; choose finalists to interview
The chapter discussed Big Data, including five broad types of Big Data identified by
Soares. In your own words, define “Big Data.” Give three examples of Big Data, and
indicate which of Soares’ categories applies to each.
The acquisition/payment process helps an organization create value for its stakeholders.
Which of the following authors developed a model that assists in understanding value
creation?
A. Porter
B. Vroom
C. Pacioli
D. Gates
Communicating information to external decision makers is accomplished through ___
as part of the process of ___.
A. Financial statements; bookkeeping
B. Financial statements; accounting
C. Journal entries; bookkeeping
D. Journal entries; accounting
Consider the following statements as you respond to the question:
i. Ask managers to think of one hundred uses for a brick, other than for building things.
ii. Assess the educational background and organizational experience of employees.
iii. Conduct a one-day seminar on how business processes can create value in the
marketplace.
iv. Encourage managers to suggest ideas, even if they are impractical.
v. Hold weekly meetings to update interested parties on the BPM project; ensure at least
one member of top management attends each meeting.
vi. Ignore opinions and insights from people not directly involved with a business
process.
The text discussed seven basic principles of business process management. Which
statements in the list above are related to the same basic principle?
A. I and IV
B. II and VI
C. III and V
D. I, IV and VI
Refer to the following case as you respond to the question:
The Celebration Theatre is a small, independent theatre that puts on 12 plays per year.
30 days before the start of each calendar quarter, Celebration prepares advertising for
the productions in the upcoming quarter. They advertise on their web site, via e-mail to
their season subscribers and via direct mail and brochures to others.
Patrons can buy tickets for a single play; alternatively, they can subscribe to all three
plays each quarter. Quarterly subscriptions offer a 25% discount from the prices of
single tickets. Patrons may purchase tickets over the phone, at the box office or via the
theatre’s web site. All tickets are held at the box office where they can be picked up as
early as one week prior to the performance. The theatre has an “open seating” plan, so
patrons do not reserve a specific seat at any performance.
If tickets are purchased in person at the box office, non-subscribers may pay with cash
or a major credit card; subscribers can pay with cash, major credit card or check. All
tickets purchased over the phone or via the web site must be paid for with a major credit
card. Celebration maintains an electronic database to track all ticket sales; paper tickets
are printed at least ten days prior to a performance.
Any paid tickets that are not claimed at least thirty minutes prior to the performance are
sold on a “first-come, first-serve” basis at a 50% discount.
Refer to the previously presented set of flowcharting symbols labeled Symbol A
through Symbol J. In a systems flowchart of the Celebration Theatre case, which of the
following is most likely to appear immediately after ‘start?”
A. Symbol A
B. Symbol I
C. Either Symbol A or Symbol I
D. Some other symbol
Consider the following flowchart symbols as necessary as you respond to the remaining
questions in this chapter:
According to ANSI, flowchart symbols can be divided into four main groups. Which
symbols belong to the “file” group?
A. Symbols H and J
B. Symbols A and H
C. Symbols A and J
D. None of these. “File” is not one of the groups.
A properly prepared systems flowchart can be used to:
A. Evaluate internal controls in the AIS.
B. Determine which processes are completed manually in the AIS.
C. Both evaluate internal controls in the AIS and determine which processes are
completed manually in the AIS.
D. Neither evaluate internal controls in the AIS nor determine which processes are
completed manually in the AIS.
Pam is a licensed CPA; her husband, Greg, is a major shareholder in a corporation
audited by Pam’s firm. If Pam is involved in the audit of that firm:
A. She will likely be in violation of at least one of the “general” GAAS.
B. She will likely be in violation of at least one of the “field work” GAAS.
C. She will likely be in violation of at least one of the “reporting” GAAS.
D. Its stock price will change due to the related party transaction.
Raul was leading a team charged with developing a new system for budgeting. At what
point will the system be ready for the fifth step in the systems development life cycle?
A. Never, since the SDLC cannot be used in this situation
B. Immediately after the team is formed
C. After the team has created Excel templates for the budgeting process
D. One month before the system is implemented
A Place to Rest is a retreat center located just outside Los Angeles; the center’s
management is interested in developing an internal control plan using the COSO
framework. For each item listed below, indicate the framework element that most
clearly applies; you must use each element of the COSO framework exactly one time.
a. Conducting focus groups where employees talk about problems they observe at the
center
b. Designating a three-person committee to review and update the plan annually
c. Filling out a risk/control matrix
d. Inviting a guest speaker to talk to employees about the importance of internal control
e. Sending out a monthly e-mail describing some aspect of the center’s internal control
plan
On May 1, CGI Corporation declared cash dividends on its common stock. The
dividend was payable on May 15 to shareholders of record on May 5. On which date
will CGI record a debit to retained earnings and a credit to cash?
A. May 1
B. May 5
C. May 15
D. None of these
On May 1, CGI will debit retained earnings and credit dividends payable. On May 15,
CGI will debit dividends payable and credit cash. No entry is required on May 5.
WER Corporation forces its employees to change their system password every six
months. Which type of security control best describes the company’s policy?
A. Physical
B. Technical
C. Administrative
D. Hacking
Both e-business and ASPs can provide benefits for organizations. Which of the
following best pairs a potential benefit of e-business with a potential benefit of using an
ASP?
A. Quicker service delivery, increased flexibility
B. Geographic market expansion, role in disaster recovery plans
C. Quicker service delivery, role in disaster recovery plans
D. Geographic market expansion, reduced consequences for technology breakdowns
Please put the steps in the sales/collection process listed below in order of their usual
occurrence based on the description given in the text.A.Take a customer’s
orderB.Collect paymentC.Ship the productD.Process uncollectible receivables as
necessaryE.Bill the customer
F.Approve the customer’s credit
G.Fill the order based on approved credit
Booksellers of Bufluffia is a small, independent bookstore that both publishes and sells
very specialized titles. They currently have about 50 clients; they publish and sell 30
different books at present. The company’s management has asked you to create database
tables to support their operations. If the database includes a ‘sales” table, its primary key
is most likely to be:
A. Transaction date
B. Client name
C. Transaction number
D. Total revenue earned