Employees and Training entities is ________ , because a given employee will, over
time, attend numerous training courses and, conversely, several employees may attend
the same specific training class.
A) 1:1
B) 1:N
C) M:N
D) 1:M
Picking ticket number is most likely to be a primary key in which entity of an expanded
revenue cycle REA diagram?
A) Call on Customers.
B) Fill Customer Order.
C) Ship Order.
D) Take Customer Order.
Customers that send their payments electronically directly to the billing company’s bank
are using
A) electronic funds transfer (EFT).
B) electronic data interchange (EDI).
C) procurement cards.
D) an electronic lockbox.
Which of the following balanced scorecard dimensions provides measures on how well
the organization is working to improve customer satisfaction and become the preferred
supplier for key customers?
A) Financial.
B) Internal operations.
C) Innovation and learning.
D) Customer.
The task of improving the efficiency of Crawford Insurance’s accounting information
system was given to a project development team. During the ________ step in the
systems development life cycle, the team determined that implementing a new system
will yield an internal rate of return of approximately 16.0%.
A) systems analysis
B) operations and maintenance
C) implementation and conversion
D) conceptual design
Implementing a new system at a branch location before company-wide adoption is
called
A) direct conversion.
B) parallel conversion.
C) phase-in conversion.
D) pilot conversion.
Which would not generally be considered a data dictionary output report?
A) a list of cash balances in the organization’s bank accounts
B) a list of all programs in which a data element is used
C) a list of all synonyms for the data elements in a particular file
D) a list of all data elements used by a particular user
The Spontaneous Combustion Rocket Shoppe in downtown Fargo, North Dakota,
generates three quarters of its revenue from orders taken over the Internet. The revenue
clearing account is debited by the total of cash and credit receipts and credited by the
total of storefront and Internet sales. This is an example of a
A) data integrity test.
B) zero-balance test.
C) trial balance audit.
D) cross-footing balance test.
Which of the following is not a benefit of activity-based costing?
A) Lower cost.
B) Better decisions.
C) Improved cost management.
D) Identification of cost drivers.
A well-designed AIS can improve the decision making in an organization. Identify the
statement below that describes a situation where an AIS may actually inhibit effective
decision making.
A) An AIS provides to its users an abundance of information without any filtering or
condensing of such information.
B) An AIS identifies situations requiring management action.
C) An AIS reduces uncertainty, and therefore accounting information can provide a
basis for choosing among alternative courses of action.
D) An AIS provides information about the results of previous decisions which provides
decision makers with feedback that can be used in future decision making.
Step-by-step reviews of procedures or program logic early in the system design that
focus on inputs, files, outputs, and data flows are called
A) acceptance test.
B) operating tests.
C) processing of test transactions.
D) walk-throughs.
Individuals who control an army of malware-infected zombie computers are referred to
as
A) malware owners.
B) malware writers.
C) botnet owners.
D) bad actors.
The minimum cardinalities between a location, such as Warehouse, and a resource, like
Inventory, will likely be 0 for all except which of the following reasons?
A) One specific inventory item could be stored at several different warehouses.
B) A warehouse could be currently empty.
C) Not all kinds of inventory are stored at each warehouse.
D) Inventory could include products not yet available for sale.
Why is computer fraud often more difficult to detect than other types of fraud?
A) Rarely is cash stolen in computer fraud.
B) The fraud may leave little or no evidence it ever happened.
C) Computers provide more opportunities for fraud.
D) Computer fraud perpetrators are just more clever than other types of criminals.
Which of the following is not a principle of good form design?
A) Is the form a standard size?
B) Is space provided for a signature(s) to indicate transaction approval?
C) Does the form name appear at the top in bold type?
D) Is the cost of producing the form too high?
Identify one disadvantage in prototyping.
A) Developers may shortchange the testing and documentation process.
B) Errors are likely to be detected and eliminated early in the development process.
C) Prototyping may be less costly than other approaches.
D) Prototyping usually produces a better definition of user needs than other approaches.
If the actual cost of an inventory item is maintained as an attribute in the Inventory
table, which inventory valuation method would an organization have to use?
A) LIFO.
B) FIFO.
C) Weighted Average.
D) Specific Identification.
Which of the following transactions is represented by the diagram below?
A) A junkyard holds weekly sales where it sells its entire inventory.
B) A shoe store sells products to consumers.
C) A stay-at-home mom creates furniture for doll houses. When one piece is finished,
she sells it on Amazon.com.
D) Netflix sells movies to consumers through its online downloading service.
________ tests a numerical amount to ensure that it does not exceed a predetermined
value nor fall below another predetermined value.
A) Completeness check
B) Field check
C) Limit check
D) Range check
Which of the following balanced scorecard dimensions provides measures on new
products?
A) Financial.
B) Internal operations.
C) Innovation and learning.
D) Customer.
John Pablo works in the accounting department of a multinational manufacturing
company. His job includes updating accounts receivable based on sales orders and
remittance advices. His responsibilities are part of the company’s
A) revenue cycle.
B) expenditure cycle.
C) financing cycle.
D) production cycle.
The minimum cardinality from the Sales event to the Services entity is most likely 1
because
A) every sale includes performing a service.
B) a service is only recorded once a sale has occurred.
C) only 1 service is provided for each sale.
D) the minimum cardinality is always set to be 1.
What type of conversion terminates the old system as soon as the new system is ready?
A) Direct conversion.
B) Parallel conversion.
C) Phase-in conversion.
D) Pilot conversion.
The passage of the Sarbanes Oxley Act
A) made documentation skills even more important.
B) requires public companies to prepare an annual internal control report.
C) mandates that auditors must be able to prepare, evaluate and read documentation
tools such as flowcharts.
D) All of the above.
Which of the following is the best way to hide theft of assets?
A) Only steal an immaterial amount of assets.
B) Conversion of stolen assets into cash.
C) Stealing cash from customer A and then using customer B’s balance to pay customer
A’s accounts receivable.
D) Charging the stolen asset to an expense account.
The possibility that a material error will occur even though auditors are following audit
procedures and using good judgment is referred to as
A) control risk.
B) detection risk.
C) inherent risk.
D) investigating risk.
Restricting access to the approved supplier list can
A) help reduce the risk of fraudulent disbursements.
B) cause purchase order approval delays.
C) eliminate the risk of duplicate payment.
D) improve the efficiency of the expenditure cycle.
Identify the attribute below that would not make a good primary key.
A) Postal code.
B) Social security number.
C) A unique number automatically generated by the system.
D) Cell phone number.
Identify the statement below that best describes a Gantt chart.
A) A network of arrows and nodes representing project activities.
B) A bar chart with project activities on the left-hand side and units of time across the
top.
C) A pie chart with the size of estimated expenditures represented as slices.
D) A scatterplot diagram with activities on the Y access and dots representing the
potential expenditures of each activity.
Suppose an organization is interested in knowing whether it has access to people who
can design, implement, and operate the proposed system. Where should this
requirement be considered in a feasibility study?
A) Economic feasibility.
B) Scheduling feasibility.
C) Operational feasibility.
D) Technical feasibility.
As a result of an internal risk assessment, Berryhill Insurance decided it was no longer
profitable to provide flood insurance in the southern states without a general rate
increase. Berryhill apparently chose to ________ the risk of paying flood claims in the
southern states by raising its insurance rate.
A) reduce
B) share
C) avoid
D) accept
Which of the following is incorrect with regards to a data archive?
A) Archives can be a copy of a database.
B) Archives should be stored in different locations.
C) Archives are usually encrypted.
D) Physical and logical controls are the primary means of protecting archive files.
The Trust Services Framework reliability principle that states access to the system and
its data should be accessible to meet operational and contractual obligations to
legitimate users is known as
A) availability.
B) security.
C) privacy.
D) integrity.
When purchasing miscellaneous supplies, companies can reduce costs, improve
efficiency, and combat employee fraud by
A) using procurement cards.
B) implementing a JIT inventory system.
C) requiring employees to personally purchase items then reimbursing employees at the
end of each month.
D) paying amounts out of petty cash.
Identify the cost below most likely to be classified as manufacturing overhead.
A) Production workers’ pay.
B) Raw materials used in production.
C) Insurance cost.
D) Research and development cost.