Accounting Information

Testbank

For Accounting Information Systems Understanding Business Processes 4e

Brett Considine, Alison Parkes, Karin Olesen, Yvette Blount & Derek Speer Prepared by Zhong Zheng and Kent Wilson By 1 / 4

Chapter 1: Systems fundamentals

© John Wiley & Sons Australia, Ltd 2012 1.1

Chapter 1: Systems fundamentals

Multiple Choice Questions

1.The role of the accountant has changed in recent times because:

• professional bodies have sought to redefine and reposition the accounting

function.*b.computer systems have emerged to handle the classification and recording tasks traditionally associated with the accounting function.

• the accounting cycle is too complex and involved to be performed solely by

the accountant.

• knowledge workers have increasingly replaced accountants in the performance

of recording and classification tasks.

Correct answer: b

Learning Objective 1.1 ~ Define and describe accounting and explain how information systems have altered the role of accounting and the job of the accountant 2.As computer systems have been developed to perform the recording and classification tasks associated with business activities, the nature of accounting and the work of the accountant have also been pushed in a new direction. Increasingly, the role of the

accountant is seen to be to:

• use computer programs rather than manual journals.
• ensure that businesses invest in new software.

*c.add value and provide and interpret information for an organisation.

• outsource accounting work to bookkeepers.

Correct answer: c

Learning Objective 1.1 ~ Define and describe accounting and explain how information systems have altered the role of accounting and the job of the accountant 3.The ICAA requires that its members should bring their analytic expertise to several fields. Which one of the following field is NOT specified by the ICAA?

• Strategic planning and change management.
• Market analysis and compliance.
• The use of information technology.

*d.Human resource management.

Correct answer: d

Learning Objective 1.1 ~ Define and describe accounting and explain how information systems have altered the role of accounting and the job of the accountant 2 / 4

Testbank to accompany: Accounting information systems 4e

© John Wiley & Sons Australia, Ltd 2012 1.2

• What does ERP stand for?

*a. Enterprise Resource Planning

• Enterprise Resource Package
• Electronic Resource Planning
• Electronic Resource Package

Correct answer: a

Learning Objective 1.1 ~ Define and describe accounting and explain how information systems have altered the role of accounting and the job of the accountant

• Which of the following statements is NOT a major reason of why accountants of the

twenty-first century must be comfortable with information systems concepts?

• Computer systems are playing an increasing part in the management and

functioning of the organisation.

• Accountants are increasingly exposed to and working with technology and

information systems.

• Accountants need to know how computers manage knowledge and its data

resources.*d. Accountants need to lead and oversee the design of an accounting information system.

Correct answer: d

Learning Objective 1.1 ~ Define and describe accounting and explain how information systems have altered the role of accounting and the job of the accountant

6. Information is:

• the same as data.

*b. data that has been processed and converted.

• less useful than data.
• raw facts describing an event.

Correct answer: b

Learning Objective 1.2 ~ Define and describe information

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Chapter 1: Systems fundamentals

© John Wiley & Sons Australia, Ltd 2012 1.3

• What is information overload?

• The situation where a computer has more information than is needed or is able

to be processed in a meaningful way when a computer program is executed.*b. The situation where an individual has more information than is needed or is able to be processed in a meaningful way when working through a decision.

• The situation where a computer has more information than is needed or is able

to be processed when data storage is taking place.

• The situation where the amount of information exceeds the storage capacity of

the brain of a human being.

Correct answer: b

Learning Objective 1.2 ~ Define and describe information

• Which of the following statements best indicates the difference between data and

information:

• information and data are the same.
• information is less useful than data.
• information is always useful whereas data is only sometimes useful.

*d. information is data that has been processed and converted

Correct answer: d

Learning Objective 1.2 ~ Define and describe information

• The following message box appears when entering a customer order into a sales

system:

This is an example of:

• Input
• Process
• Output

*d. Feedback

Correct answer: d

Learning Objective 1.3 ~ Define and describe a system, using examples

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