Accounting Information Systems:

Test Bank for

Accounting Information Systems:

The Crossroads of Accounting & IT Second Edition By Donna Kay Ali Ovlia Copyright ©2014 Pearson Education, Inc. 1 / 4

1 Copyright © 2014 Pearson Education, Inc.Accounting Information Systems, 2e (Kay/Ovlia) Chapter 1 Accounting Systems Insights Objective 1 1) An IT auditor must understand the terms and definitions used by accounting and IT professionals.

Answer: TRUE

Diff: 1

Objective: Q1.1 How do I navigate the crossroads of accounting and IT?

2) Which of the following are NOT part of the basic functions of an enterprise system?

• Hiring
• Output
• Input
• Processing

Answer: A

Diff: 1

Objective: Q1.1 How do I navigate the crossroads of accounting and IT?

Objective 2 1) A Supply Chain Management (SCM) system is a subsystem of an Accounting System.

Answer: FALSE

Diff: 1

Objective: Q1.2 How is the accounting system related to the enterprise system?

2) Activities performed by various departments within a company are rarely interconnected.

Answer: FALSE

Diff: 1

Objective: Q1.2 How is the accounting system related to the enterprise system?

3) An integrated enterprise system allows different departments to use the same information.

Answer: TRUE

Diff: 1

Objective: Q1.2 How is the accounting system related to the enterprise system?

4) Business processes are related activities performed by an enterprise to create value by transforming input into output.

Answer: TRUE

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system? 2 / 4

2 Copyright © 2014 Pearson Education, Inc.Match the following accounting cycles to the appropriate subsystems.

• Operations/Production System
• Supply Chain Management
• Customer Relationship Management

5) Purchasing Cycle

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

6) Payroll Cycle

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

7) Sales Cycle

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

Answers: 5) B 6) A 7) C

Match the following enterprise system function with the correct definition.

• Summarizing information to generate documents and reports
• Sorting and storing information
• Capturing information to store in the system

8) Input

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

9)Output

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

10) Processing

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

Answers: 8) C 9) A 10) B 3 / 4

3 Copyright © 2014 Pearson Education, Inc.11) When data is "hard keyed" into the program, which of the following is true?

• Changing the data requires recreating (recording) the entire program.
• Changing the data requires purchasing additional computer storage and may take days or

weeks.

• Changing the data is cost efficient and may be accomplished in a matter of minutes.
• Changing the data is costly and may take days or weeks.

Answer: D

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

12) What is an alternative to "hard keyed" data?

• If user requirements are correctly defined, the data will not change and may be "hard keyed."
• Using variables in the program, such as cell addresses in a spreadsheet.
• Alternatives to "hard keyed" data is not possible. All data must be "hard keyed."
• Creating the program in a way that does not require data.

Answer: B

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

13) The three basic functions of an enterprise system are

• Input, processing, and output
• Processing, output, and reports
• Business intelligence, processing, and output
• Input, data, and reports

Answer: A

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

14) Which symbol is used by IT professionals to represent the enterprise network?

• Cloud
• Star
• Circle
• Square

Answer: A

Diff: 1

Objective: Q1.2 How is the accounting system related to the enterprise system?

15) What is the purpose of Enterprise Resource Planning (ERP) software?

• Help identify the end of a product's life cycle
• Identify new trends in consumer purchasing
• Analyze an organization's sales projections
• Help managers control organizational resources

Answer: D

Diff: 2

Objective: Q1.2 How is the accounting system related to the enterprise system?

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