True False Questions

1-1 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Chapter 01 Accounting Information Systems and Firm Value True / False Questions 1.Accounting and Finance is a primary activity in the value chain.True False 2.Accounting Information Systems at this date are all computerized.True False 3.Business value includes all those items, events and interactions that determine the financial health and well-being of the firm.True False 4.The Certified Information Technology Professional (CITP) is a professional designation for those with broad range of technology knowledge and does not require a CPA.True False 5.The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those performing IT audits.True False 6.Information is defined as being data organized in a meaningful way to be useful to the user.True False Accounting Information Systems 1e Vernon Richardson Janie Chang Rodney Smith (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter (Ch 8 Not Provided By Author) 1 / 4

1-2 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

7.Data is defined as being information organized in a meaningful way to be useful to the user.True False 8.A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.True False 9.A value chain is defined as the flow of materials, information, payments, and services from customer to supplier.True False 10.Relevant information is that information that is free from bias and error.True False 11.The characteristics of relevant information include predictive value, feedback value and timeliness.True False 12.The characteristics of reliable information are that the information is verifiable, without bias and timely.True False 13.Information overload is defined as the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.True False 14.The main financial benefit of Customer Relationship Management practices reduces the cost of goods sold.True False 2 / 4

1-3 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

• An efficient Enterprise System can significantly lower the cost of support processes included

in sales, general, and administrative expenses.

True False

• An accounting information system (AIS) is defined as being an information system that

records, processes and reports on transactions to provide financial information for decision making and control.

True False

• An enterprise system is a centralized database that collects data from throughout the firm.

This includes data from orders, customers, sales, inventory and employees

True False

• Outbound logistics are the activities associated with receiving and storing raw materials and

other partially completed materials, and distributing those materials to manufacturing when and where they are needed.

True False

• Service Activities as defined in the value chain are those activities that provide the support of

customers after the products and services are sold to them (e.g. warranty repairs, parts, instruction manuals, etc.).

True False

• A well-designed and well-functioning AIS can be expected to create value by providing

relevant information helpful to management to increase revenues and reduce expenses.

True False

• Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue Service is

an example of discretionary information.

True False

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1-4 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

• An enterprise system is primarily used to manage and nurture a firm's interactions with its

current and potential clients.

True False

• The Sarbanes-Oxley Act of 2002 is a federal law in the United States that set new and

enhanced standards for all U.S. public companies, management and public accounting firms.

True False

• CRM software often includes the use of database marketing tools to learn more about the

customers and to develop strong firm-to-customer relationships.

True False

• The Certified Information Technology Professional is the position created by the AICPA to

recognize CPAs who have the ability to provide skilled professional services on Information Technology.

True False

Multiple Choice Questions

26. Accounting information systems are:

• Always computerized.

• Report only accounting information.

• Records, processes and reports

• Are for computer games

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