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© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution inany manner.This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Chapter 1
Accounting Information Systems: An Introduction
Answer Key True / False Questions 1.Accounting and Finance is a primary activity in the value chain.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Describe how business processes affect the firm’s value chain.
Topic: The Value Chain and Accounting Information Systems
2.Accounting Information Systems at this date are all computerized.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Distinguish between data, information and an information system.
Topic: Data versus Information
3.Business value includes all those items, events and interactions that determine the financial health and well-being of the firm.
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Describe how business processes affect the firm’s value chain.
Topic: The Value Chain and Accounting Information Systems
4.The Certified Information Technology Professional (CITP) is a professional designation for those with a broad range of technology knowledge and does not require a CPA.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain certifications related to accounting information systems
Topic: Role of Accountants in Accounting Information Systems
Accounting Information Systems 2e Vernon Richardson Janie Chang Rodney Smith (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution inany manner.This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
5.The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those performing IT audits.
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain certifications related to accounting information systems
Topic: Role of Accountants in Accounting Information Systems
6.Information is defined as being data organized in a meaningful way that is useful to the user.
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Distinguish between data, information and an information system.
Topic: Data versus Information
7.Data is defined as being information organized in a meaningful way that is useful to the user.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Distinguish between data, information and an information system.
Topic: Data versus Information
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.
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Describe how business processes affect the firm’s value chain.
Topic: The Value Chain and Accounting Information Systems
9.A value chain is defined as the flow of materials, information, payments, and services from customer to supplier.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Describe how business processes affect the firm’s value chain.Topic: The Value Chain and Accounting Information Systems 2 / 4
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
- Relevant information is that information that is free from bias and error.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define an accounting information system and explain characteristics of useful information.Topic: Definition of Accounting Information Systems, Attributes of Useful Information
- The characteristics of relevant information include predictive value, feedback value and timeliness.
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define an accounting information system and explain characteristics of useful information.Topic: Definition of Accounting Information Systems, Attributes of Useful Information
- The characteristics of reliable information are that the information is verifiable, without bias and
timely.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define an accounting information system and explain characteristics of useful information.Topic: Definition of Accounting Information Systems, Attributes of Useful Information
- 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.
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Distinguish between data, information and an information system.Topic: Definition of Accounting Information Systems, Attributes of Useful Information
- The main financial benefit of Customer Relationship Management practices reduces the cost of goods
sold.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices.
Topic: AIS, Firm Profitability, and Stock Prices
- / 4
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
- An efficient Enterprise System can significantly lower the cost of support processes included in sales,
general, and administrative expenses.
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices.
Topic: AIS, Firm Profitability, and Stock Prices
- An accounting information system (AIS) is defined as being an information system that records,
processes and reports on transactions to provide financial and nonfinancial information for decision making and control.
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define an accounting information system and explain characteristics of useful information.
Topic: Definition of Accounting Information Systems
- An enterprise system is a centralized database that collects data from throughout the firm. This
includes data from orders, customers, sales, inventory and employees.
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Describe how AIS assists the firm’s internal business processes.
Topic: AIS and Internal Business Processes
- 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.
Answer: FALSE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Describe how business processes affect the firm’s value chain.
Topic: The Value Chain and Accounting Information Systems
- 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.).
Answer: TRUE
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Describe how business processes affect the firm’s value chain.
- / 4
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