TURNER WEICKGENANNTCOPELAND

Ch 2 Test bank – 3e Page 1 of 24 Page 1 of 24

ACCOUNTING INFORMATION SYSTEMS/3e

TURNER / WEICKGENANNT/COPELAND

Test Bank: CHAPTER 2: Foundational Concepts of the AIS

NOTE: All new or adjusted questions are in red. New questions are identified by the letter A as part of the question number; adjusted questions are identified by the letter X as part of the question number.

End of Chapter Questions:

• Which of the following statements is not true?
• Accounting information systems must maintain both detail and summary information.
• Business processes may vary from company to company.
• Regardless of the extent of computerization, all accounting information systems must

capture data from the transactions within business processes.

• Business processes categorized as expenditure processes are not intended to be processes

that serve customers.

• In a manual system, an adjusting entry would most likely be initially recorded in a:
• Special journal
• Subsidiary ledger
• General journal
• General ledger

• Which of the following is not a disadvantage of maintaining legacy systems?
• There are fewer programmers available to support and maintain legacy systems.
• They contain invaluable historical data that may be difficult to integrate into newer

systems.

• Hardware or hardware parts may be unavailable for legacy systems.
• It can be difficult to integrate various legacy systems into an integrated whole.

• Which of the following is not an advantage of cloud computing when compared to client-server

computing?

• It is more scalable.
• It is less costly.
• It increases the amount of computer infrastructure in a company.
• It has expanded availability.

• Which of the following is a disadvantage of purchased accounting software, compared with

software developed in-house?

• It is custom designed for that company.
• It is less costly.
• The implementation time is shorter.
• There are fewer bugs.

Accounting Information Systems Controls Processes 3rd Edition Turner Test Bank Visit TestBankDeal.com to get complete for all chapters

Ch 2 Test bank – 3e Page 2 of 24

• Which of the following is not a method of updating legacy systems?
• Enterprise application integration
• Backoffice ware
• Screen scraper
• Complete replacement

• When categorizing the accounting software market, a company with revenue of $8 million

would most likely purchase software from which segment?

• Small company
• Midmarket
• Beginning ERP
• Tier 1 ERP

• An IT system that uses touch-screen cash registers as an input method is called:
• Electronic data interchange
• E-business
• Point-of-sale system
• Source documents and keying

• When similar transactions are grouped together for a specified time for processing, it is called:
• Online processing
• Real-time processing
• Batch processing
• Group processing

• Which of the following is not correct regarding the differences in the ways that real-time

systems differ from batch systems?

Real-Time Systems Batch Systems

• Must use direct access files. Can use simple sequential files.
• Processing occurs on demand. Processing must be scheduled.
• Processing choices are menu-driven. Processing is interactive.
• Supporting documents are prepared Supporting documents are prepared

as items are processed. during scheduled runs.

• In documenting systems, which pictorial method is described as a method that diagrams the

actual flow and sequence of events?

• Systems flowchart
• Process map
• Data flow diagram
• Entity relationship diagram

Ch 2 Test bank – 3e Page 3 of 24 Page 3 of 24

• (CMA Adapted) A company in Florida provides certified flight training programs for aspiring new

pilots of small aircraft. Although awarding a pilot’s license requires one-on-one flight time, there is also much preparatory training conducted in classroom settings. The company needs to create a conceptual data model for its classroom training program, using an entity-relationship

diagram. The company provided the following information:

Floridian Flight, Inc. has 10 instructors who can tach up to 30 pilot trainees per class. The company offers 10 different courses, and each course may generate up to eight classes. Identify the entities

that should be included in the entity-relationship diagram:

• Instructor, Floridian Flight Inc., Pilot Trainee
• Instructor, Floridian Flight Inc., Course, Enrollment, Class
• Floridian Flight Inc., Enrollment, Course, Class, Pilot Trainee
• Instructor, Course, Enrollment, Class, Pilot Trainee

TEST BANK – CHAPTER 2 – MULTIPLE CHOICE

• IT systems have dramatically affected many aspects of business. Which of the following is not

one of the changes?

• Data input into accounting information systems.
• The way that data is processed in the system.
• The accounting information that is reported by the system.
• The outputs of the system.

• Which of the following statements is false?
• Technology has allowed many industries to provide better, faster, and higher quality

information.

• Business process must adapt to the new technologies.
• Business processes, IT systems, and the accounting information system are inextricably

linked.

• IT systems have not had a major impact on the input of data into the accounting

information system.

• The system that captures, records, processes, and reports accounting information is referred to

as a(n):

• Accounting information system
• Management information system.
• System of business processes.
• Client-server system.

4. Information captured by a system is generated by financial transactions:

• Within the organization only.
• Between an organization and its customers only.
• Between an organization and its vendors only.
• Within the organization and between an organization and its customers and vendors.

Ch 2 Test bank – 3e Page 4 of 24

• A prescribed sequence of work steps completed in order to produced a desired result for an

organization is the definition of:

• Accounting information system
• Business process
• Business transaction
• Financial statement

• Which of the following statements, related to a business process, is not a true statement?
• It has a well-defined beginning and end.
• Usually takes a long-period of time to complete.
• Occur so that the organization may serve its customers.
• Is initiated by a particular kind of event.

• When a transaction occurs there are systematic and defined steps that take place within the

organization to complete all of the underlying tasks. These “defined steps” are referred to as:

• Business Processes
• Financial Transactions
• Accounting Information Systems
• Customer Service Arenas

8. The substance of an accounting information system includes:

• Initiate an event
• Steps taken to create a business process
• Capturing, recording, processing and reporting accounting information
• Selection of client-server computing

• Which of the following is not one of the general categories of business processes?
• Revenue Processes
• Inventory Processes
• Expenditure Processes
• Conversion Processes

• Which of the following correctly states the order of steps in a manual accounting system?
• Source Documents, Journals, Ledgers, Reports
• Journals, Source Documents, Ledgers, Reports
• Source Documents, Ledgers, Journals, Reports
• Ledgers, Reports, Journals, Source Documents

• Which of the following statements is true?
• All accounting systems in use today are computerized systems.
• All accounting systems, whether computerized or not, must capture data, process the

data, and provide outputs

• It is not necessary for an accounting system to maintain summary information if it maintains

detail information.

• The general ledger will be summarized and then posted to the subsidiary ledger.