core concepts of accounting information systems 12e simkin strand norman test bank and solutions manual
Chapter 1
Accounting
Information Systems and the Accountant
|
True-False
Questions
1.
The acronym AIS stands for “Accounting
Information Standards.”
2.
Accounting information systems must be
computerized to be effective.
3.
It is best to view an AIS as an accounting
system that must be computerized.
4.
AISs often create information that is useful
to non-accountants.
5.
In order to be useful, raw accounting data
must be processed by a computer.
6.
The path that data follow in an AIS, for
example from manual source document to completed output report, is called an audit trail.
7.
A company's audit trail is normally easier to
follow under a manual data processing system compared to a computerized
information processing system.
8.
The starting point for an audit trail of a
payroll system might be an employee time card.
9.
The starting point for an audit trail of a
production department might be the purchase of raw materials.
10.
The acronym ERP stands for “electronic
reporting plan.”
11.
The term information
overload refers to providing too much data to management, often resulting
in managers ignoring it.
12.
An advantage of computerized AISs is that
they do not need to be programmed to
catch simple input errors such as entering “4.0” instead of “40.0” for hours
worked in a payroll application.
13.
Computers tend to make audit trails easier to
follow because everything is computerized.
14.
The acronym ERP stands for “enterprise
reporting system.”
15.
The authors consider accountants to be
“knowledge workers.”
16.
Predictive analytics use large data
warehouses to help organizations improve performance.
17.
As used in this chapter, the acronym SAR
stands for “suspicious accounting reports.”
18.
Sections of the Patriot Act mandate
suspicious activity reporting.
19.
One of the motivations for SAR is to identify
money laundering activities.
20.
The term “Patriot” is an acronym for
“providing appropriate tools required to intercept and obstruct terrorism.”
21.
Section 352 of the Patriot Act requires
auditors to verify that their organizations have adequate risk assessment
systems.
22.
Accounting systems are useful for performing
accounting tasks, but cannot be used
for such security purposes as countering terrorism.
23.
The Sarbanes-Oxley Act includes a provision
that prohibits corporations from making personal loans to executives.
24.
The Sarbanes-Oxley Act prohibits companies
from using the same auditing firms for performing both auditing and management
consulting services.
25.
As a result of corporate bankruptcies in
2002, some of the largest public accounting firms are no longer engaged in any
consulting work.
26.
A major output of financial accounting is the
preparation of financial statements such as an income statement.
27.
The series of steps leading from data
recorded in transaction records to the information reported on financial
statements is called the accounting
cycle.
28.
AISs are only concerned with financial
information.
29.
One major difference between financial
accounting and managerial accounting is that financial accountants prepare
financial statements for external investors while managerial accountants
prepare financial statements for internal managers.
30.
In a responsibility accounting system, every
person within a company takes responsibility for the performance of every
business unit.
31.
One major difference between financial
accounting and managerial accounting is that financial accountants use
dashboards while managerial accountants do not.
32.
An example of a financial report that would
be prepared by a managerial accountant (instead of a financial accountant) is a
budget report.
33.
XBRL is a business reporting language that is
used to define interactive financial data.
34.
“Cost accounting” tasks are usually performed
by financial accountants.
35.
An ABC inventory system refers to an
“activity-based costing” system.
36.
As used in chapter 1, the term “dashboard”
refers to a quick and easy plan to install a computerized accounting system in
an organization.
37.
As used in Chapter 1, a dashboard is an
up-to-the-minute graphic depiction of one or more business activities.
38.
The purpose of the assurance services of an
accounting firm is to give a company’s managers moral support when they are
audited by the federal or state government.
39.
The purpose of CPA Trust Services is to
provide assurance that a company engaged in electronic commerce can provide the
goods or services it promises.
40.
An example of a value-added reseller (VAR) is a computer
dealer that adds software to the hardware it sells.
41.
Some possible career opportunities for AIS
majors or minors include consulting positions, computerized auditing, or system
computer auditing positions.
42.
Accountants are usually classified as “line
workers” within business organizations.
43.
Today's AIS is an enterprise-wide information
system that focuses on interdepartmental business processes.
44.
Managerial accounting principally provides
decision‑making information to a company's internal managers.
45.
As a result of computerized information
processing systems in many organizations today, the need for accountants in
these organizations has significantly declined.
46.
Activity-based costing systems focus on
allocating overhead on the basis of direct labor hours used.
47.
Because accountants are not normally computer programmers working within the information
processing subsystem, it is unnecessary for them to understand the capabilities
and limitations of computers.
48.
Within the traditional AIS, a sales order
would not be considered an accounting
transaction.
49.
Students majoring in AIS are unlikely to
assume jobs in traditional accounting positions because they know too much.
50.
There are limited career opportunities
available for students who study both accounting and information systems.
51.
One possible career for AIS majors is in the
traditional area of financial or managerial accounting.
52. The CISA is an acronym for a professional accounting
certification.
Multiple-Choice
Questions
53.
The “S” in the acronym “AIS” stands for:
a)
Standard
b)
System
c)
Symbol
d)
none of these
54. Which
of the following is true?
a) An
AIS must be computerized to be useful
b)
An AIS always produces useful
information
c)
An AIS always produces financial
information
d) none of these
55. The
letter “P” in the acronym “ERP” stands for:
a)
Production
b)
Planning
c)
Project
d)
none of these
56.
Which of the following is true about
the terms “data” and “information” within the context of Chapter 1?
a)
These terms are exactly the same
b)
These terms are exact opposites
c)
Some “data” can also be “information”
d)
none of these
57. If
a manager suffers “information overload”:
a)
He or she must press the reset button on his
or her computer
b)
It means that this person needs a larger hard
drive
c)
The “information” is really just data
d)
He or she must forget some facts in order to
remember others
58. Which
of the following captures the same idea as the term “GIGO?”
a)
Computers cannot turn straw into gold
b)
Too much information is the same as garbage
c)
Great investments lead to great returns
d)
Too many cooks spoil the broth
59.
Which of the following best describes
a data warehouse as discussed in Chapter 1?
a)
A repository of historical information from
one accounting application
b)
A repository of historical information from a
set of accounting applications
c)
A repository of information from many
business applications—some not accounting
d)
A repository of information from many
businesses in the same industry
60.
Most AISs perform all of these
functions except:
a)
Collect raw accounting data
b)
Store accounting data for future uses
c)
Process data into useful information
d)
AISs perform all of these functions
61. As
used in the chapter, “knowledge workers”:
a)
Are blue collar workers in non-managerial
positions
b)
Are the same as delivery clerks
c)
Include most accountants
d)
Does not include most accountants
62.
All
of the following are possible uses of AIS or accounting personnel that were
discussed in the chapter except:
a)
Countering terrorism
b)
Foiling future accounting scandals
c)
Providing assurance services
d)
Performing monetary exchanges
63. Suspicious
activity reporting:
a)
Only applies to banking transactions
b) Is mandated by state, but not federal,
regulations
c)
Is mostly concerned with embezzlement
issues
d)
Is a requirement under the
Sarbanes-Oxley Law of 2002
e) none of these
64. Which of these would be considered
suspicious activities under current SAR rules?
a)
Money laundering
b)
Bribing officials
c)
Transferring money to suspected
terrorists
d)
all of these
65.
Which of these businesses is not required to report suspicious
activities under current federal laws?
a)
Banks
b)
Money service organizations
c)
Commodity Traders
d)
Mutual fund dealers
e)
Race tracks
66.
Which of these statements best
describes the relationship between “AISs” and “countering terrorism?”
a)
These are completely independent items;
there is no relationship
b)
AISs can help counter terrorism using
data warehouses
c)
AISs can help by denying financial aid
to terrorist groups
d)
AISs can help by identifying
international embezzlers
67.
Bernard Madoff is most closely
associated with which of the following terms?
a) The
father of activity-based costing systems
b) SAR
c) Ponzi
scheme
d) Sarbanes-Oxley
Act of 2002
e) Key
sponsor of the Patriot Act
68.
Many accountants feel that the most
important part of the Sarbanes-Oxley Act is:
a) Its
anti-terrorist provisions
b) Its
provisions requiring the reporting of suspicious activities
c) Section
404 on internal controls
d) Section
505 on money laundering
69.
The U.S. Patriot act:
a) Requires
banks to monitor their accounts in foreign institutions for fraud
b) Prohibits
companies from lending money to corporate executives
c) Only
applies to publicly-traded companies
d) all
of these are correct
70. A good performance measurement system
should evaluate:
a)
Profitability only
b)
Customer satisfaction only
c)
Those aspects of a unit’s performance that
are subject to its control
d)
Those aspects of a unit’s performance whether
controllable or not
71.
The managerial accounting component
of the accounting subsystem contains all
but which one of the following functions:
a) Cost accounting
b)
Financial accounting
c)
Budgeting
d)
Systems study
72. Managerial
accounting principally provides information to:
a)
Stockholders
b)
Government regulators (e.g., SEC, Federal
bank examiners)
c)
Internal company management
d)
Potential creditors
73. The
process by which a financial transaction is recorded so that its flow through
the system can be followed is called:
a)
Financial shadowing
b)
Managerial trace technique
c)
Concatenation
d)
An audit trail
74.
Which of the following accounting
functions has been automated by most companies' information processing
subsystems?
a)
Posting to ledgers
b)
Recording journal entries
c)
Preparing trial balances
d)
all of the above
75. The
accounting subsystem must continually interact with the:
a)
Personnel subsystem
b)
Information processing subsystem
c)
Production subsystem
d)
b and c only
e)
a, b, and c
| AIS - 12th Edition | |||||||||
| TEST BANK KEY | |||||||||
| Chapter 1 | |||||||||
| True-False | Multiple Choice | Matching | |||||||
| 1 | F | 41 | T | 53 | B | 93 | D | 98 | K |
| 2 | F | 42 | F | 54 | D | 94 | C | 99 | D |
| 3 | F | 43 | T | 55 | B | 95 | D | 100 | H |
| 4 | T | 44 | T | 56 | C | 96 | D | 101 | C |
| 5 | F | 45 | F | 57 | C | 97 | B | 102 | G |
| 6 | T | 46 | F | 58 | A | 103 | A | ||
| 7 | T | 47 | F | 59 | C | 104 | I | ||
| 8 | T | 48 | T | 60 | D | 105 | E | ||
| 9 | T | 49 | F | 61 | C | 106 | F | ||
| 10 | F | 50 | F | 62 | D | 107 | B | ||
| 11 | T | 51 | T | 63 | E | ||||
| 12 | F | 52 | T | 64 | D | ||||
| 13 | F | 65 | E | ||||||
| 14 | F | 66 | C | ||||||
| 15 | T | 67 | C | ||||||
| 16 | T | 68 | C | ||||||
| 17 | F | 69 | A | ||||||
| 18 | T | 70 | C | ||||||
| 19 | T | 71 | B | ||||||
| 20 | T | 72 | C | ||||||
| 21 | T | 73 | D | ||||||
| 22 | F | 74 | D | ||||||
| 23 | T | 75 | E | ||||||
| 24 | T | 76 | C | ||||||
| 25 | T | 77 | D | ||||||
| 26 | T | 78 | A | ||||||
| 27 | T | 79 | D | ||||||
| 28 | F | 80 | C | ||||||
| 29 | T | 81 | B | ||||||
| 30 | F | 82 | A | ||||||
| 31 | F | 83 | C | ||||||
| 32 | T | 84 | B | ||||||
| 33 | T | 85 | D | ||||||
| 34 | F | 86 | C | ||||||
| 35 | T | 87 | B | ||||||
| 36 | F | 88 | D | ||||||
| 37 | T | 89 | D | ||||||
| 38 | F | 90 | D | ||||||
| 39 | T | 91 | A | ||||||
| 40 | T | 92 | B | ||||||
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