Questions and Answers of Introduction To Accounting Information Systems

Which of the following statements is most true?a. Failure of a new system is a bigger risk in direct cutover implementations than in parallel implementations.b. Failure of a new system is a bigger
John plans to use the SDLC to develop a balanced scorecard for his department. Which stage of the capability maturity model is John’s organization in?a. Chaoticb. Repeatablec. Managedd. Cannot be
The vice president of TRT Corporation doesn’t care how managers develop budgets, as long as they do it on time. Which stage of the capability maturity model best describes TRT?a. Chaoticb.
Which of the following statements is most true?a. An organization with optimized business processes is more efficient than an organization with managed business processes.b. All organizations should
The CMM has been applied ina. Project management.b. Risk management.c. Business school accreditation.d. All of the above.
The CMM was first developed as a way to assessa. Government contractors working on military equipment.b. Private sector software developers.c. Organizations developing software for the government.d.
XBRL is based ona. XBRL-GL.b. U.S. GAAP.c. XML.d. Visual Basic.
XBRL is an open standard, meaninga. Only public organizations can implement it.b. It is related to open-book management.c. It does not cost anything to implement.d. It does not involve license fees.
The notation is referred to as a(n)a. Tag.b. Instance document.c. Specification.d. Taxonomy.
The Web site for XBRL International isa. www.xbrl_international.org.b. www.xbrl.com.c. www.xbrl.org.d. www.xbrl_taxonomies.org.
XBRL is independent ofa. Software and GAAP.b. Hardware and GAAP.c. Software and hardware.d. Software, hardware, and GAAP.
Where would you look to find the meaning of an XBRL tag created by an organization?a. Textbookb. Namespacec. Instance documentd. XBRL Web site
Which of the following statements is most true?a. Internal controls that work for many forms of information technology are inappropriate for XBRL.b. The risks associated with implementing XBRL are
As a language, XBRL has rules associated witha. Syntax.b. Punctuation.c. Both of the above.d. None of the above.
Which of the following is not a benefit associated with XBRL?a. Eliminates the need for financial statement auditsb. Consolidates results across divisions and subsidiaries with much greater speed and
Dragon Tag isa. An XBRL taxonomy.b. A namespace.c. Software used to generate XBRL tags.d. The only software that translates documents into XBRL
The common element in all forms of e-business isa. A computer.b. The involvement of a government agency.c. Doing business on the Internet.d. A network of computers.
Which of the following costs would you expect to incur in an e-business but not in a traditional brick-and-mortar business?a. Transaction processing costsb. Information technology costsc. Human
An enterprise resource planning system is most similar to which of the following?a. PowerPointb. Accessc. QuickBooksd. FrontPage
Which of the following is not a common cause of ERP failure?a. Assembling a committee or task force for the projectb. Expecting too much from the systemc. Lack of information seminars for employeesd.
An ERP system should be viewed asa. An information technology project.b. An accounting project.c. A human resources project.d. An organizational project.
Netflix is an example of which form of e-business?a. B2Cb. C2Cc. G2Cd. None of the above
Which of the following internal controls would be applicable in an e-business environment but not in a traditional environment?a. Segregation of dutiesb. Adequate documentationc. Data encryptiond.
Benefits of e-business can include reduced operating costs ina. Marketing.b. Telecommunications.c. Transaction processing.d. All of the above.
Trust Services principles and criteria are issued by thea. Securities and Exchange Commission.b. International Accounting Standards Board.c. Committee of Sponsoring Organizations.d. Assurance
WebTrust relates to ; SysTrust focuses on .a. Electronic commerce, enterprise systemsb. System reliability, enterprise systemsc. Electronic commerce, system reliabilityd. Internal control, risk
What interest rate is a company paying if it fails to take a discount of 3/15, n/60?a. 3%b. 25%c. 15%d. Some other amount
An accounting clerk debited cash and credited accounts receivable for $500. Which of the following is the most likely source document for that transaction?a. Deposit slipb. Sales invoicec. Remittance
Which of the following duties should be separated in the sales/collection process?a. Purchasing inventory and reconciling the bank statementb. Reconciling the bank statement and signing checksc.
When goods are shipped FOB shipping point, freight prepaid,a. The buyer pays the freight cost to the seller.b. The selling company cannot use a common carrier.c. The buyer pays the freight company
Which of the following steps in the sales/collection process typically happens first?a. Checking customer creditb. Verifying that inventory is on handc. Taking the customer’s orderd. Generating a
Primary activities in Porter’s value chain include all of the following excepta. Infrastructure.b. Inbound logistics.c. Marketing and sales.d. Operations.
Which of the following is a support activity in Porter’s value chain?a. Serviceb. Human resource managementc. Outbound logisticsd. Operations
Which of the following would be represented by a line in a DFD of the sales/collection process?a. Check customer creditb. Ship merchandisec. Customer informationd. All of the above
Bumble Beasley created a relational database table for the “check customer credit” activity in the sales/collection process. Which of the following would be the most likely primary key in the
A data flow diagram of the sales/collection process includes “common carrier” as an external entity. The external entity would most likely be connected toa. Customer (external entity).b. Ship
PLP Corporation maintains an electronic database file for all its vendors and purchases.Which of the following amounts would you be least likely to find in the “vendor” table?a. Total amount
An accounting clerk debited inventory and credited accounts payable for $$500.$ Which of the following is the most likely source document for that transaction?a. Purchase orderb. Receiving reportc.
In the context of an acquisition/payment process, the three-way match concept applies to which of the following sets of documents?a. Purchase requisition, vendor invoice, and remittance adviceb.
Although the ideas associated with the acquisition/payment process are most commonly associated with ______________ , they also can be applied to ______________.a. Sales, purchasesb. Purchases,
Which of the following steps in the acquisition/payment process typically happens first?a. Purchase goods/services.b. Authorize a purchase.c. Check vendor credit.d. Disburse cash.
The difference between a purchase requisition and a purchase order isa. Purchase orders are paper, while requisitions are electronic.b. Purchase requisitions are electronic, while purchase orders are
Which of the following is the best example of a conflict of interest?a. RKH Corporation established a list of preferred vendors.b. RKH’s conflict-of-interest policy was developed by their
Which documents must be matched before paying a vendor’s invoice?a. Purchase order, invoice, remittance adviceb. Purchase requisition, invoice, packing listc. Purchase order, invoice, receiving
Which of the following would be represented in a data flow diagram with a line?a. Prepare purchase orderb. Inventory filec. Vendord. Purchase requisition
Which of the following is a form of insurance for employee behavior?a. Bondingb. Workers’ compensation insurancec. Property insuranced. Life insurance
What steps would a doctor take to investigate EMR software?
How might an accounting professional be involved with EMR software?
The after-tax cost of debt would be most closely associated with the _____ process.a. Conversionb. Human resourcec. Financingd. Bookkeeping
A company that reproduces fine works of art, such as the Mona Lisa, would most likely use what kind of production process?a. Hybridb. Conversionc. Jobd. Process
A journal entry in a company’s accounting information system debited retained earnings.The purpose of the journal entry is most likelya. To record the declaration of a cash dividend.b. To account
TRN Corporation produces a product that is highly perishable. Which of the following internal controls is the best alternative for controlling the risk of product spoilage?a. Separation of dutiesb.
Whadda Ya Know University recently discovered that one of its professors had falsified his educational transcripts and does not actually hold any college degree. Which of the following constitutes an
Forced vacationsa. Are irrelevant in most companies, as employees are eager to take vacations.b. Can reveal fraudulent activities.c. Violate federal employment laws.d. Save a company money.
A production cost reporta. Is most applicable to process costing systems.b. Is most applicable to job costing systems.c. Is one of the general purpose financial statements for manufacturers.d.
An independent contractor is most closely associated with which of the following forms?a. 940b. 941c. W-2d. 1099
In a DFD of the human resources business process, “evaluate employees” would be represented with aa. Line.b. Circle.c. Rectangle.d. Triangle.
RKH Corporation maintains its job costing system using a relational database. Which of the following pieces of information would not be stored in a table in their system?a. Total cost of Job A244b.
Vicki prepared a flowchart showing the computer’s instructions for calculating payroll. Her flowchart would best be described as a ___________ flowchart.a. systemsb. documentc. programd. hardware
Which of the following is not a design consideration common to all types of flowcharts?a. They should have a title of no fewer than five words.b. They should be free of clutter and easy to read.c.
SmartDraw and Visio are examples ofa. Accounting information systems software.b. General ledger software.c. Presentation graphics software.d. Flowcharting software.
Which of the following flowcharting packages is the best?a. SmartDrawb. Visioc. WizFlow Flowcharterd. Cannot be determined from the information given
Which of the following statements is most true?a. Different people will probably create identical flowcharts for the same business process.b. Flowcharts are a requirement of COSO’s enterprise risk
Flowcharts are organized in columns that representa. Areas of responsibility.b. Business processes.c. Documents.d. Risk exposures.
A database would be represented in a flowchart as aa. Square.b. Cylinder.c. Triangle.d. Circle.
In a risk/control matrix, internal controls can be classified asa. Preventive or detective.b. Automated or manual.c. Both of the above.d. None of the above.
Consider the relationship between the COSO enterprise risk management framework and the risk/control matrix presented in the chapter. Which of the following COSO elements would seldom be present in
Flowcharts should be organized and reada. From top to bottom, from right to left.b. From bottom to top, from left to right.c. From top to bottom, from left to right.d. In any way that makes sense to
Who bears the primary responsibility for establishing and maintaining a sound internal control system in an organization?a. Accountantsb. External auditorsc. Managementd. Board of directors
Internal controls are designed toa. Eliminate risk.b. Ensure accurate financial reporting.c. Detect fraud.d. Provide reasonable assurance.
Which of the following is not an element of Internal Control: Integrated Framework?a. Committee of sponsoring organizationsb. Control environmentc. Risk assessmentd. Monitoring
Which of the following statements is not true?a. The Sarbanes-Oxley Act requires CEOs to personally attest to the adequacy of internal controls.b. The Foreign Corrupt Practices Act predates the
“Risk appetite” is most closely associated witha. Enterprise Risk Management: Integrated Framework.b. Brown’s taxonomy of risk.c. Sarbanes-Oxley.d. Detective internal controls.
How are internal controls related to the FASB conceptual framework?a. Internal controls ensure that financial statements are true.b. Internal controls help fulfill the qualitative characteristics of
The simplest way to secure computer hardware isa. Conduct employee background checks.b. Complete an annual physical inventory.c. Lock and alarm the doors where computer equipment is stored.d.
Which of the following organizations is not a part of COSO?a. American Institute of CPAsb. Securities & Exchange Commissionc. American Accounting Associationd. Institute of Management Accountants
Risk responses in COSO’s ERM framework include all of the following excepta. Avoid.b. Reduce.c. Share.d. Eliminate.
Enron, WorldCom, and other corporate scandals of the late 20th century were the primary impetus fora. Internal auditing.b. Foreign Corrupt Practices Act.c. Enterprise Risk Management: Integrated
Which of the following is not a characteristic of a professional according to Bell?a. Communicating effectivelyb. Actively seeking additional knowledgec. Thinking focused on your area of expertised.
Which of the following is the best example of accounting’s specialized knowledge base?a. The AICPA Code of Professional Conductb. The process of reconciling a bank statementc. Financial ratio
The IMA code of ethics and the ACFE code of ethics both mentiona. Off balance-sheet financing.b. Conflicts of interest.c. Legal rights of accountants and their clients.d. Rules for conducting
Which of the following best describes a Ponzi scheme?a. A fraud whereby old investors are paid with money from new investors.b. Any fraud that involves a conflict of interest.c. A fraud committed
Which of the following names is most closely associated with the Enron debacle?a. Ponzib. Albrechtc. Rigasd. Skilling
Bell asserted that a professional integrates knowledge from many disciplines. Your study of accounting information systems integrates accounting knowledge witha. Information technology.b. Business
According to the AICPA Code of Professional Conduct, accountants have an ethical responsibility toa. Clients only.b. Colleagues only.c. Both clients and colleagues.d. Neither clients nor colleagues
Which branch of ethics is concerned with the source and meaning of ethics?a. Metaethicsb. Normative ethicsc. Applied ethicsd. Professional ethics
Different accounting organizations (such as the IMA and AICPA) have their own codes of ethics becausea. They are required by law to do so.b. They do not respect one another.c. They want to punish
The f irst resource to consult when confronting a professional ethical dilemma in accounting isa. The company’s own code of ethics.b. A lawyer.c. A professional code of ethics.d. Dependent upon the
Which of the following steps in the accounting cycle is most likely to involve human judgment?a. Closing the temporary accounts.b. Preparing an adjusted trial balance.c. Evaluating source documents
Which of the following statements about human judgment and information technology is most true?a. Human judgment has been replaced by information technology.b. Information technology has been
In general, an “accrual” refers to a situation wherea. The matching concept is violated.b. Cash flow occurs before service.c. Cash flow occurs after service.d. A corporation has unbilled client
Which of the following is the best example of deferred revenue?a. A newspaper company collects subscription fees before delivering papers.b. A student pays her college tuition after the term has
A trial balance:a. Demonstrates the lack of fraud in the AIS if its debits equal its credits.b. Can be prepared only at the end of the accounting period.c. Is another name for the balance sheet.d.
Which of the following is not a type of coding common in organizations?a. Randomb. Sequentialc. Hierarchicald. Block
Internal control can be strengthened in the accounting cycle bya. Eliminating human judgment.b. Making information easily accessible.c. Enforcing transaction limits.d. All of the above.
A journal entry increases an asset. Which of the following could also be part of the entry?a. Decrease in revenueb. Increase in expensec. Increase in liabilityd. Any of the above
A project manager codes a transaction as 12-06-48, where 12 stands for a particular project, 06 denotes the department where the transaction occurred, and 48 indicates the transaction number.
Which of the following steps in the accounting cycle is least likely to involve human judgment?I. Posting II. Coding transactions according to the chart of accounts III. Approving transactions before
Which of the following describes an accounting information system?I. Paper-based journals and ledgers with manually generated financial statements II. A general ledger package, such as Peachtree,
Accounting information systems is similar to other areas of accounting in thata. Its problems always have single, correct responses.b. It requires aptitude for mathematics.c. It helps students

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