1) An accounting information system (AIS) processes ________ to provide users with ________. A) data; information B) data; transactions C) information; data D) data; benefits 2) Information that does not omit important aspects of the underlying events or activities that it measures is A) complete. B) accessible. C) relevant. D) timely. 3) Which of the following is not one of the three basic types of data about a specific sales transaction that should be captured by an Accounting Information System? A) name of the employee who completed the sale B) daily sales quota C) product sold D) date 4) Define the concept of a system. 5) For a retail business, a delivery of inventory, from a vendor (with whom there is an established credit relationship) would be initially recorded in which type of accounting record as part of which transaction cycle? A) purchases journal; expenditure cycle B) general journal; expenditure cycle C) general ledger; expenditure cycle D) cash disbursements journal; production cycle 6) Which of the following documents would be found in the expenditure cycle? A) delivery ticket B) time card C) credit memo D) purchase order 7) What is the purpose of source documents? What controls are embedded in source documents? Give two examples of source documents. 8) A specialized journal would be most likely to be used to enter A) sales transactions. B) monthly depreciation adjustments. C) annual closing entries. D) stock issuance transactions. 9) Which statement below regarding the AIS is false? A) The AIS must be able to provide managers with detailed and operational information about the organization's performance. B) Both traditional financial measures and operational data are required for proper and complete evaluation of performance. C) The AIS was often just one of the information systems used by an organization to collect and process financial and nonfinancial data. D) Traditionally, most AIS have been designed so that both financial and operational data are stored in a manner that facilitates their integration in reports. 10) Which of the following is an example of an ERP system? A) Alexis uses a computerized information system to keep track of all the financial data generated by her bakery. She is considering opening a new bakery on the east side of town. B) Betty has a system that keeps track of the accounts payable and receivable for her plumbing business. At the end of the year, the system helps her to prepare her taxes in just two hours. C) Charlie keeps records of all his business records in a shoe box. Each week he enters all of the data into spreadsheets that automatically generate purchase orders, based on predetermined inventory reorder points. Production quotas for the coming week are also automatically generated based on customer orders. D) Doug is a freelance photographer. He keeps records of all expenses and revenues on his cell phone and then e-mails them to himself every month. The files are stored on his personal computer and backed up to CD quarterly. 11) Describe four advantages and four disadvantages of implementing an ERP system at a multinational corporation. 12) In preparing a DFD, when data are transformed through a process, the symbol used should be A) a circle. B) an arrow. C) a square. D) two horizontal lines. 13) A DFD created at the highest-level or summary view is referred to as a A) process diagram. B) overview diagram. C) content diagram. D) context diagram. 14) The American Bread Company is a small restaurant that collects, stores, prepares and provides meals to customers in Miami, Florida. When food is received, it is recorded in a database and a receiving ticket is provided to the vendor. When food is used, the database is updated so that it always reflects the amount and type of food available to customers. In a data flow diagram, which type of symbol would be used to represent the process of updating the company's inventory records in the system? A) B) C) D) 15) Explain two reasons why it is important to have a working knowledge of DFDs and flowcharting. 16) Which of the following is not true about program flowcharts? A) Program flowcharts are a high-level overview of all business processes. B) Program flowcharts document the processing logic of computer programs. C) A program flowchart will exist for every computer process symbol on a system flowchart. D) Program flowcharts increase computer programmer productivity. 17) Carly Jackson is a staff auditor for KPMG. She has been asked to document the client's existing accounting information system so the engagement team can assess the client's adequacy of controls around financial reporting. She decides to begin by creating a flowchart to describe, analyze, and evaluate internal controls. What documentation tool should she use for this purpose? A) internal control flowchart B) document flowchart C) system flowchart D) dataflow diagram 18) To create a good business process flowchart, one should emphasize ________ and put less emphasis on ________. A) meeting with top management; meeting with staff employees B) following rigid rules on how to prepare a business process flowchart; clearly communicating the activities involved in the process C) clearly communicating the activities involved in the process; following rigid rules on how to prepare a business process flowchart D) meeting with staff employees; meeting with top management 19) A data warehouse A) is primarily used for analysis rather than transaction processing. B) stores transaction processing records in hard copy. C) replaces traditional transaction processing databases. D) increases the speed of transaction processing. 20) The use of a data warehouse in strategic decision making is often referred to as A) business intelligence. B) managerial accounting. C) data analysis. D) analytical modeling. 21) The physical view of a database system refers to A) how a user or programmer conceptually organizes and understands the data. B) how the DBMS accesses data for a certain application program. C) how and where the data are physically arranged and stored. D) how master files store data values used by more than one application program. 22) The ________ is responsible for the database. A) database master B) database manager C) database administrator D) data coordinator 23) Explain the types of attributes that tables possess in a relational database. 24) Helen Fume is a recruiter with The Ladders in Nome, Alaska. The Ladders success is largely attributable to its accounting information system. When a client is hired by an employer, Helen creates a record that identifies the employment relationship. Helen follows up on placements by surveying both employers and clients about the employment experience and then entering the results into the AIS. Clients are uniquely identified by social security number. In records that contain client survey data, the social security number is likely to be A) the primary key. B) a foreign key. C) combined with other data fields to form a primary key. D) null. 25) Which of the following would not be one of the well-structured tables in a well-designed relational database used to generate this sales invoice? A) Customer Order B) Customer C) Sales D) Sales Order 26) Discuss the seven characteristics of useful information. 27) In which transaction cycle would information for borrowing money be most likely to pass between internal and external accounting information systems? A) the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle D) the financing cycle 28) Differentiate between an AIS course and other accounting courses. 29) Which fraud scheme involves stealing customer receipts and applying subsequent customer cash payments to cover the theft? A) kiting B) laundering C) lapping D) bogus expense 30) One fraudulent scheme covers up a theft by creating cash through the transfer of money between banks. This is known as A) lapping. B) misappropriation of assets. C) kiting. D) concealment. 31) Why is computer fraud often much more difficult to detect than other types of fraud? A) because massive fraud can be committed in only seconds, leaving little-to-no evidence B) because most perpetrators invest their illegal income rather than spend it, concealing key evidence C) because most computer criminals are older and more cunning than perpetrators of other types of fraud D) because perpetrators usually only steal very small amounts of money at a time, requiring a long period of time to pass before discovery 32) Describe at least four ways a company can make fraud less likely to occur. 33) ________ is a simple, yet effective, method for catching or preventing many types of employee fraud. A) Requiring all employees to take annual vacations B) Monitoring employee bank accounts and net worth C) Monitoring employee behavior using video cameras D) Explaining that fraud is illegal and will be severely punished to employees 34) Tapping into a communications line and then entering the system by accompanying a legitimate user without their knowledge is called A) superzapping. B) data leakage. C) hacking. D) piggybacking. 35) Data diddling is A) gaining unauthorized access to and use of computer systems, usually by means of a personal computer and a telecommunications network. B) unauthorized copying of company data such as computer files. C) unauthorized access to a system by the perpetrator pretending to be an authorized user. D) changing data before, during, or after it is entered into the system in order to delete, alter, or add key system data. 36) Zeus is an example of a A) virus. B) worm. C) Trojan horse. D) war dialing. 37) Illegally obtaining and using confidential information about a person for economic gain is known as A) eavesdropping. B) identity theft. C) packet sniffing. D) piggybacking. 38) It was late on a Friday afternoon when Makari Polzin got a call at the help desk for Taggart Transcontinental. A man with an edge of panic in his voice was on the phone. "I'm really in a bind and I sure hope that you can help me." He identified himself as John Galt from the Accounting Department. He told Makari that he had to work on a report that was due on Monday morning and that he had forgotten to bring a written copy of his new password home with him. Makari knew that Taggart's new password policy required that passwords be at least fifteen characters long, must contain letters and numbers, and must be changed every sixty days, had created problems. Consequently, Makari provided the password to John. The caller was not John Galt, and Makari was a victim of A) phreaking. B) war dialing. C) identity theft. D) social engineering. 39) What is social engineering? 40) True or False: Identify theft has always been a federal crime