Test bank for Accounting Information Systems, 8th Edition - James A. Hall.rtf

full le at hp://testbankeasy.com Chapter 1—The Information System: An Accountant’s Accountant’s Perspective

TRUE/A!SE 1. Inform Informati ation on is a busine business ss resou resource rce.. ANS: T PTS: 1 2. IT outsou outsourcing rcing is locatio location-in n-indepen dependent dent computing computing.. ANS: F PTS: 1 3. Transaction Transaction processing processing sstems con!ert non-financial transactions into financial transactions. ANS: F PTS: 1 ". Informatio Information n lac#ing lac#ing reliabi reliabilit lit ma ma still still $a!e $a!e !alue. !alue. ANS: F PTS: 1 %. A balance s$eet prepared in conformit &it$ &it$ 'AAP is an e(ample e(ample of discretionar discretionar reporting. ANS: F PTS: 1 ). T$e *anagement *anagement +eporting Sstem pro!ides pro!ides t$e internal financial financial information information needed needed to manage a  business. ANS: T PTS: 1 ,. *ost of t$e inputs inputs to t$e 'eneral 'eneral edger edger Sstem Sstem come from t$e Financia Financiall +eporting +eporting Sstem. Sstem. ANS: F PTS: 1 . /$en preparing preparing discretionar discretionar reports0 organiations can c$oose &$at information information to report report and $o& $o& to  present it. ANS: T PTS: 1 . +etrie!al +etrie!al is t$e tas# tas# of permanentl permanentl remo!in remo!ing g obsolete obsolete or redundant redundant records records from from t$e database. database. ANS: F PTS: 1 1. Sstems Sstems de!elopment de!elopment represen represents ts  to  percent percent of t$e total cost cost of a computer sstem. sstem. ANS: F PTS: 1 11. T$e database database administrator administrator is responsible for t$e securit and integrit integrit of t$e database. database. ANS: T PTS: 1 12. 4ustom 4ustom soft&are soft&are is completel completel finis$ed finis$ed00 tested0 tested0 and read for implement implementatio ation. n. ANS: F PTS: 1 13. T$e internal internal auditor auditor represen represents ts t$e interests interests of t$ird-p t$ird-part art outside outsiders. rs. ANS: F PTS: 1 1". Information Tec$nolog 5IT6 5IT6 audits can be performed performed b bot$ bot$ internal and e(ternal auditors. ANS: T PTS: 1 1%. 4ustom 4ustom soft&are soft&are is t$e most most affordabl affordablee sstems sstems de!elopme de!elopment nt option. option. ANS: F PTS: 1 1). A database is a collection of interconnected interconnected computers and communications communications de!ices de!ices t$at allo&s allo&s users to communicate0 access data and applications0 and s$are information and resources. ANS: F PTS: 1 1,. Sstems Sstems maintenanc maintenancee consumes consumes t$e ma7orit ma7orit of of a sstem8s sstem8s total costs costs.. ANS: T PTS: 1 1. 4loud computing computing is a practice in &$ic$ t$e organiation sells its IT resources resources to a t$ird-part outsourcing outsourcing !endor t$en leases bac# IT ser!ices from t$e !endor for a contract period. ANS: F PTS: 1 1. A potential benefit benefit of cloud computing computing is t$at t$at t$e client firm does not need to #no& &$ere its data data are  bring processed. ANS: F PTS: 1 2. 9ne of t$e t$e greatest disad!antages of database sstems is t$at all data is al&as a!ailable a!ailable to all all users. ANS: F PTS: 1 full le at hp://testbankeasy.com

full le at hp://testbankeasy.com 21. nder S9; legislation public accounting accounting firms are no longer longer allo&ed to pro!ide pro!ide consulting consulting ser!ices to audit clients. ANS: T PTS: 1 22. nder S9; legislation public accounting accounting firms are no longer longer allo&ed to pro!ide pro!ide consulting consulting ser!ices to t$eir clients. ANS: F  N9T PTS: 1 %. Which level level of management management is responsible responsible for controll controlling ing !ayto! !ayto!ay ay opera"on opera"ons? s? a. top top mana manag gemen ementt  b. middle management c. oper operat atio ions ns mana manage geme ment nt d. e(ec e(ecut uti! i!ee mana manage gemen mentt ANS: 4 PTS: 1 ". ocation-independent ocation-independent computing computing in &$ic$ s$ared data centers deli!er $osted $osted IT ser!ices o!er t$e Internet. a. IT outs outso ourc urcing ing  b. Net&or# administration administration c. 4lou 4loud d co compu mputing ting d. 4us 4ustom tom soft soft&a &are re ANS: 4 PTS: 1 &. 'he value value of informa informa"on "on for users users is !etermin !etermine! e! by all of the the following following but but a. rel reliabilit  b. rele!ance c. con!enience d. comp comple lete ten ness ess ANS: 4 PTS: 1 (. )n e*ampl e*ample e of a nonn nonnancia anciall transac" transac"on on is a. sal sale of of pro prod ducts ucts  b. cas$ disbursement c. log log of of cus custo tome merr cal calls ls d. purc purc$a $ase se of in!e in!ent ntor or  full le at hp://testbankeasy.com

full le at hp://testbankeasy.com ANS: 4 PTS: 1 +. )n e*am e*ample ple of of a nanci nancial al trans transac" ac"on on is a. t$e t$e pur purc$ c$as asee of of com compu pute ter  r   b. a supplier8s price list list c. a del deli! i!er er  sc$ sc$ed edul ulee d. an emplo emploee ee benefi benefitt broc$u broc$ure re ANS: A PTS: 1 ,. Which subs subsyst ystem em is not part part of the )ccoun )ccoun"ng "ng -nforma" -nforma"on on ystem ystem? ? a. Trans Transact action ion Proces Processin sing g Sstem Sstem  b. PTS: 1 . 'he ma$or !i0er !i0erence ence between between the inancial inancial epor"ng epor"ng ystem ystem 34 an! an! the 5anagement 5anagement epor"ng epor"ng ystem 354 is the a. F+S pro!ides pro!ides informat information ion to interna internall and e(ternal e(ternal users@ users@ t$e *+S *+S pro!ides pro!ides informat information ion to internal users  b. F+S pro!ides discretionar discretionar information@ t$e *+S pro!ides pro!ides nondiscretionar nondiscretionar information c. F+S reports reports are prepared prepared using using informat information ion pro!ided pro!ided b b t$e 'eneral 'eneral edger edger Sstem@ Sstem@ t$e *+S pro!ides information to t$e 'eneral edger Sstem d. F+S reports reports are prepared prepared in fle(ib fle(ible0 le0 nonstanda nonstandardie rdied d formats@ formats@ t$e *+S reports reports are  prepared in standardied0 standardied0 formal formats ANS: A PTS: 1 16. 'he purpose of the 'ransac"on 7rocessing ystem ystem inclu!es all of the following following e*cept a. con!erting con!erting economic economic e!ents e!ents into into financ financial ial trans transactio actions ns  b. recording financial transactions transactions in t$e accounting accounting records c. distribut distributing ing essentia essentiall information information to operations operations personne personnell to support t$eir t$eir dail operation operationss d. measuring measuring and report reporting ing t$e statu statuss of financial financial resource resourcess and t$e c$anges c$anges in t$ose t$ose resources ANS: = PTS: 1 11. 'he 'ran 'ransac"on sac"on 7rocess 7rocessing ing ystem ystem inclu!es inclu!es all of the followi following ng cycles e*cept e*cept a. t$e t$e re! re!en enu ue cc ccle le  b. t$e administrati!e ccle ccle c. t$e t$e e(pe e(pend ndit itur uree ccl cclee d. t$e t$e con! con!er ersi sion on ccl cclee ANS: > PTS: 1 12. 'he primary primary input input to the 'ran 'ransac"on sac"on 7roces 7rocessing sing yst ystem em is a. a fin finan anci cial al tran transa sact ctio ion n  b. an accounting record c. an acc accou ount ntin ing g rep repor ortt d. a nonfi nonfina nanc ncia iall trans transac acti tion on ANS: A PTS: 1 1%. When !esignin !esigning g the !ata collec"on collec"on ac"vity ac"vity88 which type of !ata !ata shoul! be avoi!e! avoi!e!? ? a. data data t$at t$at is is rel rele! e!an antt  b. data t$at is efficient efficient c. data data t$at t$at is redu redund ndan antt d. data data t$at t$at is accu accura rate te full le at hp://testbankeasy.com

full le at hp://testbankeasy.com ANS: 4 PTS: 1 19. 'he most most basic basic element element of of useful useful !ata !ata in the !atabas !atabase e is a. t$e re record  b. t$e #e c. t$e file d. t$e t$e attr attrib ibut utee ANS: = PTS: 1 1&. -n a !atabase8 !atabase8 a complet complete e set of aribute aributess for a single single occurrence occurrence of an en"ty en"ty class is calle! calle! a. a #e  b. a file c. a record d. a c$aracter  ANS: 4 PTS: 1 1(. 0ec"ve 0ec"ve informa informa"on "on has all of the followi following ng characteris characteris"cs "cs e*cept e*cept a. rele!ance  b. completeness c. sum summar mariat iatio ion n d. structure ANS: = PTS: 1 1+. ;atabase ;atabase management management tasks tasks !o not inclu!e inclu!e a. sum summar mariat iatio ion n  b. storage c. retrie!al d. deletion ANS: A PTS: 1 1,. 'he author !is"nguishes between the )ccoun"ng -nforma"on -nforma"on ystem an! the management -nforma"on -nforma"on ystem base! on a. &$et$er &$et$er t$e t$e transa transaction ctionss are are financia financiall or nonfinan nonfinancial cial  b. &$et$er discretionar or nondiscretionar reports reports are prepared c. t$e t$e end end use users rs of t$e t$e repo report rtss d. t$e organia organiation tional al struct structure ure of t$e t$e busin business ess ANS: A PTS: 1 1. Which ac"vity ac"vity is is not part of the the nance nance func"on? func"on? a. cas$ re receipts  b. portfolio management c. credit d. gene generral led ledger  ger  ANS: = PTS: 1 26. 5arket 5arket research research an! an! a!ver"sin a!ver"sing g are part of of which busine business ss func"on? func"on? a. mate materi rial alss manag managem emen entt  b. finance c. mar#eting d. production ANS: 4 PTS: 1 21. Which func"on func"on manages manages the nancial nancial resourc resources es of the rm through through por