Chap 1 - Enumeration

Question 1

Internal Information Flows

Answer 1

1. Vertical
2. Horizontal
   a. Downward
   b. Upward

Question 2

Types of transactions

Answer 2

Financial
Nonfinancial

Question 3

Types of Information Systems

Answer 3

AIS
MIS

Question 4

AIS Subsystems

Answer 4

1. TPS
2. GL/FRS
3. MRS

Question 5

External Financial Transactions

Answer 5

1. Sale of goods
2. Purchase of inventory
3. Receipt of Cash
4. Disbursement of Cash

Question 6

Internal Financial Transactions

Answer 6

1. Movement of raw materials to WIP
2. Application of labor and overhead to WIP
3. Transfer of WIP to FG Inv
4. Depreciation

Question 7

Functions of transforming data into information

Answer 7

1. Data Collection
2. Data Processing
3. Data Management
4. Information Generation

Question 8

Processes involved in data collection

Answer 8

1. Capturing transaction
2. Recording data onto forms
3. Validating and editing the data

Question 9

Processes involved into data processing

Answer 9

1. Classifying
2. Transcribing
3. Sorting
4. Batching
5. Merging
6. Calculating
7. Summarizing
8. Comparing

Question 10

Processes in data management

Answer 10

1. Storing
2. Retrieving
3. Deleting

Question 11

Processes in information generation

Answer 11

1. Compiling
2. Arranging
3. Formatting
4. Presenting

Question 12

Characteristics of Useful Information

Answer 12

1. Relevance
2. Timeliness
3. Accuracy
4. Completeness
5. Summarizarion

Question 13

Goal of information system

Answer 13

1. To support stewardship
2. Management decision making
3. Firm day-to-day operations

Question 14

Potential advantages of DDP

Answer 14

1. Cost reduction
2. Improved cost control responsibility
3. Improved user satisfaction
4. Backup of data

Question 15

Potential disadvantages of DDP

Answer 15

1. Loss of Control
2. Mismanagement of company resources
3. Hardware and software incompatibility
4. Redundant tasks and data
5. Consolidating tasks usually segregated
6. Difficulty attracting qualified personnel
7. Lack of standards

Question 16

Data Redundancy Problems

Answer 16

1. Data Storage
2. Data Updating
3. Currency of Information
4. Task-Data Dependency
5. Data Integration

Question 17

REA Model

Answer 17

1. Resources
2. Events
3. Agents
4. Interrelationships

Question 18

Accountant as System Information

Answer 18

1. Users
2. Designers
3. Auditors

Question 19

Accountants as System Information Auditors

Answer 19

1. External
2. Internal
3. IT