Chapter 1 – ‘Accounting Information Systems: An Overview’ Flashcards
- Data differ from information in which way?
A)Data are output, and information is input.
B) Information is output, and data are input.
C) Data are meaningful bits of information.
D) There is no difference.
B) Information is output, and data are input.
- Which of the following is NOT a characteristic that makes information useful?
a. It is reliable.
b. It is timely.
c. It is inexpensive.
d. It is relevant.
c. It is inexpensive. [Correct. This is NOT one of the information characteristics listed in Table 1-1 on page 4.]
- Which of the following is a primary activity in the value chain?
a. purchasing
b. accounting
c. post-sales service
d. human resource management
c. post-sales service [Correct. Service is a primary activity.]
- Which transaction cycle includes interactions between an organization and its suppliers?
a. revenue cycle
b. expenditure
c. human resources/payroll cycle
d. general ledger and reporting system
b. expenditure [Correct.]
- Which of the following is NOT a means by which information improves decision-making?
a. Increases information overload
b. Reduces uncertainty
c. Provides feedback about the effectiveness of prior decisions
d. identifies situations requiring management action
a. Increases information overload [Correct. Decision makers receiving too much information have difficulty incorporating all of the information into their decision framework, and, as a result, decision quality can be reduced rather than improved.]
- In the value chain concept, upgrading IT is considered what kind of activity?
a. primary activity
b. support activity
c. service activity
d. structured activity
b. support activity [Correct. Technology activities, including investing in IT, are considered a support activity.]
- In which cycle does a company ship goods to customers?
a. production cycle
b. financing cycle
c. revenue cycle
d. expenditure cycle
c. revenue cycle [Correct. The revenue cycle involves interactions between an organization and its customers, such as shipping them goods.]
- Which of the following is a function of an AIS?
a. reducing the need to identify a strategy and strategic position
b. Transforming data into useful information
c. allocating organizational resources
d. automating all decision making
b. Transforming data into useful information [Correct. This is one of the primary functions of an AIS.]
- A firm, its suppliers, and its customers collectively form which of the following?
a. supply chain
b. value chain
c. ERP system
d. AIS
a. supply chain [Correct. The supply chain is made up of the firm, its suppliers, and customers.]
- A report telling how well all approved vendors have performed in the prior 12 months is information that is MOST needed in which business process?
a. Paying vendors
b. Acquiring inventory
c. selling merchandise
d. paying employees
b. Acquiring inventory [Correct. Companies want to acquire inventory from companies that have performed well in the past. A vendor performance report would disclose whether the vendor shipped inventory on time, whether the inventory was of the re- quested quality, whether the prices were as agreed upon, etc.]
