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AIS MCQ CHAPTER 1-8 > Chapter 1 MCQ > Flashcards

Chapter 1 MCQ Flashcards

1
Q

The “S” in the acronym “AIS” stands for:
a) Standard
b) System
c) Symbol
d) none of these

A

B

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2
Q

Which of the following is true?
a) An AIS must be computerized to be useful
b) An AIS always produces useful information
c) An AIS always produces financial information
d) none of these

A

D

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3
Q

The letter “P” in the acronym “ERP” stands for:
a) Production
b) Planning
c) Project
d) none of these

A

B

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4
Q

Which of the following is true about the terms “data” and “information” within the context of Chapter 1?
a) These terms are exactly the same
b) These terms are exact opposites
c) Some “data” can also be “information”
d) none of these

A

C

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5
Q

If a manager suffers “information overload”:

a) He or she must press the reset button on his or her computer
b) It means that this person needs a larger hard drive
c) The “information” is really data
d) He or she must forget some facts in order to remember others

A

C

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6
Q

Which of the following captures the same idea as the term “GIGO?”

a) Computers cannot turn straw into gold
b) Too much information is the same as garbage
c) Great investments lead to great returns
d) Too many cooks spoil the broth

A

A

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7
Q

Which of the following best describes a data warehouse as discussed in Chapter 1?

a) A repository of historical information from one accounting application
b) A repository of historical information from a set of accounting applications
c) A repository of information from many business applications—some not accounting
d) A repository of information from many businesses in the same industry

A

C

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8
Q

Most AISs perform all of these functions except:
a) Collect raw accounting data
b) Store accounting data for future use
c) Process data into useful information
d) AISs perform all of these functions

A

D

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9
Q

As used in the chapter, the term “knowledge workers”:

a) Are blue collar workers in non-managerial positions
b) Are the same as delivery clerks
c) Include most accountants
d) Does not include most accountants

A

C

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10
Q

All of the following are possible uses of AIS or accounting personnel that were discussed in the chapter except:

a) Countering terrorism
b) Foiling future accounting scandals
c) Providing assurance services
d) Performing monetary exchanges

A

D

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11
Q

Suspicious activity reporting: IS SECTION PATRIOT ACT MANDATE

a) Only applies to banking transactions
b) Is mandated by state, but not federal, regulations
c) Is mostly concerned with embezzlement issues
d) Is a requirement under the Sarbanes-Oxley Law of 2002
e) none of these

A

E

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12
Q

Which of these would be considered suspicious activities under current SAR rules?
a) Money laundering
b) Bribing officials
c) Transferring money to suspected terrorists
d) all of these

A

D

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13
Q

Which of these businesses is not required to report suspicious activities under current federal laws?
a) Banks
b) Money service organizations
c) Commodity Traders
d) Mutual fund dealers
e) Race tracks

A

E

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14
Q

Which of these statements best describes the relationship between “AISs” and “countering terrorism?”
a) These are completely independent items; there is no relationship
b) AISs can help counter terrorism using data warehouses
c) AISs can help by denying financial aid to terrorist groups d) AISs can help by identifying international embezzlers

A

C

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15
Q

Bernard Madoff is most closely associated with which of the following terms?
a) The father of activity-based costing systems
b) SAR
c) Ponzi scheme
d) Sarbanes-Oxley Act of 2002
e) Key sponsor of the Patriot Act

A

C

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16
Q

Many accountants feel that the most important part of the Sarbanes-Oxley Act is:

a) Its anti-terrorist provisions
b) Its provisions requiring the reporting of suspicious activities
c) Section 404 on internal controls
d) Section 505 on money laundering

A

C

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17
Q

The U.S. Patriot act:

a) Requires banks to monitor their accounts in foreign institutions for fraud
b) Prohibits companies from lending money to corporate executives
c) Only applies to publicly-traded companies
d) all of these are correct

A

A

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18
Q

A good performance measurement system should evaluate:
a) Profitability only
b) Customer satisfaction only
c) Those aspects of a unit’s performance that are subject to its control
d) Those aspects of a unit’s performance whether controllable or not

A

C

19
Q

The managerial accounting component of the accounting subsystem contains all butwhich one of the following functions:

a) Cost accounting
b) Financial accounting
c) Budgeting
d) Systems study

A

B

20
Q

Managerial accounting principally provides information to:

a) Stockholders
b) Government regulators (e.g., SEC, Federal bank examiners)
c) Internal company management
d) Potential creditors

A

C

21
Q

The process by which a financial transaction is recorded so that its flow through the system can be followed is called:
a) Financial shadowing
b) Managerial trace technique
c) Concatenation
d) An audit trail

A

D

22
Q

Which of the following accounting functions has been automated by most companies’ information processing subsystems?

a) Posting to ledgers
b) Recording journal entries
c) Preparing trial balances
d) all of the above

A

D

23
Q

The accounting subsystem must continually interact with the:

a) Personnel subsystem
b) Information processing subsystem
c) Production subsystem
d) Only information processing and production subsystems
e) all of the above

A

E

24
Q

What has been the effect on accountants in those organizations which have computerized their data processing functions?

a) The need for accountants has disappeared
b) The accountants have become “pure” bookkeepers
c) The accountants have become involved in more decision-making activities
d) The accountants’ decision-making activities have drastically declined

A

C

25
Q

What is the first step to be performed by most organizations in their accounting cycles?

a) Recording business transactions in a journal
b) Preparing a trial balance
c) Recording closing entries in a journal
d) Preparing transaction source documents
e) none of the above

A

D

26
Q

Which of these is a business reporting language often used in recording or transmitting accounting data?
a) XBRL
b) XFile
c) ABC
d) Accounting Live

A

A

27
Q

Which of the following is not true regarding professional service firms?

a) The SEC is in favor of professional service firms expanding their businesses to include consulting services
b) As a result of the corporate bankruptcies and accounting scandals in 2002, professional service firms no longer perform any consulting services
c) Professional service firms generally offer a variety of assurance services, including providing assurance over AISs
d) In the early 2000’s, many large professional service firms sold off the majority of their consulting practices

A

D

28
Q

The principal cause for more timely performance reports in the typical modern organization is due to:

a) Better educated management
b) Adoption of progressive management philosophies which stress participative management (e.g., MBO)
c) Information processing systems
d) Need for less information

A

C

29
Q

The P in the acronym KPI stands for:

a) Processing
b) Performance
c) Planning
d) Personnel
e) none of these

A

B

30
Q

For performance reports to achieve their control objectives, they must:

a) Include relevant information so that necessary action may be taken to accomplish organizational goals
b) Be timely so that minimal time elapses between an activity’s occurrence and the feedback reflecting the activity’s efficient or inefficient performance
c) Provide subsystem managers with suggestions as to how they can operate their subsystems more efficiently
d) all of the above
e) a and b only

A

A

31
Q

Historically, financial data used in one application was not easily transferable to other applications. However, the problem was fixed with which one of the following?

a) XMP
b) ERP
c) XBRL
d) XMLP

A

B

32
Q

“Excessive data reporting” can result in:

a) Massive quantities of data printed out by a company’s computer
b) The generation of unnecessary reports
c) Subsystem managers’ belief that it is a status symbol to receive large numbers of internally generated reports
d) Inefficient subsystem manager decision making due to a lack of relevant information being availabl
e) all of the above

A

B

33
Q

An example of an assurance service for a company engaged in electronic commerce is:

a) XBRL
b) Trust US
c) CITP
d) CPA Trust Services

A

D

34
Q

Which of the following is not a component of the balanced scorecard?

a) Customer knowledge
b) Internal business processes
c) Transaction processing
d) Financial performance

A

C

35
Q

Which of the following best describes assurance services?

a) Auditors are desperate to offer assurance services so that they will still have business in the future
b) Assurance and auditing are closely related
c) Assurance is a guarantee that there is no fraud in a company
d) There are no likely assurance services that CPAs can offer that do not requireaccountants to be well-trained in information technology

A

B

36
Q

Information systems auditors are:

a) Auditors who are concerned with analyzing risks associated with computerized information systems
b) Individuals who often work closely with financial auditors
c) Auditors who have a lot of technical expertise related to information technology
d) all of the above

A

D

37
Q

Which of these is a certification that accountants can earn that focuses on proficiency in information technology?

a) CPA
b) CMA
c) CISA
d) CITP

A

D

38
Q

The designation for a licensed information systems audit professional is:
a) CPA
b) CMA
c) CIA
d) CISA

A

D

39
Q

The certified information systems auditor certification is sponsored by:
a) ISACA
b) AICPA
c) IMA
d) none of these

A

A

40
Q

Which of the following best describes “predictive analytics”?

a) It is a method auditors use to predict when managers might have a weak internal control system
b) It is a technique that uses data stored in data warehouses to create systems that allow managers to use their data to improve performance
c) It is a method used to prevent managers from overriding internal controls
d) none of the above

A

B

41
Q

Which of the following describes “cloud computing”?

a) It is a is a way of using business applications over the Internet
b) It is an internal business process over the organizations intranet
c) It is an internal business process over the organizations extranet
d) none of these

A

A

42
Q

Which one of the following best describes the performance elements contained in most balanced scorecards? Financial Performance Measures, Nonfinancial Performance Measures
a) No, No
b) No, Yes
c) Yes, No
d) Yes, Yes

A

D

43
Q

The balanced scorecard provides an action plan for achieving competitive success by focusing management attention on critical success factors. Which one of the following isnot one of the competitive success factors commonly focused upon in the balanced scorecard?

a) Competitor business strategies
b) Financial performance measures
c) Internal business processes
d) Employee innovation and learning

A

A

AIS MCQ CHAPTER 1-8 (5 decks)

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