quiz 2 identification

Question 1

Who are the primary recipients of financial statement information?

Answer 1

External users, such as stockholders, creditors, and government agencies.

Question 2

Is the Internet standard specifically designed for business reporting and exchange.
Is a freely available and global standard finformationor exchanging business information.
Extensible business reporting language (XBRL) is the financial and operational business
reporting offshoot of Extensible Markup Language (XML)

Answer 2

XBRL(Extensible Business Reporting Language)

Question 3

What are the benefits of XBRL?

Answer 3

Investors will have more time for analysis and insight, and regulatory agencies like the SEC can receive financial information faster to detect and prevent fraud.

Question 4

The entity should be available to classify the important activities, particularly for economic
operations. For each activity and significant event, the entity should ensure that documentation is adequate with respect to operations. Documentation should be complete, accurate and in accordance with the structures and policies of the management.

Answer 4

transaction Authorization

Question 5

The task of updating the general ledger must be separate from all accounting and asset custody responsibility within the organization. Therefore, individuals with access authority to GL accounts should not:
1. Have record-keeping responsibility for special journals or subsidiary ledgers.
2. Prepare journal vouchers.
3. Have custody of physical assets
What is ?

Answer 5

segregation of duties

Question 6

Unauthorized access to the GL accounts can result in errors, fraud, and misrepresentations in
financial statements.

Answer 6

access Controls

Question 7

Accounting records must undergo to an audit trail because it facilitates error prevention and correction when the data files are conveniently and logically organized.

Answer 7

accounting records

Question 8

Provides a formal means for monitoring the function of internal controls.
Applications are discretionary.
Produces the financial and nonfinancial information needed by management to plan and
control its business.

Answer 8

Management Reporting System

Question 9

● Management structures the firm around the tasks it performs rather than around individuals with unique skills.
● It allows specification of the information needed to support the tasks.

Answer 9

Formalization of tasks:

Question 10

● Responsibility is an individual’s obligation to achieve desired results.
● Authority is an individual’s power to make decisions within the limits of that responsibility.
● Managers delegate responsibility and authority downward to subordinates.

Answer 10

Responsibility and authority

Question 11

● The number of subordinates directly under the manager’s control.
● Detailed reports for managers with narrow spans of control.
● Summarized information for managers with broad spans of control.

Answer 11

Span of control

Question 12

● Managers should limit their attention to potential problem areas.
● Reports should focus on changes in key factors that are asymptomatic of potential problems.

Answer 12

Management by exception

Question 13

The problem structure reflects how well the decision maker understands the problem.

Answer 13

Problem Structure

Question 14

Provide information to solve problems that users have anticipated.

Answer 14

Programmed reports:

Question 15

2 subclasses of Programmed Reports:

Answer 15

a. Scheduled- according to established time frame
b. On demand- triggered by events not by passage of times.

Question 16

Implies that every economic event that affects the organization is the responsibility of and can be traced to an individual manager.
Incorporates the fundamental principle that responsibility-area managers are accountable for items that they control.

Answer 16

Responsibility Accounting

Question 17

integrates all functional areas of the organization

Answer 17

Enterprise Resource Planning System

Question 18

processes transaction data from events

Answer 18

Transaction Processing System

Question 19

supports the activities within a specific area

Answer 19

Functional Area Information System

Question 20

supports daily work activities of individuals and groups

Answer 20

Office Automation System

Question 21

mimics human expertise in a particular area and makes decision

Answer 21

Expert System

Question 22

presents structured, summarized about aspects of business

Answer 22

Dashboards

Question 23

enable transactions among organization and between organization and customers

Answer 23

Electronic Commerce System

Question 24

manages flow of products, services and information among organization

Answer 24

Supply Chain Management System

Question 25

⦿ A competitive strategy is a statement that identifies a business's strategies to compete, its goals and the plans and policies that will be required to carry out those goals. ⦿ Through its competitive strategy, an organization seeks a competitive advantage in an industry. That is, it seeks to outperform its competitors in some measure of cost, quality and speed. Competitive advantage helps a company control a market and generate larger-than-average profits.

Answer 25

COMPETITIVE ADVANTAGE AND STRATEGIC INFORMATION SYSTEMS

Question 26

provide a competitive advantage by helping an organization implement its strategic goals and increase its performance and productivity. Any information system that helps an organization gain a competitive advantage or reduces a competitive disadvantage is a strategic information system.

Answer 26

Strategic Information Systems (SISs)

Question 27

The threat that new competitors will enter your market is high when entry is easy and low when significant barriers to entry exist. Entry barrier is a product or service feature that customers have learned to expect from organizations in a certain industry. For most firms, the Web increases the threat that new competitors will enter the market by sharply reducing traditional barriers to entry, such as need for a sales force or a physical storefront to sell goods and services.

Answer 27

The threat of entry of new competitors.

Question 28

Supplier power is high when buyers have a few choices from whom to buy and low when buyers have many choices. The Internet's impact on suppliers is mixed. On the one hand, it enables buyers to find alternative suppliers and compare prices more easily, thereby reducing the bargaining power.

Answer 28

The bargaining power of suppliers.

Question 29

If there are many substitutes for an organization's product or services, the threat of substitutes is high. If there are few substitutes, the threat is low. Information-based industries are in greatest danger from substitutes. Any industry in which digitized information can replace material goods (for example, music, books) must view the Internet as a threat because it can convey this information efficiently and at low cost and high quality. However, companies can create a competitive advantage when there are many substitutes for their products by increasing switching costs.

Answer 29

The threat of substitute products and services.

Question 30

Buyer power is high when buyers have many choices from whom to buy and low when buyers have few choices. In contrast, loyalty programs reduce buyer power. This programs reward customers based on the amount of business they do with a particular organization. Information technology allows companies to track the activities and accounts of millions of customer’s accounts thereby reducing buyer power.

Answer 30

The bargaining power of customers.

Question 31

The threat from rivalry is high when there is intense competition among many firms in an industry. The threat is low when the competition is among fewer firms and is not as intense.

Answer 31

The rivalry among existing firms in the industry.

Question 32

Produce products and/or services at the lowest cost in the industry.

Answer 32

Cost Leadership Strategy.

Question 33

Offer different product features.

Answer 33

Differentiation Strategy.

Question 34

Introduce new products and services, add new features to existing products and services, or develop new ways to produce them.

Answer 34

Innovation strategy.

Question 35

Improve the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals. Such improvements increase quality, productivity, and employee and customer satisfaction while decreasing time to market.

Answer 35

Operational effectiveness strategy.

Question 36

Concentrate on making customers happy. Web-based systems are particularly effective in this area because they can provide a personalized, one-to-one relationship with each customer.

Answer 36

Customer orientation strategy.

Question 38

is a collection of facts such as number, words, measurement, observation, symbol or even just a description of things.

Answer 38

Data

Question 39

: group of 8 bits represent a single character. A byte can be a letter, a number, or a symbol.

Answer 39

Byte

Question 40

(a binary digit): represent the smallest unit of data a computer can process “binary” means that bit can consist only of a 0 or a 1.

Answer 40

Bit

Question 41

: a logical grouping of character into a word, a small group of words, or an identification number. Example, a student’s name in university’s computer files. would appear in the “name” field. Field can also contain an image or any other type of multimedia.

Answer 41

Field

Question 42

: logical grouping of related fields.

Answer 42

Record

Question 43

: group of related records.

Answer 43

File

Question 44

A collection of application programs that perform services for the end-users such as the production of reports. Each program defines and manages its own data. Specific data file is created for each application Data files developed for individual application Application programs are data dependent

Answer 44

FILE BASED APPROACH

Question 45

is a way which data is stored within a computer. It is organize into various chart that are accessed by a variety of computer applications from different location. Create a single data repository to support numerous application. Centralization of information management Data shared by different group of users and application programs Provision of multiple interfaces.

Answer 45

DATABASE APPROACH

Question 46

Data is stored only once, eliminating data redundancy and reducing storage cost.

Answer 46

No data redundancy

Question 47

Because data is in only one place, it requires only a single update, reducing the time and cost of keeping the database current

Answer 47

Single update

Question 48

As users’ information needs expand, the new needs can be more easily satisfied than under the flat file approach.

Answer 48

Task data independence

Question 49

Additional hardware, software, storage and network resources are required, needs specialized professional

Answer 49

More expensive

Question 50

A failure of the system effects all application since all share the data

Answer 50

More difficult to recover from a failure

Question 51

May be inertia or resistance

Answer 51

Because it is so different from the file-oriented approach, the database approach requires training users

Question 52

Sine data is stored only once for each entity we don’t need to worry about updating multiple records for the same entity.

Answer 52

Improved data integrity