ACCT 307 Exam 1 Questions With Complete Answers
100% Pass
Chapter 1
AIS and the Accountant - ANSWER
Which of the following is NOT true about accounting information systems (AISs)?
a. all AIS are computerized
b. AIS may report both financial and nonfinancial information
c. AIS, in addition to collecting and distributing large amounts of data and information,
also organize and store data for future uses
d. a student who has an interest in both accounting and IT, will find many job
opportunities that combine these knowledge and skills areas - ANSWER a. all AIS are
computerized
Which of the following is likely to be information rather than data?
a. sales price
b. customer number
c. net profit
d. employee name - ANSWER c. net profit
With respect to computerized AIS, computers:
,a. turn data into information in all cases
b. make audit trails easier to follow
c. cannot catch mistakes as well as humans
d. do not generally process information more quickly than humans - ANSWER c. cannot
catch mistakes as well as humans
A dashboard is:
a. a computer screen used by data entry
clerks for input tasks
b. a physical device dedicated to AIS processing tasks
c. a summary screen typically used by managers
d. a type of blackboard used by managers to present useful information to others -
ANSWER c. a summary screen typically used by managers
The Sarbanes-Oxley Act of 2002:
a. enables US officers to wiretap corporate phones if required
b. has led to decrease in the amount of work done by auditors and accountants
c. forbids corporations from making personal loans to executives
d. requires the Chief Executive Officer of a public company to take responsibility for the
reliability of its financial statements - ANSWER c. forbids corporations from making
personal loans to executives
The acronym SAR stands for:
, a. simple accounting receipts
b. suspicious accounting revenue
c. suspicious activity reporting
d. standard accounts receivable - ANSWER c. suspicious activity reporting
Which of the following is NOT true regarding assurance services?
a. auditors of public companies are no longer allowed to provide assurance services to
any public company as a result of the Sarbanes-Oxley Act of 2002
b. assurance services include online privacy evaluations
c. activity-based costing is not a type of assurance service
d. only CPAs can provide assurance services to clients - ANSWER d. only CPAs can
provide assurance services to clients
Assigning overhead costs based on the resources, rather than only direct labor, used in
manufacturing is an example of:
a. activity based costing (ABC)
b. budgeting
c. cost-plus accounting
d. financial, rather than managerial, accounting - ANSWER a. activity based costing (ABC)
Which of these acronyms represents a law involving health assurance and privacy?
a. ABC
100% Pass
Chapter 1
AIS and the Accountant - ANSWER
Which of the following is NOT true about accounting information systems (AISs)?
a. all AIS are computerized
b. AIS may report both financial and nonfinancial information
c. AIS, in addition to collecting and distributing large amounts of data and information,
also organize and store data for future uses
d. a student who has an interest in both accounting and IT, will find many job
opportunities that combine these knowledge and skills areas - ANSWER a. all AIS are
computerized
Which of the following is likely to be information rather than data?
a. sales price
b. customer number
c. net profit
d. employee name - ANSWER c. net profit
With respect to computerized AIS, computers:
,a. turn data into information in all cases
b. make audit trails easier to follow
c. cannot catch mistakes as well as humans
d. do not generally process information more quickly than humans - ANSWER c. cannot
catch mistakes as well as humans
A dashboard is:
a. a computer screen used by data entry
clerks for input tasks
b. a physical device dedicated to AIS processing tasks
c. a summary screen typically used by managers
d. a type of blackboard used by managers to present useful information to others -
ANSWER c. a summary screen typically used by managers
The Sarbanes-Oxley Act of 2002:
a. enables US officers to wiretap corporate phones if required
b. has led to decrease in the amount of work done by auditors and accountants
c. forbids corporations from making personal loans to executives
d. requires the Chief Executive Officer of a public company to take responsibility for the
reliability of its financial statements - ANSWER c. forbids corporations from making
personal loans to executives
The acronym SAR stands for:
, a. simple accounting receipts
b. suspicious accounting revenue
c. suspicious activity reporting
d. standard accounts receivable - ANSWER c. suspicious activity reporting
Which of the following is NOT true regarding assurance services?
a. auditors of public companies are no longer allowed to provide assurance services to
any public company as a result of the Sarbanes-Oxley Act of 2002
b. assurance services include online privacy evaluations
c. activity-based costing is not a type of assurance service
d. only CPAs can provide assurance services to clients - ANSWER d. only CPAs can
provide assurance services to clients
Assigning overhead costs based on the resources, rather than only direct labor, used in
manufacturing is an example of:
a. activity based costing (ABC)
b. budgeting
c. cost-plus accounting
d. financial, rather than managerial, accounting - ANSWER a. activity based costing (ABC)
Which of these acronyms represents a law involving health assurance and privacy?
a. ABC
