ACCOUNTING INFORMATION SYSTEMS 4TH EDITION BY VERNON RICHARDSON TEST BANK – COMPLETE CHAPTERS 1–17

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TEST BANK FOR
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= Accounting Information Systems, 4th Edition by Vernon Richardson
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= Answers Included
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Chap 01 4e Richardson
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1) Accounting=and=Finance=is=a=primary=activity=in=the=value=chain.=
⊚=true=
⊚=false=
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2) As=of=today,=Accounting=Information=Systems=are=all=computerized.=
⊚=true=
⊚=false=
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3) Business=value=includes=all=those=items,=events=and=interactions=that=determine=the=financial=h
ealth=and=well-being=of=the=firm.=
⊚=true=
⊚=false=
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4) The=Certified=Information=Technology=Professional=(CITP)=is=a=professional=designation=for=t
hose=with=a=broad=range=of=technology=knowledge=and=does=not=require=a=CPA.=
⊚=true=
⊚=false=
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5) The=Certified=Information=Systems=Auditor=(CISA)=is=a=professional=designation=generally=so
ught=by=those=performing=IT=audits.=
⊚=true=
⊚=false=
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6) Information=is=defined=as=being=data=organized=in=a=meaningful=way=that=is=useful=to=the=user.=
⊚=true=
⊚=false=
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7) Data=is=defined=as=being=information=organized=in=a=meaningful=way=that=is=useful=to=the=user.=
⊚=true=
⊚=false=
8) An=AIS=may=create=value=by=giving=access=to=management=information=relevant=to=the=decisio
n=makers.=
⊚=true=
⊚=false=
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9) An=AIS=may=create=value=by=providing=an=internal=control=structure=needed=to=make=sure=the=i
nformation=is=secure,=reliable,=and=free=from=error.=
⊚=true=
⊚=false=
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10) Relevant=information’s=most=defining=characteristic=is=that=it=is=free=from=bias=and=error.=
⊚=true=
⊚=false=
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11) The=characteristics=of=relevant=information=include=predictive=value,=feedback=value=and=
timeliness.=
⊚=true=
⊚=false=
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12) A=faithful=representation=of=the=underlying=event=should=reflect=the=bias=of=the=system=analyst.
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⊚=true=
⊚=false=
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13) Information=overload=is=defined=as=the=difficulty=a=person=faces=in=understanding=a=problem=a
nd=making=a=decision=as=a=consequence=of=too=much=information.=
⊚=true=
⊚=false=
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14) The=main=financial=benefit=of=Customer=Relationship=Management=practices=reduces=the=cost=
of=goods=sold.=
⊚=true=
⊚=false=
15) An=efficient=Enterprise=System=can=significantly=lower=the=cost=of=support=processes=included
=in=sales,=general,=and=administrative=expenses.=


⊚=true=
⊚=false=
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16) An=accounting=information=system=(AIS)=is=defined=as=being=an=information=system=that=recor
ds,=processes=and=reports=on=transactions=to=provide=financial=and=nonfinancial=information=fo
r=decision=making=and=control.=
⊚=true=
⊚=false=
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17) An=enterprise=system=is=a=centralized=database=that=collects=data=from=throughout=the=firm.=Th
is=includes=data=from=orders,=customers,=sales,=inventory=and=employees.=
⊚=true=
⊚=false=
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18) Outbound=logistics=are=the=activities=associated=with=receiving=and=storing=raw=materials=as=w
ell=as=activities=that=transform=these=inputs=into=finished=goods.=
⊚=true=
⊚=false=
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19) Service=Activities=as=defined=in=the=value=chain=are=those=activities=that=provide=the=support=of
=customers=after=the=products=and=services=are=sold=to=them=(e.g.=warranty=repairs,=parts,=instru
ction=manuals,=etc.).=
⊚=true=
⊚=false=
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20) A=well-designed=and=well-
functioning=AIS=can=be=expected=to=create=value=by=providing=relevant=information=helpful=to=
management=to=increase=revenues=and=reduce=expenses.=
⊚=true=
⊚=false=
21) Production=of=a=1040=tax=form=from=the=AIS=to=be=delivered=to=the=Internal=Revenue=Service=i
s=an=example=of=discretionary=information.=
⊚=true=
⊚=false=
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22) Enterprise=Systems=do=not=exist=to=facilitate=decision=making.=
⊚=true=
⊚=false=
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23) The=Sarbanes-
Oxley=Act=of=2002=is=a=federal=law=in=the=United=States=that=set=new=and=enhanced=standards=f
or=all=U.S.=public=companies,=their=management=and=public=accounting=
firms.=
⊚=true=
⊚=false=
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24) CRM=software=often=includes=the=use=of=database=marketing=tools=to=learn=more=about=the=cus
tomers=and=to=develop=strong=firm-to-customer=relationships.=



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⊚=true=
⊚=false=
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25) The=Certified=Information=Technology=Professional=is=the=position=created=by=the=AICPA=to=r
ecognize=CPAs=who=have=the=ability=to=provide=skilled=professional=services=on=Information=
Technology.=
⊚=true=
⊚=false=
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26) Accounting=Information=Systems=which=are=computerized=do=not=need=to=maintain=internal=
controls.=
⊚=true=
⊚=false=
27) Accounting=information=systems:=
A) Are=always=computerized.=
B) Report=only=accounting=information.=
C) Include=records,=processes=and=reports.=D)=Are=for=computer=games.=
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28) Which=of=the=following=is=not=an=attribute=of=useful=information?=
A) Bias.=
B) Feedback=value.=
C) Predictive=value.=D)=Verifiability.=
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29) Which=of=the=following=are=considered=to=be=mandatory=information=required=by=a=regulatory=
body?=
A) Financial=reports=for=the=Securities=and=Exchange=Commission.=
B) The=amount=of=taxes=saved=by=a=merger.=
C) The=total=dollar=value=of=fireworks=that=are=sold=on=July=4.=
D) The=cost=to=build=an=all-new=Starbucks=restaurant=in=Abu=Dhabi.=
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30) The=correct=order=of=effects=in=the=value=chain=are:=
A) Inbound=Logistics=→=Operations=→=Service.=
B) Inbound=Logistics=→=Outbound=Logistics=→=Marketing=&=Sales.=
C) Inbound=Logistics=→=Operations=→=Outbound=Logistics.=D)=Inbound=Logistics=→=Ope
rations=→=Shipping.=
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31) Which=designation=would=be=most=appropriate=for=those=professionals=possessing=IT=audit,=co
ntrol=and=security=skills?=
A) Certified=Internal=Auditor=(CIA).=



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