,Accounting Information Systems, 11e (Bodnar/Hopwood)
Chapter 1 Accounting Information Systems: An Overview
1) A system is a collection of related resources designed to help a company achieve specified
objectives.
Answer: TRUE
Diff: 1
Learning Obj.: 1
2) Accounting information systems are designed to gather and utilize information which may
cost more to provide than it is worth to the user.
Answer: FALSE
Diff: 2
Learning Obj.: 1
3) The basic goal of accounting information systems is to convert financial data into information.
Answer: TRUE
Diff: 1
Learning Obj.: 1
4) Quick-response systems are essential to the total quality performance movement in business.
Answer: TRUE
Diff: 1
Learning Obj.: 4
5) All data processed and information stored in an accounting information system are mandatory
for financial reporting purposes.
Answer: FALSE
Diff: 2
Learning Obj.: 1
6) A typical CRM contains one common database in which all departments with customer
contact can access and update.
Answer: TRUE
Diff: 1
Learning Obj.: 3
7) A company can use QR codes to provide a convenient way to direct customers to its Web site
by embedding them in advertising, such as magazines or in-store displays.
Answer: TRUE
Diff: 1
Learning Obj.: 4
1
,8) An extended enterprise brings suppliers and customers together in order to meet customer
demand while minimizing supplier costs.
Answer: FALSE
Diff: 1
Learning Obj.: 4
9) Procurement and firm infrastructure are examples of primary business processes.
Answer: FALSE
Diff: 3
Learning Obj.: 1
10) Good documentation means that records should be maintained by all parties involved in a
transaction.
Answer: TRUE
Diff: 1
Learning Obj.: 1
11) Some organizations that use computers to process transactional data must have an
information system function.
Answer: FALSE
Diff: 2
Learning Obj.: 2
12) The operations function allows specialization in areas such as operating systems and
software and communications technology.
Answer: FALSE
Diff: 3
Learning Obj.: 2
13) Cloud computing describes the increasing trend for data processing capabilities to be
provided as a service via the Internet.
Answer: TRUE
Diff: 1
Learning Obj.: 4
14) Most batch processing environments are JIT environments.
Answer: FALSE
Diff: 2
Learning Obj.: 3
15) XBRL is a language that facilitates the exchange of financial statements over the Internet.
Answer: TRUE
Diff: 2
Learning Obj.: 4
2
, 16) External users of accounting information include stockholders, investors, creditors,
government agencies, customers and vendors, competitors, labor unions, and the public at large.
Answer: TRUE
Diff: 1
Learning Obj.: 1
17) A decision support system (DSS) is tailored to the strategic information needs of top-level
management.
Answer: FALSE
Diff: 1
Learning Obj.: 3
18) The AIS benefits of information technology include automation, information organization,
and communication.
Answer: TRUE
Diff: 1
Learning Obj.: 3
19) AIS application architecture currently focuses on automating the traditional accounting cycle.
Answer: FALSE
Diff: 2
Learning Obj.: 3
20) MRP and MRP II software was created to aid in Supply Chain Management (SCM).
Answer: TRUE
Diff: 2
Learning Obj.: 3
21) In CIM systems, computers control management-designed parts of the manufacturing
process.
Answer: FALSE
Diff: 2
Learning Obj.: 3
22) Flexible manufacturing systems can be reprogrammed to produce entirely different products.
Answer: TRUE
Diff: 1
Learning Obj.: 4
23) The process management approach aids in the management and improvement of a company's
processes in order to increase customer satisfaction while ignoring the company's cost structure.
Answer: FALSE
Diff: 2
Learning Obj.: 4
3
Chapter 1 Accounting Information Systems: An Overview
1) A system is a collection of related resources designed to help a company achieve specified
objectives.
Answer: TRUE
Diff: 1
Learning Obj.: 1
2) Accounting information systems are designed to gather and utilize information which may
cost more to provide than it is worth to the user.
Answer: FALSE
Diff: 2
Learning Obj.: 1
3) The basic goal of accounting information systems is to convert financial data into information.
Answer: TRUE
Diff: 1
Learning Obj.: 1
4) Quick-response systems are essential to the total quality performance movement in business.
Answer: TRUE
Diff: 1
Learning Obj.: 4
5) All data processed and information stored in an accounting information system are mandatory
for financial reporting purposes.
Answer: FALSE
Diff: 2
Learning Obj.: 1
6) A typical CRM contains one common database in which all departments with customer
contact can access and update.
Answer: TRUE
Diff: 1
Learning Obj.: 3
7) A company can use QR codes to provide a convenient way to direct customers to its Web site
by embedding them in advertising, such as magazines or in-store displays.
Answer: TRUE
Diff: 1
Learning Obj.: 4
1
,8) An extended enterprise brings suppliers and customers together in order to meet customer
demand while minimizing supplier costs.
Answer: FALSE
Diff: 1
Learning Obj.: 4
9) Procurement and firm infrastructure are examples of primary business processes.
Answer: FALSE
Diff: 3
Learning Obj.: 1
10) Good documentation means that records should be maintained by all parties involved in a
transaction.
Answer: TRUE
Diff: 1
Learning Obj.: 1
11) Some organizations that use computers to process transactional data must have an
information system function.
Answer: FALSE
Diff: 2
Learning Obj.: 2
12) The operations function allows specialization in areas such as operating systems and
software and communications technology.
Answer: FALSE
Diff: 3
Learning Obj.: 2
13) Cloud computing describes the increasing trend for data processing capabilities to be
provided as a service via the Internet.
Answer: TRUE
Diff: 1
Learning Obj.: 4
14) Most batch processing environments are JIT environments.
Answer: FALSE
Diff: 2
Learning Obj.: 3
15) XBRL is a language that facilitates the exchange of financial statements over the Internet.
Answer: TRUE
Diff: 2
Learning Obj.: 4
2
, 16) External users of accounting information include stockholders, investors, creditors,
government agencies, customers and vendors, competitors, labor unions, and the public at large.
Answer: TRUE
Diff: 1
Learning Obj.: 1
17) A decision support system (DSS) is tailored to the strategic information needs of top-level
management.
Answer: FALSE
Diff: 1
Learning Obj.: 3
18) The AIS benefits of information technology include automation, information organization,
and communication.
Answer: TRUE
Diff: 1
Learning Obj.: 3
19) AIS application architecture currently focuses on automating the traditional accounting cycle.
Answer: FALSE
Diff: 2
Learning Obj.: 3
20) MRP and MRP II software was created to aid in Supply Chain Management (SCM).
Answer: TRUE
Diff: 2
Learning Obj.: 3
21) In CIM systems, computers control management-designed parts of the manufacturing
process.
Answer: FALSE
Diff: 2
Learning Obj.: 3
22) Flexible manufacturing systems can be reprogrammed to produce entirely different products.
Answer: TRUE
Diff: 1
Learning Obj.: 4
23) The process management approach aids in the management and improvement of a company's
processes in order to increase customer satisfaction while ignoring the company's cost structure.
Answer: FALSE
Diff: 2
Learning Obj.: 4
3