Chapter j1: jAccounting jInformation jSystems jand jFirm jValue
Multiple jChoice jQuestions
1. (LO j1-1) jAccounting jinformation jsystems
a. are jalways jcomputerized.
b. report jonly jfinancially jrelated jinformation.
c. are jinformation jsystems jthat jrecord, jprocess, jand jreport jon jtransactions jto
jprovide jfinancial jand jnonfinancial jinformation jfor jdecision jmaking jand jcontrol.
d. require ja jCITP jdesignation jto junderstand.
Answer: jC
2. (LO j1-1) jWhich jof jthe jfollowing jis ja jcharacteristic jof jrelevance?
1
, a. Materiality
b. Timeliness
c. Verifiable
d. Cost jto
jgenerate jAnswer: jA
3. (LO j1-2) jWhich jof jthe jfollowing jis jconsidered jto jbe jmandatory jinformation jrequired
jby ja jregulatory jbody?
a. 10-Q jsubmission jto jthe jSecurities jand jExchange jCommission
b. The jcost jto jproduce ja jSamsung jGalaxy
c. The jnumber jof jorganic jbananas jthat jare jsold jat jWhole jFoods jon jJuly j28
d. The jcost jto jbuild jan jall-new jStarbucks jrestaurant jin jShenzhen,
jChina jAnswer: jA
4. (LO j1-4) jThe jcorrect jorder jof jevents jin jthe jvalue jchain jis
a. Inbound jlogistics j➛ jOperations j➛ jService.
b. Inbound jlogistics j➛ jOutbound jlogistics j➛ jMarketing jand jsales.
c. Inbound jlogistics j➛ jOperations j➛ jOutbound jlogistics.
d. Inbound jlogistics j➛ jOperations j➛ jMarketing jand jSales.
Answer: jC
5. (LO j1-8) jWhich jsystem jcontributes jinformation jon jdirect jlabor jto ja jcost jaccounting jsystem?
a. Supply jchain jmanagement jsystem j(SCMS)
b. Financial jreporting jsystem j(FRS)
c. Customer jRelational jManagement jSystem j(CRM)
2
, d. Human jresource jmanagement jsystem
j(HRMS) jAnswer: jD
6. (LO j1-7) jA jsupply jchain
a. supplies jjewelry jchains.
b. refers jto jthe jflow jof jmaterials, jinformation, jpayments, jand jservices.
c. is jsimilar jin jfunction jand jpurpose jto jthe jvalue jchain.
d. does jnot japply jto ja jservice jfirm jlike jan jaccounting jfirm.
Answer: jB
7. (LO j1-7) jCustomer jrelationship jmanagement jsoftware jdoes jnot jinclude jinformation jabout
a. current jcustomers.
b. prospective jcustomers.
c. former jcustomers.
d. current jemployees.
Answer: jD
8. (LO j1-6) jAn jinformation jsystem jthat jmeasures jand jrecords jaccounting jtransactions
jand jreports jthem jin jthe jfinancial jstatements jis jcalled ja
a. financial jreporting jsystem j(FRS).
b. enterprise jsystem j(ES).
c. manufacturing jsystem j(MS).
d. cost jaccounting jsystem.
Answer: jA
9. (LO j1-3) jWhat jis jthe jname jof jthe jposition jfor ja jperson jresponsible jfor
jdetermining jInformation jneeds jof ja jbusiness jand jdesigning ja jsystem jto jmeet
jthose jneeds?
a. Chief jinformation jofficer
b. Controller
c. IT jauditor
d. Systems janalyst
jAnswer: jD
10. (LO j1-9) jThe jbalance jsheet jaccount jmost jlikely jaffected jby jan jAIS jinvestment jin
jsupply jchain jmanagement jsoftware jwould jbe
a. inventories.
b. fixed jassets.
c. cash jand jcash jequivalents.
3
, d. unearned jrevenue.
Answer: jA
11. (LO j1-7) jThe jsoftware/system jthat jhelps jmake jsure jthe jretail jfirm jdoesn’t jhave ja jstockout jis
a. supply jchain jmanagement jsoftware.
b. customer jrelationship jmanagement j software.
c. enterprise jsystems.
d. human jresource jsystems.
Answer: jA
12. (LO j1-9) jData janalytics jperformed jto jidentify jthe jmost jprofitable jcustomers jwould
jbe jmost jlikely jto jaffect jwhich jincome jstatement jaccount?
a. Selling, jgeneral, jand jadministrative jexpenses j(SG&A)
b. Interest jexpense
c. Revenues
d. Cost jof jgoods
jsold jAnswer: jC
13. (LO j1-7, jLO j1-9) jCustomer jrelationship jmanagement jsystems jwould jgenerally jbe
jconsidered jto jbe jan
a. internal jbusiness jprocess.
b. external jbusiness jprocess.
c. interior jbusiness jprocess.
d. exterior jbusiness jprocess.
Answer: jB
14. (LO j1-3) jAn jauditor jtesting jinternal jcontrols jwould jgenerally jbe jconsidered jto jfill
jwhich jrole jwith jrespect jto jaccounting jinformation jsystems?
a. User
b. Manager
c. Designer
d. Evaluator
jAnswer: jD
15. (LO j1-2) jWhich jof jthese jrepresents jthe jproper jtransformation jfrom jdata jto
jdecision jaccording jto jthe jinformation jvalue jchain?
a. Data j➛ jInformation j➛ jKnowledge j➛ jDecision
b. Data j➛ jKnowledge j➛ jInformation j➛ jDecision
4
Multiple jChoice jQuestions
1. (LO j1-1) jAccounting jinformation jsystems
a. are jalways jcomputerized.
b. report jonly jfinancially jrelated jinformation.
c. are jinformation jsystems jthat jrecord, jprocess, jand jreport jon jtransactions jto
jprovide jfinancial jand jnonfinancial jinformation jfor jdecision jmaking jand jcontrol.
d. require ja jCITP jdesignation jto junderstand.
Answer: jC
2. (LO j1-1) jWhich jof jthe jfollowing jis ja jcharacteristic jof jrelevance?
1
, a. Materiality
b. Timeliness
c. Verifiable
d. Cost jto
jgenerate jAnswer: jA
3. (LO j1-2) jWhich jof jthe jfollowing jis jconsidered jto jbe jmandatory jinformation jrequired
jby ja jregulatory jbody?
a. 10-Q jsubmission jto jthe jSecurities jand jExchange jCommission
b. The jcost jto jproduce ja jSamsung jGalaxy
c. The jnumber jof jorganic jbananas jthat jare jsold jat jWhole jFoods jon jJuly j28
d. The jcost jto jbuild jan jall-new jStarbucks jrestaurant jin jShenzhen,
jChina jAnswer: jA
4. (LO j1-4) jThe jcorrect jorder jof jevents jin jthe jvalue jchain jis
a. Inbound jlogistics j➛ jOperations j➛ jService.
b. Inbound jlogistics j➛ jOutbound jlogistics j➛ jMarketing jand jsales.
c. Inbound jlogistics j➛ jOperations j➛ jOutbound jlogistics.
d. Inbound jlogistics j➛ jOperations j➛ jMarketing jand jSales.
Answer: jC
5. (LO j1-8) jWhich jsystem jcontributes jinformation jon jdirect jlabor jto ja jcost jaccounting jsystem?
a. Supply jchain jmanagement jsystem j(SCMS)
b. Financial jreporting jsystem j(FRS)
c. Customer jRelational jManagement jSystem j(CRM)
2
, d. Human jresource jmanagement jsystem
j(HRMS) jAnswer: jD
6. (LO j1-7) jA jsupply jchain
a. supplies jjewelry jchains.
b. refers jto jthe jflow jof jmaterials, jinformation, jpayments, jand jservices.
c. is jsimilar jin jfunction jand jpurpose jto jthe jvalue jchain.
d. does jnot japply jto ja jservice jfirm jlike jan jaccounting jfirm.
Answer: jB
7. (LO j1-7) jCustomer jrelationship jmanagement jsoftware jdoes jnot jinclude jinformation jabout
a. current jcustomers.
b. prospective jcustomers.
c. former jcustomers.
d. current jemployees.
Answer: jD
8. (LO j1-6) jAn jinformation jsystem jthat jmeasures jand jrecords jaccounting jtransactions
jand jreports jthem jin jthe jfinancial jstatements jis jcalled ja
a. financial jreporting jsystem j(FRS).
b. enterprise jsystem j(ES).
c. manufacturing jsystem j(MS).
d. cost jaccounting jsystem.
Answer: jA
9. (LO j1-3) jWhat jis jthe jname jof jthe jposition jfor ja jperson jresponsible jfor
jdetermining jInformation jneeds jof ja jbusiness jand jdesigning ja jsystem jto jmeet
jthose jneeds?
a. Chief jinformation jofficer
b. Controller
c. IT jauditor
d. Systems janalyst
jAnswer: jD
10. (LO j1-9) jThe jbalance jsheet jaccount jmost jlikely jaffected jby jan jAIS jinvestment jin
jsupply jchain jmanagement jsoftware jwould jbe
a. inventories.
b. fixed jassets.
c. cash jand jcash jequivalents.
3
, d. unearned jrevenue.
Answer: jA
11. (LO j1-7) jThe jsoftware/system jthat jhelps jmake jsure jthe jretail jfirm jdoesn’t jhave ja jstockout jis
a. supply jchain jmanagement jsoftware.
b. customer jrelationship jmanagement j software.
c. enterprise jsystems.
d. human jresource jsystems.
Answer: jA
12. (LO j1-9) jData janalytics jperformed jto jidentify jthe jmost jprofitable jcustomers jwould
jbe jmost jlikely jto jaffect jwhich jincome jstatement jaccount?
a. Selling, jgeneral, jand jadministrative jexpenses j(SG&A)
b. Interest jexpense
c. Revenues
d. Cost jof jgoods
jsold jAnswer: jC
13. (LO j1-7, jLO j1-9) jCustomer jrelationship jmanagement jsystems jwould jgenerally jbe
jconsidered jto jbe jan
a. internal jbusiness jprocess.
b. external jbusiness jprocess.
c. interior jbusiness jprocess.
d. exterior jbusiness jprocess.
Answer: jB
14. (LO j1-3) jAn jauditor jtesting jinternal jcontrols jwould jgenerally jbe jconsidered jto jfill
jwhich jrole jwith jrespect jto jaccounting jinformation jsystems?
a. User
b. Manager
c. Designer
d. Evaluator
jAnswer: jD
15. (LO j1-2) jWhich jof jthese jrepresents jthe jproper jtransformation jfrom jdata jto
jdecision jaccording jto jthe jinformation jvalue jchain?
a. Data j➛ jInformation j➛ jKnowledge j➛ jDecision
b. Data j➛ jKnowledge j➛ jInformation j➛ jDecision
4
