TEST BANK
Test Bank Accounting Information Systems, 4th Edition
JN
U
R
SE
TEST BANK 1
,Vernon Richardson: Accounting Information Systems,
Answers Included
Chap 01 4e Richardson
(Answers at the end of
every chapter)
1) Accounting and Finance is a primary activity in the value chain.
⊚ true
⊚ false
2) As of today, Accounting Information Systems are all computerized.
⊚ true
⊚ false
3) Business value includes all those items, events and interactions that determine the financial
health and well-being of the firm.
JN
⊚ true
⊚ false
U
4) The Certified Information Technology Professional (CITP) is a professional designation for
those with a broad range of technology knowledge and does not require a CPA.
⊚ true
R
⊚ false
SE
5) The Certified Information Systems Auditor (CISA) is a professional designation generally
sought by those performing IT audits.
⊚ true
⊚ false
6) Information is defined as being data organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
7) Data is defined as being information organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
2
,8) An AIS may create value by giving access to management information relevant to the
decision makers.
⊚ true
⊚ false
9) An AIS may create value by providing an internal control structure needed to make sure the
information is secure, reliable, and free from error.
⊚ true
⊚ false
10) Relevant information’s most defining characteristic is that it is free from bias and error.
⊚ true
⊚ false
JN
11) The characteristics of relevant information include predictive value, feedback value and
timeliness.
U
⊚ true
⊚ false
R
12) A faithful representation of the underlying event should reflect the bias of the system analyst.
SE
⊚ true
⊚ false
13) Information overload is defined as the difficulty a person faces in understanding a problem
and making a decision as a consequence of too much information.
⊚ true
⊚ false
14) The main financial benefit of Customer Relationship Management practices reduces the cost
of goods sold.
⊚ true
⊚ false
3
, 15) An efficient Enterprise System can significantly lower the cost of support processes included
in sales, general, and administrative expenses.
⊚ true
⊚ false
16) An accounting information system (AIS) is defined as being an information system that
records, processes and reports on transactions to provide financial and nonfinancial
information for decision making and control.
⊚ true
⊚ false
17) An enterprise system is a centralized database that collects data from throughout the firm.
This includes data from orders, customers, sales, inventory and employees.
JN
⊚ true
⊚ false
U
18) Outbound logistics are the activities associated with receiving and storing raw materials as
well as activities that transform these inputs into finished goods.
⊚ true
R
⊚ false
SE
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,
instruction manuals, etc.).
⊚ true
⊚ false
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
4
Test Bank Accounting Information Systems, 4th Edition
JN
U
R
SE
TEST BANK 1
,Vernon Richardson: Accounting Information Systems,
Answers Included
Chap 01 4e Richardson
(Answers at the end of
every chapter)
1) Accounting and Finance is a primary activity in the value chain.
⊚ true
⊚ false
2) As of today, Accounting Information Systems are all computerized.
⊚ true
⊚ false
3) Business value includes all those items, events and interactions that determine the financial
health and well-being of the firm.
JN
⊚ true
⊚ false
U
4) The Certified Information Technology Professional (CITP) is a professional designation for
those with a broad range of technology knowledge and does not require a CPA.
⊚ true
R
⊚ false
SE
5) The Certified Information Systems Auditor (CISA) is a professional designation generally
sought by those performing IT audits.
⊚ true
⊚ false
6) Information is defined as being data organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
7) Data is defined as being information organized in a meaningful way that is useful to the user.
⊚ true
⊚ false
2
,8) An AIS may create value by giving access to management information relevant to the
decision makers.
⊚ true
⊚ false
9) An AIS may create value by providing an internal control structure needed to make sure the
information is secure, reliable, and free from error.
⊚ true
⊚ false
10) Relevant information’s most defining characteristic is that it is free from bias and error.
⊚ true
⊚ false
JN
11) The characteristics of relevant information include predictive value, feedback value and
timeliness.
U
⊚ true
⊚ false
R
12) A faithful representation of the underlying event should reflect the bias of the system analyst.
SE
⊚ true
⊚ false
13) Information overload is defined as the difficulty a person faces in understanding a problem
and making a decision as a consequence of too much information.
⊚ true
⊚ false
14) The main financial benefit of Customer Relationship Management practices reduces the cost
of goods sold.
⊚ true
⊚ false
3
, 15) An efficient Enterprise System can significantly lower the cost of support processes included
in sales, general, and administrative expenses.
⊚ true
⊚ false
16) An accounting information system (AIS) is defined as being an information system that
records, processes and reports on transactions to provide financial and nonfinancial
information for decision making and control.
⊚ true
⊚ false
17) An enterprise system is a centralized database that collects data from throughout the firm.
This includes data from orders, customers, sales, inventory and employees.
JN
⊚ true
⊚ false
U
18) Outbound logistics are the activities associated with receiving and storing raw materials as
well as activities that transform these inputs into finished goods.
⊚ true
R
⊚ false
SE
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,
instruction manuals, etc.).
⊚ true
⊚ false
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
4
