Test Bank Complete_
Accounting Information Systems: Understanding Business Processes 4th Edition
By Derek Speer, Alison Parkes, Yvette Blount, Brett Considine & Karin Olesen
All Chapters 1-16| 4 Units| Updated Version With Verified Answers| Rated A+
From: [Bestmaxsolutions.stuvia
,PART 1: SYSTEMS FUNDAMENTALS _______________________________________________ 3
Chapter 1: Introduction _____________________________________________________________ 3
PART 2: SYSTEMS CHARACTERISTICS AND CONSIDERATIONS _________________________ 36
Chapter 2: Business processes _______________________________________________________ 36
Chapter 3: Database Concepts I ______________________________________________________ 66
Chapter 4: Database Concepts II _____________________________________________________ 92
Chapter 5: XBRL Reporting _________________________________________________________ 116
Chapter 6: Systems documentation _________________________________________________ 142
Chapter 7: Internal Controls I ______________________________________________________ 169
Chapter 8: Internal Controls II ______________________________________________________ 196
PART 3: SYSTEMS IN ACTION __________________________________________________ 221
Chapter 9: Transaction Cycle -- The Revenue Cycle _____________________________________ 221
Chapter 10: Transaction Cycle -- The Expenditure Cycle__________________________________ 247
Chapter 11: Transaction Cycle -- The Production Cycle __________________________________ 273
Chapter 12: Transaction Cycle -- The HR Management And Payroll Cycle ____________________ 298
Chapter 13: Transaction Cycle -- The General Ledger And Financial Reporting Cycle ___________ 324
Chapter 14: Systems Development __________________________________________________ 350
PART 4: SYSTEMS ISSUES _____________________________________________________ 378
Chapter 15: Auditing and governance of accounting information systems ___________________ 378
Chapter 16: Ethics and cybercrime __________________________________________________ 403
,PART 1: SYSTEMS FUNDAMENTALS
Chapter 1: Introduction
Brett Considine: Accounting Information Systems: Understanding Business Processes 4th Edition, Test Bank
MULTIPLE CHOICE QUESTIONS
1. The Role Of The Accountant Has Changed In Recent Times Because:
A. Professional Bodies Have Sought To Redefine And Reposition The Accounting
Function.
*B. Computer Systems Have Emerged To Handle The Classification And Recording
Tasks Traditionally Associated With The Accounting Function.
C. The Accounting Cycle Is Too Complex And Involved To Be Performed Solely By The
Accountant.
D. Knowledge Workers Have Increasingly Replaced Accountants In The Performance Of
Recording And Classification Tasks.
CORRECT ANSWER: B
The Rise Of Computer Systems And Automation Has Shifted The Role Of Accountants.
Instead Of Focusing On Traditional Tasks Such As Classification And Recording,
Accountants Now Play A More Strategic Role, Using Technology To Analyze And
Interpret Financial Data. This Shift Allows Accountants To Focus On Value-Added
Activities Rather Than Manual Tasks.
Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
2. As Computer Systems Have Been Developed To Perform The Recording And
Classification Tasks Associated With Business Activities, The Nature Of Accounting
And The Work Of The Accountant Have Also Been Pushed In A New Direction.
Increasingly, The Role Of The Accountant Is Seen To Be To:
,A. Use Computer Programs Rather Than Manual Journals.
B. Ensure That Businesses Invest In New Software.
*C. Add Value And Provide And Interpret Information For An Organization.
D. Outsource Accounting Work To Bookkeepers.
CORRECT ANSWER: C
With Advancements In Technology, The Role Of The Accountant Has Evolved. Rather
Than Just Recording Transactions, Accountants Now Focus On Analyzing Data,
Providing Strategic Insights, And Adding Value To Organizations By Interpreting
Information To Support Decision-Making And Business Strategy.
Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
3. The ICAA Requires That Its Members Should Bring Their Analytic Expertise To
Several Fields. Which One Of The Following Field Is NOT Specified By The ICAA?
A. Strategic Planning And Change Management.
B. Market Analysis And Compliance.
C. The Use Of Information Technology.
*D. Human Resource Management.
CORRECT ANSWER: D
The ICAA (Institute Of Chartered Accountants In Australia) Focuses On Fields Directly
Related To Accounting, Finance, And Strategic Business Operations. Human Resource
Management, While Important, Is Not One Of The Specific Fields That Accountants Are
Required To Specialize In According To The ICAA.
Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
4. What Does ERP Stand For?
,*A. Enterprise Resource Planning
B. Enterprise Resource Package
C. Electronic Resource Planning
D. Electronic Resource Package
CORRECT ANSWER: A
ERP Stands For Enterprise Resource Planning. It Refers To Integrated Software Systems
Used By Organizations To Manage And Automate Core Business Processes Such As
Finance, HR, Manufacturing, And Supply Chain Management. These Systems Help
Streamline Operations And Provide Valuable Insights Into Business Performance.
Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
5. Which Of The Following Statements Is NOT A Major Reason Of Why Accountants Of
The Twenty-First Century Must Be Comfortable With Information Systems Concepts?
A. Computer Systems Are Playing An Increasing Part In The Management And
Functioning Of The Organization.
B. Accountants Are Increasingly Exposed To And Working With Technology And
Information Systems.
C. Accountants Need To Know How Computers Manage Knowledge And Its Data
Resources.
*D. Accountants Need To Lead And Oversee The Design Of An Accounting Information
System.
CORRECT ANSWER: D
While Accountants Must Be Comfortable With Information Systems, They Are Not
Typically Responsible For Leading And Overseeing The Design Of Accounting
Information Systems. Instead, They Work With Systems That Are Already Designed,
Ensuring They Are Used Effectively For Decision-Making And Reporting Purposes.
,Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
6. Information Is:
A. The Same As Data.
*B. Data That Has Been Processed And Converted.
C. Less Useful Than Data.
D. Raw Facts Describing An Event.
CORRECT ANSWER: B
Information Is Data That Has Been Processed, Organized, And Interpreted To Provide
Meaning. Data On Its Own Is Raw And Unorganized, While Information Is Data That Is
Valuable And Useful For Decision-Making.
Learning Objective 1.2 ~ Define And Describe Information
7. What Is Information Overload?
A. The Situation Where A Computer Has More Information Than Is Needed Or Is Able
To Be Processed In A Meaningful Way When A Computer Program Is Executed.
*B. The Situation Where An Individual Has More Information Than Is Needed Or Is
Able To Be Processed In A Meaningful Way When Working Through A Decision.
C. The Situation Where A Computer Has More Information Than Is Needed Or Is Able
To Be Processed When Data Storage Is Taking Place.
D. The Situation Where The Amount Of Information Exceeds The Storage Capacity Of
The Brain Of A Human Being.
CORRECT ANSWER: B
Information Overload Occurs When Individuals Are Exposed To More Information Than
They Can Process Or Use Effectively. In The Modern Business World, This Often
,Happens Due To The Abundance Of Data Available, Making It Challenging To Extract
Relevant And Actionable Insights.
Learning Objective 1.2 ~ Define And Describe Information
8. Which Of The Following Statements Best Indicates The Difference Between Data And
Information:
A. Information And Data Are The Same.
B. Information Is Less Useful Than Data.
C. Information Is Always Useful Whereas Data Is Only Sometimes Useful.
*D. Information Is Data That Has Been Processed And Converted
CORRECT ANSWER: D
The Key Difference Between Data And Information Is That Information Is Data That Has
Been Processed Or Organized To Make It Meaningful. Raw Data Alone May Not
Provide Insights, But When It Is Converted Into Information, It Becomes Useful For
Decision-Making
Learning Objective 1.2 ~ Define And Describe Information
9. The Following Message Box Appears When Entering A Customer Order Into A Sales
System:
This Is An Example Of:
A. Input
, B. Process
C. Output
*D. Feedback
CORRECT ANSWER: D
Feedback In A System Refers To The Information That Is Sent Back To The User To
Help Guide Their Actions Or Confirm Their Inputs. In This Case, The Message Box
Serves As Feedback, Confirming That The Order Has Been Entered Or Needs
Modification.
Learning Objective 1.3 ~ Define And Describe A System, Using Examples
10. A System Can Be Defined As:
A. Activities That Are Performed On Inputs.
B. Any Device Used To Capture Data Including Manual Keying And Scanning.
C. Any Process That An Accountant Is Involved In.
*D. Something That Takes Inputs, Applies A Set Of Rules Or Processes To The Inputs
And Generates Outputs.
CORRECT ANSWER: D
A System Is Defined As A Set Of Interrelated Components That Work Together To
Achieve A Common Goal. It Processes Inputs (Data Or Materials), Applies Rules Or
Procedures, And Produces Outputs (Information Or Results). Systems Are Central To
Business Operations And Can Include Everything From Software To Organizational
Processes.
Learning Objective 1.3 ~ Define And Describe A System, Using Examples
11. Inputs Can Include:
A. Receipts And Invoices That Are Given To Customers.
*B. Data As Well As Other Resources, That Are The Starting Point For The System.
C. Any Process That An Accountant Is Involved In.
Accounting Information Systems: Understanding Business Processes 4th Edition
By Derek Speer, Alison Parkes, Yvette Blount, Brett Considine & Karin Olesen
All Chapters 1-16| 4 Units| Updated Version With Verified Answers| Rated A+
From: [Bestmaxsolutions.stuvia
,PART 1: SYSTEMS FUNDAMENTALS _______________________________________________ 3
Chapter 1: Introduction _____________________________________________________________ 3
PART 2: SYSTEMS CHARACTERISTICS AND CONSIDERATIONS _________________________ 36
Chapter 2: Business processes _______________________________________________________ 36
Chapter 3: Database Concepts I ______________________________________________________ 66
Chapter 4: Database Concepts II _____________________________________________________ 92
Chapter 5: XBRL Reporting _________________________________________________________ 116
Chapter 6: Systems documentation _________________________________________________ 142
Chapter 7: Internal Controls I ______________________________________________________ 169
Chapter 8: Internal Controls II ______________________________________________________ 196
PART 3: SYSTEMS IN ACTION __________________________________________________ 221
Chapter 9: Transaction Cycle -- The Revenue Cycle _____________________________________ 221
Chapter 10: Transaction Cycle -- The Expenditure Cycle__________________________________ 247
Chapter 11: Transaction Cycle -- The Production Cycle __________________________________ 273
Chapter 12: Transaction Cycle -- The HR Management And Payroll Cycle ____________________ 298
Chapter 13: Transaction Cycle -- The General Ledger And Financial Reporting Cycle ___________ 324
Chapter 14: Systems Development __________________________________________________ 350
PART 4: SYSTEMS ISSUES _____________________________________________________ 378
Chapter 15: Auditing and governance of accounting information systems ___________________ 378
Chapter 16: Ethics and cybercrime __________________________________________________ 403
,PART 1: SYSTEMS FUNDAMENTALS
Chapter 1: Introduction
Brett Considine: Accounting Information Systems: Understanding Business Processes 4th Edition, Test Bank
MULTIPLE CHOICE QUESTIONS
1. The Role Of The Accountant Has Changed In Recent Times Because:
A. Professional Bodies Have Sought To Redefine And Reposition The Accounting
Function.
*B. Computer Systems Have Emerged To Handle The Classification And Recording
Tasks Traditionally Associated With The Accounting Function.
C. The Accounting Cycle Is Too Complex And Involved To Be Performed Solely By The
Accountant.
D. Knowledge Workers Have Increasingly Replaced Accountants In The Performance Of
Recording And Classification Tasks.
CORRECT ANSWER: B
The Rise Of Computer Systems And Automation Has Shifted The Role Of Accountants.
Instead Of Focusing On Traditional Tasks Such As Classification And Recording,
Accountants Now Play A More Strategic Role, Using Technology To Analyze And
Interpret Financial Data. This Shift Allows Accountants To Focus On Value-Added
Activities Rather Than Manual Tasks.
Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
2. As Computer Systems Have Been Developed To Perform The Recording And
Classification Tasks Associated With Business Activities, The Nature Of Accounting
And The Work Of The Accountant Have Also Been Pushed In A New Direction.
Increasingly, The Role Of The Accountant Is Seen To Be To:
,A. Use Computer Programs Rather Than Manual Journals.
B. Ensure That Businesses Invest In New Software.
*C. Add Value And Provide And Interpret Information For An Organization.
D. Outsource Accounting Work To Bookkeepers.
CORRECT ANSWER: C
With Advancements In Technology, The Role Of The Accountant Has Evolved. Rather
Than Just Recording Transactions, Accountants Now Focus On Analyzing Data,
Providing Strategic Insights, And Adding Value To Organizations By Interpreting
Information To Support Decision-Making And Business Strategy.
Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
3. The ICAA Requires That Its Members Should Bring Their Analytic Expertise To
Several Fields. Which One Of The Following Field Is NOT Specified By The ICAA?
A. Strategic Planning And Change Management.
B. Market Analysis And Compliance.
C. The Use Of Information Technology.
*D. Human Resource Management.
CORRECT ANSWER: D
The ICAA (Institute Of Chartered Accountants In Australia) Focuses On Fields Directly
Related To Accounting, Finance, And Strategic Business Operations. Human Resource
Management, While Important, Is Not One Of The Specific Fields That Accountants Are
Required To Specialize In According To The ICAA.
Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
4. What Does ERP Stand For?
,*A. Enterprise Resource Planning
B. Enterprise Resource Package
C. Electronic Resource Planning
D. Electronic Resource Package
CORRECT ANSWER: A
ERP Stands For Enterprise Resource Planning. It Refers To Integrated Software Systems
Used By Organizations To Manage And Automate Core Business Processes Such As
Finance, HR, Manufacturing, And Supply Chain Management. These Systems Help
Streamline Operations And Provide Valuable Insights Into Business Performance.
Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
5. Which Of The Following Statements Is NOT A Major Reason Of Why Accountants Of
The Twenty-First Century Must Be Comfortable With Information Systems Concepts?
A. Computer Systems Are Playing An Increasing Part In The Management And
Functioning Of The Organization.
B. Accountants Are Increasingly Exposed To And Working With Technology And
Information Systems.
C. Accountants Need To Know How Computers Manage Knowledge And Its Data
Resources.
*D. Accountants Need To Lead And Oversee The Design Of An Accounting Information
System.
CORRECT ANSWER: D
While Accountants Must Be Comfortable With Information Systems, They Are Not
Typically Responsible For Leading And Overseeing The Design Of Accounting
Information Systems. Instead, They Work With Systems That Are Already Designed,
Ensuring They Are Used Effectively For Decision-Making And Reporting Purposes.
,Learning Objective 1.1 ~ Define And Describe Accounting And Explain How Information
Systems Have Altered The Role Of Accounting And The Job Of The Accountant
6. Information Is:
A. The Same As Data.
*B. Data That Has Been Processed And Converted.
C. Less Useful Than Data.
D. Raw Facts Describing An Event.
CORRECT ANSWER: B
Information Is Data That Has Been Processed, Organized, And Interpreted To Provide
Meaning. Data On Its Own Is Raw And Unorganized, While Information Is Data That Is
Valuable And Useful For Decision-Making.
Learning Objective 1.2 ~ Define And Describe Information
7. What Is Information Overload?
A. The Situation Where A Computer Has More Information Than Is Needed Or Is Able
To Be Processed In A Meaningful Way When A Computer Program Is Executed.
*B. The Situation Where An Individual Has More Information Than Is Needed Or Is
Able To Be Processed In A Meaningful Way When Working Through A Decision.
C. The Situation Where A Computer Has More Information Than Is Needed Or Is Able
To Be Processed When Data Storage Is Taking Place.
D. The Situation Where The Amount Of Information Exceeds The Storage Capacity Of
The Brain Of A Human Being.
CORRECT ANSWER: B
Information Overload Occurs When Individuals Are Exposed To More Information Than
They Can Process Or Use Effectively. In The Modern Business World, This Often
,Happens Due To The Abundance Of Data Available, Making It Challenging To Extract
Relevant And Actionable Insights.
Learning Objective 1.2 ~ Define And Describe Information
8. Which Of The Following Statements Best Indicates The Difference Between Data And
Information:
A. Information And Data Are The Same.
B. Information Is Less Useful Than Data.
C. Information Is Always Useful Whereas Data Is Only Sometimes Useful.
*D. Information Is Data That Has Been Processed And Converted
CORRECT ANSWER: D
The Key Difference Between Data And Information Is That Information Is Data That Has
Been Processed Or Organized To Make It Meaningful. Raw Data Alone May Not
Provide Insights, But When It Is Converted Into Information, It Becomes Useful For
Decision-Making
Learning Objective 1.2 ~ Define And Describe Information
9. The Following Message Box Appears When Entering A Customer Order Into A Sales
System:
This Is An Example Of:
A. Input
, B. Process
C. Output
*D. Feedback
CORRECT ANSWER: D
Feedback In A System Refers To The Information That Is Sent Back To The User To
Help Guide Their Actions Or Confirm Their Inputs. In This Case, The Message Box
Serves As Feedback, Confirming That The Order Has Been Entered Or Needs
Modification.
Learning Objective 1.3 ~ Define And Describe A System, Using Examples
10. A System Can Be Defined As:
A. Activities That Are Performed On Inputs.
B. Any Device Used To Capture Data Including Manual Keying And Scanning.
C. Any Process That An Accountant Is Involved In.
*D. Something That Takes Inputs, Applies A Set Of Rules Or Processes To The Inputs
And Generates Outputs.
CORRECT ANSWER: D
A System Is Defined As A Set Of Interrelated Components That Work Together To
Achieve A Common Goal. It Processes Inputs (Data Or Materials), Applies Rules Or
Procedures, And Produces Outputs (Information Or Results). Systems Are Central To
Business Operations And Can Include Everything From Software To Organizational
Processes.
Learning Objective 1.3 ~ Define And Describe A System, Using Examples
11. Inputs Can Include:
A. Receipts And Invoices That Are Given To Customers.
*B. Data As Well As Other Resources, That Are The Starting Point For The System.
C. Any Process That An Accountant Is Involved In.
