TestgBankgForgAccountinggInformationgSystemsg10egJamesgA.gHa
ll
Chapterg1
1. Informationgisgagbusinessgresource.
*a.gTrue
b.gFalse
2. ITgoutsourcinggisglocation-independentgcomputing.
a. True
*b.gFalse
3. Transactiongprocessinggsystemsgconvertgnon-
financialgtransactionsgintogfinancialgtransactions.
a. True
*b.gFalse
4. Informationglackinggreliabilitygmaygstillghavegvalue.
a. True
*b.gFalse
5. AgbalancegsheetgpreparedgingconformitygwithgGAAPgisgangexamplegofgdis
cretionarygreporting.
a. True
*b.gFalse
6. Thegmanagementgreportinggsystemgprovidesgtheginternalgfinancialgin
formationgneededgtogmanagegagbusiness.
*a.gTrue
b.gFalse
7. Mostgofgtheginputsgtogtheggeneralgledgergsystemgcomegfromgthegfin
ancialgreportinggsystem.
a. True
*b.gFalse
8. Whengpreparinggdiscretionarygreports,gorganizationsgcangchoosegwhatgin
formationgtogreportgandghowgtogpresentgit.
*a.gTrue
b.gFalse
,9. Retrievalgisgthegtaskgofgpermanentlygremovinggobsoletegorgredundantgre
cordsgfromgthegdatabase.
a. True
*b.gFalse
10. Systemsgdevelopmentgrepresentsg80gtog90gpercentgofgthegtotalgcostgofg
agcomputergsystem.
a. True
*b.gFalse
11. Thegdatabasegadministratorgisgresponsiblegforgthegsecuritygandgin
tegritygofgthegdatabase.
*a.gTrue
b.gFalse
12. Customgsoftwaregisgdevelopedgandgmaintainedgbygenterprisegresourcegpl
anners.
a. True
*b.gFalse
13. Theginternalgauditorgrepresentsgtheginterestsgofgthird-
partygoutsiders.
a. True
*b.gFalse
14. Informationgtechnologyg(IT)gauditsgcangbegperformedgbygbothgin
ternalgandgexternalgauditors.
*a.gTrue
b.gFalse
15. Customgsoftwaregisgthegmostgaffordablegsystemsgdevelopmentgoption.
a. True
*b.gFalse
16. Agdatabasegisgagcollectiongofginterconnectedgcomputersgandgcommuni
cationsgdevicesgthatgallowsgusersgtogcommunicate,gaccessgdatagandgappli
cations,gandgshareginformationgandgresources.
a. True
*b.gFalse
,17. Systemsgmaintenancegconsumesgthegmajoritygofgagsystem’sgtotalgco
sts.
*a.gTrue
b.gFalse
18. CloudgcomputinggisgagpracticegingwhichgthegorganizationgsellsgitsgITg
resourcesgtogagthird-
partygoutsourcinggvendorgthengleasesgbackgITgservicesgfromgthegvendorgfo
rgagcontractgperiod.
a. True
*b.gFalse
19. Agpotentialgbenefitgofgcloudgcomputinggisgthatgthegclientgfirmgdoesgnot
gneedgtogknowgwheregitsgdatagaregbeinggprocessed.
a. True
*b.gFalse
20. Onegofgtheggreatestgdisadvantagesgofgdatabasegsystemsgisgthatgallgdat
agisgalwaysgavailablegtogallgusers.
a. True
*b.gFalse
21. UndergSOXglegislationgpublicgaccountinggfirmsgaregnoglongergallowedgtog
providegconsultinggservicesgtogauditgclients.
*a.gTrue
b.gFalse
22. Onegmembergofgagcompany’sgauditgcommitteegmustgbegangindependentgCPA
.
a. True
*b.gFalse
23. Whichgofgthegfollowinggisgnotgagbusinessgresource?
a. rawgmaterial
b. labor
c. information
*d.gallgaregbusinessgresources
, 24. Whichglevelgofgmanagementgisgresponsiblegforgshort-
termgplanninggandgcoordinationgofgactivitiesgnecessarygtogaccomplishgorgan
izationalgobjectives?
a. operationsgmanagement
*b.gmiddlegmanagement
c.gtopgmanagement
d.glinegmanagement
25. Whichglevelgofgmanagementgisgresponsiblegforgcontrollinggday-to-
daygoperations?
a. topgmanagement
b. middlegmanagement
*c.goperationsgmanagement
d.gexecutivegmanagement
26. Location-
independentgcomputinggingwhichgsharedgdatagcentersgdeliverghostedgITgservicesgove
rgthegInternetgisgcalled
a. ITgoutsourcing
b. networkgadministration
*c.gcloudgcomputing
d.gcustomgsoftware
27. Thegvaluegofginformationgforgusersgisgdeterminedgbygallgofgthegfollowinggexcept
a. reliability
b. relevance
*c.gconvenience
d.gcompleteness
28. Angexamplegofgagnonfinancialgtransactiongis
a. salegofgproducts
b. cashgdisbursement
*c.gloggofgcustomergcalls
d.gpurchasegofginventory
29. Angexamplegofgagfinancialgtransactiongis
*a.gthegpurchasegofgcomputer
b. agsupplier’sgpriceglist
c. agdeliverygschedule
d. angemployeegbenefitgbrochure
30. Whichgsubsystemgisgnotgpartgofgthegaccountingginformationgsystem?
ll
Chapterg1
1. Informationgisgagbusinessgresource.
*a.gTrue
b.gFalse
2. ITgoutsourcinggisglocation-independentgcomputing.
a. True
*b.gFalse
3. Transactiongprocessinggsystemsgconvertgnon-
financialgtransactionsgintogfinancialgtransactions.
a. True
*b.gFalse
4. Informationglackinggreliabilitygmaygstillghavegvalue.
a. True
*b.gFalse
5. AgbalancegsheetgpreparedgingconformitygwithgGAAPgisgangexamplegofgdis
cretionarygreporting.
a. True
*b.gFalse
6. Thegmanagementgreportinggsystemgprovidesgtheginternalgfinancialgin
formationgneededgtogmanagegagbusiness.
*a.gTrue
b.gFalse
7. Mostgofgtheginputsgtogtheggeneralgledgergsystemgcomegfromgthegfin
ancialgreportinggsystem.
a. True
*b.gFalse
8. Whengpreparinggdiscretionarygreports,gorganizationsgcangchoosegwhatgin
formationgtogreportgandghowgtogpresentgit.
*a.gTrue
b.gFalse
,9. Retrievalgisgthegtaskgofgpermanentlygremovinggobsoletegorgredundantgre
cordsgfromgthegdatabase.
a. True
*b.gFalse
10. Systemsgdevelopmentgrepresentsg80gtog90gpercentgofgthegtotalgcostgofg
agcomputergsystem.
a. True
*b.gFalse
11. Thegdatabasegadministratorgisgresponsiblegforgthegsecuritygandgin
tegritygofgthegdatabase.
*a.gTrue
b.gFalse
12. Customgsoftwaregisgdevelopedgandgmaintainedgbygenterprisegresourcegpl
anners.
a. True
*b.gFalse
13. Theginternalgauditorgrepresentsgtheginterestsgofgthird-
partygoutsiders.
a. True
*b.gFalse
14. Informationgtechnologyg(IT)gauditsgcangbegperformedgbygbothgin
ternalgandgexternalgauditors.
*a.gTrue
b.gFalse
15. Customgsoftwaregisgthegmostgaffordablegsystemsgdevelopmentgoption.
a. True
*b.gFalse
16. Agdatabasegisgagcollectiongofginterconnectedgcomputersgandgcommuni
cationsgdevicesgthatgallowsgusersgtogcommunicate,gaccessgdatagandgappli
cations,gandgshareginformationgandgresources.
a. True
*b.gFalse
,17. Systemsgmaintenancegconsumesgthegmajoritygofgagsystem’sgtotalgco
sts.
*a.gTrue
b.gFalse
18. CloudgcomputinggisgagpracticegingwhichgthegorganizationgsellsgitsgITg
resourcesgtogagthird-
partygoutsourcinggvendorgthengleasesgbackgITgservicesgfromgthegvendorgfo
rgagcontractgperiod.
a. True
*b.gFalse
19. Agpotentialgbenefitgofgcloudgcomputinggisgthatgthegclientgfirmgdoesgnot
gneedgtogknowgwheregitsgdatagaregbeinggprocessed.
a. True
*b.gFalse
20. Onegofgtheggreatestgdisadvantagesgofgdatabasegsystemsgisgthatgallgdat
agisgalwaysgavailablegtogallgusers.
a. True
*b.gFalse
21. UndergSOXglegislationgpublicgaccountinggfirmsgaregnoglongergallowedgtog
providegconsultinggservicesgtogauditgclients.
*a.gTrue
b.gFalse
22. Onegmembergofgagcompany’sgauditgcommitteegmustgbegangindependentgCPA
.
a. True
*b.gFalse
23. Whichgofgthegfollowinggisgnotgagbusinessgresource?
a. rawgmaterial
b. labor
c. information
*d.gallgaregbusinessgresources
, 24. Whichglevelgofgmanagementgisgresponsiblegforgshort-
termgplanninggandgcoordinationgofgactivitiesgnecessarygtogaccomplishgorgan
izationalgobjectives?
a. operationsgmanagement
*b.gmiddlegmanagement
c.gtopgmanagement
d.glinegmanagement
25. Whichglevelgofgmanagementgisgresponsiblegforgcontrollinggday-to-
daygoperations?
a. topgmanagement
b. middlegmanagement
*c.goperationsgmanagement
d.gexecutivegmanagement
26. Location-
independentgcomputinggingwhichgsharedgdatagcentersgdeliverghostedgITgservicesgove
rgthegInternetgisgcalled
a. ITgoutsourcing
b. networkgadministration
*c.gcloudgcomputing
d.gcustomgsoftware
27. Thegvaluegofginformationgforgusersgisgdeterminedgbygallgofgthegfollowinggexcept
a. reliability
b. relevance
*c.gconvenience
d.gcompleteness
28. Angexamplegofgagnonfinancialgtransactiongis
a. salegofgproducts
b. cashgdisbursement
*c.gloggofgcustomergcalls
d.gpurchasegofginventory
29. Angexamplegofgagfinancialgtransactiongis
*a.gthegpurchasegofgcomputer
b. agsupplier’sgpriceglist
c. agdeliverygschedule
d. angemployeegbenefitgbrochure
30. Whichgsubsystemgisgnotgpartgofgthegaccountingginformationgsystem?
