j j j j j j j j
A. Hall j
Chapterj1
1. Informationjisjajbusinessjresource.
*a.jTrue
b.jFalse
2. ITjoutsourcingjisjlocation-independentjcomputing.
a. True
*b.jFalse
3. Transactionjprocessingjsystemsjconvertjnon-
financialjtransactionsjintojfinancialjtransactions.
a. True
*b.jFalse
4. Informationjlackingjreliabilityjmayjstilljhavejvalue.
a. True
*b.jFalse
5. AjbalancejsheetjpreparedjinjconformityjwithjGAAPjisjanjexamplejofjdiscr
etionaryjreporting.
a. True
*b.jFalse
6. Thejmanagementjreportingjsystemjprovidesjthejinternaljfinancialjinf
ormationjneededjtojmanagejajbusiness.
*a.jTrue
b.jFalse
7. Mostjofjthejinputsjtojthejgeneraljledgerjsystemjcomejfromjthejfinan
cialjreportingjsystem.
a. True
*b.jFalse
8. Whenjpreparingjdiscretionaryjreports,jorganizationsjcanjchoosejwhatjinf
ormationjtojreportjandjhowjtojpresentjit.
*a.jTrue
b.jFalse
,9. Retrievaljisjthejtaskjofjpermanentlyjremovingjobsoletejorjredundantjreco
rdsjfromjthejdatabase.
a. True
*b.jFalse
10. Systemsjdevelopmentjrepresentsj80jtoj90jpercentjofjthejtotaljcostjofjaj
computerjsystem.
a. True
*b.jFalse
11. Thejdatabasejadministratorjisjresponsiblejforjthejsecurityjandjint
egrityjofjthejdatabase.
*a.jTrue
b.jFalse
12. Customjsoftwarejisjdevelopedjandjmaintainedjbyjenterprisejresourcejpla
nners.
a. True
*b.jFalse
13. Thejinternaljauditorjrepresentsjthejinterestsjofjthird-
partyjoutsiders.
a. True
*b.jFalse
14. Informationjtechnologyj(IT)jauditsjcanjbejperformedjbyjbothjint
ernaljandjexternaljauditors.
*a.jTrue
b.jFalse
15. Customjsoftwarejisjthejmostjaffordablejsystemsjdevelopmentjoption.
a. True
*b.jFalse
16. Ajdatabasejisjajcollectionjofjinterconnectedjcomputersjandjcommunica
tionsjdevicesjthatjallowsjusersjtojcommunicate,jaccessjdatajandjapplicati
ons,jandjsharejinformationjandjresources.
a. True
*b.jFalse
,17. Systemsjmaintenancejconsumesjthejmajorityjofjajsystem’sjtotaljcos
ts.
*a.jTrue
b.jFalse
18. CloudjcomputingjisjajpracticejinjwhichjthejorganizationjsellsjitsjITjre
sourcesjtojajthird-
partyjoutsourcingjvendorjthenjleasesjbackjITjservicesjfromjthejvendorjforj
ajcontractjperiod.
a. True
*b.jFalse
19. Ajpotentialjbenefitjofjcloudjcomputingjisjthatjthejclientjfirmjdoesjnotjn
eedjtojknowjwherejitsjdatajarejbeingjprocessed.
a. True
*b.jFalse
20. Onejofjthejgreatestjdisadvantagesjofjdatabasejsystemsjisjthatjalljdataj
isjalwaysjavailablejtojalljusers.
a. True
*b.jFalse
21. UnderjSOXjlegislationjpublicjaccountingjfirmsjarejnojlongerjallowedjtojp
rovidejconsultingjservicesjtojauditjclients.
*a.jTrue
b.jFalse
22. Onejmemberjofjajcompany’sjauditjcommitteejmustjbejanjindependentjCPA.
a. True
*b.jFalse
23. Whichjofjthejfollowingjisjnotjajbusinessjresource?
a. rawjmaterial
b. labor
c. information
*d.jalljarejbusinessjresources
, 24. Whichjleveljofjmanagementjisjresponsiblejforjshort-
termjplanningjandjcoordinationjofjactivitiesjnecessaryjtojaccomplishjorganizatio
naljobjectives?
a. operationsjmanagement
*b.jmiddlejmanagement
c. topjmanagement
d. linejmanagement
25. Whichjleveljofjmanagementjisjresponsiblejforjcontrollingjday-to-
dayjoperations?
a. topjmanagement
b. middlejmanagement
*c.joperationsjmanagement
d.jexecutivejmanagement
26. Location-
independentjcomputingjinjwhichjsharedjdatajcentersjdeliverjhostedjITjservicesjoverjthejI
nternetjisjcalled
a. ITjoutsourcing
b. networkjadministration
*c.jcloudjcomputing
d.jcustomjsoftware
27. Thejvaluejofjinformationjforjusersjisjdeterminedjbyjalljofjthejfollowingjexcept
a. reliability
b. relevance
*c.jconvenience
d.jcompleteness
28. Anjexamplejofjajnonfinancialjtransactionjis
a. salejofjproducts
b. cashjdisbursement
*c.jlogjofjcustomerjcalls
d.jpurchasejofjinventory
29. Anjexamplejofjajfinancialjtransactionjis
*a.jthejpurchasejofjcomputer
b. ajsupplier’sjpricejlist
c. ajdeliveryjschedule
d. anjemployeejbenefitjbrochure
30. Whichjsubsystemjisjnotjpartjofjthejaccountingjinformationjsystem?