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110.249 AIS Business Study Exam
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Accounting information plays major roles in managerial decision making by
Select one:
A. identifying situations requiring management action.
B. reducing uncertainty.
C. providing a basis for choosing among alternative actions.
D. All of these - Correct Ans: ✅ All of these
A value chain typically consists of five primary activities that can directly provide value to customers. The activities that help to transform inputs into final products or services represent
Select one:
A. inbound logistics.
B. outbound logistics.
C. marketing and sales.
D. operations. - Correct Ans: ✅ operations
When the AIS provides information in a timely and accurate manner, it stands as an example of
Select one:
A. improved decision making.
B. improving the quality and reducing the costs of products or services.
C. improving efficiency.
D. All of these - Correct Ans: ✅ All of these
Groups of related business activities such as the acquisition of merchandise and payment of vendors are called
Select one:
A. transactions.
B. economic cycles.
C. transaction cycles.
D. business events. - Correct Ans: ✅ transaction cycles
In which transaction cycle would information for initiating back orders for out of stock goods be most likely to pass between internal and external accounting information systems?
Select one:
A. the revenue cycle
B. the expenditure cycle
C. the human resources / payroll cycle
D. the financing cycle - Correct Ans: ✅ the revenue cycle
Which of the following statements below shows the contrast between data and information?
Select one:
When a subsystem achieves its goals while contributing to the organization's overall goal, it is called
Select one:
A. system match.
B. system congruence.
C. goal congruence.
D. goal match. - Correct Ans: ✅ system congruence
How can query languages be used to help make better decisions?
Select one:
A. They can suggest a course of action.
B. They can gather relevant data for decision making.
C. They can model choose among alternative courses of action.
D. They can help the decision maker to interpret results. - Correct
Ans: ✅ They can gather relevant data for decision making
A value chain typically consists of five primary activities that can directly provide value to customers. The activities that help to provide post-sale support to customers represent
Select one:
A. outbound logistics.
B. marketing and sales.
C. operations.
D. service. - Correct Ans: ✅ service
Identify how firms use predictive analysis.
Select one:
A. to design the most effective accounting information system
B. to engage in a low-cost strategy
C. to engage in data warehousing
D. to provide an educated guess regarding what is expected to occur
in the near future - Correct Ans: ✅ to provide an educated guess regarding what is expected to occur in the near future
Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Mary, who manages the carving process. Jane is the newest employee. She collects the coconuts. Joe takes calls from unhappy customers. Tom tosses finished coconuts into the sea, sending them to the wholesaler. Annie sends letters to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay.
Which of the following functions in the value chain is Mary performing?
Select one:
A. Inbound logistics
B. Operations
C. Outbound logistics
D. Marketing and sales
E. Service - Correct Ans: ✅ Operation
Auditees - Correct Ans: ✅ Usually managers. The party responsible for creating the financial statements
John Pablo works in the accounting department of a multinational manufacturing company. His job includes updating accounts receivable based on sales orders and remittance advices. His responsibilities are part of the company's
Select one:
A. revenue cycle.
B. expenditure cycle.
C. financing cycle.
D. production cycle. - Correct Ans: ✅ Revenue cycle
All of the following are guidelines for developing a good coding system except
Select one:
A. be consistent with the company's organization structure.
B. be as sophisticated as possible to promote usage.
C. be consistent with its intended use.
D. be flexible to allow for growth. - Correct Ans: ✅ Be as sophisticated as possible to promote usage
Data about which of the following facets of a business activity is most likely to be recorded in a transaction file?
Select one:
A. business activity
B. place the business activity occurs
C. people who participate in the business activity
D. resources affected by the business activity - Correct Ans: ✅ Business activity
A delivery of inventory from a vendor, with whom a credit line is already established, would be initially recorded in which type of accounting record and as part of what transaction cycle?
Select one:
A. cash disbursements journal; production cycle
B. general ledger; expenditure cycle
C. purchases journal; expenditure cycle
D. general journal; expenditure cycle - Correct Ans: ✅ C. purchases journal; expenditure cycle
Which of the following is an example of an ERP system?
Select one:
A. Betty has a system that keeps track of the accounts payable and receivable for her plumbing business. At the end of the year, the system helps her to prepare her taxes in just two hours.
B. Doug is a freelance photographer. He keeps records of all expenses and revenues on his cell phone and then e-mails them to
A. customer sale
B. inventory purchase
C. purchase request
D. receipt of goods - Correct Ans: ✅ Purchase request
Product items are often coded with (select all that apply)
Select one or more:
A. sequence codes.
B. block codes.
C. group codes.
D. mnemonic codes. - Correct Ans: ✅ d. Mnemonic codes
Implementation of an ERP system requires effective segregation of responsibility for
Select one:
A. recording and monitoring of organizational assets.
B. recording, risk assessment, and control procedures.
C. authorization, monitoring, and risk assessment.
D. authorization, recording, and custody of organizational assets. -
Correct Ans: ✅ The correct answer is: authorization, recording, and custody of organizational assets.
ERP stands for
Select one:
A. enterprise resource planning.
B. enterprise resource program.
C. enterprise reporting program.
D. None of these - Correct Ans: ✅ enterprise resource planning.
In an ERP system, the module used to record data about transactions in the disbursement cycle is called
Select one:
A. customer relationship management.
B. purchase to pay.
C. financial.
D. order to cash. - Correct Ans: ✅ b. Purchase to pay
For a retail business, a delivery of inventory, from a vendor (with whom there is an established credit relationship) would be initially recorded in which type of accounting record as part of which transaction cycle?
Select one:
A. general ledger; expenditure cycle
B. data entry controls on validity and accuracy
C. segregation of duties between custody, authorization, and recording
D. appropriate disposal of hard copy reports - Correct Ans: ✅ D. Appropriate disposal of hard copy reports
All of the following are reasons that implementing a new ERP may fail except
Select one:
A. ERPs may require procedures and reports to be standardized across business units.
B. ERPs can take years to fully implement.
C. employees may resist using the ERP system.
D. employees may refuse to share sensitive information with
different departments. - Correct Ans: ✅ A. ERPs may require procedures and reports to be standardized across business units.
Changing a customer's credit limit would be recorded where?
Select one:
A. Special journal.
B. Customer master file.
C. Customer transaction file.
D. Customer update file. - Correct Ans: ✅ B. Customer master file
Pre-numbered shipping documents and pre-numbered invoices are examples of
Select one:
A. sequence codes.
B. block codes.
C. group codes.
D. mnemonic codes - Correct Ans: ✅ a. Sequence codes
Data must be collected about three facets of each business activity. What are they?
Select one:
A. the inputs, outputs and processes used
B. who is involved, what was sold, how much was paid
C. the business activity, the resources it affects, the people who participate
D. the business activity, the transactions it creates, the impact on the
financial statements - Correct Ans: ✅ C. the business activity, the resources it affects, the people who participate
Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily
B. understandability.
C. timeliness.
D. relevancy. - Correct Ans: ✅ A. reliability.
In 2015, Singh Manufacturing implemented a Web-based information system that allows all employees to access mission- critical information. The intention was to increase production efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and costs increased. Shaman Gupta, the director of information technology services, asked Ashlee Wells to come in and talk with him about the system. Ashlee is a long-time employee of Singh, and her opinion is valued by her peers and by her supervisor."So Ashlee, how's it going down there in the shop?""Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan production. Now, we got that computer system. Most of the time we can't get all of the information that we need. Is there some way to print out a list that has everything that we need?"Shaman thought for a while before responding. "Well, Ashlee,
to tell you the truth, I'm not - Correct Ans: ✅ C. complete
The value of information can best be determined by
Select one:
A. its usefulness to decision makers.
B. the benefits associated with obtaining the information minus the cost of producing it.
C. the extent to which it optimizes the value chain.
D. its relevance to decision makers. - Correct Ans: ✅ B. the benefits associated with obtaining the information minus the cost of producing it.
An accounting information system (AIS) processes ________ to provide users with ________.
Select one:
A. data; transactions
B. data; information
C. information; data
D. data; benefits - Correct Ans: ✅ B. data; information
One group that relies on both the adequate collection and transformation of data for decision-making purposes for an organization is
Select one:
A. the government.
B. competitors.
C. interested outsiders.
D. management. - Correct Ans: ✅ D. management.
In Chapter 1, Figure 1-4 shows the factors that influence the design of AIS. The diagram shows a bi-directional arrow between the organizational culture and the AIS. The reason for this two-way interchange between organizational culture and AIS is
Select one:
The AIS must include controls to ensure
Select one:
A. safety and availability of data.
B. marketing initiatives match corporate goals.
C. information produced from data is accurate.
D. both safety and availability of data and information produced
from data is accurate - Correct Ans: ✅ D. both safety and availability of data and information produced from data is accurate
Identify the piece of information below that is typically needed to acquire a building.
Select one:
A. job descriptions
B. vendor performance
C. market coverage
D. capacity needs - Correct Ans: ✅ D. capacity needs
Groups of related business activities such as the acquisition of merchandise and payment of vendors are called
Select one:
A. business events.
B. transactions.
C. transaction cycles.
D. economic cycles. - Correct Ans: ✅ C. transaction cycles.
Inventory information for Sun Corp. is provided in real time by a firm's accounting information system. However, the accuracy of this information is questionable. Many store managers often report stock outs of components that the system indicates are in stock. Which of the following characteristics of useful information is absent in the situation described above?
Select one:
A. relevant
B. reliable
C. complete
D. timely
E. understandable
F. verifiable
G. accessible - Correct Ans: ✅ B. reliable
When a subsystem achieves its goals while contributing to the organization's overall goal, it is called
Select one:
A. system match.
B. goal match.
C. system congruence.
D. goal congruence. - Correct Ans: ✅ D. goal congruence.
Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that
