Question 1

How can the value of the information produced by an accounting information system be determined? What would a measurement and verification expert think about quantification and verification of such information?

Accepted Answer

The answer of How can the value of the information...

Question 2

A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the
A)organizational culture.
B)customer base.
C)external financial statement users.
D)production activity.

Accepted Answer

A change in the AIS that makes information more easily accessible and widely available within an organization is likely to first influence the organizational culture. This is because easier access to information can increase communication and collaboration within the organization, leading to changes in decision-making processes and overall behavior. It may also shift power dynamics within the organization and encourage a more open and transparent culture.

Question 3

True or False: Corporate strategy should affect the way a firm deploys an accounting information system.

Accepted Answer

Corporate strategy outlines the goals and objectives of a firm, and these goals and objectives should be reflected in the firm's accounting information system. For example, if the firm's strategy is to expand internationally, the accounting system should be able to handle multiple currencies and foreign tax regulations. Therefore, corporate strategy should affect the way a firm deploys its accounting information system.

Question 4

True or False: It is important that a firm's AIS collect and integrate financial and non-financial information about the organization's activities if the firm seeks use its AIS to gain a competitive advantage.

Accepted Answer

Collecting and integrating both financial and non-financial data can provide a more comprehensive view of the organization's activities, which can help firms make more informed decisions and gain a competitive advantage.

Question 5

An AIS that makes information more easily accessible and more widely available is likely to increase pressure for
A)centralization and defined procedures.
B)centralization and autonomy.
C)decentralization and defined procedures.
D)decentralization and autonomy.

Accepted Answer

Decentralization and autonomy are likely to increase because the increased accessibility and availability of information can empower individuals and departments to make more informed decisions and take more control over their own processes without needing central oversight or approval.

Question 6

How can an AIS become part of the firm's value chain and add value to the business?

Accepted Answer

The answer of How can an AIS become part of...

Question 7

True or False: When properly deployed,accounting information systems can provide firms with a competitive advantage.

Accepted Answer

Accounting information systems can assist firms in various functions such as financial analysis, budgeting, cash management, and decision-making. Proper deployment of these systems can lead to improved efficiency, accuracy, and timely decision-making, which can provide firms with a competitive advantage.

Question 8

A well-designed AIS can improve the decision making in an organization.Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making.
A)An AIS provides to its users an abundance of information without any filtering or condensing of such information.
B)An AIS identifies situations requiring management action.
C)An AIS reduces uncertainty,and therefore accounting information can provide a basis for choosing among alternative courses of action.
D)An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making.

Accepted Answer

An abundance of information without any filtering or condensing can overwhelm decision makers and actually hinder rather than help effective decision making. It is important for an AIS to provide relevant, timely and concise information to support decision making.

Question 9

Which of the following is not an example of how an AIS adds value to an organization?
A)All employees at a hospital can access and update patient records from any computer terminal in the hospital.
B)A customer service representative can find a customer's account data,purchase history,payment history,and salesperson's name while on the phone with the customer,to resolve issues quickly.
C)Suppliers are able to access sales data directly from the point-of-sale system of a retailer and deliver inventory automatically when needed.
D)Client tax files are encrypted and made available on the CPA firm's network to any employee with an access code.

Accepted Answer

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Question 10

Identify the primary reason that it is important for a firm to identify the AIS improvements likely to yield the greatest return.
A)because business strategy directly influences AIS,but not information technology
B)because most organizations have limited resources
C)because a firm never wants to waste time addressing issues that are not urgent
D)because it is expensive to improve accounting information systems

Accepted Answer

Most organizations have limited resources, and identifying the AIS improvements that are likely to yield the greatest return will allow a firm to allocate those limited resources effectively and efficiently. This will ensure that the firm is getting the most benefit possible from its investment in AIS improvements.

Question 11

Which of the following is a true statement?
A)Business strategy directly influences AIS,but not information technology.
B)Information technology directly influences organizational culture,but not business strategy.
C)Organizational culture directly influences business strategy,but not AIS.
D)AIS directly influences information technology,but not business strategy.

Accepted Answer

The answer of Which of the following is a true...

Question 12

When the AIS provides information in a timely and accurate manner,it stands as an example of
A)improved decision making.
B)improving the quality and reducing the costs of products or services.
C)improving efficiency.
D)all of the above

Accepted Answer

Timely and accurate information provided by AIS can improve decision making, quality and reduce costs of products or services, and efficiency. Therefore, all of the above options are correct.

Question 13

What is the CITP designation and why is it important to AIS?

Accepted Answer

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Question 14

Identify a recent technological advance that provides an opportunity to gain a competitive advantage.
A)CVVP analysis
B)discounted cash flows
C)predictive analysis
D)economic order quantity (EOQ)

Accepted Answer

Predictive analysis is a recent technological advance that can provide a competitive advantage for businesses. Predictive analysis involves using data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. By analyzing customer behavior, market trends, and other variables, businesses can make informed decisions about pricing, marketing, and product development. This can help companies stay ahead of the competition by identifying opportunities and potential risks before they occur.

Question 15

How can an AIS add value to the organization?

Accepted Answer

The answer of How can an AIS add value to...

Question 16

Identify how firms use predictive analysis.
A)to provide an educated guess regarding what is expected to occur in the near future
B)to engage in data warehousing
C)to engage in a low-cost strategy
D)to design the most effective accounting information system

Accepted Answer

Firms use predictive analysis to make educated guesses about future events and trends based on historical data and statistical algorithms. This helps them make informed decisions about sales and marketing, inventory management, financial planning, and other aspects of their business.

Question 17

A good example of how an AIS is used to share knowledge within an organization is
A)the use of a corporate database to help staff identify the relevant experts who can help with a particular client.
B)the use of tablets to access a network for messaging worldwide.
C)the monitoring of production equipment to watch for defects.
D)the use of point-of-sale data to determine hot-selling items.

Accepted Answer

A corporate database that helps staff identify relevant experts for a particular client is a good example of how an AIS can be used to share knowledge within an organization. By accessing the database, staff can identify and contact the experts who may have valuable insights or solutions for a particular client's needs. This helps to ensure that the organization is providing the best possible service to their clients, while also fostering internal knowledge-sharing and collaboration among staff.

Question 18

Accounting information plays major roles in managerial decision making by
A)identifying situations requiring management action.
B)reducing uncertainty.
C)providing a basis for choosing among alternative actions.
D)all of the above

Accepted Answer

Accounting information helps in identifying situations that require management action, reducing uncertainty by providing accurate and reliable data, and providing a basis for choosing among alternative actions. Therefore, all the options (A, B, and C) are correct, and the best choice is D.

Question 19

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
A)that the AIS should not influence the values of the organizational culture.
B)because the organization's culture influences the AIS,and likewise the AIS influences the organization's culture by controlling the flow of information within the organization.
C)due to the transfer of managers between the two corporate elements.
D)the AIS impacts the organization's key strategies.

Accepted Answer

The bi-directional arrow between the organizational culture and AIS indicates that the two elements influence each other. The organization's culture can influence the design and implementation of the AIS, and in turn, the AIS can influence the organization's culture by controlling the flow of information within the organization. It is important to consider both factors when designing an effective AIS.

Question 20

Differentiate between an AIS course and other accounting courses.

Accepted Answer

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Quiz 1: Accounting Information Systems: an Overview

How can the value of the information produced by an accounting information system be determined? What would a measurement and verification expert think about quantification and verification of such information?

A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the

True or False: Corporate strategy should affect the way a firm deploys an accounting information system.

True or False: It is important that a firm's AIS collect and integrate financial and non-financial information about the organization's activities if the firm seeks use its AIS to gain a competitive advantage.

An AIS that makes information more easily accessible and more widely available is likely to increase pressure for

How can an AIS become part of the firm's value chain and add value to the business?

True or False: When properly deployed,accounting information systems can provide firms with a competitive advantage.

A well-designed AIS can improve the decision making in an organization.Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making.

Which of the following is not an example of how an AIS adds value to an organization?

Identify the primary reason that it is important for a firm to identify the AIS improvements likely to yield the greatest return.

Which of the following is a true statement?

When the AIS provides information in a timely and accurate manner,it stands as an example of

What is the CITP designation and why is it important to AIS?

Identify a recent technological advance that provides an opportunity to gain a competitive advantage.

How can an AIS add value to the organization?

Identify how firms use predictive analysis.

A good example of how an AIS is used to share knowledge within an organization is

Accounting information plays major roles in managerial decision making by

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

Differentiate between an AIS course and other accounting courses.