Question 1

____ are facts and figures in raw form.
A) Data
B) Information
C) Objectives
D) Goals

Accepted Answer

Data refers to facts and figures in raw form that have not been analyzed, processed or organized. Information, on the other hand, refers to data that has been processed, refined or structured in a meaningful way to make it useful for decision-making or other purposes. Objectives and goals refer to specific targets or outcomes that an individual or organization aims to achieve.

Question 2

All of the following are components of reliability except:
A) validity
B) accuracy
C) verifiability
D) feedback value

Accepted Answer

Reliability refers to consistency and stability of the results obtained from a measurement tool. Validity is related to whether the tool is actually measuring what it is supposed to measure, accuracy is related to how close the measurements are to the true value, and verifiability is related to the ability to confirm the results through replication or other means. Feedback value is not a component of reliability, but rather refers to the usefulness of the results obtained from the measurement tool in guiding decision-making or improving performance.

Question 3

An information system:
A) is composed of only the computer-based information resources of an organization
B) may consist of both computer-based and manual components
C) is different from a data processing system because it uses computers
D) is not generally used for transaction processing

Accepted Answer

An information system can consist of both computer-based and manual components. It is not limited to only computer-based resources.

Question 4

According to the ____,one of the responsibilities of accountants is to assess financial operations and make best-practices recommendations to management.
A) AICPA
B) Sarbanes-Oxley Act of 2002
C) Occupational Outlook Handbook
D) Accounting Information System

Accepted Answer

The Occupational Outlook Handbook is a publication by the U.S. Bureau of Labor Statistics that provides information on various careers, including accounting. It states that one of the responsibilities of accountants is to assess financial operations and make best-practices recommendations to management. The AICPA is a professional organization for accountants and does not provide specific guidance on responsibilities. The Sarbanes-Oxley Act of 2002 is a law that regulates financial reporting by publicly traded companies and does not directly relate to the responsibilities of accountants. Accounting Information System is a system used by accountants, but it does not provide guidance on their responsibilities.

Question 5

A man-made system consisting of people,equipment,organization,policies and procedures with the objective of accomplishing the work of the organization.
A) operations process
B) management process
C) information process
D) planning process

Accepted Answer

The definition provided describes an operations process, which involves the management of resources to create and deliver products or services. While management, information, and planning processes are important components of overall organizational functioning, they do not encompass the full scope of what is described in the definition.

Question 6

A man-made system that generally consists of an integrated set of computer-based components and manual components established to collect,store,and manage data and to provide output information to users.
A) information system
B) output system
C) business event system
D) database system

Accepted Answer

An information system is a system that consists of integrated computer-based and manual components used to collect, store, manage, and provide output information to users. It includes all the hardware, software, data, people, and procedures used by an organization to support its operations. An information system can be used for various purposes, including decision-making, data analysis, and communication. Therefore, the best choice for the given definition is an information system.

Question 7

Historically,the relationship between an information system and an accounting information system has been:
A) the AIS is a part of the IS
B) the IS is a part of the AIS
C) the IS and the AIS are one in the same
D) the IS and AIS are unrelated

Accepted Answer

An accounting information system is a specific type of information system that focuses on the collection, analysis, storage, and reporting of financial data. Therefore, it can be seen as a subset or component of a larger information system that may include other types of data and functions.

Question 8

Which of the following is NOT a business processes element?
A) Business operations
B) Events processing
C) Management decision making
D) Technology

Accepted Answer

Business processes include business operations, events processing, and management decision making. Technology is a tool or means to support and streamline these processes, but not a fundamental element of the process itself.

Question 9

A man-made system consisting of people,authority,organization,policies and procedures whose objective is to accomplish the work of planning and controlling the operations of the organization.
A) operations process
B) management process
C) information process
D) planning process

Accepted Answer

The description given aligns with the concept of the management process, which involves the coordination of resources (including people, policies, and procedures) to achieve the goals of the organization.

Question 10

____ is (are)data presented in a form that is useful to decision makers.
A) Activities
B) Information
C) Objectives
D) Goals

Accepted Answer

Data presented in a useful form becomes information that decision makers can use to make informed decisions. Activities, objectives, and goals may be informed by the presented information, but they are not the actual data presented.

Question 11

The Sarbanes-Oxley Act of 2002 dramatically changed the daily work of financial accountants and auditors because it
A) expanded the scope of the audit beyond financial information
B) required that organizations work with their auditors to design systems of internal control
C) required that external auditors report on the effectiveness of an organizations system of internal control
D) expanded the opportunities for auditors to engage in consulting activities with their audit clients

Accepted Answer

The Sarbanes-Oxley Act of 2002 requires that external auditors report on the effectiveness of an organization's system of internal control. This means that auditors must do more than simply audited financial statements – they are now required to evaluate the organization's internal controls over financial reporting and issue an opinion on their effectiveness. This change in reporting requirements has had a significant impact on the daily work of financial accountants and auditors.

Question 12

All of the following are components of relevance except:
A) feedback value
B) predictive value
C) verifiability
D) timeliness

Accepted Answer

Verifiability is not a component of relevance; it is a component of faithful representation, another fundamental qualitative characteristic of useful financial information.

Question 13

Which of the following statements is true?
A) The information process facilitates operations by maintaining data such as inventory and customer data.
B) The information process provides the means by which management monitors the operations process.
C) Management designs the operations and information processes.
D) All of the statements are true.

Accepted Answer

All of the statements are true. The information process helps in maintaining data related to inventory and customer data, and also provides a means for management to monitor the operations process. Management designs both operations and information processes.

Question 14

The text takes the following view of the relationship between an IS and an AIS:
A) the AIS is part of the IS
B) the IS is part of the AIS
C) the IS and the AIS are one in the same
D) the AIS is the primary system and the IS the subsystem

Accepted Answer

The answer of The text takes the following view of...

Question 15

The three logical components of a business process include all of the following except:
A) management process
B) operations process
C) information process
D) organization process

Accepted Answer

The three logical components of a business process are management process, operations process, and information process. The organization process is not one of the logical components of a business process.

Question 16

The sequence of components in the functional model of an information system is
A) Output,Input,Processing,Users
B) Input,Processing,Output,Users
C) Processing,Input,Users,Output
D) Users,Processing,Input,Output

Accepted Answer

Input is the first step in the process as it involves capturing data or information from various sources. Processing of the input is done next to manipulate and transform the data into meaningful information. Output is then produced to provide the results of the processing to the users. Lastly, users interact with the system to input further data or to utilize the output generated by the system.

Question 17

Internal control is a process designed to provide absolute assurance regarding achieving objectives in which of the following?
A) efficiency and effectiveness of operations
B) reliability of reporting
C) compliance with applicable laws and regulations
D) none of the above

Accepted Answer

Internal control is designed to provide reasonable, not absolute, assurance regarding the achievement of objectives in the areas of operations, reporting, and compliance. Absolute assurance is not achievable due to inherent limitations in any control system.

Question 18

The AICPA has identified all but which of the following as assurance services?
A) consulting
B) information systems reliability
C) electronic commerce
D) All of these are assurance services identified by the AICPA.

Accepted Answer

The AICPA has identified consulting as a non-assurance service. The other options, information systems reliability and electronic commerce, are both identified as assurance services by the AICPA.

Question 19

____ improves the decision maker's capacity to predict,confirm,or correct earlier expectations
A) Understandability
B) Feedback value
C) Neutrality
D) Comparability

Accepted Answer

Feedback value refers to the extent to which information helps the decision maker to predict, confirm or correct earlier expectations. It helps the decision maker evaluate the effectiveness of their decisions and adjust accordingly.

Question 20

Which of the following statements is false?
A) Management designs the operations and information processes and establishes these processes with people,equipment,and policies.
B) Information process users include operations personnel,management,and people outside the organization.
C) Operations related and accounting related processes are designed by those external to the organization.
D) None of the statements are false.

Accepted Answer

The statement that operations related and accounting related processes are designed by those external to the organization is false. These processes are typically designed and managed internally within the organization.

Quiz 1: Introduction to Accounting Information Systems

____ are facts and figures in raw form.

All of the following are components of reliability except:

An information system:

According to the ____,one of the responsibilities of accountants is to assess financial operations and make best-practices recommendations to management.

A man-made system consisting of people,equipment,organization,policies and procedures with the objective of accomplishing the work of the organization.

A man-made system that generally consists of an integrated set of computer-based components and manual components established to collect,store,and manage data and to provide output information to users.

Historically,the relationship between an information system and an accounting information system has been:

Which of the following is NOT a business processes element?

A man-made system consisting of people,authority,organization,policies and procedures whose objective is to accomplish the work of planning and controlling the operations of the organization.

____ is (are) data presented in a form that is useful to decision makers.

The Sarbanes-Oxley Act of 2002 dramatically changed the daily work of financial accountants and auditors because it

All of the following are components of relevance except:

Which of the following statements is true?

The text takes the following view of the relationship between an IS and an AIS:

The three logical components of a business process include all of the following except:

The sequence of components in the functional model of an information system is

Internal control is a process designed to provide absolute assurance regarding achieving objectives in which of the following?

The AICPA has identified all but which of the following as assurance services?

____ improves the decision maker's capacity to predict,confirm,or correct earlier expectations

Which of the following statements is false?