Sample Quiz 1 (for Exam 1)

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Which of the following statements below shows the contrast between data and information? 1)
A) Data and information are the same.
B) Data is more useful in decision making than information.
C) Information is the primary output of an AIS.
D) Data is the output of an AIS.

2) The value of information can best be determined by 2)

A) the benefits associated with obtaining the information minus the cost of producing it.
B) its usefulness to decision makers.
C) the extent to which it optimizes the value chain.
D) its relevance to decision makers.

3) An accounting information system (AIS) processes ________ to provide users with ________. 3)
A) data; transactions B) data; benefits
C) information; data D) data; information

4) ________ information reduces uncertainty, improves decision makers' ability to make 4)

predictions, or confirms expectations.
A) Reliable B) Complete C) Timely D) Relevant

5) Data must be converted into information to be considered useful and meaningful for decision 5)
making. There are six characteristics that make information both useful and meaningful. If
information is free from error or bias and accurately represents the events or activities of the
organization, it is representative of the characteristic of
A) reliability. B) understandability.
C) timeliness. D) relevancy.

6) Chopra, Limited, is an Indian company operating in New York state. It offers stylized, 6)
boutique public relations services to upscale retailers in quaint New England towns. A major
source of revenue is a weekly newsletter that reports on current and projected tourist travel
and spending patterns. Preparation of the newsletter requires study and analysis of weather
conditions, economic activity, and travel costs. It is available at an annual subscription rate of
$299.99. There are currently 190 subscribers. Preparation and distribution of the newsletter
costs $12,000 annually. The value of information to subscribers is
A) at least $300.00. B) $44,998.10.
C) $236.83. D) less than $63.16.

7) Baggins Incorporated identifies new product development and product improvement as the 7)
top corporate goals. An employee developed an innovation that will correct a shortcoming in
one of the company's products. Although Baggins current Return on Investment (ROI) is 15%,
the product innovation is expected to generate ROI of only 12%. As a result, the employee fails
to follow up. As a result, awarding bonuses to employees based on ROI resulted in
A) decreased value of information. B) information overload.
C) goal congruence. D) goal conflict.

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 8) How can query languages be used to help make better decisions? 8)
A) They can help the decision maker to interpret results.
B) They can suggest a course of action.
C) They can gather relevant data for decision making.
D) They can model choose among alternative courses of action.

9) What is a key decision that needs to be made with regards to selling merchandise? 9)
A) which public accounting firm to employ B) which credit cards to accept
C) how much capital to acquire D) which employees to hire

10) Who of the following is not a stakeholder with whom an accounting information system 10)
typically communicates directly?
A) Wall Street industry analyst
B) company that supplies raw materials
C) company that purchases finished goods for resale to consumers
D) venture capitalist

11) In which transaction cycle would customer sales transaction information be most likely to pass 11)
between internal and external accounting information systems?
A) the revenue cycle B) the expenditure cycle
C) the human resources / payroll cycle D) the financing cycle

12) In which transaction cycle would information for borrowing money be most likely to pass 12)
between internal and external accounting information systems?
A) the revenue cycle B) the expenditure cycle
C) the human resources / payroll cycle D) the financing cycle

13) The ________ is not a transaction cycle. 13)

A) general ledger and reporting cycle B) revenue cycle
C) human resources cycle D) expenditure cycle

14) Which of the following is not one of the components of an AIS? 14)
A) procedures and instructions B) internal controls and security measures
C) hardware D) people

15) The American Institute of Certified Public Accountants (AICPA) has recognized the 15)
importance of AIS and the major impact information technology has on the area of accounting.
To recognize individual CPAs who have met educational and experiential requirements in this
area, the group formally created the designation known as
A) the Certified Internal Auditor.
B) the Certified Data Processing Professional.
C) the Certified Information Technology Professional.
D) the Certified Information Auditor.

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16) Accounting information plays major roles in managerial decision making by 16)
A) reducing uncertainty.
B) identifying situations requiring management action.
C) providing a basis for choosing among alternative actions.
D) all of the above

17) Identify the primary reason that it is important for a firm to identify the AIS improvements 17)
likely to yield the greatest return.
A) because it is expensive to improve accounting information systems
B) because business strategy directly influences AIS, but not information technology
C) because a firm never wants to waste time addressing issues that are not urgent
D) because most organizations have limited resources

18) Arranging delivery of products to customers constitutes ________ in value chain analysis. 18)
A) delivery B) shipping
C) outbound logistics D) inbound logistics

19) Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired 19)
five employees. The most senior is Friday, who manages the carving process. Monday is the
newest employee. She collects the coconuts. Tuesday takes calls from unhappy customers.
Wednesday tosses finished coconuts into the sea, sending them to the wholesaler. Thursday
sends smoke signals 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 Monday performing?
A) Inbound logistics
B) Operations
C) Outbound logistics
D) Marketing and sales
E) Service

20) Many small businesses choose to outsource their payroll activities to firms that specialize in 20)
providing payroll services. Dolores Yu operates a payroll processing business in Calabasas,
California. When she sends bills out to her clients, her work is part of her firm's
A) revenue cycle. B) expenditure cycle.
C) financing cycle. D) production cycle.

21) What is the final step in the data processing cycle? 21)
A) input B) output C) processing D) storage

22) The general ledger 22)

A) summarizes the transactions in journals.
B) only includes balance sheet accounts.
C) is the initial place to record general expenses.
D) is posted in total to the general journal.

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23) For a retail business, a delivery of inventory, from a vendor (with whom there is an 23)
established credit relationship) would be initially recorded in which type of accounting record
as part of which transaction cycle?
A) purchases journal; expenditure cycle
B) cash disbursements journal; production cycle
C) general journal; expenditure cycle
D) general ledger; expenditure cycle

24) Which of the following documents would be found in the expenditure cycle? 24)
A) time card B) purchase order
C) credit memo D) delivery ticket

25) Documents that are sent to customers or suppliers and then sent back to the company in the 25)
course of a business transaction are known as
A) source documents. B) transaction documents.
C) turnaround documents. D) input documents.

26) Which of the following is an example of source data automation? 26)

A) a utility bill
B) a subsidiary ledger
C) POS (point-of-sale) scanners in retail stores
D) a bill of lading

27) The data processing method used by FedEx to track packages is an example of 27)
A) real-time batch processing. B) online batch processing.
C) real-time processing. D) batch processing.

28) Which of the following statements regarding special journals is not true? 28)
A) Special journals are used to record large numbers of repetitive transactions.
B) Special journals provide a specialized format for recording similar transactions.
C) Special journals are periodically summarized and posted to the general ledger.
D) The balances in a special journal must always reconcile to the general ledger.

29) The Sarbanes-Oxley Act requires independent auditors to 29)

A) create flowcharts to document business processes.
B) establish effective internal controls.
C) understand a client's system of internal controls.
D) prepare and understand all types of system documentation.

30) More than one arrow is needed between symbols on a DFD if 30)
A) data elements always flow together.
B) data elements flow to different locations.
C) data elements flow at different times.
D) there is no guideline on use of single or multiple arrows.

31) In general, a data destination will be shown by 31)

A) an arrow pointing in. B) arrows pointing both ways.
C) no arrows, only two horizontal lines. D) an arrow pointing away.

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32) In a DFD, a "data sink" is also known as a 32)
A) transformation process. B) data store.
C) data flow. D) data destination.

33) In a payroll processing DFD, the "prepare reports" activity will be represented by ________, 33)
the "employee payroll file" will be represented by ________, and the "management" will be
represented by ________.
A) a circle; two horizontal lines; two horizontal lines
B) a rectangle; a square; a circle
C) a circle; two horizontal lines; a square
D) a square; two horizontal lines; a circle

34) A data flow diagram 34)

A) is a graphical description of the flow of documents and information between departments
or areas of responsibility.
B) is a graphical description of the sequence of logical operations that a computer performs
as it executes a program.
C) is a graphical description of the source and destination of data that shows how data flow
within an organization.
D) is a graphical description of the relationship among the input, processing, and output in
an information system.

35) The passage of the Sarbanes Oxley Act 35)

A) mandates that auditors must be able to prepare, evaluate and read documentation tools
such as flowcharts.
B) requires public companies to prepare an annual internal control report.
C) made documentation skills even more important.
D) all of the above

36) Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia 36)
uses computer technology to provide superior customer service. The store's database system
was designed to make detailed information about each Japanese fan easily accessible to her
customers. Accordingly, the fan price and condition are provided for each fan, along with
many pictures of each fan. In Antia's database, the data about each Japanese fan represents
a(n)
A) entity. B) attribute. C) field. D) record.

37) The efficiency of recording numerous business transactions can be best improved by the use of 37)
A) specialized journals. B) prenumbered source documents.
C) posting references. D) subsidiary ledgers.

38) A specialized journal would be most likely to be used to enter 38)

A) annual closing entries. B) stock issuance transactions.
C) sales transactions. D) monthly depreciation adjustments.

39) Changing an employee's hourly wage rate would be recorded where? 39)
A) employee update file B) special journal
C) employee master file D) employee transaction file

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40) Identify the output below that an accounting information system can provide. 40)
A) list of sales returns B) income statement
C) exception reports D) all of the above

41) Implementation of an ERP system requires increased focus on all except which of the following 41)
controls?
A) segregation of duties between custody, authorization, and recording
B) appropriate disposal of hard copy reports
C) data entry controls on validity and accuracy
D) controls over access to data

42) In an ERP system, the module used to record data about transactions in the disbursement 42)
cycle is called
A) financial. B) order to cash.
C) customer relationship management. D) purchase to pay.

43) In an ERP system, the module used to record marketing data is called 43)
A) marketing. B) customer relationship management.
C) advertising. D) customer service.

44) Graphical representations of information are often supplemented by 44)

A) oral descriptions from management. B) narrative descriptions.
C) relevant e-mail communications. D) logic charts.

45) The American Bread Company is a small restaurant that collects, stores, prepares and 45)
provides meals to customers in Miami, Florida. When food is received, it is recorded in a
database and a receiving ticket is provided to the vendor. When food is used, the database is
updated so that it always reflects the amount and type of food available to customers. In a data
flow diagram, which type of symbol would be used to represent vendors?
A) B) C) D)

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46) Which is the correct label for the blank transformation process circle in the data flow diagram 46)
below?

A) 1.2 Enter Order in Sales Journal B) 1.2 Does Customer Have Credit?
C) 1.2 Salesperson Approves D) 1.2 Check Credit

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47) The correct shape for the triangle labeled "Supplier" in the flowchart below should be a 47)

A) off-page connector. B) magnetic disk.

C) manual process. D) terminal.

48) The physical view of a database system refers to 48)

A) how and where the data are physically arranged and stored.
B) how master files store data values used by more than one application program.
C) how the DBMS accesses data for a certain application program.
D) how a user or programmer conceptually organizes and understands the data.

49) The combination of the database, the DBMS, and the application programs that access the 49)
database through the DBMS is referred to as the
A) database administrator. B) database system.
C) data warehouse. D) database management system.

50) The schema that provides an organization-wide view of the entire database is known as the 50)
A) internal-level schema. B) logical view of the database.
C) conceptual-level schema. D) external-level schema.

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Use the chart below to answer the following questions regarding flow chart symbols.

51) Which symbol would be used in a flowchart to represent a computer process? 51)
A) #2 B) #15 C) #1 D) #5

52) Which symbol would be used in a flowchart to represent a decision? 52)

A) #9 B) #10 C) #16 D) #6

53) Which symbol would be used in a flowchart to represent a beginning, an ending, or a 53)
connection to another procedure?
A) #15 B) #14 C) #16 D) #9

54) File-oriented approaches create problems for organizations because of 54)

A) multiple transaction files.
B) a lack of sophisticated file maintenance software.
C) multiple master files.
D) multiple users.

55) Which is probably the most immediate and significant effect of database technology on 55)
accounting?
A) change in the nature of financial reporting
B) quicker access to and greater use of accounting information in decision-making
C) elimination of traditional records such as journals and ledgers
D) replacement of the double entry-system

56) A set of individual user views of the database is called the 56)
A) meta-schema. B) conceptual-level schema.
C) internal-level schema. D) external-level schema.

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57) Merlin Frodo has been doing custom piercings and tattoos for over thirty years. His home and 57)
place of business is a garage in the harbor district of Seattle, Washington. He keeps meticulous
records of every job he has ever completed. These have been entered into a computerized
accounting information system that his accountant refers to as a "data warehouse." Merlin is
considering adding scarification to his service offerings and has asked his accountant to
identify past customers who might be likely candidates for this service. Merlin wants his
accountant to engage in
A) customer resource management. B) enterprise resource planning.
C) customer auditing. D) data mining.

58) The logical view of a database system refers to 58)

A) how the DBMS accesses data for a certain application program.
B) how a user or programmer conceptually organizes and understands the data.
C) how master files store data values used by more than one application program.
D) how and where the data are physically arranged and stored.

59) Creating an empty table in a relational database requires use of the ________, and populating 59)
that table requires the use of ________.
A) DDL; DML B) DML; DDA C) DDL; DQL D) DQL; SQL

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Answer Key
Testname: SAMPLE QUIZ 1-320-S15

1) C
2) A
3) D
4) D
5) A
6) A
7) D
8) C
9) B
10) A
11) A
12) D
13) A
14) C
15) C
16) D
17) D
18) C
19) A
20) A
21) B
22) A
23) A
24) B
25) C
26) C
27) C
28) D
29) C
30) C
31) A
32) D
33) C
34) C
35) D
36) D
37) A
38) C
39) C
40) D
41) B
42) D
43) B
44) B
45) A
46) D
47) D
48) A

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Answer Key
Testname: SAMPLE QUIZ 1-320-S15

49) B
50) C
51) D
52) B
53) C
54) C
55) B
56) D
57) D
58) B
59) A

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