1.

Multiple Components means that a generate information that will be used by

system must contain more than one part. the users for decision making.
True False True False
2. Information are facts that are collected, 11. _____ refers to the management’s
recorded, stored, and processed by a responsibility to properly manage the
system. resources of the firm.
True False Stewardship Responsibility
3. Information System Framework is a set of Authority
formal procedures by which data are 12. The information system supplies
collected, processed into information, and managers with the information they need
distributed to the users. to carry out their decision-making
True False responsibilities.
4. A common purpose relates the multiple True False
parts of the system even though the each 13. The information system provides
part functions independently of the others information to operations personnel to
Multiple components add as an additional burden on top of their
Purpose daily tasks.
Relatedness True False
Goal Conflict 14. Is a system that a business uses to
5. The process of dividing the system into collect, store, manage, process, retrieve
smaller parts, for users to be convenient and report its financial data so that it can
in representing, viewing, and be used by accountants, consultants,
understanding relationships among business analysts, managers, chief
subsystems. Multiple components financial officers, auditors, and regulatory
Goal Conflict and tax agencies. Management
System Decomposition information system
System Interdependency Transaction processing system
6. The benefits provided by information less Information system
the cost of producing it. Information Accounting information system
Information Technology 15. An AIS can be a paper-and-pencil manual
Value of Information system, a complex system using the
Information Overload latest in It, or something in between;
7. Capacity to make a difference in a regardless of the approach, the process
decision. is still the same.
Completeness Timeliness True False
Reliability Relevance 16. The 6 components of AIS includes:
8. Information is said to be ____ when it Responsibility Management Override
faithfully represents what tis purports to People Internal Controls Data
represent Information Technology
Verifiable Relevant Authority Software
Complete Reliable Instruction and Procedures
9. The ability through consensus among 17. Transaction cycles process individual
measures to ensure that information events that are recorded in special
represents what it purports to represent or journals, and summaries of these
that the chosen method of measurement transaction flow into the GLS.
has been used without error or bias. True False
Understandable Relevance
Verifiability Reliability 18. A source of input to the general ledger
10. Only Financial Transactions are processed Journal Voucher
into the organization’s information system, to Financial Reporting System
Management Reporting System
 Transaction Processing System
19. The principal file in GLS database, and is
based on the organization’s chart of
accounts Journal Voucher File
GL History File
Journal Voucher History File
GL Master File
20. GLS is a hub connected only to Financial
Reporting System of the Accounting
Information System through spokes of
information flows.
True False
21. Outside users of information are
interested in the performance of the
organization as a whole, therefore, they
require information that allows them to
observe trends in performance over time
and to make comparisons between
different organizations.
True False
22. Financial Statement must be prepared
and presented by all organization in a
manner that is accepted and understood
by internal users.
True False
23. “Capture the transactions” is a task under:
GLS MRS
TPS FRS
24. “Prepare the unadjusted trial balance” is a
task under:
GLS MRS
TPS FRS
25. “Make adjusting entries” is a task under:
GLS MRS
TPS FRS
26. Management reporting is often called
discretionary reporting because it is not
mandated, as is financial reporting.
True False
27. An MRS that directs management’s
attention to each tasks and function on a
timely basis promotes effective
management and thus, supports the
organization’s business objectives.
True False
28. This principle suggest that management
should structure the firm around the tasks if
performs, rather than around individuals with
unique skills. Span of Control
Responsibility and Authority
Formalization of Tasks
Management of Exception
29. This principle refers to an individual’s
obligation to achieve desired results and
defines the vertical reporting channels of
the firm through which information flows.
Span of Control
Responsibility and Authority
Formalization of Tasks
Management of Exception
30. This principle suggests that managers
should limit their attention to potential
problem areas rather than being involved
with every activity or decision. Span of
Control
Responsibility and Authority
Formalization of Tasks
Management of Exception
31. Reports that are triggered by events:
Scheduled Reports
On demand Reports
32. Identifying responsibility centers and their
objectives, developing performance
measurement schemes, and preparing
and analyzing performance reports of the
responsibility centers Span of Control
Responsibility Accounting
Responsibility and Authority
Balanced Scorecard
33. A fundamental principle of a Balance
Scorecard is that responsibility area
managers are accountable only for items
of costs, revenues and investments that
they control.
True False
34. A _____ is a report that provides
multidimensional perspective of
organization performance. Responsibility
Centers
Responsibility Accounting
Responsibility and Authority
Balanced Scorecard
35. A Balances Scorecard measures four (4)
dimensions of performance which
includes:
Feedback
Customer Perspective
Internal Operations
Management Directives
Innovation and Learning
Responsibility and Authority
 Financial
36. In the balanced scorecard, innovation and
learning handles how well information is
captured and how effectively employees use
the information to convert it to a competitive
advantage over the industry.
True False
37. A profit center manager has responsibility for
cost control only.
True False