Chapter 1

Which of the following is NOT one of the five major business processes or transaction cycles?
a. Expenditure
b. Production
c. Human Resource & Payroll
d. Revenue
e. Financing
f. All of the above are major cycles.
Which of the following is NOT a characteristic of useful information?
a. Relevant
b. Verifiable
c. Timely
d. Accessible
e. Cost-effective
Accounting Information Systems (AIS) is most likely applicable to which area of accounting?
a. Tax accounting
b. Public Accounting
c. Management consulting
d. All of the above are applicable to AIS.
e. None of the above.
Which of the following is NOT a "primary activity" that directly provides value to the customer?
a. Inbound logistics
b. Operations
c. Human resources
d. Outbound logistics
Which of the following best describes the sequence of the supply chain?
a. Retailer, distributor, manufacturer, raw materials supplier, and consumer
b. Manufacturer, distributor, raw materials supplier, retailer, and consumer
c. Raw materials supplier, manufacturer, distributor, retailer, and consumer
d. Raw materials supplier, manufacturer, retailer, distributor, and consumer
Which of the following is NOT one of the support activities in the value chain of an
organization?
a. Service
b. Purchasing
c. Firm Infrastructure
d. Technology
e. Human Resources
AIS adds value to an organization by:
a. Improving efficiency.
b. Sharing knowledge.
c. Improving the internal control structure.
d. Answers #1 and #2 only.
e. Answers #1, #2, and #3.
Which of the following does not influence the design of an Accounting Information System
(AIS)?
a. Organizational culture
b. Information Technology

Chapter 1
c. Business strategy
d. Legal environment
What is data?
a. All of the facts that are collected, stored, and processed by an information system
b. All of the debit and credit information about each transaction
c. The output which results from the input of information
d. The same thing as information
Reliability refers to the characteristic of information whereby
a. Uncertainty is reduced.
b. Information is free from error or bias.
c. Timely.
d. Verifiable.
In order for an accounting information system to meet the needs of systems users, one must take
into account the types of decisions that are made. Decisions vary from repetitive and routine to
nonrecurring and non-routine. How would you classify a decision where no framework or model
exists for the decision?
a. Structured
b. Semi-structured
c. Unstructured
Information can improve decision making in what way?
a. It identifies situations requiring management action.
b. It provides a basis for choosing among alternative actions.
c. Provides valuable feedback that can be used to improve future decisions.
d. All of the above.
Information is data that has been organized and processed.
True
False
Information that is timely is free from error or bias.
True
False
Inbound logistics consist of receiving, storing, and distributing the materials an organization uses
to create the services and products it sells.
True
False
An AIS designer, who is very competent with information technology skills, will be successful in
designing an information system regardless of his/her understanding of the organization that
he/she is designing for.
True
False
A component of an Accounting Information System are the people who use the system.
True
False