Which of the following best demonstrates the relationship between accounting information systems and other areas of accounting?

Multiple Choice Questions1. Which of the following are parts of most accounting information systems? a. b. c. D. Activities and documents only. Activities and technology only. Documents and technology only. Activities, documents and technology. Learning objective: 1

Answer: D Difficulty: Easy

2. Accounting information systems are designed to: a. b. C. d. Minimize cost. Maximize use of information technology. Report information to decision makers. Eliminate the need for paper documents. Learning objective: 1

Answer: C Difficulty: Easy

3. Which of the following statements about accounting information systems is most true? A. b. c. d. They transform data into information. They transform information into data. They transform data into decisions. They transform information into decisions. Learning objective: 1

Answer: A Difficulty: Easy

4. Accounting information systems: a. b. C. d. Emphasize that the areas of accounting (financial, tax and so on) are separate and unrelated. Focus on problems that have deterministic answers. Is an important foundation for the study of auditing. Is the most important area of accounting study.

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McGraw-Hill Companies, 2010

Answer: C Difficulty: Easy 5. AIS study focuses on: A. b. c. d.

Learning objective: 2

Developing critical thinking and judgment skills. Finding the "one right answer" to a problem. Identifying deterministic solutions that can be applied universally. Computers and other forms of information technology. Learning objective: 2

Answer: A Difficulty: Easy

6. The study of accounting information systems incorporates knowledge from: a. b. c. D. Management and finance only. Management and information systems only. Finance and information systems only. Management, finance and information systems. Learning objective: 2

Answer: D Difficulty: Easy

7. Consider the following two statements about accounting information systems: (i) AIS incorporates more problems with deterministic solutions than other areas of accounting. (ii) AIS is more integrative than other areas of accounting. Which of the statements is/are true? a. B. c. d. i only. ii only. Both i and ii. Neither i nor ii. Difficulty: Easy Learning objective: 3

Answer: B

8. Which of the following links the study of accounting information systems with the study of intermediate accounting? A. b. c. d. Discussion of the FASB Conceptual Framework. An emphasis on finding one right answer to every problem. No need for judgment or decision making. Memorizing the standards for preparing financial statements. Learning objective: 3 McGraw-Hill Companies, 2010

Answer: A Difficulty:

Hurt: Accounting Information Systems Chapter 1

Easy 9. _____ in an accounting information system helps promote _____ in the financial statements. a. B. c. d. Documents, accuracy. Internal controls, reliability. Information technology, matching. Data, relevance. Difficulty: Easy Learning objective: 3

Answer: B

10. A typical accounting information system comprises ___ parts. a. b. C. d. Three. Four. Five. Six. Learning objective: 4

Answer: C Difficulty: Easy

11. Accounting information systems typically incorporate which of the following: (i) inputs, (ii) outputs, (iii) storage. a. i and ii only. b. ii and iii only. c. i and iii only. D. i, ii, and iii. Answer: D Difficulty: Easy Learning objective: 4

12. In an accounting information system, "inputs" often come in the form of: A. b. c. d. Source documents. Financial statements. Computer reports. Internal controls. Learning objective: 4

Answer: A Difficulty: Easy

13. According to the text, information about accounting information systems on the InternetHurt: Accounting Information Systems Chapter 1 McGraw-Hill Companies, 2010

falls into ___ main groups. a. Two. B. Three. c. Four. d. Five. Answer: B Difficulty: Easy Learning objective: 5

14. What type of information involves paying a fee to have it published on the Internet? A. b. c. d. Sponsored/commercial. Practitioner. Scholarly. Relevant. Learning objective: 5

Answer: A Difficulty: Easy

15. Evaluating information reliability is part of: a. b. C. d. Information relevance. Information overload. Information literacy. Information transformation. Learning objective: 5

Answer: C Difficulty: Easy

16. Accounting information systems incorporate interrelated activities such as: a. b. C. d. Debiting and crediting accounts. Developing and solving problems with one right answer. Buying and selling inventory. Suggesting new elements and new levels for the conceptual framework. Learning objective: 1

Answer: C Difficulty: Medium

17. Documents in an accounting information system are: a. Always paper-based. b. Always electronic.

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McGraw-Hill Companies, 2010

C. Either paper-based or electronic. d. Neither paper-based nor electronic. Answer: C Difficulty: Medium Learning objective: 1

18. Accounting information systems involve choices such as: (i) whether or not to incorporate information technology, (ii) whether or not to pre-number documents like checks. A. b. c. d. i only. ii only. Both i and ii. Neither i nor ii. Learning objective: 1

Answer: A Difficulty: Medium

19. Which of the following best demonstrates the relationship between accounting information systems and other areas of accounting? a. Tax accountants have to create budgets. b. Auditors often prepare tax returns for their clients. C. Virtually all areas of accounting involve inputs, processes, outputs, storage and internal controls. d. Accounting information systems is the most important area of accounting. Answer: C Difficulty: Medium Learning objective: 2

20. Which of the following situations is most likely to require judgment and critical thinking? A. Deciding which piece of software to adopt as an AIS processing tool. b. Determining whether to debit or credit cash. c. Presenting assets on the balance sheet in order of their liquidity. d. Preparing a statement of cash flows. Answer: A Difficulty: Medium Learning objective: 2

21. The relationship between accounting information systems and information technology is most clearly shown by: (i) using debits and credits to record transactions, (ii) incorporating journals and ledgers as processing tools.

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McGraw-Hill Companies, 2010

a. i only. b. ii only. c. Both i and ii. D. Neither i nor ii. Answer: D Difficulty: Medium Learning objective: 2

22. Problems in accounting information systems are often less likely to have deterministic answers than problems in other areas of accounting. Which of the following questions has a deterministic answer? a. Should AIS documents be paper or electronic? B. What is the balance in cash as of August 19, 2006? c. What are the costs and benefits of using information technology in the AIS? d. At what point does an amount become "material" as the term is defined in the conceptual framework? Answer: B Difficulty: Medium Learning objective: 3

Hurt: Accounting Information Systems Chapter 1

McGraw-Hill Companies, 2010

23. Which of the following do all areas of accounting have in common? A. Providing information for decisions. b. Focusing on debits and credits. c. Preparing financial statements. d. Minimizing income taxes. Answer: A Difficulty: Medium Learning objective: 3

24. Both accounting information systems and intermediate accounting can incorporate the conceptual framework of accounting as a topic. Which part of the conceptual framework most closely corresponds with the "outputs" of an accounting information system? a. b. c. D. Assumptions. Principles. Constraints. Elements of financial statements. Learning objective: 3

Answer: D Difficulty: Medium

25. Which of the following is NOT an example of an input to the accounting information system? a. b. c. D. Sales invoice. Purchase order. Customer check. Balance sheet. Learning objective: 4

Answer: D Difficulty: Medium

26. Outputs from an accounting information system include: (i) income statements, (ii) tax returns, (iii) decisions. A. i and ii only. b. ii and iii only. c. i and iii only. d. i, ii and iii. Answer: A Difficulty: Medium Learning objective: 4

27. Internal controls in an accounting information system help promote information integrity. Which of the following best explains the concept of information integrity?Hurt: Accounting Information Systems Chapter 1 McGraw-Hill Companies, 2010

a. Financial statements are subject to audit. b. Users can rely on the financial statements as the sole basis for decisions. C. The information in AIS outputs is reliable. d. Accounting information systems that incorporate computer software are more reliable than paper-based systems. Answer: C Difficulty: Medium Learning objective: 4

28. As the term is used in information literacy, "currency" means: a. b. C. d. Information over one year old should not be used for decisions. Financial information is more important than non-financial information. Decision makers should pay attention to publication dates. Financial statements should be converted to US dollars whenever possible. Learning objective: 5

Answer: C Difficulty: Medium

29. An author's identity and background are most closely related to which element of information competence? A. Authority. b. Accuracy. c. Objectivity. d. Coverage. Answer: A Difficulty: Medium Learning objective: 5

30. Recently, Bumble Beasley was researching information published in 1985. Which of the following topics would he most likely consider "non-curr