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WorksheetsAccounting Information System Overview
Total questions: 30
Worksheet time: 20mins
Information is a business resource.
TRUE
FALSE
An information system is an example of a natural system.
TRUE
FALSE
Transaction processing systems convert non-financial transactions into financial transactions
TRUE
FALSE
A balance sheet prepared in conformity with GAAP is an example of discretionary reporting.
TRUE
FALSE
The Management Reporting System provides the internal financial information needed to manage a business.
TRUE
FALSE
Information lacking reliability may still have value
TRUE
FALSE
Most of the inputs to the General Ledger System come from the Financial Reporting System.
TRUE
FALSE
When preparing discretionary reports, organizations can choose what information to report and how to present it.
TRUE
FALSE
Retrieval is the task of permanently removing obsolete or redundant records from the database
TRUE
FALSE
The database administrator is responsible for the security and integrity of the database.
TRUE
FALSE
A backbone system is completely finished, tested, and ready for implementation
TRUE
FALSE
The internal auditor represents the interests of third-party outsiders.
TRUE
FALSE
Information Technology (IT) audits can be performed by both internal and external auditors.
TRUE
FALSE
In a flat-file system, files are easily shared by users
TRUE
FALSE
Under SOX legislation auditors are no longer allowed to provide consulting services to audit clients.
TRUE
FALSE
Which level of management is responsible for short-term planning and coordination of activities necessary to accomplish organizational objectives?
operations management
middle management
top management
line management
Which level of management is responsible for controlling day-to-day operations?
top management
middle management
operations management
executive management
The ability to achieve the goals of a system depends upon the effective functioning and harmonious interaction between its subsystems. This is called
system decomposition
system redundancy
backup system
subsystem interdependency
The value of information for users is determined by all of the following but
reliability
relevance
convenience
completeness
An example of a non-financial transaction is
sale of products
cash disbursement
log of customer calls
purchase of inventory
Which subsystem is not part of the Accounting Information System?
Transaction Processing System
Expert System
General Ledger/Financial Reporting System
Management Reporting System
The major difference between the Financial Reporting System (FRS) and the Management Reporting System (MRS) is the
FRS provides information to internal and external users; the MRS provides information to internal users
FRS provides discretionary information; the MRS provides nondiscretionary information
FRS reports are prepared using information provided by the General Ledger System; the MRS provides information to the General Ledger System
FRS reports are prepared in flexible, nonstandardized formats; the MRS reports are prepared in standardized, formal formats
The most basic element of useful data in the database is
the record
the key
the file
the attribute
In a database, a complete set of attributes for a single occurrence of an entity class is called
a key
a file
a record
a character
Effective information has all of the following characteristics except
relevance
completeness
summarization
structure
Database management tasks do not include
summarization
storage
retrieval
deletion
The author distinguishes between the Accounting Information System and the management Information System based on
whether the transactions are financial or nonfinancial
whether discretionary or nondiscretionary reports are prepared
the end users of the reports
the organizational structure of the business
Which activity is not part of the finance function?
cash receipts
portfolio management
credit
general ledger
Which of the following is not part of the accounting function?
managing the financial information resource of the firm
capturing and recording transactions in the database
distributing transaction information to operations personnel
managing the physical information system of the firm
In the distributed data processing approach
computer services are consolidated and managed as a shared
organization resource
the computer service function is a cost center
the end users are billed using a charge-back system
computer services are organized into small information processing units under the control of end users
