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									Chapter 1

1. Which of these is not a characteristic that makes information useful?

a.   Relevance
b.   Length
c.   Timeliness
d.   Verifiability

answer: b. Length

2. What entails adding features or services not provided by competitors to a product so
you can charge customers a premium price?

a.   Product differentiation strategy
b.   Accounting Information System
c.   Low-cost strategy
d.   needs-based strategic position

answer: a. Product differentiation strategy

3. What are repetitive, routine, and understood well enough that they can be delegated to
lower-level employees in the organization.

a.   Semistructured decisions
b.   Unstructured decisions
c.   Structured decisions
d.   Random decisions

answer: c. Structured decisions


Chapter 2

1. With what kind of code are blocks of numbers within a numerical sequence reserved
for categories, having meaning to the user.

a.   sequence
b.   block
c.   group
d.   color

answer: b. block

2. The set of fields that contain data about various attributes of the same entity forms a:
a.   attribute
b.   data value
c.   record
d.   file

answer: c. record

3. This is a formal expression of goals in financial terms:

a.   budget
b.   performance report
c.   charts
d.   graphs

answer: a. budget


Chapter 3

1. This illustrates the flow of documents and information among areas of responsibility
within an organization.

a.   internal control flow chart
b.   document flowchart
c.   system flow chart
d.   program flow chart

answer: b. document flow chart

2. In flow chart storage symbols, a file looks like what:

a.   an inverted triangle with an N in it
b.   a circle
c.   a pentagon
d.   a rhombus

answer: a. an inverted triangle with an N in it

3. A rectangle represents this on a flow chart:

a. manual operation
b. Display
c. Computer processing
d. On-line storage
answer: c. computer processing
Chapter 4

1. This represents everything in the database as being stored in the form of tables:

a.   relational data base
b.   tuple
c.   TPS reports
d.   spread sheet

answer: a. relational data base

2. What is used to build the data dictionary and initialize or create the database?

a.   data manipulation language
b.   data query language
c.   C++
d.   data definition language

answer: data definition language

3. What is a schema?

a.   How the user of programmer conceptually organizes and understands the data
b.   How and where the data are physically stored
c.   Describes the logical structural of a database
d.   A type of flow chart.

answer: c. Describes the logical structural of a database


Chapter 1

1) What is it called when the organizations subsystem is not consistent with another
subsystem or with the larger system?
a. Goal congruence
b. Goal conflict
c. information overload
d. unconformity
Answer: b

2) Which characteristic of making information useful reduced uncertainty by helping you
predict what will happen or confirm what already has happened?

a. reliability
b. timeliness
c. understandability
d. relevance
Answer: d

3.) Which is NOT a reason to study accounting information systems?
a. the skills are critical to career success
b. AIS topics are covered on the new CPA exam
c. AIS systems focus on number crunching
d. AIS topics impact corporate strategy and culture
Answer: c

Chapter 2

1) Which is NOT an example of an external party user of Business?
a. Customers
b. creditors
c. governmental agencies
d. managers
Answer: d

2) Which cycle involves interactions with your suppliers when you buy goods or services
and pay cash?
a. revenue cycle
b. expenditure cycle
c. production cycle
d. human resources cycle
e. financing cycle
Answer: b

3.) A file used to store cumulative information about resources and agents is?
a. ledger
b. Journals
c. subsidiary ledger
d. general ledger
Answer: A

Chapter 3

1.) A DFD is a representation of which of the following?
a. relationship among modules, data, and programs of an AIS
b. flow of data in an organization
c. decision rules in a computer program
d. computer hardware configuration
Answer: b
2.) Which of the following statement is false?
a. A flowchart is an analytical technique used to describe some aspect of an information
system in a clear, concise, and logical manner
b. Flowcharts use a standard set of symbols to describe pictorially the flow of documents
and data through a system
c. A system flowchart is a narrative representation of an information system
d. A program flowchart shows the logic used in computer programs
Answer: c

3.) Data sources and destinations are represented in a data flow diagram as?
a. a square
b. a curved arrow
c. a circle
d. two parallel lines
e. none of the above
Answer: a

Chapter 4

1.) A data dictionary contains what?
a. list of all programs in which a data item is used
b. a list of all synonyms for the data elements in a particular file
c. a list of all data elements used by a particular user
d. list of all output reports in which a data element is used
e. all the above
Answer: e

2.) Which is used for data maintenance, which includes such operations as updating,
inserting, and deleting portions of the database?
a. data definition language
b. data query language
c. data manipulation language
d. report writer
Answer: c

3.) In each row in a relation, what contains data about a specific occurrence of the tyle of
entity represented by that table?
a. Foreign Key
b. Tuple
c. Primary Key
d. attribute
Answer: b



Ch. 1
1. Which is NOT a benefit of information?
a. reduction of uncertainty
b. Improved decisions
c. A better ability to plan and schedule activities
d. all are benefits of information

2. Which type of info is for mostly internal use?
a. Mandatory Information
b. Essential Information
c. Discretionary Information
d. All of the above

3. Which is NOT a support activity to the value chain?
a. Firm infrastructure
b. Human Resources
c. Technology
d. Outbound logistics

Ch. 2

1. Which are NOT example of Source Data Automation?
a. ATM’s
b. Point-or-sale scanners in retail stores
c. Bar code scanners
d. All are examples or source data automation

2. 1000000-1999999 is and example of what kind of coding?
a. Sequence
b. Block
c. Group
d. Random

3. The set of fields that contain data about various attributes of the same entity froms a
a. file
b. master file
c. record
d. post it note




Ch. 3

1. Data sources and data destinations are represented by what figure usually?
a. Triangle
b. a Line
c. Circle
d. Squares

2. Which provides a summary level view of a system?
a. Context Diagram
b. Data flow
c. Data destinations
d. Processes

3. Which shows the sequence of logical operations performed by a compter in executing
a program?
a. system flowchart
b. document flowchart
c. data store
d. program flow chart


Chapter 1

1) The Systems Concept _______________
       a) discourages integration
       b) sends information to the user
       c) are facts collected by an information system
       d) encourages integration

2) The benefits of information include
       a) reduction of uncertainty
       b) improved decisions
       c) improved ability to plan and schedule events
       d) All of the above
       e) None of the above

3) Which of the following is not a characteristic that makes information useful?
      a) reliability
      b) completeness
      c) timeliness
      d) briefness

Chapter 2

1) Businesses engage in many activities including
      a) acquiring capital
      b) purchasing inventory
      c) collecting payment from cutomers
      d) all of the above
2) An example of a transaction is
       a) selling goods to customers
       b) depreciating equipment
       c) composing an invoice
       d) all of the above
       e) both a and b

3) Information output is a step in which cycle?
        a) revenue cycle
        b) financing cycle
        c) data processing cycle
        d) payroll cycle



Chapter 3

1) Documentation includes which of the following tools
      a) Narratives
      b) Flowcharts
      c) Diagrams
      d) All of the above

2) What do data flow diagrams show?
      a) where data comes from
      b) how data flows
      c) the processes performed on data
      d) where data goes
      e) all of the above

3) Which of the following is a type of flowchart?
      a) Integration flowchart
      b) Pictoral flowchart
      c) System flowchart
      d) Time flowchart


Chapter 4

1) Information about attributes of an entity are stored in
       a) fields
       b) records
       c) cases
       d) lockers
2) The person responsible for the database is the
       a) database overseer
       b) database maker
       c) database administrator
       d) CEO

3) Database technology provides which of the following benefits to organizations?
       a) data integration
       b) data sharing
       c) reporting flexibility
       d) all of the above


   Chapter 1
   1. What is the benefit produced by the information minus the cost of producing it?
   a. value of information
   b. mandatory information
   c. discretionary information
   d. operational control

   2. What is a system that collects, records, stores and processes data to produce
      information for decision makers?
   a. database
   b. flowchart
   c. general ledger
   d. accounting information system

   3.    Which of the following is not a primary activity of an organization’s value chain?
   a.    operations
   b.    marketing and sales
   c.    outbound logistics
   d.    technology

    Chapter 2
    1. The _______ cycle is where raw materials are transformed into finished goods.
    a. revenue
    b. production
   c. financing
   d. expenditure

    2.   Which of the following is not a type of file processing?
    a.   updating
    b.   adding
    c.   deleting
    d.   producing
3. A ________ is used to record infrequent or not routine transactions.
a. specialized journal
b. specific journal
c. general journal
d. detailed journal

Chapter 3
1. __________ is a graphical description of the relationship among the input
   processing and output in an information system.
a. system flowchart
b. program flowchart
c. document flowchart
d. data flow diagram
2. A __________ is an analytical technique used to describe some aspect of an
   information system in a clear, concise, and logical manner.
a. Payroll journal
b. Context diagram
c. Flowchart
d. Accounting notebook

3. A ________ represents the flow of data between processes, data stores, and data
   sources and destinations.
a. data flow
b. cash disbursements journal
c. processing cycle
d. general journal

Chapter 4
1. A ___________ acts as an interface between the database and the various
   application programs.
a. data warehouse
b. database management system
c. relational data model
d. querie

2. The ________ view refers to how and where the data are physically arranged and
   stored in the computer system.
a. physical
b. logical
c. detailed
d. general

3.   A _______ is an attribute in a table that is a primary key in another table.
a.   tuple
b.   data dictionary
c.   foreign key
    d. function key

Chapter 1

1. Information is ___________.
        a. is data that is meaningless
        b. is data that must be put in a computer
        c. is data that has been organized and processed to provide meaning
        d. is the same as data

2. Which of the following is not a benefit of information?
       a. reduces uncertainty
       b. improves decisions
       c. improves ability to plan and schedule
       d. reduces time work load

3. Who requires mandatory information?
      a. IRS
      b. Managers
      c. Stock Brokers
      d. Investors

Chapter 2

1. A transaction is a (an) __________.
        a. transaction between two entities to exchange goods or services
        b. process that is rarely dealt with in AIS
        c. other event that can be measured in economic terms
        d. either a or c

2. Which of the following does not collaborate with AIS systems?
       a. Vendors
       b. Children
       c. Managers
       d. Government Agencies

3. The Revenue cycle __________.
       a. involves interaction with customers.
       b. involves interaction with employees.
       c. involves selling goods or services and getting cash
       d. both a and c
Chapter 3

1. DFDs show
      a. Where data comes from
      b. Where data goes
      c. How it flows
      d. all the above

2. This symbol represents

       a.   data source and destinations
       b.   data flows
       c.   processes
       d.   data stores

3. A data dictionary contains
       a. MIS terms
       b. explanations of how to use data
       c. descriptions of all data elements
       d. none of the above

Chapter 4

1. Why did the proliferation of master files develop problems?
      a. the same information was stored multiple times
      b. it made it difficult to obtain a wide view of the information
      c. information was not always constant across the files
      d. all the above

2. What is a database?
     a. a spreadsheet
     b. a set of interrelated, centrally coordinated files
     c. a financial institution
     d. a set of unrelated files, ordered alphabetically

3. ________ are the most popular type of data bases for transaction processing.
      a. Un-relational data bases
      b. Transaction data bases
      c. Relational data bases
      d. None of the above


Chapter 1
1. The value of information is _____.
       A. the benefit produced by the information minus the cost.
       B. the accuracy of the information.
       C. the amount at which the information can be sold.
       D. the level of demand for the information.

2. The operations activities in the value chain consist of _____.
       A. distributing products or services to customers.
       B. transforming inputs into final products or services.
       C. marketing and selling products or services.
       D. post-sale support to customers.

3. AIS can add value to an organization by _____.
       A. improving efficiency
       B. sharing knowledge.
       C. improving decision making.
       D. all of the above.

Chapter 2
1. In a typical chart of accounts, accounts receivable would have which of the following
        account codes?
        A. 320.
        B. 410.
        C. 120.
        D. 701.

2. Data values are stored in a physical space called a _____.
       A. record.
       B. entity.
       C. file.
       D. field.

3. The process of selling goods or services in exchange for the promise to pay cash is
       called the _____ cycle.
       A. financing
       B. payroll
       C. expenditure
       D. revenue
Chapter 3
1. In a data flow diagram, processes are usually represented by a _____.
        A. square.
        B. triangle.
        C. circle.
        D. arrow.

2. What information should be included on the final copy of a DFD?
      A. name of the DFD.
      B. date prepared.
      C. preparer’s name.
      D. all of the above.

3. Which of the following statements is false?
      A. DFD’s and flowcharts are the two most frequently used documentation tools.
      B. Systems development tools are helpful for internal control purposes.
      C. Department DFD’s are used by external auditors.
      D. DFD’s are only used to show ideal methods for documentation routing.


Ch. 1

   1. __________ occurs when a decision or action of a subsystem is inconsistent with
      another subsystem or the system as a whole.

           a. Goal congruence
           b. Information overload
           c. Goal conflict
           d. Systems concept
           Answer: C

   2. Which of the following is not a characteristic of useful information?

           a. Relevant
           b. Complete
           c. Integration
           d. Timely
           Answer: C

   3. Which of the following is not a primary activity of an organization’s value chain?

           a. Inbound logistics
           b. Operations
           c. Purchasing
           d. Outbound logistics
           Answer: C
Ch. 2

   4. The ________ cycle is where goods and services are sold for cash or a future
      promise to pay cash?

          a. Expenditure
          b. Production
          c. Revenue
          d. Financing
          Answer: C

   5. The ________ contains summary-level data for every asset, liability, equity,
      revenue, and expense account of the organization.

          a. Control account
          b. Sequence code
          c. General ledger
          d. Chart of accounts
          Answer: C

   6. A(n) _________ is something about which information is stored.

          a. File
          b. Record
          c. Entity
          d. Field
          Answer: C

Ch. 3

   7. __________ encompasses the narratives, flowcharts, diagrams, and other written
      materials that explain how a system works.

          a. Narrative description
          b. Data sources
          c. Documentation
          d. Processes
          Answer: C

   8. __________ symbols represent devices or media that provide input to or record
      output from processing operations.

          a. Processing
          b. Storage
          c. Input/Output
          d. Flow and miscellaneous
          Answer: C




   9. This is the symbol for a __________.

          a. Display
          b. Terminal
          c. Document
          d. Decision
          Answer: C

Ch. 4

   10. Companies are developing very large databases called __________.

          a. Database system
          b. Database administrator
          c. Data warehouses
          d. Database management system
          Answer: C

   11. Which of the following is not a benefit of an organization from database
       techonology?

          a. Data integration
          b. Data sharing
          c. Logical view
          d. Reporting flexibility
          Answer: C

   12. __________ describes the logical structure of a database.

          a. Physical view
          b. Tuple
          c. Schema
          d. Normalization
          Answer: C
Chapter 1 Questions

1). What business strategy entails striving to be the most efficient producer of a product
or service?
    a. product differentiation strategy
    b. synergy
    c. low-cost strategy
    d. semi structured decisions

ANSWER: c. low-cost strategy


2). Which of the following is not a primary activity of an organization’s value chain?
       a. Inbound Logistics
       b. Operations
       c. Marketing and Sales
       d. Sharing Knowledge

ANSWER: d. Sharing Knowledge


3). __________________ is a system that collects, records, stores, and processes data to
produce information for decision makers.
       a. Value Chain
       b. Accounting Information System (AIS)
       c. Information Technology
       d. Internal Controls System

ANSWER: b. Accounting Information System (AIS)



Chapter 2 Questions

1). The process that begins with capturing transaction data and ends with an
informational output such as the financial statements is called _____________?
       a. Transaction Processing
       b. Give-get Exchange
       c. Bicycle Processing
       d. Source Automation

ANSWER: a. Transaction Processing
2). The general ledger account corresponding to a subsidiary ledger is called a/an
________________?
        a. general ledger acquisition
        b. chart of accounts
       c. optional account
       d. control account

ANSWER: d. control account


3). Under data processing there are four different types of file processing, which of the
following is not one of the types?
       a. Updating
       b. Changing
       c. Listening
       d. Deleting

ANSWER: c. Listening


Chapter 3 Questions

1). There are four documentation tools that we discuss they are as follows Data Flow
Diagram, Document Flowchart, System Flowchart, and _____________?
       a. Profit Flowchart
       b. Program Flowchart
       c. Destination Flowchart
       d. Process Flowchart

ANSWER: b. Program Flowchart

2). The highest level Data Flow Diagram is referred to as _____________?
        a. Context Diagram
        b. Process
        c. Conceptual Diagram
        d. Narrative Diagram

ANSWER: a. Context Diagram

3). _____________ illustrates the flow of documents and information among areas of
responsibility within an organization.
       a. Internal Control Flowchart
       b. External Control Flowchart
       c. Document Flowchart
       d. Systems Flowchart
ANSWER: c. Document Flowchart
Chapter 4 Questions

1). Which of the following are not a benefit of database technology?
       a. Data Integration
       b. Data Sharing
       c. Reporting Flexibility
       d. All of the above are benefits

ANSWER: d. All of the above are benefits


2). ______________ is used for data maintenance, which includes such operations as
updating, inserting, and deleting portions of the database.
       a. Data Definition Language (DDL)
       b. Data Manipulation Language (DML)
       c. Data Query Language (DQL)
       d. None of the Above

ANSWER: b. Data Manipulation Language (DML)


3). Each row in a relation, called a ____________ , contains data about a specific
occurrence of the type of entity represented by that table.
       a. tuple
       b. model
       c. foreign key
       d. none of the above

ANSWER: a. tuple


Chapter 1

   1. The value of information is:
         a. the benefit produced by the information minus the cost of producing
             it
         b. data that has been organized and processed to provide meaning to a user
         c. users can make better decisions
         d. facts about the activities that take place

   2. Information should be:
          a. relevant
          b. reliable
          c. timely
          d. all of the above
          e. none of the above

   3. Structured decisions are:
          a. characterized by incomplete decision making rules
          b. are nonrecurring and nonroutine
            c. repetitive, routine, and understood well enough
            d. none of the above

Chapter 2

   1. Source data automation is used to:
         a. improve the accuracy and efficiency of data input
         b. improve the accuracy and efficiency of data output
         c. create turnaround documents
         d. none of the above

   2. An entity is
         a. characteristics of interest
         b. something about which information is stored
         c. a physical space
         d. all of the above

   3. Which is not of the types of file processing:
        a. updating
        b. changing
        c. adding
        d. formatting

            Chapter 3

            1. The highest level DFD is:
                  a. conceptual diagram
                  b. context diagram
                  c. source diagram
                  d. none of the above

            2. A system flowchart:
                  a. illustrates the sequence of logical operations performed by a
                      computer
                  b. depicts the relationship among the input, processing, and
                      output of an AIS
                  c. represents the transformation of data
                  d. none of the above

            3. Which of the following is not one of the flowcharting symbol categories:
                 a. Input/output
                 b. Processing
                 c. Storage
                 d. Transformation

      Chapter 4
       1. Which of the following is a level of a schema
            a. conceptual
            b. external
            c. internal
            d. none of the above
            e. all of the above

.
       2. Which of the following is not one of the benefits of Database technology:
            a. Data integration
            b. Data sharing
            c. Reduced labor force
            d. Data independence

       3. A data dictionary is:
             a. large database
             b. contains information about the structure of the database
             c. used to build the DBMS
             d. used to interrogate the database


Chapter 1
1) Information can be provided to both internal and external users, most internal
information for a user is?
        a) Necessary information
        b) Mandatory information
        c) Essential information
        d) Discretionary information
2) How does information flow in the value chain from left to right?
        a) Inbound Logistics->Operations->Outbound Logistics->Marketing and Sales->Service
        b) Operations->Inbound Logistics-> Outbound Logistics->Marketing and Sales->Service
        c) Marketing and Sales-> Operations->Inbound Logistics-> Outbound Logistics-> Service
        d) Inbound Logistics-> Marketing and Sales-> Operations-> Outbound Logistics-> Service
3) The owner of Company Inc. needs to hire new senior management for the company, what kind of
decision is this?
        a) Structured decision
        b) Semistructured decision
        c) Unstructured decision
        d) Complex decision

Chapter 2
4) Going to Wal-Mart and buying a good and giving the cashier cash for the good goes
with which type of cycle?
       a) Production cycle
       b) Expenditure cycle
        c) Financing cycle
        d) Revenue cycle
5) Out of the following which is not useful data for a sales transaction?
        a) Quantity of each item sold
        b) Item(s) sold
        c) Type of item sold
        d) Total amount of the sale
6) Prenumbered checks, invoices, and purchase orders use what type of coding system, so
that there will be no gaps in the sequence?
        a) Block code
        b) Group code
        c) Single code
        d) Sequence code


Chapter 3
7) A data flow diagram (DFD) graphically describes the flow of data within an
organization, which one is not one of the four basic elements that DFD is composed of?
        a) Data flows
        b) Data sources and destinations
        c) Data processes
        d) Data stores
8) This type of flowchart is useful in analyzing the adequacy of control procedures in a
system, such as internal checks and segregation of functions.
        a) System flowchart
        b) Document flowchart
        c) Internal control flowchart
        d) Program flowchart
9) Which one is not a place where data is stored?
        a) File
        b) Diskette
        c) Terminal
        d) On-line storage

Chapter 4
10) A store manager thinks about his information on customers and how it is stored, this
is called?
        a) Physical view
        b) Imagination view
        c) Logical view
        d) Temporary view
11) Every DBMS must provide a means of performing the three basic functions of
creating, changing, and querying the database. Which language of DBMS describes the
logical views for each individual user or programmer?
        a) Data manipulation language (DML)
        b) Data definition language (DDL)
        c) Data query language (DQL)
        d) Data internal language (DIL)
12) Several problems can occur when you try to store all the sales invoice data in one
table. Which of the follow has to do with changes in vales not being correctly recorded?
        a) Update anomaly
        b) Insert anomaly
        c) Delete anomaly
        d) Correction anomaly


Chapter 1

1.     What occurs when the activity of a subsystem is not consistent with another
       subsystem or with the larger system?

            a)   information overload
            b)   goal conflict
            c)   goal congruence
            d)   information inconsistency

2.     What word describes dependable and faithfully portraying events and activities?

            a)   reliability
            b)   relevance
            c)   completeness
            d)   timeliness

3.     The AIS design is affected by all the following except:

            a)   Information Technology
            b)   strategy
            c)   support activities
            d)   occupational culture

Chapter 2

1.     Internal Parties include:

            a)   customers
            b)   creditors
            c)   vendors
            d)   management

2.     All of the following are a transaction cycle except:

            a) information cycle
            b) expenditure cycle
            c) production cycle
            d) payroll cycle


3.    In what system is the series of operations performed on data referred to as the data
      processing cycle?

            a)   manual
            b)   data
            c)   AIS
            d)   computer based

Chapter 3

1.    What flowchart depicts the relationship among the input, processing, and out put
      of the AIS?

            a)   program
            b)   system
            c)   process
            d)   document

2.    What flowchart illustrates the flow of documents and information among areas of
      responsibility within an organization?

            a)   program
            b)   system
            c)   process
            d)   document

3.    Data sources are represented in a data flow diagram as a:

            a)   square
            b)   circle
            c)   triangle
            d)   two parallel lines

Chapter 4

1.    Which of the following is NOT a benefit of database technology?

            a)   Data integration
            b)   data sharing
            c)   more data inconsistencies
            d)   cross-functional analysis
2.     All of the following are a DBMS language except:

            a)   data definition language
            b)   query information language
            c)   data manipulation language
            d)   data query language

3.     An attribute, or combination of attributes, that uniquely identifies a specific row
       in a table is called a/an_______?

            a)   primary key
            b)   foreign key
            c)   anomaly
            d)   tuple


Chapter 1

1. Data that have been organized and processed to provide meaning to a user are?

      a.    Information
      b.    Goal Conflict
      c.    AIS
      d.    Value Chain
Answer: a

2. Which one of the following is NOT one of the characteristics that make information
useful?

      a.    Relevance
      b.    Reliability
      c.    Completeness
      d.    None of the above
Answer: d

3. A system that collects, records, stores, and processes data to produce information to
decision makers is a(n)?

      a.    AIS
      b.    MIT
      c.    AAA
      d.    WVU
Answer: a
Chapter 2

1. The interaction between external and internal parties is usually?

      a.    one way
      b.    two way
      c.    three way
      d.    no way
Answer: b




2. The 5 major transaction cycles include all of the following except?

      a.    Revenue
      b.    Expenditure
      c.    Production
      d.    Management
Answer: d

3. The give-get of the Financing Cycle is?

      a.    give cash-get cash
      b.    give goods-get goods
      c.    give cash-get goods
      d.    give cash-get labor
Answer: a


Chapter 3

1. Which one of the following is NOT one of the 4 basic DFD elements?

      a.    Data Sources and Destinations
      b.    Data Flows
      c.    Data Stores
      d.    Flowcharts
Answer: d

2. Data sources and Destinations appear in a DFD as?

       a. arrows
       b. triangles
      c. squares
      d. diamonds
Answer: c

3. Data Flow Diagrams place heavy emphasis on _________ of a system whereas
Flowcharts place more emphasis on _________ of a system.

      a.    logical aspects / physical characteristics
      b.    physical characteristics / logical aspects
      c.    the same emphasis is on both
      d.    none of the above
Answer: a




Chapter 4

1. All the fields containing data about one entity for a(n)?

      a.    record
      b.    table
      c.    attribute
      d.    database
Answer: a

2. A(n) ______ describes the logical structure of a database.

      a.    entity
      b.    file
      c.    class
      d.    schema
Answer: d

3. A(n) _______ is an abstract representation of the contents of a database.

      a.    data model
      b.    data storage
      c.    data item
      d.    none of the above
Answer: a


                                        Chapter 1
1.) ___________ occurs when a decision or action of a subsystem is inconsistent with
another subsystem or the system as a whole.
       A: Goal Congruence
       B: Goal Conflict
       C: Information Overload
       D: Integration
       Answer: B

2.) An organization’s value chain consists of all of the primary activities that directly
provide value to its customers except
       A: Inbound Logistics
       B: Operations
       C: Technology
       D: Marketing and Sales
       Answer: C

3.) __________________ relates to the effective and efficient performance of specific
tasks.
       A: Operational Control
       B: Management Control
       C: Strategic Planning
       D: Low Cost Strategy
       Answer: A
                                       Chapter 2
1.) The __________________ cycle is where raw materials are transformed into finished
goods.
        A: Revenue
        B: Financing
        C: Expenditure
        D: Production
        Answer: D

2.) __________________ is a list of all general ledger accounts an organization uses.
       A: Sequence Codes
       B: Chart of Accounts
       C: Subsidiary Ledger
       D: General Journal
       Answer: B

3.) __________________ is a characteristic of interest, which needs to be stored.
       A: Record
       B: Entity
       C: Attribute
       D: File
       Answer: C
                                       Chapter 3
1.) __________________is/are the data flow diagram symbol for transformation
processes.
       A: A square
       B: Two horizontal lines
       C: Straight or curved lines with arrows
       D: A circle
       Answer: D

2.) __________________depict the relationship among the input, processing, and output
of an Accounting Information System.
       A: System Flowcharts
       B: Program Flowcharts
       C: Document Flowcharts
       D: Internal Control Flowcharts
       Answer: A

3.) __________________are written step-by-step explanations of system components and
interactions.
        A: Documentations
        B: Data Sources
        C: Narrative Descriptions
        D: Transformation Processes

                                       Chapter 4
1.) __________________is used to interrogate the database. It is also responsible for
retrieving, storing, ordering, and presenting subsets of the database in response to user
queries.
        A: Data Definition Language (DDL)
        B: Data Query Language (DQL)
        C: Data Manipulation Language (DML)
        D: All of the above
        Answer: B
2.) All of the following are advantages of database systems except:
        A: Data integration
        B: Reporting flexibility
        C: Data redundancy
        D: Data sharing
        Answer: C

3.) The rule, __________________, explains that the primary key cannot be null.
        A: Attribute integrity rule
      B: Referential integrity rule
      C: Entity integrity rule
      D: None of the above
      Answer: D

Chapter 1

   1. What is the characteristic of making information useful?
        a. Relevance
        b. Reliability
        c. Completeness
        d. All the above

Answer: d


   2. ____________ is the accounting, finance, legal and general administration
      activities that allow an organization to function.
          a. Human resources
          b. Technology
          c. Firm infrastructure
          d. Purchasing

Answer: C


   3. _________ information is required to conduct business with external parties.
         a. mandatory
         b. Internal
         c. External
         d. Essential


Answer: d


Chapter 2

  1. Major activity of revenue is
        a. Receive customer payments
        b. Update payroll records
        c. Handle purchase returns
        d. Store goods
Answer: a


  2. The cycle where raw materials are transformed into finished goods is called
        a. Revenue
        b. Production
        c. Expenditure
        d. Financing

Answer: b


  3. Which cycle is involving interactions with customers?
       a. Production
       b. Expenditure
       c. Revenue
       d. Business

Answer: c


Chapter 3

    1. Which symbols represent the device used to store data that the system is not
       using right now?
        a. processing
        b. Input
        c. Flow
        d. Storage

Answer: d


    2. Which flowcharts describe the flow of documents and information of an
       organization?
        a. Internal control
        b. External control
        c. General
        d. Document

Answer: d
    3. What percentages of professionals use DFDs?
       a. 68.2%
       b. 97.6%
       c. 62.5%
       d. 76.2%

Answer: c

Chapter 4

   1. Which data language used to build the data dictionary and create database?
       a. The data query language
       b. The data manipulation language
       c. The data definition language
       d. None of the above
Answer: c

   2. A _________ illustrate the logical structure of a database.
        a. data
        b. tuple
        c. files
        d. schema
Answer: d

   3. Which level of schema provides a low level view of database?
        a. External level
        b. Internal level
        c. Conceptual level
        d. Relational level
Answer: b

Chapter 1


   1. _____ occurs when the activity of a subsystem is not consistent with another
      subsystem or with the larger system.
     A. Goal congruence
     B. Goal conflict
     C. Goal resolution
     D. Goal acceptance

   2. Organizations collect data about:
   A. events
B. resources
C. agents
D. all of the above

3.   Benefits of information – cost of information = ________.
A.   value of information
B.   information overload.
C.   Information costs.
D.   All of the above.

Chapter 2

1.   Giving goods and getting cash is the _______ cycle.
A.   expenditure
B.   production
C.   revenue
D.   financing

2. A ________ file is a file that stores cumulative information about an
   organization’s entities.
A. transaction
B. master
C. entity
D. attribute

3.   Which is not a type of output?
A.   documents
B.   reports
C.   queries
D.   processing



Chapter 3

1.   Which is not a type of flowcharting symbol?
A.   input/output
B.   processing
C.   storage
D.   attribute

2.   A rectangle is a ______ symbol.
A.   Computer processing
B.   Manual operation
C.   Online storage
D.   document
   3.   A decision is represented by a ____.
   A.   circle
   B.   rectangle
   C.   diamond
   D.   arrow

   Chapter 4

   1.   Which are benefits of database technology?
   A.   data integration
   B.   data sharing
   C.   reporting flexibility
   D.   all of the above

   2.   A ______ describes the logistical structure of a database.
   A.   schema
   B.   attribute
   C.   file
   D.   none of the above

   3.   The entity integrity rule states that _______.
   A.   the primary key has to be 1.
   B.   the primary key cannot be null.
   C.   the primary key has to be a number
   D.   none of the above.


Chapter 1

   1. ___________ occurs when the subsystem’s goals are in line with the
      organizations goals.

            a.   goal conflict
            b.   goal congruence
            c.   goal orientated
            d.   none of the above

            Answer: B

   2. Facts that are collected, recorded, stored and processed by an information system
      is/are called ____________.

            a. Information
            b. System concepts
            c. Data
            d. A and C

            Answer: C

   3. Benefits of Information may include

            a.   reduction of uncertainty
            b.   improved decisions
            c.   improved ability to plan and schedule activities
            d.   All of the above

            Answer: D

Chapter 2

   1. Which one of the five major business transaction cycles involves interaction with
      employees?

            a.   revenue cycle
            b.   expenditure cycle
            c.   production cycle
            d.   human resource/payroll cycle

            Answer: D

   2. Which one of the five major business transaction cycles involves interactions with
      investors and creditors

            a.   Revenue Cycle
            b.   Expenditure cycle
            c.   Financing cycle
            d.   Production cycle

            Answer: C

   3. Which step is not a step in the data processing cycle

            a.   data input
            b.   data storage
            c.   data processing
            d.   These are all steps.

            Answer: D

Chapter3
   1. ____________ show graphical descriptions of the sources and destinations of
      data.

            a.   Data Flow diagrams
            b.   Document Flowcharts
            c.   System Flowcharts
            d.   Program Flowcharts

            Answer: A

   2. Which of the following is considered to be a basic element in a data flow
      diagram?

            a.   data sources and destinations
            b.   data stores
            c.   a and b
            d.   none of the above

            Answer: C

   3. In a data flow diagram processes appear as a _____ and represent ________.

            a. arrows; the flow of data between sources and destinations, processes, and
               data stores
            b. Squares; organizations or individuals that send or receive data used or
               produced by the system.
            c. Circles; the transformation of data
            d. None of the above

            Answer: C

Chapter 4

   1. A ______ is anything about which the organization wishes to store data.

            a.   attributes
            b.   entity
            c.   field
            d.   record

            Answer: B

   2. Database technology provides which of the following benefits to organizations

            a. Data Integration
            b. Data sharing
            c. Data independence
            d. All of the above

            Answer: D

   3. Which of the following is not one of the three levels of a schema?

            a.   internal level
            b.   external level
            c.   first level
            d.   conceptual level


Chapter 1

   1) ______________ decisions are characterized by incomplete decision making rules
      and the need for subjective assessments and judgments to supplement formal data
      analysis.
   a. Structured
   b. Semistructured
   c. Unstructured
   d. Constructed

   2)   Which of the following is not an example of a Support Activity?
   a.   Human Resources
   b.   Technology
   c.   Firm Infrastructure
   d.   Marketing and Sales

   3) A _______________ strategy entails adding features or services not provided by
      competitors to a product so you can charge customers a premium price.
   a. Low-cost
   b. Product Differentiation
   c. Access-based
   d. Planning


Chapter 2

   1) The ________________ is the transaction cycle in which goods and services are
      sold for cash or a future promise to pay cash.
   a) Revenue Cycle
   b) Expenditure Cycle
   c) Production Cycle
   d) Financing Cycle
   2)   An employee’s pay rate is an example of a(n):
   a)   record
   b)   entity
   c)   attribute
   d)   field

   3) A general journal is used to record:
   a. cash receipts
   b. loan payments
   c. purchases on account
   d. cash disbursements
Chapter 3

   1)   Processing symbols are used to
   a.   show what type of device is used to process data
   b.   indicate when processing is performed manually
   c.   a. & b.
   d.   none of the above

   2)   Data sources and data destinations are represented by
   a.   squares
   b.   circles
   c.   triangles
   d.   rectangles

   3) Which of the following is not one of the four basic elements of a data flow
      diagram?
   a. data sources and destinations
   b. data flows
   c. data charts
   d. data stores


Chapter 4

   1) The _________________ contains information about the structure of the
      database.
   a. schema
   b. data dictionary
   c. data warehouse
   d. data chart

   2) Which of the following is used for updating, inserting, and deleting portions of
      the database?
   a. data query language
   b. data definition language
   c. data delivery language
   d. data manipulation language

   3)   An attribute in a table that is a primary key in another table is a
   a.   foreign key
   b.   standard key
   c.   comparable key
   d.   cross key



Chapter 1


1. What type of decisions can often be fully automated?
      a. unstructured decisions
      b. semistructured decisions
      c. structured
      d. All of the above
      e. None of the above
      Answer: C.

2. A variety-based strategic position offers
       a. a wide range of products and services
       b. a subset of the industry’s products or services
       c. products or services to serve most of the needs of particular group of
       customers
       d. products or services to customers in a specific geographic location
       Answer: B.

3. What decision scope relates to establishing organizational objectives and policies for
accomplishing those objectives?
      a. Management control
      b. Operational control
      c. Strategic planning
      d. All of the above
      e. None of the above
      Answer: C.

Chapter 2


4. Retail stores do not utilize which on of these major transaction cycles in its AIS?
       a. revenue cycle
       b. financing cycle
       c. production cycle
       d. all of the above
       e. none of the above
       Answer: C.


5. Which type of data processing method is more accurate?
      a. batch processing
      b. real-time processing
      c. both a and b have the same accuracy
      d. none of the above
      Answer: B.

6. A group of interrelated, centrally coordinated computer files are
       a. transaction files
       b. database files
       c. master files
       d. none of the above
       Answer: B.


Chapter 3


7. In addition to data sources and destinations, a context diagram includes
        a. a data store
        b. a transformation process
        c. all of the above
        d. none of the above
        Answer: B.

8. Which is the highest level data flow diagram?
       a. Level 0 DFD
       b. Level 1 DFD
       c. Level 2 DFD
       d. A context DFD
       Answer: D.

9. Which would be an example of a designated Level 2 process on a DFD?
       a. 0.2
       b. 1.2
       c. 2.0
       d. 2.2.2
       Answer: D.
Chapter 4

10. Semantic data modeling has which of the following advantages over normalization?
      a. Produce tables in third normal form, which are free to delete anomalies
      b. Make use of a system designer’s knowledge about business processes and
      practices
      c. Resulting graphical model explicitly represents information about the
      organization’s business processes and policies
      d. a and b
      e. b and c
      Answer: E.

11. Creating smaller tables with primary and foreign keys solves which of the following
anomalies?
       a. insert anomaly
       b. delete anomaly
       c. update anomaly
       d. all of the above
       Answer: D.

12. The relational data model of DBMS’s represents data in the form of
       a. graphs
       b. charts
       c. tables
       d. none of the above
       Answer: C.

Ch. 1

   1. ________ are sets of interrelated components that interact to achieve a goal.
         a. Data
         b. Information
         c. Systems
         d. None of the above
   2. ________ occurs when the subsystem’s goals are in line with the organization’s
      goals.
         a. Goal conflict
         b. Goal congruence
         c. System alignment
         d. Matching
   3. Which of these actions would be considered to “add value?”
         a. Make a product faster
         b. Make a product more reliable
         c. Make a product with enhanced features
         d. All of the above
Ch. 2

   1. In which cycle would you sell a good or service in order to get cash?
          a. Revenue cycle
          b. Production cycle
          c. Financing cycle
          d. Expenditure cycle
   2. A _________ is a set of interrelated, centrally-coordinated files.
          a. File
          b. Database
          c. Record
          d. Field
   3. In which cycle would you raise capital through stock or debt?
          a. Revenue cycle
          b. Production cycle
          c. Financing cycle
          d. Expenditure cycle

Ch. 3

   1. A ________ is a graphical description of the sources and destinations of data.
         a. System flowchart
         b. Document flowchart
         c. Program flowchart
         d. Data flow diagram
   2. What should be included on each page of a data flow diagram?
         a. Name of the DFD
         b. Date prepared
         c. Preparer’s name
         d. All of the above
   3. This symbol -     - represents what in a flowchart?
         a. Decision
         b. On-page connector
         c. Document
         d. File

Ch. 4

   1. Very large databases are called what
         a. DBMS
         b. Data warehouses
         c. Records
         d. All of the above
   2. Which one of the following is not a level of schema in a database?
         a. Internal level
         b. External level
         c. Interrelated level
         d. Conceptual level
   4. Every DBMS must provide a means of performing the three basic functions of:
         a. Creating a database
         b. Querying a database
         c. Changing a database
         d. All of the above


Chapter 1
1.     __________ occurs when the activity of a subsystem is not consistent with
       another subsystem or with the larger system.
       a. goal conflict
       b. goal congruence
       c. information overload
       d. systems concept
2.     __________ are facts that are collected, recorded, stored, and processed by an
       information system.
       a. information
       b. data
       c. events
       d. agents
3.     All of these are characteristics that make information useful except:
       a. relevance
       b. reliability
       c. timeliness
       d. organization
Chapter 2
1.     All of these are major transaction cycles for basic exchanges except:
       a. revenue cycle
       b. production cycle
       c. expenditure cycle
       d. tax cycle
2.     A _________ is an agreement between two entities to exchange goods or services.
       a. data
       b. sales order
       c. transaction
       d. invoice
3.     Employees are hired, trained, paid, evaluated, promoted, and terminated in what
       cycle.
       a. revenue
       b. HR/payroll
       c. finance
       d. expenditure
Chapter 3
1.     ___________ promulgated by the PCAOB requires that the external auditor
       express an opinion on the client’s system of internal controls.
       a. SAS-94
       b. SOX (2002)
       c. Auditing Standard No. 2
       d. none of the above


2.     A data flow diagram consists all these basic elements except:
       a. Data sources and destinations
       b. Data flows
       c. Transformation processes
       d. Data stores
       e. all of the above
3.     The highest level of DFD is called a __________.
       a. context diagram
       b. flowchart
       c. department
       d. destination
Chapter 4
1.     A(n) _______ is anything about which the organization wishes to store data.
       a. entitiy
       b. field
       c. attribute
       d. record
2.     As technology improves, many large companies are developing very large
       databases called ____________.
       a. data administrator
       b. data warehouse
       c. data system
       d. data shed
3.     A _______ describes the logical structure of a database.
       a. field
       b. file
       c. schema
       d. attribute


Chapter 1
1) If information is available to users when they need it and in a format they can use,
then it is described as:
         a) timely
         b) accessible
         c) verifiable
         d) relevant
                 answer: b
2) Account Information Systems are important to learn about because we will learn how
to:
      a) use information to make decisions
      b) collect data and turn the data into useful information
      c) create financial reports
      d) steal large amounts of money
              answer: b

3) Shipping is considered part of what primary activity:
       a) service
       b) operations
       c) marketing and sales
       d) outbound logistics
               answer: d

Chapter 2
1) The file that stores the cumulative information about an organization, including their
resources and the agents they interact with is called a(n):
       a) master file
       b) transaction file
       c) data file
       d) entity file
               answer: a

2) Reports are primarily prepared for:
      a) internal users to make decisions and design strategies
      b) external users to evaluate the company
      c) both a & b
      d) neither a or b
              answer: c

3) What is not a type of file processing:
      a) updating
      b) changing
      c) recording
      d) deleting
              answer: c

Chapter 3:
1) In flowcharting, a         means:
        a) the operation is processed manually
        b) a document needs prepared
        c) the document has been filed
        d) a decision needs made
                answer: d
2) System flowcharts:
        a) depict the relationship among the input, processing, and output of and
accounting information system
        b) illustrate the sequence of logical operations performed by a computer in
executing a program
        c) illustrate the flow of documents and information among areas of responsibility
in an organization
        d) graphically describe the flow of data within an organization
                answer: a

3) Which is not a category of flowcharting symbols?
      a) storage
      b) data flow
      c) input/output
      d) processing
              answer: b

Chapter 4
1) Data query language (DQL) is used to:
       a) interrogate the database
       b) build the data dictionary
       c) maintain the data
       d) create the database
               answer: a

2) The attribute that uniquely identifies a specific row in a table is called the:
       a) foreign key
       b) entity key
       c) data key
       d) primary key
               answer: d

3) What does a schema describe?
      a) the logical structure of database
      b) how the data is physically arranged and stored in a system
      c) the ability of a database to share data
      d) how the data is managed
              answer: a



Ch1.
   1. Which of the following choices is not one of the components of an Accounting
      Information System(AIS)?
          a) The software used to process the organization’s data
          b) The people that operate the system
          c) The location at which the organization operates
          d) The data about the organization
       Answer: c

   2. Which type of primary activity distributes finished products or services to
      customers?
          a) Marketing and sales activities
          b) Inbound logistics activities
          c) Operations activities
          d) Outbound logistics activities
      Answer: d

   3. Structured decisions that are repetitive and routine are performed by what level of
      employees in an organization?
          a) Mid-level managers
          b) Lower-level employees
          c) Owners
          d) Executive level
      Answer: b

Ch2.
   1. The _________ cycle, is where goods and services are sold for cash or a future
      promise to pay cash.
         a) Production
         b) Financing
         c) Revenue
         d) Expenditure
      Answer: c

   2. An ATM is an example of what type of device?
          a) Source data automation device
          b) Source document
          c) Banking transaction device
          d) A turnaround document
      Answer: a
   3. A _______ is a set of fields that contains data about various attributes of the same
      entity.
          a) File
          b) Record
          c) Database
          d) General Ledger
      Answer: b

Ch3.
       1. _________ depicts the relationship between the input, processing, and output
          of an AIS.
              a) Program Flowchart
              b) System Flowchart
              c) Input/Output Symbols
              d) Processing Symbols
       Answer: b

       2. A ____________ graphically describes a flow of data within an organization
             a) System Flowchart
             b) Program Flowchart
             c) Data Flow Diagram (DFD)
             d) Data Destination
       Answer: c

       3. A data store is described as what?
             a) The highest level DFD
             b) The Transformation of data
             c) Repository of Data
             d) Storage Medium
       Answer: c

Ch4.
       1. A _________ describes the logical structure of a database.
             a) Schema
             b) Data Dictionary
             c) Logical View
             d) Physical View
       Answer: a

       2. Data definition languages (DDL) in Database Systems are used to:
             a) Build the data dictionary
             b) Describe logical views for each individual user
             c) Initialize/Create the database
             d) All of the above
       Answer: d

       3. What is the process of following the guidelines for properly designing a
          relational database that is free from delete, insert, and update anomalies?
              a) Using a primary key
              b) Using a foreign key
              c) Normalization
              d) Using a data model
       Answer: c
Chapter 1

    1. Organizations collect data about:
          A. events that occur
          B. resources that are affected by events
          C. agents who participate in the events
          D. all of the above

Answer: D

    2.                  is receiving, storing, and distributing the materials that are inputs
    to the organization’s product or service.
        A. operations
        B. inbound logistics
        C. outbound logistics
        D. marketing and sales

Answer: B

    3.                   primarily uses discretionary information.
         A. internal users
         B. external users
         C. management
         D. stockholders

Answer: A

Chapter 2

1. A                 is an agreement between two entities to exchange goods.
         A. input
         B. cycle
         C. transaction
         D. output

Answer: C

2. In            systems, data is entered into paper journals and ledgers.
         A. manual
         B. computer-based
         C. scan
         D. automatic

Answer: A
3. When non-routine transactions occur, they are recorded in the ___________.
      A. cash receipts journal
      B. special journal
      C. other journal
      D. general journal

Answer: D

Chapter 3

   1. The highest level of DFD is called a __________.
         A. top level
         B. context diagram
         C. maximum level
         D. flowchart

Answer: B

   2. On each page of a DFD _____________ should be included.
         A. the name of the DFD
         B. the date prepared
         C. the preparer’s name
         D. all of the above

Answer: D

   3. ___________ place more emphasis on the physical characteristics of the system.
         A. DFD’s
         B. general ledgers
         C. flowcharts
         D. computer program

Answer: C

Chapter 4

   1. A set of all related records forms a ________.
         A. file
         B. entity
         C. attribute
         D. field

Answer: A


   2. ___________ is achieved by combining master files into larger pools of data
      accessible by many programs.
         A. data sharing
            B. data integration
            C. data redundancy
            D. data independence

Answer: B

   3. The three levels of schema are:
         A. conceptual level
         B. external level
         C. internal level
         D. all of the above

Answer: D


Chapter 1
   1. Data is different from information. Data is…
          a. Facts that are collected, recorded, and stored
          b. A collection of facts that has been organized and processed
          c. Surveys, maps, statistics, etc
          d. Things you read in a book
       Answer: A
   2. Value of Information is a combination of what things?
          a. Benefits and costs
          b. Benefits and relevance
          c. Reliability and relevance
          d. Costs and completeness
       Answer: A
   3. AIS’ role in the value chain is…
          a. Inbound logistics/outbound logistics
          b. Operations/marketing
          c. Service
          d. All of the above
       Answer: D

Chapter 2
   1. A computer based storage concept is
          a. Data storage
          b. Attribute
          c. Data input
          d. Field
       Answer: B
   2. A group of related records is a
          a. Attribute
          b. Entity
          c. File
         d. Data dictionary
      Answer: C
   3. The final step in information processing is…
         a. Data input
         b. Data processing
         c. Information output
         d. None of the above
      Answer: C

Chapter 3
   1. In documentation, other written materials include all of the following except:
          a. Information output
          b. Memos
          c. Software
          d. Manuals
       Answer: A
   2. DFD’s must include the name of the DFD, the date prepared, and___________.
          a. Preparer’s name
          b. Financial institutions name
          c. Name of vendor
          d. Name of CEO
       Answer: A
   3. In data flow diagrams, squares indicate ________ and circles indicate
       ___________.
          a. Inputs, outputs
          b. Nouns, verbs
          c. Verbs, nouns
          d. Outputs, inputs
       Answer: B

Chapter 4
   1. Where is database systems found?
          a. AIS
          b. Mainframe computer sites
          c. PC’s
          d. All of the above
       Answer: D
   2. When you combine master files into larger pools of data accessible by many
       programs you are performing data __________?
          a. Integration
          b. Sharing
          c. Redundancy
          d. Independence
       Answer: A
   3. In database systems, there are 2 views. What is one?
          a. DBMS view
          b. Operating systems view
          c. Logical view
          d. Database view
       Answer: C

Chapter 1
1. Information is ________.
    a) different than data
    b) data that has been processed
    c) useful for decision making
    d) all of the above
Answer: d

2. Which of the following does not make information useful?
   a) Relevance
   b) Reliability
   c) Completeness
   d) Length
Answer: d

3. A function of an AIS is to:
    a) Sell products
    b) Meet potential employers
    c) Collect and store data about events, recourses, and agents.
    d) Organize effective solutions to common business related problems.
Answer: c

4. Goal conflict occurs when?
    a) The activity of a subsystem is not consistent with another subsystem or with the
        larger system.The subsystem’s goals are in line with the organization’s goals
    c) Employees recognize the importance of AIS.
    d) The activity of a subsystem is consistent with another subsystem and with the larger
        system.
Answer: a

Chapter 2
1. Any event that can be measured in economic terms by an organization is a ________.
   a) Transaction
   b) Purchase
   c) Sale
   d) Liability
Answer: a

2. Which of the following is not a major transaction cycle?
   a) Revenue
   b) Expenditure
   c) Purchasing
   d) Production
Answer: c


3. Which of the following is not one of the four steps of the data processing cycle?
   a) Data Input
   b) Data Storage
   c) Data Processing
   d) Data Production
Answer: d

Chapter 3
1. Which of the following is not one of the four basic elements of a data flow diagram?
    a) Data sources and destinations
    b) Data inputs
    c) Transformation processes
    d) Data stores
Answer: b

2. In a data flow diagram Processes represent _______.
    a) The transformation of data
    b) The input of data
    c) The sale of goods
    d) All of the above
Answer: a

3. Which of the following is not a type of flow chart symbol?
   a) Input/output
   b) Processing
   c) Storage
   d) Accounting
Answer: d

Chapter 4
1. A _________ describes the logical structure of a database.
       a) Relationship
       b) Query
       c) Schema
       d) File organization
Answer: c

2. A ________ represents everything in the database as being store in the forms of tables.
   a) Relational data model
   b) Query
   c) Master file
   d) Primary key
Answer: a

3. The Data Dictionary is ________.
    a) Not necessarily useful in a database
   b) Contains information about the structure of the database
   c) Contains a record for some corresponding data elements in a database
   d) None of the above.
Answer: b


Chapter 1
  1. ______ ______ occurs when the human mind cannot effectively absorb or process
      more information.
  a. Information value
  b. Information overload
  c. Goal conflict
  d. Goal congruence

   Answer: b. Information overload

   2. _____ _____ are repetitive, routine, and understood decisions on actions to take.

   a.   Structured decisions
   b.   Semi-structured decisions
   c.   Unstructured decisions
   d.   Strategic planning

   Answer: b. Structured decisions

   3. How do AIS accounting information systems add value to organizations?

   a.   Improve efficiency
   b.   Improve decision making
   c.   Improve knowledge
   d.   All of the above

   Answer: d. All of the above

   Chapter 2
   1. What transaction cycle is the cycle where raw materials are transformed into
      finished goods?

   a.   Revenue cycle
   b.   Expenditure cycle
   c.   Human resources cycle
   d.   Production cycle

   Answer: d. Production cycle
2. Many financial reports are prepared for and used by:

a.   Internal users
b.   External users
c.   Those individuals who have nothing vested in the company
d.   None of the above
e.   Both A & B
f.   All of the above

Answer: e. Both A & B

3. _____ request specific information from a computer.

a.   Questions
b.   Auditors
c.   Queries
d.   Checks

Answer: c. Queries

Chapter 3
1. _____ _____ are written step-by-step explanations of system components and
   interactions

a.   Document reports
b.   Adjusting entries
c.   Narrative descriptions
d.   Data diagrams

Answer: c. Narrative descriptions

2. _____ _____ represent the movement between processes

a.   Data destinations
b.   Data sources
c.   Data flows
d.   None of the above

Answer: c. Data flows
   3. What do circles represent in data flow diagrams DFD’s?

   a.   Nouns (destinations)
   b.   Documents
   c.   Verbs (actions)
   d.   Taxes

   Answer c. Verbs (actions)

   Chapter 4
   1. _____ describes the logical structure of a database:

   a.   Reports
   b.   Schemas
   c.   Integrations
   d.   Independences

   Answer: b. Schemas

   2. _____ _____ _____ is the organization-wide view of the entire database:

   a.   External-level schema
   b.   Conceptual-level schema
   c.   Internal-level schema
   d.   None of the above

   Answer: b. Conceptual-level schema

   3. In relational database queries, what Query number answers the question of what
      the invoice number of all sales made, and who made those sales?

   a.   Query 1
   b.   Query 2
   c.   Query 3
   d.   Query 4
   e.   Query 5

   Answer: a. Query 1

Chapter #1

1. What happens when you pass the amount of information the human mind can
effectively absorb and process?
a. goal overload
b. data overload
c. goal conflict
d. information overload


2. What is a system that collects, records, stores, and processes data to produce
information for decision makers?
a. goal information system
b. financing information system
c. accounting information system
d. information technology infrastructure


3. Which of these is not a factor that influences the design of the accounting information
system?
a. economy
b. strategy
c. developments in information technology
d. organizational culture


Chapter #2


1. Which of these is not one of the five major transaction cycles?
a. revenue cycle
b. financing cycle
c. asset cycle
d. production cycle
2. What is the systematic assignment of numbers or letters to items to classify and
organize them?
a. coding
b. number cycle
c. input
d. output


3. Checks, receipts, and invoices are all examples of what?
a. files
b. attributes
c. reports
d. documents


Chapter #3
1. What is a temporary or permanent repository of data?
a. process
b. data store
c. diagram
d. data flow


2. Which flowchart depicts the relationship among the input, processing, and output of
the Accounting Information System?
a. program flowchart
b. system flowchart
c. data flowchart
d. internal control flowchart


3. What provides the reader with a summary level view of a system and is the highest
level DFD?
a. processes
b. flowchart
c. context diagram
d. templates


Chapter #4
1. Who is responsible for the database?
a. accountant
b. manager
c. database secretary
d. database administrator


2. What is used for data maintenance, which includes such operations as updating,
inserting and deleting portions of the database?
a. data query language
b. data updating language
c. data manipulation language
d. data definition language


3. What starts with the assumption that everything is initially stored in one large table?
a. normalization
b. digitizing
c. entity integrity rule
d. schemas

Name: Daniel Rogers

Chapter 1:

    1. Data that have been organized and processed to provide meaning to a user is
       referred to as:
           a. Integration
           b. System
           c. Information
           d. Synergy

    2. Which of the following is not a primary activity of the value chain?
         a. Operations
         b. Service
         c. Marketing
         d. Technology
   3. A company that strives to be the most efficient producer of a product or service
      would best be described is pursuing what kind of strategic position?
         a. Needs-based
         b. Low-cost
         c. Variety-based
         d. Product Differentiation

Chapter 2:

   1. The transition cycle in which goods and services are sold for cash or a future
      promise to pay cash is known as the:
         a. Revenue cycle
         b. Production cycle
         c. Financing cycle
         d. Expenditure cycle

   2. What item contains summary-level data for every asset, liability, equity, revenue,
      and expense account of an organization?
         a. Source document
         b. Subsidiary ledger
         c. Cash budget
         d. General ledger

   3. Which step of the data processing cycle captures the data for each transaction and
       enters that transaction into the system?
           a. Data Storage
           b. Data Input
           c. Information Output
           d. Data Processing
Chapter 3:

   1. In a data flow diagram, what does a process represent?
          a. The transformation of data
          b. The source of data
          c. The flow of data
          d. The storage of data

   2. Which of the following is a basic element of a Data Flow Diagram (DFD)?
        a. Data sources and destinations
        b. Data flows
        c. Data stores
        d. All of the above

   3. In a DFD, what would a square represent?
          a. Data flow
          b. Data Source
             c. Processes
             d. Data storage

Chapter 4:

   1. An individual user’s view of a subset of the organization’s database is known as
      a(n):
          a. Internal-level schema
          b. Conceptual-level schema
          c. External-level schema
          d. Logical-level schema

   2. What key component of a DBMS contains information about the structure of the
      database?
          a. Data model
          b. Relation
          c. Data dictionary
          d. Schema

   3. Which of the following would managers use to update portions of the database?
        a. DDL
        b. DSL
        c. DQL
        d. DML


Chapter 1

   1. Decisions that are repetitive, routine, and understood well are:
          a. Semistructured Decisions
          b. Structured Decisions
          c. Unstructured Decisions
          d. Operational Decisions
   2. A strategy that entails being the most efficient producer of a product or service is:
          a. Product differentiation strategy
          b. Needs-based strategy
          c. Variety-based strategy
          d. Low-cost strategy
   3. Most internal information is:
          a. Mandatory information
          b. Essential information
          c. Incorrect information
          d. Discretionary information

Chapter 2
   1. In which cycle are goods and services sold for cash or a future promise to pay
      cash?
          a. Revenue cycle
          b. Expenditure cycle
          c. Production cycle
          d. Financing cycle
   2. A system where items are numbered consecutively to ensure that there will be no
      gaps is a:
          a. Sequence code
          b. Block code
          c. Group code
          d. Block and group combination
   3. The journal used to record infrequent or nonroutine transactions is the:
          a. Specialized journal
          b. Sales journal
          c. Receipts journal
          d. General journal

Chapter 3

   1. A graphical description of the input, processing, and output relationships is a:
         a. Data flow diagram
         b. Document flowchart
         c. System flowchart
         d. Program flowchart
   2. Which of the following is the usual symbol for a magnetic disk?



            a.


            b.




            c.




         d.              Correct Answer
   3. A graphical description of the logical sequences found in computer software is a:
         a. Data flow diagram
         b. Document flowchart
         c. System flowchart
         d. Program flowchart
Chapter 4

   1. Which type of language is responsible for data maintenance within in database?
          a. Data definition language
          b. Data manipulation language
          c. Data creation language
          d. Data query language
   2. A unique attribute or combination of attributes that identifies a specific row of a
      table is a:
          a. Primary key
          b. Secondary key
          c. Foreign key
          d. Uniform key
   3. Which of the following is not a necessity of a relational database?
          a. Every column in a row must be single valued
          b. Primary keys must be null
          c. Foreign keys, if not null, must correspond to primary keys in a different
               table
          d. All nonkey attributes should describe a characteristic about the object
               identified by the primary key


Chap 1
1 Which of these is not 1 of the 5 primary activities in an organizations value chain?

A inbound logistic
B Marketing & Sales
C Operations
D Human resources

2 How can AIS add value to an organization?

A improve efficiency
B improve decision making
C aid in employee theft
D improve internal control

3 What is not a component of AIS

A the consumer
B the people
C information technology
D software

Chap 2
1 what is part of the human resource cycle
A Borrow money from lenders
B Discharge employees
C Approve credit sales
D Design products

2 Which is not a code technique
A block
B Sequence
C Group
D Individual

3 which is one of the four basic transaction cycle
A Revenue
B R&D
C Promotions
D merging

Chap 3
1 This symbol represents devices or media that provide input to or record output from
processing operations.
A storage
B processing
C relational
D input/output

2 A graphical of the relationship among input processing and output in an information
system is.
A data flow diagram
B system flowchart
C program flowchart
D processing diagram

3 this is an entry from or an exit to another page.
A off page connector
B terminal
C communication link
D data flow

Chap 4
1 which is not a benefit of database technology
A data sharing
B reporting flexibility
C data theft
D cross functional analysis
2 data definition language is used to
A interrogate database
B build data dictionary
C initialize of create database
D describe logical views for each user

3 what is not a requirement for a relational database
A every column in a row must be single valued
B primary keys can’t be null
C must be easy for everyone to understand
D foreign keys must have values that correspond to the value of a primary key in another
table.



Chapter 1

1. The primary activities that directly provide value to its customers include all of the
following except for:
       A. Operations
       B. Purchasing
       C. Service
       D. Marketing and Sales

2. Information is timely if:
        A. it is available to users when they need it and in a format they can use
        B. it reduces uncertainty and improves decision makers’ ability to make
           predictions
        C. it is provided in time for decision makers to make decisions
        D. Both A and C

3. Which of the following is a benefit with respect to the value of information?
       A. Better ability to plan and schedule activities
       B. Reduces the difficulty in quantifying the costs and benefits of information
       C. Both A and B
       D. None of the above

Chapter 2

1. Data values are stored in a physical space called a:
        A. Master File
        B. Record
        C. Database
        D. Field

2. Which cycle encompasses all transactions involving the purchase of and payment for
  merchandise?
      A. Expenditure
      B. Production
      C. Revenue
      D. Purchasing

3. A specialized journal is most likely to contain:
       A. adjusting and closing entries
       B. repetitive cash disbursement transactions
       C. summary-level data for every account
       D. loan payments


Chapter 3

1. Which of the following shapes represents data sources and destinations?
       A. Circle
       B. Square
       C. Triangle
       D. Oval

2. A ____________ is a graphical description of the relationship among the input,
   processing, and output in an information system.
        A. Program flowchart
        B. Document flowchart
        C. System flowchart
        D. Data flow diagram

3. Guidelines for drawing a data flow diagram include:
       A. Understand the system
       B. Pay close attention to all aspects of the system
       C. Identify all data sources and destinations
       D. A and C
       E. Only A

Chapter 4

1. What type of key is an attribute, or combination of attributes, that uniquely identifies a
   specific row in a table?
        A. Foreign key
        B. Domestic key
        C. Primary key
        D. International key

2. Which language is used for data maintenance?
       A. DML
       B. DDL
       C. DTL
       D. DQL

3. What is a benefit of database technology?
      A. Multi-functional analysis
      B. Decentralized management of data
      C. Reporting flexibility
      D. All of the above

Stefanie Snyder

1. Which of the following is an outbound logistic?
          a. Receiving materials
          b. Manufacturing
          c. Distribution
          d. Advertising

   2. A list of account numbers used in general journals for organizations can be found
      in the
          a. Source documents
          b. Chart of accounts
          c. Vendor invoice
          d. Transaction file

   3. A flowchart symbol that commonly indicates an on-page connector is
          a. A circle
          b. A square
          c. An arrow
          d. A triangle
   4. This is used to find information about the structure of a database
          a. Report writer
          b. Data dictionary
          c. Primary key
          d. Foreign key

   5. Unauthorized copying of company data is known as
         a. Data leakage
         b. Data diddling
         c. Rationalization
         d. Kiting

   6. The amount of risk a company is willing to accept to achieve their goals and
      objectives is known as
          a. Risk factor
          b. Risk ratio
         c. Risk appetite
         d. Risky business
   7. Which of the following is not a factor for determining the strength of any
      encryption system
         a. Key length
         b. Firewall
         c. Key management policies
         d. Nature of the encryption algorithm
   8. Data backup can be performed in several ways; this back up should be stored
         a. On-sight only
         b. Off-sight only
         c. On-sight and off-sight
         d. Data backup is only used by large corporations


Chapter 1

   1. Goal conflict occurs when:
                 a. the activity of a subsystem is not consistent with another
                     subsystem or with the larger system.
                 b. the subsystems goals are in line with the organizations goals.

                  c. one system is composed of subsystems.

                  d. When two goals have no effect on each other.

   2. Organizations collect data about all of the following except:
                 a. Events that occur.

                  b. Resources that are affected by those events.

                  c. Agents who participate in the events.

                  d. Events in the personal lives of the employees.


   3. All of these characteristics make information useful except:

                  a. Relevance

                  b. Reliability

                  c. Size

                  d. Understandability
Chapter 2

   1. The five major transaction cycles of a business include all of the following
      except:

            a. Revenue Cycle

            b. Expenditure Cycle

            c. Production Cycle

            d. Sales Discount Cycle

   2. Data is entered into paper journals and ledgers in the:

            a. Manual System

            b. Computer- based system

            c. Data- Retrieval System

            d. Auditing System


   3. A __________ is a file used to store cumulative information about resources and
      agents.

            a. Chart of Accounts

            b. Ledger

            c. Journal

            d. Audit Trail


Chapter 3

   1. A ___________ is a graphical description of the sources and the destination of
      data.

            a. Data Flow Diagram

            b. Data Dictionary
             c. General Ledger

             d. Subsystem

   2. All of these are the basic elements of a Data Flow Diagram except:

             a. Data Sources and Destinations

             b. Data Flows

             c. Information Processing Systems (IPS)

             d. Data Stores

   3. This type of symbol indicates the type of device or media that provides input to or
      records output from a process.

             a. input/output symbols

             b. processing symbols

             c. storage symbols

             d. flow symbols


Chapter 4

   1. Information about the attributes of an entity are stored in __________.

   a. fields

   b. charts

   c. cells

   d. records


   2. A set of interrelated, centrally coordinated files forms a ____________.

   a. file

   b. chart

   c. database
   d. system


   3. The 3 levels of a schema include all of the following except:

   a. Conceptual

   b. External

   c. Cross-functional

   d. Internal



Chapter 1

Characteristics of useful information include all of the following except:
   a. timely
   b. verifiable
   c. relevant
   d. helpful

Facts that are collected, recorded, stored, and processed by an information system is
called
    a. AIS
    b. data
    c. information
    d. essential information

__________ __________ relates to the effective and efficient use of resources for
accomplishing organizational objectives.
   a. management control
   b. strategic planning
   c. structured decisions
   d. decision scope

Chapter 2

The __________ cycle is where goods and services are sold for cash or a future promise
to pay cash.
    a. financing
    b. revenue
    c. production
    d. transaction
A major activity in the Human Resource/Payroll cycle is
   a. receive vendor invoices
   b. approve credit sales
   c. recruit, hire, and train employees
   d. forecast cash needs

The __________ __________ provides a means to check the accuracy and validity of
ledger postings.
    a. audit trail
    b. data value
    c. master file
    d. general ledger

Chapter 3

The highest-level Data Flow Diagram is referred to as
   a. narrative description
   b. system flowchart
   c. data destination
   d. context diagram

In what year was the Sarbanes Oxley Act (SOX) passed?
    a. 1905
    b. 1994
    c. 2002
    d. 2000

Which of the following flowcharts illustrates the flow of information among areas of
responsibility in an organization?
    a. system flowchart
    b. document flowchart
    c. internal control flowchart
    d. flowcharting template

Chapter 4

A relational data model portrays data as being stored in
   a. tables
   b. physical view
   c. files
   d. hierarchies

A __________ is a key component of a DBMS which contains information about the
structure of the database.
    a. subschema
   b. data query language
   c. data dictionary
   d. tuple

What acts as an interface between the database and various application programs?
  a. data warehouse
  b. data definition language
  c. database management system
  d. insert anomaly



Ch. 1.

1. A system is _________ ?
   A. a set of two or more interrelated components that interact to achieve a goal.
   B. of facts that are collected, recorded and processed
   C. required by a governmental entity
   D. something that makes activities harder to do


2. Data are (is) _________?
   A. a system that collects, records, stores, and processes data to produce information for
   decision makers.
   B. facts that are collected, recorded, store, and processed by an information
   system
   C. a decision or action of a subsystem is inconsistent with another subsystem or the
   system as a whole.
   D. eliminating duplicate recording, storage, reporting, and other processing activities in
   an organization.


  3. An accounting information system (AIS) is __________?
     A. required by a governmental entity
     B. a decision or action of a subsystem is inconsistent with another subsystem or the
  system as a whole.
     C. a system that collects, records, stores, and processes data to produce
  information for decision makers.
     D. something that makes activities harder to do


  Ch. 2

  1. Source data automation __________?
     A. is yet another means to improve the accuracy and efficiency of data input
     B. something that makes activities harder to do
  C. a decision or action of a subsystem is inconsistent with another subsystem or the
system as a whole.
  D. is a list of all general ledger accounts an organization uses



2. Coding is __________?
   A. the systematic assignment of numbers or letters to items to classify and
organize them.
   B. used to simplify the record infrequent or nonroutine transactions
   C. something that makes activities harder to do
   D. a set of interrelated, centrally coordinated files


3. Documents ________?
   A. store cumulative information about an organization’s resources and the agents
with whom it interacts.
   B. a set of interrelated, centrally coordinated files
   C. are records of transactions or other company data
   D. required by a governmental entity



Ch. 3


1. Documentation encompasses _______?
  A. Narratives
  B. Flow charts and diagrams
  C. other written materials that explain how a system works
  D. All of the above


2. A data flow diagram (DFD)
   A. Graphically describes the flow of data within an organization
   B. something that makes activities harder to do
   C. required by a governmental entity
   D. a written step-by-step explanation of system components and interactions


3. Data Flow ______________?
   A. represents the flow of the data between processes, data stores, and data
sources and destinations
   B. is found at the water cooler
   C. represented in squares
   D. is a list of all general ledger accounts an organization uses
Ch. 4



1. A data warehouse
   A. very large data base to provide customer service, marketing analysis, and
managerial information.
   B. a large warehouse in Nevada where companies keep their records
   C. describes the logical structure of a database
   D. None of the above


2. The relational data model
   A. represents everything in the database as being stored in the form of tables
   B. is the attribute, or combination of attributes, that uniquely identifies a specific row
in a table
   C. a written step-by-step explanation of system components and interactions
   D. All of the Above


3. A primary key
   A. is the attribute, or combination of attributes, that uniquely identifies a specific
row in a table
   B. is the CEO’s master key to all the companies’ facilities
   C. each row in a relation
   D. represents everything in the database as being stored in the form of tables


Chapter 1
   1. Data differ from information in which way?
          a. Data are output and information is input
          b. Information is output and data are input
          c. Data are meaningful bits of information.
          d. There is no difference.
             B is correct answer
   2. Which of the following is not a characteristic that makes information useful?
          a. It is reliable.
          b. It is timely.
          c. It is inexpensive
          d. It is relevant
              C is correct answer
   3. Which of the following is a primary activity in the value chain?
           a. Purchasing
           b. Accounting
           c. Post-sales service
           d. Human resource management
              C is correct answer
Chapter 2
   4. Which cycle includes interactions between an organization and its suppliers?
           a. Revenue cycle
           b. Expenditure cycle
           c. Human resources cycle
           d. General ledger and reporting system
              B is correct answer
   5. All of the information (name, gpa, major, etc.) about a particular student is stored
       in which of the following?
           a. file
           b. record
           c. attribute
           d. field
              B is correct answer
   6. Which of the following would contain the total value of all inventory owned by an
       organization?
           a. Source document
           b. General ledger
           c. Cash budget
           d. Subsidiary ledger
              B is correct answer


Chapter 3
   7. A DFD is a representation of which of the following?
          a. Relationship among modules, data, and programs of an AIS
          b. Flow of data in an organization
          c. Decision rules in a computer program
          d. Computer hardware configuration
              B is correct answer
   8. Documentation methods such as DFDs and flowcharts save both time and money,
       adding value to an organization.
          a. True
          b. False
          c. Not a choice
          d. Not a choice
              A is correct answer
   9. Which of the following statements is false?
          a. Flowcharts make use of many symbols.
            b. A document flowchart emphasizes the flow of documents or records
               containing data.
            c. DFDs help convey the timing of events
            d. Both a and b are false.
               C is correct answer
Chapter 4
   10. The relational data model portrays data as being stored in
          a. Hierarchies
          b. Tables
          c. Objects
          d. Files
              B is correct answer
   11. How a user conceptually organizes and understands data is referred to as the
          a. Physical view
          b. Logical view
          c. Data model view
          d. Data organization view
              B is correct answer
   12. What is each row in a relational database table called?
          a. Relation
          b. Attribute
          c. Anomaly
          d. Tuple
              D is correct answer


Chapter 1


1. The value of information is …..

   a) Data that have been organized and processed to provide meaning to a user.
   b) The benefit produced by the information minus the cost of producing it.
   c) Achieved when a subsystem meets its goal while contributing to the organizations
      overall goal.
   d) A set of two or more interrelated components that interact to achieve a goal.


2. The study of accounting information systems focuses on_____________ and
___________.

   a)   Information, decision making
   b)   Design and use
   c)   Accountability, control
   d)   Understandability and reliability
   e)   All of the above
3. What is an access-based strategic position?

   a) It involves serving a subset of customers who differ from other custom3rs in
      terms of factors such as geographic location or size, which creat4s different
      requirements for serving customers.
   b) It involves trying to serve all most or all of the needs of a particular group of
      customers in a target market.
   c) It involves producing or providing a subset of the industry’s products or services.
   d) It involves the entire system of organizational activities that are greater than the
      sum of each individual part.

Chapter 2


1. What is source data automation?

   a) It means to collect data about business activities.
   b) It means to exchanger data with customers and suppliers via the internet.
   c) To collect data about business activates and then transfer the data into the
      computer.
   d) It means to improve the accuracy and efficiency of data input.

2. _________ contains summary level data for every account in an organization.

   a)   General ledger
   b)   Control account
   c)   Accounts payable
   d)   Subsidiary ledger

3. Enterprise resource planning systems are designed to….

   a) Control the allocation or resources amongst various departments in the
      organization.
   b) Encompass all transactions involving sales to customers and the collection of cash
      receipts in payment for those sales.
   c) Encompass all the transactions involving the investment of capital in the
      company.
   d) Overcome these problems as they integrate all aspects of a company’s
      operations with its traditional AIS.


Chapter 3


1. Data sources and data destinations are represented by…
   a)   Squares
   b)   Circles
   c)   Triangle
   d)   Rectangle

2. ________ _________illustrates the sequence of logical operations performed by a
computer in executing a program.

   a)   System flowcharts
   b)   Document flowcharts
   c)   Internal control flowcharts
   d)   Program Flowchart

3. Guidelines for drawing a Data Flow Diagram include…

   a)   Identify data flows
   b)   Identify transformation processes
   c)   Give each process a sequential number
   d)   Repeat the processes
   e)   A, B and C
   f)   All of the above



Chapter 4


1. ________ acts as an interface between the database and the various application
programs.

   a)   Data warehouses
   b)   Database management system
   c)   Database system
   d)   Database administrator

2. The logical view refers to…..

   a) How the user or programmer conceptualize all information about customers
      as being stored in the form of a table.
   b) How and where the data are physically arranged and stored in the computer
      system.
   c) How combining master files into larger pools of data that many application
      programs can access.
   d) How reports can be revised easily and generated as needed and the database can
      be easily browsed to research a problem or obtain detailed information.
3. The entity integrity rule ensures….

   a) Consistency of the database
   b) Consistency of the information being inputted into the database.
   c) That every row in every relation must represent data about some specific
      object in the real world.
   d) That the tables depicted in a database represent a well-structured relational
      database.

Erica Wolford
Chapter 1
    1. Which is not a primary activity
          a. Inbound Logistics
          b. Operations
          c. Human Resources
          d. Services
    2. What is a set of interrelated components that interact to achieve a goal?
          a. Data
          b. System
          c. Information
          d. Completeness
    3. Which characteristic makes information presented in a manner that you can
       comprehend and use?
          a. Reliability
          b. Timeliness
          c. Verifiability
          d. Understandability

Chapter 2
   1. Which is an internal party?
          a. Customers
          b. Management
          c. Creditors
          d. Vendors
   2. Which cycle involves interaction with suppliers?
          a. Expenditure Cycle
          b. Revenue Cycle
          c. Production Cycle
          d. Financing Cycle
   3. In which step of the data processing cycle does the data need to be organized for
       easy and efficient access?
          a. Information Output
          b. Data Storage
          c. Data Input
          d. Data Processing
Chapter 3
   1. Data sources and destinations
          a. Represent the flow of data between sources and destinations, processes
             and the data stores.
          b. Represent the transformation of data.
          c. Represent organizations or individuals that send or receive data used
                                            or produced by the system.
                                        d. Represent a temporary or permanent
                                            repository of data.
                                2. __________________ indicate the type of device
                                  used to process the data or whether the data was
                                processed manually.
                                    a. Input symbols
                                   b. Storage symbols
                                   c. Flow symbols
                                      d. Processing symbols
                             3. Which symbol is represents computer processing?
       a.



       b.



            c.




       d.




Chapter 4
   1. The set of commands used to change the database is known as
           a. Data Manipulation Language (DML)
           b. Data Definition Language (DDL)
           c. Data Query Language (DQL)
           d. None of the above
   2. Which of the following is a benefit to an organization that uses database
       technology
           a. Reporting flexibility
        b. Data Sharing
        c. Data Integration
        d. Data Independence
        e. None of the above
        f. All of the above
   3. Which of the following is not a level of schema?
        a. Conceptual Level
        b. Internal Level
        c. Actual Level
        d. External Level

                                                                           Chapter 1

   1. An organization’s value chain can be connected with the value chains of
      its________.

            A.   Customers
            B.   Suppliers
            C.   Distributors
            D.   All of the above
                                Answer: D

   2. Michael Porter suggests that there are two basic business strategies that
      companies can follow.
         A. Product Differentiation
         B. Low-cost strategy
         C. High-cost strategy
         D. A and B
         E. None of the above
                            Answer: D

   3. Internal users primarily use which of the following kinds of information?
          A. Incomplete Information
          B. Discretionary Information
          C. Mandatory Information
          D. Essential Information
                             Answer: B


Chapter 2

   4. In the Revenue Cycle what is taken and what is received?
          A. give goods, get goods
          B. give cash, get goods
          C. give goods, get cash
          D. None of the above
                             Answer: C

   5. Examples of external parties that interact with AIS include which of the
      following?
          A. Customers
          B. Vendors
          C. Creditors
          D. Governmental Agencies
          E. All of the Above
                            Answer: E

   6. A _______ is a set of interrelated, centrally-coordinated files.
         A. Chart
         B. Table
         C. Database
         D. Spreadsheet
                    Answer: C


Chapter 3

   7. Data processes appear as which of the following?
         A. circles
         B. squares
         C. lines
         D. trapezoids
                    Answer: A

   8. Data stores appear as which of the following?
         A. Wavy lines
         B. Horizontal Lines
         C. Arcs
         D. Diamonds
                     Answer: B

   9. The highest level of a DFD is which of the following?
         A. context diagram
         B. executive spreadsheet
         C. relational diagram
         D. None of the above
                     Answer: A

Chapter 4

   10. Very large databases are called which of the following?
         A. Data Storage Units
           B. Data Holding Units
           C. Data Traps
           D. Data Warehouses
                     Answer: D

   11. Database technology provides which of the following benefit(s)
          A. Cross Functional Analysis
          B. Minimal Data Redundancy
          C. Reporting Flexibility
          D. Data Sharing
          E. All of the Above
                     Answer: E

   12. The primary key must have which of the characteristics?
          A. It must be null
          B. It must be a foreign key in another table
          C. It can not be null
          D. None of the Above
                     Answer: C



Chapter 1 Questions

1. What is a system?
a) a fact that is collected recorded, stored and processed
b) data that has been organized and processed to provide meaning to a user
c) a set of interrelated components that interact to achieve a goal
d) it consists of receiving, storing and distributing the materials an org. uses to create the
serveices/products that it sells

Answer: C

2. Primary Value Chain activities include the following except:
a) inbound logistics
b) production
c) marketing/sales
d) operations

Answer: B

3. Data is ______.
a) facts collected, recorded, stored and processed by an information system
b) set of two or more interrelated components that interact to achieve a goal
c) operations that a company does to keep in business
d) a type of supply chain
Answer: A

Chapter 2 Questions

1. Goods & services are sold for cash or a future promise to pay cash in the _____ cycle.
a) financing cycle
b) production cycle
c) revenue cycle
d) expenditure cycle

Answer: C

2. In the production cycle, _______ is transformed into _______.
a) information; data
b) raw materials; finished goods
c) inventory; cash (or promise to pay cash)
d) services; cash (or promise to pay cash)

Answer: B


3. All of these are steps in the data processing cycle, except:
a) data processing
b) information output
c) data storage
d) revenues

Answer: D

Chapter 3 Questions

1. Which is a common documentation tool?
a) data flow diagrams
b) ledger
c) flowchart
d) both A & C

2. A flowchart is:
a) piece of hard, flexible plastic on which the shapes of symbols have been die cut
b) an analytical technique used to describe some aspect of an information systems in a
clear, concise, and logical manner
c) device that provides input to or records output from processing operations
d) none of the above

Answer: B
3. What percent of information systems professionals use flowcharts?
a) 5.0 %
b) 47.2 %
c) 97.6 %
d) 99.9%

Answer: C

Chapter 4 Questions

1. Which of the following acts as an interface between the database and the various
application programs?:
a) database system
b) data warehouse
c) database management system
d) all of the above

Answer: C



2. Which of these are the three levels of schemas?:
       I. conceptual
       II. external
       III. tutorial
       IV. internal

a) I, II, III
b) I, II, IV
c) I, III, IV
d) II, III, IV

Answer: B

3. Data definition language is used:
a) to build a data dictionary
b) for data maintenance
c) to interrogate the database
d) all of the above

Answer: A

                                 Test 1 Review Questions

Which of the following is not a characteristic that makes information useful?
    A. Reliable
    B. Accessible
    C. Inexpensive
    D. Understandable
    Answer: C
Information can be classified as?
    A. Mandatory Information
    B. Essential Information
    C. Discretionary Information
    D. All of the above
    Answer: D
Which of these is not one of an organizations five primary activities that directly provide
value to its customers?
    A. Operations
    B. Firm Infrastructure
    C. Logistics
    D. Marketing and Sales
    Answer: B
In which cycle does a company turn raw materials into finished goods?
    A. Revenue cycle
    B. Production cycle
    C. Expenditure cycle
    D. Financing cycle
    Answer: B
In which cycle does a company pay dividends to its stockholders?
    A. Expenditure cycle
    B. Revenue cycle
    C. Payroll cycle
    D. Financing cycle
    Answer: D
A field is…..?
   A. Related records grouped together
   B. The part of a data record that contains the data value for a particular attribute
   C. Set of fields that contain data about various attributes of the same entity
   D. The item about which information is stored in a record
   Answer: B
In a DFD, transformation processes are represented by?
    A. Squares
    B. Straight Lines
    C. Triangles
    D. Circles
    Answer: D
DFD should include?
    A. The name of the DFD
    B. The date prepared
    C. The prepares name
    D. All of the above
    E. None of the above
    Answer D
Which law required public companies to include a report in internal controls in its annual
reports?
    A. Free Information Act
    B. Sarbanes Oxley Act
    C. FASB opinion 122
    D. None of the above
    Answer: B
Which of the following attributes would most likely be a primary key?
    A. Supplier Name
    B. Supplier Address
    C. Supplier Number
    D. Supplier Phone Number
    Answer: C
Which of the following is used for data maintenance?
    A. Data Manipulation Language (DML)
    B. Data Query Language (DQL)
    C. Data Definition Language (DDL)
    Answer: A
Which of the following refers to how and where data are arranged and stored on the
computer?
    A. Physical view
    B. Logical view
    C. Data Model View
    D. Data Organization View
    Answer A

Chapter 1

1. The text defines information as:

   a. facts that are collected, recorded, stored, and processed by an information system

   b. data that have been organized and processed to provide meaning to a user

   c. the sum or range of what has been perceived, discovered, or inferred

   d. NONE OF THE ABOVE


2. Which of the following is NOT one the five primary activities in the value chain?

       a. purchasing
       b. inbound logistics

       c. operations

       d. outbound logistics

       e. marketing and sales

3. A variety-based strategic position _________________.

       a. involves trying to serve most or all of the needs of a particular group of
       customers in a target market

       b. involves serving a subset of customers who differ from other customers in
       terms of factors such as geographic location or size

       c. involves producing or providing a subset of the industry’s products or
       services

       d. ALL OF THE ABOVE


Chapter 2

1. The transaction cycle where raw materials are transformed into finished goods is
called the _____________________.

       a. revenue cycle

       b. expenditure cycle

       c. human resources/payroll cycle

       d. financing cycle

       e. NONE OF THE ABOVE

2. Related records are grouped to form a __________________.

       a. field

       b. entity

       c. file

       d. attribute
       e. NONE OF THE ABOVE

3. A ____________________ is used to simplify the process of recording large numbers
of repetitive transactions.

       a. general journal

       b. specialized journal

       c. general ledger

       d. operational documents

       e. ALL OF THE ABOVE



Chapter 3

1. The circle symbol in a data flow diagram indicates:

       a. Data sources and destinations

       b. Data flows

       c. Transformation processes

       d. Data stores

       e. NONE OF THE ABOVE

2. A ______________ is an analytical technique used to describe some aspect of an
information system in a clear, concise, and logical manner.

       a. flowchart

       b. data flow diagram

       c. context diagram

       d. transformation process

       e. NONE OF THE ABOVE

3. Which of the following symbols are NOT found in a flowchart?
       a. input/output symbols

       b. processing symbols

       c. storage symbols

       d. flow and miscellaneous symbols

       e. NONE OF THE ABOVE


Chapter 4

1. The set of commands used to interrogate the database is known as:

       a. data definition language

       b. data manipulation language

       c. standard query language

       d. report writer

       e. NONE OF THE ABOVE

2. A ___________________ is the attribute, or combination of attributes, that uniquely
identifies a specific row in a table.

       a. foreign key

       b. primary key

       c. entity

       d. tuple

       e. NONE OF THE ABOVE

3. A schema ___________________.

       a. is how the user or programmer conceptually organizes and understands data

       b. refers to how and where data are physically arranged and stored in the
       computer system
         c. describes the logical structure of the database

         d. ALL OF THE ABOVE



Test 1

Chapter 4 questions
1) Which of the following is DDL not used for?
a) help with data implementation
b) build the data dictionary
c) create a data base
d) describe the logical views for each individual user or programmer

2) Which kind of schema is the organization- wide vew of the entire data- base
a) internal- level schema
b) subschema
c) conceptual level schema
d) external- level schema

3) DML stands for _______
a) data maintenance language
b) data manipulation language
c) data monitoring language
d) data miscellaneous language



                                  Test 1 Questions


Chapter 1


1) A _________ is a set of two or more interrelated components that interact to achieve a
goal.
a) intergration
b) system
c) information
d) accounting information system

2) Which of the following is not a part of an organizations value chains’ primary activites
a) marketing and sales
b) operations
c) inbound logistics
d) human resources

3) Which of the following is not one of the concepts that the FASB suggested to be
provided to students in order for them to have a solid understanding.
a) Financial information reporting
b) The use of information in decision making
c) Provide them with enough information for them to gain a better understanding of
accounting systems and to help guide them through the CPA exam
d) The nature, design, use, and implementation of an AIS

Chapter 2

4) Which of the following cycles is the one which is where raw materials are transformed
into finished goods?
a) financial cycle
b) production cycle
c) expenditure cycle
d revenue cycle

5) The second basic type of file is called a ________?
a) transaction file
b) secondary file
c) master file
d) database file

6) Which of the following is not one of the types of file processing?
a) Deleting
b) Updating
c) Recording
d) Adding

Chapter 3

7) A _______ encompasses the narratives, flow charts, diagrams and other written
materials that explain how a system works.
a) Narrative description
b) Data flow diagram
c) Program flow chart
d) Documentation

8) A ______ is a piece of hard, flexible plastic on which the shapes of symbols have been
die cut.
a) Flowcharting template
b) Documentation template
c) Context diagram template
d) Data flow diagram template
9) _______ symbols either show what type of device is used to process data or indicate
when processing is performed manually.
a) flow and miscellaneous symbols
b) input/output symbols
c) processing symbols
d) storage symbols


Chapter 1
1) Which of the following is not one of the primary activities in the value chain that
directly provide value to its customers?
A) Inbound Logistics
B) Service
C) Marketing and Sales
D) Human Resources
2) Serving a subset of customers who differ from the other customers in terms of such
factors as geographic location or size is the definition of _____.
A) Access-Based Strategic Position
B) Needs-Based Strategic Position
C) Low-Cost Strategy
D) Variety –Based Strategic Position
3) Which of the following is a primary activity in the value chain?
A) Technology
B) Operations
C) Purchasing
D) Accounting

Chapter 2
1) The __________ is where goods and services are sold for cash or a future promise to
pay cash.
A) Financing Cycle
B) Revenue Cycle
C) Production Cycle
D) Expenditure Cycle
2) A __________ is used to record infrequent or nonroutine transactions, such as loan
payments and end-of-period adjusting and closing entries.
A) Specialized Journal
B) General Journal
C) Subsidiary Ledger
D) General Ledger
3) The set of fields that contain data about various attributes of the same entity forms a
______.
A) File
B) Record
C) Value
D) Column

Chapter 3
1) ________ represents devices or media that provide input to or record output from
processing operations.
A) Processing Symbols
B) Input/Output Symbols
C) Storage Symbols
D) Flow and Miscellaneous Symbols
2) Transformation processes are represented in a data flow diagram as _______.
A) Square
B) Circle
C) Curved Arrow
D) Two Parallel Lines
3) Data Flows are represented in a data flow diagram as _______.
A) Square
B) Circle
C) Curved Arrow
D) Two Parallel Lines

Chapter 4
1) Which of the following is not a benefit of database technology?
A) Data Sharing
B) Data Independence
C) Data Integration
D) All the above are benefits of database technology
2) The key component of a Database Management System is ________?
A) The Data Dictionary
B) Conceptual-level Schema
C) Data Query Language
D) Data Warehouse
3) __________ is used for data maintenance, which includes such operations as updating,
inserting, and deleting portions or the database.
A) Data Definition Language
B) Data Manipulation Language
C) Data Query Language
D) Report Writer

								
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