Accounting Information Systems, 12E Marshall B. Romney Test Bank

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Accounting Information Systems, 12E Marshall B. Romney Test Bank

Accounting Information Systems, 12e (Romney/Steinbart)

Chapter 2   Overview of Transaction Processing and ERP Systems

 

1) What usually initiates data input into a system?

  1. A) The transaction system automatically checks each hour to see if any new data is available for input and processing.
  2. B) The performance of some business activity generally serves as the trigger for data input.
  3. C) A general ledger program is queried to produce a trial balance at the end of an accounting period.
  4. D) Data is only input when a source document is submitted to the accounting department.

 

 

 

 

 

 

2) An ERP system might facilitate the purchase of direct materials by all of the following except

  1. A) selecting the best supplier by comparing bids.
  2. B) preparing a purchase order when inventory falls to reorder point.
  3. C) routing a purchase order to a purchasing agent for approval.
  4. D) communicating a purchase order to a supplier.

 

 

 

 

 

 

3) Which of the following is not true about the accounts receivable subsidiary ledger?

  1. A) Debits and credits in the subsidiary ledger must always equal.
  2. B) Every credit sale is entered individually into the subsidiary ledger.
  3. C) The total of the subsidiary ledgers must equal the control account.
  4. D) The subsidiary ledgers play an important role in maintaining the accuracy of the data stored in the AIS.

 

 

 

4) Which of the following is not usually a consideration when designing a coding system?

  1. A) Government regulations on coding systems
  2. B) Standardization
  3. C) Future expansion needs
  4. D) Facilitating report preparation

 

 

 

 

 

 

5) The general ledger

  1. A) summarizes the transactions in journals.
  2. B) only includes balance sheet accounts.
  3. C) is posted in total to the general journal.
  4. D) is the initial place to record depreciation expense.

 

 

 

 

 

 

6) For a retail business, a delivery of inventory, from a vendor (with whom there is an established credit relationship) would be initially recorded in which type of accounting record as part of which transaction cycle?

  1. A) purchases journal; expenditure cycle
  2. B) general journal; expenditure cycle
  3. C) general ledger; expenditure cycle
  4. D) cash disbursements journal; production cycle

 

 

 

 

 

 

7) Which of the following statements regarding special journals is not true?

  1. A) The balances in a special journal must always reconcile to the general ledger.
  2. B) Special journals are used to record large numbers of repetitive transactions.
  3. C) Special journals are periodically summarized and posted to the general ledger.
  4. D) Special journals provide a specialized format for recording similar transactions.

 

 

 

 

 

8) Changing an employees hourly wage rate would be recorded in which file?

  1. A) Employee master file
  2. B) Employee transaction file
  3. C) Payroll master file
  4. D) Payroll transaction file

 

 

 

 

 

 

9) A typical source document could be

  1. A) in some paper form.
  2. B) a computer data entry screen.
  3. C) a notepad entry.
  4. D) both A and B

 

 

 

 

 

 

10) Which step below is not considered to be part of the data processing cycle?

  1. A) data input
  2. B) feedback from external sources
  3. C) data storage
  4. D) data processing

 

 

 

 

 

 

11) Data must be collected about three facets of each business activity. What are they?

  1. A) the business activity, the resources it affects, the people who participate
  2. B) the business activity, the transactions it creates, the impact on the financial statements
  3. C) the inputs, outputs and processes used
  4. D) who is involved, what was sold, how much was paid

 

 

 

 

 

12) The issuing of a purchase order is part of which transaction cycle?

  1. A) the revenue cycle
  2. B) the production cycle
  3. C) the human resources cycle
  4. D) the expenditure cycle

 

 

 

 

 

 

 

13) The collection of job time tickets or time sheets is part of which transaction cycle?

  1. A) revenue cycle
  2. B) production cycle
  3. C) human resources cycle
  4. D) expenditure cycle

 

 

 

 

 

 

14) Common source documents for the revenue cycle include all of the following except

  1. A) sales order.
  2. B) receiving report.
  3. C) delivery ticket.
  4. D) credit memo.

 

 

 

 

 

 

15) Which of the following documents would be found in the expenditure cycle?

  1. A) delivery ticket
  2. B) time card
  3. C) credit memo
  4. D) purchase order

 

 

 

 

 

16) Documents that are sent to customers or suppliers and then sent back to the company in the course of a business transaction are known as

  1. A) turnaround documents.
  2. B) source documents.
  3. C) source data automation.
  4. D) transaction documents.

 

 

 

 

 

 

 

17) Which of the following is an example of source data automation?

  1. A) a utility bill
  2. B) POS (point-of-sale) scanners in retail stores
  3. C) a bill of lading
  4. D) a subsidiary ledger

 

 

 

 

 

 

18) Pre-numbering of source documents helps to verify that

  1. A) all transactions have been recorded since the numerical sequence serves as a control.
  2. B) source data automation was used to capture data.
  3. C) documents have been used in order.
  4. D) company policies were followed.

 

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19) Source documents generally help to improve accuracy in transaction processing because

  1. A) they specify which information to collect.
  2. B) logically related data can be grouped in the same area of the document.
  3. C) they provide directions and steps for completing the form.
  4. D) All of the above are correct.

 

 

 

 

 

20) When the sum of all entries in the subsidiary ledger equals the balance in the corresponding general ledger account, it is assumed that

  1. A) the recording processes were accurate.
  2. B) all source documents were recorded.
  3. C) adjusting entries are not required.
  4. D) no errors exist in the subsidiary ledger.

 

 

 

 

 

 

 

21) The general ledger account that corresponds to a subsidiary ledger account is known as a

  1. A) dependent account.
  2. B) attribute account.
  3. C) entity account.
  4. D) control account.

 

 

 

 

 

 

22) Pre-numbered checks, invoices, and purchase orders are examples of

  1. A) sequence codes.
  2. B) block codes.
  3. C) group codes.
  4. D) mnemonic codes.

 

 

 

 

 

 

23) A chart of accounts is an example of (select all that apply)

  1. A) sequence codes.
  2. B) block codes.
  3. C) group codes.
  4. D) mnemonic codes.

, C

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24) Product items are often coded with (select all that apply)

  1. A) sequence codes.
  2. B) block codes.
  3. C) group codes.
  4. D) mnemonic codes.

, D

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25) Which of the following statements is false?

  1. A) Codes should be consistent with intended use.
  2. B) Codes should allow for growth.
  3. C) Codes should be as simple as possible.
  4. D) Codes should be customized for each division of an organization.

 

 

 

 

 

 

26) To be effective, the chart of accounts must

  1. A) be as concise as possible.
  2. B) begin with account 001.
  3. C) utilize only one coding technique.
  4. D) contain sufficient detail to meet the information needs of the organization.

 

 

 

 

 

 

27) The chart of accounts of a corporate retail bookstore would probably include

  1. A) work-in-process inventory.
  2. B) a drawing account.
  3. C) retained earnings.
  4. D) both A and C

 

 

 

 

 

28) In transaction processing, generally which activity comes first?

  1. A) recording data in a journal
  2. B) posting items to special journals
  3. C) capturing data on source documents
  4. D) recording data in a general ledger

 

 

 

 

 

 

 

29) The efficiency of recording numerous business transactions can be best improved by the use of

  1. A) prenumbered source documents.
  2. B) specialized journals.
  3. C) posting references.
  4. D) subsidiary ledgers.

 

 

 

 

 

 

30) A general journal

  1. A) would be used to record monthly depreciation entries.
  2. B) simplifies the process of recording large numbers of repetitive transactions.
  3. C) records all detailed data for any general ledger account that has individual sub-accounts.
  4. D) contains summary-level data for every account of the organization.

 

 

 

 

 

 

31) The general ledger

  1. A) is used to record infrequent or non-routine transactions.
  2. B) simplifies the process of recording large numbers of repetitive transactions.
  3. C) records all detailed data for any general ledger account that has individual sub-accounts.
  4. D) contains summary-level data for every account of the organization.

 

 

 

 

 

32) A subsidiary ledger

  1. A) is used to record infrequent or non-routine transactions.
  2. B) simplifies the process of recording large numbers of repetitive transactions.
  3. C) records all detailed data for any general ledger account that has individual sub-accounts.
  4. D) contains summary-level data for every account of the organization.

 

 

 

 

 

 

 

33) A specialized journal

  1. A) is used to record infrequent or non-routine transactions.
  2. B) simplifies the process of recording large numbers of repetitive transactions.
  3. C) records all detailed data for any general ledger account that has individual sub-accounts.
  4. D) contains summary-level data for every account of the organization.

 

 

 

 

 

 

34) An audit trail

  1. A) provides the means to check the accuracy and validity of ledger postings.
  2. B) begins with the general journal.
  3. C) is automatically created in every computer-based information system.
  4. D) is a summary of recorded transactions.

 

 

 

 

 

 

35) Concerning a master file, which of the following statements is false?

  1. A) A master file is conceptually similar to a ledger in a manual AIS.
  2. B) A master file stores cumulative information.
  3. C) A master file exists across fiscal periods.
  4. D) A master files individual records are rarely, if ever, changed.

 

 

 

 

 

36) Which of the following is conceptually similar to a journal in a manual AIS?

  1. A) database
  2. B) master file
  3. C) record
  4. D) transaction file

 

 

 

 

 

 

 

37) Which of the following statements is true?

  1. A) Batch processing ensures that stored information is always current.
  2. B) Batch input is more accurate than on-line data entry.
  3. C) On-line batch processing is a combination of real-time and batch processing.
  4. D) Batch processing not frequently used.

 

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38) The data processing method used by FedEx to track packages is an example of

  1. A) real-time processing.
  2. B) batch processing.
  3. C) online batch processing.
  4. D) real-time batch processing.

 

 

 

 

 

39) Which statement below regarding the AIS is false?

  1. A) The AIS must be able to provide managers with detailed and operational information about the organizations performance.
  2. B) Both traditional financial measures and operational data are required for proper and complete evaluation of performance.
  3. C) The AIS was often just one of the information systems used by an organization to collect and process financial and nonfinancial data.
  4. D) Traditionally, most AIS have been designed so that both financial and operational data are stored in a manner that facilitates their integration in reports.

 

 

 

 

 

 

40) Callow Youth Clothing (CYC) is a boutique retailer located in Estes Park, Colorado. During the peak tourist season, it has average daily cash and credit card sales in excess of $5,000. What is the best way for CYC to ensure that sales data entry is efficient and accurate?

  1. A) Well-designed paper forms
  2. B) Source data automation
  3. C) Turnaround documents
  4. D) Sequentially numbered sales invoices

 

 

 

 

 

 

41) In Petaluma, California, electric power is provided to consumers by the Power To The People Electrical Company (PTTP), a local co-op. Each month PTTP mails bills to 70,000 households and then processes payments as they are received. What is the best way for this business to ensure that payment data entry is efficient and accurate?

  1. A) Well-designed paper forms
  2. B) Source data automation
  3. C) Turnaround documents
  4. D) Sequentially numbered bills

 

 

 

 

 

42) Callow Youth Clothing is a boutique retailer located in Estes Park, Colorado. It is a sole proprietorship that stocks an inventory of between 80 and 160 different products. Inventory is updated in real time by the AIS. When designing a chart of accounts for this business, what is the minimum number of digits necessary to represent the general ledger account code, including subsidiary ledgers?

  1. A) 4
  2. B) 6
  3. C) 7
  4. D) 9

 

 

 

 

 

 

43) The quality assurance department at a large manufacturing business enters data into the AIS that is used to produce a weekly report that summarizes the proportion of defective units in each product line. This is an example of

  1. A) internal financial information.
  2. B) internal nonfinancial information.
  3. C) external financial information.
  4. D) external nonfinancial information.

 

 

 

 

 

 

 

44) The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a superior level of customer service. In particular, the stores database system was designed to make detailed information about each individual action figures characteristics easily accessible. Price information and condition are also provided for each inventory item. In this database, the price of figures is a(an)

  1. A) entity.
  2. B) attribute.
  3. C) field.
  4. D) record.

 

 

 

 

 

45) The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a superior level of customer service. In particular, the stores database system was designed to make detailed information about each individual action figures characteristics easily accessible. Price information and condition are also provided for each inventory item. In this database, the data about an individual figure is a(an)

  1. A) entity.
  2. B) attribute.
  3. C) field.
  4. D) record.

 

 

 

 

 

 

46) The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a superior level of customer service. In particular, the stores database system was designed to make detailed information about each individual action figures characteristics easily accessible. Price information and condition are also provided for each inventory item. In this database, action figures (collectively) are a(an)

  1. A) entity.
  2. B) attribute.
  3. C) field.
  4. D) record.

 

 

 

 

 

47) The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a superior level of customer service. In particular, the stores database system was designed to make detailed information about each individual action figures characteristics easily accessible. Price information and condition are also provided for each inventory item. In this database, the data about an individual figures price is stored in a(an)

  1. A) entity.
  2. B) attribute.
  3. C) field.
  4. D) record.

 

 

 

 

 

 

48) Hector Sanchez works in the accounting department of a multinational manufacturing company. His job includes updating accounts receivable based on sales orders and remittance advices. His responsibilities are part of the companys

  1. A) revenue cycle.
  2. B) expenditure cycle.
  3. C) financing cycle.
  4. D) production cycle.

 

 

 

 

 

 

49) Hector Sanchez works in the accounting department of a multinational manufacturing company. His job includes updating accounts payable based on purchase orders and checks. His responsibilities are part of the companys

  1. A) revenue cycle.
  2. B) expenditure cycle.
  3. C) financing cycle.
  4. D) production cycle.

 

 

 

 

 

 

50) Many small businesses choose to outsource their payroll activities to firms that specialize in providing payroll services. Dolores Yu operates a payroll processing business in Calabasas, California. When she sends bills out to her clients, her work is part of her firms

  1. A) revenue cycle.
  2. B) expenditure cycle.
  3. C) financing cycle.
  4. D) production cycle.

 

 

 

 

 

 

51) The coding technique most likely used for sales orders is called a

  1. A) group code.
  2. B) block code.
  3. C) data code.
  4. D) sequence code.

 

 

 

 

 

 

52) Data processing includes all of the following except

  1. A) verifying subsidiary ledger balances.
  2. B) changing customer addresses.
  3. C) removing inventory items no longer offered.
  4. D) adding the name of a new vendor.

 

 

 

 

 

 

53) Which of the following is an example of an ERP system?

  1. A) Alexis uses a computerized information system to keep track of all the financial data generated by her bakery. She is considering opening a new bakery on the east side of town.
  2. B) Betty has a system that keeps track of the accounts payable and receivable for her plumbing business. At the end of the year, the system helps her to prepare her taxes in just two hours.
  3. C) Charlie keeps records of all his business records in a shoe box. Each week he enters all of the data into spreadsheets that automatically generate purchase orders, based on predetermined inventory reorder points. Production quotas for the coming week are also automatically generated based on customer orders.
  4. D) Doug is a free-lance photographer. He keeps records of all expenses and revenues on his cell phone and then emails them to himself every month. The files are stored on his personal computer and backed up to CD quarterly.

 

 

 

 

 

 

54) A specialized journal would be most likely to be used to enter

  1. A) sales transactions.
  2. B) monthly depreciation adjustments.
  3. C) annual closing entries.
  4. D) stock issuance transactions.

 

 

 

 

 

 

55) The Cape Fear Rocket Club heads out to the dunes of Kittyhawk, North Carolina every August to pierce the sky with their fiery projectiles. An enterprising seller of t-shirts has devised a series of designs that capture the spirit of the event in silk-screened splendor. His employees can be found on many of the major intersections hawking his wares out of the backs of station wagons and pickup trucks. What is the best way for this business to ensure that sales data entry is efficient and accurate?

  1. A) Well-designed paper forms
  2. B) Source data automation
  3. C) Turnaround documents
  4. D) Sequentially numbered forms

 

 

 

 

 

 

56) Which of the following information would most likely be reviewed by management on an exception report?

  1. A) Monthly cash budget
  2. B) Quality control system failures
  3. C) Unit sales by territory and salesperson
  4. D) Income statement

 

 

 

 

 

 

57) All of the following situations would likely be communicated in an exception report except

  1. A) production stoppages.
  2. B) weekly credit and cash sales comparison.
  3. C) low inventory level.
  4. D) expense variances outside acceptable range.

 

 

 

 

 

 

58) Changing an employees hourly wage rate would be recorded where?

  1. A) Employee master file
  2. B) Employee transaction file
  3. C) Special journal
  4. D) Employee update file

 

 

 

 

 

 

59) Which of the following statements is not correct?

  1. A) The audit trail is intended to verify the validity and accuracy of transaction recording.
  2. B) The audit trail consists of records stored sequentially in an audit file.
  3. C) The audit trail provides the means for locating and examining source documents.
  4. D) The audit trail is created with document numbers and posting references.

 

 

 

 

 

 

60) Data about which of the following facets of a business activity is most likely to be recorded in a transaction file?

  1. A) Business activity
  2. B) Resources affected by the business activity
  3. C) People who participate in the business activity
  4. D) Place the business activity occurs

 

 

 

 

 

 

61) Data about all of the following facets of a business activity are most likely to be recorded in a master file except the

  1. A) business activity.
  2. B) resources affected by the business activity.
  3. C) people who participate in the business activity.
  4. D) place the business activity occurs.

 

 

 

 

 

 

62) Which of the following statements about data processing methods is true?

  1. A) Online real-time processing does not store data in a temporary file.
  2. B) Batch processing cannot be used to update a master file.
  3. C) Control totals are used to verify accurate processing in both batch and online batch processing.
  4. D) Online real-time processing is only possible with source data automation.

 

 

 

 

 

63) In an ERP system, the module used to record data about transactions in the revenue cycle is called

  1. A) order to cash.
  2. B) purchase to pay.
  3. C) financial.
  4. D) customer relationship management.

 

 

 

 

 

 

 

64) A delivery of inventory from a vendor, with whom a credit line is already established, would be initially recorded in which type of accounting record and as part of what transaction cycle?

  1. A) purchases journal; expenditure cycle
  2. B) general journal; expenditure cycle
  3. C) general ledger; expenditure cycle
  4. D) cash disbursements journal; production cycle

 

 

 

 

 

 

65) Implementation of an ERP system requires increased focus on all except which of the following controls ?

  1. A) Segregation of duties between custody, authorization, and recording
  2. B) Data entry controls on validity and accuracy
  3. C) Controls over access to data
  4. D) Appropriate disposal of hard copy reports

 

 

 

66) Which statement below regarding the AIS and managerial reports is false?

  1. A) The AIS is best utilized for financial data while the management information system is best utilized for operational data.
  2. B) The AIS must be able to provide managers with detailed operational information about the organizations performance.
  3. C) Both financial and nonfinancial data are required for proper and complete evaluation of organizational performance.
  4. D) Most source documents capture both financial and nonfinancial data about business transactions.

 

 

 

 

 

 

 

67) What is the purpose of source documents? What controls are embedded in source documents? Give two examples of source documents.

 

 

68) Describe an audit trail.

 

69) Explain how data is organized and stored in an AIS.

 

70) Describe the basic cycles and business activities for a typical merchandising company.

 

71) Describe guidelines to follow for a well-designed coding system.

 

 

72) Describe the relationship between the general and subsidiary ledgers.

 

73) Describe four advantages and four disadvantages of implementing an ERP system at a multinational corporation.

 

74) Describe the methods used to collect data about business activities. Describe design and control considerations for each of the data collection methods.

Accounting Information Systems, 12e (Romney/Steinbart)

Chapter 10   Information Systems Controls for Systems ReliabilityPart 3: Processing Integrity and Availability

 

1) The best example of a hash total for a payroll transaction file could be

  1. A) total of employees social security numbers.
  2. B) sum of net pay.
  3. C) total number of employees.
  4. D) sum of hours worked.

 

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2) Error logs and review are an example of

  1. A) data entry controls.
  2. B) data transmission controls.
  3. C) output controls.
  4. D) processing controls.

 

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3) Following is the result of batch control totals on employee Social Security Numbers in a payroll processing transaction:

 

Correct Values From Masterfile Values Entered During Processing
487358796 487358796
534916487 534916487
498374526 498374526
514873420 514873420
534196487 534916487
678487853 678487853
471230589 471230589
3719438158 3720158158

 

The difference in the control totals is 720,000. Which data entry control would best prevent similar data entry errors in the future?

  1. A) Modulus 11
  2. B) Validity check
  3. C) Check digit
  4. D) Sequence check

 

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4) Which of the following data entry controls would not be useful if you are recording the checkout of library books by members?

  1. A) Sequence check
  2. B) Prompting
  3. C) Validity check
  4. D) Concurrent update control

 

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5) A customer failed to include her account number on her check, and the accounts receivable clerk credited her payment to a different customer with the same last name. Which control could have been used to most effectively to prevent this error?

  1. A) Closed-loop verification
  2. B) Duplicate values check
  3. C) Validity check
  4. D) Reconciliation of a batch control total

 

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6) If invoices are processed in groups of fifty, which fields from the document shown below would not be used to create a hash control total?

  1. A) Amount
  2. B) Item Number
  3. C) Quantity Ordered
  4. D) Sales Order number

 

 

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7) A data entry input control in which the application software sums the first four digits of a customer number to calculate the value of the fifth digit and then compares the calculated number to the number typed in during data entry is an example of a

  1. A) check digit verification.
  2. B) validity check.
  3. C) closed-loop verification.
  4. D) duplicate data check.

 

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8) All of the following controls for online entry of a sales order would be useful except

  1. A) check digit verification on the dollar amount of the order.
  2. B) validity check on the inventory item numbers.
  3. C) field check on the customer ID and dollar amount of the order.
  4. D) concurrent update control.

 

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9) A specific inventory record indicates that there were 12 items on hand before a customer brings two of the items to the check stand to be purchased. The cashier accidentally entered quantity 20 instead of 2. Which data entry control would best have prevented this error?

  1. A) sign check
  2. B) limit check
  3. C) validity check
  4. D) field check

 

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10) When processing weekly payroll, an employee accidentally entered 400 for hours worked. The best data entry control for this error would be

  1. A) a limit check.
  2. B) a check digit.
  3. C) batch total reconciliation.
  4. D) a field check.

 

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11) The data entry control that would best prevent entering an invoice received from a vendor who is not on an authorized supplier list is

  1. A) a validity check.
  2. B) an authorization check.
  3. C) a check digit.
  4. D) closed-loop verification.

 

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12) Forms design is an example of this type of control.

  1. A) Data entry control
  2. B) Processing control
  3. C) Output control
  4. D) Input control

 

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13) Sequentially prenumbered forms is an example of a(n)

  1. A) data entry control.
  2. B) data transmission control.
  3. C) processing control.
  4. D) input control.

 

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14) Turnaround documents are an example of a(n)

  1. A) data entry control.
  2. B) output control.
  3. C) processing control.
  4. D) input control.

 

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15) A validity check is an example of a(n)

  1. A) data entry control.
  2. B) data transmission control.
  3. C) output control.
  4. D) input control.

 

6

 

 

 

 

16) Parity checks are an example of a(n)

  1. A) data entry control.
  2. B) data transmission control.
  3. C) output control.
  4. D) processing control.

 

9

 

 

 

 

17) User reviews are an example of a(n)

  1. A) data entry control.
  2. B) data transmission control.
  3. C) output control.
  4. D) processing control.

 

8

 

 

 

 

18) Data matching is an example of a(n)

  1. A) data entry control.
  2. B) data transmission control.
  3. C) processing control.
  4. D) input control.

 

7

 

 

 

 

19) Batch totals are an example of a(n)

  1. A) data entry control.
  2. B) data transmission control.
  3. C) output control.
  4. D) processing control.

 

7

 

 

 

 

20) Cancellation and storage of documents means that

  1. A) data are copied from a document and stored, after which the document is shredded.
  2. B) documents are defaced before being shredded.
  3. C) documents are defaced and stored.
  4. D) cancellation data are copied from documents before they are stored.

 

6

 

 

 

 

21) Check digit verification is an example of a(n)

  1. A) data transmission control.
  2. B) output control.
  3. C) processing control.
  4. D) input control.

 

7

 

 

 

 

22) This ensures that the input data will fit into the assigned field.

  1. A) Limit check
  2. B) Range check
  3. C) Size check
  4. D) Validity check

 

6

 

 

 

 

23) This tests a numerical amount to ensure that it does not exceed a predetermined value nor fall below another predetermined value.

  1. A) Completeness check
  2. B) Field check
  3. C) Limit check
  4. D) Range check

 

6

 

 

 

 

24) This determines if all required data items have been entered.

  1. A) Completeness check
  2. B) Field check
  3. C) Limit check
  4. D) Range check

 

6

 

 

 

 

25) This determines the correctness of the logical relationship between two data items.

  1. A) Range check
  2. B) Reasonableness test
  3. C) Sign check
  4. D) Size check

 

6

 

 

 

 

26) This determines if characters are of the proper type.

  1. A) Field check
  2. B) Alpha-numeric check
  3. C) Range check
  4. D) Reasonableness test

 

6

 

 

 

 

27) This tests a numerical amount to ensure that it does not exceed a predetermined value.

  1. A) Completeness check
  2. B) Limit check
  3. C) Range check
  4. D) Sign check

 

6

 

 

 

 

28) This batch processing data entry control sums a field that contains dollar values.

  1. A) Record count
  2. B) Financial total
  3. C) Hash total
  4. D) Sequence check

 

7

 

 

 

 

29) This batch processing data entry control sums a non-financial numeric field.

  1. A) Record count
  2. B) Financial total
  3. C) Hash total
  4. D) Sequence check

 

7

 

 

 

 

30) When I enter a correct customer number, the data entry screen displays the customer name and address. This is an example of

  1. A) prompting.
  2. B) preformatting.
  3. C) closed-loop verification.
  4. D) error checking.

 

7

 

 

 

 

31) This control ensures that the correct and most current files are being updated.

  1. A) Cross-footing balance test
  2. B) Data matching
  3. C) File labels
  4. D) Write-protect mechanism

 

7

 

 

 

 

32) This batch processing data entry control sums the number of items in a batch.

  1. A) Financial total
  2. B) Hash total
  3. C) Record count
  4. D) Sequence check

 

7

 

 

 

 

33) This data entry control compares the ID number in transaction data to a master file to verify that the ID number exists.

  1. A) Reasonableness test
  2. B) User review
  3. C) Data matching
  4. D) Validity check

 

6

 

 

 

 

34) File labels are an example of

  1. A) data entry controls.
  2. B) output controls.
  3. C) processing controls.
  4. D) source data controls.

 

7

 

 

 

 

35) A computer operator accidentally used the wrong master file when updating a transaction file. As a result, the master file data is now unreadable. Which control could best have prevented this from happening?

  1. A) Internal header label
  2. B) Validity check
  3. C) Check digit
  4. D) Parity check

 

7

 

 

 

 

36) Chaz Finnerty called the IT Help Desk in a huff. Im trying to open an Excel file and I get a message that says that the file is locked for editing. Whats going on? The answer is likely that

  1. A) the file is corrupted due to a computer virus.
  2. B) there is no problem. Chaz is editing the file, so it is locked.
  3. C) concurrent update controls have locked the file.
  4. D) Chaz probably opened the file as read-only.

 

8

 

 

 

37) This control protects records from errors that occur when two or more users attempt to update the same record simultaneously.

  1. A) Concurrent update controls
  2. B) Cross-footing balance test
  3. C) Data conversion controls
  4. D) Recalculation of batch totals

 

8

 

 

 

 

38) Modest Expectations Investment Services (MEIS) allows customers to manage their investments over the Internet. If customers attempt to sell more shares of a stock than they have in their account, an error message is displayed. This is an example of a

  1. A) reasonableness test.
  2. B) field check.
  3. C) validity check.
  4. D) limit check.

 

6

 

 

 

 

39) Modest Expectations Investment Services (MEIS) allows customers to manage their investments over the Internet. If customers attempt to spend more money than they have in their account, an error message is displayed. This is an example of a

  1. A) reasonableness test.
  2. B) field check.
  3. C) validity check.
  4. D) limit check.

 

6

 

 

 

40) The Spontaneous Combustion Rocket Shoppe in downtown Fargo, North Dakota, generates three quarters of its revenue from orders taken over the Internet. The revenue clearing account is debited by the total of cash and credit receipts and credited by the total of storefront and Internet sales. This is an example of a

  1. A) data integrity test.
  2. B) zero-balance test.
  3. C) trial balance audit.
  4. D) cross-footing balance test.

 

8

 

 

 

 

41) What is the most effective way to ensure information system availability?

  1. A) High bandwidth
  2. B) Maintain a hot site
  3. C) Maintain a cold site
  4. D) Frequent backups

 

7

 

 

 

 

42) Concerning system availability, which of the following statements is true?

  1. A) Human error does not threaten system availability.
  2. B) Proper controls can maximize the risk of threats causing significant system downtime.
  3. C) Threats to system availability can be completely eliminated.
  4. D) Threats to system availability include hardware and software failures as well as natural and man-made disasters.

 

4

 

 

 

43) Which of the following is not an objective of a disaster recovery plan?

  1. A) Minimize the extent of the disruption, damage or loss.
  2. B) Permanently establish an alternative means of processing information.
  3. C) Resume normal operations as soon as possible.
  4. D) Train employees for emergency operations.

 

7

 

 

 

 

44) Which item below would not typically be part of an adequate disaster recovery plan?

  1. A) a system upgrade due to operating system software changes
  2. B) uninterruptible power systems installed for key system components
  3. C) scheduled electronic vaulting of files
  4. D) backup computer and telecommunication facilities

 

7

 

 

 

 

45) A facility that contains all the computing equipment the organization needs to perform its essential business activities is known as a

  1. A) cold site.
  2. B) hot site.
  3. C) remote site.
  4. D) subsidiary location.

 

7

46) A facility that is pre-wired for necessary telecommunications and computer equipment, but doesnt have equipment installed, is known as a

  1. A) cold site.
  2. B) hot site.
  3. C) remote site.
  4. D) subsidiary location.

 

7

 

 

 

47) When a computer systems files are automatically duplicated on a second data storage system as they are changed, the process is referred to as

  1. A) real-time mirroring.
  2. B) batch updating.
  3. C) consistency control.
  4. D) double-secure storage.

 

7

 

 

 

 

48) ________ enables a system to continue functioning in the event that a particular component fails.

  1. A) An incremental backup procedure
  2. B) Fault tolerance
  3. C) Preventive maintenance
  4. D) A concurrent update control

 

4

 

 

 

 

49) A copy of a database, master file, or software that will be retained indefinitely as a historical record is known as a(n)

  1. A) archive.
  2. B) cloud computing.
  3. C) differential backup.
  4. D) incremental backup.

 

6

 

 

 

 

50) While this type of backup process takes longer than the alternative, restoration is easier and faster.

  1. A) Archive
  2. B) Cloud computing
  3. C) Differential backup
  4. D) Incremental backup

 

6

 

 

 

 

51) ________ involves copying only the data items that have changed since the last partial backup.

  1. A) Archive
  2. B) Cloud computing
  3. C) Differential backup
  4. D) Incremental backup

 

5

 

 

 

 

52) ________ copies all changes made since the last full backup.

  1. A) Archive
  2. B) Cloud computing
  3. C) Differential backup
  4. D) Incremental backup

 

6

 

 

 

 

53) The maximum amount of time between backups is determined by a companys

  1. A) recovery time objective.
  2. B) recovery point objective.
  3. C) recovery objective.
  4. D) maximum time recovery objective.

 

5

 

 

 

 

54) The maximum acceptable down time after a computer system failure is determined by a companys

  1. A) recovery time objective.
  2. B) recovery point objective.
  3. C) recovery objective.
  4. D) maximum time recovery objective.

 

5

 

 

 

 

55) The accounting department at Synergy Hydroelectric records an average of 12,500 transactions per hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in the event of a system failure is 25,000 transactions. If the firms recovery time objective is 120 minutes, then the worst case recovery time objective is

  1. A) 1 hour
  2. B) 2 hours
  3. C) 3 hours
  4. D) 4 hours

 

5

 

 

 

 

56) The accounting department at Synergy Hydroelectric records an average of 10,000 transactions per hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in the event of a system failure is 20,000 transactions. If the firms recovery time objective is 60 minutes, then the worst case recovery time objective is

  1. A) 1 hour
  2. B) 2 hours
  3. C) 3 hours
  4. D) 4 hours

 

5

 

 

 

 

57) The accounting department at Synergy Hydroelectric records an average of 10,000 transactions per hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in the event of a system failure is 40,000 transactions. The firms recovery point objective is therefore

  1. A) 40,000 transactions
  2. B) 10,000 transactions
  3. C) 10 hours
  4. D) 4 hours

 

5

 

 

 

 

58) The accounting department at Synergy Hydroelectric records an average of 12,500 transactions per hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in the event of a system failure is 25,000 transactions. The firms recovery point objective is therefore

  1. A) 25,000 transactions
  2. B) 12,500 transactions
  3. C) 1 hour
  4. D) 2 hours

 

5

 

 

 

 

59) This control entails verifying that the proper number of bits are set to the value 1 in each character received.

  1. A) Echo check
  2. B) Field check
  3. C) Parity check
  4. D) Trailer record

 

9

 

 

 

60) Probably the most important change management control is

  1. A) monitoring user rights and privileges during the change process.
  2. B) testing all changes thoroughly prior to implementation on a stand-alone computer.
  3. C) updating all documentation to reflect changes made to the system.
  4. D) managements careful monitoring and review.

 

9

 

 

 

 

61) Which of the following is true?

  1. A) Cloud computing is a control technique for system availability.
  2. B) Cloud computing eliminates the need for backup of applications and data.
  3. C) Cloud computing refers to the practice of storing application files and backup data on satellites in the clouds.
  4. D) Cloud computing eliminates the need for companies to own their own software and servers.

 

8

 

 

 

 

62) Discuss how cloud computing could both positively and negatively affect system availability.

 

63) Define and contrast a recovery point objective and a recovery time objective.

 

Accounting Information Systems, 12e (Romney/Steinbart)

Chapter 22   Systems Design, Implementation, and Operation

 

1) Developing a general framework for implementing user requirements and solving problems identified in the analysis phase occurs in which phase of the SDLC?

  1. A) conceptual systems design
  2. B) implementation and conversion
  3. C) operations and maintenance
  4. D) physical design

 

41

 

 

 

 

2) Who is responsible for evaluating the design alternatives and selecting the one that best meets the organizations needs?

  1. A) design team
  2. B) implementation committee
  3. C) steering committee
  4. D) systems analysts

 

41

 

 

 

 

3) Which of the following lists represent the sequence of elements in developing the conceptual design specifications?

  1. A) input, data storage, processing procedures and operations, and output
  2. B) input, output, data storage, and processing procedures and operations
  3. C) output, data storage, input, and processing procedures and operations
  4. D) processing procedures and operations, input, data storage, and output

 

43

 

 

 

 

4) The project team wants to find the most efficient way to collect data in order to prepare a report on sales per store. Which element in design specifications will deal with the decision?

  1. A) data collection
  2. B) input
  3. C) output
  4. D) processing procedures

 

43

 

 

 

 

5) One of the purposes of the ________ is to guide physical systems design activities.

  1. A) conceptual systems design report
  2. B) physical systems design report
  3. C) program design
  4. D) systems analysis report

 

43

 

 

 

 

6) The decision about how often to produce a certain report is part of which conceptual design specification element?

  1. A) data storage
  2. B) input
  3. C) output
  4. D) processing procedures and operations

 

43

 

 

 

 

7) Which of the following is not a reason for preparing the conceptual systems design report?

  1. A) It can be used to guide physical systems design activities.
  2. B) It communicates how management and user information needs will be met.
  3. C) It discusses the design alternatives that were not selected for the project.
  4. D) It helps the steering committee assess system feasibility.

 

43

 

 

 

 

8) Which consideration below is not considered important to output design?

  1. A) format
  2. B) location
  3. C) medium
  4. D) source

 

43

 

 

 

 

9) All of the following reports have pre-specified content and format except

  1. A) demand reports.
  2. B) scheduled reports.
  3. C) special-purpose analysis reports.
  4. D) triggered exception reports.

 

44

 

 

 

 

10) For file and database design, it is advantageous to have

  1. A) all data in compatible format.
  2. B) easy access to the system.
  3. C) a printout of the data dictionary.
  4. D) copies of necessary reports.

 

44

 

 

 

 

11) Physical input design considerations include

  1. A) which transactions to enter.
  2. B) layout of source documents.
  3. C) types of data input and optimal input methods.
  4. D) cost of collecting and storing data.

 

45

 

 

 

 

12) Program design

  1. A) spans all five stages of the system development life cycle.
  2. B) includes writing computer code.
  3. C) includes debugging logic errors.
  4. D) is described by all the above.

 

45-646

 

 

 

 

13) Which of the following statements below is correct about modules of computer code created during program design?

  1. A) Modules interact with each other directly and also through the control module.
  2. B) Modules interact with each other directly.
  3. C) Modules interact with only the control module.
  4. D) Modules primarily, but not always, interact with the control module.

 

46

 

 

 

 

14) Which of the following statements is true?

  1. A) Structured programming divides programs into well-defined segments to reduce complexity.
  2. B) Structured programming is used to debug logic errors in programs.
  3. C) Structured programming is accomplished by using a flowchart to guide design.
  4. D) Structured programming pieces together standard code strings into a completed program.

 

46

 

 

 

 

15) Which of the following is not a consideration in procedures and controls design?

  1. A) Are customer data stored in alphabetical order in a master file?
  2. B) Are payments made only to legitimate vendors?
  3. C) Are data processed and stored accurately?
  4. D) Can the system be modified without affecting system availability?

 

48

 

 

 

 

16) The accountant wants to make sure that all cash disbursements are made only to legitimate vendors. Which of the following control considerations will deal with this concern?

  1. A) security
  2. B) accuracy
  3. C) authorization
  4. D) validity

 

48

 

 

 

 

17) The sales department wants to make sure that all customer inquiries are answered in real-time. Which of the following controls design considerations will deal with this concern?

  1. A) security
  2. B) authorization
  3. C) accuracy
  4. D) audit trail

 

48

 

 

 

 

18) At what point in the systems development life cycle does the company determine how the conceptual AIS design is to be implemented?

  1. A) the conceptual design phase
  2. B) the implementation and conversion phase
  3. C) the physical design phase
  4. D) the systems analysis phase

 

48

 

 

 

19) What is the most time-consuming activity in the physical design stage of the systems development life cycle (SDLC), or perhaps even in the entire SDLC process?

  1. A) controls design
  2. B) input design
  3. C) output design
  4. D) program design

 

45

 

 

 

20) Which of the following is a consideration during file and database design?

  1. A) form size
  2. B) format
  3. C) medium
  4. D) organization

 

45

 

 

 

 

21) ________ is the process of installing hardware and software and getting the AIS up and running.

  1. A) Conceptual design
  2. B) Physical design
  3. C) Systems analysis
  4. D) Systems implementation

 

48

 

 

 

 

22) The first step in program design is to

  1. A) determine user needs.
  2. B) develop a plan.
  3. C) hire program users.
  4. D) write program instructions.

 

46

 

 

 

23) Flowcharts, record layouts, decision tables, and related items are part of

  1. A) determining user needs.
  2. B) documenting the program.
  3. C) testing the program.
  4. D) training program users.

 

47

 

 

 

 

 

24) Effective AIS training involves

  1. A) instruction on new hardware and software.
  2. B) orientation to new policies and operations.
  3. C) planning and scheduling so it occurs before system testing and conversion.
  4. D) All of the above are correct.

 

49

 

 

 

 

25) Step-by-step reviews of procedures or program logic early in the system design that focus on inputs, files, outputs, and data flows are called

  1. A) acceptance tests.
  2. B) operating tests.
  3. C) processing of test transactions.
  4. D) walk-throughs.

 

50

 

 

 

 

26) One process used to uncover and eliminate program errors is known as

  1. A) black box testing.
  2. B) debugging.
  3. C) desk checking.
  4. D) white box testing.

 

46

 

 

 

27) What is used as the basis for management to make a go/no go decision regarding whether to proceed from the physical design phase to the implementation and conversion phase of the systems development life cycle?

  1. A) conceptual system design report
  2. B) physical systems design report
  3. C) systems design report
  4. D) implementation planning design report

 

48

 

 

 

 

 

28) Who is responsible for identifying such risk factors in an implementation plan?

  1. A) implementation team
  2. B) steering committee
  3. C) systems analysis team
  4. D) systems development team

 

48

 

 

 

 

29) Within the implementation planning and conversion phase of the systems development life cycle, analysts must ________ before they can ________.

  1. A) complete documentation; test software programs
  2. B) install and test software; test software programs
  3. C) test software programs; test the system
  4. D) test the system; select and train personnel

 

50

 

 

 

30) In which phase of the systems development life cycle would changing tax rates in a software program b

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