Chapter 01

Multiple Choice Questions
1. Which of the following are parts of most accounting information systems?

a. Activities and documents only.
b. Activities and technology only.
c. Documents and technology only.
D. Activities, documents and technology.
Answer: D Difficulty: Easy Learning objective: 1
. Accounting information systems are designed to!
a. Minimize cost.
b. Maximize use of information technology.
C. "eport information to decision ma#ers.
d. Eliminate the need for paper documents.

Answer: C Difficulty: Easy Learning objective: 1
$. Which of the following statements a%out accounting information systems is most true?
A. &hey transform data into information.
b. They transform information into data.
c. They transform data into decisions.
d. They transform information into decisions.
Answer: A Difficulty: Easy Learning objective: 1

'. Accounting information systems!
a. Emphasize that the areas of accounting (financial, tax and so on are
separate and unrelated.
b. !ocus on problems that have deterministic ans"ers.
C. (s an important foundation for the study of auditing.
d. #s the most important area of accounting study.


Hurt: Accounting Information Systems McGraw-Hill Companies, 200
C!apter
). A(* study focuses on!
A. Developing critical thin#ing and +udgment s#ills.
b. !inding the $one right ans"er$ to a problem.
c. #dentifying deterministic solutions that can be applied universally.
d. %omputers and other forms of information technology.

,. &he study of accounting information systems incorporates #nowledge from!
a. Management and finance only.
b. Management and information systems only.
c. !inance and information systems only.
D. Management, finance and information systems.

-. Consider the following two statements a%out accounting information systems! .i/ A(*
incorporates more pro%lems with deterministic solutions than other areas of accounting.
.ii/ A(* is more integrative than other areas of accounting. Which of the statements is0are
true?
a. i only.
1. ii only.
c. &oth i and ii.
d. 'either i nor ii.

Answer:
B
Difficulty: Easy Learning objective: 3
2. Which of the following lin#s the study of accounting information systems with the
study of intermediate accounting?
A. Discussion of the 3A*1 Conceptual 3ramewor#.
b. An emphasis on finding one right ans"er to every problem.
c. 'o need for (udgment or decision ma)ing.
d. Memorizing the standards for preparing financial statements.


4. 55555 in an accounting information system helps promote 55555 in the financial
statements.
a. Documents, accuracy.
1. (nternal controls, relia%ility.
C!apter
c. #nformation technology, matching.
d. Data, relevance.

Answer:
B
16. A typical accounting information system comprises 555 parts.
a. Three.
b. !our.
C. 3ive.
d. *ix.

11. Accounting information systems typically incorporate which of the following! .i/ inputs,
.ii/ outputs, .iii/ storage.
a. i and ii only.
b. ii and iii only.
c. i and iii only.
D. i, ii, and iii.

1. (n an accounting information system, 7inputs7 often come in the form of!
A. *ource documents.
b. !inancial statements.
c. %omputer reports.
d. #nternal controls.

1$. According to the te8t, information a%out accounting information systems on the (nternet
falls into 555 main groups.
a. T"o.
1. &hree.
c. !our.
d. !ive.

Answer:
B
C!apter
1'. What type of information involves paying a fee to have it pu%lished on the (nternet?
A. *ponsored0commercial.
b. +ractitioner.
c. *cholarly.
d. ,elevant.

1). 9valuating information relia%ility is part of!
a. #nformation relevance.
b. #nformation overload.
C. (nformation literacy.
d. #nformation transformation.

1,. Accounting information systems incorporate interrelated activities such as!
a. Debiting and crediting accounts.
b. Developing and solving problems "ith one right ans"er.
C. 1uying and selling inventory.
d. *uggesting ne" elements and ne" levels for the conceptual frame"or).

Answer: C Difficulty: e!iu" Learning objective: 1
1-. Documents in an accounting information system are!
a. Al"ays paper-based.
b. Al"ays electronic.
C. 9ither paper:%ased or electronic.
d. 'either paper-based nor electronic.

12. Accounting information systems involve choices such as! .i/ whether or not to
incorporate information technology, .ii/ whether or not to pre:num%er documents li#e
chec#s.
A. i only.
b. ii only.
c. &oth i and ii.
d. 'either i nor ii.
C!apter

Answer: A Difficulty: e!iu" Learning objective: 1
14. Which of the following %est demonstrates the relationship %etween accounting
information systems and other areas of accounting?
a. Tax accountants have to create budgets.
b. Auditors often prepare tax returns for their clients.
C. ;irtually all areas of accounting involve inputs, processes, outputs, storage and
internal controls.
d. Accounting information systems is the most important area of accounting.

6. Which of the following situations is most li#ely to re<uire +udgment and critical
thin#ing?
A. Deciding which piece of software to adopt as an A(* processing tool.
b. Determining "hether to debit or credit cash.
c. +resenting assets on the balance sheet in order of their li.uidity.
d. +reparing a statement of cash flo"s.

1. &he relationship %etween accounting information systems and information technology is
most clearly shown %y! .i/ using de%its and credits to record transactions, .ii/ incorporating
+ournals and ledgers as processing tools.
a. i only.
b. ii only.
c. &oth i and ii.
D. =either i nor ii.

Answer: D Difficulty: e!iu" Learning objective: 2
. >ro%lems in accounting information systems are often less li#ely to have deterministic
answers than pro%lems in other areas of accounting. Which of the following <uestions has a
deterministic answer?
a. *hould A#* documents be paper or electronic/
1. What is the %alance in cash as of August 14, 66,?
c. 0hat are the costs and benefits of using information technology in the A#*/
d. At "hat point does an amount become $material$ as the term is defined in the conceptual
frame"or)/

Answer:
B
Difficulty: e!iu" Learning objective: 3
C!apter
C!apter
$. Which of the following do all areas of accounting have in common?
A. >roviding information for decisions.
b. !ocusing on debits and credits.
c. +reparing financial statements.
d. Minimizing income taxes.

'. 1oth accounting information systems and intermediate accounting can incorporate the
conceptual framewor# of accounting as a topic. Which part of the conceptual framewor#
most closely corresponds with the 7outputs7 of an accounting information system?
a. Assumptions.
b. +rinciples.
c. %onstraints.
D. 9lements of financial statements.

). Which of the following is =?& an e8ample of an input to the accounting information
system?
a. *ales invoice.
b. +urchase order.
c. %ustomer chec).
D. 1alance sheet.

,. ?utputs from an accounting information system include! .i/ income statements, .ii/ ta8
returns, .iii/ decisions.
A. i and ii only.
b. ii and iii only.
c. i and iii only.
d. i, ii and iii.

-. (nternal controls in an accounting information system help promote information
integrity. Which of the following %est e8plains the concept of information integrity?
C!apter
a. !inancial statements are sub(ect to audit.
b. 1sers can rely on the financial statements as the sole basis for decisions.
C. &he information in A(* outputs is relia%le.
d. Accounting information systems that incorporate computer soft"are are more reliable than
paper-based systems.

2. As the term is used in information literacy, 7currency7 means!
a. #nformation over one year old should not be used for decisions.
b. !inancial information is more important than non-financial information.
C. Decision ma#ers should pay attention to pu%lication dates.
d. !inancial statements should be converted to 1* dollars "henever possible.

4. An author@s identity and %ac#ground are most closely related to which element of
information competence?
A. Authority.
b. Accuracy.
c. 2b(ectivity.
d. %overage.

$6. "ecently, 1um%le 1easley was researching information pu%lished in 142). Which of the
following topics would he most li#ely consider 7non:current7 in his research?
a. Elements of financial statements.
b. &asic parts of an accounting information system.
C. Computer security techni<ues.
d. +urpose of accounting.

$1. Which of the following is the %est e8ample of 7information7 as the term is used in
7accounting information systems?7
a. ,ules of debit and credit.
1. 1udgets.
c. %onceptual frame"or) of accounting.
d. *ource documents.
C!apter
Answer:
B

$. &he 7information7 in an accounting information system should %e! .i/ timely, .ii/ truthful,
.iii/ relia%le.
a. i and ii only.
b. ii and iii only.
C. i and iii only.
d. i, ii and iii.

$$. A well:designed accounting information system recogniAes and adapts to the cost:
%enefit constraint of the conceptual framewor#. Which of the following is most li#ely to
violate the cost:%enefit constraint?
A. &ranslating financial statements into si8 ma+or glo%al languages.
b. 3iving every member of the accounting staff access to a net"or).
c. 1sing debits and credits to record transactions.
d. %onverting financial statements prepared in one currency to another currency.

$'. Which of the following %est illustrates why accounting information systems is an
important area of study for future accountants?
a. Ma)ing (ournal entries.
b. +reparing financial statements.
c. Memorizing the rules of debit and credit.
D. Coping with uncertainty.

$). *tudying accounting information systems is important %ecause it helps future
accountants develop critical thin#ing s#ills and professional +udgment. Which of the
following situations involves the use of professional +udgment! .i/ developing sales %udgets,
.ii/ printing financial statements from a computer program, .iii/ evaluating internal controls.
a. i and ii only.
b. ii and iii only.
C. i and iii only.
d. i, ii and iii.

C!apter
$,. Which of the following <uestions is most li#ely to result in a deterministic answer?
A. Bow many units of inventory are on hand as of August 14, 66,?
b. 0hich inventory items should "e continue to sell/
c. 0hich inventory items should be discontinued next year/
d. 0hat is the expected gross profit for 4556/

$-. Which of the following statements is0are true when comparing accounting information
systems with %asic financial accounting! .i/ pro%lems never have 7one right answer,7 .ii/
computers are essential to %oth areas.
a. i only.
b. ii only.
c. i and ii.
D. =either i nor ii.

$2. Which of the following accounting areas involves professional +udgment! .i/ accounting
information systems, .ii/ %udgeting, .iii/ choosing %etween 3(3? and C(3?.
a. i and ii only.
b. ii and iii only.
c. i and iii only.
D. i, ii and iii.
$4. &he cost0%enefit constraint mentioned in the 3A*1 conceptual framewor# is important in
all areas of accounting. Which of the following is a cost that should %e considered in many
A(* tas#s?
a. +roducing financial statements more .uic)ly.
b. &asing decisions on more accurate information.
C. Considering the effects of decisions on human %ehavior.
d. Memorizing the rules for preparing financial statements.

'6. *ystem outputs in an A(* include the general:purpose financial statements, variance
analysis reports and!
C!apter
a. 7ournal entries.
1. *chedules of accounts receiva%le and accounts paya%le.
c. &an) statements.
d. More efficient processes.

Answer:
B
'1. *ource documents in an accounting information system include sales invoices,
purchase orders and!
A. 1an# statements.
b. ,eports of pro(ected stoc) prices.
c. Evaluations of accounting staff.
d. %urrency and coin.

'. (nternal controls such as 5555 help promote information relia%ility in the accounting
information system.
a. !inancial statements.
1. 1an# reconciliations.
c. &udgets.
d. %omputers.

Answer:
B
'$. &he we% site for Dell Computers is an e8ample of 555 information.
a. *cholarly.
b. +ractitioner.
C. *ponsored0commercial.
d. Accurate.

''. Which type of information would %e most useful in deciding whether or not to create a
wireless networ# as part of an accounting information system?
a. *cholarly.
1. >ractitioner.
c. *ponsored8commercial.
d. %ultural.
C!apter

Answer:
B
'). 7Coverage7 is one %asis for evaluating (nternet information in the list developed %y the
Dniversity of Maryland. Which of the following statements on a we% site would cause you to
<uestion its coverage?
a. This "eb site "as last updated on August 9:, 455;
b. %ontact &umble &easley if you need a consultant on this topic.
C. &his we% site is a wor# in progress.
d. The content of this site is sponsored by <=> %orporation.

',. Which of the following is a fact a%out accounting information systems?
a. They al"ays involve computers.
b. They do not report information unless it can be expressed financially.
c. They provide the most important information for decision ma)ing.
D. &hey involve interrelated parts.

Answer: D Difficulty: #ar! Learning objective: 1

&he following scenario relates to Questions '- through )6!
*ebastian "rote a chec) to pay a supplier?s invoice. The chec) had to be signed by t"o
company officers and "as later part of a monthly ban) reconciliation. The canceled chec) "as
filed under the supplier?s name.
'-. &he inputs mentioned in the preceding scenario are
A. &he chec# and the invoice.
b. The chec) and the ban) reconciliation.
c. The ban) reconciliation and the file.
d. The file and the supplier?s invoice.

Answer: A Difficulty: #ar! Learning objective: 4
'2. &he internal controls mentioned in the preceding scenario are!
a. The dual signatures on the chec) and the file.
b. The ban) reconciliation and the file.
C. &he dual signatures on the chec# and the %an# reconciliation.
d. The supplier?s invoice and the ban) reconciliation.
Answer: C Difficulty: #ar! Learning objective: 4
C!apter
'4. (n the preceding scenario, 555 was %oth an input and an output.
A. &he invoice.
b. The supplier?s name.
c. The t"o signatures.
d. *ebastian.
Answer: A Difficulty: #ar! Learning objective: 4
)6. 3iling the chec# under the supplier@s name is an e8ample of!
a. #nput.
b. +rocessing.
c. 2utput.
D. *torage.

Answer: D Difficulty: #ar! Learning objective: 4
>ro%lems!
)1. A(* definition - 1se terms from the follo"ing list to fill in the blan)s in the definition of
accounting information systems@
Activities
Data
Decision ma)ers
Diverse
Documents
#nformation
#nterrelated
Technologies
An accounting information system is a set of AAA AAA, AAA and AAA designed to collect AAA,
process it and report AAA to a AAA group of internal and external AAA in organizations.
Answer!
An accounting information system is a set of interrelated activities, documents and
technologies designed to collect data, process it and report information to a diverse group of
internal and external decision ma#ers in organizations.

). >arts of an A(* - Match each item on the right "ith the most appropriate .uestion on the left,
based on the structure of most accounting information systems.
C!apter
AAA 9. #nputs.
AAA 4. #nternal controls.
AAA B. 2utputs.
AAA C. +rocesses.
AAA D. *torage.
a. 0hat processes are necessary to promote information integrity in the A#*/
b. 1nder "hat conditions can8should data be destroyed/
c. #f computer-based tools are used in the A#*, "hich soft"are and hard"are pac)ages should be
implemented/
d. Eo" many copies of each source document "ill be re.uired/
e. &eyond the general-purpose financial statements, "hat other reports "ill managers and
system users need/
*olution@ 9. DF 4. AE B. 9F C. CF D. 1
)$. A(* and other areas of accounting - #ndicate "hether each of the follo"ing statements
regarding accounting information systems is (a al"ays true, (b sometimes true or (c never true.
=ou do not need to "rite a (ustification for the statements that are sometimes true.
9. A "ell designed accounting information system can help fulfill some elements of the !A*&
%onceptual !rame"or).
4. Accounting information systems problems are often open-ended.
B. All areas of accounting can involve problems "ith deterministic responses.
C. All problems in accounting information systems involve every area of accounting.
D. &ecause many A#* problems don?t have one right ans"er, those same problems don?t
have any "rong ans"ers either.
;. 2ther areas of accounting, such as financial and managerial accounting, do not involve
open-ended problems.
6. +roblems in accounting information systems do not have deterministic responses.
G. *olutions to problems in A#* and other areas of accounting al"ays involve the use of
information technology.
:. The general-purpose financial statements lin) accounting information systems "ith other
areas of accounting.
95. The study of internal controls can lin) accounting information systems "ith other areas of
accounting.
*olution@ 9. AF 4. AE B. AE C. CE D. CF ;. CF 6. 1F G. CF :. 1F 95. 1
)'. (mportance of A(* study - Accounting information systems is important because it helps
students develop their ability to respond to open-ended problems. 0hich of the follo"ing are open-
ended/ +lace an $<$ in the appropriate column.
C!apter

*olution! 9. yesE 4. yesF B. noE C. yesF D. yesF ;. noF 6. noE G. noF :. noF 95. no
)). (nformation evaluation criteria - &umble &easley too) t"o introductory accounting courses
as part of his college degreeF his ma(or "as engineering. Ee started his o"n engineering consulting
company and later published an article in an engineering (ournal titled $The ,elationship bet"een
Engineering and the !A*& %onceptual !rame"or).$ The article, "hich contained no references to
other documents, discussed five elements of financial statements and referred readers to &umble?s
"eb site. Eis "eb site featured an $under construction$ iconF its primary purpose "as to obtain
consulting clients for &umble?s firm.
&ased on the preceding scenario, identify one phrase8sentence that violates each of the follo"ing
criteria for evaluating information. !or example, $discussed five elements of financial statements$
violates the $accuracy$ criterion since the conceptual frame"or) discusses eight elements.
C!apter
Answer!


),. 9lements of the A(* - Most accounting information systems comprise five componentsF they
are listed belo", along "ith examples of each from the text. #n the space provided, provide one
additional example of each element.
Answer!
C!apter
)-. A(* structure - &en and 1ma o"n and operate !raming 0orld, a company that frames
diplomas, professional certificates and other documents. %ustomers bring in the documents they
"ant framedF &en or 1ma fills out a sales order noting the client?s information (name, address and
so on, the type of document to be framed and the details of the framing itself (such as the type and
color of frame. They also scan the document to the store?s internal computer net"or) for reference
purposes. Most documents are framed by hand, but !raming 0orld also uses some specialized
e.uipment for more complex (obs. The company maintains its accounting records in a general
ledger systemF the firm?s accountant prepares monthly reports, such as income statements and
ban) reconciliations, using spreadsheets and "ord processing soft"are. 0or) in process and
finished goods inventory are )ept secure "ith alarm systems and video surveillance.
Accounting information systems typically comprise five elements. Analyze the preceding narrative by
identifying specific examples of each element. ,ecord your responses in the grid belo".

Answer! (2ther examples are possible, but all five elements must be present

Difficulty: #ar! Learning objective: 4
C!apter
)2. Accounting information system definition - According to the text, an accounting information
system is a set of interrelated activities, documents and technologies designed to collect data,
process it and report information to a diverse group of internal and external decision ma)ers in
organizations. %onsider that definition in light of the follo"ing scenario@
A local video store purchases multiple copies of popular movies and television series by issuing
electronic purchase orders. 0hen the movies come in, a cler) fills out a receiving report and puts
the movies on the shelves by category (e.g., all the comedies together. Each copy of each movie
receives a bar code that identifies it for inventory purposes. 0hen a client selects a movie to rent,
a cler) scans the bar codeF the company?s information system updates its database. The client
receives an invoice noting the title of the video, the rental date, the cler)?s name and the due
date. At the end of each month, the store manager do"nloads the rental and purchase
information and transmits it to the store?s accountant. The accountant prepares a monthly income
statement, balance sheet and ban) reconciliation and sends them bac) to the store "ithin three
days. The store manager revie"s all three "ith the employees.
Analyze the video store?s accounting information system by identifying t"o examples of each item
in the grid belo". ,ecord your ans"ers in the spaces provided.
Answer! (2ther ans"ers are possible
C!apter
)4. 9valuating sources of information - &umble &easley?s accounting information systems
professor assigned a paper on methods for safeguarding inventory. #n his research, &umble
identified five sources of information, described in the table belo"@
The assignment directions clearly state that &umble may use no more than three sources for the
paper, and &umble has decided to use the 1niversity of Maryland evaluation criteria (authority,
accuracy, ob(ectivity, currency and coverage as the basis for his selection. 0hich three of the
five sources should &umble use/ !or the other t"o sources, "hich 1niversity of Maryland criteria
made them undesirable/
*olution! Sources to use: , $, and )F Sources not to use@ 9 (violates authority and C (violates
currency

,6. Conceptual framewor# - The !A*& %onceptual !rame"or) lin)s accounting information
systems "ith other areas of accounting, such as intermediate accounting and auditing. The first
level of the conceptual frame"or) explains the ob(ective of financial reportingF the second level
discusses elements of financial statements and .ualitative characteristics. The frame"or)?s third
level presents t"elve fundamental accounting ideas (listed belo", organized in three categories.
#dentify each category "ith its proper name from the conceptual frame"or), then organize the
ideas based on the three categories. 1se the grid provided for your ans"ers.
%onservatism
%ost effectiveness
Economic entity
!ull disclosure
3oing concern
Eistorical cost
#ndustry practices
Matching
Materiality
Monetary unit
+eriodicity
,ealization
C!apter
Answer!

*hort answer!
&he following scenario applies to Questions ,1 through ,)!
A fello" student in one of your classes struc) up a conversation one day. $0hat?s your ma(or,$
he as)ed. $Accounting,$ you replied. $0o" #?ve heard accounting is a tough ma(or. 0hat
accounting classes are you ta)ing this term/$ =ou started tal)ing about your accounting
information systems course, and your friend as)ed you the .uestion(s noted belo". +repare
a "ritten response for your friend.
,1. Cist and discuss three ways accounting information systems is related to other areas of
accounting.
Answer!
Accounting information systems is related to other areas of accounting in at least the follo"ing
"ays. !irst, its emphasis is on providing information for ma)ing decisions. *econd, it often
involves responding to problems "ith non-deterministic ans"ers. Third, its focus is fre.uently, but
not exclusively, on financial information.
C!apter
,. Four friend said! 7( thought accounting was all a%out num%ers and columns, %ut your
A(* class sounds different than that.7 98plain to your friend why the study of accounting
information systems is important for future accountants.
Answer!
A#* is an important area of study for future accountants because it helps them learn ho" to
promote information integrity and system reliability through sound internal controls. A#* also help
future accountants master many of the technologies they may use in practice. And, it helps them
understand and document business processes carefully and completely.

,$. Four friend wor#s at a local retail store. Dse the five generic parts of most accounting
information systems to demonstrate how A(* concepts would %e applied in your friend@s +o%.
Answer!
Accounting information systems have five generic parts@ inputs, processes, outputs, storage and
internal controls. #n a video store, a system input could be a customer invoice, "hich "ould be
used for recording the sale. +rocesses in the video store?s accounting information system "ould
include items li)e posting entries into the general ledger, "hile outputs could be the financial
statements and reports of rental fre.uency for specific titles. Data could be stored in filing
cabinets or on a computer dis). As internal controls, video surveillance and daily ban) deposits
"ould help promote efficiency, effectiveness and reliable financial statements.

,'. Fou mention to your friend that A(* study often re<uires significant amounts of
research, and that you@re learning how to differentiate and evaluate information you find on
the (nternet. Distinguish the three types of information discussed in the te8t.
Answer!
The three information types discussed in the text are@ practitioner, commercial and scholarly.
Although the three share some similarities, they are differentiated by at least the follo"ing items@
(a nature of authors, (b publication venues, (c overall purpose. !or example, a scholarly article
might be authored by a university professor "ith advanced research training. %ommercial
information might be published on a company?s o"n "eb site. And the purpose of practitioner
information "ould be to improve accounting practice.

C!apter
,). Fou tell your friend a%out some of the topics you@ll %e studying this term in A(*!
information technology, financial statements, internal control, %usiness documents and
decision ma#ing. 7(nformation technology7 is mentioned specifically in the definition of an
accounting information system presented in the te8tE information technology can also %e
used as a processing tool. "elate the remaining four items .financial statements, internal
control, %usiness documents and decision ma#ing/ to the definition of A(*.
Answer!
The text provides the follo"ing definition of an accounting information system@ An accounting
information system is a set of interrelated activities, documents and technologies designed to
collect data, process it and report information to a diverse group of internal and external decision
ma)ers in organizations. !inancial statements are information, "hile internal controls are part of
the interrelated activities referred to in the definition. &usiness documents are referenced both by
$documents$ and $data.$ Decision ma)ing is explicitly mentioned by referring to internal and
external decision ma)ers.


C!apter

Chapter 01

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Chapter 01

Transféré par

Droits d'auteur :

Formats disponibles

Multiple Choice Questions

1. Which of the following are parts of most accounting information systems?

Vous aimerez peut-être aussi