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AIS_TEST#1
Chap 1, 2, 4 & 12
| Question | Answer |
|---|---|
| The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company’s network. | Accessible |
| The data on a report was checked by two clerks working independently (see note above under #2 for the distinction between reliability and its sub-characteristic of verifiability) | Verifiable |
| The report was carefully designed so that the data contained on the report became information to the reader | Understandable |
| An accounts receivable aging report was received before the credit manager had to make a decision whether to extend customer credit | Timely |
| An accounts receivable aging report that included all customer accounts | Complete |
| A report checked by 3 different people for accuracy NOTE checking was done independently | Reliable |
| An accounts receivable aging report used in credit granting decisions (i.e., the report was appropriate for using to make the particular decision) | Relevant |
| Purchase raw materials | Expenditure cycle Prepare, approve, and send purchase orders to vendors |
| Payoff mortgage on factory | Financing cycle Retire debt |
| Hire a new assistant controller | Human resources/payroll cycle Recruit, hire, and train new employees |
| Establish a $10,000 credit limit for XYZ company | Revenue cycle Approve credit sales |
| Pay for raw materials | Expenditure cycle Pay vendors for goods and services |
| Disburse payroll checks to factory workers | Human resources/payroll cycle Prepare and disburse payroll |
| Record goods received from a vendor | Expenditure cycle Receive goods and services and complete a receiving report |
| Update the allowance for uncollectible accounts | Revenue cycle Handle sales returns, discounts, allowances, and bad debts |
| Decide how many units to make next month | Production cycle Forecast, plan, and schedule production |
| Complete a picking ticket for goods ordered by customer | Revenue cycle Pick and pack customer orders |
| Record factory employee timecards | Human resources/payroll cycle Prepare and disburse payroll |
| Sell concert tickets | Revenue cycle Approve credit sales |
| Draw on line-of-credit | Financing cycle Borrow money from lenders |
| Send new employees to a business ethics course | Human resources/payroll cycle Recruit, hire, and train new employees |
| Pay utility bills | Expenditure cycle Pay vendors for goods and services |
| Pay property taxes on office building | Expenditure cycle Pay vendors for goods and services |
| Pay federal payroll taxes | Human resources/payroll cycle Calculate and disburse taxes and benefit payments |
| Sell DVD player | Revenue cycle Approve credit sales |
| Collect payments on customer accounts | Revenue cycle Receive customer payments and deposit them in the bank |
| Obtain a bank loan | Financing cycle Borrow money from lenders |
| Pay sales commissions | Human resources/payroll cycle Note Sales Prepare and disburse payroll |
| Send an order to a vendor | Expenditure cycle Prepare, approve, and send purchase orders to vendors |
| Put purchased goods into the warehouse | Expenditure cycle Store goods |
| Definition of: system | A system is a set of two or more interrelated compontents that interact to acheive a goal |
| Definition of: information | Information is data that have been organized and processed to provide meaning and improve tha decision-making process. |
| Definition of: data | Data are facts that are collected, recorded, stored and processed by an information system. |
| Definition of: accounting | Accounting is a data identification, collection, and storage process as well as an information development, measurement, and communication process. |
| Definition of: AIS | AIS is the intelligence-the information-providing vehicle-of that language. |
| Data diffier from information in which way? | Information is output, and data is input. |
| Which of the following is NOT a characteristic that makes information useful? It is reliable; It is timely; It is inexpensive; It is revelent; | Inexpensive |
| Which of the following is a primary activity in the value chain? purchasing; accounting; post-sales service; human resources management; | post-sales service because Service is a primary activity |
| Which transaction cycle includes interactions between an organization and its suppliers? revenue; expenditure; human resourdes/payroll; general ledger & reporting | Expenditure |
| Which of the following is NOT a means by which information improves decision making? increase information overload; reduces uncertainty; providesfeedback on decision; identitfies mgt action; | Increases information overload |
| In the value chain concept, upgrading IT is considered what kind of activity? | Support activity |
| In which cycle does a company ship goods to customers? | Revenue cycle b/c handles interactions with customers and organizations |
| Which of the following of an AIS? | Transforming data into useful information |
| A firm, its suppliers, and its customers collectively form which of the following | Supply chain |
| A report telling how well all approved vendors have performed in the prior 12 months is information that is MOST needed in which business process? | Acquiring inventory |
| The steps a company must follow to efficiently and effectively process data about its transactions | Data processing cycle |
| Initial record of a transaction that takes place; usually recorded on preprinted forms or fomatted screens | Source documents |
| Company data sent to an external party and then returned to the system as input | Turnaround documents |
| Devices that capture transaction data in machine-readable form at the time and place of their origin | Source data automation |
| Contains summary-level data for every asset, liability, equity, revenue, and expense account | General ledger |
| Contains detailed data for any general ledger account with many individual subaccounts | Subsidiary ledger |
| The general ledger account corresponding to a sudsidiary ledger, where the sum of all subsidiary ledger entries should equal the amount in the general ledger account | Control account |
| Systematic assignment of numbers of letter to items to classify and organize them | Coding |
| Items are numbered consecutively to account for all items; missing items cause a gap in the numerical sequence | Sequence code |
| Set of numbers are reserved for specific categories of data | Block code |
| Two or more subgroups of digits are used to code items | Group code |
| Letters and numbers, derived from the item description, are interspersed to identify items; usually easy to memorize | Mnemonic code |
| List of general ledger account numbers; allows transaction data to be coded, classified, and entered into proper accounts; facilitaes preparation of financial statements and reports | Chart of account |
| Used to record infrequent or nonroutine transactions | General journal |
| Used to record large numbers of repetitive transactions | Specialized journal |
| Path of a transaction through a data processing system from point of origin to final output, or backwards from final output to point of origin | Audit trail |
| Something about which information is stored | Entity |
| Charateristics of interest that need to be stored | Attribute |
| Portion of a data record that contains the data value for a particular attribute, like a cell in a spreadsheet | Field |
| Fields containing data about entity attributes; like in a row in a spreadsheet | Record |
| Contents of a specific field, such as "George" in a name field | Data value |
| Stores cumulative information about an organization; like a ledger in a manual AIS | Master file |
| Contains records fo individual business transactions that occur during a specific time period | Transaction file |
| Set of interrelated, centrally coordinated files | Database |
| Updating done periodically, such as daily | Batch processing |
| Updating each transaction as it occurs | Online, real-time processing |
| The relational data model portrays data as being stored in _________________. | Tables |
| How a user conceptually organzies and understands data is refferred to as the ______________. | Logical view |
| What is each row in a relational database table called? | Tuple |
| Which of the following is an individual user's view of the database? | External-level schema |
| Which of the following would managers most likely use to retrieve information about sales during the month of October? | DQL - data query language |
| Which of the following attributes would most likely be a primary key? | Supplier number |
| Which of the following is a software program that runs a database system? | DBMS - database management system |
| The constraint that all primary keys must have non-null data values id reffered to as which fo the following? | Entity inegrity rule |
| The constraint that all foreign keys must hafve either null values or the value of a primary key in another table is referred to as which of the following? | Referential integrtiy rule |
| Which of the following attributes in the Cash Receipts table (representing payments received from customers) would most likely be a foreign key? | Customer number |
| Which activity is part of the sales order entry process? | Checking customer credit |
| Which document often accompanies merchandise shipped to a customer? | Packing slip |
| Which method is most likely used when a company offers customers discounts for prompt payment? | Open-invoice method |
| to process customer payment and update accounts receivable? | FEDI - |
| Which of the following revenue cycle activities can pentenially be eliminated by technology? | Billing |
| The integrated database underlying an ERP system results in which of the following general threats to the revenue cycle? | Inaccurate or invalid master data; Unauthorized disclosure of sensitive information; Loss or destruction of data. |
| Which of the following provides a means to both improve the efficiency of processing customer payments and also enhance control over those payments? | Lockboxes |
| For good internal control, who should approve credit memos? | Credit manager |
| For good internal control over customer remittances, the mailclerk shuld separate the chacks from the remitance advices and send the customer payments to which department? | Cashier |
| Document used to authorize reducing the balance in a customer account | Credit memo |
| Process of dividing customer account master file into subsets and preparing invoices for one subset ar a time | Cycle billing |
| System that integrates EFT and EDI information | FEDI |
| System the contains customer-related data organized in a manner to facilitate customer service, sales, and retention | CRM system |
| Method of maintaining accounts receivable that generates one payment for all sales made the previous month | Balance-forward method |
| Method of maintaining customer accounts that generates payments for each individual sales transaction | Open-invoice method |
| Maximum possible account balance for a customer | Credit limit |
| Post Office box to which customer send payments | Lockbox |
| Document used to indicate stockouts exist | Backorder |
| Document used to establich responsiblity for shipping goods via a third party | Bill of lading |
| Document that authorizes removal of merchandise from inventory | Picking ticket |
| Turnaround documnet returned by customers with payments | Remittance advice |
| 4 steps in the data processing cycle | Data input; data storage; data processing; information out |
| Data input | Data is collected about 3 facets of each business activity REA |
| REA | Resources Events Agents |
| Data storage | How the company records transactions |
| Data processing | CRUD Creating Reading Updating Deleting |
| Information out | Displayed on monitor -- "soft copy" Printed documnets -- "hard copy" |
| What is DDL? | Data Definition Language - builds the data dictionary, creates the database, describes logical viewsa for each user, and specifies records or fields secruity constraints. Create (define) the database... |
| What is DML? | Data Manipulation Language - Changes the database content, including data elements updates, insertions, and deletions. Change (update, insert, delete) data in the database... |
| What is DQL? | Data Query Language - contains powerful, easy-to-use commands that enable users to retrieve, sort, order, and display data. A report writer simpifies report creation. Query (retrieve, sort, order, display) data in the database... |
| Which activity is part of the sales order entry process? setting customer credit limits; preparing a bill of lading; checking customer credit; approving sales returns | Checking customer credit |
| Which document often accompanies merchandise shipped to a customer? picking ticket; packing slip; credit memo; sales order | Packing slip |
| Which method is most likely used when a company offers customers discount for prompt payment? open-invoice method; balance-forward method; accounts receivable aging method; cycle billing method | Open-invoice method |
| This show the amount of monthly statement and does not track invoices | balance-forward method |
| Which of the following techniques is the most efficient way to process customer payments & update accounts receivable? EFT; CRM; FEDI; ACH | FEDI |
| 4 basic activities of the revenue cycle | Sales Order Entry; Shipping; Billing; Cash Collections |
| Sales Order Department; Credit Department; Inventory Control; Customer Service | Sales Order Entry |
| Inventory Control; Shipping Department | Shipping |
| Billing/Accounts Receivable Function in the Accounting Department; Credit Department | Billing |
| Mailroom personnel; Accounts Receivable in the Accounting Department; Cashier | Cash Collections |
| Sales Order Entry has 4 typical subactivities | Take order from customer; Approve customer credit; Check inventory available; Respond to customer inquiries (i.e., Customer Service) |
| Shipping has 2 activities | Pick and pack goods; Ship goods |
| Pick and pack goods by warehouse personnel in Inventory Control involves what documents | Picking ticket (internally generated to Revenue Cycle by Inventory Control, based on data from the sales order copy received from Sales Order Department, could be an exact copy of the sales order) |
| Ship goods by Shipping Department involves what documents | Packing slip (internally generated to Revenue Cycle by Shipping Department, based on comparing goods to picking ticket copy from Inventory Control) Bill of lading (externally generated to Revenue Cycle by Carrier – it is the Carrier’s form) |
| What type of key is sales order number on sales invoice? | Sales order # is a foreign key |
| What are the typical interrelated components of an AIS? | People -- most important; Procedures and instructions; Data to be processed into information; Software to process data into information; IT infrastructure; Internal controls and security |
| How is in the supply chain? | Supplier; Manufacturer; Distributor; Retailer; Consumer |
| Data input records REA so Documents are used to record these entries? | Source documents (including turnaround documents) and source data automation |
| A collection of related fields is ___________. | A record or tuple |
| A collection of related records is __________. | A table |
| A collection of related tables is ___________. | A relational database |
| What is THE attribute that uniquely identifies a specific record from all other records in a table? | Primary key |
| What is the other attributes in a table that help describe (a characteristic of) a specific record, but by themselves are not unique in identifying a specific record because multiple records can have the same attribute value? | Nonkey/secondary keys |
| What is a special type of secondary key in a table that is a primary key in another table? | Foreign key |
Created by:
dashep89
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