Chapter 1—Introduction to Accounting Information Systems Essay

3536 Words Mar 17th, 2016 15 Pages
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Essay Sample
Chapter 1—Introduction to Accounting Information Systems TRUE/FALSE 1. The three themes of the text are operating systems, e-business, and internal control. ANS: F 2. In an assurance service the accountant will provide the original information used for decision making. ANS: F 3. Financial care for the elderly has been identified by the AICPA as a potential assurance service. ANS: T 4. Wireless technologies was identified as one of the ten most important 2006

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14. Sarbanes-Oxley Section 404 compliance is a major line of business for the biggest accounting firms.


15. The Sarbanes Oxley Act of 2002 applies to publicly traded companies and not-for-profit entities.


16. The purpose of an accounting information system is to collect, process, and report financial aspects of business events.


17. The MIS is a subsystem of the AIS.


18. Sales/marketing information system is traditionally part of the AIS.


19. Billing/accounts receivable is traditionally part of the AIS.


20. Production and personnel are part of the operations process.


21. The management process includes marketing and sales.


22. Information that is capable of making a difference in a decision-making situation, by reducing uncertainty or increasing knowledge for that particular decision, has the quality of relevance.


23. Information about a customer’s credit history that is received after the decision to grant additional credit lacks completeness.


24. The consistency principle is violated when a firm uses straight-line depreciation one year and changes to declining balance depreciation the next year.


25. Accuracy is the information quality that refers to the extent to which information corresponds to (agrees with) underlying objects or events.


26. Generally, the benefits
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