Chapter 1—Introduction to Accounting Information Systems Essay

3536 Words Mar 17th, 2016 15 Pages
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 technological challenges and opportunities facing CPAs.

ANS: T

5. Knowledge of Microsoft Access was identified as one of the ten most important 2006 technological challenges and opportunities facing CPAs.

ANS: F

6. Enterprise systems provide
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ANS: T

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

ANS: T

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

ANS: F

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

ANS: T

17. The MIS is a subsystem of the AIS.

ANS: F

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

ANS: F

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

ANS: T

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

ANS: T

21. The management process includes marketing and sales.

ANS: F

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.

ANS: T

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

ANS: F

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

ANS: T

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

ANS: T

26. Generally, the benefits…

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