(Romney/Steinbart) · 2021. 4. 21. · Accounting Information Systems, 14e (Romney/Steinbart)...

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Copyright © 2018 Pearson Education, Inc.

Accounting Information Systems, 14e (Romney/Steinbart)

Chapter 1 Conceptual Foundations of Accounting Information Systems

1 Distinguish data from information, discuss the characteristics of useful information, and explain how to determine the value of information.

1) Which of the following statements below shows the contrast between data and information? A) Data is the primary output of an accounting information system. B) Information is the primary output of an accounting information system. C) Data is more useful in decision making than information. D) Data and information are the same. Answer: B Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

2) When a subsystem's goals are inconsistent with the goals of another subsystem or with the system as a whole, it creates A) system inconsistence. B) system conflict. C) goal inconsistence. D) goal conflict. Answer: D Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

3) When a subsystem achieves its goals while contributing to the organization's overall goal, it is called A) system match. B) system congruence. C) goal congruence. D) goal match. Answer: B Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

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4) Information is best described as A) raw facts about transactions. B) data that has been organized and processed so that it is meaningful to the user. C) facts that are useful when processed in a timely manner. D) the same thing as data. Answer: B Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

5) The value of information can best be determined by A) its usefulness to decision makers. B) its relevance to decision makers. C) the benefits associated with obtaining the information minus the cost of producing it. D) the extent to which it optimizes the value chain. Answer: C Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

6) An accounting information system (AIS) processes ________ to provide users with ________. A) data; information B) data; transactions C) information; data D) data; benefits Answer: A Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

7) ________ information reduces uncertainty, improves decision makers' ability to make predictions, or confirms expectations. A) Timely B) Reliable C) Relevant D) Complete Answer: C Concept: Information needs and business processes Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking


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8) Information that is free from error or bias and accurately represents the events or activities of the organization is A) relevant. B) reliable. C) verifiable. D) timely. Answer: B Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

9) Information that does not omit important aspects of the underlying events or activities that it measures is A) complete. B) accessible. C) relevant. D) timely. Answer: A Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

10) Information is ________ when two knowledgeable people independently produce the same information. A) verifiable B) relevant C) reliable D) complete Answer: A Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking


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11) Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of A) relevancy. B) timeliness. C) understandability. D) reliability. Answer: D Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

12) Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If information can help reduce uncertainty, improves decision making, or confirms or corrects prior expectations, it is representative of the characteristic of A) reliability. B) relevance. C) complete. D) truthful. Answer: B Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

13) Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If the same information can be reproduced by two independent and knowledgeable people, it is representative of the characteristic of A) reliability. B) relevance. C) verifiability. D) truthful. Answer: C Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking


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14) Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If the information is free from error or bias, it is representative of the characteristic of A) reliability. B) relevance. C) verifiability. D) truthful. Answer: A Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

15) Inventory information for Sun Corp. is provided in real time by a firm's accounting information system. However, the accuracy of this information is questionable. Many store managers often report stock outs of components that the system indicates are in stock. Which of the following characteristics of useful information is absent in the situation described above? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: B Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking


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16) Sam Jones has been the controller of Downtown Tires for 25 years. Ownership of the firm recently changed hands and the new owners are conducting an audit of the financial records. The audit has been unable to reproduce financial reports that were prepared by Sam. While there is no evidence of wrongdoing, the auditors are concerned that the discrepancies might contribute to poor decisions. Which of the following characteristics of useful information is absent in the situation described above? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: F Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

17) Sam Jones has been the controller of Downtown Tires for 25 years. Ownership of the firm recently changed hands and the new owners are conducting an audit of the financial records. The audit has been unable to obtain the firm's financial statements that were prepared by Sam. While there is no evidence of wrongdoing, the auditors are not able to complete the audit. Which of the following characteristics of useful information is absent in the situation described above? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: G Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking


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18) In 2015, Singh Manufacturing implemented a Web-based information system that allows all employees to access mission-critical information. The intention was to increase production efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and costs increased. Shaman Gupta, the director of information technology services, asked Ashlee Wells to come in and talk with him about the system. Ashlee is a long-time employee of Singh, and her opinion is valued by her peers and by her supervisor. "So Ashlee, how's it going down there in the shop?" "Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan production. Now, we got that computer system. Most of us can't figure out how to use it to do our jobs. Is there some way to print out a pick list?" Shaman thought for a while before responding. "Well, Ashlee, to tell you the truth, I'm not so sure how to do it myself, but there must be a way. We'll bring in the consultants that helped us build the system. Maybe they can help." Which of the following characteristics of useful information is absent in the situation described above? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: E Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking


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19) In 2015, Singh Manufacturing implemented a Web-based information system that allows all employees to access mission-critical information. The intention was to increase production efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and costs increased. Shaman Gupta, the director of information technology services, asked Ashlee Wells to come in and talk with him about the system. Ashlee is a long-time employee of Singh, and her opinion is valued by her peers and by her supervisor. "So Ashlee, how's it going down there in the shop?" "Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan production. Now, we got that computer system. Most of the time we can't get all of the information that we need. Is there some way to print out a list that has everything that we need?" Shaman thought for a while before responding. "Well, Ashlee, to tell you the truth, I'm not so sure how to do it myself, but there must be a way. We'll bring in the consultants that helped us build the system. Maybe they can help." Which of the following characteristics of useful information is absent in the situation described above? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: C Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking


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20) Wisconsin Dells, Wisconsin, is a popular tourist destination. During the winter months, the population dwindles to a meager few, but when summer comes, the size of the town surges. Hunter Jackson is the town sanitation engineer. When the size of the town surges, so do his responsibilities. Among them is management of the sewage processing volume. In an interview with the local paper, Hunter complained that a report on tourist population that he uses to adjust processing volume refers to data that was collected four days ago and it takes him a week to make adjustments. Which of the following characteristics of useful information is absent in the situation described above? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: D Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

21) Wisconsin Dells, Wisconsin, is a popular tourist destination. During the winter months, the population dwindles to a meager few, but when summer comes, the size of the town surges. Hunter Jackson is the town sanitation engineer. When the size of the town surges, so do his responsibilities. Among them is management of the sewage processing volume. In an interview with the local paper, Hunter complained that a report on tourist population that he uses to adjust processing volume refers to data that was not always accurate and it is really giving him a hard time to make adjustments. Which of the following characteristics of useful information is absent in the situation described above? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: B Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking


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22) A frantic Barney Rubble lost a large sale because he could not access the system to verify the inventory was in stock and ready to be shipped. Which of the following characteristics of useful information is absent in the situation described above? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: G Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

23) Message left on voicemail: "Hi Nikki! Just landed at the airport. How about dinner this evening if you're available. Call me!" Which of the following characteristics of useful information is absent in the situation described above? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: C Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking


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24) Chopra, Limited, is an Indian company operating in New York state. It offers stylized, boutique public relations services to upscale retailers in quaint New England towns. A major source of revenue is a weekly newsletter that reports on current and projected tourist travel and spending patterns. Preparation of the newsletter requires study and analysis of weather conditions, economic activity, and travel costs. It is available at an annual subscription rate of $299.99. There are currently 190 subscribers. Preparation and distribution of the newsletter costs $12,000 annually. The value of information to subscribers is A) $236.83. B) $44,998.10. C) less than $63.16. D) at least $300.00. Answer: D Concept: Information needs and business processes Objective: Learning Objective 1 Difficulty: Easy AACSB: Application of Knowledge

25) Chopra, Limited, is an Indian company operating in New York state. It offers stylized, boutique public relations services to upscale retailers in quaint New England towns. A major source of revenue is a weekly newsletter that reports on current and projected tourist travel and spending patterns. Preparation of the newsletter requires study and analysis of weather conditions, economic activity, and travel costs. It is available at an annual subscription rate of $299.99. There are currently 190 subscribers. Preparation and distribution of the newsletter costs $12,000 annually. Chopra has always been able to manage to keep its newsletter operation above their breakeven point. The value of information to Chopra is A) $236.83. B) $44,998.10. C) less than $63.16. D) at least $12,000. Answer: D Concept: Information needs and business processes Objective: Learning Objective 1 Difficulty: Moderate AACSB: Application of Knowledge


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26) Baggins Incorporated identifies new product development and product improvement as the top corporate goals. An employee developed an innovation that will correct a shortcoming in one of the company's products. Although Baggins current Return on Investment (ROI) is 12%, the product innovation is expected to generate ROI of only 10%. As a result, awarding bonuses to employees based on ROI resulted in A) goal conflict. B) information overload. C) goal congruence. D) decreased value of information. Answer: A Concept: Information needs and business processes Objective: Learning Objective 1 Difficulty: Challenging AACSB: Application of Knowledge

27) Baggins Incorporated identifies new product development and product improvement as the top corporate goals. An employee developed an innovation that will correct a shortcoming in one of the company's products. Although Baggins current Return on Investment (ROI) is 10%, the product innovation is expected to generate ROI of 15%. As a result, awarding bonuses to employees based on ROI resulted in A) goal conflict. B) information overload. C) goal congruence. D) decreased value of information. Answer: C Concept: Information needs and business processes Objective: Learning Objective 1 Difficulty: Challenging AACSB: Application of Knowledge

28) Which of the following tradeoffs between characteristics of useful information is least

objectionable? A) incomplete information received on a timely basis B) irrelevant information received in an understandable format C) unreliable information easily accessible D) verifiable information received in unreadable format Answer: A Concept: Information needs and business processes Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking


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29) Which of the following is not one of the three basic types of data about a specific sales transaction that should be captured by an Accounting Information System? A) name of the employee who completed the sale B) daily sales quota C) product sold D) date Answer: B Concept: Information needs and business processes Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

30) Define the concept of a system. Answer: A system is a set of two or more components that are somehow interrelated and interact together to achieve a specific goal. Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

31) Define data, information, and how the value of information is determined. Answer: Data: facts that are collected, entered, recorded, stored, and processed by an AIS. Information: data that has been organized and processed and is meaningful to its users. Such information is accessible, relevant, timely, reliable, verifiable, complete, and understandable. Information is of value when the benefits received from using or acting upon it outweigh the cost to produce the information. Concept: Information needs and business processes Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

32) Discuss the concept of a system and the issues of goal conflict and goal congruence. Answer: A system is a set of two or more components that are somehow interrelated and interact together to achieve a specific goal. A system usually consists of smaller components called subsystems. These subsystems have specific and defined functions, which interact with and support the larger system. The concept of systems is key to information technology and AIS. All systems, including the AIS, must work to achieve one or more organizational goals. Goal conflict results when a decision or action of a subsystem is inconsistent with another subsystem or the system (organization) as a whole. Goal congruence results when a subsystem achieves its goals while contributing to the organization's overall goal. Subsystems should maximize organizational goals. Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking


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33) Discuss the seven characteristics of useful information. Answer: The seven characteristics of useful information are: relevant, reliable, complete, timely, understandable, verifiable and accessible. These characteristics are qualities that information should possess to be useful in a business environment. Briefly stated, in order for information to be useful it must be: 1) relevant, meaning that it reduces uncertainty and adds to the decision-making process; 2) reliable information is information that is free from error, and is accurate in its nature; 3) complete information is information that does not omit any important data, facts, or aspects about events or activities; 4) information is timely when it is fully available to enable the decision-making process to proceed; 5) understandable information must be both in an intelligible and useful format; 6) information is considered verifiable if two people, acting independently of each other, produce the same information or the same results. 7) Information is accessible if it is available to users when they need it and in a format they can use. Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

34) Discuss the concept of a system and the issues of goal conflict and goal congruence. Answer: A system is a set of two or more components that are somehow interrelated and interact together to achieve a specific goal. A system usually consists of smaller components called subsystems. These subsystems have specific and defined functions, which interact with and support the larger system. The concept of systems is key to information technology and AIS. All systems, including the AIS, must work to achieve one or more organizational goals. Goal conflict results when a decision or action of a subsystem is inconsistent with another subsystem or the system (organization) as a whole. Goal congruence results when a subsystem achieves its goals while contributing to the organization's overall goal. Subsystems should maximize organizational goals. Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

2 Explain the decisions an organization makes, the information needed to make them, and the major business processes present in most companies.

1) Paid time-off policies, job descriptions, and procedures manuals are examples of information needed to support key decisions in what business process? A) hire and train employees B) acquire inventory C) sell merchandise D) collect payment from customers Answer: A Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking


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2) Before a firm can identify the information needed to effectively manage a process, the firm must A) hire an outside consultant. B) understand the process. C) purchase computers and/or workstations. D) obtain internet access. Answer: B Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

3) Identify the piece of information below that is typically needed to acquire a building. A) job descriptions B) vendor performance C) market coverage D) capacity needs Answer: D Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

4) Identify the piece of information below that is typically needed to acquire inventory. A) job descriptions B) vendor performance C) market coverage D) capacity needs Answer: B Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

5) Identify the piece of information below that is typically needed to hire and train employees. A) job descriptions B) vendor performance C) market coverage D) capacity needs Answer: A Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking


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6) How can query languages be used to help make better decisions? A) They can suggest a course of action. B) They can gather relevant data for decision making. C) They can help the decision maker to interpret results. D) They can model choose among alternative courses of action. Answer: B Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Challenging AACSB: Reflective Thinking

7) What is a key decision that needs to be made with regards to selling merchandise? A) which banking institution to use B) which employees to hire C) which public accounting firm to employ D) which credit cards to accept Answer: D Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

8) What is a key decision that needs to be made with regards to paying vendors for goods and services? A) which credit cards to accept B) which employees to hire C) which vendors to pay D) how much capital to acquire Answer: C Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

9) What is a key decision that needs to be made with regards to borrowing money from lenders? A) the location B) pro forma income statement C) how much capital to acquire D) job descriptions Answer: C Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking


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10) One group that relies on both the adequate collection and transformation of data for decision-making purposes for an organization is A) management. B) interested outsiders. C) competitors. D) the government. Answer: A Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

11) Who of the following is not a stakeholder with whom an accounting information system typically communicates directly? A) The federal government. B) Venture capitalist. C) Company that supplies raw material. D) Company that purchases finished goods for resale to consumers. Answer: A Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

12) In which transaction cycle would customer sales transaction information be most likely to pass between internal and external accounting information systems? A) the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle D) the financing cycle Answer: A Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

13) In which transaction cycle would information for inventory purchases be most likely to pass between internal and external accounting information systems? A) the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle D) the financing cycle Answer: B Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking


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14) In which transaction cycle would information relating to employees benefit be most likely to pass between internal and external accounting information systems? A) the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle D) the financing cycle Answer: C Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

15) In which transaction cycle would information for paying dividends be most likely to pass between internal and external accounting information systems? A) the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle D) the financing cycle Answer: D Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

16) In which transaction cycle would information for retiring long-term debt be most likely to pass between internal and external accounting information systems? A) the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle D) the financing cycle Answer: D Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking


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17) In which transaction cycle would information for initiating back orders for out of stock goods be most likely to pass between internal and external accounting information systems? A) the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle D) the financing cycle Answer: A Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

18) Identify the party below that is not external to the firm. A) customer B) vendor C) government agencies D) CEO Answer: D Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

19) Identify the party below that is not internal to the firm. A) customer B) management C) employees D) CEO Answer: A Concept: Information needs and business processes Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

20) Receiving goods from vendors is part of which cycle? A) the revenue cycle B) the financing cycle C) the expenditure cycle D) the payroll cycle Answer: C Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking


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21) The ________ is not a transaction cycle. A) general ledger and reporting cycle B) expenditure cycle C) revenue cycle D) human resources cycle Answer: A Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

22) Identify the false statement below. A) Retail stores do not have a production cycle. B) Financial institutions have installment-loan cycles. C) Every organization should implement every transaction cycle module. D) A service company does not have an inventory system. Answer: C Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

23) Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the revenue cycle would be A) give cash, get goods. B) give goods, get cash. C) give cash, get labor. D) give cash, get cash. Answer: B Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

24) Groups of related business activities such as the acquisition of merchandise and payment of vendors are called A) transaction cycles. B) economic cycles. C) business events. D) transactions. Answer: A Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking


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25) The transaction cycle that includes product design is known as the A) revenue cycle. B) expenditure cycle. C) production cycle. D) financing cycle. Answer: C Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

26) The transaction cycle approach yields efficiencies when processing of a large number of transactions because A) a large number of transactions within a given cycle can be categorized into a relatively small number of distinct types. B) transaction cycles are easier to computerize. C) the transaction cycle approach represents the natural order of business. D) transaction cycles are easy to understand. Answer: A Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

27) Updating accounts receivable is part of which transaction cycle? A) Human resources/payroll. B) Expenditure. C) Financing. D) Revenue. Answer: D Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

28) Who of the following would not be involved in the expenditure cycle? A) Accounts payable clerk. B) Receiving clerk. C) Cashier. D) Requisition manager. Answer: C Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking


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29) How are "Give and Take" transactions classified in business today and what impact does this have on AIS? Answer: The concept of "Give and Take" transactions has been used to classify business transactions into "cycles" that have starting points, processes, and end points (or closure). The majority of business transactions can be classified as revenue, expenditure, human resources (payroll), production, and financing cycles. AIS has been modeled after these transaction cycles to achieve its basic functions of collecting and processing data, providing information useful for decision making, and establishing adequate controls. Concept: Information needs and business processes Objective: Learning Objective 2 Difficulty: Moderate AACSB: Reflective Thinking

3 Explain how an AIS adds value to an organization, how it affects and is affected by corporate strategy, and its role in a value chain.

1) An accounting information system must be able to perform which of the following tasks? A) collect transaction data B) process transaction data C) provide adequate controls D) all of the above Answer: D Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

2) Which of the following is not an example of a common activity in an AIS? A) buy and pay for goods and services B) sell goods and services and collect cash C) summarize and report results to interested parties D) record sales calls for marketing purposes Answer: D Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking


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3) Which of the following is not one of the components of an AIS? A) internal controls and security measures B) people C) procedures and instructions D) hardware Answer: D Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

4) The primary objective of accounting is to A) implement strong internal controls. B) provide useful information to decision makers. C) prepare financial statements. D) ensure the profitability of an organization. Answer: B Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

5) Many modern accounting software packages offer separate transaction cycle modules. What is the reason for this? A) Every organization does not need to implement all of the available transaction cycle modules. B) Most businesses do not need the revenue cycle module as part of their AIS. C) The nature of a given transaction cycle is the same irrespective of the type of organization. D) A properly designed AIS does not use the concept of separate business transaction cycles to process transactions. Answer: A Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

6) Define an accounting information system. Answer: An AIS is a system that collects, records, stores, and processes data to produce information for decision makers. Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking


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7) Identify the components of an accounting information system. Answer: A well-designed AIS consists of people, procedures and instructions, data, software, information technology infrastructures, and internal controls and security measures. Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

8) Explain what an AIS is, describe the basic tasks it performs in an organization, and give some examples of the types of accounting transactions it processes. Answer: An AIS consists of six components: people, procedures and instructions, data, software, information technology infrastructures, and internal controls and security measures. The AIS performs three major functions: 1) it collects and stores data about activities and transactions so that the organization's management, employees, and interested outsiders can review what has happened; 2) the AIS processes data (that is, facts that have been collected and stored) into information that is useful for making decisions, and is of value to the organization; and 3) the AIS provides adequate controls designed to safeguard the organization's assets, including its data and information. Common examples of accounting transactions that an AIS helps to process and track are the sales of products to customers, cash collections, cash payments, and the recording and payment of the employees' payroll. Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Reflective Thinking

9) Why have accounting software packages been designed with separate transaction modules? Answer: Since every organization does not necessarily use all of the transaction cycles in its operations, it is to the advantage of the organization to be able to "pick and choose" from among various software modules that track and record different transaction cycles. For example, a law firm would have no need to implement a production cycle module. Also, the nature of a transaction cycle varies across the broad spectrum of business organizations. Again, a law firm would have a revenue cycle, but it would not involve the purchase, receipt, and payment for products or merchandise; likewise a retail store chain may not sell any consulting services to its customers. Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

10) An accounting information system requires at least one computer. Answer: FALSE Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking


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11) The American Institute of Certified Public Accountants (AICPA) has recognized the importance of AIS and the major impact information technology has on the area of accounting. To recognize individual CPAs who have met educational and experiential requirements in this area, the group formally created the designation known as A) the Certified Information Auditor. B) the Certified Internal Auditor. C) the Certified Information Technology Professional. D) the Certified Data Processing Professional. Answer: C Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

12) The AIS must include controls to ensure A) safety and availability of data. B) marketing initiatives match corporate goals. C) information produced from data is accurate. D) both A and C Answer: D Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

13) An AIS provides value by A) improving products or services through information that increases quality and reduces costs. B) providing timely and reliable information to decision makers. C) creating new products. D) both A and B Answer: D Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

14) A good example of how an AIS is used to share knowledge within an organization is A) the use of a corporate database to help staff identify the relevant experts who can help with a particular client. B) the use of tablets to access a network for messaging worldwide. C) the monitoring of production equipment to watch for defects. D) the use of point-of-sale data to determine hot-selling items. Answer: A Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking


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15) When the AIS provides information in a timely and accurate manner, it stands as an example of A) improved decision making. B) improving the quality and reducing the costs of products or services. C) improving efficiency. D) all of the above Answer: D Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

16) Accounting information plays major roles in managerial decision making by A) identifying situations requiring management action. B) reducing uncertainty. C) providing a basis for choosing among alternative actions. D) all of the above Answer: D Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

17) A well-designed AIS can improve the decision making in an organization. Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making. A) An AIS provides to its users an abundance of information without any filtering or condensing of such information. B) An AIS identifies situations requiring management action. C) An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action. D) An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making. Answer: A Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking


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18) Which of the following is not an example of how an AIS adds value to an organization? A) All employees at a hospital can access and update patient records from any computer terminal in the hospital. B) A customer service representative can find a customer's account data, purchase history, payment history, and salesperson's name while on the phone with the customer, to resolve issues quickly. C) Suppliers are able to access sales data directly from the point-of-sale system of a retailer and deliver inventory automatically when needed. D) Client tax files are encrypted and made available on the CPA firm's network to any employee with an access code. Answer: A Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Challenging AACSB: Reflective Thinking

19) Which of the following is not an example of how an AIS adds value to an organization? A) Patient information at a hospital are encrypted and made only available on the hospital's network to the patient with an access code. B) Patient billing information at a hospital are encrypted and made only available on the hospital's network to insurance companies with an access code. C) Patient information at a hospital are encrypted and made only available on the hospital's webpage to anyone with access to a search engine. D) Patient information at a hospital are encrypted and made only available on the hospital's network to healthcare professional with an access code. Answer: C Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Challenging AACSB: Reflective Thinking

20) What is the CITP designation and why is it important to AIS? Answer: The CITP designation stands for "Certified Information Technology Professional." It is awarded to CPAs who have demonstrated a broad range of knowledge and skill sets in the areas of accounting and information systems and technology. The AICPA (American Institute of CPAs) has acknowledged the importance and close relationship that accounting and information systems share in creating this specialty designation for accounting information system professionals. Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking


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21) Differentiate between an AIS course and other accounting courses. Answer: Other accounting courses assume the preparation or reporting of accounting information is for external or internal users. However, the AIS course focuses on the flow of accounting information in the organization from a systems perspective. The AIS course traces the origin, processing, storing, and ultimate disposal of information. An AIS course also focuses on business processes, organization structure, information systems, and corporate planning and goals. Concept: Accounting information systems Objective: Learning Objective 3 Difficulty: Challenging AACSB: Reflective Thinking

22) How can an AIS add value to the organization? Answer: An AIS can increase the efficiency and effectiveness of the value chain by improving the quality and lowering costs of products or services, improving efficiency of operations, improving decision making, enhancing the sharing of knowledge, improving the efficiency and effectiveness of its supply chain and improving the internal control structure. Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Information Technology

23) How can an AIS become part of the firm's value chain and add value to the business? Answer: The AIS can add value by: helping to improve products and services an organization offers for sale; increasing the quality of products and services; creating greater efficiency by reducing costs and saving time; and improving the overall efficiency of the organization. Decision making is enhanced by the better availability of timely, complete, reliable, verifiable, and relevant information. A firm can enjoy a competitive advantage with better customer ordering, billing, and customer service made possible by an improved AIS. The AIS can also enhance overall communication and use of knowledge in a business by making the knowledge readily available to interested parties. Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Information Technology


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24) How can the value of the information produced by an accounting information system be determined? What would a measurement and verification expert think about quantification and verification of such information? Answer: A well-designed AIS improves the efficiency and effectiveness of the value chain by improving the quality and lowering the overall cost of products or services, improving efficiency of operations, improving decision making, and enhancing the sharing of knowledge. These are the benefits of possessing and using information. Drawbacks to possessing and using such information are the costs of obtaining and maintaining such information. These costs include investments in people, processes, and computing and networking hardware and software on an ongoing basis. Costs of the information are quantifiable to some extent. However, some of the benefits of using the information involve numerous estimates and assumptions. As such, the quantification of the benefits of utilizing such information depends on the accuracy of the assumptions. Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Challenging AACSB: Information Technology

25) A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the A) organizational culture. B) customer base. C) external financial statement users. D) production activity. Answer: A Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

26) In Chapter 1, Figure 1-4 shows the factors that influence the design of AIS. The diagram shows a bi-directional arrow between the organizational culture and the AIS. The reason for this two-way interchange between organizational culture and AIS is A) that the AIS should not influence the values of the organizational culture. B) because the organization's culture influences the AIS, and likewise the AIS influences the organization's culture by controlling the flow of information within the organization. C) due to the transfer of managers between the two corporate elements. D) the AIS impacts the organization's key strategies. Answer: B Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Application of Knowledge


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27) Which of the following is a true statement? A) Business strategy directly influences AIS, but not information technology. B) Information technology directly influences organizational culture, but not business strategy. C) Organizational culture directly influences business strategy, but not AIS. D) AIS directly influences information technology, but not business strategy. Answer: A Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Challenging AACSB: Reflective Thinking

28) Corporate strategy should affect the way a firm deploys an accounting information system. Answer: TRUE Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

29) Identify the primary reason that it is important for a firm to identify the AIS improvements likely to yield the greatest return. A) because business strategy directly influences AIS, but not information technology B) because most organizations have limited resources C) because a firm never wants to waste time addressing issues that are not urgent D) because it is expensive to improve accounting information systems Answer: B Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

30) An AIS that makes information more easily accessible and more widely available is likely to increase pressure for A) centralization and defined procedures. B) centralization and autonomy. C) decentralization and defined procedures. D) decentralization and autonomy. Answer: D Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Challenging AACSB: Reflective Thinking


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31) Identify how firms use predictive analysis.

A) to provide an educated guess regarding what is expected to occur in the near future B) to engage in data warehousing C) to engage in a low-cost strategy D) to design the most effective accounting information system Answer: A Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

32) Identify a recent technological advance that provides an opportunity to gain a competitive advantage. A) CVVP analysis B) discounted cash flows C) predictive analysis D) economic order quantity (EOQ) Answer: C Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Challenging AACSB: Reflective Thinking

33) It is important that a firm's AIS collect and integrate financial and non-financial information about the organization's activities if the firm uses its AIS to gain a competitive advantage. Answer: TRUE Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

34) When properly deployed, accounting information systems can provide firms with a competitive advantage. Answer: TRUE Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking


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35) The process of creating value for customers is the result of nine activities that form a A) value chain. B) capitalist operation. C) profitable business. D) information system. Answer: A Concept: Value chain Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

36) The value chain concept is composed of two types of activities known as A) primary and support. B) primary and secondary. C) support and value. D) technology and support. Answer: A Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

37) Which of the following is a primary activity in the value chain? A) infrastructure B) technology C) purchasing D) marketing and sales Answer: D Concept: Value chain Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

38) Arranging delivery of products to customers constitutes ________ in value chain analysis. A) shipping B) inbound logistics C) outbound logistics D) delivery Answer: C Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking


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39) ________ are examples of activities that constitute inbound logistics. A) Activities that transform inputs into final products or services B) Activities that consist of receiving, storing, and distributing the materials used as inputs by the organization to create goods and/or services it sells C) Activities that provide post-sale support to customers D) Activities that help customers to buy the organization's products or services Answer: B Concept: Value chain Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking

40) A value chain typically consists of five primary activities that can directly provide value to customers. The activities that help customers buy the organization's products or services represent A) inbound logistics. B) outbound logistics. C) marketing and sales. D) operations. Answer: C Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

41) A value chain typically consists of five primary activities that can directly provide value to customers. The activities that help distribute finished products or services to customers represent A) inbound logistics. B) outbound logistics. C) marketing and sales. D) operations. Answer: B Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking


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42) A value chain typically consists of five primary activities that can directly provide value to customers. The activities that help to transform inputs into final products or services represent A) inbound logistics. B) outbound logistics. C) marketing and sales. D) operations. Answer: D Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

43) A value chain typically consists of five primary activities that can directly provide value to customers. The activities that help to provide post-sale support to customers represent A) service. B) outbound logistics. C) marketing and sales. D) operations. Answer: A Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

44) One activity within the value chain is research and development. This activity can be identified as a A) firm infrastructure activity. B) human resources activity. C) technology activity. D) purchasing activity. Answer: C Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking


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45) Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Mary, who manages the carving process. Jane is the newest employee. She collects the coconuts. Joe takes calls from unhappy customers. Tom tosses finished coconuts into the sea, sending them to the wholesaler. Annie sends letters to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Jane performing? A) Inbound logistics B) Operations C) Outbound logistics D) Marketing and sales E) Service Answer: A Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Application of Knowledge

46) Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Mary, who manages the carving process. Jane is the newest employee. She collects the coconuts. Joe takes calls from unhappy customers. Tom tosses finished coconuts into the sea, sending them to the wholesaler. Annie sends letters to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Mary performing? A) Inbound logistics B) Operations C) Outbound logistics D) Marketing and sales E) Service Answer: B Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Application of Knowledge


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47) Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Mary, who manages the carving process. Jane is the newest employee. She collects the coconuts. Joe takes calls from unhappy customers. Tom tosses finished coconuts into the sea, sending them to the wholesaler. Annie sends letters to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Tom performing? A) Inbound logistics B) Operations C) Outbound logistics D) Marketing and sales E) Service Answer: C Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Application of Knowledge

48) Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Mary, who manages the carving process. Jane is the newest employee. She collects the coconuts. Joe takes calls from unhappy customers. Tom tosses finished coconuts into the sea, sending them to the wholesaler. Annie sends letters to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Annie performing? A) Inbound logistics B) Operations C) Outbound logistics D) Marketing and sales E) Service Answer: D Concept: Value chain Objective: Learning Objective 3 Difficulty: Easy AACSB: Application of Knowledge


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49) Clemente Santiago has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Mary, who manages the carving process. Jane is the newest employee. She collects the coconuts. Joe takes calls from unhappy customers. Tom tosses finished coconuts into the sea, sending them to the wholesaler. Annie sends letters to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay. Which of the following functions in the value chain is Joe performing? A) Inbound logistics B) Operations C) Outbound logistics D) Marketing and sales E) Service Answer: E Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Application of Knowledge

50) What is the purpose behind the five primary activities in the value chain? Answer: The goal of the five primary activities in the value chain is to facilitate the business in providing value to its customers. The five primary activities allow the business to create, market, and deliver its products and services to its customers, as well as providing postsale support. Concept: Value chain Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking

51) How can a well-designed AIS improve the efficiency and effectiveness of a company's value chain? Answer: The AIS can be designed to allow customers direct access to a company's inventory and sales order entry systems. This allows the customer to do more of the work that traditionally has been done by sales, marketing, and administration personnel. This allows for faster ordering, and cuts the company's labor costs. It may also have the effect of allowing the customer more control in a purchase transaction that may bring more satisfaction and value to the customer. Concept: The value of accounting information systems Objective: Learning Objective 3 Difficulty: Moderate AACSB: Reflective Thinking


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52) Discuss the components of a supply chain. Answer: The supply chain shows how an organization interacts with suppliers, distributors, and customers to provide value in the products it sells. The supply chain depicts the creation and sale of a product—the chain is somewhat different when a service is involved. The supply chain has five components: raw materials; manufacturer; distributor; retailer; and the consumer. Raw materials come from any number of suppliers, which in turn become part of a manufacturing process, which produces a product. The business then provides the product to distributors, who in turn sell the product to retail businesses. The product is ultimately purchased and used by consumers (who may be individuals or businesses). It is important to realize that AIS can greatly impact the traditional supply chain by creating a more efficient and timely environment in which a business can operate. More efficient operations are more effective, which in turn lowers costs, and add greater value and create improved customer satisfaction. Concept: Value chain Objective: Learning Objective 3 Difficulty: Easy AACSB: Analytical Thinking


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Accounting Information Systems, 14e (Romney/Steinbart) Chapter 2 Overview of Transaction Processing and Enterprise Resource Planning Systems

1 Describe the data processing cycle used to process transactions, including how data is input, stored, and processed and how information is output.

1) Which of the following commonly initiates the data input process? A) a business activity B) automatic batch processing C) an accounting department source document D) a trial balance query Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

2) A typical source document could be A) some type of paper document. B) a computer data entry screen. C) the company's financial statements. D) both A and B Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

3) Which of the following is not considered a source document? A) A copy of the company's financial statements. B) A copy of the company's shipping document. C) A copy of the company's sales journal. D) A copy of the company's ledger. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

Full file at https://testbankuniv.eu/Accounting-Information-Systems-14th-Edition-Romney-Test-Bank


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4) Which step below is not considered to be part of the data processing cycle? A) data input B) feedback from external sources C) data storage D) data processing Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

5) John Pablo 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 company's A) revenue cycle. B) expenditure cycle. C) financing cycle. D) production cycle. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

6) John Pablo 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 company's A) revenue cycle. B) expenditure cycle. C) financing cycle. D) production cycle. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking





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7) 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 firm's A) revenue cycle. B) expenditure cycle. C) financing cycle. D) production cycle. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

8) 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? A) purchases journal; expenditure cycle B) general journal; expenditure cycle C) general ledger; expenditure cycle D) cash disbursements journal; production cycle Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Challenging AACSB: Reflective Thinking

9) Making payments to 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? A) purchases journal; expenditure cycle B) general journal; expenditure cycle C) general ledger; expenditure cycle D) cash disbursements journal; expenditure cycle Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Challenging AACSB: Reflective Thinking

10) Describe the basic cycles and business activities for a typical merchandising company. Answer: Revenue cycle — deliver inventory to customers and collect cash. Expenditure cycle — receive goods and services from vendors and pay cash. Human resources cycle — track hours worked by employees and record withholding data. Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking





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11) Identify the four parts of the transaction processing cycle. A) data input, data storage, data processing, information output B) data input, data recall, data processing, information output C) data input, data recall, data transmission, information output D) data input, data recall, data transmission, data storage Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

12) What is the most frequent revenue cycle transaction? A) purchase of inventory B) receipt of cash C) sale to customer D) billing Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

13) The existence of relevant data guarantees the data are useful. Answer: FALSE Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

14) Identify the item below that is not one of the four different types of data processing activities. A) creating B) reading C) using D) deleting Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking





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15) What is the final step in the data processing cycle? A) output B) storage C) processing D) input Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

16) What is the first step in the data processing cycle? A) output B) storage C) processing D) input Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

17) The general ledger A) summarizes the information on the trial balance. B) is posted in total to the general journal. C) only includes balance sheet accounts. D) summarizes the transactions in journals. Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

18) 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? A) purchases journal; expenditure cycle B) general journal; expenditure cycle C) general ledger; expenditure cycle D) cash disbursements journal; production cycle Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking





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19) Data must be collected about three facets of each business activity. What are they? A) the business activity, the resources it affects, the people who participate B) the business activity, the transactions it creates, the impact on the financial statements C) the inputs, outputs and processes used D) who is involved, what was sold, how much was paid Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

20) Issuing a purchase order is part of which transaction cycle? A) the revenue cycle B) the expenditure cycle C) the human resources cycle D) the production cycle Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

21) The collection of employee time sheets is part of which transaction cycle? A) the revenue cycle B) the production cycle C) the human resources cycle D) the expenditure cycle Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

22) The collection of customer payment is part of which transaction cycle? A) the revenue cycle B) the production cycle C) the human resources cycle D) the expenditure cycle Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking





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23) Common source documents for the revenue cycle include all of the following exceptA) sales order. B) receiving report. C) delivery ticket. D) credit memo. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

24) Which of the following documents would be found in the expenditure cycle? A) delivery ticket B) time card C) credit memo D) purchase order Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

25) 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 A) turnaround documents. B) source documents. C) input documents. D) transaction documents. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

26) What is a turnaround document? Provide at least one example of a turnaround document. Answer: Turnaround documents are company output sent to an external party, who often adds data to the document, and then are returned to the company as an input document. Students answer may vary based on the examples they provide. Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking





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27) Which of the following is an example of source data automation? A) a utility bill B) POS (point-of-sale) scanners in retail stores C) a bill of lading D) a subsidiary ledger Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

28) Pre-numbering of shipping documents helps to verify that A) documents have been used in order. B) company policies were followed. C) all transactions have been recorded. D) source data automation was used to capture data. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

29) Source documents generally help to improve accuracy in transaction processing because A) they specify which information to collect. B) logically related data can be grouped in the same area of the document. C) they provide directions and steps for completing the form. D) All of the above are correct. Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

30) In transaction processing, generally which activity comes first? A) recording data in a journal B) posting items to special journals C) capturing data on source documents D) recording data in a general ledger Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking





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31) Which of the following statements is true? A) Batch processing ensures that stored information is always current. B) Batch input is more accurate than on-line data entry. C) On-line batch processing is a combination of real-time and batch processing. D) Batch processing is not frequently used. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

32) The data processing method used by FedEx to track packages is an example of A) real-time processing. B) batch processing. C) online batch processing. D) real-time batch processing. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

33) Street Smarts is a retailer located in Naperville, Illinois. During the peak tourist season, it has average daily cash and credit card sales in excess of $10,000. What is the best way for Street Smarts to ensure that sales data entry is efficient and accurate? A) well-designed paper forms B) source data automation C) turnaround documents D) sequentially numbered sales invoices Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking





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34) In Petaluma, California, electric power is provided to consumers by Pacific Power. Each month Pacific Power mails bills to 186,000 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? A) well-designed paper forms B) source data automation C) turnaround documents D) sequentially numbered bills Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

35) Build Smarts is a supplier of building materials to more than 150 builders in the state of Illinois. What is the best way for Build Smarts to ensure that all sales are recorded? A) well-designed paper forms B) source data automation C) turnaround documents D) sequentially numbered sales invoices Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

36) Data processing includes all of the following except A) verifying subsidiary ledger balances. B) changing customer addresses. C) removing inventory items no longer offered. D) adding the name of a new vendor. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking





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37) The Cape Fear Rocket Club heads out to the dunes of Cape Fear, Oregon 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 selling his products out of the backs of pickup trucks. What is the best way for this business to ensure that sales data entry is efficient and accurate? A) well-designed paper forms B) source data automation C) turnaround documents D) sequentially numbered forms Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

38) Which of the following statements about data processing methods is true? A) Online real-time processing does not store data in a temporary file. B) Batch processing cannot be used to update a master file. C) Control totals are used to verify accurate processing in both batch and online batch processing. D) Online real-time processing is only possible with source data automation. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Challenging AACSB: Reflective Thinking

39) What is the purpose of source documents? What controls are embedded in source documents? Give two examples of source documents. Answer: The primary purpose of source documents is to record data about business activities. Source documents standardize data collection procedures for an organization and provide better control and accuracy. Source documents are generally pre-numbered, which helps to verify that all transactions have been recorded and there is no missing document; if a document is missing, then which one(s) can be determined. Proper design of source documents ensures which information to collect, preprints standard information such as addresses, and provides directions for completing the form. Examples include: invoices, timecards, sales orders, and purchase orders. Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Reflective Thinking





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40) Describe the methods used to collect data about business activities. Describe design and control considerations for each of the data collection methods. Answer: Data about business activities can be collected with source documents, either on paper or electronic, turnaround documents, and source data automation.

Source documents define what data to collect about an activity, group logically related data close together, provide instructions on how to complete the document, include fields for approvals, and use preprinted standard data. Paper documents should be sequentially prenumbered to allow verification that all documents have been recorded. Electronic source documents should also utilize pull-down menus, drop-down boxes, default values, preformatting, auto sequential numbering, and prompting for complete data entry.

Turnaround documents often begin as output documents that are then sent to external users for further completion. Turnaround documents should utilize most of the same design and control considerations as source documents, but should include data in machine-readable form, such as bar codes or optical character recognition.

Source data automation utilizes technology to capture data in machine-readable form at the time and place the business activity occurs. Source data automation technology includes point-of-sale terminals, bar codes, RFID tags, and electronic data interchange. An especially important control consideration for source data automation is a way to indicate authorization of the activity. Concept: Transaction processing Objective: Learning Objective 2 Difficulty: Challenging AACSB: Reflective Thinking

41) Source data automation refers to A) using devices to capture transaction data in machine-readable form at the time the transaction is initiated. B) using the internet as the operating platform of an accounting information system. C) using an accounting information system to electronically bill customers. D) using an accounting information system to automate a previously manual transaction process. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking





13


42) What is the second step in the data processing cycle? A) Input. B) Output. C) Storage. D) Processing. Answer: D Concept: Transaction processing Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

43) A purchase requisition is a common source document used to facilitate which business activity? A) customer sale B) receipt of goods C) inventory purchase D) purchase request Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Challenging AACSB: Analytical Thinking

44) Identify the statement below that is not true with regards to the accounts receivable subsidiary ledger. A) Every credit sale is entered individually into the subsidiary ledger. B) Debits and credits in the subsidiary ledger must always equal. C) The subsidiary ledgers play an important role in maintaining the accuracy of the data stored in the AIS. D) The total of the subsidiary ledgers must equal the control account. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

45) Which of the following is not usually a consideration when designing a coding system? A) government coding regulations B) standardization C) future expansion needs D) ease of reporting Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking





14


46) Which of the following statements regarding special journals is not true? A) The balances in a special journal must always reconcile to the general ledger. B) Special journals are used to record large numbers of repetitive transactions. C) Special journals are periodically summarized and posted to the general ledger. D) Special journals provide a specialized format for recording similar transactions. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

47) A change in an employee's hourly pay would be recorded in A) the payroll master file. B) a payroll transaction file. C) the employee master file. D) the employee transaction file. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

48) When the sum of all entries in the subsidiary ledger equals the balance in the corresponding general ledger account, it is assumed that A) the recording processes were accurate. B) all source documents were recorded. C) adjusting entries are not required. D) no errors exist in the subsidiary ledger. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

49) The general ledger account that corresponds to a subsidiary ledger account is known as a(n) A) dependent account. B) control account. C) credit account. D) attribute account. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking





15


50) The type of journal that records large numbers of repetitive transactions such as sales, cash receipts, and cash disbursements is A) a general journal. B) a subsidiary journal. C) a specialized journal. D) a detailed transaction journal. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

51) Pre-numbered shipping documents and pre-numbered invoices are examples of A) sequence codes. B) block codes. C) group codes. D) mnemonic codes. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

52) A chart of accounts is an example of (select all that apply) A) sequence codes. B) block codes. C) group codes. D) mnemonic codes. Answer: B, C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

53) Product items are often coded with (select all that apply) A) sequence codes. B) block codes. C) group codes. D) mnemonic codes. Answer: C, D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking





16


54) Product code WSH500D08 is an example of A) sequence codes. B) block codes. C) group codes. D) mnemonic codes. Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

55) Identify the statement below that is false with regards to effective coding practices. A) Codes should allow for growth. B) Codes should be consistent with intended use. C) Codes should be customized for each division of an organization. D) Codes should be as simple as possible. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

56) All of the following are guidelines for developing a good coding system except A) be consistent with its intended use. B) be flexible to allow for growth. C) be as sophisticated as possible to promote usage. D) be consistent with the company's organization structure. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

57) To be effective, the chart of accounts must A) not use alpha-numeric characters. B) contain sufficient detail. C) utilize only one coding technique. D) begin with account 001. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking





17


58) The chart of accounts of a fast-food restaurant would probably include A) a list of vendors. B) a list of financial statement accounts. C) a list of customers. D) a list of employees. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

59) The efficiency of recording numerous business transactions can be best improved by the use of A) prenumbered source documents. B) specialized journals. C) posting references. D) subsidiary ledgers. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

60) A general journal A) would be used to record monthly depreciation entries. B) simplifies the process of recording large numbers of repetitive transactions. C) records all detailed data for any general ledger account that has individual sub-accounts. D) contains summary-level data for every account of the organization. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

61) The general ledger A) is used to record infrequent or non-routine transactions. B) simplifies the process of recording large numbers of repetitive transactions. C) records all detailed data for any general ledger account that has individual sub-accounts. D) contains summary-level data for every account of the organization. Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking





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62) A subsidiary ledger A) is used to record infrequent or non-routine transactions. B) simplifies the process of recording large numbers of repetitive transactions. C) records all detailed data for any general ledger account that has individual sub-accounts. D) contains summary-level data for every account of the organization. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

63) A specialized journal A) is used to record infrequent or non-routine transactions. B) simplifies the process of recording large numbers of repetitive transactions. C) records all detailed data for any general ledger account that has individual sub-accounts. D) contains summary-level data for every account of the organization. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

64) Which statement below is true with regards to an audit trail? A) An audit trail begins with the general journal. B) An audit trail provides the means to check the accuracy and validity of ledger postings. C) An audit trail is a summary of recorded transactions. D) An audit trail is automatically created in every computer-based information system. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

65) Which of the following statements about a master file is false? A) A master file is conceptually similar to a ledger in a manual AIS. B) A master file's individual records are rarely, if ever, changed. C) A master file exists across fiscal periods. D) A master file stores cumulative information. Answer: B Concept: Transaction processing Objective: Learning Objective 3 Difficulty: Moderate AACSB: Analytical Thinking





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66) Which of the following is conceptually similar to a journal in a manual AIS? A) database B) master file C) record D) transaction file Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

67) Catarina Boards is a skateboard retailer located in Pueblo, New Mexico. Catarina Boards is a sole proprietorship that stocks an inventory of between 30 and 50 different skateboards. Inventory is updated in real time by the AIS. If Catarina wishes to keep detailed information about the purchase price of each skateboard in a place outside of the general ledger, it might use a A) relational ledger. B) transaction file. C) master file. D) specific ledger. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Challenging AACSB: Reflective Thinking

68) Catarina Boards is a skateboard retailer located in Pueblo, New Mexico. Catarina Boards is a sole proprietorship that stocks an inventory of between 30 and 50 different skateboards. Inventory is updated in real time by the AIS. If Catarina wishes to keep a cumulative information about its company', it might use a A) relational ledger. B) transaction file. C) master file. D) specific ledger. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Challenging AACSB: Reflective Thinking





20


69) Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and condition are provided for each fan, along with many pictures of each fan. In Antia's database, the price of the Japanese fans is a(n) A) entity. B) attribute. C) field. D) record. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

70) Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and condition are provided for each fan, along with many pictures of each fan. In Antia's database, the data about each Japanese fan represents a(n) A) entity. B) attribute. C) field. D) record. Answer: D Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

71) Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and condition are provided for each fan, along with many pictures of each fan. In Antia's database, the Japanese fans (as a whole) represent a(n) A) entity. B) attribute. C) field. D) record. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking





21


72) Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and condition are provided for each fan, along with many pictures of each fan. In Antia's database, the data about each Japanese fan's price is stored in a(n) A) entity. B) attribute. C) field. D) record. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

73) Which of the following statement is true about master file? A) Individual master file records are permanent. B) Individual master file records may change frequently. C) Individual master file records are sometime being referred to as date value. D) Individual master file records are sometime being referred to as entity. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

74) The coding technique most likely used for sales orders is A) block code. B) group code. C) sequence code. D) data code. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

75) A specialized journal would be most likely to be used to enter A) sales transactions. B) monthly depreciation adjustments. C) annual closing entries. D) stock issuance transactions. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking





22


76) Changing a customer's credit limit would be recorded where? A) Customer master file. B) Customer transaction file. C) Special journal. D) Customer update file. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Challenging AACSB: Reflective Thinking

77) Which of the following statements is not correct? A) The audit trail is intended to verify the validity and accuracy of transaction recording. B) The audit trail consists of records stored sequentially in an audit file. C) The audit trail provides the means for locating and examining source documents. D) The audit trail is created with document numbers and posting references. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

78) Data about which of the following facets of a business activity is most likely to be recorded in a transaction file? A) business activity B) resources affected by the business activity C) people who participate in the business activity D) place the business activity occurs Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Challenging AACSB: Reflective Thinking

79) Data about all of the following facets of a business activity are most likely to be recorded in a master file except the A) business activity. B) resources affected by the business activity. C) people who participate in the business activity. D) place the business activity occurs. Answer: A Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Challenging AACSB: Reflective Thinking





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80) When printed on paper, data output is referred to as A) reports. B) hard copy. C) soft copy. D) financials. Answer: B Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

81) When displayed on a monitor, data output is referred to as A) reports. B) hard copy. C) soft copy. D) financials. Answer: C Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking

82) Describe an audit trail. Answer: An audit trail provides a means to check the accuracy and validity of postings to the ledger. The posting references and document numbers help provide the audit trail. An audit trail exists when company transactions can be traced through the AIS from where it originated to where they end up on the financial statements. Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

83) Explain how data is organized and stored in an AIS. Answer: The smallest unit of data is known as a data value. A data value is physically stored in a space called a field. Any number of fields can be grouped together to form a record. Related records are grouped together to form a file. Files are then combined to form a database. Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking





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84) Describe guidelines to follow for a well-designed coding system. Answer: First, the code should be consistent with its intended use. Second, the code should allow for growth in the number of items to be coded. The coding system should be as simple as possible. The coding system should be consistent with the company's organizational structure and it should be consistent across the different divisions of an organization. Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytical Thinking

85) Describe the relationship between the general and subsidiary ledgers. Answer: The general ledger contains summary-level information about every asset, liability, equity, revenue, and expense account in an organization. The balances in general ledger accounts form the starting point for preparation of financial statements and various other financial reports. A subsidiary ledger account provides support for any general ledger account for which individual subaccounts (for example, accounts receivable, accounts payable, inventory, and fixed assets) are required. The subsidiary ledger records and maintains the detail-level information by having a separate record for each customer, vendor, inventory item, or fixed asset. The sum of the subsidiary ledger balances should equal the balance in the general ledger account. A general ledger account that corresponds to a subsidiary ledger account is known as a control account. Concept: Transaction processing Objective: Learning Objective 1 Difficulty: Moderate AACSB: Reflective Thinking

2 Discuss how organizations use enterprise resource planning (ERP) systems to process transactions and provide information

1) Which statement below regarding the AIS is false?A) The AIS must be able to provide managers with detailed and operational information about the organization's performance. B) Both traditional financial measures and operational data are required for proper and complete evaluation of performance. C) The AIS was often just one of the information systems used by an organization to collect and process financial and nonfinancial data. 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. Answer: D Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Reflective Thinking





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2) 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 A) internal financial information. B) internal nonfinancial information. C) external financial information. D) external nonfinancial information. Answer: B Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Reflective Thinking

3) Traditionally, accounting information systems have been used to collect, process, store and report non-financial information. Answer: FALSE Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

4) The existence of multiple systems which provide information can result in all of the following except A) redundancies. B) discrepancies. C) integration issues. D) efficiency. Answer: D Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Challenging AACSB: Analytical Thinking

5) A properly configured enterprise resource planning (ERP) system uses a decentralized database to share information across business processes and coordinate activities. Answer: FALSE Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytical Thinking





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6) Which of the following is an example of an ERP system? 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. 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. 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. D) Doug is a freelance photographer. He keeps records of all expenses and revenues on his cell phone and then e-mails them to himself every month. The files are stored on his personal computer and backed up to CD quarterly. Answer: C Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Reflective Thinking

7) Which of the following is an example of an ERP system? A) Sam uses a computerized information system to keep track of all the financial data generated by her restaurant. B) Jim has a system that keeps track of the cash receipts and cash disbursements of his mowing business. At the end of each month, the system helps him to prepare a monthly profit and loss statement. C) Jane is a freelance photographer. She keeps records of all expenses and revenues on her cell phone app and the files are uploaded to the cloud on a regular basis.. D) Claire keeps records of all her business records in an Excel file. Each week she enters all of the data into a system that automatically generates purchase orders, based on predetermined inventory reorder points. Production quotas for the coming week are also automatically generated based on customer orders. Answer: D Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Reflective Thinking

8) In an ERP system, the module used to record data about transactions in the revenue cycle is called A) order to cash. B) purchase to pay. C) financial. D) customer relationship management. Answer: A Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking





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9) Implementation of an ERP system requires increased focus on all except which of the following controls? A) segregation of duties between custody, authorization, and recording B) data entry controls on validity and accuracy C) controls over access to data D) appropriate disposal of hard copy reports Answer: D Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

10) Implementation of an ERP system requires effective segregation of responsibility for A) recording, risk assessment, and control procedures. B) authorization, monitoring, and risk assessment. C) recording and monitoring of organizational assets. D) authorization, recording, and custody of organizational assets. Answer: D Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking





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11) Describe four advantages and four disadvantages of implementing an ERP system at a multinational corporation. Answer: Advantages Integrating information breaks down barriers between departments and streamlines the flow of information. Data input is captured or keyed only once. Management gains greater visibility into every area of the enterprise and has improved monitoring capabilities. Better access control is established by consolidating multiple permissions and security models into a single data access structure. Standardization of procedures and reports across business units. Customer service improves as employees can quickly access data. Increased productivity of employees.

Disadvantages ERP systems are very costly. Implementation is time consuming. Changes to business processes are sometimes required, in order to minimize the customization needed. Complexity of the system. Employees may be resistant to implement and use an ERP system and change business processes. Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Easy AACSB: Information Technology

12) ERP stands for A) enterprise resource planning. B) enterprise resource program. C) enterprise reporting program. D) none of the above Answer: A Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking





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13) In an ERP system, the module used to record data about transactions in the disbursement cycle is called A) order to cash. B) purchase to pay. C) financial. D) customer relationship management. Answer: B Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

14) In an ERP system, the module used to record data about transactions in the production cycle is called A) order to cash. B) purchase to pay. C) manufacturing. D) logistics. Answer: C Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

15) In an ERP system, the module used to record marketing data is called A) marketing. B) advertising. C) customer relationship management. D) customer service. Answer: C Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

16) All of the following are disadvantages of an ERP system except A) an ERP provides an integrated view of the organization's data. B) ERP software and hardware can cost midsized companies between $10 million and $20 million dollars. C) ERPs frequently cause organizations to change their business processes to standardized ones. D) ERPs are relatively complex. Answer: A Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 5 Difficulty: Moderate AACSB: Analytical Thinking





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17) All of the following are advantages of an ERP system except A) in an ERP, data input is captured or keyed once. B) ERPs permit management to gain greater visibility into every area of the enterprise. C) it takes considerable experience and training to use an ERP system effectively. D) ERPs permit manufacturing plants to receive new orders in real time. Answer: C Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Analytical Thinking

18) All of the following are reasons that implementing a new ERP may fail except A) employees may resist using the ERP system. B) ERPs can take years to fully implement. C) employees may refuse to share sensitive information with different departments. D) ERPs may require procedures and reports to be standardized across business units. Answer: D Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Challenging AACSB: Analytical Thinking

19) It is relatively easy to train employees to learn how to use an ERP system. Answer: FALSE Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Easy AACSB: Analytical Thinking

20) All of the following are ERP vendors except A) Dell. B) SAP. C) Oracle. D) Microsoft. Answer: A Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Challenging AACSB: Analytical Thinking





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21) One way ERP vendors help to make the configuration process easier for their customers is to A) encourage their customers to use decentralized databases. B) train their customers to use an existing system and build interfaces between it and their ERP system. C) develop built-in configuration tools to address most of their customers' needs for system changes. D) All of the above. Answer: C Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Challenging AACSB: Reflective Thinking

22) An ERP system might facilitate the purchase of direct materials by all of the following except A) selecting the best supplier by comparing bids. B) preparing a purchase order when inventory falls to reorder point. C) routing a purchase order to a purchasing agent for approval. D) communicating a purchase order to a supplier. Answer: A Concept: Enterprise resource planning (ERP) systems Objective: Learning Objective 2 Difficulty: Moderate AACSB: Reflective Thinking





1


Accounting Information Systems, 13e (Romney/Steinbart)

Chapter 3 Systems Documentation Techniques

3.1 Prepare and use data flow diagrams to understand, evaluate, and document information

systems.

1) Graphical representations of information are often supplemented by

A) narrative descriptions.

B) relevant e-mail communications.

C) logic charts.

D) oral descriptions from management.

Answer: A

Objective: Learning Objective 1

Difficulty: Easy

AACSB: Analytic

2) All of the following are guidelines for preparing data flow diagrams except

A) show the most detail in the highest-level DFD.

B) include all storage files, even if they are only temporary.

C) uniquely name all data flows.

D) sequentially number process bubbles.

Answer: A


Difficulty: Moderate

AACSB: Analytic

3) The Sarbanes-Oxley Act requires independent auditors to

A) create flowcharts to document business processes.

B) understand a client's system of internal controls.

C) establish effective internal controls.

D) prepare and understand all types of system documentation.

Answer: B



AACSB: Analytic

4) The passage of the Sarbanes Oxley Act

A) made documentation skills even more important.

B) requires public companies to prepare an annual internal control report.

C) mandates that auditors must be able to prepare, evaluate and read documentation tools such as

flowcharts.

D) all of the above

Answer: D


Difficulty: Easy

AACSB: Analytic

2


5) Which of the following is not a true statement?

A) Documentation tools save an organization both time and money.

B) Documentation tools are used extensively in the systems development process.

C) Data flow diagrams and flowcharts are the two most frequently used systems development

documentation tools.

D) fgrams and flowcharts are difficult to prepare and revise using software packages.

Answer: D


Difficulty: Easy

AACSB: Analytic

6) A data flow diagram

A) is a graphical description of the source and destination of data that shows how data flow

within an organization.

B) is a graphical description of the flow of documents and information between departments or

areas of responsibility.

C) is a graphical description of the relationship among the input, processing, and output in an

information system.

D) is a graphical description of the sequence of logical operations that a computer performs as it

executes a program.

Answer: A


Difficulty: Easy

AACSB: Analytic

7) In a DFD, a "data sink" is also known as a

A) data store.

B) transformation process.

C) data flow.

D) data destination.

Answer: D


Difficulty: Easy

AACSB: Analytic

8) In preparing a DFD, when data are transformed through a process, the symbol used should be

A) a circle.

B) an arrow.

C) a square.

D) two horizontal lines.

Answer: A


Difficulty: Easy

AACSB: Analytic

3


9) In general, a data destination will be shown by

A) an arrow pointing away.

B) an arrow pointing in.

C) arrows pointing both ways.

D) no arrows, only two horizontal lines.

Answer: B


Difficulty: Easy

AACSB: Analytic

10) In a data flow diagram of the customer payment process, "update receivables" will appear

above or in

A) a square.

B) a circle.

C) two horizontal lines.

D) none of the above

Answer: B


Difficulty: Easy

AACSB: Analytic

11) In a data flow diagram of the customer payment process, "Customer" will appear above or in

A) a square.

B) a circle.



Answer: A


Difficulty: Easy

AACSB: Analytic

12) In a data flow diagram of the customer payment process, "Customer payment" will appear

above or in

A) a square.

B) a circle.


D) an arrow.

Answer: D


Difficulty: Easy

AACSB: Analytic

4


13) Most processes on a DFD can be identified by

A) data in-flows only.

B) data out-flows only.

C) data flows both into or out of a process.

D) always being followed by a data store.

Answer: C


Difficulty: Easy

AACSB: Analytic

14) More than one arrow is needed between symbols on a DFD if

A) data elements always flow together.

B) data elements flow at different times.

C) data elements flow to different locations.

D) there is no guideline on use of single or multiple arrows.

Answer: B


Difficulty: Easy

AACSB: Analytic

15) A DFD created at the highest-level or summary view is referred to as a

A) process diagram.

B) overview diagram.

C) content diagram.

D) context diagram.

Answer: D


Difficulty: Easy

AACSB: Analytic

16) In a payroll processing DFD, the "prepare reports" activity will be represented by ________,

the "employee payroll file" will be represented by ________, and the "management" will be

represented by ________.

A) a circle; two horizontal lines; a square

B) a circle; two horizontal lines; two horizontal lines

C) a rectangle; a square; a circle

D) a square; two horizontal lines; a circle

Answer: A



AACSB: Analytic

5


17) The American Bread Company is a small restaurant that collects, stores, prepares and

provides meals to customers in Miami, Florida. When food is received, it is recorded in a

database and a receiving ticket is provided to the vendor. When food is used, the database is

updated so that it always reflects the amount and type of food available to customers. In a data

flow diagram, which type of symbol would be used to represent vendors?

A)

B)

C)

D)

Answer: A


Difficulty: Easy

AACSB: Analytic





flow diagram, which type of symbol would be used to represent the system processing food

received from the vendor?

A)

B)

C)

D)

Answer: B


Difficulty: Easy

AACSB: Analytic

6






flow diagram, which type of symbol would be used to represent the storage location of data in

the system?

A)

B)

C)

D)

Answer: D


Difficulty: Easy

AACSB: Analytic





flow diagram, which type of symbol would be used to represent the process of updating the

company's inventory records in the system?

A)

B)

C)

D)

Answer: B


Difficulty: Easy

AACSB: Analytic

7






flow diagram, which type of symbol would be used to represent the flow of data provided by the

vendors into the system?

A)

B)

C)

D)

Answer: C


Difficulty: Easy

AACSB: Analytic

22) Terrell and Monique Anderson run an antique store in their hometown of Dayton, Ohio. To

find items to sell in their shop, they travel around the United States and Europe buying unique

artifacts. Within an hour of making a purchase, they use their smartphone to take a picture of the

item and post a short tweet about the item on Twitter. Then, they ship the item back to Dayton

for sale in their shop. Which symbol should be used to represent Twitter in a context diagram of

this process?

A)

B)

C)

D)

Answer: A



AACSB: Analytic

8





item and post a short tweet about the item on Twitter. Which symbol should be used to represent

the preparation of data for their tweet in a context diagram of this process?

A)

B)

C)

D)

Answer: B



AACSB: Analytic





the transfer of data to Twitter in a context diagram of this process?

A)

B)

C)

D)

Answer: C


Difficulty: Easy

AACSB: Analytic

9






the remote server that stores the tweets (i.e., the Twitter posts) data?

A)

B)

C)

D)

Answer: D


Difficulty: Easy

AACSB: Analytic

26) Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He

has been asked to document the existing accounting information system, and focus on the

activities and flow of data between activities. He decides to begin with a summary description of

the sources and uses of data in the organization and how they are processed by the system. The

documentation tool that he should employ for this purpose is a

A) data flow diagram.

B) document flowchart.

C) system flowchart.

D) program flowchart.

Answer: A



AACSB: Reflective Thinking

27) A well-planned and drawn level 0 data flow diagram for the expenditure cycle would show

which of the following processes?

A) 1.0 Order Goods; 2.0 Receive and Store Goods; 3.0 Pay for Goods

B) 1.0 Order Goods; 1.1 Receive and Store Goods; 1.2 Pay for Goods

C) 0.1 Order Goods; 0.2 Receive and Store Goods; 0.3 Pay for Goods

D) 0.1 Order Goods; 0.12 Receive and Store Goods; 0.13 Pay for Goods

Answer: A




10


28) A well-planned and drawn context data flow diagram will include how many processes?

A) one

B) between 5 and 7

C) between 2 and 7, but no more than 7

D) as many as are needed to accurately depict the process being documented

Answer: A



AACSB: Analytic

29) Data flow diagrams depict

A) processes, but not who is performing the processes.

B) processes, but not the data that flows between processes.

C) who is performing processes, but not how they perform the process.

D) who is performing processes, but not the data that flows between processes.

Answer: A


Difficulty: Difficult


11


30) Which is the correct label for the blank transformation process circle in the data flow

diagram below?

A) 1.2 Check Credit

B) 1.2 Enter Order in Sales Journal

C) 1.2 Does Customer Have Credit?

D) 1.2 Salesperson Approves

Answer: A



AACSB: Analytic

12


31) In the data flow diagram below, inventory is a

A) data store.

B) data source.

C) data flow.

D) data source and destination.

Answer: A



AACSB: Analytic

32) Discuss the ways in which information professionals interact with documentation tools and

the various levels of understanding necessary.

Answer: At a minimum, a professional should be able to read documentation. A professional

may also be called upon to evaluate internal control system documentation in order to identify

control strengths and weaknesses or recommend improvements. A professional may be engaged

to prepare documentation, which requires the greatest amount of skill and understanding of a

particular system.



AACSB: Analytic

13


33) Explain two reasons why it is important to have a working knowledge of DFDs and

flowcharting.

Answer: First, SOX requires auditors to evaluate internal control systems. Data flow diagrams

and flowcharts are the two most frequently used development and documentation tools used in

practice. Second, since systems development is extremely complex, DFDs and flowcharts are

tools that are used to create order from chaos and complexity. Third, documentation tools and

concepts are covered on the CPA exam.



AACSB: Analytic

34) What does the Sarbanes-Oxley Act require that is relevant to documentation tools?

Answer: The Sarbanes-Oxley Act requires that independent auditors understand the automated

and manual procedures an entity uses. One of the best ways to gain this understanding is to use

the flowcharts to document the internal control system, as weaknesses and strengths are more

easily spotted from such graphic portrayals.


Difficulty: Easy

AACSB: Analytic

35) Describe a situation in which data flow should be shown with two data flow lines instead of

one.

Answer: A data flow may consist of one or more pieces of datum. The determining factor is

whether the data elements always flow together at the same time. For example, "customer

payment" have both payment and remittance data. Since these elements always flow together,

only one data flow line is required. However, data flows between the customer and the payment

processes have customer inquiries and cash receipts; these data items do not always flow

together at the same time. In such a case, two data flow lines will be shown.




36) Describe the different levels of DFDs.

Answer: The highest-level or summary view DFD, which shows major inputs/outputs and a

single process is called a context diagram. The DFD itself shows inputs, major processes, and

outputs; each process in the DFD can be "exploded" or shown in greater level of detail with the

sub-processes and related data flows.



AACSB: Analytic

14


37) How is a DFD different from a flowchart?

Answer: The purpose of a DFD is to diagram the origins, flow, transformation, storage, and

destination of data. The purpose a flowchart is to present a graphical description of the flow of

documents, relationships among input, processing, and output, or the sequence of logical

operations in an information system or program. A DFD is limited to basic symbols and lines,

and focuses on the flow and use of data. A flowchart will generally be more complex, and more

focused on the managerial, AIS, or IS aspects of the organization.




38) Explain the relevance of the Sarbanes Oxley Act to the documentation tools presented in this

chapter.

Answer: The Sarbanes Oxley Act of 2002 requires executives of public companies to document

and evaluate internal controls. External auditors must evaluate management's assessment of

internal control and attest to its accuracy. Therefore, company executives and the auditors must

document and test the internal controls — documentation tools, such as flowcharts, are used to

do this.


Difficulty: Easy

AACSB: Analytic

39) Discuss the idea of a data flow.

Answer: A data flow is a graphic representation of the flow of data between processes, data

stores, and data sources and destinations. A data flow is really a form of communication. When

the analyst draws a curved or straight line with an arrow at one end, what is represented is a form

of communication among the other elements of the data flow process. Consider for example a

data source being depicted by a box. The box represents a data source. Data then is sent from the

source to a circle, which represents a transformation process. The source of data sends the flow

to the transformation process, which will process the data and somehow use the data or turn it

into useful information. Note that data flows can represent one or more pieces of datum. Because

data flows may have more than one data element, the analyst must determine whether to show

one or more lines. Good DFDs and data flow lines in such diagrams eliminate the need for users

and analysts to "infer" what type of information is flowing.



AACSB: Analytic

15


40) What is the value of using a context diagram when working with DFDs?

Answer: In order to create a useful DFD, the analyst must determine system boundaries—what

is to be included or excluded from the system. A context diagram will help to achieve this goal,

since it is a good way to depict the boundaries of the system. The analyst first creates a context

diagram by placing a circle in the middle of the diagram. The circle represents the system under

consideration. On either side of the circle, boxes are created which represent outside entities the

system interacts with directly. Data flow lines are drawn to show the direction of the flow of

data. After this pictorial representation has been completed, the analyst can then better assess the

boundaries of the system and amount of interaction between the system and outside entities.




41) Identify five important guidelines for drawing a DFD. Select one from your list and describe

why it could be the most important one to consider when preparing a DFD. Support your choice

with an example.

Answer: Understand the system. Ignore certain aspects of the system (such as control processes

and control actions). Determine system boundaries. Develop a context diagram. Identify data

flows. Group data flows. Identify transformation processes. Group transformation processes.

Identify all files or data stores. Identify all data sources and destinations. All DFD elements are

named. Subdivide the DFD. Give each process a sequential number. Repeat the process. Prepare

a final copy. (Student answers will vary depending on the items chosen and the quality of their

argument. The text provides various items that could be used to answer this question.)




16


42) Following is a context diagram for a current Payroll Processing System. a) Identify the data

sources and destinations, data flows, and transformation process marked by question marks. b)

What would you need to do to explode this diagram?

Answer: 1 - Human resources, 2 - Time cards, 3 - Payroll processing system, 4 - Employee

paychecks or pay-stubs, 5- Payroll report, 6 - Government agencies, 7- Banks. To explode this

diagram, additional information is needed to identify detailed procedures within the payroll

processing activity as well as additional inputs and outputs. It would be useful to obtain a

comprehensive narrative of the payroll processing procedures for review and identification of

these items. If there is no narrative available, interviews are another source of information.




43) True or False: The Sarbanes-Oxley Act requires auditors to create flowcharts to document

business processes.

Answer: FALSE




17


44) In the data flow diagram below, Shipping is a

A) data store.

B) data flow.

C) data source.

D) data destination.

Answer: D



AACSB: Analytic

18


45) In the data flow diagram below, which process happens first?

A) Respond to customer inquiries

B) Take order

C) Check inventory availability

D) Approve order

Answer: B



AACSB: Analytic

19


46) True or False: In the data flow diagram below, a customer order must be approved before

the company checks to make sure the inventory is available.

Answer: FALSE



AACSB: Analytic

47) In a data flow diagram of the vendor payment process, what symbol would most

appropriately reflect an update of the payables account?

A) a square

B) a circle

C) two horizontal lines


Answer: B


Difficulty: Easy

AACSB: Analytic

20


48) In a data flow diagram of the vendor payment process, "Vendor" will appear above or in

A) a square.

B) a circle.



Answer: A


Difficulty: Easy

AACSB: Analytic

49) In a data flow diagram, an inverted triangle represents

A) an internal control.

B) document filing.

C) on page connection.

D) document processing.

Answer: A


Difficulty: Easy

AACSB: Analytic

50) In a data flow diagram that depicts a company's internal controls, where is each internal

control typically explained in detail?

A) in an annotation on the same page as the internal control

B) inside the symbol used to represent the internal control

C) on a table that accompanies the internal control data flow diagram

D) Internal controls are not typically explained in detail in an internal control data flow diagram.

Answer: C



AACSB: Analytic

51) Which documentation technique would not depict the type of storage medium used (such as

a flash drive or a hard drive) to physically store data?

A) system flowchart

B) data flow diagram

C) business process diagram

D) internal control flowchart

Answer: B



AACSB: Analytic

21


52) In a data flow diagram of the order shipping process, what symbol would most appropriately

denote a "Bill of Lading" used in the process?

A) a square

B) a circle

C) two horizontal lines

D) an arrow

Answer: D


Difficulty: Easy

AACSB: Analytic

22


3.2 Prepare and use flow diagrams to understand, evaluate, and document information systems.

1) The correct label for Shape 1 in the flowchart below is

A) Purchase Order 3

B) Purchase Requisition 1

C) Accounts Payable Trial Balance

D) Purchase Order 2

Answer: D


Difficulty: Easy

AACSB: Analytic

23



A) 1

B) Purchase Requisition 1

C) Receiving Report 1

D) 2

Answer: A


Difficulty: Easy

AACSB: Analytic

24



A) Purchase Order 1.

B) Purchase Requisition 1.

C) Receiving Report 1.

D) 4.

Answer: B



AACSB: Analytic

25


4) The correct shape for the triangle labeled "Supplier" in the flowchart below should be a

A) magnetic disk.

B) terminal.

C) manual process.

D) off-page connector.

Answer: B



AACSB: Analytic

26


5) When preparing a document flowchart, the names of organizational departments or job

functions should appear in the

A) column headings.

B) right-hand margin.

C) written narrative accompanying the flowchart.

D) title of the flowchart.

Answer: A


Difficulty: Easy

AACSB: Analytic

6) Flowchart symbols

A) are divided into four categories.

B) are unique to the organization creating the flowchart.

C) are normally drawn using a flowcharting template.

D) eliminate the need for narrative descriptions or explanations.

Answer: A


Difficulty: Easy

AACSB: Analytic

7) Which is a true statement regarding the use of the manual processing symbol in a flowchart?

A) If a document is moved from one column to another, show the document only in the last

column.

B) Each manual processing symbol should have an input and an output.

C) Do not connect two documents when moving from one column to another.

D) Use a manual processing symbol to indicate a document being filed.

Answer: B


Difficulty: Easy

AACSB: Analytic

8) Which is a true statement regarding a document flowchart?

A) A document flowchart illustrates the sequence of logical operations performed by a computer.

B) A document flowchart is particularly useful in analyzing the adequacy of internal control

procedures.

C) A document flowchart is more useful than a data flow diagram.

D) A document flowchart is not normally used in evaluating internal control procedures.

Answer: B


Difficulty: Easy

AACSB: Analytic

27


Use the chart below to answer the following questions regarding flow chart symbols.

9) Which symbol would be used in a flowchart to represent a computer process?

A) #1

B) #2

C) #5

D) #15

Answer: C


Difficulty: Easy

AACSB: Analytic

10) Which symbol would be used in a flowchart to represent a decision?

A) #10

B) #16

C) #9

D) #6

Answer: A


Difficulty: Easy

AACSB: Analytic

11) Which symbol would be used in a flowchart to represent an invoice sent to a customer?

A) #2

B) #6

C) #1

D) #15

Answer: C


Difficulty: Easy

AACSB: Analytic

28


12) Which symbol would be used in a flowchart to represent a general ledger?

A) #2

B) #1

C) #3

D) #5

Answer: A


Difficulty: Easy

AACSB: Analytic

13) Which symbol would be used in a flowchart to represent a manual process?

A) #5

B) #6

C) #10

D) #11

Answer: B


Difficulty: Easy

AACSB: Analytic

14) Which symbol would be used in a flowchart to represent a connection to another part of the

flowchart on the same page?

A) #4

B) #13

C) #14

D) #15

Answer: C


Difficulty: Easy

AACSB: Analytic

15) Which symbol would be used in a flowchart to represent a connection to another part of the

flowchart on a different page?

A) #4

B) #13

C) #14

D) #15

Answer: D


Difficulty: Easy

AACSB: Analytic

29


16) Which symbol would be used in a flowchart to represent a file of paper documents?

A) #7

B) #8

C) #9

D) #15

Answer: C


Difficulty: Easy

AACSB: Analytic

17) Which symbol would be used in a flowchart to represent a general ledger master file kept on

magnetic disk?

A) #2

B) #5

C) #7

D) #8

Answer: C


Difficulty: Easy

AACSB: Analytic

18) Which symbol would be used in a flowchart to represent employee time cards sent by

department managers to the payroll department?

A) #1

B) #4

C) #11

D) #16

Answer: A


Difficulty: Easy

AACSB: Analytic

19) Which symbol would be used in a flowchart to represent the display of a report on a

computer screen?

A) #1

B) #2

C) #3

D) #11

Answer: C


Difficulty: Easy

AACSB: Analytic

30


20) Which symbol would be used in a flowchart to represent the addition of information about a

step represented in another symbol on the flowchart?

A) #1

B) #5

C) #11

D) #15

Answer: C


Difficulty: Easy

AACSB: Analytic

21) Which symbol would be used in a flowchart to represent a payroll master file kept on

magnetic tape?

A) #4

B) #7

C) #8

D) #9

Answer: C


Difficulty: Easy

AACSB: Analytic

22) Which symbol would be used in a flowchart to represent a beginning, an ending, or a

connection to another procedure?

A) #9

B) #14

C) #15

D) #16

Answer: D



AACSB: Analytic

23) Which symbol would be used in a flowchart to represent a flow of data or documents?

A) #12

B) #13

C) #14

D) #15

Answer: A


Difficulty: Easy

AACSB: Analytic

31


24) Which symbol would be used in a flowchart to represent a communication link?

A) #12

B) #13

C) #14

D) #15

Answer: B


Difficulty: Easy

AACSB: Analytic

25) In a document flowchart of a manual payroll processing system, "update customer file" will

be shown by a(n) ________ symbol, and "prepare vendor check" will be shown by a(n)

________ symbol.

A) input; output

B) input; manual operation

C) manual operation; output

D) manual operation; manual operation

Answer: D


Difficulty: Easy

AACSB: Analytic

26) A flowchart that depicts the relationships among the input, processing, and output of an AIS

is

A) an internal control flowchart.

B) a document flowchart.

C) a system flowchart.

D) a program flowchart.

Answer: C


Difficulty: Easy

AACSB: Analytic

27) In a program flowchart, branching to alternative paths is represented by

A) a terminal.

B) data/information flow.

C) computer operation.

D) decision diamond.

Answer: D


Difficulty: Easy

AACSB: Analytic

32


28) Nishant Kumar has been hired by American Manufacturing as a staff accountant in the

internal audit department. He has been asked to thoroughly document the existing accounting

information system in preparation for making recommendations for improvements to internal

controls. He decides to begin with a description of the information stored in paper records, their

sources, and their destinations. The documentation tool that he should employ for this purpose is

a





Answer: B






information system in preparation for making recommendations for improvements. He decides to

begin by meeting with the information technology staff in order to develop an understanding of

the computer programs used by the system. The documentation tool that he should employ for

this purpose is a





Answer: D


Difficulty: Easy




information system in preparation for making recommendations for improvements. He decides to

begin by meeting with the information technology staff in order to develop an understanding of

the overall operation of the AIS, including data entry, storage, and output. The documentation

tool that he should employ for this purpose is a





Answer: C




33


31) A materials requisition order document is prepared from the inventory file and the materials

file, both of which are stored on a hard drive. Which one of the following diagrams represents

this activity?

A)

B)

C)

D)

Answer: D




34


32) A customer's check is returned for insufficient funds and the accounts receivable file, stored

on a hard drive, is updated. Which one of the following diagrams represents this activity?

A)

B)

C)

D)

Answer: C




35


33) A business simulation game that is used by colleges and universities all over the world has

students submit decisions over the Internet. Decisions are stored online, processed on the server,

and then the results are stored online. They are then downloaded by students in preparation for

the next round. Which one of the following diagrams represents this activity?

A)

B)

C)

D)

Answer: C




36


34) A report is generated from data stored on a hard drive. Which one of the following diagrams

represents this activity?

A)

B)

C)

D)

Answer: C




35) An employee receives a paycheck prepared in the payroll process. Which one of the

following diagrams represents this activity?

A)

B)

C)

D)

Answer: B




37


36) A student manually prepares a homework assignment and then turns it in to her teacher.

Which one of the following diagrams represents this activity?

A)

B)

C)

D)

Answer: A




37) Which of the following is not true about program flowcharts?

A) Program flowcharts are a high-level overview of all business processes.

B) Program flowcharts document the processing logic of computer programs.

C) A program flowchart will exist for every computer process symbol on a system flowchart.

D) Program flowcharts increase computer programmer productivity.

Answer: A




38) Describe a system flowchart. Describe a program flowchart. How are the two interrelated?

Answer: Systems flowcharts depict the relationships among the input, processing, and output of

an AIS. The program flowchart illustrates the sequence of logical operations performed by a

computer in executing a program. System flowcharts identify processing areas but do not show

how the processing is done. The detailed logic used by the computer to perform the processing is

shown on a separate program flowchart.




38


39) Identify five important guidelines for drawing a flowchart. Select one from your list and

describe why it could be the most important one to consider when preparing a flowchart. Support

your choice with an example.

Answer: Use interviews, questionnaires, or narrative descriptions to understand the system

before flowcharting it. Identify the different entities to be flowcharted such as departments, job

functions, or external parties. Also identify documents and information flows along with the

activities or processes performed on the data. Organize the flowchart using columns when

several entities are involved in the process. Focus on the normal operations and include all

relevant procedures and processes. Flowcharts should flow from top to bottom and from left to

right. The origin and disposition of documents should be clearly identified by a clear beginning

and end in the flowcharts. Use standard flowchart symbols. Multiple documents should be

identified by numbers shown in the top right-hand corner of the document symbol. Documents

do not directly connect with each other, except when moving from one column to another. Use

on-page and off-page connectors to organize flowcharts. Use arrowheads to direct the flow of

documents. Clearly label the pages, such as 1 of 3, 2 of 3, and 3 of 3. Documents or reports

should be first shown in the column in which they originate and then moved to other columns.

Use computer processing symbols to show movement of data in and out of the computer system.

Filing operations can be directly shown with one line, no manual processing symbol required.

Flowcharting is an iterative process. The first attempt should be a rough draft that is refined with

each successive pass. Do not clutter flowcharts; redesign the flowchart as necessary. Review the

flowchart for accuracy. On the final copy of the flowchart, the name of the flowchart, date, and

the preparer's name should be shown. (Student answers will vary depending on the items chosen

and the quality of their argument. The text provides various items that could be used to answer

this question.)



AACSB: Analytic

39


40) Identify the mistake(s) in each flowchart segment.

Answer:

a. Figure a - the sort symbol should be a manual operation symbol.

b. Figure b - the file update symbol should be a computer operation symbol, and the arrow from

transaction file should flow into file update.

c. Figure c - the arrows should point from left to right and a computer operation symbol is

needed between the source data and the master file symbols.

d. Figure d - the symbol for Endorsed should be a manual operation symbol, and endorsed

checks are sent to the bank, so the file symbol should be replaced with a terminal symbol.




40


Use the chart below to answer the following questions regarding flow chart symbols.

41) Which symbol would be used in a flowchart to represent the symbol for a file?

A) #9

B) #5

C) #6

D) #11

Answer: A


Difficulty: Easy

AACSB: Analytic

42) Which symbol would be used in a flowchart to represent manually prepared control totals?

A) #9

B) #8

C) #4

D) #7

Answer: C


Difficulty: Easy

AACSB: Analytic

43) Which symbol would be used in a flowchart to represent a customer sales order?

A) #2

B) #1

C) #5

D) #15

Answer: B


Difficulty: Easy

AACSB: Analytic

41


44) Which symbol would be used in a flowchart to note that every sales order contains the

customer name, address, product number, quantity ordered, item cost, and credit terms?

A) #5

B) #8

C) #11

D) #16

Answer: C


Difficulty: Easy

AACSB: Analytic

45) Which symbol would be used in a flowchart to indicate a wireless connection between a

laptop and the mainframe?

A) #13

B) #12

C) #11

D) #14

Answer: A


Difficulty: Easy

AACSB: Analytic

46) Which symbol would be used in a flowchart to indicate flight information was displayed to

customers via a large electronic screen in the airport terminal?

A) #1

B) #2

C) #3

D) #4

Answer: C


Difficulty: Easy

AACSB: Analytic

47) Which symbol would be used in a flowchart to indicate the process started with the Human

Resources department?

A) #1

B) #10

C) #12

D) #16

Answer: D


Difficulty: Easy

AACSB: Analytic

42


48) Carly Jackson is a staff auditor for KPMG. She has been asked to document the client's

existing accounting information system so the engagement team can assess the client's adequacy

of controls around financial reporting. She decides to begin by creating a flowchart to describe,

analyze, and evaluate internal controls. What documentation tool should she use for this

purpose?

A) internal control flowchart

B) document flowchart

C) system flowchart

D) dataflow diagram

Answer: A




49) Carly Jackson is a staff auditor for KPMG. She has been asked to document the client's

existing accounting information system so the engagement team can assess the client's adequacy

of controls around financial reporting. She decides to begin by examining the client's key

software applications, examining a flowchart that illustrates the sequence of logical operations

performed by the system in executing the application. To do this, Carly should ask the client for

what type of flowchart?

A) internal control flowchart

B) document flowchart

C) system flowchart

D) program flowchart

Answer: D




50) To create a good business process flowchart, one should emphasize ________ and put less

emphasis on ________.

A) meeting with top management; meeting with staff employees

B) following rigid rules on how to prepare a business process flowchart; clearly communicating

the activities involved in the process

C) clearly communicating the activities involved in the process; following rigid rules on how to

prepare a business process flowchart

D) meeting with staff employees; meeting with top management

Answer: C




Accounting Information Systems, 13e (Romney/Steinbart)Chapter 4 Relational Databases

4.1 Explain the importance and advantages of databases, as well as the difference between database systems and file-based legacy systems.

1) Using a file-oriented approach to data and information, data is maintained in A) a centralized database. B) many interconnected files. C) many separate files. D) a decentralized database. Answer: CObjective: Learning Objective 1Difficulty: EasyAACSB: Analytic

2) File-oriented approaches create problems for organizations because of A) multiple transaction files. B) a lack of sophisticated file maintenance software. C) multiple users. D) multiple master files. Answer: DObjective: Learning Objective 1Difficulty: ModerateAACSB: Analytic

3) Which statement is true regarding file systems? A) Transaction files are similar to ledgers in a manual AIS. B) Multiple master files create problems with data consistency. C) Transaction files are permanent. D) Individual records are never deleted in a master file. Answer: BObjective: Learning Objective 1Difficulty: EasyAACSB: Analytic

4) All of the following are benefits of the database approach exceptA) data integration and sharing.B) decentralized management of data.C) minimal data redundancy.D) cross-functional analysis and reporting.Answer: BObjective: Learning Objective 1Difficulty: EasyAACSB: Analytic

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5) Which is probably the most immediate and significant effect of database technology on accounting? A) replacement of the double entry-system B) change in the nature of financial reporting C) elimination of traditional records such as journals and ledgers D) quicker access to and greater use of accounting information in decision-making Answer: DObjective: Learning Objective 1Difficulty: ModerateAACSB: Reflective Thinking

6) Shahnaz Vijaya is a new graduate who has been hired by a family-owned furniture manufacturing company in the south. She has been asked to analyze the company's accounting information system and to recommend cost-effective improvements. After noting that the production and sales departments use database systems that are entirely separated, she recommends that they be combined. Implementation of her recommendation would benefit the company by contributing to dataA) independence.B) integration.C) redundancy.D) qualifications.Answer: BObjective: Learning Objective 1Difficulty: EasyAACSB: Reflective Thinking

7) Merlin Frodo has been doing custom piercings and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He keeps meticulous records of every job he has ever completed. These have been entered into a computerized accounting information system that his accountant refers to as a "data warehouse." Merlin is considering adding scarification to his service offerings and has asked his accountant to identify past customers who might be likely candidates for this service. Merlin wants his accountant to engage inA) customer auditing.B) customer resource management.C) data mining.D) enterprise resource planning.Answer: CObjective: Learning Objective 1Difficulty: ModerateAACSB: Reflective Thinking


8) Describe a major advantage of database systems over file-oriented transaction processing systems. Answer: Database systems separate logical and physical views. This separation is referred to as program-data independence. Such separation facilitates developing new applications because programmers can concentrate on coding the application logic (what the program will do) and do not need to focus on how and where the various data items are stored or accessed. In the file-oriented transaction systems, programmers need to know physical location and layout of records which adds another layer of complexity to programming.Objective: Learning Objective 1Difficulty: EasyAACSB: Reflective Thinking

9) Explain the difference between file-oriented transaction processing systems and relational database systems. Discuss the advantages and disadvantages of each system. Answer: In file-oriented approaches, different users (or departments, units, etc.) maintain their own data and use different application programs. This results in a significant increase in number of master files stored by an organization. The various disadvantages of file-oriented organization include data redundancy, data inconsistencies, lack of data integration, a large number of data files, substantial program-data dependence, lack of compatibility, and lack of data sharing. The database approach views data as an organizational resource that should be used and managed for the entire organization. The program that manages and controls the data and the interfaces between data and application programs is called the database management system (DBMS). The various advantages of database approach include the following: minimal data redundancy, fewer data inconsistencies, data integration, data sharing, reporting flexibility, central management of data, cross-functional analysis, and data independence.Objective: Learning Objective 1Difficulty: ModerateAACSB: Reflective Thinking

10) Describe what you think will be the main impact of database technology in your career.Answer: Answers to this question could cover a wide range. Most likely the following items willbe discussed or mentioned: — the probable demise of the double-entry system as the need for such redundancy is much less in a database system. — financial reporting may become more of accessing a database of corporate data in the format desired by the user than relying on financial reports prepared by accountants. — accountants will no longer need to be the filter for accounting data as users will be able to do this themselves, thus the accountants may become more decision makers and managers. — the whole notion of internal controls will become more important in the future if the accountants' role changes in relation to financial reporting.Objective: Learning Objective 1Difficulty: DifficultAACSB: Reflective Thinking


11) Databases were originally developed to address which problem?A) to replace the double entry-system B) to address the proliferation of master filesC) to increase the speed that an organization could process transactionsD) to decrease the costs associated with manual accounting systemsAnswer: BObjective: Learning Objective 1Difficulty: ModerateAACSB: Analytic

12) A data warehouse A) is primarily used for analysis rather than transaction processing.B) stores transaction processing records in hard copy.C) replaces traditional transaction processing databases.D) increases the speed of transaction processing.Answer: AObjective: Learning Objective 1Difficulty: ModerateAACSB: Analytic

13) The use of a data warehouse in strategic decision making is often referred to as A) business intelligence.B) managerial accounting.C) data analysis.D) analytical modeling.Answer: AObjective: Learning Objective 1Difficulty: ModerateAACSB: Analytic

4.2 Explain the difference between logical and physical views of a database.

1) The physical view of a database system refers to A) how a user or programmer conceptually organizes and understands the data. B) how the DBMS accesses data for a certain application program. C) how and where the data are physically arranged and stored. D) how master files store data values used by more than one application program. Answer: CObjective: Learning Objective 2Difficulty: ModerateAACSB: Analytic


2) What is the difference in logical view and physical view? Answer: The logical view is how the user or programmer conceptually organizes and understands the data, such as data organized in a table. The physical view, on the other hand, refers to how and where the data are physically arranged and stored in the computer system.Objective: Learning Objective 2Difficulty: EasyAACSB: Analytic

3) The logical view of a database system refers to A) how a user or programmer conceptually organizes and understands the data. B) how the DBMS accesses data for a certain application program. C) how and where the data are physically arranged and stored. D) how master files store data values used by more than one application program. Answer: AObjective: Learning Objective 2Difficulty: ModerateAACSB: Analytic

4.3 Explain fundamental concepts of a database system such as DBMS, schemas, the data dictionary, and DBMS languages.

1) What acts as an interface between the database and the various application programs?A) data warehouseB) database administratorC) database systemD) database management systemAnswer: DObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

2) The combination of the database, the DBMS, and the application programs that access the database through the DBMS is referred to as theA) data warehouse.B) database administrator.C) database system.D) database management system.Answer: CObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic


3) The ________ is responsible for the database.A) database masterB) database managerC) database administratorD) data coordinatorAnswer: CObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

4) The ________ handles the link between the way data are physically stored and each user's logical view of that data.A) database management software (DBMS) B) database managerC) data warehouseD) data dictionaryAnswer: AObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

5) The logical structure of a database is described by the A) data dictionary. B) schema. C) database management system. D) context diagram.Answer: BObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

6) The schema that provides an organization-wide view of the entire database is known as theA) external-level schema. B) internal-level schema. C) conceptual-level schema. D) logical view of the database. Answer: CObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic


7) A set of individual user views of the database is called the A) conceptual-level schema. B) internal-level schema. C) external-level schema. D) meta-schema. Answer: CObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

8) A low-level view of the database that describes how the data are actually stored and accessed is the A) conceptual-level schema. B) subschema. C) internal-level schema.D) external-level schema. Answer: CObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

9) Record layouts, definitions, addresses, and indexes will be stored at the ________ level schema. A) external B) conceptual C) internal D) metaAnswer: CObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

10) The ________ contains information about the structure of the database.A) data definition languageB) data dictionaryC) data warehouseD) database management systemAnswer: BObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic


11) Which of the following would not be found in a data dictionary entry for a data item? A) records containing a specific data item B) physical location of the data C) source of the data item D) field type Answer: BObjective: Learning Objective 3Difficulty: ModerateAACSB: Analytic

12) The data dictionary usually is maintained A) automatically by the DBMS. B) by the database administrator. C) by the database programmers. D) by top management. Answer: AObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

13) Reports produced using the data dictionary could include all of the following except a list of A) programs where a data item is used. B) synonyms for the data items in a particular file. C) outputs where a data element is used. D) the schemas included in a database. Answer: DObjective: Learning Objective 3Difficulty: ModerateAACSB: Analytic

14) Which statement below concerning the database management system (DBMS) is false?A) The DBMS automatically creates application software for users, based on data dictionary parameters.B) The DBMS automatically maintains the data dictionary. C) Users' requests for information are transmitted to the DBMS through application software.D) The DBMS uses special languages to perform specific functions.Answer: AObjective: Learning Objective 3Difficulty: DifficultAACSB: Analytic


15) Which would not generally be considered a data dictionary output report? A) a list of cash balances in the organization's bank accounts B) a list of all programs in which a data element is used C) a list of all synonyms for the data elements in a particular file D) a list of all data elements used by a particular user Answer: AObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

16) Creating an empty table in a relational database requires use of the ________, and populatingthat table requires the use of ________. A) DDL; DML B) DQL; SQL C) DDL; DQL D) DML; DDA Answer: AObjective: Learning Objective 3Difficulty: ModerateAACSB: Analytic

17) When the human resources manager wants to gather data about salary and start date by employees and by departments, the manager would use which language?A) Data Manipulation LanguageB) Data Query LanguageC) Data Report LanguageD) Data Definition LanguageAnswer: BObjective: Learning Objective 3Difficulty: ModerateAACSB: Analytic

18) If a national sales tax were implemented, which language would be used to add a new field in the sales table to track the sales tax due? A) Data Definition LanguageB) Data Manipulation LanguageC) Data Query LanguageD) Data Update LanguageAnswer: AObjective: Learning Objective 3Difficulty: ModerateAACSB: Analytic


19) ________ is a feature in many database systems that simplifies the creation of reports by allowing users to specify the data elements desired and the format of the output.A) Report printerB) Report creatorC) Report generatorD) Report writerAnswer: DObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

20) A ________ is an abstract representation of a database's contents.A) schemaB) logical data modelC) physical viewD) data dictionaryAnswer: BObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic

21) In a well-designed and normalized database, which of the following attributes would be a foreign key in a cash receipts table?A) customer numberB) cash receipt dateC) remittance advice numberD) customer check numberAnswer: AObjective: Learning Objective 3Difficulty: ModerateAACSB: Reflective Thinking

22) Cornelia Cassidy is a telecom equipment sales representative. Her company has provided herwith a laptop computer that uses wireless connectivity to access the accounting information system from virtually anywhere in the country. She, and other sales reps, have access to view customer and product information. All sales reps also have access that allows them to enter and cancel customer orders. The permissions for Cornelia define a ________ in the company's database management system.A) conceptual-level schemaB) subschemaC) data dictionaryD) physical viewAnswer: BObjective: Learning Objective 3Difficulty: ModerateAACSB: Reflective Thinking


23) Cornelia Cassidy is a telecom equipment sales representative. Her company has provided herwith a laptop computer that uses wireless connectivity to access the accounting information system from virtually anywhere in the country. She has access to view customer and product information. She also has access that allows her to enter and cancel customer orders. The permissions for Cornelia (and other sales reps) define a ________ in the company's database management system.A) conceptual-level schemaB) data dictionaryC) external-level schemaD) physical viewAnswer: CObjective: Learning Objective 3Difficulty: ModerateAACSB: Reflective Thinking

24) Describe the different schemas involved in a database structure. What is the role of accountants in development of schemas? Answer: A schema describes the logical structure of a database. There are three levels of schemas. First, the conceptual-level schema is an organization-wide view of the entire database listing all data elements and relationships between them. Second, an external-level schema is a set of individual user views of portions of the database, each of which is referred to as a subschema. Finally, an internal-level schema provides a low-level view of the database includes descriptions about pointers, indexes, record lengths, etc. Accountants are primarily involved in the development of conceptual- and external-level schemas; however, database knowledgeable accountants may participate in developing an internal -level schema.Objective: Learning Objective 3Difficulty: ModerateAACSB: Reflective Thinking

25) Describe a data dictionary.Answer: A data dictionary is a means by which information about the structure of a database is maintained. For each data element stored in the database, there is a corresponding record in the data dictionary that describes it. The DBMS usually maintains the data dictionary. Inputs to the dictionary include various new data, changed data, and deleted data. Output from the data dictionary may include a variety of reports useful to programmers, database designers, and other users of the information system. Accountants have a very good understanding of the data elements that exist in a business organization, so when an organization is developing a database, accountants should be allowed to participate in the development of the data dictionary.Objective: Learning Objective 3Difficulty: EasyAACSB: Analytic


26) Discuss the ways in which a well-designed DBMS will facilitate the three basic functions of creating, changing, and querying data. Answer: A DBMS will use data definition, data manipulation, and data query languages in order to perform the three basic, essential data functions. Data definition is achieved using DDL (data definition language); data manipulation is achieved using DML (data manipulation language) which includes operations such as updating, inserting, and deleting portions of the database. DQL (data query language) is used to retrieve, sort, order, and present subsets of data in responseto user queries. A DBMS will probably also include a report writer, which is a language that simplifies report creation.Objective: Learning Objective 3Difficulty: ModerateAACSB: Analytic

27) List the four DBMS "languages" and describe who uses each and for what purpose. Answer: DDL is the data definition language used by the DBA (database administrator) to create, initialize, describe logical views, and specify security limits. The DML is the data manipulation used by application programmers who embed these action commands into applications to access data in the database. The DQL is the data query language used by IT professionals and users to interrogate the database by retrieving and presenting data in novel ways often on an ad hoc basis. The report writer is a language used by IT professionals and usersthat simplifies report creation so reports can be created according to user-specified format.Objective: Learning Objective 3Difficulty: ModerateAACSB: Analytic

28) Describe the information that is contained in the data dictionary.Answer: The data dictionary contains information about the structure of the database. For each data element stored in the database, the data dictionary contains all the descriptive information about it, such as its name, description, where it is recorded, its source, field length, type of field, programs it is used in, outputs that contain it, and authorized users.Objective: Learning Objective 3Difficulty: EasyAACSB: Analytic

29) The REA is an example of a database that uses a ________ data modeling approach to database design.A) schemaB) logicalC) semanticD) normalizationAnswer: CObjective: Learning Objective 3Difficulty: EasyAACSB: Analytic


4.4 Describe what a relational database is and how it organizes data.

1) ________ in a well-structured relational database.A) Every table must be related to all other tablesB) One table must be related to at least one other tableC) Every table must be related to at least one other tableD) One table must be related to all other tablesAnswer: CObjective: Learning Objective 4Difficulty: ModerateAACSB: Reflective Thinking

2) The problem of changes being incorrectly recorded in a database is known as A) an update anomaly. B) an insert anomaly. C) a delete anomaly. D) a memory anomaly. Answer: AObjective: Learning Objective 4Difficulty: EasyAACSB: Analytic

3) The ________ occurs when more than one occurrence of a specific data item in a database exists.A) inconsistency anomalyB) insert anomalyC) delete anomalyD) update anomalyAnswer: DObjective: Learning Objective 4Difficulty: EasyAACSB: Analytic

4) Inability to add new data to a database without violating the basic integrity of the database is referred to as the A) update anomaly. B) insert anomaly. C) integrity anomaly. D) delete anomaly. Answer: BObjective: Learning Objective 4Difficulty: EasyAACSB: Analytic


5) A relational database in which customer data is not maintained independently of sales invoice data will most likely result in A) an update anomaly. B) an insert anomaly. C) a delete anomaly.D) an integrity anomaly. Answer: BObjective: Learning Objective 4Difficulty: ModerateAACSB: Reflective Thinking

6) The problem of losing desired information from a database when an unwanted record is purged from the database is referred to as the ________ anomaly. A) purgeB) erase C) delete D) integrity Answer: CObjective: Learning Objective 4Difficulty: EasyAACSB: Analytic

7) Identify one potential outcome of the delete anomaly.A) inconsistent dataB) inability to add new dataC) unintentional loss of dataD) none of the aboveAnswer: CObjective: Learning Objective 4Difficulty: ModerateAACSB: Analytic

8) The update anomaly in non-normalized database tablesA) occurs because of data redundancy.B) restricts addition of new fields or attributes.C) results in records that cannot be updated.D) is usually easily detected by users.Answer: AObjective: Learning Objective 4Difficulty: ModerateAACSB: Analytic


9) Identify one potential drawback in the design and implementation of database systems for accounting.A) Double-entry accounting relies on redundancy as part of the accounting process, but well-designed database systems reduce and attempt to eliminate redundancy. B) Relational DBMS query languages will allow financial reports to be prepared to cover whatever time periods managers want to examine. C) Relational DBMS provide the capability of integrating financial and operational data. D) Relational DBMS can accommodate multiple views of the same underlying data; therefore, tables storing information about assets can include data about both historical and replacement costs. Answer: AObjective: Learning Objective 4Difficulty: ModerateAACSB: Reflective Thinking

10) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vineyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. Hisunique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. As you look over his records, you realize that sometimes the same customer is recorded by a slightly different name. For example, Mike Mulligan bought a horse statue, M. Mulligan bought a pig statue, and Mike M. all seem to be the same person. This is an example of what type of problem in the existing records?A) entity integrityB) referential integrityC) update anomalyD) insert anomalyAnswer: CObjective: Learning Objective 4Difficulty: ModerateAACSB: Reflective Thinking


11) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vineyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. Hisunique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. As you look over his records, you realize that some customers bought multiple statues at the same time. For example, Yasmeen Ghuari bought a Tin Man Status, a flying horseman statue, and a terrier statue. You realize that in these cases, a singlewritten record will have to be translated into multiple sales records. This is an example of what type of problem in the existing records?A) entity integrityB) referential integrityC) update anomalyD) insert anomalyAnswer: DObjective: Learning Objective 4Difficulty: ModerateAACSB: Reflective Thinking

12) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vineyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. Hisunique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. As you look over his records, you notice that some customer last names have different first names in different records. For example, R. Framington Farnsworth, Bob Farnsworth, and Snake Farnsworth all seem to be the same person. You explain to Kai that every customer must be identified by a unique customer number in the AIS. You are referring to theA) entity integrity rule.B) referential integrity rule.C) update anomaly.D) insert anomaly.Answer: AObjective: Learning Objective 4Difficulty: ModerateAACSB: Reflective Thinking


13) Explain the types of attributes that tables possess in a relational database. Answer: Primary key — the attribute, or combination of attributes, that uniquely identify a specific row in a table. Foreign key — an attribute appearing in one table that is a primary key inanother table. Nonkey attributes found in tables — For example, an inventory table may contain information about the description, quantity on hand, and list price of each item a company sells.Objective: Learning Objective 4Difficulty: EasyAACSB: Analytic

14) Explain the two advantages semantic data modeling has over normalization when designing a relational database. Answer: Semantic data modeling takes advantage of a system designer's knowledge about the business policies and practices of an organization. This is of great benefit in the design of transaction processing databases. Also, since the database model is created around the policies and practices of an organization, communications with the future database users is facilitated. The result is that the system will more closely meet the needs of the intended users.Objective: Learning Objective 4Difficulty: ModerateAACSB: Analytic

15) Discuss redundancy as it applies to database design. Answer: Redundancy has been called an enemy of relational databases. There are several problems that may occur when redundant data is stored in a database. First, the database becomes larger than it needs to be, since duplicate facts are being stored within it. Second, a situation may occur where only one instance of redundant data is updated or purged. The result isthat the accuracy and integrity of the database suffers, since users may be relying on such inaccurate or incorrect redundant data. Redundancy can also make file maintenance unnecessarily time consuming and error-prone when human intervention is required. The problems discussed above have been identified as anomalies of a relational database. There are three specific anomalies connected with redundancy: the update anomaly, the insert anomaly, andthe delete anomaly. A well-designed relational database will attempt to reduce or eliminate the number of instances of redundant data. The best way to achieve such a goal is proper design of the database for the needs of a specific organization.Objective: Learning Objective 4Difficulty: DifficultAACSB: Reflective Thinking


16) Explain the relational database data model. Answer: A data model is an abstract representation of the contents of a database. The majority ofnew DMBS use what is called the relational data model, developed by Dr. E. F. Codd in 1970. Using this model, everything in the database is stored in the form of tables, known as relations. Keep in mind that this is the conceptual- and external-level schemas (which describes the logical structure of a database), not the actual physical structure of the database itself. In the concept of relations, both rows and columns comprise the database tables. Each row in a relation (table) is called a tuple. Tuples contain data about a specific occurrence of the type of entity represented by that table. For example, in a sales table, each tuple may contain all of the information about a specific customer. Each column in a relation contains information about one specific attribute of that entity. Using the sales example again, the columns in such a table may represent specific characteristics about each sales transaction.Objective: Learning Objective 4Difficulty: ModerateAACSB: Analytic

17) What are the basic requirements when logically designing a relational database model? Answer: Every row in every table must have a unique key known as a primary key. Tables may also have a key known as a foreign key; such a key will have a value corresponding to the primary key in another table. Each column in a table must be single-valued (the same data type) and describe an attribute of the entity identified by the primary key; neither column nor row order is significant in the relational model. Keep in mind that the relational model is a logical model, and the physical model may have a different structure to it to facilitate the storage and access to data.Objective: Learning Objective 4Difficulty: ModerateAACSB: Analytic

18) How do users retrieve data stored in a database?A) by viewing the appropriate data tablesB) by executing a queryC) by performing a searchD) by specifying the primary keysAnswer: BObjective: Learning Objective 4Difficulty: EasyAACSB: Analytic

19) In a well-structured relational database,A) foreign keys cannot be null.B) there must be at least two foreign keys.C) every column in a row must be single valued.D) one table must be related to all other tables.Answer: CObjective: Learning Objective 4Difficulty: ModerateAACSB: Analytic


20) Which of the following is false regarding a well-structured relational database?A) A foreign key cannot be null.B) A primary key cannot be null.C) Every column in a row must be single valued.D) All nonkey attributes in a table must describe a characteristic of the object identified by the primary key.Answer: AObjective: Learning Objective 4Difficulty: ModerateAACSB: Analytic

4.5 Create a set of well-structured tables to store data in a relational database.

1) In a relational database, requiring that every record in a table have a unique identifier is called the A) entity integrity rule. B) referential integrity rule. C) unique primary key rule. D) foreign key rule. Answer: AObjective: Learning Objective 5Difficulty: EasyAACSB: Analytic

2) The database requirement that foreign keys must be null or have a value corresponding to the value of a primary key in another table is formally called the A) entity integrity rule. B) referential integrity rule. C) unique primary key rule. D) foreign key rule. Answer: BObjective: Learning Objective 5Difficulty: EasyAACSB: Analytic

3) In a well-structured database, the constraint that ensures the consistency of the data is known as theA) entity integrity rule. B) referential integrity rule. C) unique primary key rule. D) foreign key rule. Answer: BObjective: Learning Objective 5Difficulty: EasyAACSB: Analytic


4) Identify the statement below that is false with regards to basic requirements of a relational database model.A) Primary keys can be null.B) Foreign keys, if not null, must have values that correspond to the value of a primary key in another table.C) All non-key attributes in a table should describe a characteristic about the object identified by the primary key.D) Every column in a row must be single-valued. Answer: AObjective: Learning Objective 5Difficulty: EasyAACSB: Analytic

5) Identify the aspect of a well-structured database that is incorrect.A) Data is consistent. B) Redundancy is minimized and controlled. C) All data is stored in one table or relation. D) The primary key of any row in a relation cannot be null. Answer: CObjective: Learning Objective 5Difficulty: EasyAACSB: Analytic

6) In the database design approach known as normalization, the first assumption made about datais A) there is no redundancy in the data. B) the delete anomaly will not apply since all customer records will be maintained indefinitely. C) everything is initially stored in one large table. D) the data will not be maintained in 3NF tables. Answer: CObjective: Learning Objective 5Difficulty: ModerateAACSB: Analytic

7) The database design method in which a designer uses knowledge about business processes to create a diagram of the elements to be included in the database is called A) normalization. B) decentralization. C) geometric data modeling. D) semantic data modeling. Answer: DObjective: Learning Objective 5Difficulty: EasyAACSB: Analytic


8) Which of the statements below is incorrect? A) Semantic data modeling facilitates the efficient design of databases. B) Semantic data modeling facilitates communicating with the intended users of the system. C) Semantic data modeling allows a database designer to use knowledge about business processes to design the database. D) Semantic data modeling follows the rules of normalization in the design of a database. Answer: DObjective: Learning Objective 5Difficulty: ModerateAACSB: Analytic

9) Ama Afolayan is chair of the National Owl Society, which maintains a database of all rare owls within the United States. One table will store the name, birth date, and other characteristics of all of the owls that have been registered. Each owl is uniquely identified by a registration number. A second table will contain data that link each owl to its male and female parents by means of their registration numbers. The primary key in the first table isA) name.B) birth date.C) the primary key in the second table.D) a foreign key in the second table.Answer: DObjective: Learning Objective 5Difficulty: ModerateAACSB: Reflective Thinking

10) Ama Afolayan is chair of the National Owl Society, which maintains a database of all rare owls within the United States. One table will store the name, birth date, and other characteristics of all of the owls that have been registered. Each owl is uniquely identified by a registration number. A second table will contain data that link each owl to its male and female parents by means of their registration numbers. The primary key in the second table isA) name.B) birth date.C) the same as the primary key in the first table.D) a combination of primary keys in the first table.Answer: DObjective: Learning Objective 5Difficulty: DifficultAACSB: Reflective Thinking


11) Ama Afolayan is chair of the National Owl Society, which maintains a database of all rare owls within the United States. One table will store the name, birth date, and other characteristics of all of the owls that have been registered. Each owl is uniquely identified by a registration number. A second table will contain data that link each owl to its male and female parents by means of their registration numbers. The entities described by the second table areA) owls.B) parental relationships.C) registration numbers.D) names.Answer: BObjective: Learning Objective 5Difficulty: ModerateAACSB: Reflective Thinking

12) Kekoa Konani is chairman of the Chatty Chihuahua Club, where he maintains a database of registered purebred Chihuahuas and their breeding history. One table will store the name, birth date, and other characteristics of all of the registered Chihuahuas. Each Chihuahua is uniquely identified by a registration number. A second table will contain data that link each Chihuahua to its male and female parents by means of their registration numbers. The entities described by the first table areA) marmosets.B) parental relationships.C) registration numbers.D) names.Answer: AObjective: Learning Objective 5Difficulty: ModerateAACSB: Reflective Thinking

13) Kekoa Konani is chairman of the Chatty Chihuahua Club, where he maintains a database of registered purebred Chihuahuas and their breeding history. One table will store the name, birth date, and other characteristics of all of the registered Chihuahuas. Each Chihuahua is uniquely identified by a registration number. A second table will contain data that link each Chihuahua to its male and female parents by means of their registration numbers. The primary key in the first table isA) name.B) registration number.C) date of birth.D) relationship number.Answer: BObjective: Learning Objective 5Difficulty: ModerateAACSB: Reflective Thinking


14) Kekoa Konani is chairman of the Chatty Chihuahua Club, where he maintains a database of registered purebred Chihuahuas and their breeding history. One table will store the name, birth date, and other characteristics of all of the registered Chihuahuas. Each Chihuahua is uniquely identified by a registration number. A second table will contain data that link each Chihuahua to its male and female parents by means of their registration numbers. The primary key in the second table isA) name.B) registration number.C) date of birth.D) relationship number.Answer: DObjective: Learning Objective 5Difficulty: ModerateAACSB: Reflective Thinking

15) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vinyard, Maryland. Kai is an accounting fanatic and has kept detailedrecords of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. His unique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. You begin development of the relational database that will form the core of the AIS by envisioning the record stored in a single table with a column that represents each attribute. You then begin to break this table down into smaller tables. This process is calledA) integration.B) optimization.C) minimization.D) normalization.Answer: DObjective: Learning Objective 5Difficulty: EasyAACSB: Reflective Thinking


16) Helen Fume is a recruiter with The Ladders in Nome, Alaska. The Ladders success is largely attributable to its accounting information system. When a client is hired by an employer, Helen creates a record that identifies the employment relationship. Helen follows up on placements by surveying both employers and clients about the employment experience and then entering the results into the AIS. Clients are uniquely identified by social security number. In records that contain client survey data, the social security number is likely to beA) the primary key.B) a foreign key.C) combined with other data fields to form a primary key.D) null.Answer: BObjective: Learning Objective 5Difficulty: ModerateAACSB: Reflective Thinking


17) Which of the following would not be one of the well-structured tables in a well-designed relational database used to generate this sales invoice?

A) Customer Order B) CustomerC) Sales D) Sales OrderAnswer: AObjective: Learning Objective 5Difficulty: DifficultAACSB: Reflective Thinking


18) Which of the following would not be true about the well-structured tables in a well-designed relational database used to generate this sales invoice?

A) Quantity would be generated from the Sales table.B) 34567 would be a primary key in the Sales table.C) Unit Price would be generated from the Inventory table.D) Hardware City is an example of a non-key data value in the Customer table.Answer: AObjective: Learning Objective 5Difficulty: DifficultAACSB: Reflective Thinking


19) Seacrest Bedding is changing from a file-oriented system to a relational database system. Identify and design at least three tables that would be needed to capture data for a sales transaction. Each table should include a primary key, three non-key attributes, and foreign keys as necessary. Make up data values for two records within each table.Answer: Customer table; ID (primary key), name, street address, city, state, zip code, phone number, credit limit, salesperson ID (foreign key)Salesperson table; ID (primary key), name, street address, city, state, zip code, phone number, hire date, commission rate, base salarySales table; sales invoice number (primary key), date, amount, sales tax, shipping charge, shipping method, customer ID (foreign key), salesperson ID (foreign key)Inventory table; item ID (primary key), description, size, color, warehouse location, list price, quantity on handSales-Inventory table; sales invoice number and item ID (concatenated primary key), quantity sold, sales price, extended amount

Students should also make up data values for two separate records for each table.Objective: Learning Objective 5Difficulty: DifficultAACSB: Reflective Thinking

20) Which of the following elements link rows in one table to rows in another table?A) primary keysB) foreign keysC) semantic keysD) link keysAnswer: BObjective: Learning Objective 5Difficulty: ModerateAACSB: Analytic

21) Suppose a relational database contained two linked tables. Which of the following items is not necessarily present in the database?A) two primary keysB) two foreign keysC) at least one columnD) one foreign keyAnswer: BObjective: Learning Objective 5Difficulty: DifficultAACSB: Analytic


22) Suppose a relational database contained two linked tables. Assuming the organization wants the database to be normalized, which of the following items represents a problem to normalization?A) The database contains only one primary key.B) The database contains two foreign keys.C) The database contains two primary keys.D) The database contains only one foreign key.Answer: AObjective: Learning Objective 5Difficulty: DifficultAACSB: Analytic

4.6 Perform simple queries using the Microsoft Access database.

1) Which one of the following results corresponds to the query below?

A)

B)


C)

D)

Answer: CObjective: Learning Objective 6Difficulty: EasyAACSB: Analytic



A)

B)

C)

D)

Answer: DObjective: Learning Objective 6Difficulty: ModerateAACSB: Reflective Thinking



A)

B)

C)

D)

Answer: BObjective: Learning Objective 6Difficulty: ModerateAACSB: Reflective Thinking


4) Using the database depicted below, "Date" is best described as

A) a primary key.B) a foreign key.C) a non-key attribute.D) an attribute.Answer: CObjective: Learning Objective 6Difficulty: EasyAACSB: Analytic

5) Using the database depicted below, how many primary keys are in the database?

A) 0B) 3C) 4D) 5Answer: CObjective: Learning Objective 6Difficulty: ModerateAACSB: Analytic


6) Using the database depicted below, how many foreign keys are in the database?

A) 0B) 3C) 4D) 5Answer: BObjective: Learning Objective 6Difficulty: ModerateAACSB: Analytic

7) Using the database depicted below, "Item #" is best described as

A) an attribute.B) a primary key.C) a foreign key.D) A, B, and CAnswer: DObjective: Learning Objective 6Difficulty: ModerateAACSB: Analytic


8) Using the database depicted below, "Unit Price" is best described as

A) an attribute.B) a primary key.C) a foreign key.D) A, B, and CAnswer: AObjective: Learning Objective 6Difficulty: EasyAACSB: Analytic


9) Using the database depicted below, in the Sales table, "Customer #" is best described as

A) an attribute.B) a primary key.C) a foreign key.D) A, B, and CAnswer: AObjective: Learning Objective 6Difficulty: EasyAACSB: Analytic

10) In the Customer table below, "Customer #" is best described as

A) an attribute.B) a primary key.C) a foreign key.D) A, B, and CAnswer: DObjective: Learning Objective 6Difficulty: DifficultAACSB: Analytic


11) In the Inventory table below, "Item number" is best described as

A) an attribute.B) a primary key.C) a foreign key.D) A, B, and CAnswer: BObjective: Learning Objective 6Difficulty: EasyAACSB: Analytic


(Romney/Steinbart) · 2021. 4. 21. · Accounting Information Systems, 14e (Romney/Steinbart)...

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