Exam 1 Study Guide
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Created by:
strawverikiwi on December 3, 2010
Subjects:
accounting information systems
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Terms | Definitions |
|---|---|
 Procedures and instructions | An AIS is a system of six interrelated components that interact to achieve a goal. One of these components, which includes both manual and automated activities that involve collecting, processing, and storing data. |
| According to Michael Porter, to be successful in the long run, a company must | deliver greater value to customers and/or create comparable value at a lower cost. |
| The value of information can best be defined as | the benefits produced by possessing and using the information minus the cost of producing it. |
| A decision that is repetitive, routine and well understood is | structured |
| Information that reduces uncertainty, improves decision makers' ability to make predictions, or confirms or corrects their prior expectations, is said to be | Relevant |
| An access-based strategic position involves | serving a subset of customers who differ from other customers |
| Regarding decision scope, which statement below is true? | Strategic planning is concerned with establishing organizational objectives and policies for accomplishing those objectives. |
| Which of the following is not an example of a common activity in an AIS? | recording of sales calls for marketing purposes |
| Data are | facts entered, stored, and processed by an information system. |
| Jill Fredson is in charge of the mail room at Gammon University. Every Friday morning she receives a report via email that summarizes the number of outgoing and incoming pieces of mail by source and destination department. Every Friday afternoon, Jill deletes the report without reading it because it has no bearing on mail room operations. Which of the following characteristics of useful information is absent in the situation described above? | Relevant |
| In value chain analysis, what is the activity of arranging the delivery of products to customers called? | outbound logistics |
| Data must be converted into information to be considered useful and meaningful for decision-making. There are six 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 | Reliability |
| Robinson Crusoe has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Friday, who manages the carving process. Monday is the newest employee. She collects the coconuts. Tuesday, as you might expect, takes calls from customers, oops, I mean customers, who are unhappy with their coconuts. Wednesday tosses finished coconuts into the sea, whereupon they drift to the wholesaler. Thursday sends smoke signals 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 Tuesday performing? | Service |
| Information that is free from error or bias and accurately represents the events or activities of the organization is | Reliable |
| A decision situation that is non-routine and for which no established framework exists for making the decision is called a(n) ________ decision. | unstructured |
| Information is | Data that have been organized and processed to provide meaning to a user. |
| Goal conflict may result when | A decision or action of a subsystem is inconsistent with the system as a whole |
| Inventory information is provided in real time by a firm's accounting information system. The accuracy of this information is questionable, however, since the production manager often reports 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? | Reliable |
| The Internet has changed the way many processes are performed in business today. The Internet has had a material effect on the five primary characteristics in the value chain and on the strategy adopted by businesses that incorporate use of the Web into their business systems. Which statement below is true regarding the Internet relative to a strategic position that a business may adopt? | The most important effect of the development of the Internet in business is the increased importance of adopting a viable business strategy. |
| Characteristics of interest that need to be stored are | attribute |
| In an effort to measure and evaluate the productivity of word processing specialists, the office manager at Four-Q Consulting acquired a software package that counts the number of keystrokes per day by each employee. Some weeks later, the manager observed several of the employees sitting at their workstations during lunch and randomly punching keys. This is an example of: | the reporting system leading to dysfunctional behavior. |
| Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the revenue cycle would be | give goods, get cash. |
| Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the expenditure cycle would be | give cash, get goods. |
| Concerning processing, which of the following statements is true? | On-line batch processing is a combination of real-time and batch processing. |
| The business owners obtain financing from outside investors, which results in an inflow of cash into the company. This transaction is considered to be part of which cycle? | the financing cycle |
| A specialized journal | simplifies the process of recording large numbers of repetitive transactions. |
| A report which shows actual results, budgets, and variances is called a | performance report. |
| Which of the following documents would be found in the expenditure cycle? | purchase order |
| Periodic updating of the data stored about resources and agents is | batch processing |
| Federal Express stated in one of its mission statements that "positive control of each package will be maintained by utilizing . . . electronic tracking and tracing systems." This is an example of which type of data processing? | real-time processing which features immediate updating as to the location of packages |
| 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 | revenue cycle. |
| Documents generated at the end of transaction processing activities are called | operational documents |
| The coding method used for checks and receipts is called a | sequence code. |
| Phlogiston Pharmaceuticals, Ltd., is a manufacturer of generic drugs with a worldwide market for its products. In order to determine the amount of each drug to produce, it is essential that the following be available on a timely basis: | Demand forecasts |
| Certain documents or forms are generated and/or processed with each transaction cycle. The collection of job time tickets or time sheets is part of which transaction cycle? | the human resources cycle |
| The premier buyer and seller of vintage action figures in the San Francisco Bay area is Vini Vidi Geeky. Since 1996, the owner, Glamdring Elfthrall, has leveraged computer technology to provide a superior level of customer service. In particular, the store's database system was designed to make detailed information about each individual action figure's characteristics easily accessible. Price information and condition are also provided for each inventory item. In this database, the data about an individual figure's price is stored in a(an) | field. |
| Common source documents for the revenue cycle include all of the following except | receiving report. |
| Concerning a master file, which of the following statements is false? | Its individual records are not changed. |
| What is the major difference between the revenue and the expenditure cycle? | In the revenue cycle, cash is received; in the expenditure cycle cash is paid out. |
| In a payroll processing DFD, the "prepare reports" activity will be represented by ________, the "employee payroll file" will be represented by ________, and the "bank" will be represented by ________. | a circle; two horizontal lines; a square |
| A data flow diagram (or DF-has four basic elements. The people and organizations that send data to and receive data from the system are known as | data sources and destinations. |
| How should control processes and control actions be represented in a data flow diagram? | control processes and actions should be ignored in a DFD |
| In a DFD, an arrow represents | the direction of data flows. |
| A data flow diagram | is a graphical description of the source and destination of data that shows how data flow within an organization |
| Which of the following is not a true statement? | Data flow diagrams and flowcharts are difficult to prepare and revise using software packages. |
| One popular means of documenting a system is to develop diagrams, flowcharts, tables, and other graphical representations of information. These are often supplemented by | narrative descriptions. |
| In a DFD, a "data sink" is also known as | data destinations. |
| What should be the first thing the creator of a flowchart does before beginning a flowchart? | understand the system to be flowcharted |
| The storage of data on a DFD is shown by | two horizontal lines. |
| The narratives, diagrams, charts, and other written materials that explain how a system works are collectively called | documentation. |
| The graphic description of the flow of data within an organization is called a | data flow diagram. |
| Which type of flowchart is an excellent vehicle for describing information flows and procedures within an AIS? | a system flowchart |
| A graphical representation of the relationship among the input, processing and output in an information system is called | a system flowchart |
| A graphical representation of the flow of documents and information between departments or areas of responsibility within an organization is called | document flowchart. |
| A flowchart is an analytical tool used to describe some aspect of an information system. A flowchart that depicts the relationships among the input, processing, and output of an AIS is | a system flowchart. |
| The passage of the Sarbanes Oxley Act | Made documentation skills even more important, requires public companies to prepare an annual internal control report, and means that auditors must be able to prepare, evaluate and read documentation tools such as flowcharts. |
| In a DFD, a square box represents | data sources and destinations. |
| In a DFD, a circle represents | transformation processes. |
| In a DFD, a curved or straight lines with arrow represents | the direction of data flows. |
| In a DFD, two horizontal lines represents | data stores. |
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