Question 1

A well-designed AIS can improve the decision-making function within the organization.Which statement below would describe a limitation,rather than a benefit,of an efficient AIS?

Accepted Answer

A) An AIS reduces uncertainty,and therefore accounting information can provide a basis for choosing among alternative courses of action. 
B) An AIS identifies situations requiring management action. 
C) An AIS provides to its users an abundance of information without any filtering or condensing of such information. 
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.

Question 2

A decision situation that is non-routine and for which no established framework exists for making the decision is called a(n)__________ decision.

Accepted Answer

A) structured 
B) semistructured 
C) unstructured 
D) strategic

Question 3

Define the concept of a system.

Accepted Answer

The answer of Define the concept of a system....

Question 4

A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the

Accepted Answer

A) organizational culture. 
B) customer base. 
C) external financial statement users. 
D) production activity.

Question 5

Which of the following is not one of the components of an AIS?

Accepted Answer

A) Internal controls and security measures 
B) People 
C) Procedures and instructions 
D) Software and hardware

Question 6

Which of the following statements below shows the contrast between data and information?

Accepted Answer

A) Data is the output of an AIS. 
B) Information is the primary output of an AIS. 
C) Data is more useful in decision-making than information. 
D) Data and information are the same.

Question 7

Information that reduces uncertainty,improves decision makers' ability to make predictions,or confirms or corrects their prior expectations,is said to be

Accepted Answer

A) Complete 
B) Relevant 
C) Reliable 
D) Timely

Question 8

A strategic position is important to the success and growth of any organization.Harvard professor Michael Porter has identified two basic business strategies.Which statement below is false regarding these basic strategies?

Accepted Answer

A) A product differentiation strategy entails adding features or services not provided by competitors to a product so customers can be charged a premium price. 
B) A low-cost strategy entails striving to be the most efficient producer of a product or service. 
C) Sometimes a company can succeed in both producing a better product and achieving low costs. 
D) The two basic strategic positions are mutually exclusive.

Question 9

Information is

Accepted Answer

A) What happens when the data exceeds the amount the human mind can absorb. 
B) The benefit produced by the information minus the cost of producing it. 
C) Facts that are collected,recorded,stored,and processed by an information system. 
D) Data that have been organized and processed to provide meaning to a user.

Question 10

Facts that are collected,recorded,stored and processed by an information system

Accepted Answer

A) Information 
B) Data 
C) Systems 
D) Mandatory information

Question 11

The value chain concept is composed of two types of activities known as

Accepted Answer

A) primary and support. 
B) primary and secondary. 
C) support and value. 
D) technology and support.

Question 12

Decisions about the effective and efficient execution of specific tasks are concerned with

Accepted Answer

A) operational control. 
B) management control. 
C) strategic planning. 
D) tactical planning.

Question 13

When two knowledgeable people acting independently each produce the same information,this information is said to be

Accepted Answer

A) Complete 
B) Relevant 
C) Reliable 
D) Verifiable

Question 14

In Chapter 1,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

Accepted Answer

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.

Question 15

According to Michael Porter,to be successful in the long run,a company must

Accepted Answer

A) deliver greater value to customers and/or create comparable value at a lower cost. 
B) maximize profits. 
C) maximize shareholder value. 
D) both B and C

Question 16

A set of two or more interrelated components that interact to achieve a goal is:

Accepted Answer

A) A system 
B) An accounting information system 
C) Data 
D) Mandatory information

Question 17

Name the primary activities of a firm's value chain.

Accepted Answer

The answer of Name the primary activities of a firm's...

Question 18

Accounting information plays major roles in managerial decision making by

Accepted Answer

A) identifying situations requiring management action. 
B) reducing uncertainty. 
C) providing a basis for choosing among alternative actions. 
D) all of the above

Question 19

The Financial Accounting Standards Board (FASB),in its Statement of Financial Accounting Concepts No.2,has defined accounting as

Accepted Answer

A) an information identification,development,measurement,and communication process. 
B) a way to provide adequate controls to safeguard an organization's assets. 
C) being an information system. 
D) a way to collect and transform data into useful information.

Question 20

Humans can absorb and process only so much information.Information __________ occurs when those limits are passed.

Accepted Answer

A) overload 
B) excess 
C) anxiety 
D) discretion

Exam 1: Accounting Information Systems