3300 Midterm Study Guide 12e Student 2

Name: __________________________ Date: _____________

1.
The letter “P” in the acronym “ERP” stands for:
A)
Production
B)
Planning
C)
Project
D)
none of these

2.
Which of the following is true about the terms “data” and “information” within the context of Chapter 1?
A)
These terms are exactly the same
B)
These terms are exact opposites
C)
Some “data” can also be “information”
D)
none of these

3.
If a manager suffers “information overload”:
A)
He or she must press the reset button on his or her computer
B)
It means that this person needs a larger hard drive
C)
The “information” is really just data
D)
He or she must forget some facts in order to remember others

4.
Which of the following captures the same idea as the term “GIGO?”
A)
Computers cannot turn straw into gold
B)
Too much information is the same as garbage
C)
Great investments lead to great returns
D)
Too many cooks spoil the broth

5.
Which of the following best describes a data warehouse as discussed in Chapter 1?
A)
A repository of historical information from one accounting application
B)
A repository of historical information from a set of accounting applications
C)
A repository of information from many business applications—some not accounting
D)
A repository of information from many businesses in the same industry

6.
Bernard Madoff is most closely associated with which of the following terms?
A)
The father of activity-based costing systems
B)
SAR
C)
Ponzi scheme
D)
Sarbanes-Oxley Act of 2002
E)
Key sponsor of the Patriot Act

7.
Many accountants feel that the most important part of the Sarbanes-Oxley Act is:
A)
Its anti-terrorist provisions
B)
Its provisions requiring the reporting of suspicious activities
C)
Section 404 on internal controls
D)
Section 505 on money laundering

8.
The U.S. Patriot act:
A)
Requires banks to monitor their accounts in foreign institutions for fraud
B)
Prohibits companies from lending money to corporate executives
C)
Only applies to publicly-traded companies
D)
all of these are correct

9.
A good performance measurement system should evaluate:
A)
Profitability only
B)
Customer satisfaction only
C)
Those aspects of a unit's performance that are subject to its control
D)
Those aspects of a unit's performance whether controllable or not

10.
The managerial accounting component of the accounting subsystem contains all but which one of the following functions:
A)
Cost accounting
B)
Financial accounting
C)
Budgeting
D)
Systems study

11.
Managerial accounting principally provides information to:
A)
Stockholders
B)
Government regulators (e.g., SEC, Federal bank examiners)
C)
Internal company management
D)
Potential creditors

12.
The process by which a financial transaction is recorded so that its flow through the system can be followed is called:
A)
Financial shadowing
B)
Managerial trace technique
C)
Concatenation
D)
An audit trail

13.
Which of these is a business reporting language often used in recording or transmitting accounting data?
A)
XBRL
B)
XFile
C)
ABC
D)
Accounting Live

14.
The P in the acronym KPI stands for:
A)
Processing
B)
Performance
C)
Planning
D)
Personnel
E)
none of these

15.
All of the following are reasons why information technology is important to accountants except:
A)
IT supports AIS functions such as communications and record keeping
B)
Accountants must often evaluate AISs for themselves or for clients
C)
It is important to keep up; if your competitors buy new computers, you should too
D)
IT is likely to affect the way accountants work in the future

16.
Which of these is one of the five interacting components of an accounting information system?
A)
Fuzzy logic
B)
Testing
C)
Certification
D)
Procedures
E)
Internet

17.
Time cards, airline reservation screens, and bank deposit screens best describe which of the following?
A)
Data transcription
B)
Point-of-sale devices
C)
Source documents
D)
Turnaround documents
E)
Data transaction documents

18.
The UPC code is an example of a(n):
A)
PDA
B)
MICR
C)
Bar code
D)
Biometric input

19.
Which of the following best describes documents initially prepared by a company, then sent to individuals, and finally returned to the organization for data processing?
A)
Mark-sense media
B)
Source documents
C)
Turnaround documents
D)
MICR documents

20.
A POS device is usually attached to a:
A)
Printer
B)
Bank check
C)
Cash register
D)
Keyboard
E)
Computer mouse

21.
POS devices, bar code readers, and OCR devices are examples of:
A)
Input devices
B)
Output devices
C)
Processing devices
D)
Transaction devices

22.
A secondary storage device that protects against disk failures and increases storage capacities by using stacks of hard disks best describes which of the following?
A)
Magnetic disk
B)
CD-ROM disk
C)
Flash memory
D)
WORM (Write-once, Read-many) Disks
E)
RAID (Redundant Array of Independent Disks)

23.
A bar code reader is most likely to be used by which type of system?
A)
POS system
B)
MICR system
C)
Printer/scanner system
D)
Fax machine system

24.
Which type of company is most likely to use MICR?
A)
Grocery store
B)
Bank
C)
Phone company
D)
Web site seller

25.
When associated with CD-ROMs, the letters “rw” mean:
A)
Raw
B)
Rewind
C)
Rewriteable
D)
Regular width

26.
A USB drive that uses flash memory is an example of a(n):
A)
Input device
B)
Output device
C)
Secondary storage device
D)
Web device

27.
Which of the following is a component of a client/server system?
A)
User component
B)
Satellite component
C)
Data-management component
D)
Output component

28.
This is an example of an RFID system with a very limited range (less than 8 inches):
A)
LAN system
B)
NFC system
C)
WAN system
D)
MICR system

29.
The term DSL is mostly closely associated with:
A)
PDAs
B)
Biometrics
C)
Compiling computer programs
D)
Digital data transmission

30.
The term cloud computing refers to:
A)
Fuzzy computing logic
B)
Hidden computer data, which are obscured in some way
C)
Purchasing computing services on the Internet
D)
Undetected errors in data processing

31.
When an individual prepares a document flowchart, the names of the various organizational departments involved in the accounting information system should be listed:
A)
Along the right-hand margin of the flowchart
B)
Along the left-hand margin of the flowchart
C)
In the title of the flowchart
D)
In the column headings of the flowchart

32.
The document flowchart symbol for a manual file (such as a file cabinet of accounts receivable invoices) is:

A) a B) b C) c D) d 33.
A system flowchart is a block diagram that:
A)
Is used only by auditors
B)
Is used primarily when document flowcharts cannot be used
C)
Depicts the flow of computer systems in an organization
D)
Depicts the flow of data through a computerized accounting information system

34.
Which of the following symbols represents the standard systems flowcharting symbol for an input/output process?

A) a B) b C) c D) d 35.
Which of the following symbols represents the standard system flowcharting symbol for a screen display?

A) a B) b C) c D) d 36.
Which of the following symbols represents the standard system flowcharting symbol for a processing operation?

A) a B) b C) c D) d 37.
Which of the following symbols represents the standard system flowcharting symbol for a computer-generated document?

A) a B) b C) c D) d 38.
Data flow diagrams:
A)
Accomplish the same purpose as system flowcharts
B)
Are different from system flowcharts since they focus on a logical view of the information system
C)
Are useless for planning a new system
D)
Are never used in analyzing an existing system

39.
A general ledger:
A)
Is a chronological listing of an organization's transactions
B)
Is a listing of an organization's transactions, organized by account
C)
Does not include every account in an organization's chart of accounts
D)
Is the same thing as a transaction listing

40.
The financial accounting cycle ends with:
A)
The production of financial statements
B)
The production of a post closing trial balance
C)
The production of an adjusted trial balance
D)
Development of cash forecasts

41.
Which of the following is not a primary objective of coding systems today?
A)
To compress data
B)
To uniquely identify objects
C)
To convey special meanings that are not apparent to the public-at-large
D)
To use numbers instead of alphabetic characters in order to save on computer data storage costs

42.
Well-designed output reports are characterized by all but which of the following?
A)
They are useful
B)
They are conveniently formatted
C)
They never include graphs
D)
They are easily identifiable

43.
The sales process begins with:
A)
Placing an order with a vendor
B)
A customer order for goods or services
C)
Production of goods or services
D)
Delivery of goods or services

44.
The primary objective in processing revenues is to:
A)
Sell as many goods as possible
B)
Achieve timely and efficient cash collection
C)
Maximize an organization's sales orders
D)
Only sell goods to customers who can pay their bills

45.
Which of the following is not an objective of the purchasing process?
A)
Inventory control
B)
Fastest possible processing of payments to vendors
C)
Maintaining vendor records
D)
Forecasting cash outflows

46.
Which source document is used to request goods?
A)
Purchase order
B)
Shipping notice
C)
Purchase requisition
D)
Sales order

47.
The bill of lading:
A)
Reflects freight charges on goods shipped
B)
Signifies release of goods for shipment to customers
C)
Is sent to the customer with the purchase invoice
D)
Is used to control inventory

48.
Forecasting cash flows:
A)
Is an objective of transaction processing
B)
Is never considered an objective of transaction processing
C)
Is only possible in computerized AISs
D)
Is considered as a risky activity with which accountants should not be associated

49.
Which of the following statements best describes business process outsourcing?
A)
A company focuses on its core business processes and contracts with another firm to do the other processes
B)
Companies frequently outsource core business processes
C)
Due to networked enterprises and advanced technology, more employees may work from their homes or alternate locations
D)
Initially, companies engaged in business process outsourcing offered employees more opportunities to travel and more career choices for advancement

50.
Which of the following statements best describes a business process?
A)
It is a collection of activities in an organization that creates value
B)
The nature and type of processes might vary from industry to industry
C)
It is an activity that increases and/or decreases dollar amounts on the financial statements
D)
It is an economic event in the life of an organization

51.
Which of the following Business Process Management (BPM) software solutions is most often associated with the sales process?
A)
Enterprise resource management
B)
Integrated management
C)
Customer relationship management
D)
Supply chain management
E)
none of the above

52.
The primary objective of a manufacturing organization's production process is to:
A)
Maintain inventories at a zero level
B)
Convert raw materials into finished goods as efficiently as possible
C)
Make sure that there are no product defects
D)
Maintain the documentation and report on an organization's manufacturing process

53.
The largest expense item on a manufacturing organization's income statement is most likely to be:
A)
Salaries for production workers
B)
The depreciation associated with manufacturing equipment
C)
The cost of direct materials
D)
Cost of goods sold

54.
Job costing information systems are most appropriate for:
A)
Home builders
B)
Textbook publishers
C)
Beverage companies
D)
both a and b are appropriate industries for job costing systems

55.
Which of the following is not a concern of the financing process?
A)
Effective cash management
B)
Optimizing an organization's cost of capital
C)
Minimizing an organization's borrowings
D)
Projecting cash flows

56.
Inputs to the financing process include:
A)
Remittance advices, deposit slips, checks, and stock market data
B)
Remittance advices, deposit slips, checks, and receiving reports
C)
Deposit slips, checks, receiving reports, and purchase requisitions
D)
Deposit slips, checks, purchase requisitions, and financial institution profiles

57.
Time and billing systems are most often used by:
A)
Health care organizations
B)
Professional service organizations
C)
Retail organizations
D)
Not-for-profit organizations

58.
Which of the following is an example of a not-for-profit organization?
A)
Consulting firm
B)
State university
C)
Public hospital
D)
both b and c are correct

59.
Business process reengineering efforts sometimes fail because:
A)
Management gets too involved in the process
B)
Management is too optimistic regarding its expectations from its implementation
C)
Management support can never overcome employee resistance
D)
Employees will never accept change

60.
There is no complete, generally accepted definition of computer crime presently available.
A)
True
B)
False

61.
A “logic bomb” is a computer program that:
A)
Rewrites the instructions of a particular computer program
B)
Remains dormant until an event triggers it
C)
Contains an error in it
D)
“Blows away” (impresses) the boss when he or she sees it

62.
Which of these terms describes a computer program that remains dormant until triggered by some specific circumstance or date?
A)
Trojan horse program
B)
DDoS program
C)
Logic bomb
D)
Dial back system

63.
Much of what has been termed computer crime has merely involved the computer but probably would be more accurately classified as other types of crimes. A notable exception to this involves:
A)
Raiding dormant bank accounts
B)
Inventory misappropriation
C)
Embezzlement
D)
Theft of computer time

64.
The process of changing data before, during, or after they are entered into a computer system is called:
A)
Data diddling
B)
Salami technique
C)
Logic bombs
D)
Social engineering

65.
__________ describes the technique of stealing small amounts of money from a large number of accounts over time.
A)
Salami technique
B)
Buffet system
C)
Baloney method
D)
Dialing for dollars

66.
Which of the following best explains why we have incomplete information on computer crime?
A)
Most companies handle abuse as an internal matter
B)
Most newspapers no longer have any interest in reporting computer crime
C)
Documentation of abuses is usually poor
D)
We believe that most computer crime is not caught

67.
At present, we think that computer crime is:
A)
Falling
B)
Random
C)
Rising
D)
Flat

68.
Hacking involves:
A)
Stealing carbons of credit cards
B)
Destroying computer hardware
C)
Gaining illegal entry to computer files from remote locations
D)
Inserting a logic bomb in a computer program

69.
A computer virus is:
A)
A disease that computer programmers are very susceptible to
B)
A small processing routine that the user accidentally introduces into the system
C)
A misnomer, since unlike biological viruses, computer viruses cannot reproduce themselves
D)
Harmless

70.
Computer programs that can scan computer disks for virus-like coding are called:
A)
Antivirus software
B)
Virus software
C)
Detection software
D)
Friendly applets

71.
A forensic accountant is an accountant who:
A)
Performs autopsies on dead accountants
B)
Tries to explain why some accounts become inactive
C)
Investigates suspected fraud
D)
Performs court-approved accounting tasks for bankrupt companies

72.
Accounting “ethics” means:
A)
Whatever the corporate manual says it means
B)
Acting responsibly as long as no dollars are involved
C)
Only being honest; everything else is up for grabs
D)
Acting responsibly, no matter what

73.
An example of a conflict-of-interest situation is:
A)
Not working for a new company in a job similar to your last job
B)
Not talking to outsiders about general business concerns
C)
A decision where personal and corporate goals conflict
D)
Refusing to use a new computer if your colleagues are not provided similar systems

74.
Which of the following is not a common way to steal personal identity information?
A)
Altering computer records
B)
Using key logging software
C)
Dumpster diving
D)
Phishing

75.
Which of the following is a primary reason why accountants should be concerned about computer crime and abuse?
A)
They might lose their job if they don't detect computer crime or abuse in their organization
B)
They might lose their professional credibility and license if computer crime or abuse continues for a long time in their organization and they do not detect it
C)
They are responsible for designing, implementing, and monitoring the control procedures for AISs
D)
all of the above are equally important

76.
The term “smishing” means:
A)
Conducting identify theft by using text messages on cell phones
B)
Attempting to appear unnoticeable for an illegal act
C)
Stealing small amounts of monies from several computer accounts
D)
Masquerading as a corporate manager in order to obtain useful information

77.
Integrated accounting software programs generally include all of the following, except:
A)
Graphic reporting capabilities
B)
Internet connectivity
C)
One standardized chart of accounts
D)
The ability to handle multiple companies

78.
Enterprise-wide AISs:
A)
Almost never pay for themselves
B)
Do not include any more features than middle-range accounting software packages
C)
Are seldom used by multinational organizations
D)
Integrate an organization's financial functions with its other functional areas

79.
Which of the following is not an important feature of an enterprise system?
A)
Multiple databases
B)
Centralized database
C)
Functional integration
D)
Back-office functionality

80.
Which of the following is true regarding ERP costs?
A)
Enterprise systems tend to be less costly than integrated accounting software
B)
Enterprise systems are always less costly than best of breed software solutions
C)
Costs associated with reassigned employees have nothing to do with the true cost of an enterprise system
D)
There may be many costs that continue after systems implementation

81.
When we talk about a Value-Added Reseller, in the context of accounting and enterprise software, we are referring to an individual or business that:
A)
Usually assists small businesses select entry-level, small business software
B)
Is a qualified installer of mid-level or high-end accounting software
C)
Makes special arrangements with software vendors and is able to train customers
D)
both (b) and (c)
E)
none of the above

82.
An application service provider (ASP):
A)
Owns the software and processes your data on the ASPs computers
B)
Hosts the software and processes your data on your computer system
C)
Is an outsourcing company that processes your data, prepares reports that you specify, and then mails the results on a weekly basis
D)
none of the above

83.
When we talk about “front-office” capabilities of today's ERP systems, we are referring to which of the following?
A)
The payroll functions
B)
The human resource functions
C)
The administrative functions
D)
none of the above