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Hall 5e Reviewer Chp1

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Hall 5e Reviewer Chp1
Chapter 1—The Information System: An Accountant’s Perspective

TRUE/FALSE

1. Information is a business resource.

ANS: T

2. An information system is an example of a natural system.

ANS: F

3. Transaction processing systems convert non-financial transactions into financial transactions.

ANS: F

4. Information lacking reliability may still have value.

ANS: F

5. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting.

ANS: F

6. The Management Reporting System provides the internal financial information needed to manage a business.

ANS: T

7. Most of the inputs to the General Ledger System come from the Financial Reporting System.

ANS: F

8. When preparing discretionary reports, organizations can choose what information to report and how to present it.

ANS: T

9. Retrieval is the task of permanently removing obsolete or redundant records from the database.

ANS: F

10. Systems development represents 80 to 90 percent of the total cost of a computer system.

ANS: F

11. The database administrator is responsible for the security and integrity of the database.

ANS: T

12. A backbone system is completely finished, tested, and ready for implementation.

ANS: F

13. The internal auditor represents the interests of third-party outsiders.

ANS: F

14. Information Technology (IT) audits can be performed by both internal and external auditors.

ANS: T

15. The single largest user of computer services is the personnel function.

ANS: F

16. Increased control is one of the key advantages of distributed data processing.

ANS: F

17. The flat-file approach is most often associated with so-called legacy systems.

ANS: T

18. In a flat-file system, files are easily shared by users.

ANS: F

19. Legacy systems were eliminated in the effort to make systems Y2K compliant.

ANS: F

20. One of the greatest disadvantages of database systems is that all data is always available to all users.

ANS: F

21. Under SOX legislation

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