TEST BANK For Accounting Information Systems 4th Edition by Vernon Richardson, Verified Chapters 1 - 17, Complete Newest Version.
TEST BANK For Accounting Information Systems 4th Edition by Vernon Richardson, Verified Chapters 1 - 17, Complete Newest Version.
TEST BANK For Accounting Information Systems 4th Edition by Vernon Richardson, Verified Chapters 1 - 17, Complete Newest Version.
TEST BANK For Accounting Information Systems 4th Edition by Vernon Richardson, Verified Chapters 1 - 17, Complete Newest Version.
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TEST BANK For Accounting Information Systems 4th Edition by Vernon Richardson, Verified Chapters 1 - 17, Complete Newest Version.pdf
1. TEST BANK For Accounting Information
Systems, 4th Edition by Vernon
Richardson, Verified Chapters 1 - 17,
Complete
2. Chapter 1: Accounting Information Systems and Firm Value
Chapter 2: Data Analytics: Addressing Accounting Questions with
Data Chapter 3: Data Analytics: Data Visualizations
Chapter 4: Process Modeling and Documentation
Tools Chapter 5: Data Modeling and Control Concepts
Chapter 6: Relational Databases and Enterprise
Systems Chapter 7: Sales and Collections Business
Process Chapter 8: Purchases and Payments Business
Process Chapter 9: Conversion Business Process
Chapter 10: Integrated Project
Chapter 11: Accounting Information Systems and Internal
Controls Chapter 12: Cybersecurity and Computer Fraud
Chapter 13: Monitoring and Auditing AIS
Chapter 14: eXtensible Business Reporting Language (XBRL)
Chapter 15: Emerging Technologies: Blockchain and AI
Automation
Chapter 16: The Balanced Scorecard and Business Value of Information Technology
Chapter 17: Justifying and Planning IT Initiatives Using Project Management
Techniques
3. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page1
Chapter 1 Accounting Information Systems and Firm Value
1) Accounting and Finance is a primary activity in the value
chain. ANSWER: FALSE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
2) Accounting Information Systems at this date are all
computerized. ANSWER: FALSE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
3) Business value includes all those items, events and interactions that determine the
financial health and well-being of the firm.
ANSWER: TRUE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
4) The Certified Information Technology Professional (CITP) is a professional designation
for those with a broad range of technology knowledge and does not require a CPA.
ANSWER: FALSE
Diff: 1
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain
certifications related to accounting information systems.
Bloom's: Remember
AACSB: Reflective
Thinking
AICPA: BB Industry; FN Decision Making
5) The Certified Information Systems Auditor (CISA) is a professional designation
generally sought by those performing IT audits.
ANSWER: TRUE
Diff: 1
Topic: Role ofAccountants in Accounting Information Systems
4. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page2
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain
certifications related to accounting information systems.
Bloom's: Remember
AACSB: Reflective
Thinking
AICPA: BB Industry; FN Decision Making
5. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page3
6) Information is defined as being data organized in a meaningful way that is useful to
the user. ANSWER: TRUE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
7) Data is defined as being information organized in a meaningful way that is useful to
the user. ANSWER: FALSE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
8) A systems analyst analyzes a business problem that might be addressed by an
information system and recommends software or systems to address that problem.
ANSWER: TRUE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value
chain. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
9) A value chain is defined as the flow of materials, information, payments, and
services from customer to supplier.
ANSWER: FALSE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
10) Relevant information is that information that is free from bias
and error. ANSWER: FALSE
Diff: 1
Topic: Definition ofAccounting Information Systems; Attributes of Useful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful
information. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
6. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page4
11) The characteristics of relevant information include predictive value, feedback value and
timeliness. ANSWER: TRUE
Diff: 1
Topic: Definition ofAccounting Information Systems; Attributes ofUseful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful
information. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
12) The characteristics of reliable information are that the information is verifiable, without
bias and timely.
ANSWER: FALSE
Diff: 1
Topic: Definition ofAccounting Information Systems; Attributes ofUseful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful
information. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
13) Information overload is defined as the difficulty a person faces in understanding a
problem and making a decision as a consequence of too much information.
ANSWER: TRUE
Diff: 1
Topic: Definition of Accounting Information Systems; Attributes of Useful Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
14) The main financial benefit of Customer Relationship Management practices reduces
the cost of goods sold.
ANSWER: FALSE
Diff: 1
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock
prices. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
15) An efficient Enterprise System can significantly lower the cost of support processes
included in sales, general, and administrative expenses.
ANSWER: TRUE
Diff: 1
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock
prices. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
7. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page5
16) An accounting information system (AIS) is defined as being an information system that
records, processes and reports on transactions to provide financial and nonfinancial
information for decision making and control.
ANSWER: TRUE
Diff: 1
Topic: Definition ofAccounting Information Systems
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful
information. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
17) An enterprise system is a centralized database that collects data from throughout the
firm. This includes data from orders, customers, sales, inventory and employees.
ANSWER: TRUE
Diff: 1
Topic: AIS and Internal Business Processes
Learning Objective: 01-06 Describe howAIS assists the firm's internal business
processes. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
18) Outbound logistics are the activities associated with receiving and storing raw materials
and other partially completed materials, and distributing those materials to
manufacturing when and where they are needed.
ANSWER: FALSE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value
chain. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
19) Service Activities as defined in the value chain are those activities that provide the
support of customers after the products and services are sold to them (e.g. warranty
repairs, parts, instruction manuals, etc.).
ANSWER: TRUE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value
chain. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
20) A well-designed and well-functioning AIS can be expected to create value by providing
relevant information helpful to management to increase revenues and reduce
expenses.
ANSWER: TRUE
Diff: 1
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock
8. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page6
prices. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
9. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page7
21) Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue
Service is an example of discretionary information.
ANSWER: FALSE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
22) An enterprise system is primarily used to manage and nurture a firm's interactions with
its current and potential clients.
ANSWER: FALSE
Diff: 1
Topic: AIS and Internal Business Processes
Learning Objective: 01-06 Describe howAIS assists the firm's internal business processes.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
23) The Sarbanes-Oxley Act of 2002 is a federal law in the United States that set new and
enhanced standards for all U.S. public companies, their management and public
accounting firms.
ANSWER: TRUE
Diff: 1
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain
certifications related to accounting information systems.
Bloom's: Remember
AACSB: Reflective
Thinking
AICPA: BB Industry; FN Decision Making
24) CRM software often includes the use of database marketing tools to learn more
about the customers and to develop strong firm-to-customer relationships.
ANSWER: TRUE
Diff: 1
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business
processes. Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
25) The Certified Information Technology Professional is the position created by the
AICPA to recognize CPAs who have the ability to provide skilled professional
services on Information Technology.
ANSWER: TRUE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain
10. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page8
certifications related to accounting information systems.
Bloom's: Remember
AACSB: Reflective
Thinking
AICPA: BB Industry; FN Decision Making
11. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page9
26) Accounting information systems:
A) Are always computerized.
B) Report only accounting information.
C) Include records, processes and reports.
D) Are for computer
games. ANSWER: C
Diff: 2
Topic: Definition ofAccounting Information Systems
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful
information. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
27) Which of the following is not a characteristic of useful information?
A) Easy to understand.
B) Feedback value.
C) Timeliness.
D) Representational
Faithfulness. ANSWER: A
Diff: 2
Topic: Attributes of Useful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful
information. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
28) Which of the following are considered to be mandatory information required by a
regulatory body?
A) Financial reports for the Securities and Exchange Commission.
B) The amount of taxes saved by a merger.
C) The total dollar value of fireworks that are sold on July 4.
D) The cost to build an all-new Starbucks restaurant in Abu
Dhabi. ANSWER: A
Diff: 2
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
29) The correct order of effects in the value chain are:
A) Inbound Logistics → Operations → Service.
B) Inbound Logistics → Outbound Logistics → Marketing & Sales.
C) Inbound Logistics → Operations → Outbound Logistics.
D) Inbound Logistics → Operations →
Shipping. ANSWER: C
Diff: 2
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
12. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page10
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
13. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page11
30) Which designation would be most appropriate for those professionals possessing IT
audit, control and security skills?
A) Certified Internal Auditor (CIA).
B) Certified Public Accountant (CPA).
C) Certified Information Technology Professional (CITP).
D) Certified Information Systems Auditors
(CISA). ANSWER: D
Diff: 2
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain
certifications related to accounting information systems.
Bloom's: Understand
AACSB: Reflective
Thinking
AICPA: BB Industry; FN Decision Making
31) Which designation is for CPAs with a broad range of technology knowledge and
experience?
A) Certified Internal Auditor (CIA).
B) Certified Public Accountant (CPA).
C) Certified Information Technology Professional (CITP).
D) Certified Information Systems Auditors
(CISA). ANSWER: C
Diff: 2
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain
certifications related to accounting information systems.
Bloom's: Understand
AACSB: Reflective
Thinking
AICPA: BB Industry; FN Decision Making
32) A supply chain:
A) Refers to the supplies needed to build products.
B) Refers to the flow of materials, information, payments and services.
C) Is similar in function and purpose to the value chain.
D) Does not apply to a service firm like an accounting
firm. ANSWER: B
Diff: 2
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business
processes. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
14. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page12
33) A supply chain system does not include information about:
A) Current customers.
B) Prospective customers.
C) Availability of inventory.
D) Current
suppliers. ANSWER:
B
Diff: 2
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business
processes. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
34) The income statement line item most likely affected by an AIS investment in enterprise
systems would be:
A) Revenues.
B) Cost of Goods Sold.
C) Selling, General and Administrative Expenses.
D) Unearned
Revenue. ANSWER: C
Diff: 2
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
35) The income statement line item most likely affected by an AIS investment in supply
chain that would interface with suppliers would be:
A) Revenues.
B) Cost of Goods Sold.
C) Selling, General and Administrative Expenses.
D) Research and Development
Expenses. ANSWER: B
Diff: 2
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
15. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page13
36) The IT strategic roles of AIS investments are classified as:
A) Automate, Informate, Transform.
B) Value creation, Value Destruction, Value Neutral.
C) Digitize, Report, Transform.
D) Automate, Digitize,
Transport. ANSWER: A
Diff: 2
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
37) According to a recent study, the transform IT strategic role is defined as systems that:
A) Replace human labor in automating business processes.
B) Provide information about business activities to all employees.
C) Provide information about business activities to senior management.
D) Fundamentally redefine business processes and
relationships. ANSWER: D
Diff: 2
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
38) According to a recent study, the informate-up IT strategic role is defined as systems that:
A) Replace human labor in automating business processes.
B) Provide information about business activities to all employees.
C) Provide information about business activities to senior management.
D) Fundamentally redefine business processes and
relationships. ANSWER: C
Diff: 2
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
39) The income statement account most likely affected by an AIS investment in customer
relationship management (CRM) would be:
A) Revenues.
B) Cost of Goods Sold.
C) Selling, General and Administrative Expenses.
D) Unearned
Revenue. ANSWER: A
Diff: 2
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
16. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page14
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
17. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page15
40) Many hospitals and doctor's offices are beginning to digitize the medical records of their
patients. This is an example of the strategic role.
A) Automate.
B) Informate - up.
C) Transform.
D) Informate -
down. ANSWER: A
Diff: 2
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
41) EBay uses information technology to sell goods on the internet. This would be an
example of the
strategic role.
A) Automate.
B) Informate - up.
C) Transform.
D) Informate -
down. ANSWER: C
Diff: 2
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
42) The Information Value Chain is defined as:
A) The flow of materials, information, payments, and services.
B) The use of computer technology to provide information about business
activities to employees across the firm.
C) The overall transformation of data from a business need to the ultimate decision.
D) A centralized database that collects data from throughout
the firm. ANSWER: C
Diff: 2
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
18. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page16
43) Business Value is defined as:
A) The monetary value of a business.
B) Items, events and interactions that determine the financial health and well-being of
the firm.
C) The cost to acquire a business by an outsider.
D) The overall value of taking data and transforming it in to information needed for
decision making.
ANSWER: B
Diff: 2
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
44) Customer Relationship Management is defined as:
A) A system used to manage and nurture a firm's interactions with its current and
potential customers.
B) A system used to track a customer's past purchases.
C) A system used to connect a firm's suppliers with a firm's customers.
D) A system used to advertise current items on sale to
customers. ANSWER: A
Diff: 2
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business
processes. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
45) Support activities in the value chain do not include:
A) Firm Infrastructure.
B) Human Resource Management.
C) Procurement.
D) Accounting and
Finance. ANSWER: D
Diff: 2
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
19. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page17
46) The role of accountants in accounting information systems include all except:
A) User.
B) Manager.
C) Operator.
D) Evaluato
r. ANSWER:
C
Diff: 2
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain
certifications related to accounting information systems.
Bloom's: Understand
AACSB: Reflective
Thinking
AICPA: BB Industry; FN Decision Making
47) A simple information system includes all but the following elements except:
A) Processing.
B) Storage.
C) Input.
D) Reportin
g. ANSWER:
D
Diff: 2
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
48) Activity-based costing is an example of:
A) Information overload.
B) Mandatory information.
C) Discretionary information.
D) Enterprise
System. ANSWER: C
Diff: 2
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
49) An example of an AIS that primarily addresses internal business processes includes:
A) Supply chain software.
B) Customer relationship management software.
C) B2B transaction software.
D) Enterprise
systems. ANSWER: D
20. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page18
Diff: 2
Topic: AIS and Internal Business Processes
Learning Objective: 01-06 Describe howAIS assists the firm's internal business
processes. Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
21. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page19
50) Bob's manager complains that Bob suffers from "Analysis Paralysis;" that is, he spends
too much time reviewing endless reports and is reluctant to make decisions. Bob most
likely suffers from
.
A) Data gridlock.
B) Discretionary information.
C) Information overload.
D) Data
redundancy.
ANSWER: C
Diff: 2
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
51) Which of the following systems would a company be most likely to employ for the
primary purpose of generating additional sales revenue?
A) MDBMS.
B) CRM.
C) SCM.
D) OCR.
ANSWER:
B
Diff: 2
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business processes.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
52) The primary transformation of data into information takes place in which of the
following activities?
A) Input.
B) Storage.
C) Processing.
D) Outpu
t. ANSWER:
C
Diff: 2
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
22. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page20
53) Discretionary information is most likely to be used in which of the following activities?
A) Preparing required Environmental Protection Agency emissions reports.
B) Filing a 10-K with the SEC.
C) Management decision-making.
D) Payroll tax
reporting. ANSWER: C
Diff: 2
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
54) Which of the following is not a primary activity in the Value Chain?
A) Outbound Logistics.
B) Marketing.
C) Inbound Logistics.
D) Information
Technology. ANSWER: D
Diff: 2
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
55) One of the most important ways that ERPs benefit organizations and their business
processes is:
A) Current information is made available to all users involved in the activities and
decisions associated with a company's business processes.
B) Information is stored in many specialized, distributed databases that each serve
separate business processes.
C) Reducing the amount of time to complete business processes by eliminating all
controls associated with the processes.
D) Preventing external business partners from accessing the
organization's data. ANSWER: A
Diff: 2
Topic: AIS and Internal Business Processes
Learning Objective: 01-06 Describe howAIS assists the firm's internal business
processes. Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
23. ACCOUNTING INFORMATION SYSTEMS (RICHARDSON)
Page15
56) One common way of measuring the effectiveness of the Supply Chain is through the
fill rate. Which of the following best describes the fill rate?
A) The percentage, in monetary value, of a supplier's order which is actually
delivered to the organization.
B) The number of items per hour that receiving employees can move from the
receiving dock to the warehouse.
C) The rate at which the stock in warehouse storage bins increases.
D) The average amount of time it takes for the organization to fulfill customers'
orders. ANSWER: A
Diff: 2
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business
processes. Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
57) Investors reward companies most that announce IT initiatives with which type of strategic
role?
A) Automate.
B) Informate – up.
C) Transform.
D) Informate –
down. ANSWER: C
Diff: 2
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
58) A dental practice implemented an upgrade to its AIS that provides the dentists with daily
and weekly patient and financial summaries. The practice's upgrade is an example of
which IT strategic role?
A) Automate.
B) Informate – up.
C) Transform.
D) Informate –
down. ANSWER: B
Diff: 2
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock
prices. Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
24. Page16
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
59) Which of the following most accurately describes IFAC's description of accounting and
IT?
A) IT is an important peripheral discipline to accounting.
B) Accounting and IT are indistinguishable from one another.
C) It is difficult to conceive of accounting independent from IT.
D) Accounting is an important peripheral discipline
to IT. ANSWER: C
Diff: 2
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain
certifications related to accounting information systems.
Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
60) Which of the following diagrams most accurately illustrates an information
system? A)
B)
C)
25. Page17
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
D)
ANSWER: C
Diff: 2
Topic: Definition ofAccounting Information Systems
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful
information. Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
61) The Sarbanes-Oxley Act of 2002 requires that a company's attest auditors be able to
perform which of the following activities?
A) Evaluate the internal controls in an AIS.
B) Assess the value of a company's IT assets.
C) Take over the company's AIS if necessary.
D) Design and implement the controls used in the
AIS. ANSWER: A
Diff: 2
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain
certifications related to accounting information systems.
Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
62) Consider the non-profit organization Doctors without Borders (Médecins Sans
Frontières), a Nobel Peace Prize winning organization that provides medical services in
war zones and developing countries. For this type of organization, which of the following
would likely be the best measure of business value?
A) Fund balance (i.e., the net of revenues less expenditures).
B) Lives saved.
C) Donations raised.
D) Volunteers
deployed. ANSWER: B
Diff: 2
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
26. Page18
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
63) Effective use of Supply Chain Management software is generally expected to provide
all of the following benefits except:
A) Reduced inventory carrying costs.
B) Lower production costs.
C) Reduced gross margins.
D) Better communications with
suppliers. ANSWER: C
Diff: 2
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business processes.
Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
64) Which of the following is usually the primary objective for companies when creating
mandatory information?
A) The value of the information exceeds the cost to produce it.
B) Minimize cost.
C) Improve business decisions.
D) Ensure proper controls over business
processes. ANSWER: B
Diff: 2
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information
system. Bloom's: Apply
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
65) After a college football game, a box score is produced detailing the number of yards
passing and running, receptions made and the number of interceptions and fumbles
lost (among other statistics). Using the characteristics of useful information (including
relevance and reliability), please explain how this box score meets (or does not meet)
the characteristics of useful information. How would the football coach use this
information to prepare for the next game, decide which players to start, etc.?
ANSWER: Answers will vary, especially with respect to their knowledge of American
Football! The instructor may wish to include other sports or other activities
where a box score might be produced. In American Football, yards per carry,
turnover margin, interceptions, fumbles, run vs. pass plays, 3rd down plays
and success, yards per catch, yards after catch, number of tackles, etc. would
all be useful.
Diff: 3
Topic: Definition ofAccounting Information Systems, Attributes of Useful Information
Learning Objective: 01-01 Define an accounting information system and explain characteristics of useful
information. Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
27. Page19
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
66) List and explain three ways that AIS affects the income statement and the firm's
profitability. ANSWER: Answers will vary but could include some of these items.
Income Statement Effect of AIS on Income Statement
Revenues Customer Relationship
Management techniques could
attract new customers, generating
additional sales revenue.
Less: Cost of Goods Sold Supply Chain Management Software
allows firms to carry the right
inventory and have it in the right
place at the right time. This, in turn,
will lower obsolescence as well as
logistics and procurement costs.
Gross Margin
Less: Selling, General and
Administrative Expenses
(SG&A)
An efficient Enterprise System can
significantly lower the cost of
support processes included in sales,
general, and administrative
expenses.
Less: Interest Expense Supply Chain Management Software
allows the firm to carry less inventory.
The less inventory the firm has to
carry leaves less assets to finance, and
may possibly reduce debt and its
related interest.
Net Income All combined, a well-designed and
well-functioning AIS with
investments in Enterprise Systems,
Supply Chain Management and/or
Customer Relationship
Management can be expected to
improve net income
Diff: 3
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
28. Page20
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
67) Some would argue that the role of accounting is simply as an information provider.
Others suggest that accountants serve the role of business analyst. Which role produces
more value for a company like Starbucks? In the area of accounting information systems,
what specifically can the accountant do to serve as a business analyst to help address
business opportunities?
ANSWER: Answers will vary! Accountants carry out an important function by providing
information.
However, it is arguable that accountants can add value to a company by serving as
a business analyst; that is, understand what information needs to be collected and
then help in its interpretation.
Diff: 3
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain
certifications related to accounting information systems
Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
68) Explain the types of discretionary information a company like Google would collect
from its accounting information system.
ANSWER: Answers will vary! Google might want some managerial accounting information
about how various products and lines of business have done, the cost of production
for various advertising products, the cost of employee incentives (stock options,
etc.) that would all be useful in helping it manage its business.
Diff: 3
Topic: AIS and Internal Business Processes
Learning Objective: 01-06 Describe howAIS assists the firm's internal business processes.
Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
69) Why would the transform IT strategic role be more impactful on stock price than the
automate IT strategic role?
ANSWER: Answers will vary! A potential answer might include that automate IT strategic
role just automates something that was done before by hand. This generally
represents a cost reduction rather than a new revenue opportunity. The transform
IT strategic involves using technology to establish a new business model. New
business models, while fraught with risk, often suggest new ways to make
money that were not envisioned before and thus might encourage shareholders
to pay more for a company's stock.
Diff: 3
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact ofAIS on firm profitability and stock prices.
Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
29. Page21
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
70) Stephen Gillett, Starbucks CIO, argues that his most crucial duty is to enhance Starbucks'
ability to mine its customer data to help "reignite our passion with our customers."
Starbucks used loyalty cards (Starbucks' Reward cards) and surveys to track its
customers' purchases and build profiles of their customers as mentioned in the opening
chapter vignette. Why is this a good example of customer relationship management
(CRM)?
ANSWER: Answers will vary. Using loyalty cards will help Starbucks understand its
customers; that is, what they buy, when they buy it, where they buy it, in what
quantities, etc., which is exactly the role of CRM.
Diff: 3
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business processes.
Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
71) Michael Dell of Dell Computer explained:
"We tell our suppliers exactly what our daily production requirements are so it is not, "Well, every
two weeks deliver 5,000 to this warehouse, and we'll put them on the shelf, and then we'll take
them off the shelf." It is, "Tomorrow morning we need 8,562, and deliver them to door number
seven by 7 am."
How does the supply chain management software allow this to happen? And how does it
save Dell money?
ANSWER: Answers will vary. The supply chain allows Dell to forecast demand for its
various products and share that demand with its suppliers. Suppliers will know
the long-term plan and thus not be surprised when an actual order arrives. Dell
saves money by not having to hold inventory too long saving investment dollars
and warehouse space.
Diff: 3
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business processes.
Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
72) Amazon.com is one of the best at fostering its interaction with their customers by keeping
a record of their past purchases and product searches and using that information to
recommend other similar products for the customer to consider. How can they use that
information to help them in their marketing efforts?
ANSWER: Answers will vary. By getting this information, Amazon understand its
customers; that is, what they buy, when they buy it, in what quantities, etc., and
can use it to encourage its customers to buy more products that computer models
suggest they might be interested in.
Diff: 3
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business processes.
Bloom's: Analyze
AACSB: Reflective Thinking
31. Page23
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
73) The Certified Information Systems Auditors (CISA) designation identifies those
professionals possessing IT audit, control and security skills. How do you think a
professional designation is helpful for IT auditors?
ANSWER: Answers will vary. The answer should emphasize the need for specialized skills
in order to fully understand and audit an AIS and the technology surrounding it.
The CISA designation recognizes that the IS auditor has demonstrated those skills
through demonstration of knowledge and practical experience.
Diff: 3
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain
certifications related to accounting information systems
Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
74) The American Institute of Certified Public Accountants (AICPA) and International
Federation of Accountants (IFAC) assumes that, at a minimum, all accountants will be
proficient in the AIS user role and at least one other role listed above (manager or
designer or evaluator). Why would the AICPA and IFAC expect this proficiency?
ANSWER: Answers will vary. A potential answer might indicate that all accountants are
users in some sense; at a minimum, they will request and use information in the AIS
to perform their jobs, no matter which role they play. The additional role they play
will depend on the function being performed, whether as an employee of a
company, an auditor for a CPA firm, a tax advisor, an AIS consultant, or other
some other function.
Diff: 3
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain
certifications related to accounting information systems
Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
75) The International Federation of Accountants says:
"IT has grown (and will continue to grow) in importance at such a rapid pace and with such far
reaching effects that it can no longer be considered a discipline peripheral to accounting. Rather,
professional accounting has merged and developed with IT to such an extent that one can hardly
conceive of accounting independent from IT."
In your opinion, why is accounting now interdependent with IT?
ANSWER: Answers will vary. A potential answer might reflect information presented in
the class or textbook about the IT nature of accounting and the importance of
accountants being proficient in roles associated with IT.
Diff: 3
Topic: Role ofAccountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information and explain
certifications related to accounting information systems
Bloom's: Analyze
AACSB: Reflective Thinking
33. Page25
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
76) Wal-Mart's Retail Link database is one of the world's largest databases and allows
many of their suppliers to view real-time sales data of their products for each store.
This allows suppliers to assess the demand for their products and to optimize their
own level of inventory and related logistics costs. How is this cost savings ultimately
passed on to Wal-Mart and its customers?
ANSWER: Answers will vary. A potential answer might reflect that Retail Link saves Wal-
Mart and its supplier's money due to its assessment of what sells and what does
not sell. This helps suppliers to save money and Wal-Mart thus requires that this
savings be shared between suppliers, Wal-Mart, and Wal-Mart suppliers.
Diff: 3
Topic: AIS and External Business Processes
Learning Objective: 01-07 Assess howAIS facilitates the firm's external business
processes. Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
77) Business value is defined as all items, events and interactions that determine the
financial health and well-being of the firm. This value may come from suppliers,
customers or employees or even information systems.
How would a not-for-profit group like the International Red Cross define business
value for its group?
ANSWER: Answers will vary. A not-for-profit group like the International Red Cross might
define value by the number of lives saved, the number of liters of blood in storage,
its ability to react to a disasters, etc.
Diff: 3
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Analyze
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
34. Page26
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
Chapter 2 Accountants as Business Analysts
1) Accountants now face a challenge of helping businesses optimize
processes. ANSWER: TRUE
Diff: 1
Topic: Changing Roles of Accountants in Business
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles
require knowledge of technology and business processes.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
2) To be valuable business partners, accountants must understand how the business
delivers value to its employees.
ANSWER: FALSE
Diff: 1
Topic: Changing Roles of Accountants in Business
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles
require knowledge of technology and business processes.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
3) A business process constrains business
rules. ANSWER: FALSE
Diff: 1
Topic: Value ofBusiness Models
Learning Objective: 02-03 Recognize the value of business models.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
4) A business model is typically a graphical depiction of the essential business process
information. ANSWER: TRUE
Diff: 2
Topic: Value ofBusiness Models
Learning Objective: 02-03 Recognize the value of business models.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
5) Documentation can be thought of as a tool for information transmission and
communication. ANSWER: TRUE
Diff: 2
Topic: Business Process Documentation
Learning Objective: 02-02 Understand the importance of business process
documentation. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
35. Page27
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
6) Documentation helps with training but won't help with regulatory
compliance issues. ANSWER: FALSE
Diff: 2
Topic: Business Process Documentation
Learning Objective: 02-02 Understand the importance of business process
documentation. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
7) Models should be simpler than the processes and systems they
depict. ANSWER: TRUE
Diff: 2
Topic: Value ofBusiness Models
Learning Objective: 02-03 Recognize the value of business
models. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
8) Because business models are simpler than the processes they depict, they are
limited in their ability to integrate local views of a process.
ANSWER: FALSE
Diff: 2
Topic: Value ofBusiness Models
Learning Objective: 02-03 Recognize the value of business
models. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
9) Activity models are a relatively new process
modeling tool. ANSWER: FALSE
Diff: 1
Topic: Characteristics ofActivityModels
Learning Objective: 02-04 Articulate the characteristics of activity models.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
10) In Business Process Modeling Notation (BPMN), activities are named with a short
verb phrase placed within the rectangle.
ANSWER: TRUE
Diff: 1
Topic: Characteristics ofActivityModels
Learning Objective: 02-04 Articulate the characteristics of activity models.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
36. Page28
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
11) Business Process Modeling Notation (BPMN) activity models typically show the
sequence of flow from right to left and top to bottom.
ANSWER: FALSE
Diff: 1
Topic: Characteristics ofActivityModels
Learning Objective: 02-04 Articulate the characteristics of activity models.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
12) Business Process Modeling Notation (BPMN) activity diagrams depict events as
circles. ANSWER: TRUE
Diff: 1
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
13) Business Process Modeling Notation (BPMN) activity diagrams depict activities as
circles. ANSWER: FALSE
Diff: 1
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
14) An activity can depict a single action or some logical combination of actions
depending on the required level of detail to achieve the objectives of the business
process analysis.
ANSWER: TRUE
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
15) Gateways only show decisions and possible branching as a result of the
decision. ANSWER: FALSE
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
37. Page29
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
16) Swimlanes (or lanes) identify participants, e.g., functions or departments, in a
process. ANSWER: TRUE
Diff: 1
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
17) Business Process Modeling Notation (BPMN) activity diagrams are conceptually
similar to process maps.
ANSWER: TRUE
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
18) Business Process Modeling Notation (BPMN) start events are shown using ovals and
flowchart start events are shown using circles.
ANSWER: FALSE
Diff: 1
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
19) Opportunity flowcharts identify opportunities for process improvement by separating
value-added from non-value-added activities.
ANSWER: TRUE
Diff: 2
Topic: Characteristics ofActivityModels
Learning Objective: 02-04 Articulate the characteristics of activity
models. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
20) Data Flow Diagrams start with a circle indicating the start
event. ANSWER: FALSE
Diff: 1
Topic: Characteristics ofActivityModels
Learning Objective: 02-04 Articulate the characteristics of activity
models. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
38. Page30
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
21) Which of the following is not a Stewardship and Reporting role of the
Accounting/Finance Function in Business?
A) Human Resource management.
B) Regulatory compliance.
C) Tax returns.
D) Statutory
reporting. ANSWER:
A
Diff: 1
Topic: Changing Roles of Accountants in Business
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles
require knowledge of technology and business processes.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
22) Which of the following is not a Business Management Support role of the
Accounting/Finance Function in Business?
A) Management information.
B) Planning, budgeting and forecasting.
C) Financial consolidation, reporting and analysis.
D) Investment
appraisal. ANSWER: C
Diff: 1
Topic: Changing Roles of Accountants in Business
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles
require knowledge of technology and business processes.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
23) Which of the following is not an Accounting/Finance Operations role of the
Accounting/Finance Function in Business?
A) Financial close – completing period end accounts.
B) Stakeholder assurance.
C) People management.
D) Financial consolidation, reporting and
analysis. ANSWER: B
Diff: 1
Topic: Changing Roles of Accountants in Business
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those
roles require knowledge of technology and business processes.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
39. Page31
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
24) Which of the following is not part of the business analysis process?
A) Ascertaining information about current and future business processes.
B) Using business process modeling tools.
C) Using IT to make finance and accounting processes more efficient and
effective.
D) Documenting current and future business
processes. ANSWER: C
Diff: 2
Topic: Business Process Documentation
Learning Objective: 02-02 Understand the importance of business process
documentation. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
25) Which of the following best describes a business model?
A) A simple, abstract representation of a business process or processes.
B) A sequence of business activities.
C) An evaluation of potential business process improvements.
D) None of the options are
correct. ANSWER: A
Diff: 2
Topic: Value ofBusiness Models
Learning Objective: 02-03 Recognize the value of business
models. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
26) Process documentation does not include which of the following?
A) Process models.
B) Business rules.
C) User manuals.
D) External audit
workpapers. ANSWER: D
Diff: 2
Topic: Business Process Documentation
Learning Objective: 02-02 Understand the importance of business process
documentation. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
27) Which of the following is not a purpose of documentation?
A) Training.
B) Determining staffing.
C) Describing current processes.
D) Establishing
accountability. ANSWER: B
Diff: 2
Topic: Business Process Documentation
Learning Objective: 02-02 Understand the importance of business process
41. Page33
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
28) Business models provide value in all of the following areas except which one?
A) Employee performance appraisal.
B) Managing complexity.
C) Specifying systems requirements.
D) Eliciting requirements for new
systems. ANSWER: A
Diff: 2
Topic: Value ofBusiness Models
Learning Objective: 02-03 Recognize the value of business models.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
29) Which of the following best describes the purpose of an activity model?
A) An activity model describes the sequence of workflow in a business process.
B) An activity model constrains and guides process operations.
C) An activity model depicts data structures.
D) None of the options are
correct. ANSWER: A
Diff: 2
Topic: Characteristics ofActivityModels
Learning Objective: 02-04 Articulate the characteristics of activity
models. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
30) Which of the following is not a common element of activity models regardless of the
specific modeling notation?
A) Events to start and stop the workflow.
B) Sequence of flow between tasks.
C) Multiplicities.
D) Decision points that affect the process
flow. ANSWER: C
Diff: 2
Topic: Characteristics ofActivityModels
Learning Objective: 02-04 Articulate the characteristics of activity
models. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
42. Page34
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
31) Which of the following is not a building block for Business Process Modeling Notation
(BPMN) diagrams?
A) Associations.
B) Events.
C) Gateways.
D) Sequence
flows. ANSWER: A
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
32) Which of the following best describes the purpose of an event in a Business Process
Modeling Notation (BPMN) activity diagram?
A) Shows where the work takes place.
B) Describes the sequence of workflow.
C) Affects the flow of the business process.
D) Controls branching and
merging. ANSWER: C
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
33) Which of the following best describes the purpose of a gateway in a Business Process
Modeling Notation (BPMN) activity diagram?
A) Shows where the work takes place.
B) Describes the sequence of workflow.
C) Affects the flow of the business process.
D) Controls branching and
merging. ANSWER: D
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
43. Page35
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
34) Which of the following symbols depicts an intermediate event?
A) An arrow.
B) A circle with a double line perimeter.
C) A rectangle.
D) A circle with a wide single line
perimeter. ANSWER: B
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
35) Which of the following symbols depicts an activity?
A) An arrow.
B) A circle with a double line perimeter.
C) A rectangle.
D) A circle with a wide single line
perimeter. ANSWER: C
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
36) Which of the following symbols is used to depict different organizations in one Business
Process Modeling Notation (BPMN) diagram?
A) Gateway.
B) Message flow.
C) Pool.
D) Intermediate
event. ANSWER: C
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
37) Which of the following best describes the purpose of swimlanes (or lanes)?
A) Depict different organizations involved in a process.
B) Depict different departments of the same organization in a process.
C) Depict interactions between organizations in a process.
D) Depict the sequence of tasks in a
process. ANSWER: B
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
45. Page37
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
38) Which of the following best describes a Business Process Modeling Notation (BPMN)
message flow?
A) Shows the sequence of activities in a process.
B) Shows interactions between participants in a process.
C) Affects the flow of a business process.
D) Shows branching and merging in a business
process. ANSWER: B
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
39) Which of the following best describes the difference between a Business Process
Modeling Notation (BPMN) gateway and a flowcharting decision diamond?
A) Only the decision diamond shows branching of the sequence flow.
B) The gateway only represents branching and not the decision that results in
branching.
C) Only the gateway shows branching of the sequence flow.
D) The decision diamond can depict more branching
options. ANSWER: B
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
40) Which of the following is a difference between Business Process Modeling Notation
(BPMN) activity diagrams and flowcharts?
A) BPMN symbols can show a variety of intermediate events that affect the sequence
flow.
B) Flowcharts have symbols to represent the start and end of a process.
C) BPMN diagrams show the sequence flow of activities.
D) Flowcharts can be annotated with
text. ANSWER: A
Diff: 2
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
46. Page38
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
41) In order to perform their required roles and be valuable business partners,
accountants must understand all of the following except:
A) How the business identifies and designs its products and services.
B) How the business collects data, summarizes it, and communicates business
information.
C) How the business delivers value, interacts with other businesses, and is a good
corporate citizen.
D) What risks the business faces, and how internal controls can mitigate
those risks. ANSWER: A
Diff: 1
Topic: Changing Roles of Accountants in Business
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles
require knowledge of technology and business processes.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
42) Which of the following best describes why the Sarbanes-Oxley Act of 2002 (SOX)
made documentation of business processes essential for businesses?
A) SOX mandates that accountants create the business rules and documentation
associated with a company's business processes.
B) SOX requires managers to assess and attest to the company's internal controls
structures and procedures.
C) SOX explicitly states that business processes must be documented.
D) SOX allows thorough documentation of business processes to act as a substitute
for a full review of internal control structures and procedures.
ANSWER: B
Diff: 1
Topic: Business Process Documentation
Learning Objective: 02-02 Understand the importance of business process
documentation. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
43) Which of the following best describes how business models help companies manage
complexity?
A) Because business models can't exceed one page, managers can understand how the
business works at a glance.
B) Although business models are a simplification of the actual processes they
represent, they incorporate the processes' essential elements.
C) Business models' limitations force managers to simplify the company's actual
processes.
D) Business models must display every detailed task and activity, which allows
managers to visualize the complexity inherent in its business processes.
ANSWER: B
Diff: 1
Topic: Value ofBusiness Models
Learning Objective: 02-03 Recognize the value of business models.
47. Page39
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
48. Page40
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
44) Activity models are analogous to which of the following?
A) The prototype for a new car model.
B) A blueprint.
C) The instructions in a recipe.
D) A car's steering
system. ANSWER: C
Diff: 1
Topic: Characteristics ofActivityModels
Learning Objective: 02-04 Articulate the characteristics of activity models.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
45) When creating a BPMN activity model, which of the following is most accurate?
A) Modeling is an artistic endeavor; therefore different modelers given the same set
of facts about a business process will likely develop very different models of
the process.
B) The resulting BPMN activity model should closely match the structure of the
subsequent database.
C) All activity models should include gateways.
D) Different modelers given the same set of facts about a business process should
develop similar models of the process.
ANSWER: D
Diff: 1
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
46) A pool in a BPMN activity model represents:
A) An entire organization/entity.
B) A department or functional area.
C) A specific individual.
D) A logical
activity. ANSWER:
A
Diff: 1
Topic: Identifying Participants in Business Process Diagrams
Learning Objective: 02-06 Use pools and lanes to identify process
participants. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
49. Page41
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
47) Message flows in BPMN activity diagrams indicate an exchange between:
A) Activities in the same swimlane.
B) Participants in different pools.
C) Gateways in different swimlanes.
D) Events in the same
pool. ANSWER: B
Diff: 1
Topic: Messages in BPMN
Learning Objective: 02-07 Apply message flows to show interactions between
pools. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
48) When connecting to an opaque external pool in a BPMN activity diagram, message flows
connect to:
A) The edge of the opaque pool.
B) The edge of the swimlane.
C) The nearest sequence flow.
D) The appropriate data
store. ANSWER: A
Diff: 1
Topic: Messages in BPMN
Learning Objective: 02-07 Apply message flows to show interactions between
pools. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
49) Which of the following is not a valid BPMN gateway type?
A) Parallel gateway.
B) Serial gateway.
C) Inclusive gateway.
D) Exclusive
gateway. ANSWER: B
Diff: 1
Topic: Extended Building Blocks for BPMN Diagrams and Modeling Concepts
Learning Objective: 02-08 Understand and apply flow object types.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
50. Page42
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
50) Which of the following BPMN shapes represents a Parallel
Gateway? A)
B)
C)
D)
ANSWER: B
Diff: 1
Topic: Extended Building Blocks for BPMN Diagrams and Modeling
Concepts Learning Objective: 02-08 Understand and apply flow object
types.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
51) Which of the following BPMN shapes represents an Error
Event? A)
B)
C)
D)
ANSWER: D
Diff: 1
Topic: Extended Building Blocks for BPMN Diagrams and Modeling
Concepts Learning Objective: 02-08 Understand and apply flow object
52. Page44
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
52) A boundary event in a BPMN activity model:
A) Takes place at the edge of a swimlane.
B) Occurs at the border of a pool.
C) Is attached to the edge of an activity.
D) Occurs as a message leaves a
pool. ANSWER: C
Diff: 1
Topic: Extended Building Blocks for BPMN Diagrams and Modeling
Concepts Learning Objective: 02-08 Understand and apply flow object
types.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
53) Which of the following BPMN shapes represents a parallel multi-
instance task? A)
B)
C)
D)
ANSWER: B
Diff: 1
Topic: Subprocesses and Repeating Activities
Learning Objective: 02-09 Recognize and model repeating
activities. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
53. Page45
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
54) Which of the following BPMN shapes represents a data
object? A)
B)
C)
D)
ANSWER: A
Diff: 1
Topic: Data Objects, Data Stores, and Associations
Learning Objective: 02-10 Understand and apply data objects and stores to model data created, updated,
transferred, and deleted in a process.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
54. Page46
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
55) Which of the following BPMN shapes represents a data
store? A)
B)
C)
D)
ANSWER: C
Diff: 1
Topic: Data Objects, Data Stores, and Associations
Learning Objective: 02-10 Understand and apply data objects and stores to model data created, updated,
transferred, and deleted in a process.
Bloom's: Remember
AACSB: Analytical
Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
56) Use the following description to create a Business Process Modeling Notation (BPMN)
activity diagram of Nora's process.
Nora accesses the Amazon.com website to purchase a favorite musician's latest album.
She searches for the musician's name. Amazon displays the results of the search, and
she selects the correct entry. She samples the music and then decides whether to
purchase the album. If she decides to purchase the album, then she must decide
whether to purchase a physical CD or just download the MP3 files.
If she decides to purchase the CD, she clicks on the buy now button. Since she is an
Amazon Prime member, she automatically receives free 2-day delivery and the item is
charged to her credit card. She then waits 2 days for the delivery of the CD. When it
arrives, she can enjoy the music.
If she decides to purchase the MP3, she selects that option and again clicks on the buy
now button. She is charged for the item and taken to a page to download her music. She
downloads the album, and then she can enjoy her music.
55. Page47
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
ANSWER: There could be several similar answers, but this is a basic solution:
Diff: 3
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams Bloom's: Apply
AACSB: Analytic
AICPA: BB Leveraging Technology; FN Leveraging Technology
56. Page48
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
57) Use the following description to create a Business Process Modeling Notation (BPMN)
activity diagram of Jeremy's process.
Jeremy is using his bank's online banking site to pay for his new phone. He logs onto
the bank's website by entering his user name and password, confirming his SiteKey.
After access to his account, he selects the Bill Pay tab. He searches to see of the phone
company is already listed in the "Pay To Accounts."
If the phone company is not listed, he clicks on the option to "Add a New Pay To
Account." He fills in the information for the phone company, including the name,
address, account number, and phone number. After completing the entry, he is taken
back to the list of "Pay To Accounts."
If the phone company is listed (or if he just completed entering the new account), he
enters the amount of the payment. Then, he selects the option to set up a recurring
payment. He enters the number of payments. Then, he selects the date that the
payment should be sent each month. He then logs out of the banks online banking
site and closes his browser.
ANSWER: There could be several similar answers, but this is a basic solution:
Diff: 3
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams Bloom's: Apply
AACSB: Analytic
AICPA: BB Leveraging Technology; FN Leveraging Technology
57. Page49
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
58) Use the following description to create a Business Process Modeling Notation (BPMN)
activity diagram of Caitlin's process.
Caitlin is planning to run in the local July 4th 5K run. She wants to register online, but she
forgot the websites URL. So, she navigates to Google and starts a search for the site. She
selects the registration site from the search results. Once at the site, she selects the option
to register for the 4th of July run. She fills in the registration form and provides her
credit card information for payment.
After completing her own registration, she decides to register the other members of her
team.
One-by-one, she enters the registration information for the team member and pays for
their entry. After completing all the registrations, she provides a user name and
password so she can return to the site to see their results after the race. She logs out of
the site and closes her browser.
ANSWER: There could be several similar answers, but this is a basic solution:
Diff: 3
Topic: Business Process Modeling Notation
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity)
diagrams Bloom's: Apply
AACSB: Analytic
AICPA: BB Leveraging Technology; FN Leveraging Technology
58. Page50
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
Chapter 3 Data Modeling
1) The Object Management Group maintains the standard for Unified Modeling
Language (UML) Class diagrams.
ANSWER: TRUE
Diff: 1
Topic: Structure Models
Learning Objective: 03-01 Understand the purpose of structure models.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
2) Unified Modeling Language (UML) Class diagrams describe the logical structure of a
database system.
ANSWER: TRUE
Diff: 1
Topic: Building Blocks for UML Class Diagrams
Learning Objective: 03-02 Understand and apply the building blocks for UML class (structure)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
3) A Class is a separately identifiable collection of business
relationships. ANSWER: FALSE
Diff: 1
Topic: Building Blocks for UML Class Diagrams
Learning Objective: 03-02 Understand and apply the building blocks for UML class (structure)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
4) In Unified Modeling Language (UML) Class diagrams, a Class is represented by a
rectangle. ANSWER: TRUE
Diff: 1
Topic: Building Blocks for UML Class Diagrams
Learning Objective: 03-02 Understand and apply the building blocks for UML class (structure)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
5) In Unified Modeling Language (UML) Class diagrams, Associations are represented
by dashed lines.
ANSWER: FALSE
Diff: 1
Topic: Building Blocks for UML Class Diagrams
Learning Objective: 03-02 Understand and apply the building blocks for UML class (structure)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
59. Page51
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
6) In Unified Modeling Language (UML) the options for minimum multiplicity values are
0, 1, and 2.
ANSWER: FALSE
Diff: 1
Topic: Multiplicities
Learning Objective: 03-03 Describe multiplicities for a UML class diagram.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
7) In Unified Modeling Language (UML) the options for maximum multiplicity values are
1 and *. ANSWER: TRUE
Diff: 1
Topic: Multiplicities
Learning Objective: 03-03 Describe multiplicities for a UML class diagram.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
8) In Unified Modeling Language (UML) the options for maximum multiplicity values are
0 and *. ANSWER: FALSE
Diff: 1
Topic: Multiplicities
Learning Objective: 03-03 Describe multiplicities for a UML class diagram.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
9) In Unified Modeling Language (UML) the options for minimum multiplicity values are
1 and *. ANSWER: FALSE
Diff: 1
Topic: Multiplicities
Learning Objective: 03-03 Describe multiplicities for a UML class diagram.
Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
10) In Unified Modeling Language (UML) attributes are characteristics of individual
instances of a Class.
ANSWER: TRUE
Diff: 2
Topic: Multiplicities
Learning Objective: 03-03 Describe multiplicities for a UML class diagram.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
60. Page52
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
11) In Unified Modeling Language (UML) primary keys cannot by
NULL. ANSWER: TRUE
Diff: 1
Topic: UML Class Models for Relational Database Design
Learning Objective: 03-04 Understand how to implement a relational database from a UML class
diagram. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
12) In Unified Modeling Language (UML) primary keys may be
blank. ANSWER: FALSE
Diff: 1
Topic: UML Class Models for Relational Database Design
Learning Objective: 03-04 Understand how to implement a relational database from a UML class
diagram. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
13) In Unified Modeling Language (UML) foreign keys allow tables to be linked
together in a database.
ANSWER: TRUE
Diff: 1
Topic: UML Class Models for Relational Database Design
Learning Objective: 03-04 Understand how to implement a relational database from a UML class
diagram. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
14) A generalization relationship models a grouping of things that share common
characteristics. ANSWER: TRUE
Diff: 1
Topic: Building Blocks for UML Class Diagrams
Learning Objective: 03-02 Understand and apply the building blocks for UML class (structure)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
15) An aggregation relationship is a form of generalization
relationships. ANSWER: FALSE
Diff: 1
Topic: Building Blocks for UML Class Diagrams
Learning Objective: 03-02 Understand and apply the building blocks for UML class (structure)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
61. Page53
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
16) Associations can indicate the roles that one Class takes in its business relationship
with another Class.
ANSWER: TRUE
Diff: 1
Topic: Building Blocks for UML Class Diagrams
Learning Objective: 03-02 Understand and apply the building blocks for UML class (structure)
diagrams. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
17) A database should have exactly the same number of tables as there are Classes in
the Unified Modeling Language (UML) Class diagram from which the database is
developed.
ANSWER: FALSE
Diff: 2
Topic: UML Class Models for Relational Database Design
Learning Objective: 03-04 Understand how to implement a relational database from a UML class
diagram. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
18) When building a database from Unified Modeling Language (UML) Class diagrams, each
instance of each Class becomes a row in the corresponding table.
ANSWER: TRUE
Diff: 2
Topic: UML Class Models for Relational Database Design
Learning Objective: 03-04 Understand how to implement a relational database from a UML class
diagram. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
19) Obligatory business rules state what should not
occur. ANSWER: FALSE
Diff: 1
Topic: Decision Requirements and Business Rules
Learning Objective: 03-05 Understand process decision requirements and how business rules support process
decisions. Bloom's: Remember
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
20) Business rules set criteria for branching in activity
models. ANSWER: TRUE
Diff: 2
Topic: Decision Requirements and Business Rules
Learning Objective: 03-05 Understand process decision requirements and how business rules support process
decisions. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
62. Page54
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
21) Which of the following is not something a model of database structures must be able to
describe?
A) The entities or things in the domain of interest.
B) The sequence that entities are accessed.
C) The cardinalities that describe how many instances of one entity can be related to
another.
D) The attributes or characteristics of the entities and
relationships. ANSWER: B
Diff: 2
Topic: Structure Models
Learning Objective: 03-01 Understand the purpose of structure models.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
22) Which of the following would be least likely to be represented with a Unified Modeling
Language (UML) Class?
A) Trucks.
B) The number of trucks used in the delivery.
C) The employee driving the truck.
D) The customer receiving the
delivery. ANSWER: B
Diff: 2
Topic: Building Blocks for UML Class Diagrams
Learning Objective: 03-02 Understand and apply the building blocks for UML class (structure)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
23) Which of the following is the best description of an association?
A) A group of classes.
B) The lines in a UML Class diagram.
C) The relationship between two classes.
D) The number of times one class is related to
another. ANSWER: C
Diff: 2
Topic: Building Blocks for UML Class Diagrams
Learning Objective: 03-02 Understand and apply the building blocks for UML class (structure)
diagrams. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
24) Which of following are possible options for minimum multiplicities?
A) 0 and 1.
B) 0 and *.
C) * and 1.
D) 0, 1, and
*.
ANSWER: A
63. Page55
ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
Diff: 2
Topic: Multiplicities
Learning Objective: 03-03 Describe multiplicities for a UML class
diagram. Bloom's: Understand
AACSB: Analytical Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
IF YOU WANT THIS TEST BANK OR SOLUTION
MANUAL EMAIL ME
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ALL CHAPTERS IN PDF FORMAT
IF YOU WANT THIS TEST BANK OR SOLUTION
MANUAL EMAIL ME
rightmanforbloodline1@gmail.com TO RECEIVE
ALL CHAPTERS IN PDF FORMAT