First Quiz CH 1-3 AIS

Accounting information systems

A.      are always computerized.

B.      report only financially related information.

C.       are information systems that record, process, and report on transactions to provide financial and nonfinancial information for decision making and control.

D.      require a CITP designation to understand.

   are information systems that record, process, and report on transactions to provide financial and nonfinancial information for decision making and control.

Which of the following is a characteristic of relevance?

Materiality

Timeliness

Verifiable

Cost to generate

Materiality

Which of the following is considered to be mandatory information required by a regulatory body?

10-Q submission to the Securities and Exchange Commission

The cost to produce a Samsung Galaxy

The number of organic bananas that are sold at Whole Foods on July 28

The cost to build an all-new Starbucks restaurant in Shenzhen, China

10-Q submission to the Securities and Exchange Commission

The correct order of events in the value chain is

Inbound logistics ➞ Operations ➞ Service.

Inbound logistics ➞ Outbound logistics ➞ Marketing and sales.

Inbound logistics ➞ Operations ➞ Outbound logistics.

Inbound logistics ➞ Operations ➞ Marketing and Sales.

Inbound logistics ➞ Operations ➞ Outbound logistics

Which system contributes information on direct labor to a cost accounting system?

Supply chain management system (SCMS)

Financial reporting system (FRS) Customer Relational

Management System (CRM)

Human resource management system (HRMS)

Human resource management system (HRMS)

A supply chain

supplies jewelry chains.

refers to the flow of materials, information, payments, and services

is similar in function and purpose to the value chain.

does not apply to a service firm like an accounting firm

refers to the flow of materials, information, payments, and services

Customer relationship management software does not include information about

current customers.

prospective customers.

former customers.

current employees

current employees

An information system that measures and records accounting transactions and reports them in the financial statements is called a:

financial reporting system (FRS).

enterprise system (ES).

manufacturing system (MS).

cost accounting system

financial reporting system (FRS)

What is the name of the position for a person responsible for determining information needs of a business and designing a system to meet those needs?

Chief information officer

Controller

IT auditor

Systems analyst

Systems analyst

The balance sheet account most likely affected by an AIS investment in supply chain management software would be:

inventories.

fixed assets.

cash and cash equivalents.

unearned revenue

inventories

The software/system that helps make sure the retail firm doesn’t have a stockout is:

supply chain management software.

customer relationship management software.

enterprise systems.

human resource systems

supply chain management software.

Data analytics performed to identify the most profitable customers would be most likely to affect which income statement account?

Selling, general, and administrative expenses (SG&A)

Interest expense

Revenues

Cost of goods sold

Revenues

Customer relationship management systems would generally be considered to be an:

internal business process.

external business process.

interior business process.

exterior business process

internal business process.

An auditor testing internal controls would generally be considered to fill which role with respect to accounting information systems?

User

Manager

Designer

Evaluator

Evaluator

Which of these represents the proper transformation from data to decision according to the information value chain?

Data ➞ Information ➞ Knowledge ➞ Decision Data ➞

Knowledge ➞ Information ➞ Decision

Data ➞ Business event ➞ Information ➞ Decision

Data ➞ Analysis ➞ Information ➞ Decision

Data ➞ Information ➞ Knowledge ➞ Decision.

Big Data is often described by the 4 Vs, or

Volume, velocity, veracity, and variability.

Volume, velocity, veracity, and variety.

Volume, volatility, veracity, and variability.

Volume, volatility, veracity, and variety

Volume, velocity, veracity, and variety

According to estimates considered in the chapter, up to what percentage of a data analyst’s time is spent cleaning (or scrubbing) the data to be ready for analysis?

40 percent

0 percent

20 percent

90 percent

90 percent

The acronym ETL, in the process of readying data for use in data analysis, refers to what three words?

Extrapolate, transform, and learn

Extrapolate, transpose, and load

Extract, transform, and load

Extract, transform, and learn

Extract, transform, and load.

Which term is used to describe the science of examining raw data, removing excess noise from the dataset, and organizing the data with the purpose of drawing conclusions for decision making?

Big Data

Data Analytics

Audit Analytics

Extract, transform, and load

Data Analytics

ADS is a standard format for data files and fields typically needed to support an external audit in a given financial business process area that was developed by the AICPA. The acronym ADS stands for what three words?

Accounting Data Specification

Accounting Data Standards

Audit Data Standards

Auditor Data Standards

Audit Data Standards

Which type of question does prescriptive analytics address?

What happened?

What should we do based on what we expect will happen?

Why did it happen?

Will it happen in the future?

What should we do based on what we expect will happen?

Which type of question does predictive analytics address?

What happened?

What should we do based on what we expect will happen?

Why did it happen?

Will it happen in the future?

Will it happen in the future?

What type of analytics addresses questions of “Why did it happen”?

Descriptive analytics

Diagnostic analytics

Predictive analytics

Prescriptive analytics

Diagnostic analytics

What type of analytics would address the question of whether a customer will ultimately pay if credit is granted?

Descriptive analytics

Diagnostic analytics

Predictive analytics

Prescriptive analytics

Predictive analytics

If we wanted to know what score we needed to get on the final in this class based on our expected performance before the final, we would call that _____________ analytics.

Descriptive

Diagnostic

Predictive

Prescriptive

Prescriptive

Which of the following best describes a data visualization?

Part of the information value chain

A tool for preparing the data

A tool for recording data transactions

A graphical representation that presents information to decision makers

a graphical representation that presents information to decision makers.

Which of the following charts is used to show trend over time?

Symbol maps

Scatter plots

Line charts

Pie charts

Treemaps

line chart

Which of the following charts is generally considered the best way to show proportions?

Bar charts

Scatter plots

Line charts

Pie charts

Treemaps

Pie charts

Which of the following software is best at data analysis, as compared to visualizations?

Power BI

Excel

Tableau

Powerpoint

Excel

The use of visualizations to help perform the analysis is called:

explanatory visualizations.

diagnostic visualizations.

exploratory visualizations.

interpretive visualizations

exploratory visualizations.

The use of visualizations to communicate the results to decision makers is called:

explanatory visualizations.

prescriptive visualizations.

exploratory visualizations.

diagnostic visualizations.

explanatory visualizations.

Which of the following statements is true?

Scatterplots show values of two variables each plotted on its own axis to exhibit potential trends.

Scatterplots show values of two variables each plotted on its own axis to exhibit potential correlation.

Graphs show values of two variables each plotted on its own axis to exhibit potential trends.

Graphs show values of two variables each plotted on its own axis to exhibit potential correlation.

None of the above

Scatterplots show values of two variables each plotted on its own axis to exhibit potential correlation

Assume that Netflix wants to show the relative frequency of its sales by state. Which of the following would be most appropriate?

Word cloud

Filled geographic map

Bar chart

Pie chart

None of the above

Filled geographic map

Which of the following software tools is more associated with getting the data ready for analysis?

Tableau Desktop

Tableau Prep

Python

SAS

None of the above

Tableau Prep

If the CEO prefers less detail in their written report, the analyst might suggest

an executive summary.

a complete set of visualizations.

a full report.

a sampling of the most important visualizations

None of the above

an executive summary.