Lesson 2: Information Technology in Accounting - Summary Problem

Which one of the following is an advantage of using computerized accounting software?

The ability to process trasnactions and see financial results in real time

Which one of the following statements is true?

A	Artificial intelligence is any task performed by a computer.
B	Artificial intelligence is a distributed, decentralized public ledger.
C	Big data consists of digital pieces of information, such as a transaction date, time, and dollar amounts, and can be linked to individuals by a digital signature.
D	Big data is data that is so voluminous that traditional processing software is not capable of processing it.

Big data is data that is so voluminous that traditional processing software is not capable of processing it

Select Ltd. has collected a variety of types of personal information about its customers and employees. Management has used software safeguards in the past, restricting the use of software that contains personal information only to employees who require access. Select’s board is considering whether to institute additional safeguards after considering the severe legal and economic consequences of a data breach.

Vikram, Select’s controller, is preparing a report for the board on possible safeguards Select could use in addition to software safeguards. Which one of the following is a safeguard that Vikram could suggest the board implement?

Physically restricting employees from machines that contain personal information

Which of the following are components of an AIS?

People, hardware, software and networks

Which one of the following is a common challenge with implementing an AIS?

An adequate backup system is essential for any computer based data