ACCT SYSTEM 3

Ben goes to his bank to wire transfer $1,000 to his sister Jennifer. The role of the bank in this transaction is best described as:

middleman.

Which of the following statements is true?

Smart contract was introduced in Ethereum.

Which feature cannot be found in bitcoin?

Double spend

In the Ethereum network:

mining of Ether occurs at a constant rate.

A selected set of organizations may run a blockchain node separately for keeping the transaction records. Administrators from the organizations establish the access rights and permissions for each participant. This type of blockchain is often called:

consortium blockchain.

Which of the following statements is false?

Hyperledger is a public blockchain.

Which of the following statements is false?

Bitcoin uses smart contract to specify the business rules.

When we refer to smart contract in blockchain, we mean: 

a piece of software code that can be executed or triggered by business activities.

Which of the following is created mainly for cryptocurrency application?

Bitcoin

What information does a block in the Bitcoin network not contain?

None, a block contains all of this information.

Which of the following is not true with respect to artificial intelligence?

AI began in the 1990s.

If a confusion matrix shows 46 TP, 6 FN, 500 TN, and 4 FP, what is the precision ratio? round 2 decimals

0.92

If a confusion matrix shows 46 TP, 6 FN, 500 TN, and 4 FP, what is the accuracy ratio?

Note: Round your answer to 2 decimal places.

0.98

If a confusion matrix shows 25 TP, 5 FN, 1000 TN, and 5 FP, what is the recall ratio?

Note: Round your answer to 2 decimal places.

0.83

Which of the following describes the purpose of a strategy map?

A graphical description of expected cause-and-effect linkages among Balanced Scorecard perspectives

Which of the following do not describe characteristics of enterprise IT?

Enhance individual worker productivity

Which of the following would be an example of network IT?

Email

Which of the following is an example of function IT?

Spreadsheets

Which of the following is not a role of IT in the Balanced Scorecard management process?

All are roles of IT in the Balanced Scorecard management process.

What is one reason a Balanced Scorecard might be considered “balanced”?

It includes both leading and lagging performance indicators.

Which of the following is the ultimate objective for the financial perspective in for-profit organizations?

Shareholder value

Which of the following is part of an organization’s value proposition?

Product price

Which of the following is a typical key performance indicator for the financial perspective?

Return on equity

Which of the following is a typical key performance indicator for the customer perspective?

Satisfaction

Which of the following is a typical key performance indicator for the process perspective?

Process cycle time

Which of the following is a typical key performance indicator for the learning and growth perspective?

Employee skills

Information capital can include which of the following?

All of these are information capital.

Which of the following is the best description of Val IT?

A structured IT investment management system

Which one of the following is not one of the four major questions that Val IT focuses on?

Doing things differently

In the Val IT framework, a program is which of the following?

A collection of interdependent projects

In the Val IT framework, portfolio management includes which of the following?

• Establishing strategic priorities

In the Val IT framework, investment management includes which of the following?

Executes projects within authorized programs

Val IT is designed to work in concert with COBIT. Which of the following is true with respect to the roles of these two frameworks?

Val IT focuses on delivering business value; COBIT focuses on managing risk.

Which of the following is a question that companies should answer when preparing the business case for an IT investment?

• How much will it cost?
  

What is the first step in the economic justification process?

Assess business requirements.

Which of the following is a not an example of a complementary change necessary to allow an IT initiative to achieve its goals?

Outsource the IT initiative.

Which of the following is not an example of benefits of an IT investment?

Increased revenues from access to new markets

Which of the following can be used to quantify benefits on an IT investment?

Gathering expert opinions

Which of the following are examples of direct costs of acquiring and implementing an IT investment?

Cost of hiring consultants to assess system requirements

Which of the following are not examples of operating costs for an IT investment?

Costs of disposal of electronics at end of life

Which of the following is not a category of IT initiative risk?

Financial misstatement

If an IT project costs $150,000 and returns net cash flows of $100,000 per year, what is the payback period?

1.5 years

If an IT project costs $150,000 and returns net cash flows of $100,000 per year, what is the accounting rate of return?

67 percent

What is the order of events for the economic justification process?

Assess business requirements ➞ Identify potential solutions ➞ Estimate costs ➞ Assess value.

Which methodology of systems development requires one phase be completed before the next phase begins?

Waterfall model

The IFAC suggested 10 core principles of effective information technology planning. Which of the following is not one of those 10 core principles?

Justifiable cost

Projects are considered challenged if they:

are late, are over budget, or do not have the required features and functions.

The triple constraints of project management do not include the constraint of:

technical issues.

The 100% rule suggests that before a PERT chart is done, a project manager must:

make sure 100 percent of the project tasks are defined.

The critical path in a PERT chart represents:

the longest path of tasks needed for project completion.

The Sarbanes-Oxley Act’s section 404 reports require management and auditors to report on:

the effectiveness of the internal controls of the company’s accounting information system.

In this chapter, projects are defined as:

a series of tasks performed in a defined sequence.

Which phase of the systems development life cycle would include describing in detail the desired features of the system?

Design phase

Proof of Work (PoW):

Requires miners to solve complex mathematical puzzles to validate transactions and create new blocks

Proof of Stake (PoS)

Validators are chosen based on the number of coins they hold and are willing to "stake" as collateral.

Proof of Authority (PoA):

Transactions are validated by approved, reputable accounts (common in private/consortium networks).

Structure

It consists of three main layers: the Input Layer, Hidden Layer(s) (where the actual processing/feature extraction happens), and the Output Layer

Supervised Learning:

The model is trained on labeled data (i.e., input-output pairs).

Unsupervised Learning:

The model finds hidden patterns or structures in unlabeled data

Semi-supervised Learning

Uses a small amount of labeled data combined with a large amount of unlabeled data

Reinforcement Learning

The model learns by trial and error using a system of rewards and punishments to achieve a goal

Net Present Value (NPV):

Calculates the present value of all cash inflows minus the present value of all cash outflows. If NPV>0, the project is economically viable

Internal Rate of Return (IRR)

The discount rate that makes the NPV of a project equal to zero. A project is acceptable if its IRR exceeds the company's required rate of return

Planning Phase

Begins with a business need, culminating in a formal feasibility study.

Analysis Phase

Refining goals, determining user requirements, and assessing what the new system must do

Design Phase

Specifying physical and logical features

Implementation Phase

Development, testing, training, and transitioning to the new system

Maintenance Phase

Ongoing support, bug fixes, and system updates

The 15-15 Rule

States that if a project is more than 15 percent over budget or 15 percent off schedule, the project will highly likely never be recovered

Gantt Chart

A bar chart that tracks project tasks against a horizontal calendar timeline

PERT Chart

A network diagram that illustrates task dependencies and logical sequencing