Business Information Systems
Exam Review
Course Introduction
Business Information Systems explores the integration of information technology with business operations to enhance organizational effectiveness and decision-making. The course covers key topics such as business process modeling, enterprise resource planning (ERP) systems, database management, e-commerce, and the strategic role of information systems in achieving competitive advantage. Students learn how to analyze business requirements, design system solutions, manage IT projects, and address ethical and security issues related to information systems. Through case studies and practical projects, students gain insights into how technology drives innovation and supports the goals of modern enterprises.
Recommended Textbook
Accounting Information Systems 11th Edition by George
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14 Chapters
1942 Verified Questions
1942 Flashcards
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H. Bodnar
Page 2
Chapter 1: Accounting Information Systems: An Overview
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) A key characteristic and benefit of business processes is that they are always limited to one functional area of the information system.
A)True
B)False
Answer: False
Q2) A(n)________ ________ ________ system encompasses the planning and management of all activities involved in sourcing,procurement,conversion,and logistics management activities.
Answer: supply chain management
SCM
Q3) In ________ ________ ________,computers take control of the entire production process (CIM)but also can be reprogrammed so the same processes can produce entirely different products.
Answer: flexible manufacturing systems
FMSs
FMS
Q4) The source for most information used by lower-level managers is largely
Answer: internal
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Chapter 2: Systems Techniques and Documentation
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) Which of the following symbols should not be used to specify an input/output operation?
A) Decision symbol
B) Document symbol
C) Off-line storage symbol
D) Communication link
Answer: A
Q2) The formula used to compute total task time for work measurement purposes is
A) (average time / unit + idle time / unit) × average volume.
B) total time available / total task time.
C) (average volume / unit + average time / unit) × average volume.
D) total task time / total time available.
Answer: A
Q3) "Work" or "spread" sheets used in accounting systems are common examples of the ________ method.
Answer: matrix
Q4) A branching table depicts a decision function by means of a statement of the ________ to be made,a list of ________ that can occur,and the path to be followed for each condition.
Answer: decision; conditions
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Chapter 3: Ebusiness and Ecommerce
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) A guessed plaintext attack will succeed even though the sender adds a few random numbers at the end of a message.
A)True
B)False
Answer: False
Q2) Digital IDs are issued by a(n)________ ________.
Answer: certifying authority
Q3) Which of the following is not an example of middleware?
A) Enterprise system bus
B) Database driver
C) Application programming interface
D) All of the above are examples of middleware.
Answer: A
Q4) A digital time-stamping service can be used to securely store private keys.
A)True
B)False
Answer: False
Q5) The verification of a digital signature involves the use of a(n)________ algorithm. Answer: hashing
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Chapter 4: Transaction Processing and the Internal Control Process
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) Research indicates that the most expensive type of fraud is A) patent infringement.
B) false financial statements.
C) credit card fraud.
D) All of these types of fraud are equally expensive.
Q2) DWB Corporation suffered a loss due to the spoilage of certain raw materials used in the manufacturing of its products.The business transaction cycle in which this loss occurred is the
A) revenue cycle.
B) expenditure cycle.
C) finance cycle.
D) production cycle.
Q3) Guidance for Section 404 compliance can be found in A) COSO reports.
B) ISO 27002.
C) the United States Federal Sentencing Guidelines.
D) Guidance can be found in all of the above.
Q4) The diversion or misrepresentation of assets from either employees or third parties is known as ________ ________.
Q5) ISO 27002 aids companies with Section ________ compliance.
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Chapter 5: Fraud Examination and Fraud Management
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) Fraud prevention requires implementing control checklists that contain items such as firewalls and anti-virus software.
A)True
B)False
Q2) An example of fraud indicators is
A) mismatch in an inventory count.
B) a cash register that doesn't balance.
C) a suspicious invoice.
D) All of the above are correct.
Q3) Type 1 errors occur when
A) a fraud indicator fails to signal fraud.
B) a fraud indicator falsely signals fraud.
C) a fraud indicator turns out not to be a fraud indicator.
D) all of the above
Q4) A signed confession is
A) a court-admissible evidence.
B) protected under the umbrella of attorney-client privilege.
C) a physical evidence.
D) not admissible in court.
Q5) The three sides of the fraud triangle are: ________,________,and ________.
Page 7
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Chapter 6: Information Systems Security
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170 Verified Questions
170 Flashcards
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Sample Questions
Q1) Malware is short for malicious hardware that compromises the security of the victim's computer.
A)True
B)False
Q2) One Internet security problem arises from configuration problems in the area of configuring permissions for directories.This is an example of
A) an operating system vulnerability.
B) a Web server vulnerability.
C) a private network vulnerability.
D) server program vulnerability.
Q3) The information security management system life cycle includes analysis,design,implementation,and
A) operation, evaluation, and management.
B) operation, evaluation, and control.
C) operation, management, and continuity.
D) operation, control, and continuity.
Q4) The best security ________ will not help if the system ________ do not enforce the policies.
Q5) The least common method used to commit computer fraud is ________
8
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Chapter 7: Electronic Data Processing Systems
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) Computer processing of accounting data is typically composed of A) producing preliminary reports and then final listings after submission of corrections. B) five steps which occur in four separate and distinct cycles.
C) seven steps (following the typical accounting cycle).
D) a series of mathematical algorithms.
Q2) A company will often analyze its customers' sales trends and predict future needs. A)True
B)False
Q3) Each month ________ ________ should be reconciled to reports prepared from the bank summary file.
Q4) Automatic identification of products is greatly enhanced by A) using UPC as a base. B) employing JIT processing.
C) manually prepared price tags affixed by receiving personnel upon delivery.
D) transaction tagging using each manufacturer's unique inventory control numbers.
Q5) The ________ has enhanced the real-time sales system by extending it to customers who are off-site.
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9
Chapter 8: Revenue Cycle Processes
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125 Flashcards
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Sample Questions
Q1) The control of actual cash (as opposed to checks)received in the mail relies largely on direct supervision.
A)True
B)False
Q2) The customer order business management process begins when a
A) customer order is entered into the system.
B) customer order is shipped.
C) customer invoice is generated and sent to the customer.
D) potential customer makes an inquiry or requests a quotation.
Q3) Describe the following order entry procedures:
a.Pricing
b.Credit checking
c.Availability checking
Q4) Cash sales are only subject to accounting control if a record of the sale has been created.
A)True
B)False
Q5) Effective internal control provides ________ assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes.
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Chapter 9: Procurement and Human Resources Business
Processes
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118 Verified Questions
118 Flashcards
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Sample Questions
Q1) The type of purchase order a vendor receives when the vendor must receive and assemble parts into an end product is known as a
A) third-party purchase order.
B) standard purchase order.
C) stock transport purchase order.
D) subcontract purchase order.
Q2) In a negative timekeeping system only exceptions are recorded.
A)True
B)False
Q3) Management and auditors must be concerned with evaluating the existence and functioning of controls as they are necessary to protect against the risk of ________ misstatements.
Q4) Which of the following accesses the purchase order database during the processing of a purchase order?
A) General ledger and accounts payable
B) Accounts payable, stores, and the receiving department
C) Receiving department, stores, and the general ledger
D) Accounts payable, stores and the general ledger
Q5) ________ documents are used in the selection of a vendor.
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Chapter 10: The Production Business Process
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) The master-operations file is one of the data sources integrated with others in the production-planning application program.
A)True
B)False
Q2) The significance of activity-based costing as a management tools depends largely on the accuracy of the cost drivers selected as allocation bases.
A)True
B)False
Q3) Radio-frequency identification is an automatic identification technology that uses
A) high frequency radio waves to send and receive data between RFID tags and readers.
B) low power radio waves to send and receive data between RFID tags and readers.
C) bar codes to eliminate the need for direct line of sight to the RFID tags.
D) radio waves to send and receive data between bar coded tags.
Q4) Distinguish between MRP and MRP II.
Q5) CIM significantly alters a manufacturer's cost behavior patterns by substituting ________ ________ for direct labor.
Q6) ________ ________ scanners require a direct line of sight in order to function.
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Page 12
Chapter 11: Systems Planning, analysis, and Design
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) Probably the most difficult design consideration in designing the data input system is A) uniformity.
B) accuracy.
C) integration.
D) organization.
Q2) The Warnier-Orr methodology is a technique used for
A) flowcharting.
B) document review.
C) evaluating work distributions.
D) analyzing information flows.
Q3) An example of a transformation language that can be used with MDA is ________.
A) OMG
B) QVT
C) UML
D) OO
Q4) The systems development strategic plan should identify specific areas to be given the highest priority.
A)True
B)False
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Chapter 12: Systems Project Management, implementation,
operation, control
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) Which of the following groups of individuals should be on the special project team that executes the implementation of the design plan?
A) Systems technical personnel
B) Accountants and auditors
C) Individuals who also participated in the design
D) Design team members and affected managers
Q2) Delays are routine during implementation because it is impossible to anticipate all potential problems during the systems design process.
A)True
B)False
Q3) ________ is necessary to ensure that the new system operates as planned.
Q4) The percentage of the time an application is unavailable for use is known as
A) the bottleneck interval.
B) cutoff points.
C) downtime.
D) the minimal resource allocation period.
Q5) Any successful systems implementation requires that considerable attention be given to employee ________.
Q6) ________ is a successive refinement to the project plan.
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Chapter 13: Data Management Concepts
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) Database drivers,NOT database connectors,can be used to connect the business application to the DBMS.
A)True
B)False
Q2) A high activity ratio
A) is typical of batch processing, such as a payroll application.
B) is characteristic of all file processing activities in a large corporation.
C) spreads the fixed costs of sequential processing over fewer transactions.
D) makes ISAM processing more economical if the files are not processed in low activity situations.
Q3) Variable-length records have characteristics that are not found in fixed-length records.An example of such a characteristic is
A) the field width can be adjusted for each data occurrence.
B) because of their size, most records stored on DASD are variable-length records.
C) the actual number of fields can vary from one data occurrence to another.
D) the field width can be adjusted for each data occurrence and the actual number of fields can vary from one data occurrence to another.
Q4) OLAP is a multidimensional generalization of the 2-dimensional ________ table.
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Page 15
Chapter 14: Auditing Information Technology
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124 Verified Questions
124 Flashcards
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Sample Questions
Q1) Which of the following is a possible benefit of using information systems technology in the conduct of an audit?
A) Increased independence from information systems personnel
B) Elimination of most manual calculations, footing, and cross-footing
C) Standardization of audit working papers and correspondence
D) All of these answers are correct.
Q2) The degree of independence that auditors can maintain while developing embedded audit routines will depend largely on the level of technical expertise that they possess.
A)True
B)False
Q3) Basic auditing standards may be altered by the technology employed in the system to be audited.
A)True
B)False
Q4) Each COBIT IT process should have its own navigation diagram.
A)True
B)False
Q5) Why are most audits now performed by auditing through and with the computer?
Page 16
Q6) How have personal computers likely affected information systems audits?
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