Information Technology in Accounting
Midterm Exam
Course Introduction
This course explores the integration of information technology within the field of accounting, focusing on the ways in which modern software, databases, and digital tools support and transform accounting processes. Students will examine key accounting information systems, methods for automating routine financial tasks, and the impact of emerging technologies such as cloud computing, data analytics, and blockchain on financial reporting, auditing, and internal controls. Practical applications and case studies will be incorporated to develop proficiency in using accounting software and to highlight the ethical and security considerations associated with digital accounting environments.
Recommended Textbook
Accounting Information Systems 1st Edition by Vernon J. Richardson
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14 Chapters
555 Verified Questions
555 Flashcards
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Page 2
Chapter 1: Accounting Information Systems and Firm Value
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) 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
Q2) A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.
A)True
B)False
Answer: True
Q3) 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
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Page 3
Chapter 2: Accountants As Business Analysts
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43 Flashcards
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Sample Questions
Q1) Data Flow Diagrams start with a circle indicating the start event.
A)True
B)False
Answer: False
Q2) Business Process Modeling Notation (BPMN)activity diagrams depict events as circles.
A)True
B)False
Answer: True
Q3) 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
Q4) Activity models are a relatively new process modeling tool.
A)True
B)False
Answer: False
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Chapter 3: Data Modeling
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Sample Questions
Q1) In Unified Modeling Language (UML)the options for minimum multiplicity values are 0,1,and 2.
A)True
B)False
Answer: False
Q2) An aggregation relationship is a form of generalization relationships.
A)True
B)False
Answer: False
Q3) Which of the following is not a best practice in preparing Unified Modeling Language (UML)Class diagrams?
A) Opt for simplicity.
B) Model each process separately.
C) Avoid crossing lines whenever possible.
D) Avoid confusing abbreviations.
Answer: B
Q4) In Unified Modeling Language (UML)primary keys cannot by NULL.
A)True
B)False
Answer: True
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Chapter 4: Relational Databases and Enterprise Systems
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Sample Questions
Q1) What are the benefits of implementing the enterprise systems in companies?
Q2) What is the main purpose of using foreign keys in a relational database design?
A) It provides useful financial data value in the table.
B) It is required in all tables.
C) It is used to link tables.
D) None of the above is correct.
Q3) To convert a conceptual model with a maximum Multiplicities relationship of "many to many" into relationship database tables,one must
A) Create a foreign key in one of the tables to link the two tables.
B) Create a relation with no attributes of its own.
C) Create a relationship table to handle the many-to-many relationship.
D) Many-to-many relationship cannot be represented in Access.
Q4) Access is a simple database management system that can be used to run databases for individuals and small firms.
A)True B)False
Q5) Each attribute in a table can have several names.
A)True B)False
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Chapter 5: Sales and Collections Business Process
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25 Flashcards
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Sample Questions
Q1) Which of the following best describes the difference between access controls and application controls?
A) Access controls limit who can change records and application controls provide an audit trail of any changes.
B) Access controls implement business rules and application controls do not.
C) Access controls are "prohibited" business rules and application controls are "allowed" business rules.
D) There is no difference between access and application controls.
Q2) BPMN models can describe the collaboration between two organizations using pools.
A)True
B)False
Q3) Type images can be used to allow process information to be summarized by category.
A)True
B)False
Q4) An intermediate error event can be used to model process exceptions.
A)True
B)False
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Chapter 6: Purchases and Payments Business Process
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Sample Questions
Q1) In a BPMN collaboration model of the purchase process,one pool describes the focal organization's activities and the other pool describes what?
A) The supplier's activities
B) The customer's activities
C) The sequence of steps in the process
D) The message flows between the pools
Q2) In a BPMN activity diagram,which of the following best describes the purpose of an intermediate timer event?
A) Represent a time delay
B) Indicates a delay to a specific date/time
C) Indicates a delay to a relative date, such as next Thursday
D) All of the above
Q3) Many companies record both purchase orders and purchases; when would such a company recognize the purchase?
A) When the purchase order is issued.
B) When the supplier receives the purchase order.
C) When the products are received from the supplier and accepted.
D) When the products are sold.
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Chapter 7: Conversion Business Process
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Sample Questions
Q1) Which of the following best describes the purpose of an intermediate error event?
A) Directs sequence flow when an activity aborts
B) Delays the sequence until a specified time
C) Waits for external messages
D) Ends a process
Q2) Application controls limit access to viewing and changing records in a system.
A)True
B)False
Q3) Consider the following BPMN diagram of a subprocess.Which of the following is required to correct an error in the diagram?
A) Change the intermediate event to a start event.
B) Change the intermediate error event to an exclusive gateway
C) Add a sequence flow to an end event after the discard errors activity.
D) Drop the activity named Discard Errors.
Q4) Which of the following is not a basic activity in the conversion process?
A) Issue raw material
B) Perform work and account for labor
C) Ship products to stores
D) Authorize production
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Chapter 9: Reporting Processes and Extensible Business
Reporting Language XBRL
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Sample Questions
Q1) XBRL stands for
A) eXtensible Business Reporting Language.
B) eXtensible Behavioral Reporting Language.
C) eXtensible Book Reporting Language.
D) eXtensible Basic Reporting Language.
Q2) The steps in business intelligence include:
A) Gather Information, Analyze Data for Patterns, Make Decision
B) Analyze Data for Patterns, Gather Information, Make Decision
C) Create Data Warehouse, Query Data Warehouse, Make Decision
D) Create Data Warehouse, Analyze Data for Patterns, Make Decision
Q3) XBRL serves as a means to electronically communicate business information to facilitate business reporting of financial and nonfinancial data to users.XBRL greatly enhances the speed and accuracy of business reporting.
A)True
B)False
Q4) XBRL is based on the XML language.
A)True
B)False
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Q5) How would XBRL GL facilitate the SEC-required XBRL submission of a company's regulatory filings?
Chapter 10: Accounting Information Systems and Internal Controls
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Sample Questions
Q1) The framework could be used by management in its internal control assessment under requirements of SOX is the:
A) COSO internal framework.
B) COSO enterprise risk management framework.
C) COBIT framework.
D) All of the above are correct.
Q2) Which of the following represents an inherent limitation of internal controls?
A) Bank reconciliations are not performed on a timely basis.
B) The CEO can request a check with no purchase order.
C) Customer credit check not performed.
D) Shipping documents are not matched to sales invoices.
Q3) In a large pubic corporation,evaluating internal control procedures should be responsibility of:
A) Accounting management staff who report to the CFO.
B) Internal audit staff who report to the board of directors.
C) Operations management staff who report to the chief operation officer.
D) Security management staff who report to the chief facilities officer.
Q4) Discuss the ethical values created in Starbucks.How do they help to form the firm's control environment?
Q5) What are the three main functions of COSO ERM?
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Chapter 11: Information Security and Computer Fraud
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Sample Questions
Q1) Encryption is a preventive control ensuring data confidentiality and privacy during transmission and for storage.
A)True
B)False
Q2) Disaster recovery planning and business continuity management are preventive controls.
A)True
B)False
Q3) When computer programs or files can be accessed from terminals,users should be required to enter a(n)
A) Parity check.
B) Password as a personal identification code.
C) Check digit.
D) Echo check.
Q4) Fraud triangle includes incentive,opportunity and an attitude to rationalize the fraud.
A)True
B)False
Q5) What are the two prerequisites for vulnerability management?
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Chapter 12: Monitoring and Auditing AIS
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Sample Questions
Q1) Accountants increasingly participate in designing internal controls and improving business and IT processes in a database environment.
A)True
B)False
Q2) Which of the following is least likely to be considered a component of a computer network?
A) Application programs.
B) Computers.
C) Servers.
D) Routers.
Q3) Which of the following is not a use of CAATs in auditing?
A) Test of details of transactions and balances
B) Analytical review procedures
C) Fraud examination
D) Produce terms and conditions of employment
Q4) What are the benefits of conducting continuous audits (or monitoring)?
Q5) A continuous audit is to perform audit-related activities on a continuous basis.
A)True
B)False
Q6) What are the general security objectives for both wired LANs and wireless LANs?
Page 13
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Chapter 13: The Balanced Scorecard and Business Value of Information Technology
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Sample Questions
Q1) Supply chain management systems are an example of Network IT. A)True
B)False
Q2) Which of the following is the best description of the Link to Operations step in the balanced scorecard management process?
A) The company establishes objectives, measures, targets, and initiatives.
B) The company prepares operating budgets and prioritizes business process improvements.
C) The company evaluates the effectiveness of its strategy.
D) The company examines the competitive environment.
Q3) The impact of an IT investment can depend on managers' decision-making abilities. A)True
B)False
Q4) The balanced scorecard management process starts with the Formulate step. A)True
B)False
Q5) The balanced scorecard only includes quantitative measures. A)True B)False
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Chapter 14: Evaluating AIS Investments
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Sample Questions
Q1) Which of the following is not a major consideration when assessing business requirements for IT initiatives?
A) Complementary business process changes
B) Potential technological solutions
C) Gaps in performance indicated by the strategy map
D) Project risks
Q2) Which of the following is not a direct operating cost of an IT initiative?
A) End-user data management
B) Ongoing hardware replacement
C) Software upgrades
D) Hardware disposal
Q3) Which of the following is not a reason that large IT projects require economic justification?
A) IT is a commodity, every firm makes IT investments
B) IT investments require large amounts of capital
C) Capital resources are limited
D) Major IT projects can affect substantial portions of the organization
Q4) The benefits of an IT project are not necessarily measurable in financial terms.
A)True
B)False
Page 15
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Chapter 15: The Systems Development Life Cycle and Project Management:
Addressing the Challenges of Building Ais Systems
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Sample Questions
Q1) The systems development life cycle has five phases: Planning,Analysis,Design,Implementation and Maintenance. A)True
B)False
Q2) Explain how the Technology Acceptance Model can be used as a useful tool in planning an IT project.
Q3) Tasks that must be completed in a specific sequence but don't require additional resources or a specific completion time are considered to have task dependency. A)True B)False
Q4) The project sponsor is generally the same person as the project manager. A)True B)False
Q5) The critical path in a PERT chart represents:
A) The tasks that must be completed without errors.
B) The path of processes that is critical for system adoption.
C) The most important tasks of the whole project.
D) The longest path of tasks needed for project completion.
Q6) What can be done to combat scope creep? Page 16
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Page 17