Test Bank for Accounting Information Systems, Third Edition Richardson, Chang, & Smith

Type:

Test Bank

Resource:

Accounting Information Systems

Edition:

3rd Edition

Author(s):

Vernon Richardson Chengyee Janie Chang Rod E. Smith

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Accounting and Finance is a primary activity in the value chain. ⊚ true ⊚ false Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

2)

As of today, Accounting Information Systems are all computerized. ⊚ true ⊚ false

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

3) Business value includes all those items, events and interactions that determine the financial health and well-being of the firm. ⊚ true ⊚ false

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Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

4) The Certified Information Technology Professional (CITP) is a professional designation for those with a broad range of technology knowledge and does not require a CPA. ⊚ true ⊚ false Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

5) The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those performing IT audits. ⊚ true ⊚ false

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Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

6) user.

Information is defined as being data organized in a meaningful way that is useful to the ⊚ ⊚

true false

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

7) user.

Data is defined as being information organized in a meaningful way that is useful to the ⊚ ⊚

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true false

3

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

8) A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem. ⊚ true ⊚ false Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

9)

A value chain is defined as the cost of performing various activities inside a firm. ⊚ true ⊚ false

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Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

10)

Relevant information’s most defining characteristic is that it is free from bias and error. ⊚ true ⊚ false

Question Details Learning Objective : 01-01 Define an accounting information system, and explain characteristics of us Topic : Definition of Accounting Information Systems Topic : Attributes of Useful Information Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

11) The characteristics of relevant information include predictive value, feedback value and timeliness. ⊚ true ⊚ false

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Question Details Learning Objective : 01-01 Define an accounting information system, and explain characteristics of us Topic : Definition of Accounting Information Systems Topic : Attributes of Useful Information Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

12) A faithful representation of the underlying event should reflect the bias of the system analyst. ⊚ true ⊚ false Question Details Learning Objective : 01-01 Define an accounting information system, and explain characteristics of us Topic : Definition of Accounting Information Systems Topic : Attributes of Useful Information Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

13) Information overload is defined as the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information. ⊚ true ⊚ false

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Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Definition of Accounting Information Systems Topic : Attributes of Useful Information Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

14) The main financial benefit of Customer Relationship Management practices reduces the cost of goods sold. ⊚ true ⊚ false Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

15) An efficient Enterprise System can significantly lower the cost of support processes included in sales, general, and administrative expenses. ⊚ true ⊚ false

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Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

16) An accounting information system (AIS) is defined as being an information system that records, processes and reports on transactions to provide financial and nonfinancial information for decision making and control. ⊚ true ⊚ false Question Details Learning Objective : 01-01 Define an accounting information system, and explain characteristics of us Topic : Definition of Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

17) An enterprise system is a centralized database that collects data from throughout the firm.

This includes data from orders, customers, sales, inventory and employees. ⊚ true ⊚ false

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Question Details Learning Objective : 01-06 Describe how AIS assists the firm's internal business processes.

Topic : AIS and Internal Business Processes Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

18) Outbound logistics are the activities associated with receiving and storing raw materials as well as activities that transform these inputs into finished goods. ⊚ true ⊚ false Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

19) Service Activities as defined in the value chain are those activities that provide the support of customers after the products and services are sold to them (e.g. warranty repairs, parts, instruction manuals, etc.). ⊚ true ⊚ false

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Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

20) A well-designed and well-functioning AIS can be expected to create value by providing relevant information helpful to management to increase revenues and reduce expenses. ⊚ true ⊚ false Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

21) Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue Service is an example of discretionary information. ⊚ true ⊚ false

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Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

22)

Enterprise Systems do not exist to facilitate decision making. ⊚ true ⊚ false

Question Details Learning Objective : 01-06 Describe how AIS assists the firm's internal business processes.

Topic : AIS and Internal Business Processes Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

23) The Sarbanes-Oxley Act of 2002 is a federal law in the United States that set new and enhanced standards for all U.S. public companies, their management and public accounting firms. ⊚ true ⊚ false

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Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

24) CRM software often includes the use of database marketing tools to learn more about the customers and to develop strong firm-to-customer relationships. ⊚ true ⊚ false Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

25) The Certified Information Technology Professional is the position created by the AICPA to recognize CPAs who have the ability to provide skilled professional services on Information Technology. ⊚ true ⊚ false

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Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Data versus Information Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

26) Accounting Information Systems which are computerized do not need to maintain internal controls. ⊚ true ⊚ false Question Details Learning Objective : 01-01 Define an accounting information system, and explain characteristics of us Topic : Definition of Accounting Information Systems Bloom's : Remember Difficulty : 1 Easy AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

27) Accounting information systems: A) Are always computerized.

B) Report only accounting information.

C) Include records, processes and reports.

D) Are for computer games.

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Question Details Learning Objective : 01-01 Define an accounting information system, and explain characteristics of us Topic : Definition of Accounting Information Systems Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

28)

Which of the following is not an attribute of useful information?

A) Bias.

B) Feedback value.

C) Predictive value.

D) Verifiability.

Question Details Learning Objective : 01-01 Define an accounting information system, and explain characteristics of us Topic : Attributes of Useful Information Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

29) Which of the following are considered to be mandatory information required by a regulatory body?

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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.

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

30)

The correct order of effects in the value chain are: A) Inbound Logistics → Operations → Service.

B) Inbound Logistics → Outbound Logistics → Marketing & Sales.

C) Inbound Logistics → Operations → Outbound Logistics.

D) Inbound Logistics → Operations → Shipping.

Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

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31) Which designation would be most appropriate for those professionals possessing IT audit, control and security skills?

A) Certified Internal Auditor (CIA).

B) Certified Public Accountant (CPA).

C) Certified Information Technology Professional (CITP).

D) Certified Information Systems Auditors (CISA).

Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

32) Which designation is for CPAs with a broad range of technology knowledge and experience?

A) Certified Internal Auditor (CIA).

B) Certified Public Accountant (CPA).

C) Certified Information Technology Professional (CITP).

D) Certified Information Systems Auditors (CISA).

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Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

33)

A supply chain: A) Refers to the supplies needed to build products.

B) Refers to the flow of materials, information, payments and services.

C) Refers to how costs are tracking in an AIS. D) Does not apply to a service firm like an accounting firm.

Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

34)

A supply chain system does not include information about: A) Current customers.

B) Prospective customers.

C) Availability of inventory.

D) Current suppliers.

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Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

35) The income statement line item most likely affected by an AIS investment in enterprise systems would be: A) Revenues.

B) Cost of Goods Sold.

C) Selling, General and Administrative Expenses.

D) Unearned Revenue.

Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

36) The income statement line item most likely affected by an AIS investment in supply chain that would interface with suppliers would be:

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A) Revenues.

B) Cost of Goods Sold.

C) Selling, General and Administrative Expenses.

D) Research and Development Expenses.

Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

37)

The IT strategic roles of AIS investments are classified as: A) Automate, Informate, Transform.

B) Value creation, Value Destruction, Value Neutral.

C) Digitize, Report, Transform.

D) Automate, Digitize, Transport.

Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

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38)

According to a recent study, the transform IT strategic role is defined as systems that: A) Replace human labor in automating business processes.

B) Provide information about business activities to all employees.

C) Provide information about business activities to senior management.

D) Fundamentally redefine business processes and relationships.

Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

39)

According to a recent study, the informate-up IT strategic role is defined as systems that: A) Replace human labor in automating business processes.

B) Provide information about business activities to all employees.

C) Provide information about business activities to senior management.

D) Fundamentally redefine business processes and relationships.

Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

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40) 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.

Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

41) Many fast food restaurants now have kiosks where customers can order without speaking to an employee. This is an example of the _____ strategic role.

A) Automate B) Informate– up C) Transform D) Informate– down

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Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

42) When Uber (a ride sharing application) developed their unique platform to match drivers with riders, this was an example of _____ with IT Investments which fundamentally changed how people use car services.

A) Automating B) Informating – up C) Transforming D) Informating – down

Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

43)

The Information Value Chain is defined as:

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A) The flow of materials, information, payments, and services.

B) The use of computer technology to provide information about business activities to employees across the firm.

C) The overall transformation of data from a business need to the ultimate decision.

D) A centralized database that collects data from throughout the firm.

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

44)

Customer Relationship Management is best defined as:

A) A system used to manage and nurture a firm's interactions with its current and potential customers.

B) A system used to track a customer's past purchases.

C) A system used to connect a firm's suppliers with a firm's customers.

D) A system used to advertise current items on sale to customers.

Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

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45)

The role of accountants in accounting information systems include all except: A) User.

B) Manager.

C) Coder.

D) Evaluator.

Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

46)

A simple information system includes all but the following elements except: A) Processing.

B) Storage.

C) Input.

D) Reporting.

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Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

47)

Branch profitability is an example of: A) Information overload.

B) Mandatory information.

C) Discretionary information.

D) Enterprise System.

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

48) Bob’s manager complains that Bob suffers from “Analysis Paralysis;” that is, he spends too much time reviewing endless reports and is reluctant to make decisions. Bob most likely suffers from _____.

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A) Data gridlock.

B) Discretionary information.

C) Information overload.

D) Data redundancy.

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

49) Which of the following systems would a company be most likely to employ for the primary purpose of generating additional sales revenue?

A) MDBMS. B) CRM. C) SCM. D) OCR.

Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

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50) The primary transformation of data into information takes place in which of the following activities?

A) Input.

B) Storage.

C) Processing.

D) Output.

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

51)

Discretionary information is most likely to be used in which of the following activities?

A) Preparing required Environmental Protection Agency emissions reports.

B) Filing a 10-K with the SEC. C) Management decision-making.

D) Payroll tax reporting.

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Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

52)

Which of the following is not a primary activity in the Value Chain?

A) Outbound Logistics.

B) Marketing.

C) Inbound Logistics.

D) Information Technology.

Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

53) One of the most important ways that ERPs benefit organizations and their business processes is:

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A) Current information is made available to all users involved in the activities and decisions associated with a company’s business processes.

B) Information is stored in many specialized, distributed databases that each serve separate business processes.

C) Reducing the amount of time to complete business processes by eliminating all controls associated with the processes.

D) Preventing external business partners from accessing the organization’s data.

Question Details Learning Objective : 01-06 Describe how AIS assists the firm's internal business processes.

Topic : AIS and Internal Business Processes Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

54) Investors reward companies most that announce IT initiatives with which type of strategic role?

A) Automate.

B) Informate – up.

C) Transform.

D) Informate – down.

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Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

55) A dental practice implemented an upgrade to its AIS that provides the dentists with daily and weekly patient and financial summaries. The practice’s upgrade is an example of which IT strategic role?

A) Automate.

B) Informate – up.

C) Transform.

D) Informate – down.

Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

56)

Which of the following diagrams most accurately illustrates an information system?

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A)

B)

C)

D)

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Question Details Learning Objective : 01-01 Define an accounting information system, and explain characteristics of us Topic : Definition of Accounting Information Systems Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Gradable : automatic Source : Original

57) The Sarbanes-Oxley Act of 2002 requires that a company’s attest auditors be able to perform which of the following activities?

A) Evaluate the internal controls in an AIS. B) Assess the value of a company’s IT assets.

C) Take over the company’s AIS if necessary.

D) Design and implement the controls used in the AIS.

Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

58) Consider the non-profit organization Doctors without Borders (Médecins Sans Frontières), a Nobel Peace Prize winning organization that provides medical services in war zones and developing countries. For this type of organization, which of the following would likely be the best measure of business value?

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A) Fund balance (i.e., the net of revenues less expenditures).

B) Lives saved.

C) Donations raised.

D) Volunteers deployed.

Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

59) Effective use of Supply Chain Management software is generally expected to provide all of the following benefits except: A) Reduced inventory carrying costs.

B) Lower production costs.

C) Lower payroll costs.

D) Better communications with suppliers.

Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

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60) Which of the following is usually the primary objective for companies when creating mandatory information?

A) Increase stock price.

B) Minimize cost.

C) Improve business decisions.

D) Ensure proper controls over business processes.

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Apply Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

61)

Which of the following is an example of information as opposed to just data: A) Number of dresses sold.

B) Color of dresses sold.

C) Dress sales in Michigan at Walmart Store #3458.

D) Types of dresses sold per region and season.

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Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

62)

Which of the following statements is most true:

A) Relevant information does not help predict the future.

B) There are sometimes tradeoffs between information that is relevant and a faithful representation.

C) Information must always be audited to be insightful an organization.

D) Information does not need to be neutral or free from bias.

Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information Bloom's : Understand Difficulty : 2 Medium AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Source : Original

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ESSAY. Write your answer in the space provided or on a separate sheet of paper.

63) After a college football game, a box score is produced detailing the number of yards passing and running, receptions made and the number of interceptions and fumbles lost (among other statistics). Using the characteristics of useful information (including relevance and reliability), please explain how this box score meets (or does not meet) the characteristics of useful information. How would the football coach use this information to prepare for the next game, decide which players to start, etc.?

Question Details Learning Objective : 01-01 Define an accounting information system, and explain characteristics of us Topic : Definition of Accounting Information Systems Topic : Attributes of Useful Information AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

64) List and explain three ways that AIS affects the income statement and the firm’s profitability.

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Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

65) Some would argue that the role of accounting is simply as an information provider.

Others suggest that accountants serve the role of business analyst. Which role produces more value for a company like Starbucks? In the area of accounting information systems, what specifically can the accountant do to serve as a business analyst to help address business opportunities?

Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

66) Explain the types of discretionary information a company like Google would collect from its accounting information system.

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Question Details Learning Objective : 01-06 Describe how AIS assists the firm's internal business processes.

Topic : AIS and Internal Business Processes AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

67) Why would the transform IT strategic role be more impactful on stock price than the automate IT strategic role?

Question Details Learning Objective : 01-08 Assess the impact of AIS on firm profitability and stock prices.

Topic : AIS, Firm Profitability, and Stock Prices AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

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68) Stephen Gillett, Starbucks CIO, argues that his most crucial duty is to enhance Starbucks’ ability to mine its customer data to help “reignite our passion with our customers.” Starbucks used loyalty cards (Starbucks’ Reward cards) and surveys to track its customers’ purchases and build profiles of their customers as mentioned in the opening chapter vignette. Why is this a good example of customer relationship management (CRM)?

Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

69) Michael Dell of Dell Computer explained: “We tell our suppliers exactly what our daily production requirements are so it is not, "Well, every two weeks deliver 5,000 to this warehouse, and we'll put them on the shelf, and then we'll take them off the shelf." It is, "Tomorrow morning we need 8,562, and deliver them to door number seven by 7 am."

How does the supply chain management software allow this to happen? And how does it save Dell money?

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Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

70) Amazon.com is one of the best at fostering its interaction with their customers by keeping a record of their past purchases and product searches and using that information to recommend other similar products for the customer to consider. How can they use that information to help them in their marketing efforts?

Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

71) The Certified Information Systems Auditors (CISA) designation identifies those professionals possessing IT audit, control and security skills. How do you think a professional designation is helpful for IT auditors?

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Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

72) The American Institute of Certified Public Accountants (AICPA) and International Federation of Accountants (IFAC) assumes that, at a minimum, all accountants will be proficient in the AIS user role and at least one other role listed above (manager or designer or evaluator).

Why would the AICPA and IFAC expect this proficiency?

Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

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73) The International Federation of Accountants says: “IT has grown (and will continue to grow) in importance at such a rapid pace and with such far reaching effects that it can no longer be considered a discipline peripheral to accounting. Rather, professional accounting has merged and developed with IT to such an extent that one can hardly conceive of accounting independent from IT.” In your opinion, why is accounting now interdependent with IT?

Question Details Learning Objective : 01-03 Distinguish the roles of accountants in providing information, and explain Topic : Role of Accountants in Accounting Information Systems AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

74) Wal-Mart’s Retail Link database is one of the world’s largest databases and allows many of their suppliers to view real-time sales data of their products for each store. This allows suppliers to assess the demand for their products and to optimize their own level of inventory and related logistics costs. How is this cost savings ultimately passed on to Wal-Mart and its customers?

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Question Details Learning Objective : 01-07 Assess how AIS facilitates the firm's external business processes.

AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : AIS and External Business Processes Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

75) Business value is defined as all items, events and interactions that determine the financial health and well-being of the firm. This value may come from suppliers, customers or employees or even information systems.

How would a not-for-profit group like the International Red Cross define business value for its group?

Question Details Learning Objective : 01-04 Describe how business processes affect the firm's value chain.

Topic : The Value Chain and Accounting Information Systems AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

76) Google is known for gathering large quantities of data on its users. Describe what types of data may be gathered on a user and how that data is transformed into useful information.

Include in your answer why the information may be useful to Google.

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Question Details Learning Objective : 01-02 Distinguish among data, information, and an information system.

Topic : Data versus Information AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual Source : Original

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Answer Key Test name: Chapter 01 1) FALSE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) FALSE 10) FALSE 11) TRUE 12) FALSE 13) TRUE 14) FALSE 15) TRUE 16) TRUE 17) TRUE 18) FALSE 19) TRUE 20) TRUE 21) FALSE 22) FALSE 23) TRUE 24) TRUE 25) TRUE 26) FALSE Version 1

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27) C 28) A 29) A 30) C 31) D 32) C 33) B 34) B 35) C 36) B 37) A 38) D 39) C 40) A 41) A 42) C 43) C 44) A 45) C 46) D 47) C 48) C 49) B 50) C 51) C 52) D 53) A 54) C 55) B 56) C Version 1

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57) A 58) B 59) C 60) B 61) C 62) B 63) Answers will vary, especially with respect to their knowledge of American Football! The instructor may wish to include other sports or other activities where a box score might be produced. In American Football, yards per carry, turnover margin, interceptions, fumbles, run vs. pass plays, 3rd down plays and success, yards per catch, yards after catch, number of tackles, etc. would all be useful.

64) Income Statement Revenues

Effect of AIS on Income Statement Customer Relationship Management techniques could attract new customers, generating additional sales revenue.

Less: Cost of Goods Sold

Supply Chain Management Software allows firms to carry the right inventory and have it in the right place at the right time. This, in turn, will lower obsolescence as well as logistics and procurement costs.

Gross Margin Less: Selling, General and Administrative Expenses (SG&A)

An efficient Enterprise System can significantly lower the cost of support processes included in sales, general, and administrative expenses.

Less: Interest Expense

Supply Chain Management Software allows the firm to carry less inventory. The less inventory the firm has to carry

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leaves less assets to finance, and may possibly reduce debt and its related interest.

Net Income

All combined, a well-designed and wellfunctioning AIS with investments in Enterprise Systems, Supply Chain Management and/or Customer Relationship Management can be expected to improve net income.

65) Answers will vary! Accountants carry out an important function by providing information. However, it is arguable that accountants can add value to a company by serving as a business analyst; that is, understand what information needs to be collected and then help in its interpretation.

66) Answers will vary! Google might want some managerial accounting information about how various products and lines of business have done, the cost of production for various advertising products, the cost of employee incentives (stock options, etc.) that would all be useful in helping it manage its business.

67) Answers will vary! A potential answer might include that automate IT strategic role just automates something that was done before by hand.

This generally represents a cost reduction rather than a new revenue opportunity. The transform IT strategic involves using technology to establish a new business model. New business models, while fraught with risk, often suggest new ways to make money that were not envisioned before and thus might encourage shareholders to pay more for a company’s stock.

68) Answers will vary. Using loyalty cards will help Starbucks understand its customers; that is, what they buy, when they buy it, where they buy it, in what quantities, etc., which is exactly the role of CRM.

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69) Answers will vary. The supply chain allows Dell to forecast demand for its various products and share that demand with its suppliers.

Suppliers will know the long-term plan and thus not be surprised when an actual order arrives. Dell saves money by not having to hold inventory too long saving investment dollars and warehouse space.

70) Answers will vary. By getting this information, Amazon understand its customers; that is, what they buy, when they buy it, in what quantities, etc., and can use it to encourage its customers to buy more products that computer models suggest they might be interested in.

71) Answers will vary. The answer should emphasize the need for specialized skills in order to fully understand and audit an AIS and the technology surrounding it. The CISA designation recognizes that the IS auditor has demonstrated those skills through demonstration of knowledge and practical experience.

72) Answers will vary. A potential answer might indicate that all accountants are users in some sense; at a minimum, they will request and use information in the AIS to perform their jobs, no matter which role they play. The additional role they play will depend on the function being performed, whether as an employee of a company, an auditor for a CPA firm, a tax advisor, an AIS consultant, or other some other function.

73) Answers will vary. A potential answer might reflect information presented in the class or textbook about the IT nature of accounting and the importance of accountants being proficient in roles associated with IT. 74) Answers will vary. A potential answer might reflect that Retail Link saves Wal-Mart and its supplier’s money due to its assessment of what sells and what does not sell. This helps suppliers to save money and Wal-Mart thus requires that this savings be shared between suppliers, Wal-Mart, and Wal-Mart suppliers.

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75) Answers will vary. A not-for-profit group like the International Red Cross might define value by the number of lives saved, the number of liters of blood in storage, its ability to react to a disasters, etc.

76) Answers will vary. Google collects search history data for users of their search engine. This data is then analyzed and transformed into information concerning a users interests. Google can monetize the information on interests by selling it to companies wishing to market a related product.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Accountants now face a challenge of helping businesses optimize processes. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Describe the roles of the accounting/finance function in business and why Topic : Changing Roles of Accountants in Business Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

2)

Every diagram must contain at least two pools. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Changing Roles of Accountants in Business Learning Objective : 02-06 Use pools and lanes to identify process participants.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

3)

A business process does not contain activities. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Recognize the value of business models.

Topic : Value of Business Models Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

4) A business model is typically a graphical depiction of the essential business process information. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 02-03 Recognize the value of business models.

Topic : Value of Business Models Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

5) Documentation can be thought of as a tool for information transmission and communication. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 02-02 Understand the importance of business process documentation.

Topic : Business Process Documentation Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

6)

Documentation is not used to assess internal controls. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Learning Objective : 02-02 Understand the importance of business process documentation.

Topic : Business Process Documentation Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

7)

Models should be simpler than the processes and systems they depict. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 02-03 Recognize the value of business models.

Topic : Value of Business Models Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

8) Business models are often more difficult to understand than written descriptions of activities. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Learning Objective : 02-03 Recognize the value of business models.

Topic : Value of Business Models Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

9)

Activity models are a relatively new process modeling tool. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Characteristics of Business Models Learning Objective : 02-04 Articulate the characteristics of activity models.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

10) In Business Process Modeling Notation (BPMN), activities are named with a short verb phrase placed within the rectangle. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Characteristics of Business Models Learning Objective : 02-04 Articulate the characteristics of activity models.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

11) Business Process Modeling Notation (BPMN) activity models typically show the sequence of flow from right to left and top to bottom. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Characteristics of Business Models Learning Objective : 02-04 Articulate the characteristics of activity models.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

12)

Business Process Modeling Notation (BPMN) activity diagrams depict events as circles. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

13) Business Process Modeling Notation (BPMN) activity diagrams depict activities as circles. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

14) An activity can depict a single action or some logical combination of actions depending on the required level of detail to achieve the objectives of the business process analysis. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

15)

Gateways depict branching of sequence flows but do not depict merging of those flows. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

16) Swimlanes (or lanes) identify participants, e.g., functions or departments, within an organization in a process. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

17) Business Process Modeling Notation (BPMN) activity diagrams are conceptually similar to process maps. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

18) Business Process Modeling Notation (BPMN) start events are shown using ovals and flowchart start events are shown using circles. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

19)

Activity models can be used after a new system is implemented. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Characteristics of Business Models Learning Objective : 02-04 Articulate the characteristics of activity models.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

20)

Data Flow Diagrams start with a circle indicating the start event. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Characteristics of Business Models Learning Objective : 02-04 Articulate the characteristics of activity models.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

21) 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.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Describe the roles of the accounting/finance function in business and why Topic : Changing Roles of Accountants in Business Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

22) Which of the following is not a Business Management Support role of the Accounting/Finance Function in Business?

A) Management information.

B) Planning, budgeting and forecasting.

C) Customer support.

D) Investment appraisal.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Describe the roles of the accounting/finance function in business and why Topic : Changing Roles of Accountants in Business Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

23)

Which of the following is not a characteristic of a business model?

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A) Simple.

B) Always refers to only one business process.

C) Graphical.

D) Contains business process information.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Learning Objective : 02-01 Describe the roles of the accounting/finance function in business and why Topic : Changing Roles of Accountants in Business Difficulty : 2 Medium Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

24)

Which of the following is not part of the business analysis process?

A) Ascertaining information about current and future business processes.

B) Using business process modeling tools.

C) Auditing business processes.

D) Documenting current and future business processes.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 02-02 Understand the importance of business process documentation.

Topic : Business Process Documentation Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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25)

Which of the following best describes a business model?

A) A simple, abstract representation of a business process or processes.

B) A sequence of business activities.

C) An evaluation of potential business process improvements.

D) None of the choices are correct.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 02-03 Recognize the value of business models.

Topic : Value of Business Models Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

26)

Process documentation does not include which of the following?

A) Process models.

B) Business rules.

C) User manuals.

D) External audit workpapers.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 02-02 Understand the importance of business process documentation.

Topic : Business Process Documentation Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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27)

Which of the following is not a purpose of documentation?

A) Training.

B) Determining staffing.

C) Describing current processes.

D) Establishing accountability.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 02-02 Understand the importance of business process documentation.

Topic : Business Process Documentation Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

28)

Business models provide value in all of the following areas except which one?

A) Employee performance appraisal.

B) Managing complexity.

C) Specifying systems requirements.

D) Eliciting requirements for new systems.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 02-03 Recognize the value of business models.

Topic : Value of Business Models Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

29)

Which of the following best describes the purpose of an activity model?

A) An activity model describes the sequence of workflow in a business process.

B) An activity model constrains and guides process operations.

C) An activity model depicts data structures.

D) None of the choices are correct.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Characteristics of Business Models Learning Objective : 02-04 Articulate the characteristics of activity models.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

30) Which of the following is not a common element of activity models regardless of the specific modeling notation?

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A) Events to start and stop the workflow.

B) Sequence of flow between tasks.

C) Multiplicities.

D) Decision points that affect the process flow.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Characteristics of Business Models Learning Objective : 02-04 Articulate the characteristics of activity models.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

31) Which of the following is not a building block for Business Process Modeling Notation (BPMN) diagrams?

A) Swimlanes.

B) Events.

C) Gateways.

D) Sequence flows.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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32) Which of the following is not an example of a good Business Process Model Notation (BPMN) model?

A) They are correct.

B) They are clear.

C) They are cohesive.

D) They are consistent.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

33) Which of the following best describes the purpose of a gateway in a Business Process Modeling Notation (BPMN) activity diagram?

A) Shows where the work takes place.

B) Describes the sequence of workflow.

C) Affects the flow of the business process.

D) Controls branching and merging.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

34)

Which of the following symbols depicts an intermediate event?

A) An arrow.

B) A circle with a double line perimeter.

C) A rectangle.

D) A circle with a wide single line perimeter.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

35)

Which of the following symbols depicts an activity?

A) An arrow.

B) A circle with a double line perimeter.

C) A rectangle.

D) A circle with a wide single line perimeter.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

36) Which of the following notations is used to depict different organizations in one Business Process Modeling Notation (BPMN) diagram?

A) Gateway.

B) Message flow.

C) Pool.

D) Intermediate event.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

37)

Which of the following best describes the purpose of swimlanes (or lanes)?

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A) Depict different elements of timing involved in a process.

B) Depict different departments of the same organization in a process.

C) Depict interactions between organizations in a process.

D) Depict the sequence of tasks in a process.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

38) Which of the following best describes a Business Process Modeling Notation (BPMN) message flow?

A) Shows the sequence of activities in a process.

B) Shows interactions between participants in a process.

C) Affects the flow of a business process.

D) Shows branching and merging in a business process.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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39) Which of the following best describes the difference between a Business Process Modeling Notation (BPMN) gateway and a flowcharting decision diamond?

A) Only the decision diamond shows branching of the sequence flow.

B) The gateway ony represents branching and not the decision that results in branching.

C) Only the gateway shows branching of the sequence flow.

D) The decision diamond can depict more branching options.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Difficulty : 2 Medium Bloom's : Understand Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

40)

Which of the following represents a parallel multi-instance task?

A) One employee taking an order while another collects payment in a drive-through.

B) Many customers watching one movie.

C) Two baristas working at a Starbucks counter.

D) One employee taking pizza orders.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Difficulty : 2 Medium Bloom's : Understand Source : Original Learning Objective : 02-09 Recognize and model repeating activities.

Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

41) In order to perform their required roles and be valuable business partners, accountants must understand all of the following except: A) How the business identifies and designs its products and services.

B) How the business collects data, summarizes it, and communicates business information.

C) How the business delivers value, interacts with other businesses, and is a good corporate citizen.

D) What risks the business faces, and how internal controls can mitigate those risks.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Describe the roles of the accounting/finance function in business and why Topic : Changing Roles of Accountants in Business Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

42) Which of the following best describes why the Sarbanes-Oxley Act of 2002 (SOX) made documentation of business processes essential for businesses?

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A) SOX mandates that accountants create the business rules and documenation associated with a company’s business processes.

B) SOX requires managers to assess and attest to the company’s internal controls structures and procedures.

C) SOX explicitly states that all business processes must be documented.

D) SOX allows thorough documentation of business processes to act as a substitute for a full review of internal control structures and procedures.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-02 Understand the importance of business process documentation.

Topic : Business Process Documentation Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

43) Which of the following best describes how business models help companies manage complexity?

A) Because business models can’t exceed one page, managers can understand how the business works at a glance.

B) Although business models are a simplification of the actual processes they represent, they incorporate the processes’ essential elements.

C) Business models’ limitations force managers to simplify the company’s actual processes.

D) Business models must display every detailed task and activity, which allows managers to visualize the complexity inherent in its business processes.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Recognize the value of business models.

Topic : Value of Business Models Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

44)

Activity models are analagous to which of the following?

A) The prototype for a new car model.

B) A blueprint.

C) The instructions in a recipe.

D) A car’s steering system.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Characteristics of Business Models Learning Objective : 02-04 Articulate the characteristics of activity models.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

45)

When creating a BPMN activity model, which of the following is most accurate?

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A) Modeling is an artistic endeavor; therefore different modelers given the same set of facts about a business process will likely develop very different models of the process.

B) The resulting BPMN activity model should closely match the structure of the subsequent database.

C) All activity models should include gateways.

D) Different modelers given the same set of facts about a busines process should develop similar models of the process.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Source : Original Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

46)

A pool in a BPMN activity model represents: A) An organization/entity.

B) A department or functional area.

C) A specific individual.

D) A logical activity.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-06 Use pools and lanes to identify process participants.

Source : Original Topic : Identifying Participants in Business Process Diagrams Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

47)

Message flows in BPMN activity diagrams indicate an exchange between: A) Activities in the same swimlane.

B) Participants in a process C) Gateways in different swimlanes.

D) Events in the same pool.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 02-07 Apply message flows to show interactions between pools.

Topic : Messages in BPMN Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

48)

An opaque external pool in a BPMN activity diagram is typically used becasue: A) The external pool event is not important for the model.

B) It hides confidential information.

C) It involves external parties.

D) The external pool event contains a gateway that is addressed later.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 2 Medium Source : Original Learning Objective : 02-07 Apply message flows to show interactions between pools.

Topic : Messages in BPMN Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

49)

Which of the following is not a valid BPMN gateway type?

A) Parallel gateway.

B) Serial gateway.

C) Inclusive gateway.

D) Exclusive gateway.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 02-08 Understand and apply flow object types.

Topic : Extended Building Blocks for BPMN Diagrams and Modeling Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

50)

Which of the following BPMN shapes represents a Parallel Gateway?

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A)

B)

C)

D)

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 02-08 Understand and apply flow object types.

Topic : Extended Building Blocks for BPMN Diagrams and Modeling Concepts Accessibility : Keyboard Navigation Gradable : automatic

51)

Which of the following BPMN shapes represents an Error Event?

A) %media:img_51_a.jpg% B) %media:img_51_b.jpg% C) %media:img_51_c.jpg% D) %media:img_51_d.jpg%

Question Details

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52)

A boundary event in a BPMN activity model: A) Moves messages between pools.

B) Occurs for all errors.

C) Is attached to the edge of an activity.

D) Occurs as a message leaves a pool.

Question Details

53)

Which of the following BPMN shapes represents a parallel multi-instance task?

A) %media:img_53_a.jpg% B) %media:img_53_b.jpg% C) %media:img_53_c.jpg% D) %media:img_53_d.jpg%

Question Details

54)

Which of the following BPMN shapes represents a data object?

A) %media:img_54_a.jpg% B) %media:img_54_b.jpg% C) %media:img_54_c.jpg% D) %media:img_54_d.jpg%

Question Details

55)

Which of the following BPMN shapes represents a data store?

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A) %media:img_54_a.jpg% B) %media:img_54_b.jpg% C) %media:img_54_c.jpg% D) %media:img_54_d.jpg%

Question Details

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

56) Use the following description to create a Business Process Modeling Notation (BPMN) activity diagram of Nora’s process.

Nora accesses the Amazon.com website to purchase a favorite musician’s latest album. She searches for the musician’s name. Amazon displays the results of the search, and she selects the correct entry. She samples the music and then decides whether to purchase the album. If she decides to purchase the album, then she must decide whether to purchase a physical CD or just download the MP3 files.

If she decides to purchase the CD, she clicks on the buy now button. Since she is an Amazon Prime member, she automatically receives free 2-day delivery and the item is charged to her credit card. She then waits 2 days for the delivery of the CD. When it arrives, she can enjoy the music.

If she decides to purchase the MP3, she selects that option and again clicks on the buy now button. She is charged for the item and taken to a page to download her music. She downloads the album, and then she can enjoy her music.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Source : Original Accessibility : Keyboard Navigation Difficulty : 3 Hard Bloom's : Apply Gradable : manual

57) Use the following description to create a Business Process Modeling Notation (BPMN) activity diagram of Jeremy’s process.

Jeremy is using his bank’s online banking site to pay for his new phone. He logs onto the bank’s website by entering his user name and password, confirming his SiteKey. After access to his account, he selects the Bill Pay tab. He searches to see of the phone company is already listed in the “Pay To Accounts.”

If the phone company is not listed, he clicks on the option to “Add a New Pay To Account.” He fills in the information for the phone company, including the name, address, account number, and phone number. After completing the entry, he is taken back to the list of “Pay To Accounts.”

If the phone company is listed (or if he just completed entering the new account), he enters the amount of the payment. Then, he selects the option to set up a recurring payment. He enters the number of payments. Then, he selects the date that the payment should be sent each month. He then logs out of the banks online banking site and closes his browser.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Source : Original Accessibility : Keyboard Navigation Difficulty : 3 Hard Bloom's : Apply Gradable : manual

58) Use the following description to create a Business Process Modeling Notation (BPMN) activity diagram of Caitlin’s process.

Caitlin is planning to run in the local July 4th 5K run. She wants to register online, but she forgot the websites URL. So, she navigates to Google and starts a search for the site. She selects the registration site from the search results. Once at the site, she selects the option to register for the 4th of July run. She fills in the registration form and provides her credit card information for payment.

After completing her own registration, she decides to register the other members of her team.

One-by-one, she enters the registration information for the team member and pays for their entry.

After completing all the registrations, she provides a user name and password so she can return to the site to see their results after the race. She logs out of the site and closes her browser.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Business Process Modeling Notation Learning Objective : 02-05 Understand and apply the building blocks for BPMN (activity) diagrams.

Source : Original Accessibility : Keyboard Navigation Difficulty : 3 Hard Bloom's : Apply Gradable : manual

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Answer Key Test name: Chapter 02 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) FALSE 12) TRUE 13) FALSE 14) TRUE 15) FALSE 16) TRUE 17) TRUE 18) FALSE 19) TRUE 20) FALSE 21) A 22) C 23) B 24) C 25) A 26) D Version 1

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27) B 28) A 29) A 30) C 31) A 32) C 33) D 34) B 35) C 36) C 37) B 38) B 39) B 40) B 41) A 42) B 43) B 44) C 45) D 46) A 47) B 48) A 49) B 50) B 51) D 52) C 53) B 54) A 55) C

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56) There could be several similar answers, but this is a basic solution:

57) There could be several similar answers, but this is a basic solution:

58) There could be several similar answers, but this is a basic solution:

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The Object Management Group maintains the standard for Unified Modeling Language (UML) Class diagrams. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Learning Objective : 03-01 Understand the purpose of structure models.

Source : Original Topic : Structure Models Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

2) Unified Modeling Language (UML) Class diagrams describe the logical structure of a database system. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

3)

A Class is a separately identifiable collection of business relationships. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

4) In Unified Modeling Language (UML) Class diagrams, a Class is represented by a rectangle. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

5) In Unified Modeling Language (UML) Class diagrams, Associations are represented by dashed lines. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

6) In Unified Modeling Language (UML) the options for minimum multiplicity values are 0, 1, and 2. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Multiplicities Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

Accessibility : Screen Reader Compatible

7) In Unified Modeling Language (UML) the options for maximum multiplicity values are 1 and *. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Multiplicities Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

Accessibility : Screen Reader Compatible

8) In Unified Modeling Language (UML) the options for maximum multiplicity values are 0 and *. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Multiplicities Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

Accessibility : Screen Reader Compatible

9) In Unified Modeling Language (UML) the options for minimum multiplicity values are 1 and *. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Multiplicities Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

Accessibility : Screen Reader Compatible

10) In Unified Modeling Language (UML) attributes are characteristics of individual instances of a Class. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : Multiplicities Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

Bloom's : Understand Accessibility : Screen Reader Compatible

11)

In Unified Modeling Language (UML) primary keys cannot by NULL. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

12)

In Unified Modeling Language (UML) primary keys may be blank. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

13) In Unified Modeling Language (UML) foreign keys allow tables to be linked together in a database. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

14) A generalization relationship models a grouping of things that share common characteristics. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

15)

An aggregation relationship is a form of generalization relationships. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

16) Associations can indicate the roles that one Class takes in its business relationship with another Class. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

17) A database should have exactly the same number of tables as there are Classes in the Unified Modeling Language (UML) Class diagram from which the database is developed. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

18) When building a database from Unified Modeling Language (UML) Class diagrams, each instance of each Class becomes a row in the corresponding table. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

19)

Obligatory business rules state what should not occur. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Decision Requirements and Business Rules Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible Learning Objective : 03-05 Understand process decision requirements and how business rules support pr

20)

Business rules set criteria for branching in activity models. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : Decision Requirements and Business Rules Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Accessibility : Screen Reader Compatible Learning Objective : 03-05 Understand process decision requirements and how business rules support pr

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

21) Which of the following is not something a model of database structures must be able to describe?

A) The entities or things in the domain of interest.

B) The sequence that entities are accessed.

C) The cardinalities that describe how many instances of one entity can be related to another.

D) The attributes or characteristics of the entities and relationships.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 03-01 Understand the purpose of structure models.

Source : Original Topic : Structure Models Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Accessibility : Screen Reader Compatible

22) Which of the following would be least likely to be represented with a Unified Modeling Language (UML) Class?

A) Trucks B) Currency C) Employees D) Bank Account

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Accessibility : Screen Reader Compatible

23)

Which of the following is the best description of an association?

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A) A group of classes.

B) Grouping of items.

C) The relationship between two classes.

D) The number of times one class is related to another.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Accessibility : Screen Reader Compatible

24)

Which of following are possible options for minimum multiplicities?

A) 0 and 1.

B) 0 and *.

C) * and 1.

D) 0, 1, and *.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : Multiplicities Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

Bloom's : Understand Accessibility : Screen Reader Compatible

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25)

Which of the following best describes the purpose of a primary key?

A) Allows linking two or more tables.

B) Indicates the minimum multiplicities for an association.

C) Matches values of foreign keys in other classes.

D) Uniquely identifies each instance of the class.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

26)

Which of the following statements about foreign keys is not true?

A) A foreign key can be a combination of attributes.

B) A foreign key should never be linked to a primary key in another table.

C) Foreign key must match values of the linked primary key.

D) Foreign keys support a defined association.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

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27)

Which of the following is not a criterion for selection of a primary key?

A) The primary key cannot be NULL (blank).

B) The primary key should be controlled by the organization assigning it.

C) Primary keys with sequential values make it easier to spot gaps in the data.

D) The primary key should always be numeric.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

28) Which of the following is not a best practice in preparing Unified Modeling Language (UML) Class diagrams?

A) Opt for simplicity.

B) Use various size class rectangles.

C) Avoid crossing lines whenever possible.

D) Avoid confusing abbreviations.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Accessibility : Screen Reader Compatible

29) Which of the following is not a step in using a Unified Modeling Language (UML) Class model to prepare a database?

A) Map Classes to Tables.

B) Map Attributes to Table Fields.

C) Map Associations to Primary Keys.

D) Map Associations to Foreign Keys.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

30)

Which of the following is not a form of business rules?

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A) Compulsory.

B) Obligatory.

C) Prohibited.

D) Allowed.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Decision Requirements and Business Rules Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible Learning Objective : 03-05 Understand process decision requirements and how business rules support pr

31)

Which of the following is a well-formed business rule?

A) Customers must be over 18 years of age.

B) Customers may not be under 18 years of age.

C) Customers must pay in U. S. dollars.

D) All of these are well-formed business rules.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : Decision Requirements and Business Rules Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Accessibility : Screen Reader Compatible Learning Objective : 03-05 Understand process decision requirements and how business rules support pr

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32) Which of the following best represents a business rule in a decision table where the decision table relates to shipping rules?

A) Customer status in a rewards program.

B) What to charge the customer for shipping based on location.

C) Type of payment for the shipping.

D) Choice of shipping carrier.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Learning Objective : 03-06 Describe decision tables and business rules and the various forms of rules Gradable : automatic Bloom's : Understand Accessibility : Screen Reader Compatible Topic : Business Rules and Decision Tables Difficulty : 3 Hard

33) Consider an association between a Customers class and a Sale class in a Unified Modeling Language (UML) Class diagram. The multiplicities next to the Customers class are 1..1 and the multiplicities next to the Sale class are 0..*. Which of the following is the best way to implement that association in your database?

A) Post the primary key of Customers as a foreign key in Sales.

B) Post the primary key of Sales as a foreign key in Customers.

C) Create a linking table.

D) None of these choices are correct.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : Multiplicities Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

Bloom's : Understand Accessibility : Screen Reader Compatible

34) Consider an association between a Sales class and an Inventory class in a Unified Modeling Language (UML) Class diagram. The multiplicities next to the Sales class are 0..* and the multiplicities next to the Inventory class are 1..*. Which of the following is the best way to implement that association in your database?

A) Post the primary key of Sales as a foreign key in Inventory.

B) Post the primary key of Inventory as a foreign key in Sales.

C) Create a linking table.

D) None of these choices are correct.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : Multiplicities Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

Bloom's : Understand Accessibility : Screen Reader Compatible

35) Consider an association between a Cash Disbursements class and a Cash Accounts class in a Unified Modeling Language (UML) Class diagram. The multiplicities next to the Cash Disbursements class are 0..* and the multiplicities next to the Cash Accounts class are 1..1.

Which of the following is the best way to implement that association in your database?

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A) Post the primary key of Cash Disbursements as a foreign key in Cash Accounts.

B) Post the primary key of Cash Accounts as a foreign key in Cash Disbursements.

C) Create a linking table.

D) None of these choices are correct.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

36) Consider an association between a Pet Owners class and a Pets class in a Unified Modeling Language (UML) Class diagram. The multiplicities next to the Pet Owners class are 1..1 and the multiplicities next to the Pets class are 1..*. Which of the following is the best way to implement that association in your database?

A) Post the primary key of Pet Owners as a foreign key in Pets.

B) Post the primary key of Pets as a foreign key in Pet Owners.

C) Create a linking table.

D) None of these choices are correct.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

37) Consider an association between a Cities class and a Neighborhoods class in a Unified Modeling Language (UML) Class diagram. The multiplicities next to the Cities class are 1..1 and the multiplicities next to the Neighborhoods class are 1..*. Which of the following is the best way to implement that association in your database?

A) Post the primary key of Cities as a foreign key in Neighborhoods.

B) Post the primary key of Neighborhoods as a foreign key in Cities.

C) Create a linking table.

D) None of these choices are correct.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

38) Consider an association between a Deliveries class and a Shipping Companies class in a Unified Modeling Language (UML) Class diagram. The multiplicities next to the Deliveries class are 0..* and the multiplicities next to the Shipping Companies class are 1..1. Which of the following is the best way to implement that association in your database?

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A) Post the primary key of Deliveries as a foreign key in Shipping Companies.

B) Post the primary key of Shipping Companies as a foreign key in Deliveries.

C) Create a linking table.

D) None of these choices are correct.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

39) Consider an association indicating professional licensing status between an Accountant class and a States class in a Unified Modeling Language (UML) Class diagram. The multiplicities next to the Accountants class are 0..* and the multiplicities next to the States class are 0..*. Which of the following is the best way to implement that association in your database?

A) Post the primary key of Accountants as a foreign key in States.

B) Post the primary key of States as a foreign key in Accountants.

C) Create a linking table.

D) None of these choices are correct.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

40) Consider an association between a Cash Disbursements class and a Vendors class in a Unified Modeling Language (UML) Class diagram. The multiplicities next to the Cash Disbursements class are 0..* and the multiplicities next to the Vendors class are 1..1. Which of the following is the best way to implement that association in your database?

A) Post the primary key of Cash Disbursements as a foreign key in Vendors.

B) Post the primary key of Vendors as a foreign key in Cash Disbursements.

C) Create a linking table.

D) None of these choices are correct.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

41) Logical database structure models, including UML Class Diagrams, must be able to describe which of the following?

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A) The attributes of the entities B) The activities performed in the business process.

C) The operations performed on the database.

D) The Bachman diagram.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Learning Objective : 03-01 Understand the purpose of structure models.

Source : Original Topic : Structure Models Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

42) Which of the following is not one of the building blocks used for creating UML Class Diagrams?

A) Classes.

B) Events.

C) Associations.

D) None of these other choices are used in UML Class Diagrams.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

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43) A database being built to support customer purchase information would likely have the following classes except: A) Customer B) Order C) Inventory D) Color

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Building Blocks for UML Class Diagrams Learning Objective : 03-02 Understand and apply the building blocks for UML Class (structure) Diagram Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible

44) What is the best description of the relationship between employee and vehicle in the following UML class diagram?

A) Zero-to-one.

B) Zero-to-zero.

C) One-to-one.

D) One-to-many.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Multiplicities Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

45) What is the best description of the relationship between employee and vehicle in the following UML class diagram?

A) One-to-one.

B) One-to-many.

C) Zero-to-many.

D) One-to-zero.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Multiplicities Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

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46) What is the best description of the relationship between instructor and course in the following UML class diagram?

A) One-to-zero.

B) One-to-many.

C) Zero-to-many.

D) Many-to-many.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Multiplicities Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

47)

Which attribute in the following class would make the best primary key?

Customer Customer Name Street City State Postal Code Customer ID Phone Number E-mail Address Credit Limit

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A) Customer B) Customer Name C) E-mail address D) Customer ID

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Multiplicities Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

48)

Which of the following UML class diagrams depicts an aggregation relationship?

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A)

B)

C)

D)

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Multiplicities Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-03 Describe multiplicities for a UML class diagram.

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49) Which of the following is most similar to the relationship between the UML class diagram and the database?

A) The relationship between a blueprint and building.

B) The relationship between driving directions and a map.

C) The relationship between raw materials and finished goods.

D) The relationship between cooking instructions and ingredients.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

50) When implementing the database from a UML class diagram, attributes should be mapped to which of the following?

A) Tables.

B) Relationships.

C) Fields.

D) Indexes.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

51) When implementing the database from a UML class diagram, associations should be mapped to which of the following?

A) Tables.

B) Fields.

C) Relationships.

D) Foreign keys.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Accessibility : Screen Reader Compatible

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52) The following UML class diagram should result in how many tables in the relational database?

A) 4 B) 5 C) 6 D) 7

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram

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53) The following UML class diagram should result in how many tables in the relational database?

A) 4 B) 5 C) 6 D) 7

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram

54) Which situation best exemplifies why anaylsts must understand process decision requirements?

A) A business accepts cash, checks and all major credit cards B) A business can only transact with retailers who have a valid business license C) A business sells multiple types of widgets D) A business has three bank accounts

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Decision Requirements and Business Rules Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible Learning Objective : 03-05 Understand process decision requirements and how business rules support pr

55)

Which of the following is not a valid enforcement level for business rules?

A) Segregation.

B) Pre-override.

C) Strict Enforcement.

D) Post-override.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Topic : Decision Requirements and Business Rules Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Remember Accessibility : Screen Reader Compatible Learning Objective : 03-05 Understand process decision requirements and how business rules support pr

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ESSAY. Write your answer in the space provided or on a separate sheet of paper.

56) Identify the classes and associations in the following narrative and draw a class diagram with multiplicities: Dr. Jeff runs Fountain Valley Veterinary Clinic. He treats many animals and each animal is usually a pet belonging to one owner; however, Dr. Jeff sometimes treats injured animals even if the owner is unknown. In a typical visit to the clinic, each animal could receive one or more clinic services (such as tests, shots, and surgical treatments). The clinic collects one payment from the owner for all the clinic services performed in each visit. The owners pay for the visit when they pick up their pet, so the clinic does not track cash receipts separately. It only tracks pet visits and whether or not payment was received for that visit. Each payment is deposited into one clinic bank account. The clinic does not track which employee performs the services or collects payments. The clinic records information about the pets and their owners on their first visit.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Bloom's : Apply Difficulty : 3 Hard Gradable : manual

57) Identify the classes and associations in the following narrative and draw a class diagram with multiplicities: To put himself through school, Zach operates an ice cream truck that travels through neighborhoods, ringing a bell to attract kids that want a cold ice cream treat. Zach’s inventory includes many ice cream products and he tracks which items are sold in each sale. He occasionally adds new items to his list of ice cream products for sale. Zach only accepts cash for each sale. To identify the routes that generate the most sales, Zach summarizes sales by neighborhood but he only tracks neighborhoods with at least one sale. Zach deposits the cash received in his bank account at the end of each day.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Bloom's : Apply Difficulty : 3 Hard Gradable : manual

58) Identify the classes and associations in the following narrative and draw a class diagram with multiplicities: Barb maintains a real estate tracking system for Orange County. There are currently 34 incorporated cities and 15 unincorporated communities in the county. Barb tracks all of these as cities. Within each city, there is at least one and could be many neighborhoods.

Within each neighborhood, there is at least one and likely many houses. For each house, Barb tracks information for all the sales in the last 20 years, although some houses have not been sold in the last 20 years.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Bloom's : Apply Difficulty : 3 Hard Gradable : manual

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59) List the tables with primary keys, attributes, and foreign keys that implement the following UML Class diagram given the accompanying list of attributes. Identify primary keys with PK and foreign keys with FK. {MISSING IMAGE} Attributes: Field ID Field Location Field Name Game Date Game Number League ID League Name League Sport Number of fields assigned to this league

Number of players on team Player Age Player Average Player ID Player Name Score of this team in this game Team ID Team Name

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Bloom's : Apply Difficulty : 3 Hard Gradable : manual

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60) List the tables with primary keys, attributes, and foreign keys that implement the following UML Class diagram given the accompanying list of attributes. {MISSING IMAGE} Attributes: Bicycle color Bicycle product number Bicycle quantity on hand Bicycle size Bicycle Type Bicycle Type Description Customer address Customer name Customer number

Geographic region description Geographic region identifier Number of bicycles of this type on hand Price of this bicycle sold on this invoice Quantity of this bicycle sold on this invoice Sale total $ amount Sales invoice date Sales invoice number Year-to-date sales $ for this region

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Topic : UML Class Models for Relational Database Design Accessibility : Keyboard Navigation Learning Objective : 03-04 Understand how to implement a relational database from a UML class diagram Bloom's : Apply Difficulty : 3 Hard Gradable : manual

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Answer Key Test name: Chapter 03 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) FALSE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) TRUE 12) FALSE 13) TRUE 14) TRUE 15) FALSE 16) TRUE 17) FALSE 18) TRUE 19) FALSE 20) TRUE 21) B 22) B 23) C 24) A 25) D 26) B Version 1

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27) D 28) B 29) C 30) A 31) D 32) B 33) A 34) C 35) B 36) A 37) A 38) B 39) C 40) B 41) A 42) B 43) D 44) C 45) B 46) D 47) D 48) C 49) A 50) C 51) D 52) B 53) C 54) B 55) A 56){MISSING IMAGE}

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57){MISSING IMAGE} 58){MISSING IMAGE} 59) Fields = Field ID (PK), Field Location, Field Name Games = Game Number (PK), Field ID (FK), Game Date Teams = Team ID (PK), League ID (FK), Team Name, Number of Players on this Team Players = Player ID (PK), Player Name, Player Age, Player Average Leagues = League ID (PK), League Name, League Sport (Linking Tables) Games− Teams = Game Number/Identifier + Team ID (PK), Score of this team in this game Leagues − Fields = League ID + Field ID (PK), Number of fields assigned to this league Players-Teams = Player ID + Team ID (PK) 60) Types of Bicycles = Bicycle Type (PK), Bicycle Type Description, Number of bicycles of this type on hand Bicycles = Bicycle Product Number (PK), Bicycle Type (FK), Bicycle Size, Bicycle Color, Bicycle Quantity on Hand Sales = Sales Invoice Number (PK), Customer Number (FK), Sales Invoice Date, Sale Total $ Amount Customers = Customer Number (PK), Geographic Region Identifier (FK), Customer Name, Customer Address Geographic Region = Geographic Region Identifier (PK), Geographic Region Description, Year-to-date Sales $ for this Region (Linking Tables) Sales - Bicycles = Sales Invoice Number + Bicycle Product Number (PK), Price of this Bicycle Sold on this Invoice, Quantity of this Bicycle Sold on this Invoice

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Three types of data models used today are: the hierarchical model, the network model and the relational model. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

2)

In a hierarchical data model, data elements are related in many-to-many relationships. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Accessibility : Screen Reader Compatible

3) Classes could be grouped into Resources (R), Entities (E), and Assets (A) in data modeling. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

4)

Queries in Access are utilized by users to enter data into tables and view existing records. ⊚ true ⊚ false

Question Details AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AACSB : Technology AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible

5)

The SQL command "Group by" can be used to order an amount in a descending order. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium AICPA : BB Critical Thinking Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) Accessibility : Screen Reader Compatible

6) The asterisk (*) following the SELECT SQL statement is a wild card indicating all columns should be selected. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium AICPA : BB Critical Thinking Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) Accessibility : Screen Reader Compatible

7)

The "Where" SQL clause can be used to link two tables. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium AICPA : BB Critical Thinking Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) Accessibility : Screen Reader Compatible

8) Access offers modules, which are defined by users to automate processes like opening a specific form. ⊚ true ⊚ false Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AACSB : Technology AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible

9)

In Access, users can edit database information in reports. ⊚ true ⊚ false

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Question Details AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AACSB : Technology AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible

10) Cloud computing is an internet-based computing where shared resources, software, and information is provided to firms on demand. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-05 Assess how cloud computing facilitates enterprise systems.

Topic : Enterprise Systems Computing in the Cloud Accessibility : Screen Reader Compatible

11) While hierarchical and network data models require relationships to be formed at the database creation, relational data models allow relationships to be created and updated as needed. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Accessibility : Screen Reader Compatible

12)

Each attribute in a table can have several names. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

13) Access is a simple database management system that can be used to run databases for individuals and small firms. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

14)

SQL is based on relational algebra and allows a user to query and update the database. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) Accessibility : Screen Reader Compatible

15) In a database, while queries allow the user to access, read and report on desired data, the responsibility of actually making physical changes to the relational database belongs to the Database Management System (DBMS). ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

16) Which type of data models allows each record to have multiple parent and child records?

A) The hierarchical mode.

B) The network model.

C) The relational model.

D) None of these choices is correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Accessibility : Screen Reader Compatible

17)

Which of the following correctly describes the Referential Integrity Rule?

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A) The primary key of a table must have data values (cannot be null).

B) Each attribute in a table must have a unique name.

C) The data value for a foreign key could be null.

D) Values of a specific attribute must be of the same type.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

18)

Which of the following tasks cannot be performed through queries in access?

A) Retrieve and display data.

B) Calculations of data.

C) Data sorting.

D) Create and update relationships.

Question Details AACSB : Reflective Thinking AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible

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19)

In Microsoft Access, we use tables in a database for: A) Data entry.

B) Data storage.

C) Data retrieval.

D) Two of these choices are correct.

Question Details AACSB : Reflective Thinking AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible

20) A company would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application?

A) A decision support system.

B) A Structured Data system.

C) A Microsoft database.

D) An enterprise resource planning system.

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Question Details AICPA : BB Industry Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium AACSB : Analytical Thinking AICPA : FN Decision Making Learning Objective : 04-04 Understand the purpose and basic framework for an enterprise system.

Topic : Enterprise Systems Accessibility : Screen Reader Compatible

21) An enterprise resource planning system has which of the following advantages over multiple independent functional systems?

A) Modifications can be made to each module without affecting other modules.

B) Increased responsiveness and flexibility while aiding in the decision-making process.

C) Increased amount of data redundancy since more than one module contains the same information.

D) Data can be accessed through Structured Query Language (SQL).

Question Details AICPA : BB Industry Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium AACSB : Analytical Thinking AICPA : FN Decision Making Learning Objective : 04-04 Understand the purpose and basic framework for an enterprise system.

Topic : Enterprise Systems Accessibility : Screen Reader Compatible

22)

What kind data model is most commonly used as a basis for today's enterprise systems?

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A) The hierarchical mode.

B) The network model.

C) The relational model.

D) None of these choices is correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

23)

The property of the primary key in a table in Microsoft Access should be set to: A) The Required field = "Yes", the Indexed field = "Yes (No Duplicates)".

B) The Required field = "NO" and the Indexed field = "Yes (No Duplicates)".

C) The Required field = "Yes" and the Indexed field = "Yes (Duplicated)".

D) The Required field = “NO” and the Indexed field = “Yes (Duplicated)”.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AACSB : Technology AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible

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24)

Which of the following is not a construct in a relational database?

A) Tables B) Attributes C) Records D) Forms

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

25)

Which of the following is not a likely module of an Enterprise Reporting System (ERP)?

A) Financial Accounting.

B) Cloud based computing.

C) Payroll.

D) Sales and Distribution.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Source : Original Accessibility : Keyboard Navigation Gradable : automatic Difficulty : 2 Medium AICPA : FN Decision Making Learning Objective : 04-04 Understand the purpose and basic framework for an enterprise system.

Topic : Enterprise Systems Accessibility : Screen Reader Compatible

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26)

Which of the following statements about the requirements of table design is incorrect?

A) Each attribute in a table must have a unique name.

B) Values of a specific attribute must be of the same type.

C) Each attribute (column) of a record (row) must be single-valued.

D) All other non-key attributes in a table must describe a characteristic of the class (table) identified by the foreign key.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

27) 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.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

28) Which set of multiplicities correctly shows the relationship between the Cash Collection table and the Sales table in modeling cash sales?

A) Cash Collection (1..1) – Sale (1..N).

B) Cash Collection (1..N) – Sale (1..N).

C) Cash Collection (1..N) – Sale (1..1).

D) Cash Collection (1..1) – Sale (1..1).

Question Details AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AACSB : Analytical Thinking Bloom's : Apply Difficulty : 3 Hard Accessibility : Screen Reader Compatible

29)

A Query in a program language such as Structured Query Language (SQL) can be used to

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A) Update data.

B) Report data.

C) Retrieve data.

D) All of the choices are correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) Accessibility : Screen Reader Compatible

30)

In Microsoft Access, we use "Forms" for: A) Data entry.

B) Data storage.

C) Date retrieve.

D) Two of the choices are correct.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AACSB : Technology AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible

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31)

The most likely user of a Microsoft Access Report: A) Data input clerk.

B) Store manager.

C) Systems analyst.

D) System coder.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Bloom's : Apply Accessibility : Screen Reader Compatible

32)

Which of the following is not a type of data model?

A) Hierarchical data model.

B) Network data model.

C) Normalization data model.

D) Relational data model.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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33)

What kind of data model has the greatest ability to scale?

A) Hierarchical data model.

B) Network data model.

C) Relational data model.

D) All of the choices are correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

34)

Which of the following about cloud computing is incorrect?

A) Cloud computing is Internet-based computing where shared resources, software, and information are provided to firms on demand.

B) Cloud computing can easily host enterprise system applications.

C) If the internet connection goes down the system will not function.

D) Data stored in a cloud computing system is always secure.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-05 Assess how cloud computing facilitates enterprise systems.

Topic : Enterprise Systems Computing in the Cloud Accessibility : Screen Reader Compatible

35)

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) It is required for forms.

Question Details AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

36)

Which of the following about SQL is incorrect?

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A) SQL is a language designed to query data in a relational database.

B) SQL is based on relational algebra and allows a user to query and update the database.

C) SQL uses the PIVOT function to insert data.

D) SQL uses SELECT statement to tell the query which columns (or attributes) of a table should be included in the query.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) Accessibility : Screen Reader Compatible

37) Which of the following items can best be described as a “Resource” in the REA data model?

A) Cashier.

B) Sales.

C) Cash.

D) Two of the above are correct.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

38) Which of the following items can best be described as an “Event” in the REA data model?

A) Cash.

B) Cashier.

C) Cash collection.

D) Customer.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

39) Which of the following items can best be described as an “Agent” in the REA data model?

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A) Purchases.

B) Purchasing manager.

C) Raw material inventory.

D) Purchase returns.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Understand Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Accessibility : Screen Reader Compatible

40)

Which of the following is not accurate?

A) Columns in a table are called fields.

B) Fields represent attributes of a class.

C) Records represent attributes of a table.

D) Rows in a table are called records.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Gradable : automatic Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases Bloom's : Apply Accessibility : Screen Reader Compatible

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41) Which of the following is not one of the advantages relational data models have over other data models?

A) Exclusively uses parent/child relationships.

B) Increased flexibility and scalability.

C) Simplicity.

D) Reduced information redundancy.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

42)

Which of the following best describes a DBMS? A) The manager(s) in charge of a company’s databases.

B) Software that can create, modify and query databases.

C) A language used to retrieve data from databases.

D) A database created using Microsoft software.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

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43) Classes in a relational database model for AISs are typically grouped into all of the following categories except: A) Events.

B) Agents.

C) Resources.

D) Activities.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

44) Which of the following items does not represent a UML class diagram object and its resulting database object?

A) Classes → Tables.

B) Attributes → Fields.

C) Multiplicities → Records.

D) Associations → Relationships.

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Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

45)

A foreign key in a database table is always: A) A unique identifier for a record in that table.

B) A numeric field.

C) The name of a UML class.

D) A primary key in a related table.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

46)

Which of the following statements best describes the entity integrity rule?

A) A database entity must fit within the REA model.

B) A record’s foreign key value must be null.

C) A record’s primary key must have a data value.

D) All values of an attribute must be of the same data type.

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Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

47)

Which of the following is not one of the objects used in Microsoft Access?

A) Tables.

B) Sites.

C) Forms.

D) Macros.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

48) Which of the following Microsoft Access objects is used to integrate data from one or more queries and/or tables in order to present information useful to decision makers?

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A) Tables.

B) Reports.

C) Forms.

D) Macros.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

49) Which set of multiplicities correctly shows the relationship between the Cash Receipts table and the Sale table for an organization that allows customers to buy on credit and pay in multiple installments?

A) Cash Receipts (1..1) – Sale (1..1).

B) Cash Receipts (1..N) – Sale (0..N).

C) Cash Receipts (1..1) – Sale (N..M).

D) Cash Receipts (0..N) – Sale (1..1).

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

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50) Which of the following operators would be used in a SQL query designed to simply display database records?

A) SELECT. B) INSERT. C) DISPLAY. D) VIEW.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

51) Consider the following SQL query. Which item best describes the results of the query?

SELECT VendorID, Sum(POTotal) FROM [Purchase Orders] GROUP BY VendorID A) Displays all purchase order lines for all vendors.

B) Adds new purchase order information to the purchase orders table.

C) Displays the vendor ID and all purchase order totals in the purchase orders table.

D) Displays the vendor ID and the sum of all purchase order totals for that vendor.

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Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

52) Using the following table what will result from the SQL command “SELECT Item SKU, Price”?

Item SKU 651 546 876 165

Price $ 5.00 $ 4.00 $ 5.00 $ 10.00

Manufacturer Nike Nike Under Armour Addidas

A) All rows but only the 1st and 2nd column.

B) All rows but only columns with numerical data.

C) All data in the 1st and 2nd columns for the first and last row.

D) All data in the table.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Source : Original Accessibility : Keyboard Navigation Gradable : automatic Difficulty : 2 Medium AICPA : BB Leveraging Technology Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) AACSB : Analytical Thinking

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53) Using the following table what will result from the SQL command “SELECT *, WHERE [Price] = $5”?

Item SKU 651 546 876 165

Price $ 5.00 $ 4.00 $ 5.00 $ 10.00

Manufacturer Nike Nike Under Armour Addidas

A) All columns, row 1.

B) Price column, row 1.

C) All columns, rows 1 & 3.

D) Price column, row 3.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Source : Original Accessibility : Keyboard Navigation Gradable : automatic Difficulty : 2 Medium AICPA : BB Leveraging Technology Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) AACSB : Analytical Thinking

54)

ERPs are useful to auditors for which of the following reasons?

A) ERPs use cloud computing technology, which allows auditors to review transactions from anywhere.

B) ERPs track details regarding creation, modification, and use of transactions throughout the organization in a single system.

C) ERPs are required by the Sarbanes-Oxley Act of 2002.

D) ERPs are spread across multiple logical databases, allowing auditors to minimize disruption to processing when reviewing ERP activity.

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Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AACSB : Analytical Thinking Learning Objective : 04-04 Understand the purpose and basic framework for an enterprise system.

Topic : Enterprise Systems Accessibility : Screen Reader Compatible

55) Which of the following is not one of the typical challenges organizations face when implementing an ERP? A) Integrating with external business partners’ information systems.

B) Converting data from legacy systems to the ERP. C) Installing the ERP software.

D) Successfully completing a large project in an organization.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AACSB : Analytical Thinking Learning Objective : 04-04 Understand the purpose and basic framework for an enterprise system.

Topic : Enterprise Systems Accessibility : Screen Reader Compatible

56)

Which of the following best describes cloud computing?

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A) Internet based computing where an ERP system is shared amongst multiple firms.

B) Internet based computing where shared resources, software and information are provided to firms on demand.

C) Internet based software which is used to run SQL queries.

D) Internet based software that helps monitor the security of a firm’s resources.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology Learning Objective : 04-05 Assess how cloud computing facilitates enterprise systems.

Topic : Enterprise Systems Computing in the Cloud AACSB : Analytical Thinking Accessibility : Screen Reader Compatible

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

57) List the seven objects and their functions that are used to implement relational databases using Microsoft Access.

Question Details AACSB : Reflective Thinking AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Gradable : manual

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58)

What are the three main advantages of relational databases?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe the advantages of relational databases.

Source : Original Topic : Introduction Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : manual

59)

Discuss the challenges of enterprise system implementation?

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium AICPA : FN Decision Making Learning Objective : 04-04 Understand the purpose and basic framework for an enterprise system.

Topic : Enterprise Systems Accessibility : Screen Reader Compatible Gradable : manual

60)

Explain the three main types of classes in data modeling.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Explain basic relational database principles.

Topic : Fundamentals of Relational Databases AICPA : FN Decision Making Accessibility : Screen Reader Compatible Gradable : manual

61)

What are the benefits of implementing enterprise systems in companies?

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation AICPA : FN Decision Making Learning Objective : 04-04 Understand the purpose and basic framework for an enterprise system.

Topic : Enterprise Systems Accessibility : Screen Reader Compatible Gradable : manual

62) Search for a case in which a company’s ERP implementation would be considered a failure (other than those presented in the text). Summarize the case and explain the primary reasons that the implementation was a failure.

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Question Details AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation AICPA : BB Leveraging Technology AACSB : Analytical Thinking Learning Objective : 04-04 Understand the purpose and basic framework for an enterprise system.

Topic : Enterprise Systems Bloom's : Apply Difficulty : 3 Hard Accessibility : Screen Reader Compatible Gradable : manual

63) Using the Cash Receipt Table below, show the output if the following SQL command is given: Cash Receipt: Remittance Advice# RA-1 RA-2 RA-3 RA-4 RA-5

Amount

1,666 10,000 72,000 32,600 1,669

Bank Account# BA-6 BA-7 BA-7 BA-7 BA-6

Date 25-JUL-2014 26-JUL-2014 15-AUG-2014 15-AUG-2014 25-AUG-2014

Customer Number

Cashier Number

C-2 C-2 C-1 C-5 C-2

E-39 E-39 E-39 E-39 E-39

SELECT SUM (Amount) FROM [Cash Receipt] Where [Customer Number] =’C-2’;

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) Bloom's : Apply Difficulty : 3 Hard Gradable : manual

64) Using the Cash Receipt Table in the previous question, show the SQL command which will return the result table below.

Remittance Advice#

Amount

RA-3 RA-4

72,000 32,600

Bank Account# BA-7 BA-7

Date 15-AUG-2014 15-AUG-2014

Customer Number

Cashier Number

C-1 C-5

E-39 E-39

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Accessibility : Keyboard Navigation Learning Objective : 04-03 Describe how to query using Structured Query Language (SQL).

Topic : Structured Query Language (SQL) Bloom's : Apply Difficulty : 3 Hard Gradable : manual

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Answer Key Test name: Chapter 04 1) TRUE 2) FALSE 3) FALSE 4) FALSE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) TRUE 12) FALSE 13) TRUE 14) TRUE 15) TRUE 16) B 17) C 18) D 19) B 20) D 21) B 22) C 23) A 24) D 25) B 26) D Version 1

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27) C 28) D 29) D 30) A 31) B 32) C 33) C 34) D 35) C 36) C 37) C 38) C 39) B 40) C 41) A 42) B 43) D 44) C 45) D 46) C 47) B 48) B 49) D 50) A 51) D 52) A 53) C 54) B 55) C 56) B Version 1

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57) ● Tables are used to store data. ● Queries are a tool used to retrieve and display data derived from records stored within the database. ● Forms are utilized to enter data into tables and view existing records. ● Reports are used to integrate data from one or more queries and tables to provide useful information to decision makers. ● Pages allow data to be entered into the database in real time from outside of the database system. ● Macros are defined by users to automate business processes.

58) ● Flexibility and Scalability: relational data models are able to handle changes in business world quickly and easily. ● Simplicity: A relational data model is a relatively simple model that is easy to communicate to both database users and database developers. ● Reduced Information Redundancy: A relational data model requires each piece of data to be recorded only in one place eliminating the need for information to be stored in multiple places in the organization.

59) ● Integrating various modules within the enterprise system, ● Integrating with external systems such as the information system of a supplier and/or customer, ● Integrating with the firm’s own existing legacy systems, ● Converting data from existing legacy systems to the enterprise system, and ● Getting any big project implemented at a firm.

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60) ● Resources (R), events (E), and agents (A) ● Resources are those things that have economic value to a firm, such as cash and products. ● Events are the various business activities conducted in a firm’s daily operations, such as sales and purchases. ● Agents are the people who participate in business events, such as customers and salespeople.

61) Managers (and auditors) can trace the creation of information throughout business processes, and also identify the participants in each process. Therefore, ES has a higher level of internal transparency compared to the typically isolated legacy systems. Other benefits include: ● Availability of information across business functions ● Provides greater capability for analysis of business ● Improved management decision making ● Coordinates business process activities and information collection for those processes and activities across business functions ● Reduces data redundancy in the organization ● Others?

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62) Following is an example. Students’ answer may vary.

A case in which a company failed to implement the ERP systems is Nike’s supply chain disaster (http://www.cio.com/article/32334/Nike_Rebounds_How_and_Why_Ni ke_Recovered_from_Its_Supply_Chain_Disaster).

In this occurrence, Nike had a problem which is now referred to as ‘the i2 problem’ in which a software glitch cost Nike over $100 million in lost sales. Furthermore, Nike’s stock price was depressed by 20 percent and many class action lawsuits followed. In the year 2000, Nike implemented an i2 demand-planning engine which computed orders for thousands more Air Garnett sneakers than market demand and computed orders for thousands fewer Air Jordan’s than market demand. One of the main reasons that caused the failure and why Nike could recover was that Nike had a business plan which was widely understood. The software problem, which was related to factory orders in Nike’s case, sends a ripple through the product delivery which results into a much larger effect that eventually crashes on the balance sheet. In the end, this effect was so large that Nike had to reveal its losses at analysts in order to prevent confusion from the end of SEC and its shareholders.

Nike ended up stopping the use of the i2 demand planner in favor of using the SAP ERP system, which relies on orders and invoices rather than what the i2 relied on, which was predictive algorithms. Nike had been attempting to integrate the i2 demand planning software as part of a wider strategy to implement ERP, supply chain planning, and CRM software onto a single platform shared by Nike operations in areas all over the world.

The reason that the i2 problem emerged was that Nike decided to install i2 while still using its legacy systems rather than adhering to their original plan which was to deploy i2 as part of its SAP ERP project. This caused some problems, such as the problem of heavy customization of i2 Version 1

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software with Nike’s legacy systems. This spilled over into factory orders, in which the i2 system duplicated some orders and ignored other orders.

Nike had felt a false sense of security when they decided to install i2 due to the fact that it was a much smaller project when compared to the SAP plan. They felt that they could use i2 without changing much of the other business software, but they were incorrect in regards to integration complications. Essentially, the installation of the i2 software was too rushed, and there was not enough training for the employees.

63) 13,335 64) SELECT * FROM [Cash Receipt] WHERE Date = ‘15-AUG-2014’; Or, SELECT * FROM [Cash Receipt] WHERE Amount > 32000; (or other valid expression for Amount)

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Type images can be used to allow process information to be summarized by category. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

2)

BPMN models can describe the collaboration between two organizations using pools. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-03 Understand and apply different activity modeling options.

Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

3)

A BPMN process flow can start in one pool and end in the collaborating pool. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-03 Understand and apply different activity modeling options.

Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

4) In a collaboration model using BPMN, the interaction between participants is called orchestration. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 05-03 Understand and apply different activity modeling options.

Bloom's : Remember Difficulty : 1 Easy Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

5)

A pool in a BPMN model does not actually have to display any activities. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 05-03 Understand and apply different activity modeling options.

Bloom's : Remember Difficulty : 1 Easy Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

6)

An intermediate error event can be used to model process exceptions. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-03 Understand and apply different activity modeling options.

Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

7)

Application controls limit who can change records in a system. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Develop business rules to implement controls for the sales and collection Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for Sales and Collections with Business Rules Accessibility : Screen Reader Compatible

8)

Segregation of duties is an example of a COSO control activity. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Develop business rules to implement controls for the sales and collection Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for Sales and Collections with Business Rules Accessibility : Screen Reader Compatible

9) Business rules are unrelated to COSO control activities, although they serve an important purpose. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-04 Develop business rules to implement controls for the sales and collection Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for Sales and Collections with Business Rules Accessibility : Screen Reader Compatible

10)

One-to-many relationships are implemented by posting a foreign key. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-06 Use multiplicities to implement foreign keys in relational tables.

Gradable : automatic Accessibility : Keyboard Navigation Topic : Foreign Keys in Relational Tables Accessibility : Screen Reader Compatible

11)

Many-to-many relationships are implemented by posting a foreign key. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-06 Use multiplicities to implement foreign keys in relational tables.

Gradable : automatic Accessibility : Keyboard Navigation Topic : Foreign Keys in Relational Tables Accessibility : Screen Reader Compatible

12)

One-to-one relationships are implemented by creating a linking table. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-06 Use multiplicities to implement foreign keys in relational tables.

Gradable : automatic Accessibility : Keyboard Navigation Topic : Foreign Keys in Relational Tables Accessibility : Screen Reader Compatible

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

13) Which of the following best describes the purpose of a BPMN collapsed sub-process?

A) A series of events is hidden from view as the information is not well controlled.

B) The collapsed process will be modeled at a later time.

C) A series of events is hidden from view as the information is not necessary to the model.

D) The collapsed process contains too many errors.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-02 Develop an activity model of the sales and collection process using BPMN. Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Process Using BPMN Accessibility : Screen Reader Compatible

14)

Which of the following best describes the purpose of an intermediate error event?

A) Shows the interchange between two pools.

B) Depicts the sequence of activities in one pool.

C) Contains a series of activities that are hidden from view.

D) Illustrates the process flow when an exception occurs.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-02 Develop an activity model of the sales and collection process using BPMN. Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Process Using BPMN Accessibility : Screen Reader Compatible

15) Which of the following best describes the difference between access controls and application controls?

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A) Access controls limit who can change records and application controls ensure data integrity and provide an audit trail of any changes.

B) Access controls limit how many records can be changed and application controls ensure segregation of duties.

C) Access controls are "prohibited" business rules and application controls are "allowed" business rules.

D) There is no difference between access and application controls.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 05-03 Understand and apply different activity modeling options.

Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

16) Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Quote class and the Order class?

A) Quotes and orders are entered into the system at the same time.

B) Each quote may result in many future Orders.

C) The same Sunset Partner both prepares quotes and records orders.

D) Each order must result from a prior quote.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

17) Refer to the following diagram. Which of the following answers provides the best interpretation of the multiplicities for the association between the Order class and the Products class?

A) Each order must specify the same products as the previous quote.

B) Each product has been ordered at least once.

C) An order does not have to include a product.

D) An order may include many products.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

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18) Refer to the following diagram. Which of the following answers provides the best interpretation of the multiplicities for the association between the Cash Receipt and Cash classes?

A) Each cash receipt is deposited into one bank account.

B) Each order increases accounts receivable.

C) The company only has one bank account.

D) Some cash receipts are not deposited into a bank account.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

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19) Refer to the following diagram. Which of the following answers provides the best interpretation of the multiplicities for the association between the Orders and Cash Receipt classes?

A) Some customers pay for their orders in advance.

B) Some orders result in several payments from the customers.

C) Each cash receipt pays for at least one order, but it could pay for many orders.

D) Each cash receipt pays for a minimum of 0 orders and a maximum of 1 order.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

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20) Refer to the following diagram. Which of the following answers provides the best interpretation of the multiplicities for the association between the Employees and the Product Categories classes?

A) Each employee must be assigned to manage at least one product category.

B) Each product category has one manager.

C) Each product category can have no managers or multiple managers.

D) Each employee can manage only one product category.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

21) Refer to the following diagram. Which of the following answers does not provide a valid interpretation of the multiplicities for the association between the Employees and the Sales classes?

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A) Only one employee participates in each sale.

B) Several employees participate in each sale.

C) Some employees do not participate in sales.

D) Some employees participate in several sales.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

22) Refer to the following diagram. Which of the following answers does not provide a valid interpretation of the multiplicities for the association between the Inventory and the Product Category classes?

A) Every product category is managed by one employee.

B) Every product category includes at least one inventory item.

C) Some product categories do not include inventory items.

D) Every inventory item is in at most one product category.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

23) Which of the following activities is not associated with the sales and collection business process?

A) Recording customer payments.

B) Maintaining vendor records.

C) Selling products and services.

D) Billing customers.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Describe the business activities that comprise the sales and collection pr Topic : Sales and Collection Process Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

24) Which of the following accounts is generally not impacted as part of the Sales and Collections process?

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A) Cash B) Accounts Receivable C) Inventory D) Accounts Payable

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Describe the business activities that comprise the sales and collection pr Topic : Sales and Collection Process Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

25)

Which of the following best describes the purpose of an intermediate timer event?

A) Shows the timing of messages between two pools.

B) Determines when the business process begins.

C) Illustrates the process flow when a delay occurs.

D) Contains a series of activities that are hidden from view.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Develop an activity model of the sales and collection process using BPMN. Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Process Using BPMN Accessibility : Screen Reader Compatible

26)

Which of the following is not an example of a business rule?

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A) Managers must approve orders over $10,000 B) The credit department must approve all sales on account C) Inventory must be maintained in a secure location D) Employee who receives checks can not change invoices

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Develop an activity model of the sales and collection process using BPMN. Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Process Using BPMN Accessibility : Screen Reader Compatible

27)

Which of the following best describes the choreography in a BPMN activity diagram?

A) Shows the interaction of messages between participants in the business process.

B) Hides activities that are not of interest in the analysis of the business process.

C) Shows the sequence of activities within one pool.

D) Follows the sequence flow from start to end.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 05-03 Understand and apply different activity modeling options.

Bloom's : Remember Difficulty : 1 Easy Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

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28)

Which of the following best describes the orchestration in a BPMN activity diagram?

A) Shows the interaction of messages between participants in the business process.

B) Hides activities that are not of interest in the analysis of the business process.

C) Shows the sequence of activities within one pool.

D) Follows the sequence flow from start to end.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 05-03 Understand and apply different activity modeling options.

Bloom's : Remember Difficulty : 1 Easy Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

29)

Which of the following is not something a busines rule would implement?

A) Segregation of Duties B) Authorization C) Notifications D) Approval

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 2 Medium Source : Original Bloom's : Remember Learning Objective : 05-04 Develop business rules to implement controls for the sales and collection Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for Sales and Collections with Business Rules Accessibility : Screen Reader Compatible

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30)

Business rules are an example of which COSO concept?

A) Internal control B) Control activities C) Control environment D) Activity models

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Develop business rules to implement controls for the sales and collection Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for Sales and Collections with Business Rules Accessibility : Screen Reader Compatible

31)

Which of these database requirements would be solved with a type image?

A) Allow companies to include graphic images in class models.

B) Used to enumerate a many-to-many association between two REA classes.

C) Allow modelers to note types of controls.

D) Allow products to be grouped into categories.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 2 Medium Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Bloom's : Remember Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams Accessibility : Screen Reader Compatible

32) Consider the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Sales Orders class and the Cash Receipts class?

A) A single cash receipt may apply to only one sales order.

B) Sales orders and cash receipts must be entered into the system at the same time.

C) Customers may pay for sales orders in multiple payments.

D) An employee might never record a sales order.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

33) Consider the following diagram. How will the database relationship between Customers and Sales Orders be implemented?

A) The Sales Order ID will be included as a foreign key in the Customers table.

B) The Customer ID will be included as a foreign key in the Sales Orders table.

C) The Customer ID will be included as a primary key in the Customer table.

D) The Sales Order ID will be included as a primary key in the Customer table.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-06 Use multiplicities to implement foreign keys in relational tables.

Gradable : automatic Accessibility : Keyboard Navigation Topic : Foreign Keys in Relational Tables

34) Consider the following diagram. Which of the following best describes how the relationship between Sales Orders and Products will be implemented in the resulting database?

A) A new table will be created that contains both Sales Order ID and Product ID as its composite primary key.

B) The Product ID will be included as a foreign key in the Sales Orders table.

C) The Sales Order ID will be included as a foreign key in the Products table.

D) The Quantity Ordered field will be included as a foreign key in the Products table.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-07 Implement a relational database from the UML class diagram of the sales an Gradable : automatic Topic : Implementing Relational Databases from a UML Class Diagram of the Sales and Collection Proces

35) What step should be taken when designing a relational database when a many-to-many relationships exists?

A) No action is needed.

B) Create a boundary event.

C) Create two one-to-many relationships.

D) Recreate the foreign key.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams Accessibility : Screen Reader Compatible

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36) Consider the following diagram. How will the database relationship between Employees and Sales Orders be implemented?

A) The Sales Order ID will be included as a foreign key in the Employees table.

B) The Employee ID will be included as a primary key in the Employees table.

C) The Sales Order ID will be included as a primary key in the Employees table.

D) The Employee ID will be included as a foreign key in the Sales Orders table.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-06 Use multiplicities to implement foreign keys in relational tables.

Gradable : automatic Accessibility : Keyboard Navigation Topic : Foreign Keys in Relational Tables

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37) Consider the following diagram. Which of the following best describes how the relationship between Sales Orders and Cash Receipts will be implemented in the resulting database?

A) The Sales Order ID will be included as a foreign key in the Cash Receipts table.

B) A new table will be created that contains both Sales Order ID and Cash Receipt ID as its composite primary key.

C) The Cash Receipt ID will be included as a foreign key in the Sales Orders table.

D) The Cash Receipt Amount field will be included as a foreign key in the Cash Receipts table.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-07 Implement a relational database from the UML class diagram of the sales an Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Sales and Collection Proces

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ESSAY. Write your answer in the space provided or on a separate sheet of paper.

38) La Jolla Management Company (LJMC) manages several apartment complexes and earns revenues by renting out the apartments in those complexes. LJMC assigns an agent/manager (employee) to each complex (one manager can manage several complexes) to handle day-to-day operations, such as maintaining the property, advertising, and signing rental contracts. This case describes the rental (sales) process.

Complexes and apartments. LJMC has acquired fifteen and built several more new apartment complexes over the last two years. It identifies complexes by unique name and apartments by the combination of the complex name and apartment#. LJMC categorizes each apartment according to the number of bedrooms and bathrooms, as well as other factors. There are more than 20 apartment categories at present, each identified by unique category #. Since each complex presents a unique set of luxury appointments and amenities, LJMC determines the standard monthly rental fee by considering both the apartment category and complex, for example 2 bedroom 1 bath apartments (category 21) rent for $1850 per month in the El Dorado Arms complex (where there is no view and the complex is close to a freeway) but the same category apartments rent for $2850 per month in the La Jolla Cove complex (where there is a view of the ocean from most apartments in the complex).

Rentals. LJMC managers negotiate rental contracts with tenants. Rental contract duration is 12 months from the designated apartment availability date (the date the apartment is available to the tenants). Although there is a standard monthly rental fee for each apartment in each building, agents may negotiate higher or lower rents if they see the need to do so. It is important to have a full record of the actual rent for all apartments. When there is more than one tenant per apartment, LJMC requires every tenant to sign the rental contract. LJMC assigns a unique tenant ID# to each tenant and issues them ID cards to control access.

Cash Receipts. LJMC collects the first month rent in advance from the tenants when the rental contract is signed and then collects payments monthly for the life of the contract. Assume that LJMC does not receive cash from other sources.

Other Information. Agents, resources, and type images may be recorded in the database before they are linked to other entities. LJMC tracks all its employees in one employee class.

Required: 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support La Jolla Management Company’s process using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no entities without attributes).

Attributes employee#

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number of bathrooms for apartments in this category 25

appartment square footage

count of available apartments in this category

apartment# date complex was constructed total complex square footage cash receipt# cash receipt date cash receipt amount bank account# bank account balance apartment complex name apartment complex address apartment category# number of bedrooms for apartments in this category

count of rooms in apartment actual monthly rent tenant ID# tenant name rental contract# rental contract date tenant credit rating employee hire date employee name standard monthly rent date apartment available to tenant count of apartments in this complex

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

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39) Pacific Green Company (PGC) provides landscaping services to individual and corporate customers in southern California. Heather F originally founded PGC as a lawn mowing service while she attended graduate school. It became so successful that she delayed her teaching career to concentrate on building the company. This case describes PGC’s landscaping jobs (sales) process.

PGC maintains an inventory of trucks of all sizes to support various landscaping requirements (the acquisition of trucks are outside the scope of this case). PGC tracks the trucks by vehicle identification numbers (VINs) and keeps meticulous records on each truck. For example, they track the mileage for each truck on each landscaping job. Additionally, they track the maintenance history for each truck (maintenance is outside the scope of this case). Each type of truck has a different use and hauling capacity, but each truck in a particular truck type has the same use and hauling capacity.

PGC also maintains an extensive inventory of plants, ranging from colorful flowers to large trees, so they can address almost any landscaping requirement on short notice. Since the common name of many plants vary by region, PGC tracks its plant inventory by scientific names (i.e., the Latin names). To manage the plant inventory and ensure that the best plants are applied to job conditions, Heather categorizes all plants by plant type.

PGC performs landscaping jobs for individual and corporate customers. Before performing any job, Heather prepares a quote describing the scope of service and the price. Sometimes, the customer will elect to perform pieces of the overall quote, so one quote may result in several landscaping jobs. The landscaping quote presents a price estimate based on the types of plants and types of trucks required and the overall time involved. Each quote involves at least one truck type and one plant type.

PGC tracks landscaping jobs by job #. Each landscaping job may require many plants and several trucks. PGC typically assigns multiple employees to each job as follows: (1) one supervisor, (2) one truck drivers per truck, and (3) landscaping laborers. PGC specifically tracks which employees perform which of these functions on specific jobs, since they pay employees according to the work performed on each landscaping job. Customers must pay a 10% deposit when the job begins, another 50% when the job is half completed, and the final 40% within two weeks after the job is fully completed. Customer payments are made by check or credit card and processed for daily deposit by a PGC cashier.

PGC keeps all employee information together (your model should show one Employee class).

They track each employee’s qualifications according to category: purchasing agent, cashier, landscaping laborer, truck driver, supervisor, etc. An employee is considered qualified when he or she reaches the number of training hours required for that category. However, each employee can hold qualifications for several categories, for example an employee qualified as a purchasing agent could also be qualified as a truck driver.

You may assume that all agent, resource, and type image information is entered into the database before any process activity takes place. You may also assume that PGC only receives cash from landscaping jobs.

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Required: 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support PGC’s process using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no entities without attributes).

Attributes: Average price of plants in this category

Landscaping quote amount

Average daily charge to use a truck of this type

Landscaping quote date

Cash account #

Landscaping quote expiration date Light required for plants in this category Number of employees qualified for this employee type Number of plants in this category bid on this quote

Cash account balance Cash receipt # Cash receipt amount

Cash receipt date

Number of training hours to qualify for this employee type

Count of this plant used on this job

Number of trucks of this type bid on this quote

Customer #

Plant category name

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Customer name

Plant common name

Date this employee qualified for this employee type

Plant scientific name

Employee #

Quantity on hand of this plant

Employee hire date

Truck acquired year

Employee name

Truck make

Employee Type Expected maximum size of plants in this category Hours this truck driver worked on this job

Truck mileage to date Truck type

Hours this truck used on this job

Truck type hauling capacity

Truck type use

Landscaping job price

Truck VIN

Landscaping job #

YTD sales $ to this customer

Landscaping job start date

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Landscaping quote #

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 05-05 Develop a structure model for the sales and collection process using UML c Source : Original Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Sales and Collection Structure Models using UML Diagrams

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40) Pacific Green Company (PGC) provides landscaping services to individual and corporate customers in southern California. Heather F originally founded PGC as a lawn mowing service while she attended graduate school. It became so successful that she delayed her teaching career to concentrate on building the company. This case describes PGC’s landscaping jobs (sales) process.

After the customer contacts PGC about a landscaping project, a PGC manager prepares a quote describing the scope of service and the price. After reviewing the quote and comparing PGC’s quote to other landscapers, customers may 1) accept the quote, 2) notify PGC that they did not get the job, or 3) request that the quote be modified. If the customer accepts the quote, they sometimes request that the project be completed in a series of jobs. Each job is handled separately. Jobs are then performed according to an agreed upon schedule until the overall project is complete.

Each landscaping job generally proceeds as follows after the contract for the job is signed. The PGC manager responsible for the quote assigns the trucks and selects the plants for the job.

Then, the manager assigns the job team: the job supervisor, truck drivers, and landscaping laborers, to the job. At that point, the PGC job team performs the job. Customers must pay a 10% deposit when the job begins (that payment is made when they sign the job contract) and the final 90% is due when the job is completed. Customer payments are made by check or credit card and processed for daily deposit by a PGC cashier. After PGC starts the job, the cashier bills the customer for remaining 90% due. Customers either make the final payment or demand rework to bring the job up to the contract requirements. When the job is completed satisfactorily, the customers then pay the amount due. Occasionally, some deadbeat customers withhold further payment for unknown reasons. In that case, PGC either refers the debt to a collection agency or writes off the remainder of the amount due. Of course, PGC does not perform the remainder of the jobs in the project when the customer fails to pay.

Required: Using the description above, prepare a BPMN activity diagram with pools (customer and PGC) and swimlanes that accurately depicts the PGC sales process.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Learning Objective : 05-03 Understand and apply different activity modeling options.

Topic : Applying Activty Modeling Options

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Answer Key Test name: Chapter 05 1) TRUE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) FALSE 10) TRUE 11) FALSE 12) FALSE 13) C 14) D 15) A 16) B 17) D 18) A 19) C 20) B 21) B 22) B 23) B 24) D 25) C 26) C Version 1

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27) A 28) C 29) C 30) B 31) D 32) C 33) B 34) A 35) C 36) D 37) B 38)

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Resources Apartment Complex = apartment complex name (PK), apartment complex address, date constructed, total square footage, count of apartments in this complex, employee# (FK) (agent/manager) Apartments = complex name + apartment# (PK), apartment square footage, count of rooms in apartment, apartment category (FK) Cash = bank account# (PK), bank account balance) Events Rental Contract = rental contract# (PK), actual monthly rent, rental contract date, employee # (FK), complex address + apt # (FK) Cash Receipt = cash receipt# (PK), cash receipt date, bank account# (FK), employee# (FK), tenant ID# (FK), rental contract# (FK) Agents Employee = employee# (PK), employee name, employee monthly salary Tenant = tenant ID# (PK), tenant name, tenant credit rating Type Images Apartment Category = apartment category# (PK), number of bedrooms for apartments in this category, number of bathrooms for apartments in this category, count of available apartments in this category Linking

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Rental Contract–Tenants = rental contract# + tenant# (PK) Apartment Category – Complex = apartment category# + complex name (PK), standard monthly rent) 39)

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Resources Cash = cash account # (PK), cash account balance Plants = plant scientific name (PK), plant common name, quantity on hand, plant category name (FK) Trucks = truck VIN (PK), truck make, truck acquired year, truck mileage to date, truck type (FK) Events Cash receipt = cash receipt # (PK), cash receipt date, cash receipt amount, cash account # (FK) employee # (FK), customer # (FK), landscaping job # (FK) Landscaping job = landscaping job # (PK), start date, price, customer#, landscaping quote # (FK), employee # (supervisor) (FK) Landscaping quote = landscaping quote # (PK), quote date, quote expiration date, quote amount, customer # (FK), employee # (FK) Agents Employee = employee # (PK), employee name, employee hire date Customer = customer # (PK), customer name, YTD sales $ to this customer Type Images

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Employee type = employee type (PK), number of training hours to qualify, number of employees qualified Plant category = plant category name (PK), expected maximum size of plants in this category, light required for plants in this category, average cost of plants in this category Truck type = truck type (PK), truck type use, truck type hauling capacity, average daily cost to use trucks of this type Linking Tables Quote - Plant Categories = landscaping quote # + plant category name (PK), number of plants in this category bid on this quote Quote - Truck Types = landscaping quote # + truck type (PK), number of trucks of this type bid on this quote Job - Trucks = landscaping job # + truck VIN (PK), hours this truck used on this job Job - Plants = landscaping job # + plant scientific name (PK), count of this plant used on this job Truck Drivers = landscaping job # + employee # (PK), hours this truck driver worked on this job Landscape Laborers = landscaping job # + employee # (PK), hours this landscape laborer worked on this job Employee - Employee Types = employee # + employee type (PK), date this employee qualified for this type 40)

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The activity is a slightly more complicated version of the diagrams shown for Sunset in chapter 6. Here is a simple activity diagram with the basic steps.

The use of pools and addition of different paths make the solution more complicated. The solution should look something like this, although a variety of solutions are possible.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Refer to the following UML class diagram to answer questions 1 to 5 below about the relational database based on this model.

The Purchase Orders table would have five foreign keys. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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2) Refer to the following UML class diagram to answer questions 1 to 5 below about the relational database based on this model.

The Cash Disbursements table would have three foreign keys. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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3) Refer to the following UML class diagram to answer questions 1 to 5 below about the relational database based on this model.

The association between Purchase Orders and Products would be implemented with a linking table. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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4) Refer to the following UML class diagram to answer questions 1 to 5 below about the relational database based on this model.

The association between Purchase Orders and Cash Disbursements would be implemented with a linking table. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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5) Refer to the following UML class diagram to answer questions 1 to 5 below about the relational database based on this model.

The Purchase Orders table would contain two foreign keys to implement the associations with Employees. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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6) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

The Purchases table would have four foreign keys. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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7) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

The associate between Purchase Orders and Purchases would be implemented with a linking table. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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8) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

The Purchase Orders table would have the same foreign keys as the Purchases table. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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9) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

Each Purchase Order would be ultimately linked to one cash disbursement. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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10) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

The Cash Disbursements table would have three foreign keys. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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11) Refer to the following UML class diagram to answer questions 11 to 15 below about the relational database based on this model.

The Products table would include a foreign key to link it to Product Categories. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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12) Refer to the following UML class diagram to answer questions 11 to 15 below about the relational database based on this model.

The association between Purchase Orders and Cash Disbursements could be implemented with a foreign key in either table but not both. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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13) Refer to the following UML class diagram to answer questions 11 to 15 below about the relational database based on this model.

The linking table between Supplier Categories and Product Categories would likely contain the attribute summarizing year-to-date purchases for each supplier category and product category combination. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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14) Refer to the following UML class diagram to answer questions 11 to 15 below about the relational database based on this model.

The linking table between Purchase Orders and Products would likely indicate the quantity of each product ordered and the quantity of each product received. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

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15) Refer to the following UML class diagram to answer questions 11 to 15 below about the relational database based on this model.

The linking table between Supplier Categories and Product Categories would likely contain the attribute summarizing year-to-date purchases for each supplier category and product category combination. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

16) Many companies record both purchase orders and purchases; when would such a company recognize in the financial statements the purchase?

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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.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-01 Describe the business activities that comprise the purchase and payment pr Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Purchases and Payments Process

17) 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

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-02 Develop an activity model of the purchase and payment process using BPMN. Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Purchase and Payment Process Using BPMN

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18) In a BPMN collaboration model of the purchase process, which of the following is the appropriate term for the message flows between pools?

A) Orchestration B) Choreography C) Collaboration D) Intermediate events

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-03 Understand and apply different activity modeling options.

Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Applying Activty Modeling Options

19) In a BPMN collaboration model of the purchase process, which of the following best describes the purpose of swimlanes?

A) Capturing the process complexity B) Clarifying the interaction between pools C) Showing the sequence of activities in a pool D) Showing different jobs in the purchase process

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-03 Understand and apply different activity modeling options.

Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Applying Activty Modeling Options

20) In a BPMN activity diagram, which of the following represent a valid use for 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 these choices are correct

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-03 Understand and apply different activity modeling options.

Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Applying Activty Modeling Options

21) Which of the following least reflects the purpose of a business rule in the purchase process?

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A) Ensure suppliers are paid on time B) Require segregation of order, receiving, and payment duties C) Ensure suppliers are satisfied D) Ensure an audit trail

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-04 Develop business rules to implement controls for the purchase and payment Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Implementing Controls for Purchases and Payments with Business Rules

22) Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Purchases and Cash Disbursements classes?

A) Each supplier must be paid for the purchases from that supplier B) Disbursements are made after the purchases are recorded C) One purchase can result in multiple payments to the supplier D) Each check written to the supplier is for one specific purchase

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Gradable : automatic Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams

23) Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Purchases and Products classes?

A) Each purchase order specifies many products B) Each purchase is for one product C) Each purchase can include many products D) Checks are written after products are added to inventory

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Gradable : automatic Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams

24) Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Sunset Partners and Supplier Categories classes?

A) Each partner can be assigned to manage many supplier categories B) Each partner can only purchase products from one supplier category C) Each supplier category is managed by several partners D) Each supplier is linked to one partner

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Gradable : automatic Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams

25) Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Product Categories and Supplier Categories classes?

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A) Each partner can only purchase products from one supplier category and for one product category.

B) Every supplier and product category can be managed by several partners, but no partner manages both.

C) Some partners may manage several product categories, and some partners may manage several supplier categories, but there is no direct link between supplier and product categories.

D) Supplier and product category information can be used to calculate year-to-date sales for each product/supplier category combination.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Gradable : automatic Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams

26) Which of the following activities is not associated with the purchase and payments business process?

A) Recording payments to vendors B) Selling products and services C) Buying products and services D) Receiving goods

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-01 Describe the business activities that comprise the purchase and payment pr Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Purchases and Payments Process Difficulty : 1 Easy

27) The purchase is generally recorded in the financial statements when which of the following activities takes place?

A) Place purchase order.

B) Request prices and availability.

C) Send payment.

D) Receive items.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-02 Develop an activity model of the purchase and payment process using BPMN. Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Purchase and Payment Process Using BPMN Difficulty : 1 Easy

28) A BPMN activity diagram that contains two blank pools would typically be created in order to highlight which of the following?

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A) The orchestration of the business process.

B) The activities in the business process.

C) The choreography of the business process.

D) The decisions made in the business process.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-03 Understand and apply different activity modeling options.

Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Applying Activty Modeling Options Difficulty : 1 Easy

29) When documenting a purchases and payments business process, which of the following BPMN activity diagram symbols should be used to indicate that accounts payable waits until the end of the month to pay vendors?

A) Intermediate timer event.

B) Collapsed subprocess.

C) Delay mode gateway.

D) Pause activity.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-03 Understand and apply different activity modeling options.

Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Applying Activty Modeling Options Difficulty : 1 Easy

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30)

Which of the following is not an application control when placing a purchase order?

A) System provided purchase order number.

B) System provided type image.

C) System provided default values.

D) System provided range and limit checks.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-04 Develop business rules to implement controls for the purchase and payment Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Implementing Controls for Purchases and Payments with Business Rules Difficulty : 1 Easy

31) Which of the following is not a desired access control when developing a purchases and payments business process?

A) The person placing the purchase order must not receive the items.

B) The person returning items to the supplier must not view the original purchase order.

C) The person receiving the order must not see the original purchase order quantities.

D) The person paying the supplier must not be able to modify the purchase order.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-04 Develop business rules to implement controls for the purchase and payment Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Implementing Controls for Purchases and Payments with Business Rules Difficulty : 1 Easy

32) Which of the following is an example of an application control for the purchases and payments business process?

A) Management approval is required for large purchases.

B) The employee who receives supplier goods must not be the same employee who ordered the goods.

C) Defective items should be returned to suppliers promptly.

D) The purchase order number is automatically assigned.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-04 Develop business rules to implement controls for the purchase and payment Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Implementing Controls for Purchases and Payments with Business Rules Difficulty : 1 Easy

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33) In the following diagram, which of the following provides the best interpretation of the multiplicities for the association between the employees and purchases classes?

A) A single purchase can be made by a combination of several employees.

B) An employee can make a maximum of one purchase.

C) Each purchase must be made by one employee.

D) Each product should be received by an employee.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Bloom's : Remember Gradable : automatic Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams Difficulty : 1 Easy

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34) In the following diagram, which of the following provides the best interpretation of the multiplicities for the association between the cash disbursements and employees classes?

A) A cash disbursement must be made by the employee who made the purchase.

B) A cash disbursement can be made by a combination of several employees.

C) An employee can make a maximum of one cash disbursement.

D) Each cash disbursement must be made by one employee.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Bloom's : Remember Gradable : automatic Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams Difficulty : 1 Easy

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35) In the following diagram, which of the following provides the best interpretation of the multiplicities for the association between the employees and product categories classes?

A) Each product category may be managed by several employees.

B) Each employee is only authorized to purchase products from a single category.

C) Each employee may be assigned to manage many product categories.

D) Each product category includes many products.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Bloom's : Remember Gradable : automatic Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams Difficulty : 1 Easy

36)

Which of the following best describes a type image?

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A) A description attached to a UML association when there are multiple associations between classes.

B) A UML class added to collect management information, such as category.

C) A BPMN activity that allows a business process to branch based on type.

D) A description attached to a BPMN gateway that clarifies the nature of the gateway.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams Difficulty : 1 Easy

37)

Which of the following would likely be a foreign key in a purchases table?

A) Purchase_Order_Date.

B) Purchase_Order_Number.

C) Supplier_Number.

D) Product_Description.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces Difficulty : 1 Easy

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38)

Which of the following would likely be a primary key in a purchases table?

A) Purchase_Order_Date.

B) Purchase_Order_Number.

C) Supplier_Number.

D) Product_Description.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces Difficulty : 1 Easy

39) Which of the following two tables would likely result in a many-to-many relationship in a purchases and payments class diagram?

A) Purchase Order and Products.

B) Products to Product Categories.

C) Sunset Partner to Purchases.

D) Suplier to Purchases.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 2 Medium Learning Objective : 06-06 Implement a relational database from the UML class diagram of the purchase Source : Original Bloom's : Apply Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Implementing Relational Databases from a UML Class Diagram of the Purchase and Payment Proces

40)

The following diagram would result in a database with how many tables?

A) 6.

B) 8.

C) 10.

D) 12.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Bloom's : Remember Gradable : automatic Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams Difficulty : 1 Easy

41) Which of the following general ledger accounts would likely not be impacted in a purchases and payments process?

A) Accounts Receivable.

B) Inventory.

C) Purchase Discounts.

D) Cash.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-01 Describe the business activities that comprise the purchase and payment pr Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Purchases and Payments Process Difficulty : 1 Easy

42)

Which of the following is the most likely order of a basic purchases activity model?

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A) Analyze Inventory→Place Purchase Order→Send Payment.

B) Request prices and availability→Receive Items→Record Accounts Payable.

C) Request prices and availability→Place Purchase Order→Receive Items→Send Payment.

D) Create Purchase Order→Create Journal Entry→Receive Items→Send Payment.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-02 Develop an activity model of the purchase and payment process using BPMN. Bloom's : Remember Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Difficulty : 1 Easy Topic : Basic Purchases Activity Model

43) A well controlled purchases and payments process would likely have which of the following roles seperated into swimlanes?

A) Accounts Payable, Receiving & Buyer.

B) Supplier, Receiving & Buyer.

C) Supplier, Accounts Payable & Receiving.

D) Accounts Payable, Receiving & Shipping.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 2 Medium Source : Original Learning Objective : 06-04 Develop business rules to implement controls for the purchase and payment Bloom's : Apply Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Business rules, purchase and payments process controls

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ESSAY. Write your answer in the space provided or on a separate sheet of paper.

44) La Jolla Management Company (LJMC) manages several apartment complexes and earns revenues by renting out the apartments in those complexes. LJMC assigns an agent/manager (employee) to each complex (one manager can manage several complexes) to handle day-to-day operations, such as maintaining the property, advertising, and signing rental contracts. This case describes the purchase of maintenance service process.

Complexes and apartments. LJMC has acquired fifteen and built several more new apartment complexes over the last two years. It identifies complexes by unique name and apartments by the combination of the complex name and apartment#. LJMC categorizes each apartment according to the number of bedrooms and bathrooms, as well as other factors. There are more than 20 apartment categories at present, each identified by unique category #. Since each complex presents a unique set of luxury appointments and amenities, LJMC determines the standard monthly rental fee by considering both the apartment category and complex, for example 2 bedroom 1 bath apartments (category 21) rent for $1850 per month in the El Dorado Arms complex (where there is no view and the complex is close to a freeway) but the same category apartments rent for $2850 per month in the La Jolla Cove complex (where there is a view of the ocean from most apartments in the complex).

Maintenance Jobs. LJMC keeps its apartments and complexes in top condition. The LJMC complex managers monitor the condition of the facilities. Whenever the condition falls below LJMC standards, the managers hire contractors to bring the apartment back up to specification.

LJMC classifies each maintenance job by job type, and the managers match the job type to the contractor type that can best perform the job. The LJMC manager then selects one specific contractor for the job from that contractor type. Each contractor may belong to several contractor types. Each maintenance job involves either one apartment or the common areas of the complex.

LJMC tracks the maintenance performed on apartments and complex common areas. LJMC pays its contractors in full at the end of the month for all jobs that the contractor performed during the month.

Other Information. Agents, resources, and type images may be recorded in the database before they are linked to other classes. LJMC tracks all its employees in one employee class.

Required: 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support La Jolla Management Company’s process using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes).

Attributes

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actual completion date of job actual cost of this job actual monthly rent apartment # apartment category # apartment complex address apartment complex name apartment square footage bank account balance bank account# check # check amount check date contractor # contractor name contractor phone number contractor quality rating

count of rooms in apartment count of this type of contractor date complex was constructed date job ordered employee # employee hire date employee name job type maintenance job # number of available apartments in this category number of bathrooms for apartments in this category number of bedrooms for apartments in this category projected completion date of job standard cost for this job type total complex square footage YTD $ spent on this job type YTD $ spent on this job type in this complex

contractor type

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams Gradable : manual null : Chapter - Chapter 06

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45) Pacific Green Company (PGC) provides landscaping services to individual and corporate customers in southern California. Heather F originally founded PGC as a lawn mowing service while she attended graduate school. It became so successful that she delayed her teaching career to concentrate on building the company. This case describes PGC’s processes for leasing trucks, maintaining trucks, and purchasing plants.

Inventories. PGC maintains an inventory of trucks of all sizes to support various landscaping requirements (the acquisition of trucks are outside the scope of this case). PGC tracks the trucks by vehicle identification numbers (VINs) and keeps meticulous records on each truck. For example, they track the mileage for each truck on each landscaping job. Additionally, they track the maintenance history for each truck. Each type of truck has a different use and hauling capacity, but each truck in a particular truck type has the same use and hauling capacity.

PGC also maintains an extensive inventory of plants, ranging from colorful flowers to large trees, so they can address almost any landscaping requirement on short notice. Since the common name of many plants vary by region, PGC tracks its plant inventory by scientific names (i.e., the Latin names). To manage the plant inventory and ensure that the best plants are applied to job conditions, Heather categorizes all plants by plant type.

Truck Leases. PGC leases all its trucks from local dealers. PGC purchasing agents negotiate the leases. Each lease involves only one truck due to the state registration requirements. The dealers require a down payment at the time a lease is signed, and then PGC makes payments monthly over the life of the lease. Although PGC usually turns in the trucks at the end of the lease, occasionally, PGC will sign a new lease for an existing truck when that truck provides unusual capability or has relatively low mileage.

Truck Maintenance. PGC contracts for truck maintenance with local truck repair shops. A purchasing agent will negotiate a truck maintenance contract for each type of truck with a truck repair shop that specializes in those types of trucks. Then, PGC takes its trucks to the contracted shops when maintenance is required. A PGC purchasing agent approves each maintenance invoice after carefully checking it against the contract terms and assigns a purchase number to track the purchase of maintenance. A PGC cashier pays the truck maintenance vendors monthly for all the maintenance invoices received during the month.

Plant purchases. PGC buys its plants in bulk to keep its plant inventory well stocked. Because PGC has an excellent relationship with its plant vendors, it places informal orders by phone.

When the plants are delivered and accepted, PGC assigns a purchase number to each receipt.

PGC cashiers pay for plant purchases within 30 days of the delivery. PGC cashiers occasionally combine payments if there are multiple deliveries from the same vendor within a short period of time.

Employees. PGC keeps all employee information together (your model should show one Employee class). They track each employee’s qualifications according to category: purchasing agent, cashier, landscaping laborer, truck driver, supervisor, etc. An employee is considered qualified when he or she reaches the number of training hours required for that category.

However, each employee can hold qualifications for several categories, for example an employee

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qualified as a purchasing agent could also be qualified as a truck driver.

Vendors. PGC keeps all vendor information together (your model should show one Vendor class). However, they classify the vendors by type: truck dealer, truck repair shop, plant vendor, etc.

Miscellaneous. You may assume that all agent, resource, and type image information is entered into the database before any process activity takes place.

Required: 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support PGC’s processes using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes).

Average price of plants in this category Average daily charge to use a truck of this type Check # Check amount Check date

Cash account # Cash account balance

Truck VIN Truck maintenance contract # Truck maintenance contract start date Date this employee qualified for this Truck maintenance contract end employee type date Employee # Truck maintenance purchase # Employee hire date Truck maintenance vendor's invoice # Employee name Truck maintenance date Employee Type Truck maintenance amount Expected maximum size of plants in Truck lease # this category Light required for plants in this Truck lease start date category Number of employees qualified for Truck lease end date this employee type Number of training hours to qualify Truck lease down payment for this employee type amount Plant category name Truck lease monthly payment amount Plant common name Plant purchase # Plant scientific name Plant purchase date

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Quantity on hand of this plant Truck acquired year Truck make Truck mileage to date Truck type Truck type hauling capacity Truck type use

Quantity of this plant received on this purchase Price of this plant received on this purchase Vendor type Vendor type description Count of vendors of this type Vendor # Vendor name Vendor account payable amount

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams Gradable : manual null : Chapter - Chapter 06

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46) Pacific Green Company (PGC) provides landscaping services to individual and corporate customers in southern California. Heather F originally founded PGC as a lawn mowing service while she attended graduate school. It became so successful that she delayed her teaching career to concentrate on building the company. This case describes PGC’s processes for maintaining trucks.

PGC contracts for truck maintenance with local truck repair shops. A purchasing agent will negotiate a truck maintenance contract for each type of truck with a truck repair shop that specializes in those types of trucks. If the purchasing agent cannot negotiate satisfactory contract terms, the contracting process terminates. The process then starts over until contracts are in place.

When trucks are due for maintenance or repair, a PGC truck driver takes its trucks to the contracted shops. A PGC purchasing agent approves each maintenance invoice after carefully checking it against the contract terms and to confirm that the required maintenance or repairs are made. If the maintenance complies and the repairs were satisfactorily performed, PGC assigns a purchase number to track the purchase of maintenance. A PGC cashier then pays the truck maintenance vendors. If the invoice does not comply with the terms of the contract, the PGC purchasing agent returns the invoice for correction. If the repairs are not satisfactory, the purchasing agent takes the truck back so the shop can perform the repairs or maintenance satisfactorily.

Required: Using the description above, correct the following BPMN activity diagram to accurately depict the PGC truck contracting and maintenance process.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Gradable : manual null : Chapter - Chapter 06 Learning Objective : 06-02 Develop an activity model of the purchase and payment process using BPMN. Topic : Purchase and Payment Process Using BPMN

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47) Integrated Case combining both sales and purchases processes.

Background: When Arnold retired from politics after the state budget crises of 2008, 2009, and 2010 he found that the downturn in the overall economy had affected his retirement plans.

Plus, he needs money for his divorce from Maria while his new movies are still in production.

So, he decided to open a unique health spa that will cater to movie stars and other wealthy clients. Taking advantage of the historically low mortgage rates, he acquired an impressive estate in Rancho Palos Verdes overlooking the Pacific Ocean and converted it into an expensive spa.

After some extensive market research and a number of personal visits to other spas (it was a tough job but someone had to do it), he opened Arnold’s California Spa offering a variety of activities (such as golf, Pilates, yoga, massage, mud baths, aerobics, weight lifting, dodge ball, etc.) so clients have the option of either 1) getting physically fit with the latest in exercise technology or 2) just relaxing in luxury. His spa quickly became extremely successful and he plans to expand to other cities. Arnold realizes that his business needs an accounting system, and he has asked you to analyze his requirements and help him design a system that can grow along with his business.

Arnold’s business requirements: During your interview with Arnold, he describes his business requirements for his purchasing and sales processes as follows: Spa Packages. We offer our clients a selection of spa packages that changes according to the time of year and customer demand. For example, we might offer the Spring Getaway Package, the Relaxing Escape from the Economy Package, the Pure Indulgence Package, the Sports Package, and the Steroid-Free Bodybuilding Package. Each package includes several activities, such as weight lifting, aerobics, Pilates, mountain biking, yoga, tennis, golf, various skin care therapies, hydrotherapies, body therapies, and massage.

The price of each spa package depends on the specific activities included in the package. For example, the Steroid-Free Bodybuilding Package includes weight lifting, yoga, dodge ball, and scientifically designed ice baths to restore the muscles. Each activity could appear multiple times in each spa package, for example we could include two rounds of golf in one package. Of course, each activity is included in multiple spa packages.

We set the price of each spa package by first determining what we want to charge for each of the activities depending on the time of year, the products used in the activity, and expected popularity. We then add up the charges for each activity to form the overall price for the spa package; however, the clients only see one single price for the whole package. To monitor profitability, we track year-to-date sales information for each activity included in any spa package.

Sales process (spa visits): Arnold’s California Spa emphasizes customer service, of course.

Each client makes reservations in advance, and one reservation could schedule several future spa visits (each individual spa visit involves only one spa package, but the client could select a different spa package for each visit). When the client arrives for a spa visit, we assign one of our employees to be responsible for the client and direct all the client’s activities for that visit. This responsibility only applies to the specific visit. Other employees will also be involved in the spa

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visit depending upon the activities included in the specific spa package that the client selected.

For example, the visit director may conduct a golf lesson for the client while an assisting employee may provide a therapeutic massage for the client’s guest (to maintain appropriate discretion, we don’t track clients’ guests). We expect our employees to provide the highest quality customer service and we plan to hold them accountable. Since all of our employees will be able to be visit directors, we want to track who directs and who assists with each specific visit as well as the number of hours they spend with the client.

Since most clients love their experience and want to return, we offer them an opportunity to become members of Arnold’s Entourage. Entourage members earn membership rewards based on the number of visits and the amounts spent. Entourage members also get priority reservations and can pay for visits over time with regular monthly payments, where the number of payments depends on their membership group: bronze, silver, or gold. Since an Entourage member could visit several times while also making payments for prior visits, each client payment could apply to several spa visits. Clients that are not Entourage members must pay for each spa visit in full at the time of the visit. To plan for future marketing, we track year-to-date spending for each combination of Entourage Group and activity, so we can see which activities appeal to which membership group.

Product Inventory and purchasing. We maintain an inventory of products—such as sports gear, towels, robes, shampoos, golf balls, body-wrap material, seaweed, massage oils, bodybuilding supplements, raw fruit juices, and vitamins— that we use in the spa visits. We record the quantity and cost of each product used in a spa visit as well as the total costs for each visit to determine profitability. For planning, we also track which products are used in each activity, although many products are used in multiple activities. We estimate the quantity and cost of each product used in each activity, which then allows us to estimate the overall cost of each activity, so we can decide what to charge for the activity when it is offered in any spa package.

We buy our products from a number of vendors. We’ve already worked out agreements for them to deliver products on a regular basis. We record purchases by purchase number when they deliver the products. All our vendors require payment in full within 30 days after we receive the products, but depending on timing, we may issue one check to pay for multiple purchases from a vendor.

Other information. We record information about activities before they are offered in any spa package, and we add new spa packages before any client purchases them. We have a payroll service that handles all our payroll needs, so you don’t need to consider payroll in your analysis.

We assign each employee an employee number and a job title, like “master masseuse”, “yoga instructor supervisor”, “hair styling specialist” and “the guy who will pump you up.” However, every employee can perform several different jobs at the spa, so we keep all the employee information in one set of records. We only use the title to impress our clients and not for any real business purpose (we don’t categorize employees by employee types). We record information about all agents, resources, and type images before they are linked to other classes.

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Required: 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support Arnold’s California Spa processes using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes).

Attributes Activity description Activity name Amount of this cash receipt applied to this spa visit Cash account # Cash account balance Cash receipt # Cash receipt amount Cash receipt date Check # Check amount

Client # Client contact hours for this employee in this spa visit Client name Cost of this product received on this purchase Cost of this product used in this spa visit Employee # Employee name Employee title Entourage Group Months to pay for members in this Entourage level

Check date Number of times this client enjoyed this activity Planned cost of this activity Price of this activity in this spa package Product # Product description Product standard cost Purchase # Purchase date

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Quantity of this product planned for use in this activity Quantity of this product received on this purchase Quantity of this product used in this spa visit Quantity on hand (QOH) of this product Spa package begin offering date Spa package end offering date Spa package name Spa package price Spa reservation # Spa reservation date Spa visit # Spa visit date Total labor hours for this spa visit Vendor # Vendor name Year-to-date (YTD) purchases of this product from this vendor Year-to-date (YTD) sales $ for this activity Year-to-date (YTD) sales $ for this client Year-to-date (YTD) sales $ for all clients in this Entourage level Year-to-date (YTD) sales $ for this activity and Entourage Group

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams Gradable : manual null : Chapter - Chapter 06

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48)

Integrated case involving sales and purchases processes.

Required: Using the narrative and the attributes below, prepare: 1) a UML class diagram (with classes, associations, and multiplicities) and 2) a list of corresponding relational tables (list the tables with all their attributes, identify the primary keys [with PK or underline], and indicate the foreign keys [with an asterisk or FK]). The table definitions should only use the attributes listed at the end of this case (remember that there should be no entities without attributes). You may abbreviate attribute names if the abbreviation is clear. List the tables in the following order: Resources, Events, Agents, Types, and Linking tables. Apply the standard REA patterns wherever the narrative does not clearly specify otherwise but avoid adding extra relationships that are not discussed. If you believe the narrative is not clear, you may make assumptions as necessary to clarify. However, you must write down any assumptions that you make on your diagram/tables for them to be considered.

Background Titanic Tours was formed almost 10 years ago to foster interest in environmental issues while delivering luxury experiences to its customers. They conduct a variety of oceangoing yachtbased tours to explore current issues related to ocean pollution, climate change, and sustainable use of ocean resources. This case describes their processes for conducting tours (sales) and purchasing provisions for those tours (purchasing).

Watercraft Inventory Titanic has assembled an extensive inventory of the finest watercraft, from express yachts to mega-yachts as well as various smaller boats, such as personal watercraft (wave runners and jet skis) and support boats (zodiacs, dinghies, and other small boats). Each of their yachts is set up to be a floating classroom, so they can entertain and educate their guests. They track each yacht, boat, etc., by watercraft number. They carefully plan the daily cost of operation for each boat, so they can plan how much to charge for each tour package. Each watercraft could be planned for use in many tour packages. Of course, the costs include all maintenance and safety features necessary to receive Coast Guard certifications. They then carefully track the number of hours/days that each watercraft is used in each tour, so they can continually update their plans.

Provisions Inventory Provisions include anything that Titanic needs to support its tours, such as food, beverages, gear, etc. They pride themselves on their luxury experience, so the quality of provisions is critical. They track provisions by provision number. In many cases, Titanic doesn’t purchase the provisions until right before a tour departs. However, they need to plan the costs carefully, so they estimate the cost of each provision and the quantity of that provision needed for any tour package. Of course, each provision could be planned for use in many tour packages. They then carefully track the quantity and cost of each provision used on each tour, so they can continually update their plans.

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Tours Titanic sells tours, so they offer customers a list of available tour packages. Each tour package is offered at one all-inclusive price for one or more watercraft, necessary crew, and appropriate provisions. Titanic changes its list of tour packages depending on the time of year and customer interest. Tour packages are tracked by tour package number.

Customers call Titanic to reserve one or more tour packages. A Titanic employee takes the reservation and confirms available dates. Titanic requires that the customer provides a credit card number at the time of the reservation but they do not charge the credit card at that time. Titanic tracks reservations by tour reservation number.

Titanic records revenue when the customer takes the tour. Titanic tracks each tour by tour number. If the customer brings guests, Titanic adds each guest to its customer list so it can account for every passenger on each tour (and market future tours to those customers). Titanic charges the customer after the tour (or tours if the customer planned multiple tours). It either charges the credit card that the customer provided or accepts other form of payment. One payment could apply to multiple tours if the customer reserved multiple packages and those tours were taken within the month. In most cases, customers make one payment for one tour (to include payment for all their guests).

Titanic assigns one employee as the captain and other employees as crew for each tour. Since employees receive compensation based on the time worked and job performed on the tour, Titanic carefully tracks the number of hours each employee works on each tour. All Titanic employees are highly trained and can perform many different assignments. Employees can also earn a special bonus for the number of tours they work during any month.

Purchasing Provisions Titanic has good relationships with its vendors. When it needs provisions, a Titanic employee calls the vendor to place the order. Titanic doesn’t track purchase orders, since all vendors deliver the same day. Titanic tracks each delivery by purchase number. A Titanic employee receives the provisions, checks them for quality, and puts them in inventory. Provision inventory is updated to reflect the latest cost for all accepted items. Titanic pays its vendors by check at the end of the month. One check can pay for several purchases from that vendor during the month.

General Titanic assigns each employee an employee number. It tracks all employees in one class and does not categorize employees, since all employees can perform multiple assignments. Titanic also records information about all agents, resources, and type images before those classes are linked to other entities or engage in processes.

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Attributes Cash account balance Cash account# Cash receipt amount Cash receipt date Cash receipt# Check amount Check date Check# Customer name Customer# Employee background check completion date Employee hire date Employee name Employee# Individual accounts payable to this vendor Number of customers on this tour Number of hours this employee worked on this tour Number of tours this employee worked this month Number of hours this watercraft used in this tour Vendor name Vendor# Watercraft daily billing charge

Provision description Provision expected cost Provision quantity on hand (QOH) Provision# Purchase date Purchase total amount $ Purchase# Quantity of this provision planned for this tour package Quantity of this provision used on this tour Tour date Tour package available date Tour package description Tour package duration in days Tour package price Tour package# Tour reservation credit card# Tour reservation date Tour reservation# Tour total cost for provisions Tour total cost for watercraft use Tour#

Watercraft description Watercraft#

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 06-05 Develop structure models for the purchase and payment process using UML cl Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Purchase and Payment Structure Models using UML Diagrams Gradable : manual null : Chapter - Chapter 06

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Answer Key Test name: Chapter 06 1) FALSE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) FALSE 9) FALSE 10) TRUE 11) TRUE 12) TRUE 13) TRUE 14) TRUE 15) TRUE 16) C 17) A 18) B 19) D 20) D 21) C 22) B 23) C 24) A 25) C 26) B Version 1

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27) D 28) C 29) A 30) B 31) B 32) D 33) C 34) D 35) C 36) B 37) C 38) B 39) A 40) C 41) A 42) C 43) A

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44) Resources: Apartment Complex = apartment complex name (PK), address, date constructed, total square footage, employee # (manager) Apartments = complex name + apartment # (PK), apartment square footage, count of rooms in apartment, apartment category (FK) Cash = bank account # (PK), bank account balance Events: Maintenance Job = maintenance job # (PK), projected completion date of job, actual completion date of job, actual cost of this job, job type (FK), employee # (FK), contractor # (FK), complex name (FK), apartment # (FK), check # (FK) Cash disbursement = check # (PK), check date, check amount, bank account # (FK), employee # (FK), contractor # (FK) Agents: Contractor = contractor # (PK), contractor name, contractor quality rating, phone Employee = employee # (PK), employee name, employee hire date Type Images: Job Type = job type (PK), standard cost for this job type, YTD $ spent on this job type Contractor Type = contractor type (PK), count of this type of contractor Apartment Category = apartment category# (PK), number of bedrooms for apartments in this category, number of bathrooms for apartments in this category, count of available apartments in this category Linking Tables: Job Type − Contractor Type = job type + contractor type (PK) Contractor Type − Contractor = contractor type + contractor # (PK) Apartment Category − Complex = apartment category # + apartment complex name (PK) Job Type − Complex = apartment complex name + job type (PK), YTD $ spent on this job type in this complex

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45) Resources: Cash = cash account # (PK), cash account balance Trucks = truck VIN (PK), truck make, truck acquired year, truck mileage to date, truck type (FK) Plants = plant scientific name (PK), plant common name, quantity on hand, plant category name (FK) Events: Truck maintenance contracts = truck maintenance contract # (PK), truck maintenance contract start date, truck maintenance contract end date, vendor # (FK), employee # (FK), truck type (FK) Truck maintenance = truck maintenance purchase # (PK), truck maintenance vendor's invoice #, , maintenance date, maintenance amount, vendor # (FK), employee # (FK), truck VIN (FK), check # (FK) Truck leases = truck lease # (PK), truck lease start date, truck lease end date, truck lease down payment amount, truck lease monthly payment amount, vendor # (FK), employee # (FK), truck VIN (FK) Plant purchases = plant purchase # (PK), plant purchase date, check # (FK), employee # (FK), vendor # (FK) Cash disbursements = check # (PK), check date, check amount, cash account # (FK), employee # (FK), vendor # (FK), truck lease # (FK) Agents: Employee = employee # (PK), employee name, employee hire date Vendor = vendor # (PK), vendor name, vendor account payable amount Version 1

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Type Images: Plant category = plant category name (PK), expected maximum size of plants in this category, light required for plants in this category, average cost of plants in this category Truck type = truck type (PK), truck type use, truck type hauling capacity, average daily cost to use trucks of this type Employee type = employee type (PK), number of training hours to qualify, number of employees qualified Vendor type = vendor type (PK), vendor type description, count of vendors of this type Linking tables: Plant purchases - plants = plant purchase # + plant scientific name (PK), quantity received, price Employee - employee type = employee # + employee type (PK), date this employee qualified for this type

46)

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47) Resources: Products = Product # (PK), Product description, standard cost, quantity on hand Cash = Cash account # (PK), Cash account balance Events: Purchase = Purchase # (PK), Purchase date, Employee # (FK), Vendor# (FK), Check# (FK) Cash Receipt = Cash receipt # (PK), Cash receipt amount, Cash receipt date, Cash account# (FK), Employee # (FK), Client # (FK) Cash Disbursement = Check # (PK), Check amount, Check date, Employee # (FK), Vendor # (FK), Cash account # (FK) Spa Visit = Spa visit # (PK), Spa visit date, Total labor hours for this spa visit, client contact hours for this employee in this spa visit, Employee # (director) (FK), Client # (FK), Spa Package Name (FK), Spa Reservation# Spa Reservation = Spa Reservation # (PK), Spa Reservation Date, Client# (FK), Employee# (FK) Agents: Clients = Client # (PK), Client name, Year-to-Date (YTD) Sales $ For This Client, Entourage Group (FK) Employees = Employee # (PK), Employee name, Employee title Version 1

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Vendor = Vendor # (PK), Vendor name Type Images: Activities = Activity name (PK), Activity description, Planned cost of this activity, Year-todate (YTD) sales $ for this activity Spa package = Spa package name (PK), Spa package begin offering date, Spa package end offering date, Spa package price Entourage Group = Entourage Group (PK), Months to pay for members in this Entourage level, YTD Sales $ for clients in this Entourage Group Linking Tables: Spa Package − Activities = Spa Package Name + Activity Name (PK), Price of this activity in this spa package Product − Vendor = Product # + Vendor # (PK), YTD purchases for this product with this vendor Spa Visit − Employee = Spa Visit # + Employee # (PK), client contact hours for this employee in this spa visit Product − Spa Visit = Product # + Spa Visit # (PK), Cost of this product used in this spa visit, Quantity of this product used in this spa visit Purchase − Product = Purchase #, Product #, Quantity of this product received on this purchase, Cost of this product received on this purchase Product − Activity = Product # + Activity Name (PK), Quantity of this product planned for use in this activity Entourage Group − Activity = Entourage Group+ Activity Name (PK), YTD Sales $ for this Entourage Group and activity Spa Reservation − Spa Package = Spa Reservation# + Spa Package Name (PK) Spa Visit − Cash Receipt = Visit# + Cash Receipt # (PK), Amount of this cash receipt applied to this spa visit

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48) Resources: Cash = Cash account# (PK), cash account balance Watercraft = Watercraft# (PK), Watercraft daily billing charge, Watercraft description Provisions = Provision# (PK), Provision description, Provision expected cost, Provision quantity on hand (QOH) Events: Purchases = Purchase# (PK), Vendor# (FK), Employee# (FK), Check# (FK), Purchase date, Purchase total amount $ Cash disbursements = Check# (PK), Vendor# (FK), Employee# (FK), Cash account# (FK), Check amount, Check date Cash receipts = Cash Receipt# (PK), Employee# (FK), Customer# (FK), Cash account# (FK), Cash receipt amount, Cash receipt date Tours = Tour# (PK), Tour package# (FK), Employee# (FK) Tour reservation# (FK), Cash Receipt# (FK), Tour date, Number of hours this employee worked on this tour (captain), Number of customers on this tour, Tour total cost for provisions, Tour total cost for watercraft use Tour reservations = Tour reservation# (PK), Employee# (FK), Customer# (FK), Tour reservation credit card#, Tour reservation date Agents: Vendors = Vendor# (PK), Vendor name, Individual accounts payable to this vendor Employees = Employee# (PK), Employee background check completion date, Employee hire date, Employee name, Number of tours this employee worked this month Customers = Customer# (PK), Customer name Type Images: Tour packages = Tour Package# (PK), Tour package available date, Tour package description, Tour package duration in days, Tour package price Linking tables: Tour Package − Provisions = Tour Package# + Provision# (PK), Quantity of this provision planned for this tour package Tour Package − Watercraft = Tour Package# + Watercraft# (PK) Tours − Provisions = Tour# + Provision# (PK), Quantity of this provision used on this tour Tours − Watercraft = Tour# + Watercraft# (PK), Number of hours this watercraft used in this tour Crew = Tour# + Employee# (PK), Number of hours this employee worked on this tour Tours − Customers = Tour# + Customer# (PK) Purchase − Provisions = Purchase# + Provisions# (PK) Tour Reservations − Tour Packages = Tour reservation# + Tour package# (PK)

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Conversion labor costs become part of cost of goods sold. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Describe the business activities that comprise the conversion process.

Source : Original Accessibility : Screen Reader Compatible Gradable : automatic Topic : Conversion Process Accessibility : Keyboard Navigation

2)

Gateways can direct sequence flow to support looping. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-02 Develop an activity model of the conversion process using BPMN. Accessibility : Screen Reader Compatible Topic : Conversion Process Using BPMN Gradable : automatic Accessibility : Keyboard Navigation

3)

Business rules describe appropriate actions to take based on process conditions. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-04 Develop business rules to implement controls for the conversion process.

Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for the Conversion Process with Business Rules

4)

Application controlscan limit access to viewing and changing records in a system. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-04 Develop business rules to implement controls for the conversion process.

Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for the Conversion Process with Business Rules

5)

A labor plan class would establish standard overhead allocation rates. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

6) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

The primary key of the Production Authorization table would be posted in the Production Steps table as a foreign key. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Implementing Relational Databases from a UML Class Diagram of the Conversion Process Gradable : automatic Accessibility : Keyboard Navigation Learning Objective : 07-06 Implement a relational database from the UML class diagram of the conversi

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7) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

The primary key of the Employees table would be posted in the Production Steps table as a foreign key. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Implementing Relational Databases from a UML Class Diagram of the Conversion Process Gradable : automatic Accessibility : Keyboard Navigation Learning Objective : 07-06 Implement a relational database from the UML class diagram of the conversi

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8) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

The primary key of the Production Steps table would be posted in the Production Plan table as a foreign key. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Implementing Relational Databases from a UML Class Diagram of the Conversion Process Gradable : automatic Accessibility : Keyboard Navigation Learning Objective : 07-06 Implement a relational database from the UML class diagram of the conversi

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9) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

The link between the Products and Production Plan tables would be implemented as a linking table. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Implementing Relational Databases from a UML Class Diagram of the Conversion Process Gradable : automatic Accessibility : Keyboard Navigation Learning Objective : 07-06 Implement a relational database from the UML class diagram of the conversi

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10) Refer to the following UML class diagram to answer questions 6 to 10 below about the relational database based on this model.

The link between the Production Plan and Materials tables would be implemented as a linking table. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Implementing Relational Databases from a UML Class Diagram of the Conversion Process Gradable : automatic Accessibility : Keyboard Navigation Learning Objective : 07-06 Implement a relational database from the UML class diagram of the conversi

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

11) Which of the following types of business is least likely to employ a conversion process?

A) Restaurant B) Retail store C) Bakery D) Machine shop

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 07-01 Describe the business activities that comprise the conversion process.

Source : Original Bloom's : Understand Difficulty : 2 Medium Accessibility : Screen Reader Compatible Gradable : automatic Topic : Conversion Process Accessibility : Keyboard Navigation

12)

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

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 07-01 Describe the business activities that comprise the conversion process.

Source : Original Bloom's : Understand Difficulty : 2 Medium Accessibility : Screen Reader Compatible Gradable : automatic Topic : Conversion Process Accessibility : Keyboard Navigation

13)

Which of the following best describes the purpose of an intermediate error event?

A) Interupts the normal flow of the process B) Alerts users to control risks C) Waits for external messages D) Directs a sequence to repeat

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-02 Develop an activity model of the conversion process using BPMN. Accessibility : Screen Reader Compatible Topic : Conversion Process Using BPMN Gradable : automatic Accessibility : Keyboard Navigation

14) 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.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Understand and apply different activity modeling options.

Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation

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15) Which of the following is the best reason that a collaboration model would not be used to diagram the conversion process?

A) All conversion activities are internal to the organization.

B) A collaboration model does not include swimlanes.

C) The orchestration of the activities is not shown in a collaboration model.

D) The choreography between pools is not shown in a collaboration model.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Understand and apply different activity modeling options.

Accessibility : Screen Reader Compatible Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation

16) Which of the following least reflects the purpose of a business rule in the conversion process?

A) Segregating authorizing, issuing, and conversion work duties.

B) Limiting who can view and change records in the system.

C) Return defective items to suppliers promptly.

D) Assuring that all products meet quality standards.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-04 Develop business rules to implement controls for the conversion process.

Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for the Conversion Process with Business Rules

17) In a basic UML diagram of the conversion process, which of the following best describes the purpose of a duality association?

A) Shows the participation of employees in the process.

B) Links work in process events to the original production authorization.

C) Indicates issue of raw material into the process.

D) Tracks completion of work in process and increase to finished goods inventory.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

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18) Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Employees and Production Authorization classes?

A) The employee records the completion of a job and updates finished goods.

B) Each production authorization results in the increase to the quantity on hand of one product.

C) Employees manage multiple products.

D) One employee can authorize production multiple times.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

19) Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Products and Production Authorization classes?

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A) The employee records the completion of a job and updates finished goods.

B) Each production authorization is related to one product.

C) Each product is related to one production authorization.

D) One employee can authorize production multiple times.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

20)

Which of the following best describes the purpose of a bill of material class?

A) Links each raw material item to one or more finished good items.

B) Shows the issues of raw material items into work in process.

C) Links finished goods to production.

D) Shows the raw material usage variance.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

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21) Which of the following not one of the reasons that the conversion process is typically considered more complicated than the sales and collections and the purchases and payments processes?

A) The conversion process has greater record-keeping requirements.

B) Many companies do not have a conversion process.

C) The sophistication of the conversion process may vary greatly among different companies.

D) All three of the other answers are reasons that the conversion process is more complicated.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Describe the business activities that comprise the conversion process.

Source : Original Accessibility : Screen Reader Compatible Gradable : automatic Topic : Conversion Process Accessibility : Keyboard Navigation

22) In the conversion process, indirect labor is first recorded to which of the following accounts?

A) Finished Goods.

B) Raw Material Inventory.

C) Work-in-Process Inventory.

D) Manufacturing Overhead.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Describe the business activities that comprise the conversion process.

Source : Original Accessibility : Screen Reader Compatible Gradable : automatic Topic : Conversion Process Accessibility : Keyboard Navigation

23) Review the following BPMN activity diagram. In this conversion process, the quantities of raw materials to be released is calculated based on which information?

A) Work-in-Process.

B) The Bills of Materials.

C) The quantities of raw materials purchased.

D) Economic order quantities.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-02 Develop an activity model of the conversion process using BPMN. Topic : Conversion Process Using BPMN Gradable : automatic Accessibility : Keyboard Navigation

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24)

<p>Review the conversion process BPMN activity diagram presented below. In the

diagram, the symbol

indicates which of the following?

A) Gateway.

B) Activity loop.

C) Exception event.

D) Collapsed subprocess.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-03 Understand and apply different activity modeling options.

Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation

25)

In a BPMN activity diagram, what does the following symbol represent?

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A) A looping collapsed subprocess.

B) An exception event.

C) A connection made to another swimlane in the process.

D) An expanded subprocess.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-03 Understand and apply different activity modeling options.

Topic : Applying Activty Modeling Options Gradable : automatic Accessibility : Keyboard Navigation

26)

Which of the following is the primary overall objective of the conversion process?

A) Issue raw materials efficiently.

B) Ensure that enough finished products are available to meet anticipated demand.

C) Make finished products to order.

D) Transfer finished goods to warehouse inventory accurately.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-04 Develop business rules to implement controls for the conversion process.

Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for the Conversion Process with Business Rules

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27) Which of the following business rules illustrates a proper implementation of internal control?

A) The employee that orders manterials can’t also inspect the work.

B) The employee that performs part of the conversion work can’t also perform other work in the conversion process.

C) The employee that authorizes production can’t be the same employee that issues raw materials.

D) The person that receives the finished items can’t also place them into their assigned warehouse location.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-04 Develop business rules to implement controls for the conversion process.

Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Implementing Controls for the Conversion Process with Business Rules

28) When creating a UML class diagram to support the conversion process, which of the following approaches provides a way to meet both accounting and general management information requirements?

A) The COSO framework.

B) BPMN guidelines.

C) A star schema.

D) The REA framework.

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

29) Using a generic conversion UML class diagram as a starting point, which of the following best describes how to find work-in-process inventory?

A) It is displayed in the UML class diagram as a Resource class.

B) It is calculated based on accumulated materials issued, labor and overhead.

C) It is displayed in the UML class diagram as a Type Image class.

D) It is not displayed in the UML class diagram, but will become a table in the relational database as a result of a many-to-many association in the UML class diagram.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

30) The duality associations between the events in the generic conversion UML class diagram illustrate which of the following?

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A) The participation of both supervisors and employees in the conversion process.

B) The looping approach required for conversion processes that include multiple batches.

C) The capture of actual material and labor costs for comparison with the original plan.

D) The need for multiple raw materials to be included in the conversion process.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Accessibility : Screen Reader Compatible Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

31) Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Materials and the Materials Issue classes?

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A) A Material Issue must include at least one material, but may include many materials.

B) When a material is issued, it is transferred into the Material Issue class.

C) Each material is included in at least one material issue, but may be included in many material issues.

D) A material issue might not include a material.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

32) Review the following diagram. Which answer provides the best interpretation Bill of Materials class and its associations?

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A) A material might not be included in any Bills of Materials.

B) The Bill of Materials determines which product should be produced.

C) Bills of Materials act as a type image class that specifies the details of the implied association between products and materials.

D) A Bill of Materials may be associated with many different products.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

33) Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Employees and the Labor Operations classes?

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A) Each employee that creates a Material Issue must record at least one Labor Operation.

B) At least one production worker and one supervisor must perform labor operations for each production run.

C) The association between Labor Operations and Employees will be implemented in the database with a Type Image class.

D) An employee may not perform any labor operations.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Gradable : automatic Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams

34)

Which of the following is the most likely foreign key for the Bill of Materials table?

A) Prod_auth_ID B) Product_ID C) Issue_Sequence D) Material_description

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Screen Reader Compatible Topic : Implementing Relational Databases from a UML Class Diagram of the Conversion Process Gradable : automatic Accessibility : Keyboard Navigation Learning Objective : 07-06 Implement a relational database from the UML class diagram of the conversi

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35) Which of the following is the recommended data type for the Product_number field in the conversion database?

A) Integer B) Memo C) Text D) Double

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Screen Reader Compatible Topic : Implementing Relational Databases from a UML Class Diagram of the Conversion Process Gradable : automatic Accessibility : Keyboard Navigation Learning Objective : 07-06 Implement a relational database from the UML class diagram of the conversi

36)

Which of the following is the most likely primary key for the Materials table?

A) Product_ID B) Materials_number C) Materials_issue_number D) Product_category_number

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Bloom's : Apply Accessibility : Screen Reader Compatible Topic : Implementing Relational Databases from a UML Class Diagram of the Conversion Process Accessibility : Keyboard Navigation Learning Objective : 07-06 Implement a relational database from the UML class diagram of the conversi

37) Which of the following is the most likely foreign key for the Production_Authorizations table?

A) Special_handling B) Product_Number C) Product_unit_of_sale D) Materials_issue_number

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Bloom's : Apply Accessibility : Screen Reader Compatible Topic : Implementing Relational Databases from a UML Class Diagram of the Conversion Process Accessibility : Keyboard Navigation Learning Objective : 07-06 Implement a relational database from the UML class diagram of the conversi

38) Which of the following general ledger accounts would likely not be impacted in a conversion process?

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A) Sales Revenue.

B) Inventory.

C) Cost of Goods Sold.

D) Work-in-Process.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Describe the business activities that comprise the conversion process.

Source : Original Accessibility : Screen Reader Compatible Topic : Conversion Process Accessibility : Keyboard Navigation

39)

Which of the following is the most likely order of a basic conversion activity model?

A) Authorize Production→Issue Raw Materials→Perform Work→Complete Prodcution.

B) Customer Order→Perform Work→Review Work→Ship Product.

C) Authorize Production→Order Materials→Apply Overhead→Complete Production.

D) Customer Order→Issue Raw Materials→Apply Overhead→Ship Product.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 07-02 Develop an activity model of the conversion process using BPMN. Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Basic Conversion Activity Model

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40) A well controlled conversion process would likely have which of the following roles seperated into swimlanes?

A) Accounts Payable Manager and Receiving Employee.

B) Inventory Manager and Receiving Manager.

C) Inventory Manager and Conversion Employee.

D) Conversion Employee and Overhead Employee.

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Difficulty : 2 Medium Learning Objective : 07-04 Develop business rules to implement controls for the conversion process.

Bloom's : Apply Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Business rules, conversion process controls

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ESSAY. Write your answer in the space provided or on a separate sheet of paper.

41) Integrated Case Serena’s Tennis Togs, Inc., was founded by one of the world famous women’s tennis players to produce tennis and other sports clothing for the many women that appreciate Serena’s unique fashion sense. Serena’s Tennis Togs, Inc. (STTI) makes and markets multiple types of recreational clothing lines for women. This case focuses on STTI’s acquisition/payment and conversion processes.

STTI Conversion cycle. When STTI gets an order from one of their distributors (sales orders are not modeled in this case), a manufacturing supervisor issues one or more production orders to authorize production of the clothing items. Each production order applies to only one finished clothing item. For cost accounting purposes, STTI determines the total standard labor and material cost for each production order.

STTI has carefully planned the material and labor required for each of its finished clothing items. Its master assembly plan specifies the sequence of steps (assembly operations) as well as the raw materials required to produce each finished clothing item. The master assembly plan also specifies the standard labor and material cost for each step. Each step in the master assembly plan is identified with a master assembly number.

The actual manufacturing process occurs in a series of assembly steps (each step is identified by control # in the production control records). Each step may use several types of material.

STTI tracks the actual material and labor costs for each step in their production control records.

STTI also tracks the total standard and actual costs for each production order.

The STTI manufacturing process employs two classes of employees: crafters and supervisors (model separately). Crafters get the raw materials from inventory and use them in the assembly steps. Each assembly step may involve several crafters, and crafters may work on several assembly steps.

The crafters are paid on an hourly basis. Production supervisors are paid salaries and bonuses.

(Model them separately).

STTI Purchases. STTI’s financial success depends on the quality of their products, so the company buys only the highest quality raw materials and follows a structured acquisition process. First, the buyers issue purchase orders to vendors for one or more required raw material items. Second, the vendor ships the products to STTI, and STTI records purchases upon receipt and acceptance of the items. In some cases, vendors fulfill several purchase orders with one shipment.

STTI takes advantage of all prompt payment discounts. If multiple vouchers are due to the same vendor on a certain day, the cashier combines those into one payment. STTI pays for each purchase in full, less any applicable discount, on the day that the payment is due.

After receipt and acceptance, each raw material item is stored in its designated bin to facilitate its issue to the production process, although each bin may hold several different types of raw material. Each bin is color-coded for easy identification.

General. All economic agents, resources, and types are put into the database before any

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relationships with other entities are instantiated. STTI tracks its employees in separate classes according to their particular job, although each internal agent is keyed by employee#. (So, don't model one Employee agent; model separate internal agents, e.g., buyers, crafters, cashiers, supervisors.)

Required: 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support STTI’s processes using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes).

Attributes actual $ amount paid for this production supervisor salary purchase actual quantity of raw material finished clothing item price received actual time for this crafter in this finished clothing item # assembly step standard unit price for this raw (assembly step) control # material standard labor cost for assembly production order due date step buyer rating production order # cash account balance purchase order (PO) total dollar amount cash account# purchase order date cashier bond status purchase order # check amount finished clothing item quantity on hand (QOH) check# actual quantity of this raw material used in this assembly step accounts payable to this vendor raw material description total purchase $ amount raw material QOH crafter hourly wage standard quantity of this raw material for assembly step employee name production order standard material cost employee# vendor name raw material # vendor#

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receiving report # (purchase) YTD bonus for this supervisor scheduled delivery date master assembly # sequence in which assembly step is bin # scheduled to be performed (1st, 2nd, etc.) assembly step date bin color production order actual labor cost percent on-time deliveries for this vendor production order actual material percent on-time payments to cost this vendor production order standard labor cost

Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams null : Chapter - Chapter 07

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42) Integrated Case Gary Cooper (yes - that is his real name, and his nickname is Coop) loves classic cars, but he knows he will never be able to afford most of them. He also knows that most classics are unreliable and expensive to own. Plus, they do not have the features and comforts of modern cars. So, he created a company that constructs custom replicas of classic cars. His replicas have modern mechanical parts and many of the features that can be found in todays’ cars. More importantly, they meet modern safety and emission requirements. This case describes Coop’s sales and production processes.

Coop’s Cars: Coop developed a list of replicas for the most sought-after classic cars. He sells replica European Sports Cars, such as Porsche, Ferrari, and Jaguar, as well as some American muscle cars. Coop tracks each car, engine, and color combination with a custom car product number. The customer gets to select among the various engine and color options for his/her car.

Customers typically order one car (one product number), but some customers love the cars so much that they order several at once. Customers must provide at least a 25% deposit with the order, but they can pay the balance after they take delivery of the car.

Car chassis: Coop maintains an inventory of car chassis with body shells, interior, seats, etc.

Consequently, he can deliver a custom car in just a few days. When the inventory of car chassis gets low, an employee issues a chassis production order. The chassis assembly plan describes the specific parts that go into each chassis as well as the specific chassis assembly operations required. Coop’s employees then conduct the assembly operations to assemble the new chassis.

Customizing: After the customer places an order and selects the chassis, engine, and color combination, Coop’s employees start the customizing operations. The engine is placed in the car and the car is painted. Then, after some initial testing, the car is placed in inventory, ready for delivery to the customer. Although several employees work on the customizing operations, Coop also designates one employee to supervise the process and assure a high quality finished car.

Miscellaneous: Coop keeps all his employee records in one table, but he also categorizes employees according to their specialty. He records information about employees, customers, employee types, custom cars, and classic parts before they are linked to other classes.

Required: 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support Coop’s processes using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes).

Attributes HTML Table EditorNew TableGet CodeHelp undo redo format_align_left format_align_center format_align_right vertical_align_top vertical_align_center vertical_align_bottom format_bold format_italic format_underline border_left border_right border_bottom border_bottom border_clear format_indent_increase format_indent_decrease format_indent_increase

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format_indent_decrease Merge UnMerge Header Table with grid lines Actual cost of this chassis part Chassis assembly planned sequence Actual qty of this part in this chassis Chassis description Cash account # Chassis quantity on hand Cash account balance Chassis standard cost Cash receipt # Chassis part description Cash receipt date Chassis part # Chassis # Chassis part quantity on hand (QOH) Chassis actual cost Custom car actual cost Chassis assembly operation # Custom car price Chassis assembly operation date Custom car product # Chassis assembly order # Custom car standard cost Chassis assembly order date Customer # Chassis assembly plan # Customer address Customer name Number of hours this employee worked on this customizing operation Customer order # Customer order date Quantity of this custom car ordered on this order Customer order delivery date Customer order total $ amount Standard cost of this part in this chassis Customizing operation # Standard qty of this part in this chassis Customizing operation date Total actual cost of this assembly operation Employee # Total actual cost of this chassis assembled on this order Employee Hire Date Employee Name Total standard cost of this assembly operation Employee Pay Rate Total standard cost of this chassis assembled on this order Employee type Engine # Engine cylinders Engine horsepower Number of employees of this type Number of hours this employee worked on this assembly operation HTML Table EditorNew TableGet CodeHelp undo redo format_align_left format_align_center format_align_right vertical_align_top vertical_align_center vertical_align_bottom format_bold format_italic format_underline border_left border_right border_bottom border_bottom border_clear format_indent_increase format_indent_decrease format_indent_increase format_indent_decrease Merge UnMerge Header Table with grid lines Actual cost of this chassis part Chassis quantity on hand Actual qty of this part in this chassis Chassis standard cost Cash account # Chassis part description Cash account balance Chassis part # Cash receipt # Chassis part quantity on hand (QOH) Cash receipt date Custom car actual cost Chassis # Custom car price Chassis actual cost Custom car product # Chassis assembly operation # Custom car standard cost Chassis assembly operation date Customer # Chassis assembly order # Customer address Chassis assembly order date Customer name Chassis assembly plan # Customer order # Chassis assembly planned sequence Customer order date Chassis description Customer order delivery date Customer order total $ amount Number of hours this employee worked on this customizing operation Customizing operation # Customizing operation date Quantity of this custom car ordered on this order Employee # Employee Hire Date Standard cost of this part in this chassis Employee Name Standard qty of this part in this chassis Employee Pay Rate Total actual cost of this assembly operation Employee type Total actual cost of this chassis assembled on this order Engine # Engine cylinders Total standard cost of this assembly operation Engine horsepower Total standard cost of this chassis assembled on this order Number of employees of this type Number of hours this employee worked on this assembly operation × Actual cost of this chassis Chassis quantity on hand part Actual qty of this part in Chassis standard cost

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this chassis Cash account # Chassis part description Cash account balance Chassis part # Cash receipt # Chassis part quantity on hand (QOH) Cash receipt date Custom car actual cost Chassis # Custom car price Chassis actual cost Custom car product # Chassis assembly operation Custom car standard cost # Chassis assembly operation Customer # date Chassis assembly order # Customer address Chassis assembly order date Customer name Chassis assembly plan # Customer order # Chassis assembly planned Customer order date sequence Chassis description Customer order delivery date Customer order total $ Number of hours this employee worked on amount this customizing operation Customizing operation # Quantity of this custom car ordered on this order Customizing operation date Standard cost of this part in this chassis Employee # Standard qty of this part in this chassis Employee Hire Date Total actual cost of this assembly operation Employee Name Total actual cost of this chassis assembled on this order Employee Pay Rate Total standard cost of this assembly operation Employee type Total standard cost of this chassis assembled on this order Engine # Engine cylinders Engine horsepower Number of employees of this type Number of hours this employee worked on this assembly operation

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Learning Objective : 07-05 Develop a structure model for the conversion process using UML class diagr Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Conversion Process Structure Models using UML Diagrams null : Chapter - Chapter 07

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43) Correct the BPMN Activity Diagram After a very successful career in business, Ray Robertson decided to leave the rat-race to pursue his life-long (adult life-long) interest in brewing unique, hand-crafted beers. He wanted his business to reflect his passions: beer, football, and the Oregon Ducks, so the name Yellow Duck Brewing Company seemed natural. Since recent medical research has shown that moderate beer consumption is healthy, Ray carefully selected the freshest ingredients for his beer to make his beers even healthier. The unofficial motto of the Yellow Duck Brewing Company became, “the only beer to have when you are having only one!” This case describes the sales and bottling processes for Yellow Duck.

Yellow Duck Sales Process Customers order specific bottled beer products when they place their order, and Yellow Duck often rejects orders depending on the availability of that beer. (The availability of any bottled beer depends on what Yellow Duck has brewed recently and the bottles on hand.) Yellow Duck bottles its beers when a customer service employee receives an order for one or more bottled beer products from a customer. Yellow Duck records the sale when the customer picks up the beer from the customer service employee. Yellow Duck only sells its beer to wholesale customers, so each customer pays for all the sales during the month in one payment at the end of the month.

Yellow Duck Bottling Process Yellow Duck sells its beer in distinctive bottles, designed by local artists, to stand out from more mundane beers. The bottling process takes place in a series of steps. Each step is authorized by a supervising employee and also involves several other employees who carefully transfer brewed beer into the bottles, apply the labels, and place the bottles in the bottled beer inventory.

At that point the beer is ready for sale to the customer. Each bottling step involves only one particular bottle number but may involve several different brewed beers.

Required: Using the description above, correct the BPMN activity diagram with shown below so that the diagram accurately depicts Yellow Duck’s sales and bottling process.

Incorrect BPMN diagram:

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Question Details AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Source : Original Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation null : Chapter - Chapter 07 Learning Objective : 07-02 Develop an activity model of the conversion process using BPMN. Topic : Conversion Process Using BPMN

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Answer Key Test name: Chapter 07 1) TRUE 2) TRUE 3) TRUE 4) TRUE 5) TRUE 6) TRUE 7) FALSE 8) FALSE 9) FALSE 10) TRUE 11) B 12) C 13) A 14) C 15) A 16) C 17) B 18) D 19) B 20) A 21) B 22) D 23) B 24) C 25) A 26) B Version 1

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27) C 28) D 29) B 30) C 31) A 32) C 33) D 34) B 35) C 36) B 37) B 38) A 39) A 40) A

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41) Resources: Cash = cash account # (PK), cash account balance Raw Material = raw material # (PK), raw material description, raw material QOH, standard unit price for this raw material, bin# (FK) Finished Clothing Items = finished clothing item # (PK), finished clothing item price, finished clothing item quantity on hand = QOH Events: Purchase Orders = purchase order # (PK), purchase order date, purchase order = PO total dollar amount, scheduled delivery date, receiving report# (FK), buyer employee# (FK), vendor# (FK) Purchases = receiving report # (PK), total purchase $ amount, actual $ amount paid for this purchase, buyer employee # (FK), vendor # (FK), check # (FK) Cash Disbursements = check # (PK), check amount, cash account # (FK), cashier employee # (FK), vendor # (FK) Assembly steps = record # (PK), assembly step date, production order # (FK), master assembly list # (FK) Production Order = production order # (PK), production order due date, actual labor cost, actual material cost, standard labor cost, standard material cost, finished clothing item# (FK), supervisor employee# (FK) Agents: Buyer = employee # (PK), employee name, buyer rating Cashier = employee # (PK), employee name, cashier bond status Crafter = employee # (PK), employee name, crafter hourly wage Production supervisor = employee # (PK), employee name, salary, YTD bonus for this

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supervisor Vendor = vendor # (PK), vendor name, individual accounts payable, percent on-time deliveries for this vendor, percent on-time payments to this vendor Type Images: Master Assembly Plan = master assembly # (PK), standard labor cost for assembly step, sequence in which assembly step performed, finished clothing item # (FK) Bin = bin # (PK), bin color Linking Tables: Purchase-Raw Material = receiving report # + raw material # (PK), actual quantity of raw material received Purchase Order-Raw Material = purchase order # + raw material # (PK) Assembly step-Crafter = step record # + crafter employee # (PK), actual time for this crafter in this assembly step Assembly Step-Raw Material = raw material # + step record # (PK), raw material actual quantity used in this assembly step Master Assembly-Raw Material = master assembly list # + raw material # (PK), raw material standard quantity for this assembly step

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42) Resources: Chassis Parts = Chassis Part # (PK), Chassis part description, Chassis part QOH, Actual cost of this chassis part Car Chassis = Chassis # (PK), Chassis description, Chassis QOH, Chassis actual cost, Chassis standard cost Engines = Engine # (PK), Engine cylinders, Engine horsepower Custom Cars = Custom Car Product # (PK), Chassis # (FK), Engine# (FK), Custom car price, Custom car actual cost, Custom car standard cost Cash = Cash Account # (PK), Cash account balance Events: Assembly Operations = Chassis Assembly Operation # (PK), Chassis assembly operation date, Chassis Assembly Plan# (FK), Chassis Assembly Order# (FK), Total actual cost of this assembly operation, Total standard cost of this assembly operation Chassis Order = Chassis Assembly Order # (PK), Chassis assembly order date, Total actual cost of this chassis assembled on this order, Total standard cost of this chassis assembled on this order, Chassis# (FK), Employee # (FK) Customizing Operations = Customizing Operation # (PK), Customizing operation date, Chassis # (FK), Engine # (FK), Employee # (FK), Customer Order # (FK) Version 1

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Customer Order = Customer Order # (PK), Customer order date, Customer order delivery date, Customer order total $ amount, Employee # (FK), Customer # (FK) Cash Receipt = C/R # (PK), Cash receipt date, Cash Acct # (FK), Customer Order # (FK), Customer # (FK), Employee # (FK) Agents: Employee = Employee # (PK), Employee Type (FK), Employee hire date, Employee name, Employee pay rate, Customer = Customer # (PK), Customer address, Customer name Type Images: Chassis Assembly Plan = Chassis Assembly Plan # (PK), Chassis# (FK), Chassis assembly planned sequence, Employee Type = Employee Type (PK), Number of employee of this type Linking Tables: Chassis Assembly Plan-Chassis Part = Chassis Assembly Plan # + Chassis Part # (PK), Standard cost of this part in this chassis, Standard qty of this part in this chassis Chassis Parts-Assembly Operations = Chassis Part # + Chassis Assembly Operation # (PK), Actual qty of this part in this chassis Assembly Operations-Employee = Chassis Assembly Operation # + Employee # (PK), number of hours this employee worked on this assembly operation Customizing Operations-Employee = Customizing Operation # + Employee # (PK), number of hours this employee worked on this customizing operation Custom Cars-Customer Order = Custom Car Product # + Customer Order# (PK), Qty of this custom car ordered on this order

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43)

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Data warehouses work together with operational systems to provide necessary insight, particularly in the case of customer relationship management (CRM) and supply chain management (SCM) systems. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

2) Data warehouses are often designed to facilitate decision making such as those often used in managerial accounting and facilitate management by exception, such as variance reports, trend reports, variance analysis reports, and reports that show actual performance are compared to budgeted information. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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3) If data mining finds a statistical correlation or relationship between two data items, then there exists a plausible relationship between those two data items in the real world. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

4)

XBRL is based on the XML language. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

5)

XBRL produces standardized reports and is not customizable. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

6) XBRL GL (also known as XBRL Global Ledger Taxonomy) serves as a means to facilitate efficient communication within a firm. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

7) 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. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

8) XBRL instance documents describe each key data element (e.g., total assets, accounts, payable, net income, etc.). ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

9) XBRL allows highly disaggregated data so not only is it possible to know the level of sales, but it is possible to know sales revenue in much more detail. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

10) Data warehouses gather information from external databases, but not from internal databases. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

11) XBRL style sheets take the instance documents and add presentation elements to make XBRL filings readable by humans. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

12) Bank loan officers and the IRS will likely have different XBRL style sheets for the various XBRL filings. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

13) Since both are regulators, the SEC and the IRS will likely have similar XBRL style sheets for the various XBRL filings. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

14) XBRL (eXtensible Business Reporting Language) is an open, global standard for exchanging financial reporting information. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

15) Data Mining is a process of using sophisticated statistical techniques to extract and analyze data from large databases to discern patterns and trends that were not previously known. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

16) XBRL Instance Documents define and describe each key data element (e.g., total assets, accounts, payable, net income, etc.). ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

17) Data mining is considered a technique of: A) Data Warehousing B) Project Management C) Data Martian D) Business Intelligence

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

18)

A data warehouse may include: A) An XBRL style sheet B) General Economic Information C) A digital Dashboard D) Ciphertext

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Data Warehouses and Data Marts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

19)

Ford may use business intelligence for all of the following except: A) Compare competitor vehicle sales to Ford vehicle sales.

B) Review website activity.

C) Prepare activity models using BPM. D) Analyze the correlation of gas prices to vehicle sales.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

20) A collection of information gathered from an assortment of external and operational (i.e., internal) databases to facilitate reporting for decision making and business analysis is called: A) Business intelligence.

B) Data Warehouse.

C) Digital Dashboard.

D) XBRL.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Data Warehouses and Data Marts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

21)

The steps in business intelligence include:

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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

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

22)

Which of the following is least likely to appear in a Digital Dashboard: A) Website clicks B) Current month sales C) Expected Fed Fund rate changes D) Store openings

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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23) Which type of company does the Securities and Exchange Commission (SEC) require to format their financial statements using XBRL? A) Financial institutions B) Large accelerated filers C) Brokerage firms D) All public companies

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Bloom's : Understand Difficulty : 2 Medium Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

24) XBRL GL, or XBRL Global Ledger Taxonomy, is different from XBRL US GAAP because it facilitates: A) Efficient communication between the firm and financial analysts.

B) Efficient communication within a firm.

C) Efficient communication between the firm and its suppliers.

D) Efficient communication between the firm and its customers.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Bloom's : Understand Difficulty : 2 Medium Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

25)

The stated advantages of XBRL GL include: A) Flexibility B) SEC approval C) Less costly D) Network Effects

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Bloom's : Understand Difficulty : 2 Medium Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

26)

XBRL assurance is generally expected to include all of the following except:

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A) Assurance that the most current, standardized XBRL taxonomy is used.

B) Assurance that the underlying financial and nonfinancial data that is used in XBRL tagging is reliable.

C) Assurance that the XBRL tagging is accurate and complete.

D) Assurance that reports include all relevant financial and nonfinancial information.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Bloom's : Understand Difficulty : 2 Medium Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

27)

XBRL stands for A) eXtensible Business Reporting Language B) eXtensible Behavioral Reporting Language C) eXtensible Book Reporting Language D) eXtensible Basic Reporting Language

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Bloom's : Understand Difficulty : 2 Medium Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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28)

Which of the following roles is least likely to use data in XBRL format: A) Financial analysts.

B) Loan officers.

C) Marketing officers.

D) Regulatory bodies.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Bloom's : Understand Difficulty : 2 Medium Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

29) In February 2009, the _____ passed the rule requiring all large domestic publicly traded firms to begin formatting their financial statements using XBRL. A) Financial Accounting Standards Board.

B) International Accounting Standards Board.

C) American Institute of Certified Public Accountants.

D) Securities and Exchange Commission.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Bloom's : Understand Difficulty : 2 Medium Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

30)

A document containing XBRL elements is called a(n): A) XBRL Instance Document.

B) XBRL Style Sheet.

C) XBRL Report.

D) XBRL Taxonomy.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Bloom's : Understand Difficulty : 2 Medium Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

31) The process of using sophisticated statistical techniques to extract and analyze data from large databases to discern patterns and trends that were not previously known is called:

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A) Data Mart B) Data Mining C) Data Warehouse D) Business Intelligence

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

32) The tool that defines and describes each key data element (e.g., total assets, accounts, payable, net income, etc.) in XBRL is called _____: A) XBRL specification.

B) XBRL taxonomy.

C) XBRL style sheet.

D) XBRL instance document.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Bloom's : Understand Difficulty : 2 Medium Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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33)

Which of the following does not facilitate businessdecision-making activities?

A) Data Warehouse.

B) Digital Dashboard.

C) UML Class Diagram.

D) Decision Support System.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Difficulty : 1 Easy Source : Original Bloom's : Understand Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

34) Which of the following is often used as the main repository of a company’s historical data (i.e., its corporate memory)?

A) The UML Class Diagram.

B) The data warehouse.

C) The XBRL instance document.

D) Its digital dashboard.

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Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

35) Before data from multiple sources can be loaded into the data warehouse, which of the following activities must be performed?

A) The company must obtain explicit permission from all public and private data sources before their data can be used in the data warehouse.

B) Operational system reports must be run, as the extraction process that loads the data warehouse usually deletes the data from the operational system.

C) Data inconsistencies must be removed so that the warehouse has homogeneous data for analysis and reporting purposes.

D) The operational system must create and file the appropriate XBRL instance document with the SEC.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

36) Data warehouses that focus on facilitating managerial accounting needs and/or management by exception, can be called:

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A) Financial Reporting Systems.

B) Data Mining.

C) Customer Relationship Management Systems.

D) Decision Support Systems.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

37) Business Intelligence is a technique that frequently makes use of all of the following except: A) Spear Phishing.

B) Databases.

C) Web crawlers.

D) Data warehouses.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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38) Data Mining uses which of the following approaches to analyze data and find new patterns and trends?

A) Data normalization.

B) Data scrubbing.

C) Decision Support Systems.

D) Sophisticated statistical techniques.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

39) When using a Data Mining approach for business analysis, it is important to remember which of the following?

A) All relationships between data items mean that one item has an impact on the other.

B) Data patterns and trends must be obvious before we can consider them in the business decision making process.

C) Relationships between data items do not necessarily mean that one causes the other.

D) Data mining should be performed in the operational system, not the data warehouse.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

40) In addition to finding statistical correlations, proper application of Data Mining techniques should include which of the following?

A) Good use of the REA framework.

B) Professional judgment.

C) Use of the most current XBRL taxonomy.

D) Digital dashboards.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

41) Data mining may uncover relationships in which no causality should be implied. In these cases, which of the following phases would be most appropriate?

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A) “A improves B.” B) “A has an impact on B.” C) “A is associated with B.” D) “A enhances B.”

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

42)

Which of the following metrics would be least likely to show up on a Digital Dashboard?

A) Accumulated depreciation for the previous year.

B) Month-to-date sales.

C) Budget variances.

D) Number of accident-free days.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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43) Which of the following metrics would be most likely to show up on a Digital Dashboard for a retail organization?

A) Abandoned Shopping Carts for retailer’s website.

B) Weather forecast.

C) Account Reconciliations.

D) Work in process.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

44) Which of the following is the least likely example of how a specialized digital dashboard might be used?

A) To track construction projects.

B) To track network security.

C) To track manufacturing operations.

D) To track fixed asset depreciation.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

45) The SEC’s rule titled “Interactive Data to Improve Financial Reporting” resulted in which of the following?

A) XBRL International now creates yearly taxonomies for XBRL filing.

B) Large accelerated filers must now format their financial statements using XBRL. C) U.S. banks must submit their quarterly “Report of Condition and Income” using XBRL. D) Updated the XBRL specification to the most current version.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

46)

Which of the following best describes the use of XBRL style sheets?

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A) Style sheets determine which elements may be used when companies submit their XBRL filing.

B) Style sheets are another name for XBRL instance documents.

C) Style sheets allow for presentation of selected data from XBRL documents in a way that humans can read.

D) Style sheets determine the formatting of numbers and text in the XBRL taxonomy.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

47)

Which of the following may be the result of data mining?

A) Digital Dashboards.

B) Competitor sales by region.

C) Weather forecasts.

D) Items frequently bought in combination.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

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48) Which of the following is not an example of how a company may use business intelligence?

A) XBRL data.

B) Customer demographic information.

C) Product quality issues.

D) Customer credit history.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 09-02 Describe the basic components of business intelligence and how they are ut Topic : Business Intelligence AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

49) Name three internal and three external databases that you think should be included in a data warehouse for Ford, Chrysler or General Motors. Support your answer.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

50) Name three internal and three external databases that you think should be included in a data warehouse for Apple or Google. Support your answer.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

51) Name five items that you think would be included in a digital dashboard for your university. Why are these critical business processes for them?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

52) Name five items that you think would be included in a digital dashboard for an organization that you are familiar with (church, sorority, local not-for-profit, etc.) Why are these critical business processes for them?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

53) Why would general economic information (GDP, interest rates, etc.) be included in a data warehouse? Would they be more helpful for some companies than for others?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

54) How would Apple Computer use a data mart in its marketing area? How does that help designers of the data warehouse know what to include?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

55) Why would competitor information be included in a data warehouse? How would it be used?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 09-01 Explain how data warehouses are created and used.

Source : Original Topic : Data Warehouses and Data Marts Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

56) Name five items that you think would be included in a digital dashboard for EBay. Why are these critical business processes for them?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

57) Why is assurance needed on XBRL data? Why will financial analysts need assurance that the XBRL data is correct? Support your answer.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

58) Why would the company want XBRL assurance if the IRS or SEC were going to be using its data?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

59) There is a different XBRL taxonomy for each country, including XBRL Australia, XBRL Canada, XBRL Germany, XBRL Japan, XBRL-Netherlands, XBRL-US, and XBRL-UK. What would happen if there were only one XBRL taxonomy for all countries?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

60) How would the XBRL style sheets be different for financial analysts as compared to the Internal Revenue Service?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

61) Why is XBRL needed in the financial community? In your opinion, why did the Securities and Exchange Commission mandate its usage? What does it provide that was not available before XBRL

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-04 Explain how XBRL works and how it makes business reporting more efficient.

Topic : Financial Reporting and XBRL Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

62)

How would XBRL GL be used for internal uses such as management accounting?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

63) How would XBRL GL facilitate the SEC-required XBRL submission of a company’s regulatory filings?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

64) Data mining is often used to find patterns in stock prices to assist technical financial stock market analysts, or in commodities or currency trading. What are the benefits and concerns with using data mining to find patterns in stock prices? What would you need to feel comfortable enough to trade on these patterns?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

65) Data warehouses often serve as the main repository of the firm's historical data, or in other words, its corporate memory, and will often serve as an archive of past firm performance.

Besides past financial performance, what historical data would a firm like McDonald’s be interested in archiving in its data warehouse?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 09-03 Describe how digital dashboards allow for continuous tracking of key metri Topic : Digital Dashboards Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : manual

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Answer Key Test name: Chapter 09 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) TRUE 10) FALSE 11) TRUE 12) TRUE 13) FALSE 14) TRUE 15) TRUE 16) FALSE 17) D 18) B 19) C 20) B 21) A 22) C 23) B 24) B 25) A 26) D Version 1

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27) A 28) C 29) D 30) A 31) B 32) B 33) C 34) B 35) C 36) D 37) A 38) D 39) C 40) B 41) C 42) A 43) A 44) D 45) B 46) C 47) D 48) A 49) Answers will vary depending on the student knowledge of a car company, but could include supplier info, financial statements and other financial reporting, general economics info, past car buying behavior, buyer demographics, etc.

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50) Answers will vary depending on the student knowledge of Apple and Google, but could include supplier info, financial statements and other financial reporting, general economics info, past smartphone buying behavior, media purchasing info, computer purchasing info, buyer demographics, advertising models, etc.

51) Answers will vary depending on the student knowledge of the university. Universities always seem interest in total student credit hours, retention rate, recruiting information, high school GPA of incoming students, etc.

52) Answers will vary depending on the student knowledge of the organization.

53) Answers will vary! All companies and their business models are affected by the general economic performance. Some businesses do better in a poor economy, but the majority has worse performance. Some are tightly correlated to the economy and others are not; therefore, some companies will have more interest in general economic information in their data warehouse than others.

54) Answers will vary! Designers of the data warehouse need to carefully query users of Apple’s data mart to see what information is needed and what information might potentially be useful to know what to include.

55) Answers will vary! Generally, companies generally cannot get too much information about their competitors. Any prior trends or information that might be useful to predict competitor (and/or industry) performance might be useful. Companies may also subscribe to data feeds from information suppliers specializing in that industry, such as Nielson/IRI, Nielson Audio, etc.

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56) Answers will vary! EBay might want to know information about its daily sales, the daily average dollar amount of each sale, some measure of its product mix, the number of new listings, referrals from its web site to other websites, etc. These all seem like critical data for its object of selling products and scooping up margins.

57) Answers will vary! A potential solution might include that since XBRL can be quickly edited, changed and manipulated; it would be nice to have some assurances as to what standards were followed and that the numbers that come out of the XBRL have assurances associated with them.

58) Answers will vary! A potential solution might include why the company wants to ensure that its information is getting to banks, shareholders, potential investors, financial analysts in a way that provides assurance would be very useful to the company even if the IRS and SEC are using that data.

59) Answers will vary! A potential solution might include a discussion of the differences in accounting standards between countries and even that tagging/wording for a very similar account might be quite different due to culture and language.

60) Answers will vary! A potential solution might include of the different roles of the IRS and financial analysts. The IRS is primarily interested in whether firms are paying sufficient taxes. Financial analysts are interested in earnings prediction and stock market valuation which often requires very different information; hence, a very different style sheet.

61) Answers will vary! A potential solution might include a discussion of the SEC and its role in establishing a level playing field for all investors.It might also include a discussion of the efficiencies gained by the SEC.

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62) Answers will vary! A potential answer might include a discussion of how XBRL GL might be used to quickly and efficiently share financial and managerial information throughout the organization.

63) Answers will vary! A potential answer might include a discussion of how XBRL GL might be used to quickly and efficiently transmit information required by the SEC. 64) Answers will vary! A potential answer might include a discussion of the power of data mining in finding patterns. However, to the extent that these patterns of past performance do not correlate with future performance, an investor may not feel comfortable trading based on those patterns.

65) Answers will vary! A potential answer might include discussion of how data warehouses might detail past special promotions, special products, details on store locations that worked well, customer demographics, customer eating palette information, employee incentive programs, customer satisfaction, etc.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Datasets that are too large and complex for businesses’ existing systems utilizing traditional capabilities are refered to as big data. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 10-01 Define Big Data and data analytics.

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

2)

The four Vs of big data are volume, vector, velocity, and veracity. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 10-01 Define Big Data and data analytics.

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

3)

Data analytics is used to publish historical information. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 10-01 Define Big Data and data analytics.

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

4) The process of scrubbing raw data to remove extraneous data and other noise in order to increase its usefulness is known as extract, transform and load. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 10-01 Define Big Data and data analytics.

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5) According to the results of the PWC’s 18th Annual Global CEO Survey, CEO’s aren’t yet ready to place a high value on data analytics. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-03 Understand the impact of data analytics on business.

Accessibility : Screen Reader Compatible

6) Data analytics can provide deep insight into financial data, but is not particularly useful when evaluating non-financial data such as social media. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-04 Understand the impact of data analytics on accounting.

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7)

Data analytics are likely to play a significant role in future audit activities. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-04 Understand the impact of data analytics on accounting.

Accessibility : Screen Reader Compatible

8) Audit data standards (ADS) are standards for data files and fields typically needed to support an external audit in a given financial business process area. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-05 Describe how the AMPS model explains the data analytics process.

Accessibility : Screen Reader Compatible

9)

The “M” in the AMPS model stands for “Manipulate the Data”. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-05 Describe how the AMPS model explains the data analytics process.

Accessibility : Screen Reader Compatible Topic : The data analytics process: The AMPS model

10) During the second stage of the AMPS model a business analyst would likely only gather data meeting Audit Data Standards. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : The AMPS Model: Master the data Learning Objective : 10-07 Describe the second stage of the AMPS model—mastering the data.

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

11) Which of the following is the best definition of the term big data?

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A) Databases measured in terms of zettabytes.

B) Datasets that are too large and complex for businesses’ existing systems utilizing traditional capabilities.

C) Databases for businesses that generate more than one million electronic transactions per month.

D) Datasets generated by social media applications such as Facebook, Twitter, Tencent QQ, and Instagram.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 10-01 Define Big Data and data analytics.

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

12)

How does data analytics play a vital role in today’s business world?

A) By allowing data to be organized into predefined tables and fields.

B) By defining three main categories of classes that help organize a company’s data structure models.

C) By examining data to generate models for predictions of patterns and trends.

D) By capturing the ever-increasing transaction activity of large companies.

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Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 10-01 Define Big Data and data analytics.

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

13) The four Vs are considered a defining feature of big data. Which of the following is the best definition of the term big data?

A) Volition, veracity, velocity & variety.

B) Variety, visibility, volocity & valuation.

C) Volume, veracity, velocity, & variety.

D) Volume, variability, variety & veracity.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 10-01 Define Big Data and data analytics.

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

14)

As described in the text, which of the following best defines the term data analytics?

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A) The ability extra and load large datasets.

B) The science of moving data from Access to Enterprise Reporting Tools to draw conculsions for decision making.

C) The process of organizing extremely large datasets to create more managability.

D) The science of examining raw data, removing excess noise, and organizing it in order to draw conclusions for decision making.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 10-01 Define Big Data and data analytics.

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

15) At its core, data analytics fits into the information value chain in which of the following ways?

A) The process of data analytics aims at transforming raw data into valuable information.

B) Data analytics aims to make an organization’s conversion process more efficient.

C) Data analytics requires organizations to share synced data with upstream and downstream business partners.

D) The process of data analytics is geared toward providing additional insight into customer activities and preferences.

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Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 10-01 Define Big Data and data analytics.

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

16) Raw data often must be scrubbed to remove extraneous data and other noise in order to become useful. This technique is known as: A) Process, Scrub, and Import.

B) Extract, Transform, and Load.

C) Evaluate, Depopulate, and Finalize.

D) Filter, Coordinate, and Upload.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-02 Describe the benefits and costs of using data analytics.

Accessibility : Screen Reader Compatible

17) Data analytics professionals estimate that they spend how much of their time cleaning data in order to perform analysis on it?

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A) 10-15%.

B) 20-30%.

C) 50-90%.

D) 99+%.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-02 Describe the benefits and costs of using data analytics.

Accessibility : Screen Reader Compatible

18) Which of the following best summarizes the two key limiting factors for business systems when dealing with Big Data?

A) Data storage capacity and processing power.

B) Data availability and software tools.

C) Database organization and transaction volume.

D) Analytic skills and software tools.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-02 Describe the benefits and costs of using data analytics.

Accessibility : Screen Reader Compatible

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19)

Which of the following is not one of the skill sets often associated with data analytics?

A) Mining and analyzing data.

B) Creating data structures and models.

C) Bifurcating data.

D) Acquiring and cleansing data.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-03 Understand the impact of data analytics on business.

Accessibility : Screen Reader Compatible

20) The insight provided through data analytics can help companies in all of the following ways except: A) Dictate the policies of external business partners.

B) Create more directed marketing campaigns.

C) Identify future opportunities and risks.

D) Affect internal business processes in order to improve productivity, utilization and growth.

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Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-03 Understand the impact of data analytics on business.

Accessibility : Screen Reader Compatible

21)

Which type of question would accountants most likely use data analytics to answer?

A) Posting journal entries.

B) Account reconciliation.

C) Control framework definitions.

D) Collectibility of Loans Receivable.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-03 Understand the impact of data analytics on business.

Accessibility : Screen Reader Compatible

22) Which of the following areas of financial reporting is most suitable for applying data analytics techniques?

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A) Evaluation of estimates and valuations.

B) Variance reporting.

C) Calculating the components of equity.

D) Depreciation.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-04 Understand the impact of data analytics on accounting.

Accessibility : Screen Reader Compatible

23)

Which of the following best describes the skill sets used in data analytics?

A) Building data warehouses; Populating data structures; Mining the data.

B) Acquiring/cleansing data; Creating data structures/models; Mining/analyzing data.

C) Developing data structures/models; Acquiring storage capacity; Analyzing the data.

D) Creating data; Building data structures; Piloting data studies.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-03 Understand the impact of data analytics on business.

Accessibility : Screen Reader Compatible

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24) The use of data analytics will likely result in significant changes to clients’ expectations of their auditors. Which of the following is most likely not one of those expected changes?

A) More innovative thinking.

B) More time spent gathering and testing data.

C) Deeper and broader insights.

D) Faster and more efficient delivery of audit findings.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-04 Understand the impact of data analytics on accounting.

Accessibility : Screen Reader Compatible

25) Which of the following is not a good example of how accountants might use data analytics to help evaluate estimates used to value financial statement accounts?

A) Assess the likelihood and level of expected warranty claims.

B) Estimate the collectibility of accounts receivable balances.

C) Automate the order entry process for online customers.

D) Assess property, plant & equipment values based on current comparable prices.

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Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-04 Understand the impact of data analytics on accounting.

Accessibility : Screen Reader Compatible

26) Which of the following best describes how external auditors’ interactions with their clients is likely to change due to the use of data analytics in the audit process?

A) External auditors will spend less time on audits and will not need to spend time with clients outside the audit.

B) External auditors will spend more time on detailed audit tasks, resulting in longer audit engagements.

C) External auditors will only interact with their clients virtually.

D) External auditors will stay engaged with clients beyond the audit.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-04 Understand the impact of data analytics on accounting.

Accessibility : Screen Reader Compatible

27) Data analytics can help in accurately identifying organizational risks. All of the following are examples of such risk except:

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A) “What-if” business forecasting.

B) Identifying security breaches.

C) Identifying flawed business processes.

D) Monitoring compliance with regulatory requirements.

Question Details AACSB : Analytical Thinking Source : Original Topic : Business analysis Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-04 Understand the impact of data analytics on accounting.

Accessibility : Screen Reader Compatible

28)

Which of the following best describes the AICPA’s Audit Data Standards (ADS)?

A) The base level of testing procedures that should be performed on AIS data.

B) A set of analytic procedures designed to be used with modern ERPs’ large datasets.

C) A set of standards for data files and fields designed to support external audits.

D) The codification of all auditing guidelines pertaining to the data generated by AISs.

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-08 Describe how audit data standards are useful in sharing data between a com Accessibility : Screen Reader Compatible Topic : The use of audit standards

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29) Which of the following is a set of standards created by the AICPA for data files and fields in order to support external audits?

A) Extract, Transform & Load (ETL).

B) Online Analytical Processing (OLAP).

C) Audit Control Language (ACL).

D) Audit Data Standards (ADS).

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-08 Describe how audit data standards are useful in sharing data between a com Accessibility : Screen Reader Compatible Topic : The use of audit standards

30)

Which of the following is not a part of the AMPS model?

A) Ask the right questions.

B) Share the story.

C) Master the data.

D) Parse the data.

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-05 Describe how the AMPS model explains the data analytics process.

Accessibility : Screen Reader Compatible Topic : The data analytics process: The AMPS model

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31)

Which of the following does not desribe characteristics of the AMPS model?

A) Iterative.

B) Can lead to asking deeper questions.

C) Binary.

D) Leaves the decision maker more knowledgable.

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-05 Describe how the AMPS model explains the data analytics process.

Accessibility : Screen Reader Compatible Topic : The data analytics process: The AMPS model

32)

When using an analytical mindset which of the following is the first task?

A) Master the data.

B) Share the story.

C) Ask the right question.

D) Request data.

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Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 10-05 Describe how the AMPS model explains the data analytics process.

Accessibility : Screen Reader Compatible Topic : The data analytics process: The AMPS model

33) Which of the following is an example of an appropriate question to begin analyzing a business problem?

A) Why is our newest product not selling as expected in Kentucky?

B) Why is net income declining?

C) How can we increase employee morale in North Carolina?

D) Can we use confidential data?

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Difficulty : 2 Medium Learning Objective : 10-06 Describe the first stage of the AMPS model—asking appropriate questi Topic : The AMPS Model: Ask the question

34) Which of the following would not help create a appropriate question in the AMPS model?

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A) Ensuring the data has integrity.

B) Making the statement succinct.

C) Narrowing the scope of the question.

D) Knowledge of business processes.

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Difficulty : 2 Medium Learning Objective : 10-06 Describe the first stage of the AMPS model—asking appropriate questi Topic : The AMPS Model: Ask the question

35) Which of the following should an analyst not do when on the second step of the AMPS model, mastering the data?

A) Analyze the data.

B) Analyze the cost versus the value of obtaining needed data.

C) Ensure the data is not outdated.

D) Assess privacy concerns with the data.

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Difficulty : 2 Medium Topic : The AMPS Model: Master the data Learning Objective : 10-07 Describe the second stage of the AMPS model—mastering the data.

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36) Which of the following is not an example of data questions which arise during the second step of the AMPS model, mastering the data?

A) Data reliability.

B) Data integrity.

C) Data serviceability.

D) Data accessibility.

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Difficulty : 2 Medium Topic : The AMPS Model: Master the data Learning Objective : 10-07 Describe the second stage of the AMPS model—mastering the data.

37) Which of the following is not a type of analyses performed during the third step of the AMPS model, performing the analysis?

A) Descriptive.

B) Predictive.

C) Prescriptive.

D) Reductive.

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Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : The AMPS Model: Perform the analysis Learning Objective : 10-09 Define and demonstrate the third stage of the AMPS model—performing

38) Which type of analysis assists with understanding why something happened during the third step of the AMPS model, performing the analysis?

A) Descriptive.

B) Diagnostic.

C) Predictive.

D) Prescriptive.

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : The AMPS Model: Perform the analysis Learning Objective : 10-09 Define and demonstrate the third stage of the AMPS model—performing

39) Which type of analysis assists with defining how to optimize performance based on a potential constraint?

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A) Descriptive.

B) Diagnostic.

C) Predictive.

D) Prescriptive.

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : The AMPS Model: Perform the analysis Learning Objective : 10-09 Define and demonstrate the third stage of the AMPS model—performing

40)

Which type of analysis assists with understanding what is happening right now?

A) Descriptive.

B) Diagnostic.

C) Predictive.

D) Prescriptive.

Question Details AACSB : Analytical Thinking Source : Original Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Topic : The AMPS Model: Perform the analysis Learning Objective : 10-09 Define and demonstrate the third stage of the AMPS model—performing

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Answer Key Test name: Chapter 10 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) FALSE 6) FALSE 7) TRUE 8) TRUE 9) FALSE 10) FALSE 11) B 12) C 13) C 14) D 15) A 16) B 17) C 18) A 19) C 20) A 21) D 22) A 23) B 24) B 25) C 26) D Version 1

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27) A 28) C 29) D 30) D 31) C 32) C 33) A 34) A 35) A 36) C 37) D 38) B 39) D 40) A

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Data visualization presents UML Class diagrams. ⊚ true ⊚ false Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

2)

Data visualization presents data in tables. ⊚ true ⊚ false

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

3)

Data visualization is the way we share the story. ⊚ true ⊚ false

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

4)

Power Point is the most relevant data visualization tool. ⊚ true ⊚ false

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

5)

Excel supports data presentation. ⊚ true ⊚ false

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

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6)

Data visualization must create or reinforce knowledge. ⊚ true ⊚ false

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

7)

A common step in preparing data for visualization is setting relationships among tables. ⊚ true ⊚ false

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-02 Describe the common elements in data processing for Excel, Tableau, and Po Topic : Common Elements of Performing and Sharing Data Analysis Accessibility : Screen Reader Compatible

8)

A common step in preparing data for visualization is developing an activity model. ⊚ true ⊚ false

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-02 Describe the common elements in data processing for Excel, Tableau, and Po Topic : Common Elements of Performing and Sharing Data Analysis Accessibility : Screen Reader Compatible

9)

When creating a data visualization the analyst should never create new fields. ⊚ true ⊚ false

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-02 Describe the common elements in data processing for Excel, Tableau, and Po Topic : Common Elements of Performing and Sharing Data Analysis Accessibility : Screen Reader Compatible

10)

Power BI is a popular data visualization tool as data does not need to be sourced. ⊚ true ⊚ false

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-02 Describe the common elements in data processing for Excel, Tableau, and Po Topic : Common Elements of Performing and Sharing Data Analysis Accessibility : Screen Reader Compatible

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

11) Which statement best describes data visualization?

A) Data visualization was created to help accessibility issues.

B) Data visualization is one way we share the story.

C) Data visualization helps users understand a UML diagram.

D) Data visualization is they way we input data into tables.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

12)

Which of the following is an activity performed as part of data visualization?

A) Selecting the data visualization tool.

B) Creating a value chain.

C) Addressing privacy concerns.

D) Asking the appropriate questions.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

13)

Which of the following is not considered a data visualization tool?

A) Excel.

B) Chart Maker.

C) Power BI. D) Python.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

14)

Which type of chart is best for categorical data?

A) Vertical bar.

B) Maps.

C) Histogram.

D) Pie chart.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

15)

Which type of chart is best to describe exam results for a class?

A) Treemap.

B) Maps.

C) Histogram.

D) Pie chart.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

16)

Which type of chart is best to show a persons’ weight over time?

A) Line chart.

B) Vertical Bar. C) Scatterplot.

D) Pie chart.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

17)

Which type of chart is best for time trend data?

A) Vertical bar.

B) Maps.

C) Histogram.

D) Line chart.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

18)

Which type of chart would best show each division’s relative profit within a corporation?

A) Pie chart.

B) Map. C) Histogram.

D) Scatterplot.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Apply Difficulty : 2 Medium Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

19)

Which type of chart would best show outbreaks of the flu by region?

A) Pie chart.

B) Map. C) Histogram.

D) Scatterplot.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Apply Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

20)

Which type of chart would best compare hours studied and test scores?

A) Scatter plot.

B) Map. C) Histogram.

D) Vertical bar.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Apply Difficulty : 2 Medium Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

21)

Which type of chart would best show enrollment between 2005-2020?

A) Pie chart.

B) Map. C) Line chart.

D) Scatterplot.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Apply Difficulty : 2 Medium Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

22)

Which type of chart is best to describe the economic conditions of each country?

A) Map. B) Doughnut chart.

C) Treemap.

D) Pie chart.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Topic : Data Visualization Concepts Accessibility : Keyboard Navigation Gradable : automatic Accessibility : Screen Reader Compatible Learning Objective : 11-01 Define important visualization concepts.

23) Which of the following is not a common step in preparing data and developing visualizations?

A) Assess the data cost versus its value.

B) Select visualization.

C) Set relationships among tables.

D) Select attributes.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-02 Describe the common elements in data processing for Excel, Tableau, and Po Topic : Common Elements of Performing and Sharing Data Analysis Difficulty : 2 Medium Accessibility : Screen Reader Compatible

24) Which of the following best describes the Get Data step in preparing data and developing a visualization?

A) Modify data to .csv format.

B) Build connections among tables.

C) Understand and clean the data for use.

D) Select the appropriate chart.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-02 Describe the common elements in data processing for Excel, Tableau, and Po Topic : Common Elements of Performing and Sharing Data Analysis Difficulty : 2 Medium Accessibility : Screen Reader Compatible

25) Which of the following is not a common element of performing and sharing data analysis amongst visualization tools?

A) Get data.

B) Set relationships.

C) Create data.

D) Select and modify the visualization.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-02 Describe the common elements in data processing for Excel, Tableau, and Po Topic : Common Elements of Performing and Sharing Data Analysis Difficulty : 2 Medium Accessibility : Screen Reader Compatible

26)

Which of the following best describes a difference between Excel and Power BI? A) Power BI can only ingest data from Microsoft Access.

B) There are no key differences described in this text.

C) Excel can only ingest data from other Excel files.

D) Power BI only exists in the cloud.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-02 Describe the common elements in data processing for Excel, Tableau, and Po Topic : Common Elements of Performing and Sharing Data Analysis Difficulty : 2 Medium Accessibility : Screen Reader Compatible

27)

What is the first step to prepare Excel data?

A) Select Data>Advanced Filter.

B) Select Data>Summarize with Pivot Table.

C) Select Insert>Recommended Charts.

D) Select Insert>Table.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Gradable : automatic Difficulty : 2 Medium Topic : Using Excel for Data Analysis Learning Objective : 11-03 Understand features of Excel for Data Analytics.

Accessibility : Screen Reader Compatible

28)

Which visualization tool creates dashboards and stories?

A) Power Point.

B) Access.

C) Excel.

D) Tableau.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-02 Describe the common elements in data processing for Excel, Tableau, and Po Topic : Common Elements of Performing and Sharing Data Analysis Accessibility : Screen Reader Compatible

29)

What type of tables does Excel use to create data visualization?

A) Relational tables.

B) Formatted tables.

C) Pivot tables.

D) Sorted tables.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Topic : Using Excel for Data Analysis Learning Objective : 11-03 Understand features of Excel for Data Analytics.

Accessibility : Screen Reader Compatible

30)

What is the first step to get data when using Tableau?

A) Select File>New. B) Select Dashboard>New Dashboard.

C) Select File>Open.

D) Select Connect>To a file.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Accessibility : Keyboard Navigation Gradable : automatic Difficulty : 2 Medium Topic : Using Excel for Data Analysis Learning Objective : 11-03 Understand features of Excel for Data Analytics.

Accessibility : Screen Reader Compatible

31)

What can users do with Tableau?

A) Create calculated fields.

B) Build relationships between data sources.

C) Create data visualizations.

D) All of the other answers are correct.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Topic : Using Tableau for Data Analysis Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Accessibility : Screen Reader Compatible

32)

Tableau can source data from all of the following except?

A) Microsoft Excel.

B) Miscrosoft Access.

C) .CSV files.

D) Microsoft Power Point.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Topic : Using Tableau for Data Analysis Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Accessibility : Screen Reader Compatible

33)

Which of the following is not an example of a dimension in Tableau?

A) Property location.

B) Sale date.

C) Quantity sold.

D) Sales manager.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Topic : Using Tableau for Data Analysis Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Accessibility : Screen Reader Compatible

34)

Which of the following is not an example of a measure in Tableau?

A) Quantity.

B) Price.

C) Volume.

D) All of these are examples of measures.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Topic : Using Tableau for Data Analysis Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Accessibility : Screen Reader Compatible

35) Which of the following in Tableau allows modification of the visualization by changing color?

A) Autofill.

B) Pencil.

C) Marks.

D) Pages.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Topic : Using Tableau for Data Analysis Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Accessibility : Screen Reader Compatible

36) An analyst may use which two features to explain the results of a complex analysis in the most robust manner possible using Tableau?

A) Story or Show Me. B) Power BI or Pages.

C) Dashboard or Story.

D) Dashboard or Class diagram.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Accessibility : Keyboard Navigation Gradable : automatic Bloom's : Apply Difficulty : 2 Medium Topic : Using Tableau for Data Analysis Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Accessibility : Screen Reader Compatible

37)

Power BI can source data from all of the following except?

A) All of the following are sources.

B) Miscrosoft Excel.

C) Text files.

D) Power BI datasets.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Topic : Using Power BI for Data Analysis Accessibility : Screen Reader Compatible

38)

What must first be added to the page when creating a visualization in Power BI? A) Row. B) Table.

C) Column.

D) Dashboard.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Topic : Using Power BI for Data Analysis Accessibility : Screen Reader Compatible

39)

What Microsoft tool would most likely be used to create a pivot table?

A) Word.

B) Excel.

C) Power BI. D) Powerpoint.

Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Topic : Using Power BI for Data Analysis Accessibility : Screen Reader Compatible

40) What Microsoft tool would most likely be used to create a complex visualization using a large amount of data?

A) Power BI. B) Excel.

C) Access.

D) Powerpoint.

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Question Details AICPA : Analytical Thinking null : AICPA BB: Leveraging Technology null : AICPA FN: Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 11-04 Understand features of Tableau for Data Analytics.

Topic : Using Power BI for Data Analysis Accessibility : Screen Reader Compatible

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Answer Key Test name: Chapter 11 1) FALSE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) TRUE 8) FALSE 9) FALSE 10) FALSE 11) B 12) A 13) B 14) A 15) C 16) A 17) D 18) A 19) B 20) A 21) C 22) A 23) A 24) C 25) C 26) B Version 1

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27) D 28) D 29) C 30) D 31) D 32) D 33) C 34) D 35) C 36) C 37) A 38) B 39) B 40) A

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Machine learning requires less data than general Artificial Intelligence. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-08 Understand the differences among artificial intelligence, machine learning

2)

Blockchain is a highly regulated technology. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain

3)

A benefit of blockchain is the lowered cost of processing transactions. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain

4)

Blockchain is only used for cryptocurrency. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain

5)

Ethereum is a type of artificial intelligence. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-03 Differentiate between the blockchain applications Bitcoin and Ethereum.

6)

Artificial neural networks are the engines of machine learning. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-09 Appreciate the structure of neural networks.

7)

Smart contracts may be an opportunity for auditors as they contain business rules. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-06 Explain the potential impact of blockchain on audit and assurance.

8) Consortium blockchain has no access restrictions in relation to viewing or participating in the blockchain network. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-04 Describe public blockchain, private blockchain, and consortium blockchain.

9) A use case for blockchain may exist wherever there is a significant cross-organization workflow. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-05 Discuss blockchain use cases.

10) The key difference between artificial intelligence applications and machine learning is that machine learning involves the computer learning from specific instructions versus experience. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-10 Describe the types of learning.

11)

The cost of a false prediction is important to data analysts. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-11 Assess model performance.

12)

Alexa from Amazon and Siri from Apple are examples of robotic process automation. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-12 Recognize applications of AI in accounting.

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

13) Blockchain was built to minimize the use of: A) US Dollars.

B) Regulators.

C) Intermediaries.

D) Accountants.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-01 Describe the history of blockchain technology.

14) Satoshi Nakamoto used all of the following when creating a distributed ledger system except: A) Confusion Matrix.

B) Resource intensive mining.

C) Peer-to-peer transactions.

D) Open participation.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-01 Describe the history of blockchain technology.

15)

Which of the following is not benefit of blockchain?

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A) Past information is easily edited.

B) New transactions are propagated to all participants.

C) Consensus must be reached to propagate transactions.

D) Participating parties do not need to trust each other.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain Difficulty : 2 Medium

16)

Which of the following is not accurate regarding blockchain?

A) Data is distributed safely.

B) The technology uses cryptography.

C) Consensus must be reached to propagate transactions.

D) Only the administrator keeps a copy of the entire database.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain

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17)

In which of the following situations would blockchain add value?

A) Multiple parties that do not trust each other want to collaborate.

B) Management would like to automate routine tasks.

C) A prediction on weather related losses is needed.

D) Contracts need to be reviewed for revenue recognition.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain Difficulty : 2 Medium

18)

Smart contracts do all of the following except: A) Define terms.

B) Define business rules.

C) Define miners.

D) Define transfer of assets.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain

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19)

To be considered blockchain a technology must have all of the following except: A) Rewardability.

B) Consensus.

C) Immutability.

D) Decentralization.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain

20)

Which of the following is not a consensus algorithm?

A) Proof of miner.

B) Proof of work.

C) Proof of authority.

D) Proof of stake.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain

21)

Which of the following is a key difference between Bitcoin and Ethereum?

A) Only Bitcoin uses blockchain technology.

B) Only Bitcoin provides mining rewards.

C) Ethereum employs smart contracts.

D) Ethereum has no cryptocurrency.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-03 Differentiate between the blockchain applications Bitcoin and Ethereum.

Difficulty : 2 Medium

22)

How often is a block added to Ethereum?

A) Every 10 minutes.

B) Every 12-15 seconds.

C) Every 16-22 minutes.

D) Every second.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-03 Differentiate between the blockchain applications Bitcoin and Ethereum.

23) Which type of blockchain would a corporation and their key supplier set up to facilitate transactions?

A) Private.

B) Public.

C) Consortium.

D) Supply Chain Block.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-04 Describe public blockchain, private blockchain, and consortium blockchain.

24) Which type of blockchain would an accounting department of a large international firm set up to track control testing?

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A) Private.

B) Public.

C) Consortium.

D) Supply Chain Block.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-04 Describe public blockchain, private blockchain, and consortium blockchain.

25) Which type of blockchain offers economic reward for the computational proof of work in mining?

A) Private.

B) Public.

C) Consortium.

D) Supply Chain Block.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-04 Describe public blockchain, private blockchain, and consortium blockchain.

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26)

What is not a general function of blockchain technology?

A) Transfer digital assets.

B) Authenticate identities.

C) Generation of bitcoin.

D) Ability to create value.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-04 Describe public blockchain, private blockchain, and consortium blockchain.

27)

Which of the following is the least likely use case for implementing blockchain?

A) A grocery store would like to modernize their payroll systems.

B) A county would like to modernize how auto titles are transferred.

C) A foreign goods importer would like to track their product as they move to the United States.

D) American Express would like multiple vendors to allow customers to pay with loyalty points.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-05 Discuss blockchain use cases.

Bloom's : Understand Difficulty : 3 Hard

28) All of the following are challenges for auditors when auditing records residing in a blockchain network except: A) Programming skills may be needed.

B) Complicated protocols may be difficult to understand.

C) Smart contracts cannot be used as evidence.

D) Converting traditional audit approaches to blockchain technology.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-06 Explain the potential impact of blockchain on audit and assurance.

29) One of the largest challenges across the accounting industry for auditing firms which use blockchain is:

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A) Understanding business activities.

B) Continuous monitoring.

C) Deciphering cryptocurrency.

D) A gap in skillset.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Topic : Blockchain Learning Objective : 12-06 Explain the potential impact of blockchain on audit and assurance.

30)

Artificial Intelligence can include all of the following except: A) Database programming.

B) Visual perception.

C) Logical thinking.

D) Language translation.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-07 Define artificial intelligence.

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31) Which statement below describes the relationship between artificial intelligence and machine learning?

A) Artificial intelligence is like a city and machine learning is like the state.

B) Artificial intelligence is like a database and machine learning is like a table in the database.

C) Machine learning is like a library and artificial intelligence is like a book.

D) Machine learning is like the general ledger and artificial intelligence is like an account.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-08 Understand the differences among artificial intelligence, machine learning Bloom's : Understand Difficulty : 3 Hard

32)

Which of the following best represents the virtuous cycle of machine learning?

A) Input customer purchase data→Predict future purchases→Learn pattern.

B) Input customer purchase data→Learn pattern→Predict future purchases.

C) Predict pattern→Input purchase data→Learn pattern.

D) Predict outcome→Input data→Learn mistakes.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-08 Understand the differences among artificial intelligence, machine learning Difficulty : 2 Medium Bloom's : Understand

33)

Deep learning is best described as: A) A form of machine learning that involves complex, multilayer neural networks.

B) A form of machine learning that involves hidden neural networks.

C) A form of learning based on regression analysis.

D) A form of reinforcement learning.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-08 Understand the differences among artificial intelligence, machine learning Bloom's : Understand Difficulty : 3 Hard

34)

Which of the following is the best description of neural networks?

A) Mathematical models that convert inputs to outputs/predictions.

B) Intelligence exhibited by machines rather than humans.

C) A blockchain network where participants need permission to join the network.

D) A ledger where individual entries are separate in time and location.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-09 Appreciate the structure of neural networks.

35) When a bank has an input file of FICO scores and uses machine learning to help predict credit losses for each customer, they are likely using which type of learning?

A) Reinforcement Learning.

B) Unsupervised Learning.

C) Supervised Learning.

D) Matrix Learning.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-10 Describe the types of learning.

Difficulty : 2 Medium Bloom's : Understand

36)

If a machine learns by trial and error, it is using:

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A) Reinforcement Learning.

B) Confusion Learning.

C) Semi-Supervised Learning.

D) Matrix Learning.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-10 Describe the types of learning.

Difficulty : 2 Medium Bloom's : Understand

37)

If a machine is attempting to reduce the dimensions in a dataset it is using: A) Reinforcement Learning.

B) Unsupervised Learning.

C) Supervised Learning.

D) Matrix Learning.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-10 Describe the types of learning.

Difficulty : 2 Medium Bloom's : Understand

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38)

How do data analysts use confusion matrices?

A) To predict a non-binary outcome.

B) To predict a binary outcome.

C) To understand a model’s prediction results.

D) To audit artificial intelligence.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-11 Assess model performance.

Difficulty : 2 Medium Bloom's : Understand

39)

When an accounting team automates account reconciliations this is an example of: A) Robotic process automation.

B) Spreadsheet automation.

C) Natural language automation.

D) Internet automation.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-12 Recognize applications of AI in accounting.

Difficulty : 2 Medium Bloom's : Understand

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40)

Which of the following is an example of natural language processing?

A) A product that creates a language based confusion matrix.

B) A product which provides voice and visual communications.

C) A product which creates training manuals which are easy to understand.

D) A product which reads contracts and helps accountants with revenue recognition.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-12 Recognize applications of AI in accounting.

Difficulty : 2 Medium Bloom's : Understand

41)

Which one of the following is not an example of machine learning assisting in an audit?

A) Reviewing journal entries.

B) Reviewing organization charts.

C) Reviewing cash transactions.

D) Reviewing journal entry descriptions.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Gradable : automatic Learning Objective : 12-12 Recognize applications of AI in accounting.

Difficulty : 2 Medium Bloom's : Understand

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

42) You have been assigned to audit the work-in-process accounts of a manufacturing firm.

What are examples of how you can use machine learning to assist with your validation of balances?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Learning Objective : 12-12 Recognize applications of AI in accounting.

Difficulty : 3 Hard Bloom's : Analyze Gradable : manual

43) You are working on the JPMorgan audit and have been asked to help your manager understand the challenges associated with auditing their use of blockchain technology. Without having a detailed understanding of how JPMorgan uses blockchain, educate your manager on the general issues and challenges for auditors with blockchain technology.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Topic : Blockchain Learning Objective : 12-06 Explain the potential impact of blockchain on audit and assurance.

Difficulty : 3 Hard Bloom's : Analyze Gradable : manual

44) You work at a large financial institution and have recently been tasked to estimate the credit losses on the institutions credit card portfolio? What types of machine learning could you employ and why?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Topic : Artificial Intelligence Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Learning Objective : 12-10 Describe the types of learning.

Difficulty : 3 Hard Bloom's : Analyze Gradable : manual

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45) You work at a large grocery chain that prides itself on having food that is grown organically by farmers who earn a fair wage. Describe why you believe the concepts in a blockchain network could help validate that all purchases meet these criteria.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Source : Original Accessibility : Keyboard Navigation Learning Objective : 12-02 Understand the emergent blockchain technology and its benefits.

Topic : Blockchain Difficulty : 3 Hard Bloom's : Analyze Gradable : manual

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Answer Key Test name: Chapter 12 1) FALSE 2) FALSE 3) TRUE 4) FALSE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) TRUE 10) FALSE 11) TRUE 12) FALSE 13) C 14) A 15) A 16) D 17) A 18) C 19) A 20) A 21) C 22) B 23) C 24) A 25) B 26) C Version 1

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27) A 28) C 29) D 30) A 31) B 32) B 33) A 34) A 35) C 36) A 37) B 38) C 39) A 40) D 41) B 42) Answers will vary, especially with respect to their knowledge of Auditing. Answers should include the concepts associated with using machine learning to detect anomalies in an attempt to find unusual transactions.

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43) Answers will vary but could include some of these themes. ● The source document in a blockchain network resides in the chained block ● Records residing in the blockchain network may not provide sufficient information for auditors, ● Illegal, fraudulent, or unauthorized transactions can reside in blockchain ● How auditors access the business information and provide reasonable assurance of financial statements will be challenging ● Complicated protocols ● Lack of skills needed to understand the transactions and/or smart contract 44) Answers will vary however they should include the student’s knowledge of the three various types of machine learning described in this chapter.

45) Answers will vary however they should demonstrate the student understand the basic blockchain concepts described in this chapter.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The Sarbanes-Oxley Act of 2002 (SOX) 2002 requires the management of all companies and their auditors to assess and report on the design and effectiveness of internal control over financial reporting annually. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Reporting Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original Topic : The Need for a Code of Ethics Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

2) According to the Sarbanes-Oxley Act of 2002, it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Topic : The Need for a Code of Ethics Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

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3) In a computerized environment, internal controls can be categorized as general controls and application controls. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

4)

Internal controls guarantee the accuracy and reliability of accounting records. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

5)

Segregation of duties reduces the risk of errors and irregularities in accounting records. ⊚ ⊚

Version 1

true false

2

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

6)

The chief executive officer is ultimately responsible for enterprise risk management. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Topic : COSO Enterprise Risk Management (ERM) Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

7) The risk of a company's internal auditing processes failing to catch the misstated dollar amount of revenue on the company's income statement is classified as inherent risk. ⊚ ⊚

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3

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Risk Analysis Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

8)

Processing controls are IT general controls. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Leveraging Technology Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

9) COBIT (Control Objectives for Information and related Technology) is a generally accepted framework for IT governance in the U.S. ⊚ ⊚

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4

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Risk Analysis Learning Objective : 13-03 Describe the overall COBIT framework and its implications for IT governanc Topic : COBIT Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

10) The main objective of the ISO 27000 series is to provide a model for establishing, implementing, operating, monitoring, maintaining, and improving information security. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Risk Analysis Learning Objective : 13-04 Describe other governance frameworks related to information systems manage Topic : ISO 27000 Series Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

11) Given the requirement of the Sarbanes-Oxley Act of 2002 (SOX), the Public Company Accounting Oversight Board (PCAOB) established the Securities and Exchange Commission (SEC) to provide independent oversight of public accounting firms. ⊚ ⊚

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true false

5

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Topic : The Need for a Code of Ethics Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

12) Public Company Accounting Oversight Board (PCAOB) encourages auditors to start from the basic/bottom of financial transaction records to identify the key controls. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Topic : The Need for a Code of Ethics Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

13) Corporate governance is a set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders. ⊚ ⊚

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6

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

14)

Internal controls help safeguard an organization’s assets. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

15) A firm must establish control policies, procedures, and practices that ensure the firm's business objectives are achieved and its risk mitigation strategies are carried out. ⊚ ⊚

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7

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Leveraging Technology Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

16) According to COSO 2013, which of the following components of the enterprise risk management addresses an entity’s integrity and ethical values?

A) Information and communication.

B) Internal environment.

C) Risk assessment.

D) Control activities.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Leveraging Technology Source : CPA 2009 examination, adapted Topic : COSO Enterprise Risk Management (ERM) Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

17) Which of the following items is one of the eight components of COSO’s enterprise risk management 2004 framework?

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A) Operations.

B) Reporting.

C) Monitoring.

D) Compliance.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Source : CPA 2012 examination, adapted Topic : COSO Enterprise Risk Management (ERM) Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

18)

Which of the following represents an inherent risk for a financial institution?

A) Bank reconciliations are not performed on a timely basis.

B) The economy goes into a recession.

C) Customer credit check not performed.

D) An error occurs in a loan loss calculation.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Difficulty : 2 Medium Bloom's : Apply Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic Topic : COSO ERM Framework

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19)

Which of the following represents a control risk for a retail business?

A) Bank reconciliations are not performed on a timely basis.

B) Two employees are colluding to facilitate theft.

C) There are many competitors in the region.

D) A bank reconciliation is not performed correctly.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Apply Difficulty : 3 Hard Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic Topic : COSO ERM Framework

20)

Which of the following represents a residual risk for a services company?

A) Two employees are colluding to facilitate theft.

B) All checks require two signatures.

C) Bank accounts are reconciled weekly.

D) A manager reviews all account reconciliations.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Apply Difficulty : 3 Hard Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic Topic : COSO ERM Framework

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21) Which of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?

A) Disclosing lack of segregation of duties to external auditors during the annual review.

B) Replacing personnel every three or four years.

C) Requiring accountants to pass a yearly background check.

D) Providing greater management oversight of incompatible activities.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Source : CPA 2012 examination, adapted Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

22)

Review of the audit log is an example of which of the following types of security control?

A) Governance.

B) Detective.

C) Preventive.

D) Corrective.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Source : CPA 2012 examination, adapted Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

23)

Which of the following is not a component of internal control as defined by COSO?

A) Control environment.

B) Control activities.

C) Inherent risk.

D) Monitoring.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic Source : CPA 2013 examination, adapted

24)

Which of the following is considered an application input control?

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A) Run control total.

B) Edit check.

C) Reporting distribution log.

D) Exception report.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Source : CPA 2010 examination, adapted Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

25) Which of the following control activities should be taken to reduce the risk of incorrect processing in a newly installed computerized accounting system?

A) Segregation of duties.

B) Ensure proper authorization of transactions.

C) Adequately safeguard assets.

D) Independently verify the transactions.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy AICPA : FN Decision Making Topic : Control and Governance Frameworks Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic Source : COSO Internal Control Framework

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26)

Which of the following statement is correct regarding internal control?

A) A well-designed internal control environment ensures the achievement of an entity's control objectives.

B) An inherent limitation to internal control is the fact that controls can be circumvented by management override.

C) A well-designed and operated internal control environment should detect collusion perpetrated by two people.

D) Internal control in a necessary business function and should be designed and operated to detect errors and fraud.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic Source : CPA 2013 examination, adapted

27)

All of the following are the primary functions of internal controls except:

A) Prevention.

B) Reflection.

C) Detection.

D) Correction.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Decision Making Topic : Control and Governance Frameworks Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

28) A manufacturing firm identified that it would have difficulty sourcing raw materials locally, so it decided to relocate its production facilities. According to COSO, this decision represents which of the following response to the risk?

A) Risk reduction.

B) Prospect theory.

C) Risk sharing.

D) Risk acceptance.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Risk Analysis Source : CPA 2012 examination, adapted Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

29) Each of the following types of controls is considered to be an entity-level control, except those:

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A) Relating to the control environment.

B) Pertaining to the company's risk assessment process.

C) Regarding the company's annual stockholder meeting.

D) Addressing policies over significant risk management practices.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Risk Analysis Source : CPA 2011 examination, adapted Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

30) Controls in the information technology area are classified into preventive, detective, and corrective categories. Which of the following is preventive control?

A) Contingency planning.

B) Hash total.

C) Echo check.

D) Access control software.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Risk Analysis Source : CPA 2009 examination, adapted Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

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31)

All of the following are examples of internal control procedures except

A) Using pre-numbered documents B) Reconciling the bank statement C) Processing customer satisfaction surveys D) Insistence that employees take vacations

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Risk Analysis Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

32) The Public Company Accounting Oversight Board (PCAOB) is not responsible for standards related to:

A) Accounting practice.

B) Attestation.

C) Auditing.

D) Quality control over attestation and/or assurance.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

33)

Which of the following represents an application control for a customer sale?

A) The customer name must be populated.

B) Accounts are reconciled.

C) A manager reviews all return transactions.

D) Procedures are documented.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Difficulty : 2 Medium Bloom's : Apply Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

34)

According to COSO which of the following is not a component of internal control?

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A) Control risk.

B) Control activities.

C) Monitoring.

D) Control environment.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

35) The overall attitude and awareness of a firm's top management and board of directors concerning the importance of internal control is often reflected in its:

A) Computer-based controls.

B) System of segregation of duties.

C) Control environment.

D) Safeguards over access to assets.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

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36)

According to AS 5, control risk should be assessed in terms of A) Specific controls.

B) Types of potential fraud.

C) Financial statement assertions.

D) Control environment factors.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Bloom's : Understand Difficulty : 2 Medium Topic : COSO Enterprise Risk Management (ERM) Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

37) The framework to be used by management in its internal control assessment under requirements of SOX is the:

A) COSO internal control framework.

B) COSO enterprise risk management framework.

C) COBIT framework.

D) All of the choices are correct.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

38)

The internal control provisions of SOX apply to which companies in the United States?

A) All companies.

B) SEC registrants.

C) All issuer (public) companies and nonissuer (nonpublic) companies with more than $100,000,000 of net worth.

D) All nonissuer companies.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

39)

Reconciliation of cash accounts may be referred to as what type of control?

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A) Detective.

B) Preventive.

C) Adjustive.

D) Non-routine.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

40) Sound internal control dictates that immediately upon receiving checks from customers by mail, a responsible employee should A) Add the checks to the daily cash summary.

B) Verify that each check is supported by a pre-numbered sales invoice.

C) Prepare a summary listing of checks received.

D) Record the checks in the cash receipts journal.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Understand Difficulty : 2 Medium Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

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41)

Tracing shipping documents to pre-numbered sales invoices provides evidence that: A) No duplicate shipments or billings occurred.

B) Shipments to customers were properly invoiced.

C) All goods ordered by customers were shipped.

D) All pre-numbered sales invoices were accounted for.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Understand Difficulty : 2 Medium Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

42) A customer intended to order 100 units of a product A, but incorrectly ordered nonexistent product B. Which of the following controls most likely would detect this error?

A) Validity check B) Record count C) Hash total D) Parity check

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Understand Difficulty : 2 Medium Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

43)

Which of the following is an example of a validity check?

A) The computer ensures that a numerical amount in a record does not exceed some predetermined amount.

B) As the computer corrects errors and data are successfully resubmitted to the system, the causes of the errors are printed out.

C) The computer flags any transmission for which the control field value did not match that of an existing file record.

D) After data for a transaction are entered, the computer sends certain data back to the terminal for comparison with data originally sent.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Understand Difficulty : 2 Medium Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

44)

Which of the following is a component of COSO ERM 2017?

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A) Governance and culture.

B) Strategy and objective setting.

C) Performance.

D) Review and revision.

E) All of the choices are correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Understand Difficulty : 2 Medium Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

45)

Which of the following is not a component of COSO ERM 2017?

A) Information communication and reporting.

B) Strategy and objective setting.

C) Control activities.

D) Review and revision.

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Understand Difficulty : 2 Medium Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

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46)

Ethical principals are derived from all of the following except: A) Personal attitudes on issues of right and wrong.

B) Cost benefit analysis.

C) Cultural values.

D) Societal traditions.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Leveraging Technology Topic : The Need for a Code of Ethics AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

47)

Which of the following best describes why firms choose to create codes of ethics?

A) Because most people will not behave ethically without a written set of guidelines.

B) Codes of ethics protect firms against lawsuits that may be filed due to corporate

fraud.

C) They allow firms to create a formal set of expectations for employees who may have different sets of personal values.

D) Companies must have a written code of ethics in order to conduct interstate commerce in the U.S.

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Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Leveraging Technology Topic : The Need for a Code of Ethics AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

48)

Which of the following best describes what is meant by corporate governance?

A) The organizational structure and responsibilities of the executive team and board of directors of a corporation.

B) Regulatory bodies, such as the SEC and PCAOB, that govern the behavior of corporations.

C) The ability of a corporation’s management team to meet earnings forecasts over an extended period of time.

D) Management’s processes, policies, and ethical approach to safeguarding stakeholder interests.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Leveraging Technology Topic : Overview of Control Concepts AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

49) The Sarbanes-Oxley Act (SOX) was passed as a response to which of the following events?

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A) The savings & loan scandals of the 1980s.

B) The bust of dot-com bubble companies such as pets.com and Webvan.

C) Corporate reporting scandals by companies such as WorldCom, Enron, and Tyco.

D) Securities manipulation and insider trading in the 1930s.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Leveraging Technology Topic : The Need for a Code of Ethics Topic : Overview of Control Concepts AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

50) In a computerized environment, internal controls can be categorized into which of the following?

A) General controls and application controls.

B) Detective controls and protective controls.

C) Network controls and transaction controls.

D) Preventive controls and mandatory controls.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Leveraging Technology Topic : Overview of Control Concepts AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

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51) According to COSO ERM, which of the following is not one of the bases that should be used to analyze the risks of an identified event?

A) Inherent risk.

B) Organizational risk.

C) Residual risk.

D) Control risk.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Leveraging Technology Topic : COSO Enterprise Risk Management (ERM) Framework AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

52)

Which of the following is not one of the responses to risk presented in COSO ERM? A) Share the risk.

B) Accept the risk.

C) Eliminate the risk.

D) Reduce the risk.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Leveraging Technology Topic : COSO Enterprise Risk Management (ERM) Framework AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

53) If a Chief Technology Officer wanted to ensure a new system had appropriate processing controls which of the following would he/she require?

A) Disposal of excess documents.

B) URL Class diagram.

C) A record count.

D) Password management.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Leveraging Technology Topic : COSO Enterprise Risk Management (ERM) Framework AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

54) If a Chief Technology Officer wanted to ensure a new system had appropriate input controls which of the following would he/she require?

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A) Disposal of documents.

B) Access control.

C) Sequence checks.

D) URL Class diagram.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Leveraging Technology Topic : COSO Enterprise Risk Management (ERM) Framework AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

55) The COSO ERM framework encourages a review of risks as they apply to achieving firms’ objectives. Which of the following is not one of the listed categories of objectives to be considered?

A) Environment.

B) Operations.

C) Strategic.

D) Compliance.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Leveraging Technology Topic : COSO Enterprise Risk Management (ERM) Framework AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

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56) In the event identification component of the COSO ERM framework, management must classify events into which of the following?

A) Weaknesses and vulnerabilities.

B) Risks and opportunities.

C) Risks and rewards.

D) Controls and vulnerabilities.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo AICPA : FN Leveraging Technology Topic : COSO Enterprise Risk Management (ERM) Framework AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

57) COBIT framework takes the view that all IT processes should provide clear links between all of the following except: A) IT processes.

B) IT controls.

C) IT components.

D) IT governance requirements.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Leveraging Technology Learning Objective : 13-03 Describe the overall COBIT framework and its implications for IT governanc Topic : COBIT Framework AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

58) In addition to focusing on controls, COBIT 5 expands its scope by incorporating which of the following broad perpsectives?

A) How IT brings value to the firm.

B) How IT can automate specific business processess.

C) IT networking requirements.

D) IT cost reductions.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Leveraging Technology Learning Objective : 13-03 Describe the overall COBIT framework and its implications for IT governanc Topic : COBIT Framework AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

59) Which of the following is not one of the key COBIT 5 principles for governance and amangement of enterprise IT?

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A) Enabling a holistic approach.

B) Meeting stakeholder needs.

C) Separating management from shareholders.

D) Applying an integrated framework.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Leveraging Technology Learning Objective : 13-03 Describe the overall COBIT framework and its implications for IT governanc Topic : COBIT Framework AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

60) The IT Infrastructure Libarary (ITIL) is considered a de facto standard in which of the following regions?

A) Asia and Australia.

B) North America.

C) The UK. D) Europe.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Leveraging Technology Learning Objective : 13-04 Describe other governance frameworks related to information systems manage AACSB : Analytical Thinking AICPA : BB Leveraging Technology Topic : Information Technology Infrastructure Library Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

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61)

The ISO 27000 Series of standards are designed to address which of the following?

A) Corporate governance.

B) Internal controls.

C) Information security issues.

D) IT value.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Leveraging Technology Learning Objective : 13-04 Describe other governance frameworks related to information systems manage Topic : ISO 27000 Series AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

62) Which of the following provides the advantage of incorporating other widely accepted standards and frameworks?

A) ITIL. B) COBIT 2019.

C) COSO 2013.

D) ISO 27000.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Leveraging Technology Learning Objective : 13-04 Describe other governance frameworks related to information systems manage Topic : ISO 27000 Series AACSB : Analytical Thinking AICPA : BB Leveraging Technology Topic : Information Technology Infrastructure Library Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : automatic

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

63) What is the impact of the Sarbanes-Oxley Act of 2002 (SOX) on public companies and public accounting firms?

Question Details AACSB : Reflective Thinking AICPA : BB Industry Learning Objective : 13-01 Explain essential control concepts and why a code of ethics and internal c Source : Original AICPA : FN Decision Making Bloom's : Apply Difficulty : 3 Hard Topic : Overview of Control Concepts Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

64) Describe the three categories of objectives and five essential components of the COSO 2013 framework.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Understand Difficulty : 2 Medium Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

65)

What are the three main functions of COSO ERM?

Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Topic : COSO Enterprise Risk Management (ERM) Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

66) What are the definitions of “governance” and “management” in the COBIT 5.0 framework?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Reporting Source : Original Learning Objective : 13-03 Describe the overall COBIT framework and its implications for IT governanc Bloom's : Understand Difficulty : 2 Medium Topic : COBIT Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

67) Discuss the ethical values created in Starbucks. How do they help to form the firm’s control environment?

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Understand Difficulty : 2 Medium Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

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68) The information system of Company ABC is deemed to be 90% reliable. A major threat has been identified with an exposure of $5,000,000. Two control procedures exist to deal with the threat. Implementation of control A would cost $140,000 and reduce the risk to 4%.

Implementation of control B would cost $100,000 and reduce the risk to 6%. Implementation of both controls would cost $220,000 and reduce the risk to 2%. Given the data and based solely on an economic analysis of costs and benefits, which control procedure should you choose?

Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Apply Difficulty : 3 Hard Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

69) Which internal control(s) would you recommend to prevent the following situations from occurring?

1.While entering the details about a large credit sale, a clerk mistakenly typed in a nonexistent account number. Consequently, the company never received the payment from this customer.

2.A customer filled in a wrong account number on the remittance advice. Consequently, a clerk entered the same number into the system, and the payment was credited to another customer’s account.

3.After processing a large sales transaction, the inventory records showed negative quantities on hand for several items.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Source : Original AICPA : FN Decision Making Learning Objective : 13-02 Explain the objectives and components of the COSO internal control framewo Bloom's : Apply Difficulty : 3 Hard Topic : COSO Internal Control Framework Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

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Answer Key Test name: Chapter 13 1) FALSE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) FALSE 12) FALSE 13) TRUE 14) TRUE 15) TRUE 16) B 17) C 18) B 19) D 20) A 21) D 22) B 23) C 24) B 25) D 26) B Version 1

41

27) B 28) A 29) C 30) D 31) C 32) A 33) A 34) A 35) C 36) C 37) D 38) B 39) A 40) C 41) B 42) A 43) C 44) E 45) C 46) B 47) C 48) D 49) C 50) A 51) B 52) C 53) C 54) B 55) A 56) B Version 1

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57) C 58) A 59) C 60) D 61) C 62) B 63) SOX requires public companies registered with the SEC and their auditors to annually assess and report on the design and effectiveness of internal control over financial reporting.

SOX also established the Public Company Accounting Oversight Board (PCAOB) to provide independent oversight of public accounting firms. The PCAOB issues auditing standards and oversees quality controls of public accounting firms.

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64) Objectives: 1.1) Operations Objectives – effectiveness and efficiency of a firm’s operations on financial performance goals and safeguarding assets.

2.2) Reporting Objectives – reliability of reporting, including internal and external financial and non-financial reporting.

3.3) Compliance Objectives – adherence to applicable laws and regulations.

Five components of internal control: 1.1) Control Environment — include the management's philosophy and operating style, integrity and ethical values of employees, organizational structure, the role of the audit committee, proper board oversight for the development and performance of internal control, and personnel policies and practices.

2.2) Risk Assessment — Risk assessment involves a dynamic process for identifying and analyzing a firm’s risks from external and internal environments.

3.3) Control Activities — A firm must establish control policies, procedures, and practices that ensure the firm’s objectives are achieved and risk mitigation strategies are carried out.

4.4) Information and Communication — Relevant information should be identified, captured, and communicated in a form and timeframe that enables employees to carry out their duties.

5.5) Monitoring Activities — The design and effectiveness of internal controls should be monitored by management and other parties outside the process in an ongoing basis.

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65) ● Identifies potential events that may affect the firm ● Manages risk to be within the firm’s risk appetite ● Provides reasonable assurance regarding the achievement of the firm’s objectives.

66) COBIT 5.0 defines “governance” as ensuring that firm objectives are achieved by evaluating stakeholder needs; setting direction through decision making; and monitoring performance, compliance and progress.

In most firms, the board of directors is responsible for governance. Per COBIT 5, “management” includes planning, building, running and monitoring activities in alignment with the direction in achieving the firm objectives.

67) Students’ answers may vary.

68) Estimated value of control A: 5,000,000*(10%−4%)=$300,000 (problem states that Control A reduces the risk TO 4%) Estimated value of control B: 5,000,000*(10%−6%)=$200,000 (problem states that Control B reduced the risk TO 6%.)

Estimated value of control A&B: 5,000,000*(10%−2%)=$400,000 Benefits exceed cost of A: 300,000−140,000=160,000 Benefits exceed cost of B: 200,000−100,000=100,000 Benefits exceed cost of A&B: 400,000−220,000=180,000 Choose Controls A & B.

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69) a. While entering the details about a large credit sale, a clerk mistakenly typed in a nonexistent account number. Consequently, the company never received the payment from this customer.

Use Validity check for actual customer records. b. A customer filled in a wrong account number on the remittance advice. Consequently, a clerk entered the same number into the system, and the payment was credited to another customer’s account.

Use Closed-loop verification when entering customers’ account numbers. c. After processing a large sales transaction, the inventory records showed negative quantities on hand for several items.

Use sign check on quantity on hand.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The fraud triangle includes incentive, opportunity and an attitude to rationalize the fraud. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

2) The goal of information security management is to maintain confidentiality, integrity and availability of a firm's information. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-01 Describe the risks related to information security and systems integrity.

Topic : Information security and systems integrity Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

3) Encryption is a preventive control ensuring data confidentiality and privacy during transmission and for storage. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

4)

Asymmetric-key encryption is suitable for encrypting large data sets or messages. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

5) Key distribution and key management are problematic under the symmetric-key encryption. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

6)

The symmetric-key encryption method is used to authenticate users. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

7) A Certificate Authority (CA) issues digital certificates to bond the subscriber with a public key and a private key. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

8)

A company’s audit committee is solely responsible for fraud risk assessments. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

9) One type of fault tolerance is using redundant units to provide a system the ability to continue functioning when part of the system fails. ⊚ ⊚

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true false

4

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Topic : System Availability Topic : Disaster Recovery Planning and Business Continuity Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

10)

Disaster recovery planning and business continuity management are unrealted. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Topic : System Availability Topic : Disaster Recovery Planning and Business Continuity Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

11)

Information security is a critical factor in maintaining systems integrity. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-01 Describe the risks related to information security and systems integrity.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

12) The goal of information security management is to enhance the confidence, integrity and authority (CIA) of a firm's information. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-01 Describe the risks related to information security and systems integrity.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

13) A Trojan Horse is a self-replicating, self-propagating, self-contained program that uses networking mechanisms to spread itself. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-01 Describe the risks related to information security and systems integrity.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

14) files.

Spam is a self-replicating program that runs and spreads by modifying other programs or ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-01 Describe the risks related to information security and systems integrity.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

15)

Encryption and hashing are similar process to maintain data confidentiality. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

16)

Hashing process can be reversed and it is used for maintaining data confidentiality. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

17) When using asymmetric encryption algorithm, for two trading parties to conduct ebusiness, they need to use two keys. ⊚ ⊚

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true false

8

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

18) Symmetric-key encryption is rarely used today due to key distribution and key management issues. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

19) Most companies use both symmetric-key and asymmetric-key encryption methods when conducting e-business. ⊚ ⊚

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true false

9

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

20)

The purpose of using a digital signature is for authentication. ⊚ ⊚

true false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

21) In general, the goal of information security management is to protect all of the following except: A) Confidentiality.

B) Integrity.

C) Availability.

D) Redundancy.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-01 Describe the risks related to information security and systems integrity.

Topic : Information security and systems integrity Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

22)

Which of the following statements is incorrect about digital signatures?

A) A digital signature can ensure data integrity.

B) A digital signature also authenticates the document creator.

C) A digital signature is an encrypted message digest.

D) A digital signature is a message digest encrypted using the document creator's public

key.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Systems Integrity and Information Security Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

23)

What is the primary objective of data security controls?

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A) To establish a framework for controlling the design, security, and use of computer programs throughout an organization.

B) To ensure that data storage media are subject to authorization prior to access, change, or destruction.

C) To formalize standard, rules, and procedures to ensure the organization's control are properly executed.

D) To monitor the use of system software to prevent unauthorized access to system software and computer programs.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Source : CPA 2011 Examination, adapted Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

24) An entity doing business on the internet most likely could use any of the following methods to prevent unauthorized intruders from accessing proprietary information except: A) Password management.

B) Data encryption.

C) Digital certificates.

D) Batch processing.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Source : CPA 2010 Examination, adapted Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

25) When client's accounts payable computer system was relocated, the administrator provided support through a dial-up connection to server. Subsequently, the administrator left the company. No changes were made to the accounts payable system at that time. Which of the following situations represents the greatest security risk?

A) User passwords are not required to the in alpha-numeric format.

B) Management procedures for user accounts are not documented.

C) User accounts are not removed upon termination of employees.

D) Security logs are not periodically reviewed for violations.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Bloom's : Understand Difficulty : 2 Medium Source : CPA 2010 Examination, adapted Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

26) An information technology director collected the names and locations of key vendors, current hardware configuration, names of team members, and an alternative processing location.

What is the director most likely preparing?

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A) Data restoration plan.

B) Disaster recovery plan.

C) System security policy.

D) System hardware policy.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Source : CPA 2009 Examination, adapted Topic : Disaster Recovery Planning and Business Continuity Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

27) Bacchus, Inc. is a large multinational corporation with various business units around the world. After a fire destroyed the corporation headquarters and largest manufacturing site, plans for which of the following would help Bacchus ensure a timely recovery?

A) Daily backup.

B) Network security.

C) Business continuity.

D) Backup power.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Source : CPA 2009 Examination, adapted Topic : Disaster Recovery Planning and Business Continuity Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

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28) Which of the following statements regarding authentication in conducting e-business is incorrect?

A) It is a process that establishes the origin of information or determines the identity of a user, process, or device.

B) Only one key is used for encryption and decryption purposes in the authentication process.

C) Successful authentication can prevent repudiation in electronic transactions.

D) We need to use asymmetric-key encryption to authenticate the sender of a document or data set.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 14-01 Describe the risks related to information security and systems integrity.

Bloom's : Understand Difficulty : 2 Medium Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

29) Which of the following is not included in the remediation phase for vulnerability management?

A) Risk Response Plan.

B) Policy and procedures for remediation.

C) Vulnerability Prioritization.

D) Control Implementation.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

30)

Which of the following does not represent a viable data backup method?

A) Disaster recovery plan.

B) Redundant arrays of independent drives.

C) Virtualization.

D) Cloud computing.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Topic : Disaster Recovery Planning and Business Continuity Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

31)

Which of the following statements about asymmetric-key encryption is correct?

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A) When using asymmetric-key encryption method, a total of two keys are necessary in electronic communication between two parties.

B) Employees in the same company share the same public key.

C) Most companies would like to manage the private keys for their employees.

D) Most companies would like to use a Certificate Authority to manage the public keys of their employees.

E) Two of the above are correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Bloom's : Apply Difficulty : 3 Hard Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

32)

Which of the following statements is incorrect?

A) A fraud prevention program starts with a fraud risk assessment across the entire firm B) The audit committee typically has an oversight role in risk assessment process C) Communicating a firm's policy file to employees is one of the most important responsibilities of management D) A fraud prevention program should include an evaluation on the efficiency of business processes.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

33)

A disaster recovery approach should include which of the following elements?

A) Encryption.

B) Firewalls.

C) Regular backups.

D) Surge protectors.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Topic : Disaster Recovery Planning and Business Continuity Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

34)

Which of the following is a password security weakness?

A) Users are assigned passwords when accounts are created, but do not change them.

B) Users have accounts on several systems with different passwords.

C) Users write down their passwords on a note paper, and carry it with them.

D) Users select passwords that are not part of an online password dictionary.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

35) To prevent invalid data input, a bank added an extra number at the end of each account number and subjected the new number to an algorithm. This technique is known as: A) A validation check.

B) check digit verification.

C) A dependency check.

D) A format check.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

36) Why do Certificate Authority (CA) play an important role in a company's information security management?

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A) Using a CA is required by SOX in managing information security.

B) A CA is responsible to generate session keys for encryption purposes.

C) Most companies use CA to manage their employees’ public keys.

D) CA creates and maintains both the public and private keys for a company’s employees.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Systems Integrity and Information Security Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

37) 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.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

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38) Which of the following controls would most likely assure that a company can reconstruct its financial records?

A) Security controls such as firewalls.

B) Backup data are tested and stored safely.

C) Personnel understand the data very well.

D) Paper records.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

39)

Why would companies want to use digital signatures when conducting e-business?

A) They are cheap.

B) They are always the same so it can be verified easily.

C) They are more convenient than requiring a real signature.

D) They can authenticate the document sender and maintain data integrity.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

40)

Select a correct statement regarding encryption methods?

A) To use symmetric-key encryption, each user needs two different keys.

B) Most companies prefer using symmetric-key encryption than asymmetric-key encryption method.

C) Both symmetric-key and asymmetric-key encryption methods require the involvement of a certificate authority.

D) When conducting e-business, most companies use both symmetric-key and asymmetric-key encryption methods.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

41)

Select a correct statement regarding a hashing process.

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A) It is reversible.

B) The outcome is a message digest.

C) It is not necessary to use a hashing process in creating a digital signature.

D) It is used for authentication.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

42) Which of the following IT controls would best prevent a developer from inappropriately accessing the system?

A) Forced password changes.

B) Secondary code review.

C) Symmetric encryption.

D) Lack of authentication.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

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43) Which of the following IT controls would best prevent a currency trader from concealing his/her trading errors?

A) End user access to source code.

B) Multifactor authentication.

C) Symmetric encryption.

D) Use of a private key.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse

44)

Which of the following is not an example of a physical security vulnerability?

A) Unescorted visitors on the premises.

B) Poor choice of passwords.

C) Lack of a smoke detector in the room housing servers.

D) Lack of disaster recovery plan.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

45) Which of the following is not an example of vulnerability within the process of IT operations?

A) Software not patched.

B) Inappropriate data classification.

C) Ineffective training.

D) Poor firewall rules.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

46) Which of the following is not an example of a vulnerability within an Information System?

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A) Outdated intrusion detection/prevention system.

B) Lack of a disaster recovery plan.

C) Improper system configuration.

D) Failure to audit and terminate unused accounts in a timely manner.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

47) What could result from the failure to audit and terminate unused accounts in a timely manner?

A) A disgruntled employee may send out phishing emails.

B) A SOC 1 report will be generated.

C) Computer hardware may be taken off premises.

D) A disgruntled employee may tamper with company applications.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Difficulty : 1 Easy Source : Original Bloom's : Understand Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation

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48) Which of the following describes the primary goals of the CIA approach to information security management?

A) Controls, Innovation, Analysis.

B) Confidentiality, Integrity, Availability.

C) Convenience, Integrity, Awareness.

D) Confidentiality, Innovation, Availability.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-01 Describe the risks related to information security and systems integrity.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

49) Which of the following is not one of the common techniques for information security risks and attacks?

A) Spam.

B) Botnet.

C) TraceRT. D) Social Engineering.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-01 Describe the risks related to information security and systems integrity.

Topic : Systems Integrity and Information Security Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

50)

Encryption is a control that changes plain text into which of the following?

A) Cyberspace.

B) Cryptext.

C) Mnemonic code.

D) Cyphertext.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

51) Asymmetric-key encryption uses which of the following techniques to allow users to communicate securely?

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A) A message digest.

B) A 16-bit encryption key.

C) A public key and a private key.

D) A digital signature.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

52)

A Public Key Infrastructure (PKI) provides the ability to do which of the following?

A) Encrypt messages using a private key.

B) Enable debit and credit card transactions.

C) Read plaintext.

D) Issue, maintain, and revoke digital certificates.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Systems Integrity and Information Security Topic : Encryption and Authentication Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

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53)

Which of the following best illustrates the use of multifactor authentication?

A) Requiring password changes every 30, 60, or 90 days.

B) Requiring the use of a smart card and a password.

C) Requiring the use of upper case, lower case, numeric, and special characters for a password.

D) The use of a fingerprint scanner for access to a device.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

54) Both ISACA and the GTAG define vulnerability. Which of the following does not represent one of these definitions?

A) The nature of IT resources that can be exploited by a threat to cause damage.

B) An organizations’ exposure to disaster.

C) Weaknesses or exposures in IT assets that may lead to business, compliance, or security risk.

D) All of the other items represent the definitions of vulnerability stated by ISACA and the GTAG.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

55) Which of the following statements is true regarding risk management and vulnerability management?

A) They both have the objective of reducing the likelihood that detrimental events occur.

B) Risk management is often conducted using an IT asset-based approach.

C) Vulnerability management is more complex and strategic.

D) Both approaches involve processes that typically take many months or years to complete.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

56) Which of the following describes the recommended prerequisites for managing vulnerabilities?

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A) Implement the COSO ERM framework, and identify key vulnerabilities.

B) Determine the main objective of vulnerability management, and assign roles and responsibilities.

C) Identify the key vulnerabilities, and implement appropriate controls to minimize the vulnerabilities.

D) Implement suitable controls, and assess those controls for potential vulnerabilities.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

57) Which of the following is not one of the main components of vulnerability management and assessment?

A) Identification.

B) Remediation.

C) Internalization.

D) Maintenance.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

58) For businesses considering a cloud computing solution, which of the following should they ask the cloud vendor to provide before entering into a contract for critical business operations?

A) FASB 51 Report.

B) Audit Report.

C) SAS 3 Report.

D) SOC 2 Report.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Topic : Disaster Recovery Planning and Business Continuity Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

59) Which of the following statements is most accurate with regard to business continuity management (BCM) and disaster recovery planning (DRP)?

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A) DRP is an important component of BCM. B) BCM and DRP should be considered independently of each other.

C) BCM is an important component of DRP. D) DRP should be considered as optional, while BCM should be considered as necessary.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Topic : Disaster Recovery Planning and Business Continuity Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

60)

A RAID array implemented in a data center is an example of which of the following?

A) Virtualization.

B) Uninterruptible power supply.

C) Fault tolerance.

D) SOC 3.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Topic : Disaster Recovery Planning and Business Continuity Management Gradable : automatic Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation AACSB : Analytical Thinking AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

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SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

61) A magnetic tape used to store data backups was lost while it was being transported to an offsite storage location. The data on the tape includes customers’ credit card and personal information. Which preventive control(s) should have been used to minimize the potential loss?

Question Details AACSB : Reflective Thinking AICPA : BB Industry Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Bloom's : Apply Difficulty : 3 Hard Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse AICPA : FN Leveraging Technology Gradable : manual

62) List the following steps regarding computer fraud risk assessments in sequence.

1.(a) Assessing the likelihood and business impact of a control failure and/or a fraud incident.

2.(b) Mapping existing controls to potential fraud schemes and identifying gaps.

3.(c) Identifying potential IT fraud schemes and prioritizing them based on likelihood and impact.

4.(d) Identifying relevant IT fraud risk factors.

5.(e) Testing operating effectiveness of fraud prevention and detection controls.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Learning Objective : 14-03 Describe computer fraud and misuse of AIS and corresponding risk-mitigatio Source : Original Bloom's : Apply Difficulty : 3 Hard Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Topic : Computer Fraud and Abuse AICPA : FN Leveraging Technology Gradable : manual

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

63) Describe the process of using asymmetric-key encryption to authenticate the trading partner involved in e-business.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Bloom's : Apply Difficulty : 3 Hard Topic : Encryption and Authentication Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

64)

What are the two prerequisites for vulnerability management?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

65)

Describe the framework for vulnerability assessment and vulnerability management.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-04 Define vulnerabilities, and explain how to manage and assess vulnerabiliti Topic : Vulnerability Assessment and Management Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

66) What are included in disaster recovery planning and business continuity management?

Are these concepts related?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-05 Explain issues in system availability, disaster recovery, and business con Topic : Disaster Recovery Planning and Business Continuity Management Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

67) What is a digital signature? How could a digital signature ensure data integrity when conducting e-business?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Decision Making Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 14-02 Understand the concepts of encryption and authentication.

Topic : Encryption and Authentication Accessibility : Screen Reader Compatible Accessibility : Keyboard Navigation Gradable : manual

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Answer Key Test name: Chapter 14 1) TRUE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) TRUE 10) FALSE 11) TRUE 12) FALSE 13) FALSE 14) FALSE 15) FALSE 16) FALSE 17) FALSE 18) FALSE 19) TRUE 20) FALSE 21) D 22) D 23) B 24) D 25) C 26) B Version 1

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27) C 28) B 29) C 30) A 31) D 32) D 33) C 34) A 35) B 36) C 37) B 38) B 39) D 40) D 41) B 42) B 43) A 44) B 45) A 46) B 47) D 48) B 49) C 50) D 51) C 52) D 53) B 54) B 55) A 56) B Version 1

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57) C 58) D 59) A 60) C 61) The tape needs to be encrypted and password protected.

62) d, c, b, e, a 63) To authenticate a trading partner (TP), the contact person (CP) of a company sends a challenge message to TP. TP uses her private key to encrypt the challenge message and send it to CP. If CP is able to use TP’s public key to decrypt and get the plaintext of the challenge message, CP has authenticated TP successfully.

64) First, determine the main objectives of its vulnerability management.

In some case, the firm should determine which laws, regulations, and standards it should comply with. Second, a firm should assign roles and responsibilities for vulnerability management. The management may designate a team to be responsible for developing and implementing the vulnerability management program.

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65) The components of vulnerability assessment include identification and risk assessment. ● Identification process: identifying all critical IT assets, threats and vulnerabilities. ● Risk assessment process: assessing vulnerabilities and prioritizing vulnerability issues.

The components of vulnerability management include remediation and maintenance. ● Remediation process: making a risk response plan, preparing the policy and requirements for remediation, as well as control implementation. ● Maintenance: monitoring, ongoing assessment and continuous improvement.

66) Disaster recovery planning (DRP) must include a clearly defined and documented plan that covers key personnel, resources including IT infrastructure and applications, and actions required to be carried out in order to continue or resume the systems for critical business functions within planned levels of disruption. Business continuity management (BCM) includes the activities required to keep a firm running during a period of displacement or interruption of normal operations. DRP is a key component of the BCM. BCM is broader than DRP and is concerned about the entire business processes rather than particular assets, such as IT infrastructure and applications.

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67) Digital signature is a message digest (MD) of a document (or data file) that is encrypted using the document creator’s private key.

1.1) Both the sender (A) and receiver (B) use an asymmetric-key encryption method to authenticate each other.

2.2) Sender A makes a copy of the document and uses SHA-256 to hash the copy and get an MD. 3.3) Sender A encrypts the MD using Sender A’s private key to get Sender A’s digital signature.

4.4) Sender A uses Receiver B’s public key to encrypt the original document and Sender A’s digital signature (for confidentiality).

5.5) Sender A sends the encrypted package to Receiver B. 6.6) Receiver B receives the package and decrypts it using Receiver B’s private key. Receiver B now has the document and Sender A’s digital signature.

7.7) Receiver B decrypts Sender A’s digital signature using Sender A’s public key to get the sent-over MD. Receiver B also authenticates that Sender A is the document creator.

8.8) Receiver B makes a copy of the received document and uses SHA-256 to hash the copy and get a calculated MD. 9.9) If the sent-over MD is the same as the calculated MD, Receiver B ensures data integrity.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Data mining is the process of searching for patterns in the data in a data warehouse and to analyze the patterns for decision making. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

2)

The data in a data warehouse are updated when transactions are processed. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

3) Parallel simulation uses an independent program to simulate a part of an existing application program, and is designed to test the validity and to verify the accuracy of an existing application program. ⊚ true ⊚ false Version 1

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

4) Data governance is the convergence of data quality, data management, data policies, business process management, and risk management surrounding the handling of data in a company. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software AICPA : FN Decision Making Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

5) Computer-assisted audit techniques (CAAT) are often used when auditing a company's IT infrastructure. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Source : Original AICPA : FN Decision Making Learning Objective : 15-02 Understand and apply computer-assisted audit techniques.

Gradable : automatic Topic : Computer-Assisted Audit Techniques Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

6) Firewalls are security systems comprised of hardware and software that is built using routers, servers, and a variety of software. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

7) The Generally Accepted Auditing Standards (GAAS) issued by PCAOB provide guidelines for conducting an IS/IT audit. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

8) A Virtual private network (VPN) is a private network, provided by a third party, for exchanging information through a high capacity connection. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

9) A wireless network is comprised of access points and stations. Access points logically connect stations to a firm’s network. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

10) An Integrated test facility (ITF) is an automated technique that enables test data to be continually evaluated during the normal operation of a system. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

11) Accountants increasingly participate in designing internal controls and improving business and IT processes in a database environment. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software AICPA : FN Decision Making Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

12) A data warehouse is for daily operations and often includes data for the current fiscal year only. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

13)

Parallel simulation attempts to simulate the firm's key features or processes. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

14) An embedded audit module is a programmed audit module that is added to the system under review. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

15) A continuous audit allows companies to perform audit-related activities on a continuous basis. ⊚ ⊚

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

16) Which of the following is not an approach used for online analytical processing (OLAP)?

A) Exception reports.

B) What-if simulations.

C) Consolidation.

D) Data mining.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

17)

The purpose of a company's firewall is to:

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A) Guard against spoofing.

B) What-if simulations.

C) Deny computer hackers access to sensitive data.

D) All of the choices are correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

18)

Which of the statements regarding a data warehouse is incorrect?

A) It is a centralized collection of firm-wide data.

B) The purpose of a data warehouse is to provide a rich data set for management to identify patterns and to examine trends of business events.

C) Includes data for the current fiscal year only.

D) The data in a data warehouse is pulled from each of the operational databases periodically.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

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19)

Which of the following statements about switches is correct?

A) A hub is smarter than Switch.

B) Switches provide more security protections than hubs do for a company's internal network.

C) Switches are widely used in WANs. D) A Switch contains multiple ports.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

20) Which of the following describes a group of computers that connects the internal users of a company distributed over an office building?

A) Internet.

B) LAN. C) Virtual private network (VPN).

D) Decentralized network.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

21)

Which of the following is not a management control for wireless networks?

A) Assigning roles and responsibilities of employees for access control.

B) Conducting risk assessment on a regular basis.

C) Conducting appropriate awareness training on wireless networks.

D) Creating policies and procedures.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

22)

What is the man-in-the-middle threat for wireless LANs?

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A) The attacker impersonates an authorized user and gains certain unauthorized privileges to the wireless network.

B) The attacker passively monitors wireless networks for data, including authentication credentials.

C) The attacker steals or makes unauthorized use of a service.

D) The attacker actively intercepts communications between wireless clients and access points to obtain authentication credentials and data.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

23) Which of the following statements regarding the black-box approach for systems auditing is correct?

A) The auditors need to gain detailed knowledge of the systems' internal logic.

B) The black-box approach could be adequate when automated systems applications are complicated.

C) The auditors first calculate expected results from the transactions entered into the system. Then, the auditors compare these calculations to the processing or output results.

D) All of the choices are correct.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

24) Which of the following is a key reason an operating system is the most important system software?

A) It is the centralized collection of firmwide data.

B) It manages computer-assisted audit techniques (CAATs).

C) It manages interfaces with the computer.

D) None of the choices are correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

25)

What is the test data technique?

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A) It uses a set of input data to validate system integrity.

B) It requires auditors to prepare both valid and invalid data to examine critical logics and controls of the system.

C) It is an automated technique that enables test data to be continually evaluated during the normal operation of a system.

D) "It uses a set of input data to validate system integrity" and "It requires auditors to prepare both valid and invalid data to examine critical logics and controls of the system" are correct.

E) None of the choices are correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

26)

Within a WAN, a router would perform which of the following functions?

A) Provide the communication within the network.

B) Select network pathways within a network for the flow of data packets.

C) Amplify and rebroadcast signals in a network.

D) Forward data packets to their internal network destination.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

27) Which of the following strategies will a CPA most likely consider in auditing an entity that processes most of its financial data only in electronic form, such as a paperless system?

A) Continuous monitoring and analysis of transaction processing with an embedded audit module.

B) Increased reliance on internal control activities that emphasize the segregation of duties.

C) Verification of encrypted digital certificates used to monitor the authorization of transactions.

D) Extensive testing of firewall boundaries that restrict the recording of outside network traffic.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Source : CPA examination, adapted Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

28) An auditor reviewing the risks associated with a firm’s Wide area network (WAN) should pay particular attention to which of the following?

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A) Operating systems.

B) Computer-assisted auditing techniques (CAATs).

C) Segregation of duties.

D) Routers and firewalls.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

29) The results of a generalized audit software simulation of the aging of accounts receivable revealed substantial differences in the aging contribution, even though grand totals reconciled.

Which of the following should the IS auditor do first to resolve the discrepancy?

A) Recreate the test, using different software.

B) List a sample of actual data to verify the accuracy of the test program.

C) Ignore the discrepancy because the grand totals reconcile and instruct the controller to correct the program.

D) Create test transactions and run test data on both the production and simulation program.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Source : CISA examination, adapted Gradable : automatic Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

30) An auditor should be most concerned about which of the following when reviewing the risks of a company’s wireless network: A) Confidentiality.

B) Integrity.

C) Availability.

D) All of the choices are correct.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

31)

Which statements are incorrect about virtual private network (VPN)?

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A) It is a way to use the public telecommunication infrastructure in providing secure access to an organization’s network.

B) It enables the employees to work remotely by accessing their firm’s network securely using the Internet.

C) The packets sent through VPN are encrypted and with authentication technology.

D) The VPN model requires leased lines.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

32)

LAN is the abbreviation for: A) Large Area Network.

B) Local Area Network.

C) Longitudinal Analogue Network.

D) Low Analytical Nets.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

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33) 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.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

34) Which of the following statements regarding the purposes of an operating system is correct?

A) To ensure the integrity of a system.

B) To control the flow of multiprogramming and tasks of scheduling in the computer.

C) To allocate computer resources to users and applications.

D) All of the choices are correct.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

35)

Which of the following is not a benefit of using wireless technology?

A) Mobility.

B) Rapid deployment.

C) Flexibility and Scalability.

D) Security.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

36)

The masquerading threat for wireless LANs is:

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A) The attacker actively intercepts communications between wireless clients and access points to obtain authentication credentials and data.

B) The attacker alters a legitimate message sent via wireless networks by deleting, adding to, changing, or reordering it.

C) The attacker passively monitors wireless networks for data, including authentication credentials.

D) The attacker impersonates an authorized user and gains certain unauthorized privileges to the wireless network.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

37) Most threats involving a wireless local area network (LAN) involve which of the following?

A) The attacker has access to the operating system.

B) The attacker has access to the radio link between a station and an access point.

C) The attacker has accessed the premises of the company.

D) The attacker has access to the virtual private network (VPN).

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

38)

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) Automated generation of final audit report.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-02 Understand and apply computer-assisted audit techniques.

Gradable : automatic Topic : Computer-Assisted Audit Techniques Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

39) Which type of audit test would utilize the computer-assisted audit technique (CAATs) white-box approach?

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A) Test hubs and switches.

B) Compare expected results to output results.

C) User acceptance testing.

D) Insertion of test transactions.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-02 Understand and apply computer-assisted audit techniques.

Gradable : automatic Topic : Computer-Assisted Audit Techniques Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

40)

Which of the following statements about firewalls is wrong?

A) A firewall is a security system comprised of hardware and software that is built using routers, servers, and a variety of software.

B) A firewall allows individuals on the corporate network to send and receive data packets from the Internet.

C) A firewall can filter through packets coming from outside networks to prevent unauthorized access.

D) A firewall connects different LANs, software-based intelligent devices, and examines IP addresses.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

41) One control objective for an operating system is that it must be protected from itself.

Which of the following statements best explains this concept?

A) The operating system should be able to gracefully terminate activities, and later recover to its previous state.

B) No operating system module should be allowed to corrupt or destroy another operating system module.

C) User applications must not be allowed to gain control of or damage the operating system.

D) The operating system must be able to prevent unauthorized users from accessing, corrupting, or destroying other users’ data.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

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42) IT governance over operating systems includes establishing proper policies and procedures. These policies and procedures over operating systems should cover all of the following except:

A) Which computing hardware to use.

B) Who can access the operating system.

C) Which actions users can take.

D) Which resources users can use.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

43) Accounting professionals should understand database systems for all of the following reasons except: A) Accountants have a strong understanding of risks, controls and business processes.

B) Accountants increasingly participate in creating internal control systems.

C) Accountants typically manage organizations’ operational databases.

D) Accountants frequently help improve business and IT processes.

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Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

44)

Which of the following is an example of using the test data technique?

A) Create a statistical data sample.

B) Embed an audit module in the source system.

C) Reprocessing actual data.

D) Input both valid and invalid transactions.

Question Details AICPA : FN Leveraging Technology Difficulty : 1 Easy Source : Original Bloom's : Understand Learning Objective : 15-02 Understand and apply computer-assisted audit techniques.

Gradable : automatic Topic : Computer-Assisted Audit Techniques AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

45)

Which of the following tool advancements has made continuous auditing more feasable?

A) COBIT. B) XBRL. C) OLAP. D) VPN.

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Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

46)

Which of the following uses best describes the use of a VPN?

A) Connect computers, printers, and file servers in an office building.

B) Lease dedicated communication lines to guarantee connection performance between remote office locations.

C) Allow employees traveling for business to connect to home office computing resources.

D) Allocates computing resources among multiple processors and operating systems.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

47)

Which of the following is not one of the benefits of using a wireless network?

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A) Flexibility and scalability.

B) Mobility.

C) Greater security.

D) Rapid deployment.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

48) Which of the following is not one of the categories of security controls for wireless networks?

A) Operational controls.

B) Application controls.

C) Management controls.

D) Technical controls.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

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49) Which of the following is not one of the reasons auditors should consider the use of CAATs? A) ISACA standards require IS auditors to obtain sufficient, reliable, and relevant evidence, and should perform appropriate analysis of this evidence.

B) GAAP stipulates that audits should be performed using tools and techniques appropriate to the evidence being reviewed.

C) The IIA professional practices state that auditor must consider the use of technologybased auditing tools when conducting audits.

D) GAAS requires auditors to gather sufficient and appropriate evidence in the course of audit field work.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-02 Understand and apply computer-assisted audit techniques.

Gradable : automatic Topic : Computer-Assisted Audit Techniques AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

50)

CAATs are commonly used in all of the following situations except: A) Transaction testing.

B) Network penetration testing.

C) Encryption testing.

D) Operating system vulnerability assessments.

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Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-02 Understand and apply computer-assisted audit techniques.

Gradable : automatic Topic : Computer-Assisted Audit Techniques AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

51)

Which of the following is not considered one of the primary CAAT approaches?

A) The black-box approach.

B) Encryption testing.

C) Auditing through the computer.

D) The white-box approach.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-02 Understand and apply computer-assisted audit techniques.

Gradable : automatic Topic : Computer-Assisted Audit Techniques AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

52) Which of the following approaches and/or tools are not typically used as part of a CAAT approach to auditing?

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A) Integrated testing facility (ITF).

B) Generalized audit software (GAS).

C) Audit calculation engine (ACE).

D) Embedded audit module (EAM).

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-02 Understand and apply computer-assisted audit techniques.

Gradable : automatic Topic : Computer-Assisted Audit Techniques AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible

53)

Which of the following would not assist in continuous auditing?

A) Transactions can be tested and analyzed closer in time to when they actually occur.

B) Better compliance with laws and regulations.

C) It can reduce the effort required for routine testing.

D) It can be costly and time consuming to set up continuous auditing processes.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

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54)

Which of the following best describes continuous auditing?

A) Audit-related activities are peformed throughout the period under review.

B) The full audit team remains on the client site for the entire fiscal year.

C) The database extracts every 10th transaction and flags it for audit review.

D) Auditors can generate greater fees by increasing the amount of manual testing performed for the client.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

55)

ACL and IDEA are two prominent examples of which of the following?

A) ITF. B) GAS. C) EAM. D) DBMS.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

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56)

Which of the following is not a use of generalized audit software (GAS)?

A) Substantive testing.

B) Security testing.

C) Control testing.

D) Transaction data analysis.

Question Details AICPA : FN Leveraging Technology Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

57) If an auditor wanted to test the accuracy of a computer generated report they might use which of the the following approaches?

A) An access point approach.

B) The black-box approach.

C) A continuous audit.

D) A pentration test.

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Question Details AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Gradable : automatic AACSB : Analytical Thinking AICPA : BB Leveraging Technology Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible

58)

Identify which fundamental control objective belongs with the following statement:

“No module should be allowed to destroy or corrupt another module.”

A) Protect the operating system from users.

B) The operating system must protect users from each other.

C) The operating system must be protected from itself.

D) The operating system must be protected from its environment.

E) The operating system must protect users from themselves.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard

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59)

Identify which fundamental control objective belongs with the following statement:

“In the event of a power failure or other disaster, the operating system should be able to achieve a controlled termination of activities from which it can later recover.”

A) Protect the operating system from users.

B) The operating system must protect users from each other.

C) The operating system must be protected from itself.

D) The operating system must be protected from its environment.

E) The operating system must protect users from themselves.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard

60)

Identify which fundamental control objective belongs with the following statement:

“A user’s application may consist of several modules stored in separate memory locations, each with its own data. One module must not be allowed to destroy or corrupt another module.”

A) Protect the operating system from users.

B) The operating system must protect users from each other.

C) The operating system must be protected from itself.

D) The operating system must be protected from its environment.

E) The operating system must protect users from themselves.

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard

61)

Identify which fundamental control objective belongs with the following statement:

“User applications must not be able to gain control of or damage the operating system.”

A) Protect the operating system from users.

B) The operating system must protect users from each other.

C) The operating system must be protected from itself.

D) The operating system must be protected from its environment.

E) The operating system must protect users from themselves.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard

62)

Identify which fundamental control objective belongs with the following statement:

“One user must not be able to access, destroy, or corrupt the data or programs of another user.”

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A) Protect the operating system from users.

B) The operating system must protect users from each other.

C) The operating system must be protected from itself.

D) The operating system must be protected from its environment.

E) The operating system must protect users from themselves.

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard

63) Categorize the following scenario below as management, operational, or technical controls for wireless networks’ security controls.

"Providing regular updates in organizational policies and procedures to employees.”

A) Operational controls B) Technical Controls C) Management Controls

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard

64) Categorize the following scenario below as management, operational, or technical controls for wireless networks’ security controls.

“Configuring all access points with encryption.”

A) Operational controls B) Technical Controls C) Management Controls

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard

65) Categorize the following scenario below as management, operational, or technical controls for wireless networks’ security control.

“Deciding how transmissions over wireless networks should be protected.”

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A) Operational controls B) Technical Controls C) Management Controls

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard

66) Categorize the following scenario below as management, operational, or technical controls for wireless networks’ security controls.

“Conducting risk assessment on a regular basis.”

A) Operational controls B) Technical Controls C) Management Controls

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Gradable : automatic Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard

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ESSAY. Write your answer in the space provided or on a separate sheet of paper.

67) What are the two approaches of CAATs in auditing systems? What are the differences between them?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-02 Understand and apply computer-assisted audit techniques.

Topic : Computer-Assisted Audit Techniques Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : manual

68) What are the differences between LANs and WANs? Have you ever used any LANs and WANS?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : manual

69)

What are the general security objectives for both wired LANs and wireless LANs?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : manual

70)

What are the benefits of conducting continuous audits (or monitoring)?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible Gradable : manual

71) Discuss five significant barriers that are often encountered in implementing continuous auditing?

Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 15-03 Explain continuous monitoring and continuous auditing in AIS. Accessibility : Keyboard Navigation Topic : Continuous Monitoring and Continuous Auditing Accessibility : Screen Reader Compatible Gradable : manual

72) List common security threats for wireless LANs. Find a specific case in which the security of wireless LANs was threatened. Given the case you find, comment on how to prevent or mitigate the threats?

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Question Details AACSB : Reflective Thinking AICPA : BB Industry AICPA : FN Leveraging Technology Learning Objective : 15-01 Understand the risks involved with computer hardware and software.

Source : Original Topic : Computer Hardware and Software Accessibility : Keyboard Navigation Bloom's : Apply Accessibility : Screen Reader Compatible Difficulty : 3 Hard Gradable : manual

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Answer Key Test name: Chapter 15 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) TRUE 12) FALSE 13) TRUE 14) TRUE 15) TRUE 16) D 17) D 18) C 19) B 20) B 21) C 22) D 23) C 24) C 25) D 26) B Version 1

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27) A 28) D 29) B 30) D 31) D 32) B 33) A 34) D 35) D 36) D 37) B 38) D 39) D 40) D 41) B 42) A 43) C 44) D 45) B 46) C 47) C 48) B 49) B 50) C 51) B 52) C 53) D 54) A 55) B 56) B Version 1

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57) B 58) C 59) D 60) E 61) A 62) B 63) A 64) B 65) C 66) C 67) The two approaches are auditing around the computer (the blackbox approach) auditing through the computer (the white-box approach).

Using the black-box approach, auditors do not need to gain detailed knowledge of the systems’ internal logic. The system will not be interrupted for auditing purposes. The approach applies when the automated systems applications are relatively simple. Using the whitebox approach requires auditors to understand the internal logic of the system/application being tested. Auditors need to create test cases to verify specific logic and controls in a system. Auditing through the computer approach embraces a variety of techniques such as test data technique, parallel simulation. The white-box approach is used when the automated systems applications are complicated.

68) 1.1) LANs covers a small area while WANs covers a significantly larger area.

2.2) LANs speeds are also significantly faster than WANs. 3.3) LANs are more secure than WANs. 4.4) WANs are much more expensive to implement than LANs. The Internet is the most popular WAN. A local area network is often used in a computer lab on campus. (Students’ answers may vary.)

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69) 1.1) Confidentiality: Ensure that communication cannot be read by unauthorized parties.

2.2) Integrity: Detect any intentional or unintentional changes to the data during transmission.

3.3) Availability: Ensure that devices and individuals can access a network and its resources whenever needed.

4.4) Access Control: Restrict the rights of devices or individuals to access a network or resources within a network.

70) Using continuous audit/monitoring, most firms can reduce errors and frauds; increase operational effectiveness; better comply with laws and regulations; and increase management confidence in control effectiveness and financial information.

In addition, continuous auditing allows internal and external auditors to monitor transaction data in a timely manner; better understand critical control points, rules, and exceptions; perform control and risk assessments in real time or near real time; notify management of control deficiencies in a timely manner; and reduce efforts on routine testing while focus on more valuable investigation activities.

71) 1.1) Access to all relevant data in a timely manner.

2.2) Readiness of the internal audit group to develop and adopt continuous auditing.

3.3) Accumulating and quantifying the risks and the exposures that have been identified.

4.4) Defining the appropriate analytic that will effectively identify exceptions to controls.

5.5) Developing a suitable scoring/weighting mechanism to prioritize exceptions.

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72) 1.1) Eavesdropping: The attacker passively monitors wireless networks for data, including authentication credentials.

2.2) Man-in-the-Middle: The attacker actively intercepts communications between wireless clients and access points to obtain authentication credentials and data.

3.3) Masquerading: The attacker impersonates an authorized user and gains certain unauthorized privileges to the wireless network.

4.4) Message Modification: The attacker alters a legitimate message sent via wireless networks by deleting, adding to, changing, or reordering it.

5.5) Message Replay: The attacker passively monitors transmissions via wireless networks and retransmits messages, acting as if the attacker was a legitimate user.

6.6) Misappropriation: The attacker steals or makes unauthorized use of a service.

7.7) Traffic Analysis: The attacker passively monitors transmissions via wireless networks to identify communication patterns and participants.

8.8) Rogue Access Points: The attacker sets up an unsecured wireless network near the enterprise with an identical name and intercepts any messages sent by unsuspecting users that log onto it.

Students’ answers vary on the specific case and the approaches to mitigate the threats.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The balanced scorecard only includes quantitative measures. ⊚ true ⊚ false Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Topic : Balanced Scorecard Framework Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-01 Describe the Balanced Scorecard framework.

2) The balanced scorecard framework describes performance from four different perspectives based on the firm's strategy to achieve shareholder value. ⊚ true ⊚ false Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Topic : Balanced Scorecard Framework Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-01 Describe the Balanced Scorecard framework.

3) In the business process perspective, the firm describes its objectives for improvements in tangible and intangible infrastructure. ⊚ true ⊚ false

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Topic : Balanced Scorecard Framework Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-01 Describe the Balanced Scorecard framework.

4) A strategy map depicts the cause and effect relationship between objectives across the balanced scorecard perspectives. ⊚ true ⊚ false Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 16-02 Explain the purpose of strategy maps.

Topic : Framework Integrating Strategy, Operations, and IT Investment Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

5) When the firm's value proposition meets or exceeds customers' requirements, customer satisfaction results in customer retention and new customer acquisition, which drives sales growth. ⊚ true ⊚ false

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 16-02 Explain the purpose of strategy maps.

Topic : Framework Integrating Strategy, Operations, and IT Investment Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

6) The financial perspective provides information that can confirm the success of investments in learning and growth. ⊚ true ⊚ false Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Topic : Balanced Scorecard Framework Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-01 Describe the Balanced Scorecard framework.

7) The financial perspective provides information that is considered a leading indicator of performance. ⊚ ⊚

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3

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Topic : Balanced Scorecard Framework Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-01 Describe the Balanced Scorecard framework.

8)

Network IT changes the way that work is performed and decisions are made. ⊚ true ⊚ false

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

9)

Function IT can be used without affecting more than one skilled worker. ⊚ true ⊚ false

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

10)

Supply chain management systems are an example of Network IT. ⊚ true ⊚ false

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

11) The success of Enterprise IT investments often depends on whether the company makes complementary changes in business processes. ⊚ true ⊚ false

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

12)

The balanced scorecard management process starts with the Formulate step. ⊚ true ⊚ false

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Topic : Using a Balanced Scorecard Management Process Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-04 Define the Balanced Scorecard management process.

13) Investments in business analytics systems support the balanced scorecard management process during the Link to Operations step. ⊚ true ⊚ false

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Using a Balanced Scorecard Management Process Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-04 Define the Balanced Scorecard management process.

14) Research shows that standardized, integrated, and networked technology enhances decision making and performance management. ⊚ true ⊚ false Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Topic : Role of AIS/IT in the Balanced Scorecard Management Process Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-05 Describe how an AIS system contributes to a Balanced Scorecard management

15) The value of IT investments often depend on the level of complementary resources, which can change over time. ⊚ true ⊚ false

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Topic : Role of AIS/IT in the Balanced Scorecard Management Process Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-05 Describe how an AIS system contributes to a Balanced Scorecard management

16)

The impact of an IT investment can depend on managers' decision-making abilities. ⊚ true ⊚ false

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Topic : Role of AIS/IT in the Balanced Scorecard Management Process Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-05 Describe how an AIS system contributes to a Balanced Scorecard management

17) A Business Model Canvas is a relatively new tool that organizations can use to document all details of their model in a database. ⊚ ⊚

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-08 Describe the purpose of a business model canvas.

Topic : Business Model Canvas

18) An important aspect of the business model canvas is that the nine building blocks and the relationships among those building blocks define the business model. ⊚ true ⊚ false Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Difficulty : 1 Easy Source : Original Bloom's : Understand Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-09 Articulate and define the nine building blocks of a business model canvas.

Topic : Business Model Canvas

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

19) Which of the following is the best description of the balanced scorecard?

A) .A strategic planning and management system.

B) A performance measurement framework.

C) A formal, structured approach to link IT investment to business performance.

D) All are descriptions of the balanced scorecard.

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Topic : Balanced Scorecard Framework Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-01 Describe the Balanced Scorecard framework.

20)

Which of the following is not a balanced scorecard perspective?

A) Stakeholder.

B) Financial.

C) Business process.

D) Customer.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Topic : Balanced Scorecard Framework Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-01 Describe the Balanced Scorecard framework.

21) Which of the following is not a general type of business process found on generic strategy maps?

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A) Innovation processes.

B) Administrative processes.

C) Operations management processes.

D) Customer management processes.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 16-02 Explain the purpose of strategy maps.

Topic : Framework Integrating Strategy, Operations, and IT Investment Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

22) Which of the nine building blocks in a busines model canvas is being addressed when a business is deciding how to service each customer segment?

A) Customer Segments.

B) Distribution Channels.

C) Customer Relationships.

D) Key Activities.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-09 Articulate and define the nine building blocks of a business model canvas.

Topic : Business Model Canvas

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23) Which of the following is not included in Information Capital as described in the balanced scorecard learning and growth perspective?

A) IT Infrastructure.

B) Employees' abilities to use technology.

C) Intangible assets.

D) Applications.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 16-02 Explain the purpose of strategy maps.

Topic : Framework Integrating Strategy, Operations, and IT Investment Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

24)

Which of the following is not an example of Enterprise IT? A) Spreadsheet financial applications.

B) Business intelligence systems.

C) CRM systems.

D) ERP systems.

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

25) Which of the following is not an organizational capability directly supported by Enterprise IT? A) Process definition.

B) Process integration.

C) Customer service.

D) Transaction automation.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

26) Which of the following is the best reason that companies find it hard to assess the benefit of IT investments?

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A) Difficult to assess costs.

B) Difficult to tie IT investments to company strategy.

C) IT investments become embedded in business processes.

D) None of the choices are correct.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

27)

Which of the following is not a step in the balanced scorecard management process?

A) Invest.

B) Translate.

C) Monitor.

D) Adapt.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Using a Balanced Scorecard Management Process Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-04 Define the Balanced Scorecard management process.

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28) 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.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Source : Original Bloom's : Understand Difficulty : 2 Medium Topic : Using a Balanced Scorecard Management Process Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-04 Define the Balanced Scorecard management process.

29) Which of the following is not one of the types of business processes that should be considered, according to Kaplan and Norton, when considering the Process Perspective of the Balanced Scorecard?

A) Customer management processes.

B) Business continuity processes.

C) Operations management processes.

D) Regulatory and social processes.

E) Innovation processes.

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Topic : Balanced Scorecard Framework Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-01 Describe the Balanced Scorecard framework.

30) Which of the following best explains the cause-and-effect relationships portrayed by the Balanced Scorecard?

A) Improvements in the Process perspective leads to improvements in the Learning & Growth perspective.

B) Improvements in the Learning & Growth and Customer perspectives lead to improvements in the Process perspective.

C) Improvements in areas related to Customer and Process perspectives lead to improvements in the Financial perspective.

D) Improvements in the Financial and Process perspectives lead to improvements in the Customer perspective.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Topic : Balanced Scorecard Framework Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-01 Describe the Balanced Scorecard framework.

31)

Which of the following best describes a strategy map?

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A) A strategy map is a categorized list of a firms strategic objectives, critical success factors (CSFs), and key performance indicators (KPIs).

B) A strategy map is a collection of all a firm’s activity and structure model diagrams.

C) A strategy map is a visual representation of a firm’s current and planned geographic operations and markets.

D) A strategy map is a one-page representation of a firm’s strategic priorities and the cause-and-effect linkages among them.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 16-02 Explain the purpose of strategy maps.

Topic : Framework Integrating Strategy, Operations, and IT Investment Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

32)

Which of the following is the best reason for a firm to use a strategy map?

A) It identifies which products should be developed and marketed.

B) It allows firms to assess and prioritize gaps between current and desired performance

levels.

C) It allows firms to evaluate past financial results as the end result of activity in the other Balanced Scorecard perspectives.

D) Developing a strategy map allows a firm’s executives to go on a weekend retreat, which enhances the trust and bonds between the executive team members.

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 16-02 Explain the purpose of strategy maps.

Topic : Framework Integrating Strategy, Operations, and IT Investment Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

33) The value of an IT investment can be dependent on whether complementary capabilities exist within the firm. Which of the following is not one of the required complementary capabilities?

A) Skilled workers.

B) The ability to work in a team environment.

C) The ability to query a database.

D) The design of work processes.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

34)

Which of the following is not considered a component of information capital?

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A) Applications.

B) Computing hardware.

C) Supervision.

D) Infrastructure.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

35)

All of the following are considered potential benefits of enterprise IT except: A) Customer service.

B) Transaction automation.

C) Execution of discrete tasks.

D) Process integration.

E) Performance monitoring and decision support.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 16-03 Describe different types of IT and why IT initiatives can be difficult to Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Topic : Role of AIS/IT in a Balanced Scorecard Framework

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36) Which of the following best represents the sequence of steps in the Balanced Scorecard management process?

A) Plan, Design, Implement, Maintain, Adjust.

B) Strategize, Develop, Measure, Report, React.

C) Formulate, Translate, Link to Operations, Monitor, Adapt.

D) Analyze, Plan, Develop Strategy Map, Measure, Adapt.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Topic : Using a Balanced Scorecard Management Process Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-04 Define the Balanced Scorecard management process.

37) Which of the following is not a typical activity a firm will undertake when linking the Balanced Scorecard to operations?

A) Prioritize business process improvements.

B) Develop capital and other long-term budgets.

C) Develop key performance indicators.

D) Establish necessary IT systems.

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Topic : Using a Balanced Scorecard Management Process Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-04 Define the Balanced Scorecard management process.

38) Which of the following best describes how using structured strategic management processes such as the Balanced Scorecard can have an impact on companies?

A) Allows firms to more accurately estimate the cost of implementing new technologies.

B) Enhances the efficiency and speed of supply chain transactions.

C) Helps tie the use of supporting technologies to successful performance.

D) Allows executives to have a dashboard view of key performance metrics.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Topic : Role of AIS/IT in the Balanced Scorecard Management Process Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-05 Describe how an AIS system contributes to a Balanced Scorecard management

39)

The Val IT framework best aligns with and complements which of the following?

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A) The REA model.

B) The COSO 2013 internal control framework.

C) The Balanced Scorecard.

D) The COBIT 5 framework.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Learning Objective : 16-06 Describe the IT Governance Val IT Framework.

Topic : IT Governance Institute Val IT Framework Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

40) Val IT distinguishes among several main categories of firm initiatives. Which of the following is not one of those categories?

A) Portfolios.

B) Programs.

C) Plans.

D) Projects.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Learning Objective : 16-06 Describe the IT Governance Val IT Framework.

Topic : IT Governance Institute Val IT Framework Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

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41)

Val IT is similar to the Balanced Scorecard in what sense?

A) It is linked closely to the use of strategy maps.

B) It requires firms to define value in terms of the firms’ strategic objectives.

C) IT governance is a key focus area.

D) The VAL IT plan should fit on one page.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Learning Objective : 16-06 Describe the IT Governance Val IT Framework.

Topic : IT Governance Institute Val IT Framework Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

42) Experts agree that the most common reason firms don’t realize value from their IT investments is that they do not have a structured plan. According to these same experts, what is the 2nd most common reason?

A) Unwillingness to adopt the new technology.

B) Overestimating potential benefits.

C) Lack of knowledge of how to begin.

D) The new technology does not work properly.

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Learning Objective : 16-07 Explain how organizations implement the Val IT framework.

Topic : Implementing Val IT Governance Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

43)

Which of the following is not one of the Val IT implementation steps?

A) Assess the organization’s readiness to undertake IT business value management.

B) Recognize problems with prior IT investments.

C) Develop a technology portfolio plan.

D) Take action.

E) Define characteristics of the ideal future state.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Learning Objective : 16-07 Explain how organizations implement the Val IT framework.

Topic : Implementing Val IT Governance Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology

44)

Which of the following does not describe a business model canvas?

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A) Helps focus business model discussion.

B) Shows connections between investments in the business and desired outcomes.

C) Complex and generally many pages.

D) Useful in describing how information technology can support a business model.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-08 Describe the purpose of a business model canvas.

Topic : Business Model Canvas

45)

When building a business model, companies should start with which building block?

A) Value Proposition.

B) Customer Segments.

C) Revenue Streams.

D) Key Activities.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-09 Articulate and define the nine building blocks of a business model canvas.

Topic : Business Model Canvas

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46) In which of the following business canvas model building blocks will a business define the business process to source, make and deliver business products?

A) Key Resources.

B) Customer Segments.

C) Revenue Streams.

D) Key Activities.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-09 Articulate and define the nine building blocks of a business model canvas.

Topic : Business Model Canvas

47) Which of the following is not one of the nine building blocks for a business model canvas?

A) Implementation Streams.

B) Revenue Streams.

C) Key Partners.

D) Customer Segments.

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Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-09 Articulate and define the nine building blocks of a business model canvas.

Topic : Business Model Canvas

48)

Which of the following is an example of the impact of IT on a business model canvas?

A) New procedure to greet customers upon entry.

B) Building of new drive through for fast food restaurant.

C) Implementation of biometric login for app users.

D) Hiring more associates to service customers.

Question Details Accessibility : Screen Reader Compatible AACSB : Analytical Thinking Difficulty : 1 Easy Source : Original Bloom's : Understand Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Learning Objective : 16-10 Describe the potential impact of IT on an organization using the business Topic : Business Model Canvas

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

49) Review the following list of company objectives. Prepare a strategy map that places each objective in the correct balanced scorecard perspective. # 1 2

Strategic Objective Build a strong brand image Comply with regulations

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3 4 5 6 7 8 9 10 11 12 13 16 15 16 17 18 19 20 21

Create a strong relationship with your customers Create an organizational culture of excellent performance Deliver products on time Develop new and desired products Ensure all employees are aware of the firm's strategic objectives Gain new customers Grow revenue Hire employees with the right qualifications Implement IT systems to ensure the right information gets to the right people Increase inventory turnover Increase productivity Increase shareholder value Maintain an easy to use website Market products effectively Operate an efficient supply chain Reward employees for their contribution Satisfy customers Sell high-quality products Train employees so their skills match the job requirements

Question Details AACSB : Analytical Thinking Source : Original Learning Objective : 16-02 Explain the purpose of strategy maps.

Bloom's : Apply Difficulty : 3 Hard Topic : Framework Integrating Strategy, Operations, and IT Investment Accessibility : Keyboard Navigation AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Gradable : manual

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50) Your company has elected to implement a balanced scorecard management process following the steps outlined by Kaplan and Norton. After examining the process closely, your company’s senior management team (CEO, CFO, CIO, etc.) decides to modify the process to make the steps more specific. First of all, they identified three different organizational levels involved in the process: senior management, middle management, and the rest of the workforce.

After a brainstorming session, they decide to break the five steps into pieces as follows: the formulate step would include a) assessing the company’s value proposition relative to the competition, and b) determining the appropriate elements of the value proposition to emphasize in order to achieve competitive advantage. The translate step would include a) setting long-term strategic objectives for customer and shareholder value, and b) set priorities for long-term capital improvements necessary to achieve the long-term strategic objectives. The Link step would then include a) establishing necessary IT initiatives, b) setting departmental budgets, c) implementing new IT systems, and d) operating business processes. The monitor step would include a) produce reports to track performance, and b) review reports to evaluate performance.

Then, they decided to insert a new step, titled Adjust. This step would include making adjustments necessary to improve business processes, basically revisiting the Link to Operations step but making minor changes. If the adjustments failed to achieve objectives, then they would continue to the Adapt step to a) reconsider their assumptions about the competitive environment, and b) reconsider alternatives for those parts of the value proposition to emphasize to achieve competitive success.

Required: Draw a BPMN activity diagram that outlines your company’s approach to the balanced scorecard management process. Then, describe in writing whether you agree with your senior management team’s breakdown of the steps and the approach they propose. What would you do differently? Why?

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Question Details AACSB : Analytical Thinking Source : Original Difficulty : 3 Hard Accessibility : Keyboard Navigation AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Gradable : manual Accessibility : Screen Reader Compatible Bloom's : Evaluate Topic : Using a Balanced Scorecard Management Process Learning Objective : 16-04 Define the Balanced Scorecard management process.

SECTION BREAK. Answer all the part questions.

51) Your company has elected to implement a balanced scorecard management process following the steps outlined by Kaplan and Norton. After examining the process closely, your company’s senior management team (CEO, CFO, CIO, etc.) decides to modify the process to make the steps more specific. First of all, they identified three different organizational levels involved in the process: senior management, middle management, and the rest of the workforce.

After a brainstorming session, they decide to break the five steps into pieces as follows: the formulate step would include a) assessing the company’s value proposition relative to the competition, and b) determining the appropriate elements of the value proposition to emphasize in order to achieve competitive advantage. The translate step would include a) setting long-term strategic objectives for customer and shareholder value, and b) set priorities for long-term capital improvements necessary to achieve the long-term strategic objectives. The Link step would then include a) establishing necessary IT initiatives, b) setting departmental budgets, c) implementing new IT systems, and d) operating business processes. The monitor step would include a) produce reports to track performance, and b) review reports to evaluate performance.

Then, they decided to insert a new step, titled Adjust. This step would include making adjustments necessary to improve business processes, basically revisiting the Link to Operations step but making minor changes. If the adjustments failed to achieve objectives, then they would continue to the Adapt step to a) reconsider their assumptions about the competitive environment, and b) reconsider alternatives for those parts of the value proposition to emphasize to achieve competitive success.

Question Details

51.1) Describe in writing whether you agree with your senior management team’s breakdown of the steps and the approach they propose. What would you do differently?

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Question Details

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Answer Key Test name: Chapter 16 1) FALSE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) FALSE 11) TRUE 12) TRUE 13) FALSE 14) TRUE 15) TRUE 16) TRUE 17) FALSE 18) TRUE 19) D 20) A 21) B 22) C 23) C 24) A 25) A 26) C Version 1

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27) A 28) B 29) B 30) C 31) D 32) B 33) C 34) C 35) C 36) C 37) B 38) C 39) D 40) C 41) B 42) C 43) C 44) C 45) A 46) D 47) A 48) C 49) #

Strategic Objective

1 2 3 4

Build a strong brand image Comply with regulations Create a strong relationship with your customers Create an organizational culture of excellent performance Deliver products on time Develop new and desired products

5 6

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BSC Perspective CUST PROCESS CUST L&G PROCESS PROCESS

33

7 8 9 10 11 12 13 16 15 16 17 18 19 20 21

Ensure all employees are aware of the firm's strategic objectives Gain new customers Grow revenue Hire employees with the right qualifications Implement IT systems to ensure the right information gets to the right people Increase inventory turnover Increase productivity Increase shareholder value Maintain an easy to use website Market products effectively Operate an efficient supply chain Reward employees for their contribution Satisfy customers Sell high-quality products Train employees so their skills match the job requirements

L&G CUST FINL L&G L&G PROCESS FINL FINL PROCESS PROCESS PROCESS L&G CUST CUST L&G

50) (Open ended; the BPMN should not violate standards) 51) Section Break

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) In making the business case for an IT investment, companies should assess the sensitivity of results to the assumptions. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Learning Objective : 17-01 Articulate similarities and differences between major IT initiatives and o Source : Original Topic : Large IT Projects Require Economic Justification Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

2) The appropriate cost of capital to use in valuing an IT project is the same regardless of the project riskiness. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Learning Objective : 17-01 Articulate similarities and differences between major IT initiatives and o Source : Original Topic : Large IT Projects Require Economic Justification Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

3) Capital budgeting techniques provide precise estimates on an IT projects costs and benefits. ⊚ true ⊚ false Version 1

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Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Learning Objective : 17-01 Articulate similarities and differences between major IT initiatives and o Source : Original Topic : Large IT Projects Require Economic Justification Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

4)

Net present value techniques compute the unique rate of return for a particular IT project. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking Learning Objective : 17-01 Articulate similarities and differences between major IT initiatives and o Source : Original Topic : Large IT Projects Require Economic Justification Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

5) One weakness of the internal rate of return financial metric is that larger projects tend to have higher internal rates of return. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-06 Apply capital budgeting techniques to assess the value proposition for an Accessibility : Keyboard Navigation Topic : Developing the Value Proposition for an IT Initiative Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

6) The value proposition step in the analysis of an IT initiative should focus on five questions, including the timing of expected benefits. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-02 Explain the major steps in the economic justification of an IT initiative.

Accessibility : Keyboard Navigation Topic : The Business Case for IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

7)

The benefits of an IT project are not necessarily measurable in financial terms. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Benefits of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

8)

Benefits are often estimated without complete information. ⊚ true ⊚ false

Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Benefits of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

9) The business case for an IT project does not need to address risk, since risk will be factored into the discount rate. ⊚ true ⊚ false

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Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

10) Time that employees devote to self-training on new technology is an example of direct operating costs. ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-04 Assess potential costs of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Potential Costs of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

11) 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

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Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Learning Objective : 17-01 Articulate similarities and differences between major IT initiatives and o Source : Original Topic : Large IT Projects Require Economic Justification Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

12) Which of the following is not a question that businesses should answer before making major IT investments?

A) What key business issues does it address?

B) What are the risks of doing the project?

C) How will success be measured?

D) None of the choices are correct.

Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Learning Objective : 17-01 Articulate similarities and differences between major IT initiatives and o Source : Original Topic : Large IT Projects Require Economic Justification Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

13) Which of the following is not a major consideration when assessing business requirements for IT initiatives?

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A) Complementary business process changes B) Potential technological solutions C) Gaps in performance indicated by the strategy map D) Project risks

Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-02 Explain the major steps in the economic justification of an IT initiative.

Accessibility : Keyboard Navigation Topic : The Business Case for IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

14)

Which of the following is not a direct acquisition cost of an IT initiative?

A) Cost of hardware B) Cost of business disruption C) Cost of project management D) Cost of software development

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Benefits of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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15)

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

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Benefits of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

16)

Which of the following is not a potential benefit of an IT investment?

A) Revenue enhancement B) Revenue savings C) Cost avoidance D) Revenue protection

Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Benefits of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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17) Which of the following is the least effective approach to quantifying expected benefits of an IT project?

A) Find out what other firms experienced in similar situations B) Review options with the hardware vendor C) Consult with experts D) Use simulation software

Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Benefits of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

18)

Which of the following is an example of project risk?

A) The technology will not work as expected.

B) The IT project is not aligned with the company's strategy.

C) The financial benefits may not be delivered.

D) The IT project may exceed budget.

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Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

19)

Which of the following is an example of solution risk?

A) The solution is not aligned with the company's strategy.

B) The solution will not generate projected benefits.

C) The solution will be delayed.

D) Employees are unwilling to make the necessary changes.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

20)

Which of the following is the best approach to mitigate alignment risk?

A) Assure top management support.

B) Conduct training and provide incentives.

C) Use the balanced scorecard framework.

D) Use sensitivity analysis.

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Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

21)

Which of the following would not help mitigate change risk?

A) Conduct training.

B) Incent employees to learn new system.

C) Reduce employee costs.

D) Communicate changes to employees.

Question Details AACSB : Analytical Thinking Bloom's : Understand Source : Original Difficulty : 1 Easy Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

22) If the implementation costs greatly exceed the expected cost, the firm may have not done an appropriate job assessing which type of risk?

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A) Financial Risk.

B) Implementation Risk.

C) Cost Risk.

D) Technological Risk.

Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

23) risk?

By having a software vendor present a proof of concept, a firm is trying to mitigate which

A) Project Risk.

B) Solution Risk.

C) Feasibility Risk.

D) Technological Risk.

Question Details AACSB : Analytical Thinking Bloom's : Understand Difficulty : 2 Medium Source : Original Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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24) Organizations have developed techniques for evaluating IT projects for several reasons.

Which of the following is not one of those reasons?

A) Selecting one investment often means forgoing other potentially value-increasing investments.

B) IT projects change regularly.

C) IT projects often require large amounts of capital, and for most firms, capital resources are limited.

D) IT projects often involve changes in business processes that will affect substantial portions of the organization.

Question Details AACSB : Analytical Thinking Learning Objective : 17-01 Articulate similarities and differences between major IT initiatives and o Source : Original Topic : Large IT Projects Require Economic Justification Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

25)

IDC estimates that what percent of IT spending is in the form of capital expenditures?

A) 25%.

B) 40%.

C) 70%.

D) 95%.

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Question Details AACSB : Analytical Thinking Learning Objective : 17-01 Articulate similarities and differences between major IT initiatives and o Source : Original Topic : Large IT Projects Require Economic Justification Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

26) The International Federation of Accountants recommends creating a business case for an IT investment. Which of the following is not a question the business case should answer?

A) What are the alternatives?

B) How will we fund the investment?

C) What are the risks of not doing the project?

D) Why are we doing this project?

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-02 Explain the major steps in the economic justification of an IT initiative.

Accessibility : Keyboard Navigation Topic : The Business Case for IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

27) For a firm considering AIS and IT initiatives, accountants can play an important role in which of the following ways?

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A) Testing business case controls.

B) Memorializing the business case.

C) Developing and reviewing the business case for the initiatives.

D) Entering transactions into the new system.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-02 Explain the major steps in the economic justification of an IT initiative.

Accessibility : Keyboard Navigation Topic : The Business Case for IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

28) The economic justification process for a new IT initiative includes all of the following except: A) Allocate funds for the recommended option.

B) Evaluate potential costs, benefits, and risks for each option.

C) Identify potential solutions.

D) Develop value propositions for each option.

E) Assess the business requirements.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-02 Explain the major steps in the economic justification of an IT initiative.

Accessibility : Keyboard Navigation Topic : The Business Case for IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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29) In addition to technology, which of the following is required in order that a firm may achieve desired business process improvements for its IT investment?

A) Other enabling (complementary) changes.

B) Software configuration.

C) The Balanced Scorecard and associated strategy map.

D) Business Intelligence.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-02 Explain the major steps in the economic justification of an IT initiative.

Accessibility : Keyboard Navigation Topic : The Business Case for IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

30) Which of the following is not one of the potential approaches to quantifying the expected benefits of IT initiatives?

A) Real option theory.

B) Simulation.

C) External benchmarks.

D) Expert opinion.

E) Performance futures theory.

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Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Benefits of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

31)

Benefits of IT initiatives should be measured in comparison to which of the following?

A) The amount of information available.

B) Current inputs of the existing IT processes.

C) Revenues and costs that will occur without implementing the initiative.

D) Non-financial aspects of the project.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Benefits of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

32) Which of the following would not be considered an indirect operating cost for an IT initiative?

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A) End user data entry.

B) User self-training.

C) User peer support.

D) End user data management.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Learning Objective : 17-04 Assess potential costs of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Potential Costs of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

33)

Acquisition costs for an IT initiative include all of the following except: A) Software licenses.

B) Training.

C) Maintenance fees.

D) Project management.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-03 Explain potential benefits of IT initiatives and how to evaluate them.

Learning Objective : 17-04 Assess potential costs of IT initiatives and how to evaluate them.

Accessibility : Keyboard Navigation Topic : Estimating Potential Costs of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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34) Which of the following risks considers the possibility that the new IT system will not be implemented on time or within budget?

A) Solution risk.

B) Change risk.

C) Alignment risk.

D) Project risk.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

35) After identifying the relevant risks associated with an IT initiative, which of the following is not something that the project team should consider regarding each risk?

A) The financial impact of the risk scenario occurring.

B) The probability of the risk scenario occurring.

C) The potential benefits of the risk scenario occurring.

D) The cost of mitigating the risk.

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Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

36)

Which of the following is the formula for payback period?

A) Increased cash flow per period / initial investment.

B) Initial investment / increased cash flow per period.

C) CFt / (1 + r)t D) (Average annual income from IT initiative) / (Total IT initiative investment cost).

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-06 Apply capital budgeting techniques to assess the value proposition for an Accessibility : Keyboard Navigation Topic : Developing the Value Proposition for an IT Initiative Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

37) Which of the following is a key advantage of the Net Present Value metric for evaluating an IT initiative?

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A) It relates estimates using accrual accounting.

B) It is easy to calculate.

C) It considers the time value of money.

D) It is sensitive to the discount rate applied.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-06 Apply capital budgeting techniques to assess the value proposition for an Accessibility : Keyboard Navigation Topic : Developing the Value Proposition for an IT Initiative Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

38) When considering the sensitivity of estimates used to evaluate IT initiatives, which of the following are you likely to do?

A) Use multiple metrics to evaluate each IT initiative.

B) Test the impact of changes in assumptions on the various financial metrics.

C) Consider which groups in the organization will benefit.

D) Develop exact quantifications of costs and benefits.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-06 Apply capital budgeting techniques to assess the value proposition for an Accessibility : Keyboard Navigation Topic : Developing the Value Proposition for an IT Initiative Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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39)

Which of the following is the order of tasks when evaluating AIS Investments?

A) Develop the Business case→Define Business Requirements→Estimate Benefits→Estimate Costs→Asess Risks→Prepare the value proposition.

B) Develop Financials→Estimate Benefits→Estimate Costs→Asess Risks→Prepare the value proposition.

C) Obtain management support→Estimate Benefits→Estimate Costs→Asess Risks→Prepare the value proposition.

D) Develop the Business case→Define Business Requirements→Estimate Benefits→Estimate Costs→Asess Risks→Implement.

Question Details AACSB : Analytical Thinking Source : Original Bloom's : Remember Difficulty : 1 Easy Learning Objective : 17-06 Apply capital budgeting techniques to assess the value proposition for an Accessibility : Keyboard Navigation Topic : Developing the Value Proposition for an IT Initiative Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

40) Explain why it is easier to assess the costs of an IT project than to assess the benefits.

What factors complicate the cost estimates? What factors complicate the benefits estimates? Do the risks associated with the project primarily affect the costs or the benefits? Why?

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Question Details AACSB : Analytical Thinking Source : Original Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Bloom's : Evaluate Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

41) Pacific Green Company is considering buying a unique bar-coding machine to help them track their plant inventory. They are using the payback period and accounting rate of return methods to evaluate the purchase. They will consider the project further if the payback period is less than four years and it has a minimum accounting rate of return of 7%. Relevant information on the machine is as follows: Acquisition cost = $48,000 Expected salvage value = $0 Expected annual cash inflow benefits = $13,000 per year for 5 years Expected useful life = 5 years Required: Compute the payback period and ARR. Advise GPC on their appropriate action.

Question Details AACSB : Analytical Thinking Source : Original Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Difficulty : 3 Hard Bloom's : Apply Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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42) Yellow Duck Brewery is considering two similar technology investments to help track production. Investment (1) has an NPV of $245,000 and a payback period of 3 years. Investment (2) has an NPV of $250,000 and a payback period of 4.25 years. Which investment would you advise them to choose? Why?

Question Details AACSB : Analytical Thinking Source : Original Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Bloom's : Evaluate Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

43) Pacific Green Company is considering buying a unique bar-coding machine to help them track their plant inventory. They evaluated the payback period and accounting rate of return and selected the project for further evaluation. Relevant information on the machine is repeated as follows: Acquisition cost = $48,000 Expected salvage value = $0 Expected annual cash inflow benefits = $13,000 per year for 5 years Expected useful life = 5 years Required: Compute the net present value of the project assuming a discount rate of 16%. Use EXCEL to compute the internal rate of return. Advise PGC on the best course of action with respect to the investment.

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Question Details AACSB : Analytical Thinking Source : Original Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Difficulty : 3 Hard Bloom's : Apply Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

44) Cooper Automotive is considering expanding, but to do so, they need to invest in new systems expected to cost $1,000,000. They estimate the salvage value to be $0 at the end of 10 years, so depreciation will be $100,000 per year. They estimate that profits will increase by $250,000 per year. Coop’s cost of capital is 10%.

Required: Compute the payback period, the accounting rate of return, the net present value, and the internal rate of return. Advise Coop on whether he should invest. Would your advice change if the increase in profits is only $175,000 per year?

Question Details AACSB : Analytical Thinking Learning Objective : 17-05 Describe potential risks of IT initiatives and corresponding risk-mitigati Difficulty : 3 Hard Bloom's : Apply Accessibility : Keyboard Navigation Topic : Assessing Potential Risks of IT Initiatives AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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Answer Key Test name: Chapter 17 1) TRUE 2) FALSE 3) FALSE 4) FALSE 5) FALSE 6) TRUE 7) FALSE 8) TRUE 9) FALSE 10) FALSE 11) A 12) D 13) D 14) B 15) A 16) B 17) B 18) D 19) B 20) C 21) C 22) A 23) D 24) B 25) C 26) B Version 1

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27) C 28) A 29) A 30) E 31) C 32) A 33) C 34) D 35) C 36) B 37) C 38) B 39) A 40) Open ended.

41) Payback period = $48,000/$13,000 = 3.7 years ARR = ($13,000 - $9,600 depreciation expense)/$48,000 = 7.1% It meets the thresholds for further evaluation 42) (open ended but they should address the decreased risk connected with the shorter payback period despite the slight difference in NPV).

43) NPV is negative IRR is approximately 11% (and below GPC’s hurdle rate) Do not invest

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44) At $250,000 annual incremental profit: Payback is 4 years; ARR is 17%; NPV is ~$500,000; IRR is 21%.

Invest At $175,000 annual incremental profit: Payback increases to almost 6 years; ARR drops to 7.5%; NPV decreases to ~$75,000; IRR decreases to 12%.

Advise evaluating the sensitivity of the estimates to changes in assumptions.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The design phase of the SDLC begins with a business need for a new or better information system. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Source : Original Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

2) The maintenance phase of the SDLC is the final phase of the SDLC and includes making changes, corrections, additions, and upgrades (generally smaller in scope) to ensure the system continues to meet the business requirements that have been set out for it. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Source : Original Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

3) The analysis phase of the SDLC involves a complete, detailed analysis of the systems needs of the end user.

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⊚ ⊚

true false

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Source : Original Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

4) Segregation of duties can be the source of IT material weaknesses when assessing the effectiveness of internal controls over the company's accounting information system. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 18-02 Explain the core principles of information systems planning.

Accessibility : Screen Reader Compatible Topic : Effective Information Technology Planning

5)

The project sponsor is generally the same person as the project manager. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-03 Define project management, and describe the positions of those who lead th Topic : Projects, Project Management, and Project Sponsors Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

6) The project sponsor generally obtains necessary resources for successful project completion. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-03 Define project management, and describe the positions of those who lead th Topic : Projects, Project Management, and Project Sponsors Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

7)

The triple constraints of project management are also referred to as Dempster's triangle. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Constraining Factors of IT Projects Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

8)

The triple constraints of project management include time, scope, and effort. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Constraining Factors of IT Projects Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

9) The 15-15 Rule states that if a project is more than 15 percent over budget or 15 percent off the desired schedule, it will likely never recoup the time or cost necessary to be considered successful. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

10)

PERT is actually an acronym for Program Evaluation Review Tool. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

11) The breakdown of all of the project tasks needed for completion is often called the work breakdown structure. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

12)

Parallel or concurrent tasks are tasks that be done at the same time. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

13) 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. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

14) The Technology Acceptance Model defines perceived ease of use as users adopting a new or modified system to the extent they believe the system will help them perform their job better. ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

15) The Technology Acceptance Model defines perceived usefulness as the extent to which a person believes that the use of a particular system would be free of effort. ⊚ true ⊚ false

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

16)

The 100% Rule is a rule requiring 100% planning of all external tasks. ⊚ true ⊚ false

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-03 Define project management, and describe the positions of those who lead th Topic : Projects, Project Management, and Project Sponsors Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

17) Which phase of the systems development life cycle would describe in detail the desired features of the system?

A) Analysis phase B) Planning phase C) Design Phase D) Implementation Phase

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

18)

The final phase of the systems development life cycle is the: A) Analysis phase B) Maintenance phase C) Design Phase D) Implementation Phase

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

19) Which phase of the systems development life cycle includes transforming the plan from the design phase into an actual, functioning system: A) Implementation Phase B) Maintenance phase C) Analysis phase D) Design Phase

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

20) The IFAC suggested ten core principles of effective information technology planning.

Which of these are not one of those ten core principles?

A) Relevant Timeframe B) Timeliness C) Measurable Performance D) Benefits Realization

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

21) The IFAC suggested ten core principles of effective information technology planning.

Which of these are not one of those ten core principles?

A) Relevant Scope B) Reassessment C) Reliability D) Benefits Realization

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 18-02 Explain the core principles of information systems planning.

Accessibility : Screen Reader Compatible Topic : Effective Information Technology Planning

22) The IFAC suggested ten core principles of effective information technology planning.

Which of these are not one of those ten core principles?

A) Alignment B) Unbiased C) Measurable Performance D) Achievability

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 18-02 Explain the core principles of information systems planning.

Accessibility : Screen Reader Compatible Topic : Effective Information Technology Planning

23) Which of the following is the correct order for Systems Development Life Cycle (SDLC)?

A) Analysis->Planning->Design->Implementation->Maintenance B) Planning->Analysis->Design->Implementation->Maintenance C) Buy-in->Planning->Design->Implementation D) Planning->Reviewing->Design->Implementation->Maintenance

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Topic : Description of The Systems Development Life Cycle

24)

The triple constraint of project management includes the constraint of: A) Technical issues B) Time C) Adoption D) Usability

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Constraining Factors of IT Projects Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

25)

PERT and Gantt charts primarily address the triple constraint of: A) Technical issues B) Time C) Cost D) Scope

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

26)

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

A) Make sure 100% of the project is funded.

B) Make sure the project team is devoted solely or 100%, to this project.

C) Make sure that each person on the project team got 100% on their project management final exam.

D) Make sure 100% of the project tasks are defined.

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

27)

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.

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

28)

The Technology Acceptance Model predicts: A) Whether a new system is needed.

B) Whether the system will be adopted.

C) When and how the system will be modified to induce acceptance.

D) Which type of smart phone will be more successful in the marketplace?

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

29)

The Sarbanes-Oxley Act's 404 Reports require management and auditors to report on

A) The current financial condition of the firm and perceived threats to its financial condition.

B) The academic background and experience of the company's accounting leadership.

C) The effectiveness of the internal controls of the company's accounting information system.

D) The quality of the project management planning.

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

30)

In this chapter, project management is defined as:

A) The process of carrying out the systems development life cycle to achieve an intended outcome.

B) Making sure all of the inputs are available to complete the project.

C) Writing the software code for the entire project.

D) Managing the project through the implementation phase.

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-03 Define project management, and describe the positions of those who lead th Topic : Projects, Project Management, and Project Sponsors Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

31) The 15-15 Rule states that if a project is more than 15 percent over budget or 15 percent off the desired schedule, it will: A) Likely only have 15% of the desired benefits.

B) Likely never recoup the time or cost necessary to be considered successful.

C) Have a small likelihood of ever being adopted by system users.

D) Likely be cancelled by the project sponsor.

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Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Project Management Tools Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

32)

A project sponsor is generally defined as:

A) A senior executive that will sponsor, or pay for, the project.

B) A senior executive in the company who takes responsibility for the success of the project.

C) The CEO of the company that likes technology.

D) The system's primary user.

Question Details AACSB : Reflective Thinking Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-03 Define project management, and describe the positions of those who lead th Topic : Projects, Project Management, and Project Sponsors Accessibility : Keyboard Navigation Gradable : automatic AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible

33) In AIS, managing and carrying out the systems development life cycle to achieve an intended outcome is called: A) Life cycle development.

B) Project management.

C) Executive sponsorship.

D) System analysis.

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Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Source : Original Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

34) Which of the following best describes the planning phase of the systems development life cycle?

A) Plan the detailed steps that will take place during the implementation phase.

B) Systems analysts outline all features required in the new system, including screen layouts and business process diagrams.

C) Summarize the business needs of the company with a high-level view of the project.

D) The business determines its information needs and designs the system to meet those needs.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Source : Original Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

35) Which of the following best describes the implementation phase of the systems development life cycle?

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A) Detailed specifications are laid out for the new system, including screen layouts and business process diagrams.

B) Upgrades to the operational system are installed and tested.

C) The company conducts a variety of feasibility studies on the new system.

D) The new system is developed, tested, and placed into production.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Source : Original Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

36) Which of the following control frameworks most closely corresponds to the phases of the SDLC? A) COBIT. B) COSO 2014.

C) COSO ERM. D) ISO 27000.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Source : Original Topic : System Development Life Cycle Phases Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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37)

Which of the following roles is most likely to be a project sponsor?

A) System Analyst.

B) Chief Financial Officer.

C) Project Manager.

D) Controls Manager.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-03 Define project management, and describe the positions of those who lead th Topic : Projects, Project Management, and Project Sponsors Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

38)

Which of the following does not respresent a constraint described in Dempster’s triangle?

A) During the implementation phase the head of marketing requests new features be

added.

B) Project consultants have billed triple the hours you anticipated.

C) The project sponsor is not receiving support from other executives.

D) The project timeline does not include holidays which the team members plan to take off.

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Question Details Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Challenges of IT Project Management AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium

39)

Which of the following is an example of scope creep?

A) Your initial test results are not accurate.

B) You failed to note dependant tasks and now must adjust your timeline.

C) You planned four 10 full time contractors but actually need 15.

D) You planned to replace one module of an Enterprisewide System but actuall, need to replace three.

Question Details Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Challenges of IT Project Management AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium

40) Which of the following best describes why project management is so important for IT projects?

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A) Because IT projects frequently are canceled, late, or don’t deliver the intended benefits.

B) Because project consulting is a large and growing industry.

C) Because the technology acceptance model depends on strong project management.

D) Because PERT charts are created by project management.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Challenges of IT Project Management AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

41)

Scope creep is best described as which of the following?

A) The overall size of the project.

B) Increases to a project’s requirements after the project has started.

C) Expansion of budget after the project has started.

D) The gradual completion of project tasks, eventually resulting in the end of the project.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Accessibility : Keyboard Navigation Topic : Challenges of IT Project Management AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

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42) Which of the of the following should be considered a “must have” versus “nice to have” feature?

A) Tracking abilities.

B) Intuitive interface.

C) Regulatory requirements.

D) Automation.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

43) In 1989, Fred Davis proposed a model which predicts the use of new systems. What is the name of this model?

A) System Use Model.

B) Unified Theory on the Acceptance and Use of Technology.

C) Individual Technology Efficacy Model.

D) Technology Acceptance Model.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

44) According to Fred Davis’ model on the use of new systems, users’ intentions regarding the use of new systems are a direct result of which factors?

A) Perceived usefulness of the new system; Perceived ease of use of the new system.

B) Whether use of the new system is voluntary or mandatory; How easy the new system is to use.

C) How much experience the user has with technology; Social pressures to use certain technologies.

D) The gender of the user; How much the new system helps the user complete workrelated tasks.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

45) Which of the following approaches is recommended to help users view a new system as easy to use?

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A) Provide extensive training just after the system goes into production throughout the organization.

B) Show the look and feel of the new system (i.e., sample computer screens, reports, etc.) well before the new system is developed in order to help users feel comfortable with it.

C) Develop a detailed specification of the features the new system will have.

D) Make sure all user requests are addressed as enhancements to the system in its maintenance phase.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

46) Walmart’s implementation of a new SAP system in the UK resulted in which of the following?

A) A catastrophic system failure that cost lives and millions of pounds in losses.

B) A successful implementation of SAP that they hope to expand to other areas of the company soon.

C) A successful pilot test of the system that led to a successful global rollout of SAP. D) An expensive system failure that required Walmart to start over from scratch.

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Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible

47) Which of the following situations is not the result of a weakness in or lack of internal controls?

A) Financial statements are misstated because individuals were able to update financial information beyond that needed to perform their job functions.

B) A programming error results in too much revenue being recorded.

C) Earnings per share are misstated due to a spreadsheet error.

D) The vendor bills an amount different than the amount entered on the purchase order.

Question Details Bloom's : Remember Difficulty : 1 Easy Source : Original Accessibility : Keyboard Navigation AACSB : Analytical Thinking Gradable : automatic Learning Objective : 18-02 Explain the core principles of information systems planning.

AICPA : BB Leveraging Technology AICPA : FN Leveraging Technology Accessibility : Screen Reader Compatible Topic : Effective Information Technology Planning

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ESSAY. Write your answer in the space provided or on a separate sheet of paper.

48) As part of effective IT planning in systems development life cycle, a return on investment (ROI) calculation may be performed as part of the economic feasibility analysis. Often, many of the benefits from a new information system may be intangible benefits (e.g. system is easier to use or system enhances customer service, etc.) that are hard to quantify in an income statement.

What are some intangible benefits of a state-of-the-art course registration system at your college or university?

Question Details AACSB : Reflective Thinking Source : Original Bloom's : Analyze Difficulty : 3 Hard Accessibility : Keyboard Navigation AICPA : BB Industry AICPA : FN Decision Making Learning Objective : 18-02 Explain the core principles of information systems planning.

Accessibility : Screen Reader Compatible Topic : Effective Information Technology Planning Gradable : manual

49) Let’s suppose that Wal-Mart wants to make sure its top-selling products are placed on the modular shelves at the right level for customers to find and buy. Using Wal-Mart as an example, explain what types of activities would occur in each of the five phases of the systems development life cycle in preparation for this providing this type of information to Wal-Mart and its suppliers.

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Question Details AACSB : Reflective Thinking Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Source : Original Topic : System Development Life Cycle Phases Bloom's : Analyze Difficulty : 3 Hard Accessibility : Keyboard Navigation AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Gradable : manual

50) Accountants generally do not have all of the necessary systems analyst and systems development skills needed to develop accounting information systems. What skills do accountants have that systems analysts do not have, particularly with respect to a financial reporting system?

Question Details AACSB : Reflective Thinking Learning Objective : 18-01 Describe each phase in the systems development life cycle.

Source : Original Topic : System Development Life Cycle Phases Bloom's : Analyze Difficulty : 3 Hard Accessibility : Keyboard Navigation AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Gradable : manual

51) Brainstorm a list of reasons why 68% (including 44% challenged + 24% failed) of the information technology projects either failed or were challenged in 2009. Consider specifics of each of the elements of the triple constraints model and any other common delays including the challenges of working with programmers, software and hardware suppliers and vendors, etc.

What is the best way to overcome these issues and decrease the number of projects failed or challenged?

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Question Details AACSB : Reflective Thinking Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Bloom's : Analyze Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Challenges of IT Project Management AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Gradable : manual

52) Tyson Foods (pork, chicken, beef producer) is implementing its SAP system throughout its worldwide operations. If Tyson has the choice, should it implement this system in Brazil before, at the same time, or after the implementation in the United States? Use the Technology Acceptance Model as a model (in particular, perceived ease of use) to explain your answer.

Question Details AACSB : Reflective Thinking Source : Original Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Bloom's : Analyze Difficulty : 3 Hard Accessibility : Keyboard Navigation AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Gradable : manual

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53) What is the difference in roles between a project sponsor and a project manager? Why are they each important?

Question Details AACSB : Reflective Thinking Source : Original Learning Objective : 18-03 Define project management, and describe the positions of those who lead th Topic : Projects, Project Management, and Project Sponsors Bloom's : Analyze Difficulty : 3 Hard Accessibility : Keyboard Navigation AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Gradable : manual

54)

What can be done to combat scope creep?

Question Details AACSB : Reflective Thinking Source : Original Learning Objective : 18-04 Explain why IT projects are challenged and the tools that are used to over Bloom's : Analyze Difficulty : 3 Hard Accessibility : Keyboard Navigation Topic : Project Management Tools Topic : Challenges of IT Project Management AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Gradable : manual

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55) Explain how the Technology Acceptance Model can be used as a useful tool in planning an IT project.

Question Details AACSB : Reflective Thinking Source : Original Learning Objective : 18-05 Explain why users do or do not want to use a new information system design Topic : Will the System Be Used, and Will it Be Useful?

Bloom's : Analyze Difficulty : 3 Hard Accessibility : Keyboard Navigation AICPA : BB Industry AICPA : FN Decision Making Accessibility : Screen Reader Compatible Gradable : manual

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Answer Key Test name: Chapter 18 1) FALSE 2) TRUE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) TRUE 10) FALSE 11) TRUE 12) TRUE 13) TRUE 14) FALSE 15) FALSE 16) FALSE 17) C 18) B 19) A 20) B 21) C 22) B 23) B 24) B 25) B 26) D Version 1

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27) D 28) B 29) C 30) A 31) B 32) B 33) B 34) C 35) D 36) A 37) B 38) C 39) D 40) A 41) B 42) C 43) D 44) A 45) B 46) C 47) D 48) Answers will vary depending on the imagination of the student of the course registration. There are few things more important for a student at a university than getting in the right course with the right professor. To the extent that a course registration helps facilitate that, it is really hard to quantify the intangible benefits this might engender.

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49) Answers will vary depending on the creativity of the student. The planning phase may include a detail of the project need and the feasibility of the project. The analysis phase may include a discussion of what the end user (be they Wal-Mart or its supplier) exactly needs to accomplish the business need. These details will extend to the design, implementation, and maintenance phases.

50) Answers will vary depending on what the student knows about the accountant and the systems development functions. An accountant knows intuitively about the company and its financial reporting system.

Given their involvement in managerial reporting functions, they will also know what information is needed or what the possibilities are when additional information is given.

51) Answer: A good solution will include a discussion of the triple constraint model, including scope, cost and time elements. Scope creep, inadequate time and cost estimates will all lead to a challenged or failed projects. A more advanced solution may include a discussion that if a completed project does not have the desired functionality, it may never be used and thus not meet its intended purpose.

52) Answer:Answers may vary. There is no right solution for this answer, but hopefully the student will provide a strong analysis of the situation. Generally, if you are concerned about ease of use, it might make sense to have a long period of beta testing, or a pilot test, to make sure all of the bugs are worked out. It is also much easier to sell the project to one location if there has been a very successful launch at another location.

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53) Answers will vary, but should discuss that while both are important, each serve different roles. Here are some definitions from the textbook which the students might include.

The project sponsor will often be a senior executive in the company who takes responsibility for the success of the project. The project sponsor is generally a different person than the project manager, but often serves as the project champion.

A project manager is the lead member of the project team that is responsible for the project. The project manager’s mission is to coordinate the entire project development process to successfully complete the project. A project manager must also be able to analyze the project charter, a document which details the objectives and requirements for the project.

54) Answers will vary depending on student experience. Scope creep happens. It generally takes good planning, use of tools such as the PERT and Gantt charts, and a project manager and project sponsor willing and able to say “no”.

55) A potential answer might address how the Technology Acceptance Model makes project planners address whether the enhanced system will be both more useful and easier to use.

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