Accounting Information System – Accounting Quiz

Accounting Information System, Data Mining, Accounting & Finance Quiz 5

The key terms in these Finance chapters include, Accounting Information System, Data, Information, Data Mining, Business Process Diagram, Information System, Business Process


Information is ________ when two knowledgeable people independently produce the same information.

complete

verifiableCorrect

relevant

reliable


Chopra, Limited, is an Indian company operating in New York state. It offers stylized, boutique public relations services to upscale retailers in quaint New England towns. A major source of revenue is a weekly newsletter that reports on current and projected tourist travel and spending patterns. Preparation of the newsletter requires study and analysis of weather conditions, economic activity, and travel costs. It is available at an annual subscription rate of $299.99. There are currently 190 subscribers. Preparation and distribution of the newsletter costs $12,000 annually. The value of information to subscribers is

$44,998.10.

at least $300.00.Correct

less than $63.16.

$236.83.


Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of

timeliness.

relevancy.

reliability.Correct

understandability.


Using a file-oriented approach to data and information, data is maintained in

a centralized database.

a decentralized database.

many separate files.Correct

many interconnected files.


Emma Kolb is a system analyst at a manufacturing company located in the Midwest. She has been asked to analyze the company’s accounting information system and to recommend cost-effective improvements. After noting that the production and sales departments use database systems that are entirely separated, she recommends that they be combined. Implementation of her recommendation would benefit the company by contributing to data

integration.Correct

independence.

qualifications.

redundancy.


Use the chart below to answer the following questions regarding flow chart symbols.

Accounting Information System - Accounting Quiz


Which symbol would be used in a flowchart to represent a flow of data or documents?

#13

#11

#15

#12 – Correct

Information is ________ when two knowledgeable people independently produce the same information.

complete

verifiableCorrect

relevant

reliable


Chopra, Limited, is an Indian company operating in New York state. It offers stylized, boutique public relations services to upscale retailers in quaint New England towns. A major source of revenue is a weekly newsletter that reports on current and projected tourist travel and spending patterns. Preparation of the newsletter requires study and analysis of weather conditions, economic activity, and travel costs. It is available at an annual subscription rate of $299.99. There are currently 190 subscribers. Preparation and distribution of the newsletter costs $12,000 annually. The value of information to subscribers is

$44,998.10.

at least $300.00.Correct

less than $63.16.

$236.83.


Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of

timeliness.

relevancy.

reliability.Correct

understandability.


Which of the following would not be found in a data dictionary entry for a data item?

physical location of the dataCorrect

source of the data item

field type

records containing a specific data item


In order to maintain uniformity and enhance comparability, there are a fixed number of symbols that can be used in drawing a Business Process Diagram (BPD).

True

FalseCorrect


A Business Process Diagram (BPD) provides the reader an easily understood ________ of what takes place in a business process.

pictorial viewCorrect

data flow

decision flow

narrative


Merlin Frodo has been doing custom piercings and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He keeps meticulous records of every job he has ever completed. These have been entered into a computerized accounting information system that his accountant refers to as a “data warehouse.” Merlin is considering adding scarification to his service offerings and has asked his accountant to identify past customers who might be likely candidates for this service. Merlin wants his accountant to engage in

customer auditing.

data mining.Correct

customer resource management.

enterprise resource planning.


According to the ERM model, ________ help the company address all applicable laws and regulations.

compliance objectivesCorrect

operations objectives

reporting objectives

strategic objectives


Whitewater Rapids provides canoes to tourists eager to ride Whitewater River’s rapids. Management has determined that there is one chance in a thousand of a customer being injured or killed. Settlement of resulting lawsuits has an average cost of $850,000. Insurance with a $100,000 deductible is available. It covers the costs of lawsuits, unless there is evidence of criminal negligence. What is the impact of this risk without insurance?

$850,000Correct

$850

$10

$100,000


In the data flow diagram below, which process happens first?

Accounting Information System - Accounting Quiz

Respond to customer inquiries

Check inventory availability

Approve order

Take order – Correct

A ________ shows how a project will be completed, including tasks and who will perform them as well as a timeline and cost estimates.

performance evaluation

steering committee

strategic master plan

project development planCorrect


A laptop computer belonging to the Novak group was stolen from the trunk of a sales manager’s car while she was attending a conference. After reporting the theft, the manager considered the implications for the company’s network security and concluded there was little to worry about because

the data stored on the computer was encrypted. – Correct

the computer was protected by a password.

it was unlikely that the thief would know how to access the company data stored on the computer.

the computer was insured against theft.


Merlin Frodo has been doing custom piercings and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He keeps meticulous records of every job he has ever completed. These have been entered into a computerized accounting information system that his accountant refers to as a “data warehouse.” Merlin is considering adding scarification to his service offerings and has asked his accountant to identify past customers who might be likely candidates for this service. Merlin wants his accountant to engage in

customer auditing.

data mining.Correct

customer resource management.

enterprise resource planning.


According to the ERM model, ________ help the company address all applicable laws and regulations.

compliance objectivesCorrect

operations objectives

reporting objectives

strategic objectives


Whitewater Rapids provides canoes to tourists eager to ride Whitewater River’s rapids. Management has determined that there is one chance in a thousand of a customer being injured or killed. Settlement of resulting lawsuits has an average cost of $850,000. Insurance with a $100,000 deductible is available. It covers the costs of lawsuits, unless there is evidence of criminal negligence. What is the impact of this risk without insurance?

$850,000Correct

$850

$10

$100,000


A ________ shows how a project will be completed, including tasks and who will perform them as well as a timeline and cost estimates.

performance evaluation

steering committee

strategic master plan

project development planCorrect