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Creation Date: 09/07/2024

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Number of questions: 90
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An accounting information system (AIS) processes to provide users with data; benefits data; information data; transactions information; data.
_________are examples of activities that constitute inbound logistics Activities that provide post-sale support to customers Activities that help customers to buy the organization's products or services Activities that consist of receiving, storing, and distributing the materials used as inputs by the organization to create goods and/or services it sells Activities that transform inputs into final products or services.
The value of information can best be determined by the extent to which it optimizes the value chain. its usefulness to decision makers. its relevance to decision makers. the benefits associated with obtaining the information minus the cost of producing it.
Before a firm can identify the information needed to effectively manage a process, the firm must understand the process. hire programmers. obtain internet access. purchase computers and/or workstations.
Identify the party below that is not external to the firm. customer vendor government agencies CEO.
Obtaining financing from outside investors is part of which cycle? the revenue cycle the financing cycle the production cycle the payroll cycle.
An accounting information system must be able to perform which of the following tasks? collect transaction data process transaction data provide adequate controls all of True .
The AIS must include controls to ensure safety and availability of data. marketing initiatives match corporate goals. information produced from data is accurate. both A and C .
Which of the following is a true statement? Business strategy directly influences AIS, but not information technology. Information technology directly influences organizational culture, but not business strategy. Organizational culture directly influences business strategy, but not AIS. AIS directly influences information technology, but not business strategy.
The process of creating value for customers is the result of nine activities that form a value chain. capitalist operation. profitable business. information system.
Which step below is not considered to be part of the data processing cycle? data input feedback from external sources data storage data processing.
Implementation of an ERP system requires increased focus on all except which of the following controls? segregation of duties between custody, authorization, and recording data entry controls on validity and accuracy controls over access to data appropriate disposal of hard copy reports.
A delivery of inventory from a vendor, with whom a credit line is already established, would be initially recorded in which type of accounting record and as part of what transaction cycle? purchases journal; expenditure cycle general journal; expenditure cycle general ledger; expenditure cycle cash disbursements journal; production cycle.
Which of the following commonly initiates the data input process? a business activity automatic batch processing an accounting department source document a trial balance query.
The general ledger is the initial place to record general expenses. is posted in total to the general journal. only includes balance sheet accounts. summarizes the transactions in journals.
Pre-numbering of source documents helps to verify that documents have been used in order. company policies were followed. all transactions have been recorded. source data automation was used to capture data.
Source data automation refers to? using devices to capture transaction data in machine-readable form at the time the transaction is initiated. using the internet as the operating platform of an accounting information system. using an accounting information system to electronically bill customers. using an accounting information system to automate a previously manual transaction process.
Which of the following is not usually a consideration when designing a coding system?. government coding regulations standardization future expansion needs ease of reporting.
Which of the following statements regarding special journals is not true? The balances in a special journal must always reconcile to the general ledger. Special journals are used to record large numbers of repetitive transactions. Special journals are periodically summarized and posted to the general ledger. Special journals provide a specialized format for recording similar transactions.
All of the following are disadvantages of an ERP system except? ERPs frequently cause organizations to change their business processes to standardized ones. an ERP provides an integrated view of the organization's data. ERPs are relatively complex. ERP software and hardware can cost midsized companies between $10 million and $20 million dollars.
Why are threats to accounting information systems increasing? Many companies believe that protecting information is a vital strategic requirement. Many companies do not realize that data security is crucial to their survival Computer control problems are often overestimated and overly emphasized by management. Many companies have invested significant resources to protect their assets.
The first step of the risk assessment process is generally to estimate the risk probability of negative events occurring. estimate the exposure from negative events. identify the threats that the company currently faces. identify controls to reduce all risk to zero.
Duplicate checking of calculations and preparing bank reconciliations and monthly trial balances are examples of what type of control? Authorization control Preventive control Corrective control Detective control .
__________helps employees understand management's vision. It communicates company core values and inspires employees to live by those values. interactive control system belief system boundary system diagnostic control system.
The Sarbanes-Oxley Act (SOX) applies to publicly traded companies with gross annual revenues exceeding $500 million. all companies with gross annual revenues exceeding $500 million. all private and public companies incorporated in the United States. all publicly traded companies. .
The Sarbanes-Oxley Act (SOX) applies to effective risk management is comprised of just three interrelated components; control environment, risk assessment, and control activities. risk management is the sole responsibility of top management. risk management policies, if enforced, guarantee achievement of corporate objectives. risk management activities are an inherent part of all business operations and should be considered during strategy setting.
The principle of holding individuals accountable for their internal control responsibilities in pursuit of objectives belongs to which of the COSO's Internal Control Model's component? Risk assessment. Information and communication. Control environment. Control activities.
Which of the following is not one of the five principles of COBIT? covering the enterprise end-to-end enabling a holistic approach meeting stakeholder needs improving organization efficiency .
Applying the COBIT framework, governance is the responsibility of external audit. the board of directors. internal audit. management.
Mr Hùng is a staff accountant for New Electronic Company suspected that management might have used "creative accounting" to improve company performance. This situation best reflects a weakness in which aspect of the control environment, as discussed in the COSO Framework? Risk management philosophy. Methods of assigning authority and responsibility. Integrity and ethical values. Restrict access to assets.
According to the Trust Services Framework, the reliability principle of integrity is achieved when the system produces data that is complete, accurate, and valid. is available for operation and use at times set forth by agreement. can be maintained as required without affecting system availability, security, and integrity. is protected against unauthorized physical and logical access.
________ is/are an example of a preventive control. Log analysis Emergency response teams Intrusion detection Encryption.
According to the Trust Services Framework, the confidentiality principle of integrity is achieved when the system produces data that is available for operation and use at times set forth by agreement. is protected against unauthorized physical and logical access. is complete, accurate, and valid. can be maintained as required without affecting system availability, security, and integrity.
The Trust Services Framework reliability principle that states personal information should be protected from unauthorized disclosure is known as integrity. privacy. availability. security.
The Trust Services Framework reliability principle that states access to the system and its data should be controlled and restricted to legitimate users is known as security. integrity. availability. privacy.
Which of the following is not one of the three fundamental information security concepts? Security is a management issue, not a technology issue. Information security is a technology issue based on prevention. The idea of defense-in-depth employs multiple layers of controls. The time-based model of security focuses on the relationship between preventive, detective and corrective controls.
It was 8:03 A.M. when Mr Thanh, the Network Administrator for FPT Company, was informed that the intrusion detection system had identified an ongoing attempt to breach network security. By the time that Jiao had identified and blocked the attack, the hacker had accessed and downloaded several files from the company's server. Using the notation for the time-based model of security, in this case P > C P > D D > P C > P.
In the time-based model of information security, R represents the time it takes for the organization to detect that an attack is in progress. the time it takes to respond to and stop the attack. the time it takes to assess threats and select risk response. the time it takes an attacker to break through the various controls that protect the organization's information assets.
The steps that criminals take to trick an unsuspecting employee into granting them access is called scanning and mapping the target. reconnaissance social engineering. research.
Verifying the identity of the person or device attempting to access the system is an example of authorization. threat monitoring. authentication. identification.
Classification of confidential information is the responsibility of whom, according to COBIT? Management. External auditor. IT security professionals. Information owner.
________ is a random number used in the mining process to validate a new block in a blockchain. Public key Hash Private key Nonce.
Encryption is a necessary part of which information security approach? Time based defense. Defense in depth. Continuous monitoring. Synthetic based defense,.
After the information that needs to be protected has been identified, what step should be completed next? The information needs to be encrypted. The information needs to be classified in terms of its value to the organization. The information needs to be placed in a secure, central area. The information needs to be depreciated.
Information rights management software can do all of the following except authenticate individuals accessing information. specify the actions individuals granted access to information can perform. limit action privileges to a specific time period. limiting access to specific files.
Which of the following is not one of the 10 internationally recognized best practices for protecting the privacy of customers' personal information? Provide free credit report monitoring for customers. Utilize controls to prevent unauthorized access to, and disclosure of, customers' information. Inform customers of the option to opt-out of data collection and use of their personal information. Allow customers' browsers to decline to accept cookies.
If an organization asks you to disclose your social security number, yet fails to permit you to opt-out before you provide the information, the organization has likely violated which of the Generally Accepted Privacy Principles? Choice and consent. Notice. Management. Use and retention.
The first steps in protecting the privacy of personal information is to identify where sensitive information is stored. all of selects are first steps in protecting privacy. who has access to sensitive information. what sensitive information is possessed by the organization.
All of the following are associated with asymmetric encryption except private keys. public keys. no need for key exchange. speed.
An electronic document that certifies the identity of the owner of a particular public key is a digital signature. digital certificate. public key. asymmetric encryption.
The best example of an effective payroll transaction file hash total would most likely be sum of hours worked. total of employees' social security numbers. total number of employees. sum of net pay.
While this type of backup process takes longer than the alternative, restoration is easier and faster. differential backup archive cloud computing incremental backup.
The best example of an effective payroll transaction file record count would most likely be sum of FICA. total number of employees. total of employees' social security numbers. sum of net pay.
A customer forgets to include her account number on her check, and the accounts receivable clerk credited her payment to a different customer with the same last name. Which control could have been used to most effectively to prevent this error? Reasonableness test. Closed-loop verification. Duplicate values check. Reconciliation of a batch control total.
________ is a data entry input control that involves summing the first four digits of a customer number to calculate the value of the fifth digit, then comparing the calculated number to the number entered during data entry. Closed-loop verification Validity check Check digit verification Duplicate data check.
All of the following controls for online entry of a sales order would be useful except field check on the customer ID and dollar amount of the order. check digit verification on the dollar amount of the order. validity check on the inventory item numbers. concurrent update control.
The inventory tracking system shows that 12 laptops were on hand before a customer brings two laptops to the register for purchase. The cashier accidentally enters the quantity sold as 20 instead of 2. Which data entry control would most effectively prevent this error? Limit check. Sign check. Field check. Validity check.
Checksums is an example of a processing control. data entry control. output control. data transmission control.
Which of the following statements is true with regards to system availability? Which of the following statements is true with regards to system availability? Proper controls can maximize the risk of threats causing significant system downtime. Human error does not threaten system availability. Threats to system availability can be completely eliminated. Threats to system availability include hardware and software failures as well as natural and man-made disasters.
What is the most effective way to ensure information system availability? Frequent backups. Maintain a hot site. High bandwidth. Maintain a cold site.
The ________ normally triggers the customer payment recording process. remittance advice sales invoice deposit slip customer monthly statement.
A way to incorporate the advantages of Electronic Data Interchange with the Electronic Funds Transfer is e-commerce. Financial Electronic Data Interchange. to use procurement cards. an electronic lockbox.
Checking the quantity of inventory available before accepting a sales order is a good practice for all of the reasons except to update inventory records to reduce the quantity available by the number of items ordered. verify the accuracy of the perpetual inventory records. determine which items may need to be back ordered. inform the customer about availability and delivery times.
In the ________ method of tracking accounts receivable, customers pay according to the amount showing on their monthly statement and payments are applied against the total account balance. balance forward open-invoice specific identification remittance advice.
The activities involved in soliciting and processing customer orders within the revenue cycle are known as the sales order entry process. revenue process. shipping order process. marketing process.
Which of the decisions below is not ordinarily found as part of the revenue cycle What are the optimal prices for each product or service? What credit terms should be offered? How often should accounts receivable be subjected to audit? How can customer payments be processed to maximize cash flows?.
Regularly reviewing an accounts receivable aging report can help management do what? determine whether the firm's pricing policy is effective determine whether changes are needed in the firm's credit policies identify customers who have not purchased anything lately improve the speed which customers make payments.
A monthly statement sent to customers serves a control purpose by reminding customers of the balance due and due date. summarizing invoices and amounts due for customers. providing an opportunity for customers to verify the balance owed and activity on the account. triggering the process to record a customer payment.
Matching customer account numbers and inventory item numbers to the numbers in the customer and inventory master files is an example of a reasonableness test. completeness test. field check. validity check.
Segregation of duties controls dictates that the collection and recording functions be kept separate from each other. However, the accounts receivable department needs to know when customers pay their invoices. What is a solution to this potential internal control problem? Have customers send a remittance advice with their payment. Have mailroom personnel prepare a remittance list which can be forwarded to accounts receivable. Establish a lockbox arrangement with a bank. all of the above.
Economic Order Quantity (EOQ) includes several variables that must be taken into consideration when calculating the optimal order size. One variable, the costs associated with holding inventory, is referred to as ordering costs. stockout costs. carrying costs. the reorder point.
What is the best way to prevent the acceptance of goods that were never ordered? Enforce an appropriate conflict of interest policy in place. Match the packing slip to a purchase order before accepting delivery. Order only from approved vendors. Require specific authorization from the purchasing manager before accepting any goods.
Which electronic files are either read or updated when goods are ordered from a vendor open purchase orders and accounts payable vendors and accounts payable inventory, vendors, and accounts payable inventory, vendors, and open purchase orders.
Materials requirements planning (MRP) is able to compute exactly the cost of purchasing by taking into account all costs associated with inventory carrying. None of select is correct. requires vendors to deliver inventory to the production site exactly when needed and in the correct quantities. reduces the uncertainty about when materials are needed, thereby reducing the need to carry large levels of inventory.
Just-In-Time (JIT) inventory is best characterized by Select one: frequent deliveries of large quantities to be held at the work centers. less frequent deliveries of large quantities of goods to central receiving. frequent deliveries of smaller quantities of items to the work centers. infrequent bulk deliveries of items directly to work centers.
Which of the following is generally not shown on a receiving report? price of the items counted and inspected by quantity of the items purchase order number.
Which of the following is not an advantage of a voucher system Select one: Disbursement vouchers may be pre-numbered and tracked through the system. Several invoices may be included on one voucher, reducing the number of checks. The time of voucher approval and payment can be kept separate. It is a less expensive and easier system to administer than other systems.
Vendor invoices are approved by the ________, which reports to the ________. Select one: purchasing department; controller accounts payable department; controller purchasing department; treasurer accounts payable department; treasurer.
If duties are properly segregated, the authorization function is performed by ________, the recording function is performed by ________, and cash handling is performed by the ________. purchasing; cashier; accounts payable purchasing; accounts payable; cashier accounts payable; purchasing; cashier purchasing; accounts payable; treasurer.
Evaluated receipt settlement approves payment of vendor invoices after reconciling the purchase order and the vendor invoice. disbursement voucher receiving report. sales invoice.
How does an MRP inventory system reduces inventory levels? by computing the exact costs of purchasing and carrying inventory by reducing the uncertainty regarding when materials are needed none of the above by receiving materials exactly when needed and in exact quantities.
To control for risks associated with the threat of inventory loss, who should have primary responsibility for work-in-process inventories? a factory supervisor the inventory stores department purchasing the receiving department.
"Pull manufacturing" is also known as just-in-time manufacturing system (JIT). the economic order quantity (EOQ) system. ahead-of-time production implementation (ATPI). manufacturing resource planning (MRP).
A master production schedule is used to develop detailed daily reports on direct labor needs. timetables of daily production and determine material needs. reports on daily production and material usage. None of the above is correct.
________ is an efficient way to track and process information about raw materials used in production. Identifying materials with bar codes or RFID tags Job-order costing A just-in-time inventory system A materials resources planning inventory system.
Direct labor must be tracked and accounted for as part of the production process. Traditionally, direct labor was tracked using ________ but an AIS enhancement is to use ________ to record and track direct labor costs. time cards; electronic time entry terminals employee earnings records; job-time tickets move tickets; coded identification cards job-time tickets; coded identification cards.
Labor productivity is measured by the quantity produced divided by the labor time required to produce it. All other things held constant, an increase in labor productivity will increase throughput by increasing productive capacity. increasing yield. increasing productive processing time. increasing all components of throughput.
Mrs Thu and operates a small deli in Sai Gon. Each afternoon, she prepares a shopping list that describes the quantity and variety of ingredients that she will purchase in the evening from her wholesaler. The shopping list is an example of a production order. bill of materials. materials requisition. operations list.
The expenses associated with a product recall are ________ costs internal failure prevention inspection external failure.
Identify one control that can be used to mitigate the threat of under-production. analysis of warranty and repair costs encryption insurance production planning systems.
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