1. Accounting information systems:
a. Are always computerized.
b. Report only financial information.
c. Are an information system that records, processes, and reports on transactions to provide financial and non financial information for decision making and control.
d. Require a CITP designation to understand.

2. Which of the following is not a characteristic of useful information?
a. Predictive value
b. Timeliness
c. Verifiable
d. Expensive to generate

3. Which of the following is considered to be mandatory information required by a regulatory body?
a. U.S. tax return
b. The cost to produce a textbook
c. The number of U.S. flags that are sold on July 4
d. The cost to build an all-new Starbucks restaurant in Shanghai, China

4. The correct order of effects in the value chain is:
a. Inbound logistics → Operations → Service.
b. Inbound logistics → Outbound logistics → Marketing and Sales.
c. Inbound logistics → Operations → Outbound logistics.
d. Inbound logistics → Operations → Marketing and Sales.

5. What 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 Auditor (CISA)

6. A supply chain:
a. Supplies bicycle chains.
b. Refers to the flow of materials, information, payments, and services.
c. Is similar in function and purpose to the value chain.
d. Does not apply to a service firm like an accounting firm.

7. Customer relationship management software does not include information about:
a. Current customers.
b. Prospective customers.
c. Former customers.
d. Current suppliers.

8. 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.

9. According to a recent study, the IT strategic role that has the greatest impact on shareholder value is:
a. Informate.
b. Digitize.
c. Automate.
d. Transform.

10. The income statement account most likely affected by an AIS investment in supply chain management software would be:
a. Revenues.
b. Cost of goods sold.
c. Selling, general, and administrative expenses.
d. Unearned revenue.