Multiple Choice Questions (20 points, 2 pts each)

Highlight your selected answer (singular) in yellow.

1) Information is

basically the same as data.

raw facts about transactions.

more valuable to decision-making than data.

data that has been organized and processed so that it is meaningful.

B and C

C and D

None of the above

2) An employee receives a paycheck prepared in the payroll process. Which one of the following diagrams represents this activity?

a.

b.

c.

d.

3) A specific human error in your bill payment process causes payments for inventory to be late to 50% of your vendors that period.It is estimated that when this failure occurs, it costs you $25,000.The error occurs in about 20% of your billing periods.Youre manager wants you to address this ASAP.You did your research and found three possible controls you could implement to help reduce the problem.Control A reduces the occurrence of the error to 12% of the pay periods and costs $3500 per period.Control B reduces the error to 5% of the pay periods and has a one-time implementation cost of $17500.Control C reduces the occurrence of the error to 8% of the pay periodsand costs $5200 per period.Which control are you going to recommend to your manager?

Control A

Control B

Control C

None of the controls

4) An accounting information system, by definition:

contains accurate data.

contains useful data.

involves information technology.

turns data into information.

B and D.

All of the above.

None of the above.

5) A well-planned and well-drawn context data flow diagram will include how many processes?

One

Between 5 and 7

Between 2 and 7, but no more than 7

As many as are needed to accurately depict the process being documented

6) Five electronic gadgets were removed from XYZ Companys warehouse without a picking ticket.However, the inventory clerk accurately recorded the inventory records to show the decrease in inventory.This is an instance of an:

inaccurate input

incomplete input

invalid input

incomplete update

inaccurate update

7) Given that a control provides a reasonable assurance that an objective is met, there will always be a(n) ________, even after the control is implemented.

impact

residual risk

inherent risk

audit trail

A and B

B and C

None of the above

8) ABC Company had 43 sales yesterday; however, the accounting information system database recorded 45 sales.This is an instance of an:

inaccurate input

incomplete input

invalid input

incomplete update

inaccurate update

9) In the following DFD, what data flow triggers the generation of the customer record?

Request for the order data

Order data

ID, Name

Customer ID

None of the above

10) The purchase order belongs in what transaction cycle?

Revenue cycle

Expenditure cycle

Payroll cycle

Production Cycle

A and B

None of the above