QUIZ NO. 1 Multiple-Choice Questions 1. Which of the following is NOT a financial transaction? a. purchase of products b. cash receipts c.

update valid vendor file d. sale of inventory 2. The following are subsystems of the Accounting Information System, EXCEPT a. Transaction Processing System. b. Human Resources System. c. General Ledger/Financial Reporting System. d. Management Reporting System. 3. Which of the following is NOT a purpose of the Transaction Processing System? a. managing and reporting on the status of financial investments b. converting economic events into financial transactions c. distributing essential information to operations personnel to support their daily operations d. recording financial transactions in the accounting records 4. The objectives of the data collection activity of the general model for Accounting Information Systems are to collect data that are a. relevant and redundant. b. efficient and objective. c. efficient and redundant. d. efficient and relevant. 5. Which of the following is NOT a characteristic of effective information? a. relevance b. accuracy c. summarization d. precision 6. Which of the following is NOT a database management task? a. retrieval b. storage c. summarization d. deletion 7. When viewed from the highest to most elemental level, the data hierarchy is a. attribute, record, file. b. record, attribute, key.

c. file, record, attribute. d. file, record, key. e. key, record, file. 8. Which is NOT an accountants primary role in information systems? a. system user b. system auditor c. system designer d. system programmer 9. Which of the following is NOT an objective of all information systems? a. support for the stewardship function of management b. support for management decision making c. support for the day-to-day operations of the firm d. all of the above are objectives 10. Which of the following best describes the activities of the materials management function? a. purchasing, receiving, and inventory control b. receiving, sales, distribution, and purchasing c. receiving, storage, purchasing, and accounts payable d. purchasing, receiving, and storage e. purchasing, storage, and distribution 11. Which of the following best describes the activities of the production function? a. maintenance, inventory control, and production planning b. production planning, quality control, manufacturing, and cost accounting c. quality control, production planning, manufacturing, and payroll d. maintenance, production planning, storage, and quality control e. manufacturing, quality control, and maintenance 12. Which of the following best describes the activities of the accounting function? a. inventory control, accounts payable, fixed assets, and payroll b. fixed assets, accounts payable, cash disbursements, and cost accounting c. purchasing, cash receipts, accounts payable, cash disbursements, and payroll d. inventory control, cash receipts, accounts payable, cash disbursements, and payroll e. inventory control, cost accounting, accounts payable, cash disbursements, and payroll 13. Which statement best describes the issue of distributed data processing (DDP)? a. The centralized and DDP approaches are mutually exclusive; an organization must choose one approach or the other. b. The philosophy and objective of the organizations management will determine the extent of DDP in the firm. c. In a minimum DDP arrangement, only data input and output are distributed, leaving the tasks of data control, data conversion, database management, and data processing to be

centrally managed. d. The greatest disadvantage of a totally distributed environment is that the distributed information processing unit locations are unable to communicate and coordinate their activities. e. Although hardware (such as computers, database storage, and input/output terminals) can be effectively distributed, the systems development and maintenance tasks must remain centralized for better control and efficiency. 14. Which of the following is a disadvantage of distributed data processing? a. End-user involvement in systems operation is decreased. b. Disruptions due to mainframe failures are increased. c. The potential for hardware and software incompatibility across the organization is increased. d. The time between project request and completion is increased. e. All of the above are disadvantages.