Test Bank for Accounting Information Systems 9e James A. Hall,
All Chapters Chapter 1—The Information System: An Accountant’s Perspective
TRUE/FALSE
1. Information is a business resource.
ANS: T PTS: 1
2. IT outsourcin
...
Test Bank for Accounting Information Systems 9e James A. Hall,
All Chapters Chapter 1—The Information System: An Accountant’s Perspective
TRUE/FALSE
1. Information is a business resource.
ANS: T PTS: 1
2. IT outsourcing is location-independent computing.
ANS: F PTS: 1
3. Transaction processing systems convert non-financial transactions into financial transactions.
ANS: F PTS: 1
4. Information lacking reliability may still have value.
ANS: F PTS: 1
5. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting.
ANS: F PTS: 1
6. The Management Reporting System provides the internal financial information needed to manage a
business.
ANS: T PTS: 1
7. Most of the inputs to the General Ledger System come from the Financial Reporting System.
ANS: F PTS: 1
8. When preparing discretionary reports, organizations can choose what information to report and how to
present it.
ANS: T PTS: 1
9. Retrieval is the task of permanently removing obsolete or redundant records from the database.
ANS: F PTS: 1
10. Systems development represents 80 to 90 percent of the total cost of a computer system.
ANS: F PTS: 1
11. The database administrator is responsible for the security and integrity of the database.
ANS: T PTS: 1
Accounting Information Systems, 9e – Test Bank, Chapter 1
12. Custom software is completely finished, tested, and ready for implementation.
ANS: F PTS: 1
13. The internal auditor represents the interests of third-party outsiders.
ANS: F PTS: 1
14. Information Technology (IT) audits can be performed by both internal and external auditors.
ANS: T PTS: 1
15. Custom software is the most affordable systems development option.
ANS: F PTS: 1
16. A database is a collection of interconnected computers and communications devices that allows users to
communicate, access data and applications, and share information and resources.
ANS: F PTS: 1
17. Systems maintenance consumes the majority of a system’s total costs.
ANS: T PTS: 1
18. Cloud computing is a practice in which the organization sells its IT resources to a third-party outsourcing
vendor then leases back IT services from the vendor for a contract period.
ANS: F PTS: 1
19. A potential benefit of cloud computing is that the client firm does not need to know where its data are
bring processed.
ANS: F PTS: 1
20. One of the greatest disadvantages of database systems is that all data is always available to all users.
ANS: F PTS: 1
21. Under SOX legislation public accounting firms are no longer allowed to provide consulting services to
audit clients.
ANS: T PTS: 1
22. One member of a company’s audit committee must be an independent CPA.
ANS: F PTS: 1
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