Multiple-Choice Questions

1. The process by which a financial transaction is recorded so that its flow through the system can be followed is called:
a) Financial shadowing
b) Managerial trace technique
c) Concatenation
d) Audit trail

2. Justifying expenditures for new technologies is especially difficult because:
a) You do not know how many jobs will be affected
b) Expenses are often recurring and are difficult to estimate
c) Many benefits are intangible and are not easily known or measured
d) Justifying a new technology is no different from any other capital budgeting problem

3. The essential steps in performing a systems study are (in order of occurrence):
a) Analysis, design, implementation and initial operation, follow up
b) Design, planning, follow up, analysis, and implementation
c) Planning, system specification, analysis, production, implementation
d) Planning, analysis, design, implementation, and follow up

4. What is the first step to be performed by most organizations in their accounting cycles?
a) Recording business transactions in a journal
b) Preparing a trial balance
c) Recording closing entries in a journal
d) Preparing transaction source documents
e) none of the above

5. Which systems study step is normally performed first?
a) Design
b) Initial operation
c) Follow up
d) Analysis
e) none of the above

6. The purpose of a company firewall is to:
a) Guard against spoofing
b) Assist the IETF
c) Deny computer hackers access to sensitive data
d) all of the above

7. The term data encryption refers to:
a) Storing data in safe places called "crypts"
b) Transforming data into secret codes
c) Scrambling data in random ways that cannot be unscrambled
d) none of these

8. An advantage of an extranet is that:
a) It can disseminate information corporate wide
b) It can be accessed by selected trading partners
c) Users can employ common web browsers to access information in them
d) all of the above

9. Another name for an Internet domain address is its:
a) URL
b) ISP
c) email address
d) IETF

10. Business process reengineering efforts sometimes fail because:
a) Management gets too involved in the process
b) Management is too optimistic regarding its expectations from its implementation
c) Management support can never overcome employee resistance
d) Employees will never accept change

11. The sales process begins with:
a) Placing an order with a vendor
b) A customer order for goods or services
c) Production of goods or services
d) Delivery of goods or services

12. The primary objective in processing revenues is to:
a) Sell as many goods as possible
b) Achieve timely and efficient cash collection
c) Maximize an organization's sales orders
d) Only sell goods to customers who can pay their bills

13. An important input to the sales process is:
a) A customer sales order
b) The cash forecast
c) Aged accounts receivable information
d) A receiving report

14. Which of the following is not an example of a source document?
a) Receiving report
b) Purchase order
c) Sales order
d) Aging report

15. Inputs to transaction processing systems:
a) Are always in hard copy
b) Are best when input in a graphical format
c) May be in an electronic format when an EDI system is used
d) May never be audio

16.Integrated accounting software programs generally include all of the following, except:
a) Graphic reporting capabilities
b) Internet connectivity
c) One standardized chart of accounts
d) The ability to handle multiple companies

17. Enterprise-wide AISs:
a) Almost never pay for themselves
b) Do not include many more features than middle-range accounting software packages
c) Are seldom used by multinational organizations
d) Integrate an organization's financial functions with its other functional areas

18. Training and change management activities:
a) Take place just before the go live stage of implementation
b) Are most effective when conducted throughout design, go live, and post-implementation follow-up
c) Include technical training only
d) Do not include the design of user interfaces

19. Which of the following software packages is not an example of a middle-range AIS?
a) Great Plains Dynamics
b) MAS 90
c) SAP R/3
d) Solomon

20. Many organizations purchased new AISs during the 1990's:
a) Because of the need for Year 2000 compliance
b) Because they wanted Internet connectivity
c) In order to take advantage of opportunities for reengineering
d) all of the above