1.) Which of the following is true?a) An AIS must be computerized to be usefulb) An AIS always produces useful informationc) An AIS always produces financial informationd) none of these 2.) Which of the following is true about the terms “data”and “information” within the context of Chapter 1?a) The terms are exactly the sameb) The terms are always exact oppositesc) Some “data” can also be “information”d) none of these 3.) Most AISs perform all of these functions except:a) Collect raw accounting datab) Store accounting data for future usesc) Process data into useful informationd) AISs perform all of these functions 4.) Which of the following is one of the five interactingcomponents of an accounting information system?a) Fuzzy logicb) Testingc) Certificationd) Procedurese) Internet 5.) A computer network spanning regional, national, orglobal areas best describes which of the following?a) LANb) WANc) ESPNd) DSLe) ISDN 6.). Documentation includes:a) All flowcharts, narratives, and other writtencommunications associated with the information systemb) All written communications associated with an accountinginformation system except flowcharts and data flow diagramsc) All flowcharts, narratives, and other writtencommunications associated with an accounting information system, except forprogram flowcharts, decision tables, and pseudocoded) Flowcharts and data flow diagrams only 7.) A system flowchart is a block diagram that:a) Is used only by auditorsb) Is used primarily when document flowcharts cannot be usedc) Depicts the flow of computer systems in an organizationd) Depicts the flow of data through a computerizedaccounting information system

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1.) Which of the following is true?
a) An AIS must be computerized to be useful
b) An AIS always produces useful information
c) An AIS always produces financial information
d) none of these

2.) Which of the following is true about the terms “data”
and “information” within the context of Chapter 1?
a) The terms are exactly the same
b) The terms are always exact opposites
c) Some “data” can also be “information”
d) none of these

3.) Most AISs perform all of these functions except:
a) Collect raw accounting data
b) Store accounting data for future uses
c) Process data into useful information
d) AISs perform all of these functions

4.) Which of the following is one of the five interacting
components of an accounting information system?
a) Fuzzy logic
b) Testing
c) Certification
d) Procedures
e) Internet

5.) A computer network spanning regional, national, or
global areas best describes which of the following?
a) LAN
b) WAN
c) ESPN
d) DSL
e) ISDN

6.). Documentation includes:
a) All flowcharts, narratives, and other written
communications associated with the information system
b) All written communications associated with an accounting
information system except flowcharts and data flow diagrams
c) All flowcharts, narratives, and other written
communications associated with an accounting information system, except for
program flowcharts, decision tables, and pseudocode
d) Flowcharts and data flow diagrams only

7.) A system flowchart is a block diagram that:
a) Is used only by auditors
b) Is used primarily when document flowcharts cannot be used
c) Depicts the flow of computer systems in an organization
d) Depicts the flow of data through a computerized
accounting information system

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