Accounting Information Systems The Processes And Control 2nd Edition By Leslie Turner – Test Bank

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Accounting Information Systems The Processes And Control 2nd Edition By Leslie Turner – Test Bank

 

 

ACCOUNTING INFORMATION SYSTEMS/2e

TURNER / WEICKGENANNT

Test Bank:  CHAPTER 2: Foundational Concepts of the AIS

 

 

 

NOTE: All new or adjusted questions are in red.  New questions are identified by the letter A as part of the question number; adjusted questions are identified by the letter X as part of the question number.

 

 

End of Chapter Questions:

 

 

  1. Which of the following statements is not true?
  2. Accounting information systems must maintain both detail and summary information.
  3. Business processes may vary from company to company.
  4. Regardless of the extent of computerization, all accounting information systems must capture data from the transactions within business processes.
  5. Business processes categorized as expenditure processes are not intended to be processes that serve customers.

 

  1. In a manual system, an adjusting entry would most likely be initially recorded in a:
  2. Special journal
  3. Subsidiary ledger
  4. General journal
  5. General ledger

 

  1. Which of the following is not a disadvantage of maintaining legacy systems?
  2. There are fewer programmers available to support and maintain legacy systems.
  3. They contain invaluable historical data that may be difficult to integrate into newer systems.
  4. Hardware or hardware parts may be unavailable for legacy systems.
  5. It can be difficult to integrate various legacy systems into an integrated whole.

 

  1. Which of the following is not an advantage of cloud computing when compared to client-server computing?
  2. It is more calable.
  3. It is less costly.
  4. It increases the amount of computer infrastructure in a company.
  5. It has expanded availability.

 

(Previous #4)

  1. Which of the following is a disadvantage of purchased accounting software, compared with software developed in-house?
  2. It is custom designed for that company.
  3. It is less costly.
  4. The implementation time is shorter.
  5. There are fewer bugs.

(Previous #5)

  1. Which of the following is not a method of updating legacy systems?
  2. Enterprise application integration
  3. Backoffice ware
  4. Screen scraper
  5. Complete replacement

 

(Previous #6)

  1. When categorizing the accounting software market, a company with revenue of $8 million would most likely purchase software from which segment?
  2. Small company
  3. Midmarket
  4. Beginning ERP
  5. Tier 1 ERP

 

(Previous #7)

  1. An IT system that uses touch-screen cash registers as an input method is called:
  2. Electronic data interchange
  3. E-business
  4. Point-of-sale system
  5. Source documents and keying

 

(Previous #8)

  1. When similar transactions are grouped together for a specified time for processing, it is called:
  2. Online processing
  3. Real-time processing
  4. Batch processing
  5. Group processing

 

(Previous #9)

  1. Which of the following is not correct regarding the differences in the ways that real-time systems differ from batch systems?

 

    Real-Time Systems                                                                  Batch Systems

  1. Must use direct access files.                                                Can use simple sequential files.
  2. Processing occurs on demand.                                           Processing must be scheduled.
  3. Processing choices are menu-driven.                              Processing is interactive.
  4. Supporting documents are prepared                              Supporting documents are prepared

as items are processed.                                                        during scheduled runs.

 

(Previous #10)

  1. In documenting systems, which pictorial method is described as a method that diagrams the actual flow and sequence of events?
  2. Systems flowchart
  3. Process map
  4. Data flow diagram
  5. Entity relationship diagram

 

(Previous #11)

  1. (CMA Adapted) A company in Florida provides certified flight training programs for aspiring new pilots of small aircraft.  Although awarding a pilot’s license requires one-on-one flight time, there is also much preparatory training conducted in classroom settings.  The company needs to create a conceptual data model for its classroom training program, using an entity-relationship diagram.  The company provided the following information:

 

Floridian Flight, Inc. has 10 instructors who can tach up to 30 pilot trainees per class. The company offers 10 different courses, and each course may generate up to  eight classes.

Identify the entities that should be included in the entity-relationship diagram:

  1. Instructor, Floridian Flight Inc., Pilot Trainee
  2. Instructor, Floridian Flight Inc., Course, Enrollment, Class
  3. Floridian Flight Inc., Enrollment, Course, Class, Pilot Trainee
  4. Instructor, Course, Enrollment, Class, Pilot Trainee

 

ANSWERS TO QUESTIONS 1-12 (FROM THE TEXTBOOK)

  1. D                     4.    A                     7.    B                   10.    C
  2. C                      5.    A                     8.    C                   11.    B
  3. B                      6.    B                      9.    C                   12.    D

 

 

TEST BANK – CHAPTER 2

 

 

  1. IT systems have dramatically affected many aspects of business.  Which of the following is not one of the changes?
  2. Data input into accounting information systems.
  3. The way that data is processed in the system.
  4. The accounting information that is reported by the system.
  5. The outputs of the system.

 

  1. Which of the following statements is false?
  2. Technology has allowed many industries to provide better, faster, and higher quality information.
  3. Business process must adapt to the new technologies.
  4. Business processes, IT systems, and the accounting information system are inextricably linked.
  5. IT systems have not had a major impact on the input of data into the accounting information system.

 

  1. The system that captures, records, processes, and reports accounting information is referred to as a(n):
  2. Accounting information system
  3. Management information system.
  4. System of business processes.
  5. Client-server system.

 

  1. Information captured by a system is generated by financial transactions:
  2. Within the organization only.
  3. Between an organization and its customers only.
  4. Between an organization and its vendors only.
  5. Within the organization and between an organization and its customers and vendors.

 

  1. A prescribed sequence of work steps completed in order to produced a desired result for an organization is the definition of:
  2. Accounting information system
  3. Business process
  4. Business transaction
  5. Financial statement

 

  1. Which of the following statements, related to a business process, is not a true statement?
  2. It has a well-defined beginning and end.
  3. Usually takes a long-period of time to complete.
  4. Occur so that the organization may serve its customers.
  5. Is initiated by a particular kind of event.

 

  1. When a transaction occurs there are systematic and defined steps that take place within the organization to complete all of the underlying tasks.  These “defined steps” are referred to as:
  2. Business Processes
  3.     Financial Transactions
  4. Accounting Information Systems
  5. Customer Service Arenas

 

  1. The substance of an accounting information system includes:
  2. Initiate an event
  3. Steps taken to create a business process
  4. Capturing, recording, processing and reporting accounting information
  5. Selection of client-server computing

 

  1. Which of the following is not one of the general categories of business processes?
  2. Revenue Processes
  3. Inventory Processes
  4. Expenditure Processes
  5. Conversion Processes

 

  1. Which of the following correctly states the order of steps in a manual accounting system?
  2. Source Documents, Journals, Ledgers, Reports
  3. Journals, Source Documents, Ledgers, Reports
  4. Source Documents, Ledgers, Journals, Reports
  5. Ledgers, Reports, Journals, Source Documents

 

  1. Which of the following statements is true?
  2. Most accounting systems in use today are computerized systems.
  3. All accounting systems, whether computerized or not, must capture data, process the data, and provide outputs
  4. It is not necessary for an accounting system to maintain summary information if it maintains detail information.
  5. The general ledger will be summarized and then posted to the subsidiary ledger.

 

  1. The choice of accounting information system will depend on all of the following except:
  2. The size of the organization
  3. The philosophy of management
  4. The ability of the company to capture information
  5. The nature of its processes

 

  1. The record that captures the key data of a transaction is called:
  2. Turnaround document
  3. Ledger
  4. Journal
  5. Source document

 

  1. In order to organize the study of accounting information systems, the authors divided the systems in place into three categories.  Which of the following is not one of those categories?
  2. Manual Systems
  3. Client-Server Systems
  4. Legacy Systems
  5. Integrated IT Systems

 

  1. Which of the following statements is  true related to manual systems?
  2. Few small organizations use computerized accounting systems.
  3. Computerized systems rely on some manual record keeping.
  4. Most medium sized organizations rely on manual accounting systems.
  5. When using a computerized system, it is not necessary to understand the manual system.

 

  1. Which of the following is an example of a source document?
  2. Purchase order
  3. Employee time card
  4. Cash receipts
  5. All of the above are examples of source documents.

 

  1. A source document serves important functions in the accounting system.  Which of the following is not one of those functions?
  2. Provides the output data for financial reports
  3. Serves as part of the permanent audit trail
  4. Triggers beginning of business processes
  5. Provides the input data to record the transaction

 

  1. An output of the accounting system that can be used as an input in a different part of the accounting system is referred to as:
  2. Round table document
  3. Source document
  4. Turnaround document
  5. Financial report

 

  1. Which of the following provides details for the entire set of accounts used in the organization’s accounting systems?
  2. General Ledger
  3. Special Journal
  4. Subsidiary Ledger
  5. General Journal

 

  1. The book of original entry for any transaction not recorded in a special journal is the:
  2. Special Ledger
  3. General Ledger
  4. General Journal
  5. Subsidiary Journal

 

  1. Special journals are created, or established, to record specific types of transactions.  Which of the following is not one of the special journals?
  2. Fixed Asset Journal
  3. Cash Receipts Journal
  4. Purchases Journal
  5. Payroll Journal

 

  1. The purpose of this item is to maintain the detailed information regarding routine transactions, with an account established for each entity.
  2. Purchases Journal
  3. Subsidiary Ledger
  4. General Journal
  5. General Ledger

 

  1. Which of the following items is not one of the manual records in a manual accounting system?
  2. Journals
  3. Ledgers
  4. Source Documents
  5. Trial Balance

 

  1. Many of the accounting software systems consist of modules. Which of the following statements is false related to these modules?
  2. Are separate programs for different business processes
  3. Include accounts receivable, payroll, and accounts payable
  4. Have essentially the same purpose as special journals and special ledgers
  5. Are referred to as special purpose systems

 

  1. An existing system within the organization that uses older technology is called a(n):
  2. Manual system
  3. Legacy system
  4. Client-server system
  5. Modern integrated system

 

  1. Which of the following statements does not refer to a legacy system?
  2. Includes source documents, journals, and ledgers.
  3. Have been in place for may years.
  4. Much time has been spent developing, maintaining, and customizing the system.
  5. Often based on old or inadequate technology.

 

  1. Organizations are often reluctant to abandon their legacy systems because:
  2. The system was customized to meet specific needs.
  3. The process to replace the systems is inexpensive.
  4. The time involved for replacement is minimal.
  5. Information contained on the system is outdated.

 

  1. Which of the following is not one of the advantages of maintaining the legacy systems?
  2. The system often supports unique business processes not inherent in generic accounting software.
  3. The system contains invaluable  historical data that may be difficult to integrate into a new system.
  4. The system is well supported and understood by existing personnel who are already trained to use the system.
  5. The system has been customized to meet specific needs of the organization.

 

  1. Which of the following is one of the disadvantages of maintaining the legacy systems?
  2. Often support unique business processes not inherent in generic accounting software.
  3. May not easily run on new hardware.
  4. Contain invaluable historical data.
  5. Existing personnel are already trained to use the system.

 

  1. Which of the following is not one of the disadvantages of maintaining the legacy systems?
  2. They become difficult to integrate when companies merge or acquire other companies.
  3. They are often difficult to modify to make them web based.
  4. They are well supported and understood by existing personnel.
  5. They lack adequate, up-to-date supporting documentation.

 

  1. Frontware, which adds modern, user friendly screen interfaces to legacy systems are referred to as:
  2. Turnaround software
  3. Graphical user face
  4. COBOL
  5. Screen scrapers

 

  1. Instead of completely replacing their systems, organizations often try to use new technology to enhance existing systems.  Which of the following is not one of the approaches taken by these organizations?
  2. Enterprise application integration
  3. Screen scrapers
  4. Enterprise resource planning
  5. Using interface bridges

 

  1. A set of processes, software and hardware tools, methodologies, and technologies to integrate software systems is referred to as:
  2. Enterprise application integration
  3. Client-server interface
  4. Screen scrapers
  5. Complete integration

 

  1. An use of enterprise application integration would include:
  2. Bridge the legacy systems to the new hardware and software.
  3. Intended to consolidate, connect, and organize all of the computer applications, data, and business processes.
  4. Allow real-time exchange and management of all the critical information.
  5.     All of the listed items would be included.

 

  1. Which of the following statements is false?
  2. When a modern, integrated system is purchased, they are often modified by the IT staff to meet the needs of the organization.
  3. New programs sold by software development companies are not as user friendly as the legacy systems.
  4. Purchased software has a lower cost, shorter implementation time, and fewer bugs.
  5. The modern, integrated systems typically use the latest technology.

 

35A.   The modern integrated systems discussed by the authors include different types of architectures or model.  Which of the following is not one of those models?

  1. Client-server model
  2. Legacy accounting
  3. Cloud computing
  4. All of the listed are examples of the modern integrated systems.

 

35B.   This type of computing means that there are two types of copmuters networked together to accomplish the application processing.

  1. Cloud computing
  2. IT-Software computing
  3. Client-Server computing
  4. Web-Server computing

 

35C.   The advantage of client-server computing is:

  1. PC clients perform as “smart” terminals that can accomplish some share of the process tasks.
  2. The server is housed at the client’s location and is maintained by the client.
  3. The client PC works with the entire database, whereas the server works with only a portoin of the client data.
  4. Each of the parts – the client PC and the server – work separately and are viewed separately by the users.

 

35D.   Which of the following is not a main characteristic of client-server system?

  1. Client and server computer are networked together.
  2. Individual parts of processing are shared between the server and the client.
  3. The system appears to users to be one integrated whole.
  4. The client does not participate in the processing or data manipulation.

 

35E.    Which of the following statements is false related to client-server computing?

  1. Tasks are assigned to either the server or the client based on the size of the task.
  2. A large number of client-server applications are moving toward a web-based model.
  3. The client is more efficient at manipulating subsets of data.
  4. The server is more efficient in managing large databases.

 

35F.    Which of the following is not an example of cloud computing?

  1. The current method that Apple now uses to manage iTunes.
  2. Google’s Gmail – e-mail software.
  3. Purchasing songs from iTunes and downloading those songs onto your computer.
  4. Email accounts such as Yahoo.

 

35G.   Which of the following is not an advantage to a cloud model of e-mail?

  1. It may be accessed and read from any device you use.
  2. You are not required to maintain e-mail software and data storage.
  3. Costs associated with maintaining are higher but are more controllable.
  4. Fewer IT employees would be needed.

 

35H.   There are a number of cloud computing services, and one of those services is called SaaS.  This acronym stands for:

  1. Software as a Service
  2. Systems at a Server
  3. Server adding another System
  4. Software as actual Services

 

35I.    There are a number of advantages to cloud computing.  Which of the following is one of those advantages?

  1. As a company grows, it can easily purchase new capacity from the cloud provider.
  2. Once the software and data are stored in the cloud, it can be accessed by multiple devices from multiple locations.
  3. The company has a reduced need for servers and data storage.
  4. All of the above.

 

  1. There were four market segments identified by the authors in chapter 2.  Which of the following is not one of those segments.
  2. Small Company Systems
  3. Midmarket Company Systems
  4. Legacy Company Systems
  5. Beginning ERP Systems

 

  1. A company with revenue of $50 million would be most likely to purchase software from which one of the four market segments?
  2. Midmarket Segment
  3. Beginning ERP Segment
  4. Tier 1: ERP Segment
  5. Integrated Segment

 

  1. Quickbooks and Peachtree would be part of which market segment of accounting software?
  2. Small Segment
  3. Midmarket Segment
  4. Beginning ERP Segment
  5. Legacy Segment

 

  1. SAP and PeopleSoft are part of which market segment of accounting software?
  2. Small Segment
  3. Midmarket Segment
  4. Beginning ERP Segment
  5. Tier 1 ERP Segment

 

  1. Five different input methods were identified by the authors.  Which of the following is one of those input methods.
  2. EDI
  3. ERP
  4. EAI
  5. EPS

 

  1. Source documents are usually preprinted and sequentially prenumbered.  Which of the following is not one of the reasons for this prenumbering and preprinting?
  2. To have an established format to capture data
  3. To assure that there are no duplicate source documents
  4. To be sure that all of the documents have been recorded
  5. To be sure that all of the documents are accounted for

 

  1. This method of input for AIS is considered to be time consuming and error prone due to the human effort required to write on some documents and to manually key in the data:
  2. Bar Coding
  3. Key Punching
  4. Source Documents and Keying
  5. Point of Sale Systems

 

  1. The use of employee prepared time cards and the entering of the time worked by the payroll department is a good example of which type of input method for AIS?
  2. EDI
  3. Bar Coding
  4. Point of Use System
  5. Source Documents and Keying

 

  1. A printed code consisting of a series of vertical, machine readable, rectuangular bars and spaces, that vary in width and are arranged in a specific ways to represent letters and numbers are referred to as:
  2. COBOL Coding
  3. Bar Coding
  4. Key Coding
  5. EOS Coding

 

  1. Bar codes can be used in a number of different instances for input:
  2. Products that are sold
  3. Identification of individuals
  4. Track work in process
  5. Prepare financial statements

 

  1. A method of using hardware and software that captures retail sales transactions by standard bar coding is referred to as:
  2. Point of Sale System
  3. COBOL System
  4. Inventory Tracking System
  5. UPC System

 

  1. The letter UPC, when relating to bar codes, stands for:
  2. United Price Code
  3. Universal Product Code
  4. Unity Product Cost
  5. Ulterior Price Company

 

  1. The inter-company, computer-to-computer transfer of business documents in a standard business format is referred to as:
  2. Electronic Data Interchange
  3. E-Business Document Identification
  4. Earned Daily Interest
  5. Electronic Document Idea

 

  1. The major difference between EDI and e-business is:
  2. EDI uses the internet and e-business uses dedicated networks
  3. EDI does not require the use of computers
  4. EDI uses dedicated networks and e-business uses the internet
  5. There is no difference between EDI and e-business

 

  1. After the accounting information has been input into the accounting system, it must be processed.  Process accounting data involves:
  2. Source documents and keying
  3. Bar codes and point of sale
  4. Electronic data interchange and e-business
  5. Calculations, classification, and summarization.

 

  1. In a manual accounting system, the processing of accounting information includes:
  2. Recording in the ledger
  3. Posting to the journal
  4. Closing the necessary ledger accounts
  5. Adjusting the journal

 

  1. When all similar transactions are grouped together for a specified time and then processed together as a group, the process is referred to as:
  2. Grouped processing
  3. Batch processing
  4. Bound processing
  5. Unit processing

 

  1. An organization that has applications having large volumes of similar transactions that can be processed at regular intervals is best suited to use which method of processing?
  2. Real-time processing
  3. Point of sale processing
  4. Batch processing
  5. Sequential processing
  6. Which of the following is not one of the advantages of batch processing?
  7. It is generally easier to control than other types of computerized systems.
  8. It uses less costly hardware and software.
  9. It is very efficient for large volumes of like transactions when most items in the master file are used.
  10. Information can be provided to users on a timely basis.

 

  1. Which of the following is one of the disadvantages to batch processing?
  2. The hardware and software are more expensive.
  3. Integration across business processes is difficult in legacy systems that are batch oriented.
  4. Batch systems can be difficult to audit because of the complexity of the system.
  5. Errors can be corrected immediately because the system checks for input errors as the data is entered.

 

  1. The processing system where transactions are processed immediately and where output is available immediately is referred to as:
  2. Real-time processing
  3. Online processing
  4. Batch processing
  5. Sequential processing

 

  1. The advantages to real-time processing include:
  2. As the data are entered, the system checks for input errors – therefore, errors can be corrected immediately.
  3. Information is provided to users on a timely basis.
  4. All files are constantly up-to-date.
  5. All of the above are advantages.

 

  1. The disadvantages to real-time processing include:
  2. Processing can take longer than normal if the master files are large.
  3. Adding or deleting records takes a considerable amount of time.
  4. The single database that is shared is more susceptible to unauthorized access.
  5. Data duplication is likely because each process uses its own master file.

 

  1. Many different types of output are generated by an accounting information system.  The authors identified general categories of output.  The category that would include credit memorandums, receiving memorandums, and production schedules is:
  2. Internal documents
  3. Internal reports
  4. External reports
  5. Trading partner documents

 

  1. Many different types of output are generated by an accounting information system.  The authors identified general categories of output.  The category that would include any document that management determines would be useful to the business is:
  2. Internal documents
  3. Internal reports
  4. External reports
  5. Trading partner documents
  6. Documentation of the accounting system allows:
  7. The accountant to anaylze and understand the procedures and business process and the systems that capture and record the accounting data.
  8. The non-accountant to create a picture or chart of what should happen within the accounting system.
  9.     The investor to see inside the accounting system so that he / she can better understand the financial statements.
  10. The accountant to determine which financial statements will be necessary to properly report the results of operations.

 

  1. Which of the following is not one of the popular documentation methods for processes and systems presented in the textbook?
  2. Process maps
  3. Document flowcharts
  4. Entity relationship diagram
  5. Document creation map

 

  1. A pictorial representation of business processes in which the actual flow and sequence of events in the process are presented in the diagram form – the start of the process, the steps within the process, and the finish of the process is referred to as:
  2. System flowchart
  3. ER Diagram
  4. Process Map
  5. Data Flow Diagram

 

  1. Which of the process map symbols is used to show the start and / or finish of a process?
  2. Rectangle
  3. Oval
  4. Diamond
  5. Circle

 

  1. Which of the process map symbols is used to show a task or activity in the process?
  2. Rectangle
  3. Oval
  4. Diamond
  5. Circle

 

  1. Which of the process map symbols is used to show a point in the process when a decision must be made?
  2. Rectangle
  3. Oval
  4. Diamond
  5. Circle

 

  1. A process map shows a circle with a letter or number in the middle.  This symbol is used to show:
  2. That there is a break in the process.
  3. That there is a decision to be made.
  4. That a process is starting.
  5. That there is an activity that will take place.

 

  1. This method of system documentation  is intended to show the entire system, including inputs manual and copmuterized processes, and outputs.
  2. Procedure mapping
  3. System flowcharting
  4. Data flow diagramming
  5. Entity relationship diagrams

 

  1. Systems professionals  in the design and maintenance of IT systems use this documentation method.
  2. Document flowcharts
  3. Process maps
  4. Data flow diagrams
  5. System flowcharting

 

  1. Accountants and auditors are less likely to use which of the following system documentation methods?
  2. Process maps
  3. System flowcharting
  4. Document flowcharting
  5. Data flow diagrams

 

  1. When creating or reading a system flowchart, the triangle symbol represents a:
  2. File
  3. Direct access storage
  4. Manual input
  5. Document

 

  1. When creating or reading a system flowchart, the diamond represents a(n):
  2. On-page connector
  3. Decision
  4. Data
  5. Process

 

  1. When creating or reading a system flowchart, the rectangle represents a(n):
  2. Decision
  3. Off-page connector
  4. Document
  5. Process

 

  1. The documenting system that shows the flow of documents and information among departments or units within an organization is called a:
  2. System Flowchart
  3. ER Diagram
  4. Document Flowchart
  5. Data Flow Diagram

 

  1. This document system is used by systems professionals to show the logical design of a system.  The advantage of the method is that it uses only four symbols.
  2. Data Flow Diagram
  3. ER Diagram
  4. System Flowchart
  5. Document Flowchart

 

  1. This document system is used by systems professionals to show the logical design of a system.  The advantage of the method is that it uses only four symbols.  The symbol used to represent both sources and destinations of data is a(n):
  2. Rectangle with rounded corners
  3. Open-ended rectangle
  4. Arrow
  5. Rectangle with squared corners

 

  1. This document system is used by systems professionals to show the logical design of a system.  The advantage of the method is that it uses only four symbols.  The symbol used to represent any task or function performed is a(n):
  2. Rectangle with rounded corners
  3. Open-ended rectangle
  4. Arrow
  5. Rectangle with squared corners

 

  1. This document system is used by systems professionals to show the logical design of a system.  The advantage of the method is that it uses only four symbols.  The symbol used to represent a data store or the storage of data is a(n):
  2. Rectangle with rounded corners
  3. Open-ended rectangle
  4. Arrow
  5. Rectangle with squared corners

 

  1. This document system is used by systems professionals to show the logical design of a system.  The advantage of the method is that it uses only four symbols.  The symbol used to represent the flow of data is a(n):
  2. Rectangle with rounded corners
  3. Open-ended rectangle
  4. Arrow
  5. Rectangle with squared corners

 

80X.   This document system is a pictorial representation of the logical structure of databases.  It identifies the entities, the attributes of the entities, and the relationship between the entities.

  1. ER Diagram
  2. System Flowchart
  3. Entity Flowchart
  4. Process Map

 

81X.   When discussing entity relationship diagrams, this is considered to be a noun, that represents items in the accounting system:

  1. Attribute
  2. Relationship
  3. Entity
  4. Flow

 

  1. When discussing entity relationship diagrams, this is considered to be a characteristic of an entity.
  2. Attribute
  3. Flow
  4. Relationship
  5. Field

 

  1. The rectangle used in an entity relationship diagram is used to represent a(n):
  2. Attribute
  3. Relationship
  4. Entity

 

  1. The diamond used in an entity relationship diagram is used to represent a(n):
  2. Attribute
  3. Relationship
  4. Entity

 

  1. The oval used in an entity relationship diagram is used to represent a(n):
  2. Attribute
  3. Relationship
  4. Entity

 

  1. The term that refers to how many instances of an entity relates to each instance of another entity is:
  2. Supervisor
  3. Symbol
  4. Relationship
  5. Cardinality

 

  1. When an organization has this type of network, there are two types of computers networked together to accomplish the application processing:
  2. Point of sale
  3. Batch processing
  4. Client-server computing
  5. General-subsidiary computing

 

  1. This type of client terminal can accomplish some of the processing tasks in a client-server computing network:
  2. Application terminal
  3. Smart terminal
  4. Subset terminal
  5. Presentation terminal

 

  1. Characteristics of a client-server system include all of the following except:
  2. The client and the server are networked together.
  3. The client computer participates in either the processing or the data manipulation.
  4. Individual parts of processing are shared between the server and the client.
  5. The client normally stores the large database.

 

  1. In this type of client-server computing, the client PC manipulates data for presentation but does not do any other significant processing.
  2. Application presentation
  3. Distributed presentation
  4. Distributed application
  5. ERP application

 

  1. In this type of client-server computing, the client PC participates in application processing – including the updates and changes to data that reside on the server.
  2. Subset application
  3. Distributed presentation
  4. Distributed application
  5. Real-time application

 

  1. Which of the following statements, regarding ethical considerations in an accounting information system is false?
  2. The accounting information system is often the tool used to either commit or cover up unethical behavior.
  3. If there is only one person within the organization with responsibility for maintaining the computer systems, it is not difficult to detect instances of computer fraud.
  4. Fraud could be perpetrated and go undetected for a long time if the accounting information system is not carefully monitored.
  5. If accountants are well informed about the risks of unethical behavior, they will be better prpared to control those risks.

 

ANSWERS TO TEST BANK – CHAPTER 2:

 

  1. C                                   24.    D                                   47.    B                                   70.    B
  2. D                                   25.    B                                   48.    A                                   71.    A
  3. A                                   26.    A                                   49.    C                                   72.    B
  4. D                                   27.    A                                   50.    D                                   73.    D
  5. B                                   28.    A                                   51.    C                                   74.    C
  6. B                                   29.    B                                   52.    B                                   75.    A
  7. A                                   30.    C                                   53.    C                                   76.    D
  8. C                                   31.    D                                   54.    D                                   77.    A
  9. B                                   32.    C                                   55.    B                                   78.    B
  10. A                                   33.    A                                   56.    A                                   79.    C
  11. B                                   34.    D                                   57.    D                                   80.    A
  12. C                                   35.    B                                   58.    C                                   81.    C
  13. D                                   36.    C                                   59.    A                                   82.    A
  14. B                                   37.    B                                   60.    B                                   83.    C
  15. B                                   38.    A                                   61.    A                                   84.    B
  16. D                                   39.    D                                   62.    D                                   85.    A
  17. A                                   40.    A                                   63.    C                                   86.    D
  18. C                                   41.    C                                   64.    B                                   87.    C
  19. A                                   42.    C                                   65.    A                                   88.    B
  20. C                                   43.    D                                   66.    C                                   89.    D
  21. A                                   44.    B                                   67.    A                                   90.    B
  22. B                                   45.    D                                   68.    B                                   91.    C
  23. D                                   46.    A                                   69.    D                                   92.    B

 

 

35A.    B                                 35B.    C                                 35C.    A                                35D.    D

35E.    A                                 35F.    C                                35G.    C                                35H.    A             35I.         D

 

 

ACCOUNTING INFORMATION SYSTEMS/2e

TURNER / WEICKGENANNT

Test Bank:  CHAPTER 14: E-Commerce and E-Business

 

 

NOTE: All new or adjusted questions are in red.  New questions are identified by the letter A as part of the question number; adjusted questions are identified by the letter X as part of the question number.

 

END OF CHAPTER QUESTIONS

 

  1. Which of the following statements is true?
  2. E-business is a subset of e-commerce.
  3. E-commerce is a subset of e-business.
  4. E-business and e-commerce are exactly the same thing.
  5. E-business and e-commerce are not related.

 

2X.    An electronic hardware device that is located at the gateway between two or more networks is a(n):

  1. Packet switch.
  2. URL.
  3. Router.
  4. Protocol.

 

  1. The type of organization that serves as the main trunk line of the Internet is called a
  2. Local ISP.
  3. Regional ISP.
  4. Global ISP.
  5. Backbone provider.

 

4X.    Which of the following is NOT a direct advantage for the consumer from e-commerce?

  1. Access to a broader market
  2. More shopping convenience
  3. Reduced order-processing cost
  4. Information sharing from the company

 

5X.    Each of the following represents a characteristic of B2B commerce EXCEPT:

  1. Electronic data interchange.
  2. Electronic retailing.
  3. Data exchanges.
  4. Preexisting business relationships.

 

6X.    Each of the following represents an application of B2C commerce EXCEPT:

  1. Software sales.
  2. Electronic retailing.
  3. Data exchanges.
  4. Stock trading.

 

  1. Before forwarding customer data, an organization should receive explicit or implicit consent of the customer. This describes which of the AICPA Trust Services Principles online privacy practices?
  2. Consent
  3. Use and retention
  4. Access
  5. Onward transfer and disclosure

 

  1. Which of the following process within a supply chain can benefit from IT enablement?
  2. All process throughout the supply chain
  3. Only internal process within the supply chain
  4. Only external process within the supply chain
  5. Exchange process between a company and its suppliers

 

  1. When a company has an e-business transaction with a supplier, it could be using
  2. The Internet.
  3. An intranet.
  4. An extranet.
  5. Either the Internet or an extranet.

 

10X.   Intranets are used for each of the following EXCEPT

  1. Communication and collaboration.
  2. Business operations and managerial monitoring.
  3. Web publishing.
  4. Customer self-service.

 

11X.   When there is no necessity for a preexisting relationship between buyer and seller, that transaction is more likely to be classified as

  1. B2B.
  2. B2C.
  3. B2E.
  4. Either B2B or B2C.

 

12X.   Which of the following IT controls would NOT be important in an extranet?

  1. Encryption
  2. Password
  3. Antivirus software
  4. Penetration testing
  5. All of the above are important IT controls.

 

  1. A company’s computer network uses web servers, HTML, and XML to serve various user groups. Which type of network best serves each of the following users?

 

Employees                            Suppliers

  1. Intranet Extranet
  2. Intranet Internet
  3. Internet Extranet
  4. Internet Internet

 

  1. An extensible markup language designed specifically for financial reporting is:
  2. Internet DI
  3. XML
  4. XBRL
  5. XFRL

 

ANSWERS TO TEXTBOOK – CHAPTER 14 – END OF CHAPTER QUESTIONS

  1. B                                      4.    C                                      7.    D                                   10.    A                                   13.    A
  2. C                                      5.    B                                      8.    A                                   11.    B                                   14.    C
  3. D                                     6.    C                                      9.    D                                   12.    E

 

TEST BANK – CHAPTER 14 – MULTIPLE CHOICE

 

15X.   E-commerce is:

  1. Business-to-business electronic trading and process integration.
  2. Electronically enabled transactions between a business and its vendors.
  3. Electronic recording and control of internal processes.
  4. Electronically enabled transactions between a business and its customers.

 

  1. E-business:
  2. Is a narrower concept than e-commerce.
  3.                         Services the customers and the vendors.
  4. Is electronic recording and control of internal processes.
  5. Uses electronic means to enhance business processes.
  6. 1 only.
  7. 2 and 3 only.
  8. 2, 3, and 4 only.
  9.             1, 2, 3, and 4.

 

17X.   The internal processes of e-business do NOT include:

  1. Access to personnel records.
  2. Access to fringe benefit information.
  3. On-line sales to customers.
  4. Travel and expense reporting.

 

  1. E-commerce:
  2. Sales will usually be large dollar amounts with only a few items are sold.
  3. Is the sale of goods or services from a business to retailers.
  4. Is the sale of goods or services to an end-user consumer.
  5. Both A and B are correct answers.

 

  1. E-business
  2. Includes the sale of raw materials between companies.
  3. Includes using the Internet as an electronic network.
  4. Sales will usually be smaller dollar amounts with many sales.
  5. Is a broader concept than e-commerce.
  6. 1, 2, 3, and 4.
  7. 2, 3, and 4 only.
  8. 1, 3, 4 only.
  9. 1, 2, and 4 only.

 

  1. Packet switching is a method of:
  2. Turning routers off and on to send messages between computers.
  3. Dividing large messages into bundles for transmission over a network.
  4. Isolating computers connected to the network by disconnecting them.
  5. Keeping all associated bundles of the message on one network path.

 

  1. The transmission of packets:
  2. Must be determined by the sender manually.
  3. Must be accomplished via the same network path.
  4. Allows great versatility in the transmission of data.
  5. Has diminished because of advances in connectivity.

 

  1. The transmission of packets:
  2. Are usually sent in sequential order.
  3. Must be received in sequential order.
  4. Must follow the same network path.
  5. Will bundle small messages into larger bundles for transmission.

 

23X.   A router:

  1. Is a software application that creates path instructions for packets.
  2. Is hardware that connects two or more networks.
  3. Must receive its instructions from the user manually.
  4. Both B and C are correct.

 

  1. The proper actions and capabilities is:
  2. Packet switching bundles small messages into large messages for transmission while routers determine the best path through the network.
  3. Packet switching replaces the need for routers to determine the best path for the message through the network.
  4. Packet switching and routers both bundle small messages into large messages for transmission.
  5. Packet switching divides large messages into small bundles for transmission while routers determine the best path through the network.

 

  1. A protocol is required so that:
  2. Computers from the same manufacturer can communication with each other.
  3. Computers from different manufacturers can communicate with each other.
  4. So that communications within the network can be routed properly.
  5. Answers A, B, and C are all correct.
  6. Protocols can be considered:
  7. A proprietary language to a specific computer manufacturer.
  8. A language native to the network so all computers can translate it.
  9. Unnecessary if the computer is communicating on a LAN.
  10. Unnecessary if the computer is using packet switching and routers.

 

  1. TCP/IP is:
  2. Trunk controlling protocol/intranet protocol.
  3. Transmission control protocol/intranet protocol.
  4. Trunk controlling protocol/Internet protocol.
  5. Transmission control protocol/Internet protocol.

 

28X.   During the 1970s and 1980s, the ARPANET was:

  1. Restricted to universities, libraries, research organizations, and commercial carrier access.
  2. Was designed in the 1990s to augment the growing Internet and intranet systems.
  3. Does not require the use of protocols such as TCP/IP because of the limited access.
  4. Restricted to universities, libraries, and research organizations.

 

29X.   The Internet:

  1. Is a series of LANs connected together to increase their local capability.
  2. Is a series of networks connected to provide a global connectivity.
  3. Is generally restricted to universities, libraries, and research organizations.
  4. Comes from the concept of international networks.

 

30X.   The Internet:

  1. Utilizes LANs as a backbone to increase connectivity.
  2. Is a system of unconnected networks.
  3. Utilizes the World Wide Web as a backbone.
  4. Is not compatible with graphic user interface tools.

 

31X.   The growth of the Internet over its life has:

  1. Been exponential during the early 1990s.
  2. Been slowing down since 2006.
  3. Seen a few periods of decline in the number of web servers.
  4. Seen an overall trend showing growth of approximately 10 percent per year.

 

  1. The proper sequence of Internet connectivity between users is:
  2. Regional ISP to national backbone provider to regional ISP.
  3. Local ISP to national backbone provider to network access point to national backbone provider to local ISP.
  4. Regional ISP to national network access points to regional ISP.
  5. Local ISP to regional ISP to national backbone provider to network access points to national backbone provider to regional ISP to local ISP.

 

33X.   A backbone provider is an organization that provides:

  1. Direct Internet access to the end users.
  2. Regional ISPs direct access to the Internet.
  3. High-speed access to local ISP users.
  4. High-speed access to regional ISP users.

34X.   The Internet backbone is the network between:

  1. The local ISP and the regional ISP.
  2. The regional ISP and the local ISP.
  3. The local ISP and the national backbone provider.
  4. National backbone providers.

 

  1. Regional ISPs:
  2. Connect directly to the Internet backbone through network access points.
  3. Connect to the Internet backbone through local ISPs utilizing network access points.
  4. Provide the connection between local ISPs and national backbone providers.
  5. Provide end users direct connects to the Internet backbone through network access points.

 

36X.   Regional ISPs do NOT include:

  1. EarthLink.
  2. BellSouth.
  3. MCI.
  4. America Online.

 

37X.   Backbone providers would NOT include:

  1. MCI.
  2. Sprint.
  3. America Online.
  4. BBN.

 

  1. Local ISPs would include:
  2. MCI and Sprint.
  3. America Online and EarthLink.
  4. BBN and a local cable company.
  5. Television and cable companies.

 

39X.   A web server is:

  1. Always located at national backbone provider levels.
  2. Always located at regional ISP provider levels.
  3. A computer and hard drive space that stores web pages and data.
  4. Always the access between the national backbone provider and the backbone.

 

40X.   HTML is:

  1. A language which allows computers to connect to the Internet and WWW.
  2. A protocol language allowing user level computers to connect to local ISPs.
  3. A language utilized to present website words, data, and pictures.
  4. Used for information sharing between the Internet and WWW.

 

  1. HTML allows:
  2. User level computers to connect to the Internet through an ISP.
  3. User level computers a way to display information the way it was intended to be displayed.
  4. Local and regional ISPs to interact with national backbone providers.
  5. National backbone providers to exchange information about trunk traffic.

 

  1. An example of a URL is:
  2. cjb@jhs-email.com.
  3. http://www.cjb.org.
  4. jhs-email.com.
  5. All of the above, A, B, and C, are examples of URLs.

 

  1. Select the true statement from the following.
  2. URL stands for uniform real-time locator while http stands for hypertext transmission protocol.
  3. URL stands for uniform resource location while http stands for hypertext translation protocol.
  4. URL stands for uniform resource locator while http stands for hypertext transmission protocol.
  5. URL stands for uniform real-time location while http stands for hypertext transmission protocol.

 

44X.   When a valid URL is entered into your web browser:

  1. Your computer will send a network access protocol (NAP) command to your network server.
  2. Your computer will send an http command to a web server, directing the server to find and transmit the web page requested.
  3. Your command will be translated into TCP/IP and sent directly to a national backbone provider.
  4. Your computer will directly access the Internet and WWW in its search for the information.

 

44A.   The current standard HTML 5 has the following benefits over previous versions:

  1. Allows a much richer use of video and audio
  2. Improved connectivity
  3. Better security
  4. Both A and C

 

  1. HTTP stands for:
  2. Hypertext transmission protocol.
  3. Hypertransmission terminal protocol.
  4. Hypertext terminal protocol.
  5. Hypertext translation protocol.

 

  1. An example of a domain name is:
  2. jhs-email.com.
  3. cjb@jhs-email.com.
  4. http://www.cjb.org.
  5. All of the above, A, B, and C, are examples of domain names.

 

46A.   The unique name that identifies the internet site is referred to as:

  1. URL
  2. HTTP
  3. Domain name
  4. HTML

 

46B.   The suffix of the domain name will identify the type of organization that owns the rights to that domain.  Which of the following is a correct example of the suffix and related organization type?

  1. .gov = governmental organization or unit
  2. .net = television network
  3. .com = community
  4. .org = organization

 

47X.   A URL is converted to an IP by:

  1. TCP/IP capabilities of the user level computer.
  2. A DNS accessed when the browser sends the command.
  3. The local ISP provider.
  4. The national backbone provider.

 

47A.   This type of address is the unique information that allows a specific website or server to be located.

  1. URL
  2. DNS
  3. IP
  4. HTML

 

48X.   SSL – secure sockets layering:

  1. Reduces the frequency of Internet connection disconnects.
  2. Ensures that TCP/IP is correctly configured for Internet browsing.
  3. Is an encryption system in which the web server and the user’s browser exchange data in encrypted form.
  4. Is an encryption system which eliminates the probably of improper use of transmitted data.

 

49X.   The ways to determine a secure sockets layering connection is:

  1. The “s” at the end of “www”.
  2. The “s” at the end of “http.”
  3. The padlock on the lower bar of most web browsers.
  4. Both answers, B and C, are correct.

 

  1. Select the correct statement from the following.
  2. B2C and B2B are both considered e-commerce.
  3. B2C is considered e-commerce while B2B is considered e-business.
  4. B2B is considered e-commerce while B2C is considered e-business.
  5. B2C and B2B are both considered e-business.

 

  1. The common element in B2B and B2C is:
  2. Both require a physical selling point.
  3. A downloadable product.
  4. Both require access to the business’s website.
  5. Both require SSL (secure sockets layering) to complete the transaction.

 

52X.   Advantages of e-commerce include all EXCEPT:

  1. A narrower market for goods and services.
  2. Increased access to information.
  3. The lack of geographic constraints.
  4. All of the answers, A, B, and C, are advantages of e-commerce.

 

53X.   All of the following are true statements about e-commerce EXCEPT:

  1. E-commerce sites normally conduct sales 24 hours a day, 7 days a week, 12 months a year.
  2. E-commerce sales reduce the opportunity for fraud, theft of assets, and theft of data.
  3. E-commerce consumers can search for better prices and more information easily.
  4. E-commerce consumers may incur shipping and handling charges not incurred by retail customers.

 

  1. E-commerce sites may:
  2. Provide access to manufacturer information on the product.
  3. May provide tax free sales of retail goods.
  4. Require shipping and handling fees to be paid.
  5. Provide links to live or video presentations of product information.
  6. Not provide as quick order processing as the company’s retail locations.
  7. 1, 2, 3, 4, and 5 are correct.
  8. 1, 3, 4, and 5 are correct.
  9. 1, 2, 4, and 5 are correct.
  10. 1, 2, 3, and 4 are correct.

 

  1. Select the true statements from the following.
  2. Fraud, theft, or theft of data on the Internet and WWW are reduced by its regulated and controlled state.
  3. A customer may feel isolated from the product because of the inability to touch or handle the product.
  4.             E-commerce customers may be targeted for solicitations based on their purchasing history.
  5. E-commerce customers will often incur a shipping and handling charge with purchases.
  6. E-commerce customers will always find the best product at the best price.
  7. 1, 2, 3, 4, and 5 are all true statements.
  8. 2, 3, and 4 are all true statements.
  9. 1, 3, 4, and 5 are all true statements.
  10. 1, 4, and 5 are all true statements.

 

56X.   E-commerce business benefits include all EXCEPT:

  1. A lower cost of advertising per customer reached.
  2. More interaction with video and audio product comparisons.
  3. More rigid advertising and product presentation requirements.
  4. All of the above, A, B, and C, are benefits of e-commerce.

 

57X.   E-commerce businesses:

  1. Are normally confined to more restrictive marketing due to the larger market.
  2. Experience dramatically reduced marketing costs as the rsult of the expanded market.
  3. Requires longer period for delivery of a product due to the processing time of e-commerce.
  4. Less flexible in pricing structures due to WWW and Internet distribution of information.

 

58X.   All of the following are disadvantages of e-commerce EXCEPT:

  1. Faster order processing prevents good assurance of order correctness.
  2. Greater probability of fraud or compromised customer privacy.
  3. The inability to handle or try out the product.
  4. All of the above, A, B, and C, are disadvantages of e-commerce.

 

  1. With the advent of technology, the Internet, and the WWW:
  2. Commerce is moving only from physical to electronic positioning.
  3. Commerce has maintained its stance of physical and electronic.
  4. Commerce is moving both from electronic to physical and from physical to electronic.
  5. No notable trends have been identified.

 

  1. Select the correct statement from those below.
  2. Bricks and mortar refer to traditional stores while e-tailers are both brick and mortar and e-commerce businesses.
  3. Bricks and mortar refer to stores with both physical and electronic presences while e-tailers are e-commerce businesses only.
  4. Bricks and mortar refer to traditional stores while brick and click businesses are both brick and mortar and e-commerce businesses.
  5. Bricks and mortar refer to traditional stores while brick and click refers to e-commerce businesses.

 

  1. The AICPA’s Trust Services Principles state that online privacy focuses on:
  2. Name
  3. Address
  4. Social Security number
  5. Government ID numbers
  6. Employment history
  7. Personal health conditions
  8. Personal financial information
  9. History of purchases
  10. Credit records
  11. 1, 2, 3, 4, 5, 6, 7, 8, and 9.
  12. 1, 2, 3, 4, 6, 7, 8, and 9 only.
  13. 1, 2, 3, 4, 5, 6, 7, and 9 only.
  14. 1, 2, 3, 4, 5, 6, 7, and 8 only.

 

  1. The AICPA’s Trust Services Principles practice that states a specific person or persons should be assigned the responsibility to insure that privacy practices are followed by employees is under the title of:
  2. Monitoring and enforcement.
  3. Security for privacy.
  4. Management.
  5. Choice and consent.

 

  1. The AICPA’s Trust Services Principles practice that states a company should have policies and practices to maintain the privacy of customer data is under the title of:
  2. Choice and consent.
  3. Collection.
  4. Use and retention.
  5. Notice.

 

  1. The AICPA’s Trust Services Principles practice that states the organization should provide the choice to its customers regarding the collection of data is under the title of:
  2. Choice and consent.
  3. Collection.
  4. Use and retention.
  5. Notice.

 

  1. The AICPA’s Trust Services Principles practice that states the organization should ask about the collection, retention, and of the use is under the title of:
  2. Use and retention.
  3. Access.
  4. Choice and consent.
  5. Disclosure to third parties.

 

  1. The AICPA’s Trust Services Principles practice that states that only the data that is necessary for the purpose of conducting the transaction should be collected is under the title of:
  2. Use and retention.
  3. Collection.
  4. Choice and consent.
  5. Security for privacy.

 

  1. The AICPA’s Trust Services Principles practice that states the organization should use customers’ personal data only in the manner described in “notice” is under the title of:
  2. Security for privacy.
  3. Monitoring and enforcement.
  4. Use and retention.
  5. Choice and consent.

 

  1. The AICPA’s Trust Services Principles practice that states that customers should have access to the data provided so that the customer can view, change, delete, or block further use of the data provided is under the title of:
  2. Access.
  3. Choice and consent.
  4. Security for privacy.
  5. Use and retention.

 

  1. The AICPA’s Trust Services Principles practice that states that organizations should receive explicit or implicit consent of the customer before providing information to third parties is under the title of:
  2. Choice and consent.
  3. Security for privacy.
  4. Monitoring and enforcement.
  5. Disclosure to third parties.

 

  1. The AICPA’s Trust Services Principles practice that states that the organization has the necessary protections to try to insure that customer data is not lost, destroyed, altered, or subject to unauthorized access is under the title of:
  2. Choice and consent.
  3. Security for privacy.
  4. Monitoring and enforcement.
  5. Disclosure to third parties.

 

  1. The AICPA’s Trust Services Principles practice that states that all customer data collected remains “accurate, complete, current, relevant, and reliable” is under the title of:
  2. Choice and consent.
  3. Quality.
  4. Monitoring and enforcement.
  5. Use and retention.

 

  1. The AICPA’s Trust Services Principles practice that states that the organization should have procedures to address privacy related inquiries or disputes is under the title of:
  2. Choice and consent.
  3. Quality.
  4. Monitoring and enforcement.
  5. Use and retention.

 

73X.   Internal processes of the organization include all of the following EXCEPT:

  1. Transactions involving suppliers.
  2. Movement of raw materials.
  3. Timekeeping and labor management.
  4. Sharing of data files among workers.

 

  1. The supply chain:
  2. Is usually smaller at the customer end.
  3. Is usually more complex for service firms.
  4. Includes manufacturing facilities.
  5. Does not include any internal resources.

 

  1. The supply chain:
  2. Ends once the raw materials arrive at the manufacturing facility.
  3. Is an external process only.
  4. Is both an internal and external process.
  5. Ends once the product is manufactured and ready for sale.

 

  1. The correct sequence of the supply chain is:
  2. Secondary suppliers, suppliers, manufacturer, warehouses, distributors, retailers, and customers.
  3. Suppliers, secondary suppliers, manufacturer, warehouses, distributors, retailers, and customers.
  4. Suppliers, secondary suppliers, manufacturer, distributors, warehouses, customers, and retailers.
  5. Suppliers, secondary suppliers, manufacturer, distributors, warehouses, retailers, and customers.

77X.   The correct statement regarding the supply chain and B2C is the supply chain extends from the secondary supplier and ends with the:

  1. Retailer while B2C is from the manufacturer to the final consumer.
  2. Retailer while B2C is from the customer to the manufacturer.
  3. Manufacturer while B2C is from the retailer to the final consumer.
  4. Final customer while B2C is from the retailer to the final consumer.

 

78X.   The correct statement regarding the supply chain and B2B is the supply chain extends from the secondary supplier and ends with the:

  1. Retailer while B2B is from the manufacturer to the final consumer.
  2. Final customer while B2B is from the secondary supplier to the distributor.
  3. Manufacturer while B2B is from the supplier to the retailer.
  4. Final customer while B2B is from the retailer to the final consumer.

 

  1. Vertical integration of the supply chain occurs when:
  2. One organization owns all of the companies capable of accomplishing a specific task.
  3. All of the organizations that can accomplish a specific task are located in one geographic region.
  4. Several organizations agree to produce a single product under a common label.
  5. One organization owns the supply chain from raw materials through distribution and sales.

 

  1. Select the correct statement from the following:
  2. B2C is typically many line items per order while B2B is typically few line items per order.
  3. B2C is typically few line items per order while B2B is typically many line items per order.
  4. B2C uses purchase order forms while B2B utilizes credit card purchasing.
  5. B2C buyers usually have a relationship with the seller while B2B do not have a prior relationship.

 

81X.   An intranet is a:

  1. Private network accessible only to the employees of a company.
  2. Public network accessible by the customers and vendors of a company.
  3. Public network accessible by the entire supply chain of a company.
  4. Private network accessible by the entire supply chain of a company.

 

  1. B2C e-commerce requires:
  2. Access to the intranet.
  3. Access to the extranet.
  4. Access to the Internet.
  5. All of the above, A, B, and C.

 

83X.   An extranet is a:

  1. Private network accessible only to the employees of a company.
  2. Public network accessible by the customers and vendors of a company.
  3. Public network accessible by the entire supply chain of a company.
  4. Private network accessible by select members of the supply chain.

 

  1. Select the correct statement from those provided below.
  2. Intranet access is generally open to select members of the supply chain.
  3. Internet access is generally open to select members of the supply chain.
  4. Extranet access is generally restricted to company employees.
  5. Extranet access is generally open to select members of the supply chain.

 

  1. When a company uses the:
  2. Intranet for exchanges such as B2C transactions, it must give access to potential customers.
  3. Internet for exchanges such as B2C transactions, it must give access to potential customers.
  4. Internet for exchanges such as B2C transactions, it must preclude potential customers default access.
  5. Extranet for exchanges such as B2C transactions, it must preclude potential customers default access.

 

  1. Firewalls:
  2. Prevent internal users from accessing unacceptable web sites through the intranet.
  3. Permit internal users direct access to the Internet to accomplish B2B transactions.
  4. Prevent vendors from viewing inventory levels via the intranet.
  5. Prevent external users from accessing the extranet or intranet.

 

  1. Select the correct statement from the following.
  2. XML is extensible markup language while XBRL is extensible business reporting language.
  3. XML is extensive markup language while XBRL is extensive business reporting language.
  4. XML is example markup language while XBRL is example business reporting language.
  5. XML is extensible manipulation language while XBRL is extensible business reporting language.

 

  1. XML:
  2. Allows dynamic financial statements to be published on websites.
  3. Provides standards for the automatic exchange of financial data.
  4. Facilitates the exchange of data between organizations via web pages.
  5. Is based on XBRL language for the construction of business web pages.

 

  1. EDI via ANSI X.12 implementation is hampered by:
  2. High costs.
  3. Usable only on small projects.
  4. Limited transfer of files and data formats.
  5. Both A and C above are correct answers.

 

90X.   Internet EDI, or EDIINT, features all of the following EXCEPT:

  1. Low cost.
  2. Heavy infrastructure.
  3. Industry standard.
  4. Entire supply chain integration.

 

91X.   Value added networks or VANs, features all of the following EXCEPT:

  1. Transaction fees.
  2. Complicated.
  3. Industry standard.
  4. Limited access.

 

  1. As a metalanguage, XML:
  2. Places a data tag that the beginning and end of each page identifying the contained data.
  3. Places a data tag that the beginning and end of each data item identifying the contained data.
  4. Places a data tag only at the beginning of the data identifying the following data item.
  5. Is usable on both EDI and EDIINT networks.

 

  1. XBRL:
  2. Is a language that allows data extraction from financial statements.
  3. Is the base or core language for XML, also a metalanguage.
  4. Requires that financial statements be submitted in printed format.
  5. Both answers B and C are correct.

 

  1. Companies that engage in e-commerce, B2C sales with consumers:
  2. Have the legal obligation of complying with the AICPA Trust Services Principles.
  3. Have the same kind of obligations to conduct their business ethically as companies transacting business any other way.
  4. Have legal obligations that suggest that customers should be so informed regarding customer privacy.
  5. Are required by law to have a local presence for the resolution of customer complaints.

 

 

ANSWERS TO TEST BANK – CHAPTER 14 – MULTIPLE CHOICE:

 

  1. D                                   31.    C                                   47.    B                                   63.    D                                   79.    D
  2. C                                   32.    D                                   48.    C                                   64.    A                                   80.    B
  3. C                                   33.    D                                   49.    D                                   65.    C                                   81.    A
  4. C                                   34.    D                                   50.    B                                   66.    B                                   82.    C
  5. D                                   35.    C                                   51.    C                                   67.    C                                   83.    D
  6. B                                   36.    C                                   52.    A                                   68.    A                                   84.    D
  7. C                                   37.    C                                   53.    B                                   69.    D                                   85.    B
  8. A                                   38.    D                                   54.    D                                   70.    B                                   86.    D
  9. B                                   39.    C                                   55.    B                                   71.    B                                   87.    A
  10. D                                   40.    C                                   56.    C                                   72.    C                                   88.    C
  11. D                                   41.    B                                   57.    B                                   73.    A                                   89.    D
  12. B                                   42.    B                                   58.    A                                   74.    C                                   90.    B
  13. D                                   43.    C                                   59.    C                                   75.    C                                   91.    C
  14. D                                   44.    B                                   60.    C                                   76.    A                                   92.    B
  15. B                                   45.    A                                   61.    A                                   77.    D                                   93.    A
  16. C                                   46.    A                                   62.    C                                   78.    B                                   94.    B

New Questions:

44A.    D

46A.    C

46B.    A

47A.    C

 

TEST BANK – CHAPTER 14 – TRUE / FALSE

 

  1. E-business is the use of electronic means to enhance business processes.

TRUE

 

  1. E-commerce is electronically enabled transactions between a business and its customers.

TRUE

 

  1. E-commerce is the use of electronic means to enhance business processes.

FALSE

 

  1. E-commerce only involves transactions between the business and its customers.

FALSE

 

  1. Packet switching is the method used to send data over a computer network.

TRUE

 

  1. A router is an electronic hardware device that is connected to each computer to connect it to a network.

FALSE

 

  1. A protocol is a standard data communication format that allows computers to exchange data.

TRUE

 

  1. TCP/IP is an abbreviation for terminal communications protocol/Internet protocol.

FALSE

 

  1. The Internet (interconnected networks) serves as the backbone for the World Wide Web (WWW).

TRUE

 

  1. A backbone provider is an organization such as the National Science Foundation (NSF) which funded the Internet and/or the WWW.

FALSE

 

  1. Regional ISPs connect to the backbone through lines that have less speed and capacity than the backbone.

TRUE

 

  1. Local ISPs connect to the backbone through lines that have less speed and capacity than the backbone.

FALSE

 

  1. A web server is a computer and hard drive space that connects to the backbone through lines that have less speed and capacity than the backbone.

FALSE

 

  1. A web server is a computer and hard drive space that stores web pages and data.

TRUE

 

108A.    HTML has evolved over the years to increase functionality and security.

TRUE

  1. The standard form of encryption embedded in e-commerce sites and in web browser software is “Safe Sending Language” (SSL).

FALSE

 

  1. Due to interstate trade events and taxation issues the U.S. Government has standardized the definition of e-commerce.

FALSE

 

  1. The common term for business-to-consumer e-commerce is B2C. The common term for business-to-business electronic sales is B2B.

TRUE

 

  1. E-commerce provides the potential for much richer marketing concepts that include video, audio, product comparisons, and product testimonials or product tests.

TRUE

 

  1. Because of computer interaction and the capability of almost instant verification business across the World Wide Web has a lower probably of fraud, hackers, and compromised customer privacy.

FALSE

 

  1. The AICPA Trust Services Principles do not protect the history of purchases since these are classified as “public knowledge events.”

FALSE

 

  1. The AICPA Trust Services Principles state that the customer should be given the choice regarding the collection and retention of data.

TRUE

 

  1. The AICPA Trust Services Principles state that the customer need not be contacted if a business is going to release non-sensitive information about the customer to a third party.

FALSE

 

  1. The supply chain is the linked processes from the raw material vendor through the manufacturer ending at the stage of finished goods.

FALSE

 

  1. The supply chain may be larger at either or both ends as more than one vendor may supply the same materials and more than one customer may purchase the finished products.

TRUE

 

  1. A strength of the supply chain concept is that inconsistencies or poor quality within the supply chain will be compensated by other strengths resulting in an overall satisfactory product.

FALSE

 

  1. An example of vertical integration is a manufacturer who mines the raw materials, produces the product, and then sells it in company owned stores.

TRUE

 

  1. The differentiating factor between B2C and B2B is where B2C might purchase two books; a B2B purchase might involve ten thousand books.

TRUE

 

  1. One advantage in the B2B e-business environment is that operations costs can be reduced through inventory reductions and efficiencies can be increased by location of nearby assets when needed.

TRUE

 

  1. An intranet is a private network accessible only to the employees of a company.

TRUE

 

  1. Because intranets do not transmit information through the Internet or WWW they do not use protocols such as TCP/IP.

FALSE

 

  1. An extranet is similar to an internet except that it offers access to a greater number of sites than a standard Internet or WWW connection.

FALSE

 

  1. One characteristic that the Internet, intranets, and extranets have in common is that they are all networks that are intended for the sharing of information and the conducting of transactions.

TRUE

 

  1. The general public has general access to the intranet and extranet networks.

FALSE

 

  1. XML is a rich language that facilitates the exchange of data between organizations via web pages.

TRUE

 

  1. In XBRL complex financial statements are presented only in a static mode.

FALSE

 

  1. Traditional EDI is a real-time processing system due to the 24 hour, 7 day a week operation of computers and servers.

FALSE

 

  1. Management has an ethical obligation to create and enforce policies and practices which ensure that private customer data are not misused.

TRUE

 

  1. Because of their sensitive nature, companies seldom sell or share customer lists or customer data.

FALSE

 

  1. While there is no requirement to disclose a privacy policy on a website, it is an ethical obligation to disclose and follow the policy.

TRUE

 

ANSWERS TO TEST BANK – CHAPTER 14 – TRUE/FALSE:

  1. T                                 103.    T                                 111.    T                                 119.    F                                 127.    F
  2. T                                 104.    F                                 112.    T                                 120.    T                                 128.    T
  3. F                                 105.    T                                 113.    F                                 121.    T                                 129.    F
  4. F                                 106.    F                                 114.    F                                 122.    T                                 130.    F
  5. T                                 107.    F                                 115.    T                                 123.    T                                 131.    T
  6. F                                 108.    T                                 116.    F                                 124.    F                                 132.    F
  7. T                                 109.    F                                 117.    F                                 125.    F                                 133.    T
  8. F                                 110.    F                                 118.    T                                 126.    T

New Question

108A.    T

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