1.

The “S” in the acronym “AIS” stands for:

A)

Standard

B)

System

C)

Symbol

D)

none of these

2.

Which of the following best describes a data warehouse?

A)

A repository of historical information from one accounting application

B)

A repository of historical information from a set of accounting applications

C)

A repository of information from many business applications—some not accounting

D)

A repository of information from many businesses in the same industry

3.

One reason why AISs fail is because:

A)

They are not computerized

B)

They try to process non-accounting data

C)

They cannot produce good information from bad data

D)

They are incompatible with the existing processing procedures

4.

The hardware of a computer system includes the computer itself and other devices that help the computer perform its tasks.  These “other devices” are commonly also called:

A)

Helper equipment

B)

IT devices

C)

Peripheral equipment

D)

Secondary equipment

E)

Accessory equipment

5.

All of the following are examples of peripheral equipment except:

A)

Input equipment

B)

Output equipment

C)

Communications equipment

D)

Primary memory equipment

E)

Secondary storage equipment

6.

POS devices, bar code readers, and OCR devices are examples of:

A)

Input devices

B)

Output Devices

C)

Processing Devices

D)

Transaction Devices

7.

Printers and monitors are examples of:

A)

Output devices

B)

Input devices

C)

Processing devices

D)

Storage Devices

8.

Which type of company is most likely to use MICR?

A)

Grocery store

B)

Bank

C)

Phone company

D)

Web site seller

9.

An older computer system, typically using a mainframe, centralized data processing, and COBOL software, is often called a:

A)

Supercomputer system

B)

Primary system

C)

Legacy system

D)

Traditional system

10.

A USB drive that uses flash memory is an example of a(n):

A)

Input device

B)

Output device

C)

Secondary storage device

D)

Web device

11.

Which of the following is not an example of a source document?

A)

Receiving report

B)

Purchase order

C)

Sales order

D)

Aging report

12.

Networked enterprises and globalization have enabled a new business model called “business-without-boundaries.”  Which of the following statements describes this business model?

A)

Companies no longer have all of their employees in one location

B)

It is called offshoring and companies contract with firms in other countries to do such business processes as human resources, payroll, and accounting

C)

Companies are under a great deal of scrutiny to manage costs and generate revenue so they contract with foreign firms to do various business processes at a lower cost to the company

D)

all of the above statements describe this model

13.

Hacking involves:

A)

Stealing carbons of credit cards

B)

Destroying computer hardware

C)

Gaining illegal entry to computer files from remote locations

D)

Inserting a logic bomb in a computer program

14.

A computer virus is:

A)

A disease that computer programmers are very susceptible to

B)

A small processing routine that the user accidentally introduces into the system

C)

A misnomer, since unlike biological viruses, computer viruses cannot reproduce themselves

D)

Harmless

15.

An ideal control is:

A)

A control procedure that reduces to practically zero the risk of an error or an irregularity taking place and not being detected

B)

A control procedure that is anticipated to have the lowest possible cost in relation to its benefits

C)

A control procedure that should always be implemented into a company’s system due to the efficiency and effectiveness that will result from its implementation

D)

A control procedure that is always cost effective

16.

An approach used by many companies to reduce the risk of loss caused by the theft of assets by employees is to:

A)

Utilize polygraphs

B)

Acquire arbitrage loss protection

C)

Acquire fidelity bond coverage

D)

Institute punitive management

17.

Which of the following personnel policies would be the most useful in mitigating fraud or embezzlement?

A)

Fidelity bonds for key employees

B)

Careful hiring procedures for key employees

C)

Having a Code of Conduct

D)

Required vacations for key employees

18.

Logical access to the computer system would be best controlled by:

A)

Intrusion alarm systems

B)

Complex operating systems

C)

Restrictions on physical access to online terminals

D)

Password codes

19.

All of these are reasons why databases are important to AISs except:

A)

AIS databases store valuable information

B)

Many AISs are large and therefore potentially unwieldy

C)

The databases of some organizations are very complex

D)

The hard disk space used to store AIS databases is comparatively expensive

E)

all of these are reasons why databases are important to AISs

20.

All of the following are items within the data hierarchy except:

A)

Bit

B)

Character

C)

Data field

D)

Record

E)

all of these items are part of the data hierarchy