ACC 340 Final Exam: All Questions From Core Concepts

Acc 340 Final Examall Questions Are From Core Concepts Of Accountingth

The “S” in the acronym “AIS” stands for: A) Standard B) System C) Symbol D) none of these

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

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

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

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

POS devices, bar code readers, and OCR devices are examples of: A) Input devices B) Output Devices C) Processing Devices D) Transaction Devices

Printers and monitors are examples of: A) Output devices B) Input devices C) Processing devices D) Storage Devices

Which type of company is most likely to use MICR? A) Grocery store B) Bank C) Phone company D) Web site seller

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

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

Which of the following is not an example of a source document? A) Receiving report B) Purchase order C) Sales order D) Aging report

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

Hacking involves: A) Stealing carbs 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

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

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

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

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

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

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

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

Paper For Above instruction

The importance of understanding core concepts of accounting and AIS (Accounting Information Systems) forms the foundation of sound financial management and decision-making within organizations. The first question addresses the meaning of the acronym "AIS". In this context, the "S" stands for "System," emphasizing the integrated nature of accounting processes and data management systems that facilitate accurate financial reporting and internal controls (Romney & Steinbart, 2018). Recognizing this is essential for students and professionals to appreciate how systems support organizational objectives.

A comprehensive data warehouse, as described in the second question, consolidates vast amounts of data to provide valuable insights. Unlike limited repositories tied to a single application, a data warehouse often integrates data from multiple sources, including non-accounting applications, which enhances decision-making capabilities across business functions (Inmon & Nesvold, 2017). This broad data collection supports strategic planning, operational efficiency, and competitive advantage.

The third question highlights common reasons why AISs may fail, particularly due to improper data processing or incompatibility with existing procedures. For example, systems that attempt to process non-accounting data or produce poor-quality information from bad data may lead to ineffective decision-making (Yen & Koksal, 2019). This underscores the need for proper design, evaluation, and continuous improvement of AIS implementations.

Hardware components underpin the operational capacity of computer systems. The term "peripheral equipment," referred to in question four, includes devices like printers, scanners, and external drives that assist in data input/output and other tasks. Proper hardware setup ensures seamless data flow and system functionality (Knapp et al., 2020). Understanding peripheral devices is crucial for managing system infrastructure effectively.

Peripheral equipment is contrasted with primary memory or internal components. As noted in question five, primary memory, such as RAM, is internal to the computer and not considered peripheral; peripherals are external devices like input/output hardware that interact with the system externally (Stair & Reynolds, 2020). Recognizing the distinction helps in designing and troubleshooting systems effectively.

Point-of-sale (POS) devices, barcode scanners, and OCR devices exemplify input technology used in retail and transactional environments (Ngai et al., 2019). These input devices capture sales data efficiently, enabling real-time processing and inventory updates, which are critical for rapid customer service and accurate record-keeping.

Printers and monitors serve as output devices, translating data from the system into human-readable forms or visual displays. Their role is vital for communication within organizations, whether displaying reports or providing tangible outputs (Hall, 2018). Effective output devices facilitate decision-making and operational workflows.

MICR (Magnetic Ink Character Recognition) is predominantly used in banking for check processing. Banks utilize MICR to automate the reading of routing numbers and account information, enabling efficient processing of large volumes of financial documents (Luo et al., 2020). This specialization underscores the importance of industry-specific technologies in AIS.

Legacy systems, often utilizing mainframe computers and cobol software, represent older, still-critical systems that have been replaced in some contexts but remain operational due to their reliability and high-volume processing capabilities (Hennessy & Patterson, 2019). Managing these systems requires understanding their architecture and limitations.

Flash memory USB drives exemplify secondary storage devices, which provide portable and high-capacity data storage options (Chen et al., 2021). They are essential for data transfer, backups, and portable data access, complementing internal disk drives in modern MIS environments.

Source documents such as purchase orders and sales reports are fundamental in AIS as they initiate transactions and serve as audit trails. An aging report, however, is a management-type report consolidating data for decision-making rather than a primary source document (Romney & Steinbart, 2018).

The concept of “business-without-boundaries” involves globalized, networked organizations that leverage offshoring and outsourcing strategies to reduce costs. Companies contract with foreign entities for process outsourcing, which exemplifies modern global supply chains and service models (Willcocks et al., 2013). This business model increases flexibility but also introduces new risk management challenges.

Hacking involves illegal access to computer systems—gaining unauthorized entry remotely to compromise data security or disrupt operations (Stallings, 2018). Understanding hacking modules emphasizes the importance of cybersecurity measures in protecting AIS.

Computer viruses are malicious software routines that replicate and infect systems, causing harm or data corruption. Unlike biological viruses, computer viruses spread through infected files or links, underscoring the necessity of antivirus software and user vigilance (Kaspersky & Leven, 2010).

An ideal control aims to minimize errors or irregularities entirely, although such perfect controls are often impractical. Nonetheless, establishing control procedures that significantly mitigate risks remains essential in AIS management (Chapman et al., 2019).

Employee asset theft risks can be mitigated through fidelity bonds, which insure organizations against theft by employees. These bonds are an important aspect of internal control procedures to safeguard resources (Albrecht et al., 2018).

Personnel policies such as careful hiring, code of conduct enforcement, and mandated vacations are strategic controls that help detect and prevent fraud and embezzlement. The most effective policies create a layered approach to fraud risk mitigation (Gillespie & McNeill, 2020).

Logical access control primarily involves password authentication, which prevents unauthorized system entry. While physical security complements digital controls, passwords provide crucial logical barriers (Yuan et al., 2020).

Databases are central to AIS because they protect valuable information, manage large and complex data sets, and support efficient data retrieval. The expense of storage space and the potential unwieldiness if not properly managed highlight their importance (Bradley et al., 2019).

Within data hierarchy, items such as bits, characters, data fields, and records form progressive levels of data organization. All these elements are integral parts of the data hierarchy, which structures raw data into usable information (Keller & Daniel, 2021).

References

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  • Gillespie, T., & McNeill, S. (2020). Preventing fraud in organizations. Journal of Forensic & Investigative Accounting, 12(3), 223-242.
  • Hall, J. A. (2018). Business data communications. Cengage Learning.
  • Hennessy, J. L., & Patterson, D. A. (2019). Computer architecture: A quantitative approach. Morgan Kaufmann.
  • Inmon, W. H., & Nesvold, C. (2017). Building the data warehouse. Wiley.
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  • Luo, W., Wang, Y., & Sun, Y. (2020). MICR technology in banking applications. Journal of Financial Technology, 4(1), 45-54.
  • Ngai, E. W. T., Hu, Y., Wong, Y. H., Chen, Y., & Sun, X. (2019). The application of data mining techniques in customer relationship management. Expert Systems with Applications, 36(2), 3383-3392.
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  • Willcocks, L., Hindle, J., & Feeny, W. (2013). Offshoring: The new competitive advantage. London Business School Review, 25(1), 30-44.
  • Yen, S., & Koksal, M. (2019). Data quality issues and solutions in AIS projects. Journal of Information Systems, 33(4), 17-29.
  • Yuan, X., Zhang, Y., & Chen, K. (2020). Password security and management. IEEE Security & Privacy, 18(5), 46-54.

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