Page 66 - Accounting Information Systems

C H A P TER 1 The Information System: An Accountant’s Perspective 37

7. When viewed from the highest to most elemental b. fixed assets, accounts payable, cash disburse-
level, the data hierarchy is ments, and cost accounting
a. attribute, record, file. c. purchasing, cash receipts, accounts payable,
b. record, attribute, key. cash disbursements, and payroll
c. file, record, attribute. d. inventory control, cash receipts, accounts
payable, cash disbursements, and payroll
d. file, record, key.
e. inventory control, cost accounting,
e. key, record, file.
accounts payable, cash disbursements, and
8. Which is NOT an accountant’s primary role in in- payroll
formation systems?
13. Which statement best describes the issue of dis-
a. system user tributed data processing (DDP)?
b. system auditor a. The centralized and DDP approaches are
c. system designer mutually exclusive; an organization must
d. system programmer choose one approach or the other.
9. Which of the following is NOT an objective of all b. The philosophy and objective of the organiza-
information systems? tion’s management will determine the extent of
DDP in the firm.
a. support for the stewardship function of
management c. In a minimum DDP arrangement, only data
input and output are distributed, leaving the
b. support for management decision making
tasks of data control, data conversion, database
c. support for the day-to-day operations of the firm management, and data processing to be cen-
d. all of the above are objectives trally managed.
10. Which of the following best describes the activities d. The greatest disadvantage of a totally distrib-
of the materials management function? uted environment is that the distributed infor-
a. purchasing, receiving, and inventory control mation processing unit locations are unable to
communicate and coordinate their activities.
b. receiving, sales, distribution, and purchasing
e. Although hardware (such as computers,
c. receiving, storage, purchasing, and accounts
database storage, and input/output terminals)
payable
can be effectively distributed, the systems
d. purchasing, receiving, and storage development and maintenance tasks must
e. purchasing, storage, and distribution remain centralized for better control and
11. Which of the following best describes the activities efficiency.
of the production function? 14. Which of the following is a disadvantage of distrib-
a. maintenance, inventory control, and produc- uted data processing?
tion planning a. End-user involvement in systems operation is
b. production planning, quality control, manufac- decreased.
turing, and cost accounting b. Disruptions due to mainframe failures are
c. quality control, production planning, manufac- increased.
turing, and payroll c. The potential for hardware and software
d. maintenance, production planning, storage, and incompatibility across the organization is
quality control increased.
e. manufacturing, quality control, and maintenance d. The time between project request and comple-
tion is increased.
12. Which of the following best describes the activities
of the accounting function? e. All of the above are disadvantages.
a. inventory control, accounts payable, fixed
assets, and payroll