Multiple-Choice Questions 1. The process by which a financial transaction is recorded so that its flow through the system can be followed is called:a) Financial shadowing b) Managerial trace technique c) Concatenation d) Audit trail2. Justifying expenditures for new technologies is especially difficult because:a) You do not know how many jobs will be affected b) Expenses are often recurring and are difficult to estimate c) Many benefits are intangible and are not easily known or measured d) Justifying a new technology is no different from any other capital budgeting problem 3. The essential steps in performing a systems study are (in order of occurrence):a) Analysis, design, implementation and initial operation, follow upb) Design, planning, follow up, analysis, and implementation c) Planning, system specification, analysis, production, implementationd) Planning, analysis, design, implementation, and follow up

4. What is the first step to be performed by most organizations in their accounting cycles?a) Recording business transactions in a journalb) Preparing a trial balancec) Recording closing entries in a journald) Preparing transaction source documentse) none of the above5. Which systems study step is normally performed first?a) Designb) Initial operationc) Follow upd) Analysise) none of the above6. The purpose of a company firewall is to:a) Guard against spoofingb) Assist the IETFc) Deny computer hackers access to sensitive datad) all of the above7. The term data encryption refers to:a) Storing data in safe places called “crypts”b) Transforming data into secret codesc) Scrambling data in random ways that cannot be unscrambledd) none of these8. An advantage of an extranet is that:a) It can disseminate information corporate wideb) It can be accessed by selected trading partnersc) Users can employ common web browsers to access information in themd) all of the above9. Another name for an Internet domain address is its:a) URLb) ISPc) email addressd) IETF 10. Business process reengineering efforts sometimes fail because: a) Management gets too involved in the process b) Management is too optimistic regarding its expectations from its implementation c) Management support can never overcome employee resistance d) Employees will never accept change11. The sales process begins with:a) Placing an order with a vendorb) A customer order for goods or servicesc) Production of goods or servicesd) Delivery of goods or services12. The primary objective in processing revenues is to:a) Sell as many goods as possibleb) Achieve timely and efficient cash collectionc) Maximize an organization’s sales ordersd) Only sell goods to customers who can pay their bills13. An important input to the sales process is:a) A customer sales orderb) The cash forecastc) Aged accounts receivable informationd) A receiving report14. Which of the following is not an example of a source document?a) Receiving reportb) Purchase orderc) Sales orderd) Aging report15. Inputs to transaction processing systems:a) Are always in hard copyb) Are best when input in a graphical formatc) May be in an electronic format when an EDI system is usedd) May never be audio16.Integrated accounting software programs generally include all of the following, except:a) Graphic reporting capabilitiesb) Internet connectivityc) One standardized chart of accountsd) The ability to handle multiple companies17. Enterprise-wide AISs:a) Almost never pay for themselvesb) Do not include many more features than middle-range accounting software packagesc) Are seldom used by multinational organizationsd) Integrate an organization’s financial functions with its other functional areas18. Training and change management activities:a) Take place just before the go live stage of implementationb) Are most effective when conducted throughout design, go live, and post-implementation follow-upc) Include technical training onlyd) Do not include the design of user interfaces19. Which of the following software packages is not an example of a middle-range AIS?a) Great Plains Dynamicsb) MAS 90c) SAP R/3d) Solomon20. Many organizations purchased new AISs during the 1990’s:a) Because of the need for Year 2000 complianceb) Because they wanted Internet connectivityc) In order to take advantage of opportunities for reengineeringd) all of the above