Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
13) An AIS provides value by
A) improving products or services through information that increases quality and reduces costs.
B) providing timely and reliable information to decision makers.
C) creating new products.
D) both A and B
Answer: D
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
14) A good example of how an AIS is used to share knowledge within an organization is
A) the use of a corporate database to help staff identify the relevant experts who can help with a particular client.
B) the use of tablets to access a network for messaging worldwide.
C) the monitoring of production equipment to watch for defects.
D) the use of point-of-sale data to determine hot-selling items.
Answer: A
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Analytical Thinking
15) When the AIS provides information in a timely and accurate manner, it stands as an example of
A) improved decision making.
B) improving the quality and reducing the costs of products or services.
C) improving efficiency.
D) all of the above
Answer: D
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
16) Accounting information plays major roles in managerial decision making by
A) identifying situations requiring management action.
B) reducing uncertainty.
C) providing a basis for choosing among alternative actions.
D) all of the above
Answer: D
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
17) A well-designed AIS can improve the decision making in an organization. Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making.
A) An AIS provides to its users an abundance of information without any filtering or condensing of such information.
B) An AIS identifies situations requiring management action.
C) An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action.
D) An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making.
Answer: A
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
18) Which of the following is not an example of how an AIS adds value to an organization?
A) All employees at a hospital can access and update patient records from any computer terminal in the hospital.
B) A customer service representative can find a customer's account data, purchase history, payment history, and salesperson's name while on the phone with the customer, to resolve issues quickly.
C) Suppliers are able to access sales data directly from the point-of-sale system of a retailer and deliver inventory automatically when needed.
D) Client tax files are encrypted and made available on the CPA firm's network to any employee with an access code.
Answer: A