AACSB: Analytical Thinking
6) How can query languages be used to help make better decisions?
A) They can suggest a course of action.
B) They can gather relevant data for decision making.
C) They can help the decision maker to interpret results.
D) They can choose among alternative courses of action.
Answer: B
Concept: Information needs and business processes
Objective: Learning Objective 2
Difficulty: Challenging
AACSB: Reflective Thinking
7) What is a key decision that needs to be made with regards to selling merchandise?
A) which banking institution to use
B) which employees to hire
C) which public accounting firm to employ
D) which credit cards to accept
Answer: D
Concept: Information needs and business processes
Objective: Learning Objective 2
Difficulty: Easy
AACSB: Analytical Thinking
8) What is a key decision that needs to be made with regards to paying vendors for goods and services?
A) which credit cards to accept
B) which employees to hire
C) which vendors to pay
D) how much capital to acquire
Answer: C
Concept: Information needs and business processes
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
9) What is a key decision that needs to be made with regards to borrowing money from lenders?
A) the location
B) pro forma income statement
C) how much capital to acquire
D) job descriptions
Answer: C
Concept: Information needs and business processes
Objective: Learning Objective 2
Difficulty: Easy
AACSB: Analytical Thinking
10) One group that relies on both the adequate collection and transformation of data for decision-making purposes for an organization is
A) management.
B) interested outsiders.
C) competitors.
D) the government.
Answer: A
Concept: Information needs and business processes
Objective: Learning Objective 2
Difficulty: Easy
AACSB: Analytical Thinking
11) Who of the following is not a stakeholder with whom an accounting information system typically communicates directly?
A) the federal government
B) venture capitalist
C) company that supplies raw material
D) company that purchases finished goods for resale to consumers
Answer: A
Concept: Information needs and business processes
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
12) In which transaction cycle would customer sales transaction information be most likely to pass between internal and external accounting information systems?
A) the revenue cycle
B) the expenditure cycle
C) the human resources / payroll cycle
D) the financing cycle
Answer: A
Concept: Information needs and business processes
Objective: Learning Objective 2
Difficulty: Moderate
AACSB: Analytical Thinking
13) In which transaction cycle would information for inventory purchases be most likely to pass between internal and external accounting information systems?
A) the revenue cycle