Chapter 1: Introduction
True/False
1. Nowadays, an accountant's role is still to capture and record financial information about an
organisation. F -> update
2. Data is the same as information. F -> different from
3. Data are only useful when they are converted into information. T
4. An open system must have at least one input and one output. T
5. The inputs and outputs of a system can be the same. F ( input is data, output is information)
6. An accounting information system can be either manual or computerised. T
7. In modern organisations, accounting is considered as one of the functions that depend on the
technologies of information system. T
8. Behaviours of a system are unaffected by the external environment. F -> affected
9. A modern accounting information system can provide far more information than just
traditional financial statements. T
10. As accounting information systems are being computerised, data management will become
less of an issue. F-> more
Multiple choice
11. The role of the accountant has changed in recent times because:
a. Professional bodies have sought to redefine and reposition the accounting function.
b. Computer systems have emerged to handle the classification and recording tasks
traditionally associated with the accounting function.
c. The accounting cycle is too complex and involved to be performed solely by the
accountant.
d. Knowledge workers have increasingly replaced accountants in the performance of
recording and classification tasks.
12. Which of the following is NOT true?
a. Data are the raw facts relating to or describing an event.
b. Data are useful even if they are not subject to the application of rules or knowledge,
which enables the transformation of data into information.
c. Information is used in decision making and can prompt action, as well as be a guiding
tool for decision making.
d. Excess amount of irrelevant information may cause information overload.
13. What is information overload?
a. The amount of information exceeds the storage capacity of a computer system when
data storage is taking place.
b. The amount of information exceeds the processing capacity of a human being when
working through a decision.
c. Both a and b.
d. None of the above.
Testbank to accompany Accounting Information Systems 3e
14. The following message box appears when entering a customer order into a sales system:
This is an example of:
a. Input
b. Processing
c. Output
d. Feedback
15. Which of the following statements is not true?
a. A system should have at least one input.
b. A system should have at least one output.
c. A system should have at least one feedback.
d. None of the above.
16. Which of the following statements is not true?
a. A process should have at least one input.
b. A process should have at least one output.
c. A process should have at least one feedback.
d. None of the above.
17. A large company that provides supplies to the defence forces has just established a new
accounting system. An example of a factor in the external environment that would impact on the
design of this system is:
a. the specification details gained from users.
b. the directive from the finance director about the system's operation capacity.
c. the defence force requirement regarding e-commerce.
d. the accounting standards governing large companies.
© John Wiley & Sons Australia, Ltd 1.3
18. Over time, the relationship between accounting and information systems has:
a. seen accounting gain an increased role as the emphasis shifted from information
systems to accounting.
b. seen information systems gain an increased role as the emphasis shifted from
accounting to information systems.
c. seen information systems and accounting share the emphasis.
d. seen both accounting and information systems become part of a wider organisational
IT function.
19. Which of the following statements is not true?
a. Information systems were first seen as a support tool for the accounting function
b. Because of technological advancements, organisations began to see that technology of
the computer could be applied beyond the domain of the accounting function.
c. The accounting function's reliance on information systems function has remained the
same over years.
d. All of the above
20. What is the accounting's role to an organisation?
a. Gather data about the organisation's activities.
b. Provide a means for business data storage and processing.
c. Convert business data into useful information.
d. All of above.
