Multiple Choice Questions Chapter 1
Multiple Choice Questions Chapter 1
1. It manages the financial information resource of the firm and plays two important roles in
transaction processing.
a. Information Function c. Accounting Function
b. Management Function d. Finance Function
2. Activities that shapes and assembles raw materials into finished products.
a. Primary Manufacturing Activities c. Production Support Activities
b. Material Management d. Data Processing
3. This supports operations-level tasks with highly detailed information about the many business
transactions affecting the firm.
a. Horizontal Flow c. Vertical Flow
b. Outside Flow d. Downward Flow
4. This model describes an environment in which individual data files are not related to other files.
a. Flat File Model c. Enterprise Resource Planning Model (ERP)
b. Resources, Events, and Agents Model d. Database Model
6. It produces the traditional financial statements, such as the income statement, balance sheet,
statement of cash flows, tax returns, and other reports required by law.
a. Transaction Processing System c. Management Reporting System
b. Financial Reporting System d. Financial Accounting System
9. The set of formal procedures by which data are collected, processed into information, and
distributed to users.
a. Information System c. Data Processing System
b. Data Collection System d. Accounting Information System
11. It is a complete set of attributes for a single occurrence within an entity class.
a. Data c. Information
b. Record d. File
12. It provides internal management with special-purpose financial reports and information needed
for decision making such as budgets, variance reports, and responsibility reports.
a. Management Information System c. Financial Accounting System
b. Accounting Information System d. Management Reporting System
13. Which is not an element of the general model of Accounting Information System?
a. Organizational Structure c. Database Management
b. End users d. Data Collection
14. All data processing is performed by one or more large computers housed at a central site that
serve users throughout the organization
a. Distributed Data Processing c. Singular Data Processing
b. Centralized Data Processing d. Distributed Data Processing
15. The task of locating and extracting an existing record from the database for processing
a. Data Processing c. Locating
b. Data Extracting d. Retrieval
16. They clearly convey their needs to the system professionals who design the system and actively
participate in systems development project to ensure appropriate systems design.
a. Accountants as System Designers c. Accountants as Owners
b. Accountants as Users d. Accountants as Recorders
17. Economic ______ are identifiable parties which obtain, use, or dispose of economic resources.
a. Events c. Auditors
b. Users d. Agents
18. This approach centralizes the organization's data into a common database that is shared by other
users.
a. REA Model c. Database Model
b. Central Approach d. Database Management System
19. Determines the nature, sources, destination and accounting rules to be applied and responsible for
conceptual system design. Specify criteria and information that needs to be reported.
a. Accountants as System Designers c. Accountants as Auditors
b. Accountants as Users d. Accountants as Recorders
20. ______________, an information system model that enables an organization to automate and
integrate its key business processes.
a. Enterprise Resourceful Planning System c. Entity Resource Planning System
b. Entertainment Resource Planning System d. Enterprise Resource Planning System
Answer Key
1. C
2. A
3. A
4. A
5. B
6. B
7. C
8. A
9. A
10. B
11. B
12. D
13. A
14. B
15. D
16. B
17. D
18. C
19. A
20. D