Accounting Information Systems The Crossroads of Accounting and IT 2nd Edition by Kay – Test Bank
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Sample Questions
Accounting Information Systems, 2e (Kay/Ovlia)
Chapter 4 Accounting Systems and Business Processes
Objective 1
1) Since a baseline accounting system is already developed, the
time line for developing a system can be accelerated.
Answer: TRUE
Diff: 1
Objective: Q4.1 What is the role of business processes in
the accounting system?
2) Some of the benefits of using an off-the-shelf accounting
system are lower cost, tighter security, and scalability.
Answer: TRUE
Diff: 1
Objective: Q4.1 What is the role of business processes in
the accounting system?
3) When adapting an organization’s business practices to meet a
baseline system’s process requires extensive changes, ________ may be needed to
reduce stress and employee turnover.
Answer: change management
Diff: 2
Objective: Q4.1 What is the role of business processes in
the accounting system?
4) An advantage of customizing a baseline accounting system is
1. A)
The lack of standardization
2. B)
Adapting existing business processes to meet the baseline system may require
extensive changes
3. C)
The time line for developing a system can be accelerated, significantly
reducing the time required from start to finish
4. D)
Change management may be needed to reduce stress and employee turnover
Answer: C
Diff: 2
Objective: Q4.1 What is the role of business processes in
the accounting system?
5) What are the advantages of configuring or customizing a
baseline accounting system?
Answer:
– Time savings. Because the baseline is already developed, the
time line for developing a system can be accelerated, significantly reducing
the time required from start to finish.
– Best practices. Often best practices for business processes
are incorporated into the baseline system.
– Standardization. The baseline-plus-customization approach
offers advantages of standardization for the system and customization for
unique requirements.
Diff: 1
Objective: Q4.1 What is the role of business processes in
the accounting system?
6) What are the disadvantages of configuring or customizing a
baseline accounting system?
Answer:
– Not a good fit. The baseline system that is commercially
available may not be a good fit.
– Costly customization. Organizations may find customization too
costly and be forced to change their business processes to fit the commercial
software.
– Change management. Adapting an organization’s business processes
to meet the baseline system may require extensive change. Change management may
be needed to reduce stress and employee turnover.
Diff: 1
Objective: Q4.1 What is the role of business processes in
the accounting system?
Objective 2
1) The vendors module in the baseline accounting system
correspond to the sales transaction cycle.
Answer: FALSE
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
2) What IT professionals call transaction cycles, accountants
refer to as business processes.
Answer: FALSE
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
3) The customers module in the baseline accounting system
corresponds to the sales transaction cycle.
Answer: TRUE
Diff: 2
Objective: Q4.2 What are the business processes in a
baseline accounting system?
4) A well-designed chart of accounts does not use a coding
system for account numbers.
Answer: FALSE
Diff: 2
Objective: Q4.2 What are the business processes in a
baseline accounting system?
5) Since most accounting systems use databases to store
accounting data, the account balances are calculated using various database
tables.
Answer: TRUE
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
6) By studying a ________, you will be able to quickly
understand the business processes for most companies.
Answer: baseline accounting system model
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
7) What accountants refer to as transaction cycles IT
professions call ________.
Answer: business processes
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
8) In a baseline accounting system, the pay bills business
process is included in the ________ module.
Answer: Vendors
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
9) The ________ module in a baseline accounting system consists
of other activities and transactions that do not fall into the other modules.
Answer: Financial
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
10) In a baseline accounting system, the business processes that
involve cash received and cash paid are included in the ________ module.
Answer: Banking
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
11) An event typically associated with the vendor module of a
baseline accounting system is
1. A)
Create invoices
2. B)
Receive payments
3. C)
Make deposits
4. D)
Enter bills
Answer: D
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
12) An event typically associated with the customer module of a
baseline accounting system is
1. A)
Make deposits
2. B)
Create purchase orders
3. C)
Receive inventory
4. D)
Pay bills
Answer: A
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
13) An event typically NOT associated with the employee module
of a baseline accounting system is
1. A)
Pay bills
2. B)
Pay payroll liabilities
3. C)
Calculate payroll
4. D)
Enter time
Answer: A
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
14) An event typically associated with the banking module of a
baseline accounting system is
1. A)
Make adjusting entries
2. B)
Write checks
3. C)
Make deposits
4. D)
Receive payments
Answer: B
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
15) An event typically NOT associated with the financial module
of a baseline accounting system is
1. A)
Closing entries
2. B)
Adjusting entries
3. C)
Record deposits
4. D)
Correcting entries
Answer: C
Diff: 1
Objective: Q4.2 What are the business processes in a
baseline accounting system?
16) What are the transactions typically associated with vendors?
Please define each transaction.
Answer:
– Create Purchase Orders. A purchase order is a document that
lists items to be ordered, purchase order number, vendor, date, etc. A copy of
this document is kept by the enterprise and another copy is sent to the vendor.
– Receive Items (Inventory). The items received by the
enterprise are:
1. Compared
to items ordered as listed on the purchase order
2. Recorded
as received on a receiving report
– Enter Bills. The enterprise receives a bill for the goods. The
bill is compared to:
1. The
purchase order
2. The
receiving report that lists the items received
– Pay Bills. When the bill is paid, the company’s Checking
account is reduced for the
amount of the payment.
Diff: 2
Objective: Q4.2 What are the business processes in a
baseline accounting system?
17) What are the transactions typically associated with
customers? Please define each transaction.
Answer:
– Create Invoices. When a customer places an order, the sale is
recorded on an invoice (or sales receipt). When the accrual basis of accounting
is used, the sale is recognized when the good or service is provided,
regardless of when the cash is received. A document, such as an invoice or
sales receipt, is prepared when the good is provided in order to record the
sales revenue at that time.
– Receive Customer Payments. The customer payment is recorded
when it is received. Cash can be received before the sale (as a customer
deposit), at the same time as the sale occurs (cash sale), or after the sale is
made (credit sale).
– Make Deposits. The customer’s payment is deposited in the
bank.
Diff: 2
Objective: Q4.2 What are the business processes in a
baseline accounting system?
18) What are the transactions typically associated with
employees? Please define each transaction.
Answer:
– Enter Time. To calculate payroll, employee time must be
tracked and entered into the system.
– Calculate Payroll. To create paychecks, it is necessary to
calculate the gross pay, withholdings, and net pay for each employee. Amounts
withheld from employee pay can include federal and state withholdings, health
insurance deductions, retirement contributions, and charitable donations.
– Pay Employees. Employee paychecks are printed and distributed
or directly deposited into employee bank accounts.
– Pay Payroll Liabilities. Payroll liabilities are paid to the
appropriate governmental agencies or entities.
Diff: 2
Objective: Q4.2 What are the business processes in a baseline
accounting system?
19) What are the transactions typically associated with the
banking module of a baseline accounting system?
Answer: The banking module consists of transactions
involving cash received and cash paid. For example:
– Cash paid to vendors
– Cash received from customers
– Cash paid to employees
– Cash paid for payroll liabilities
Diff: 2
Objective: Q4.2 What are the business processes in a
baseline accounting system?
20) What are the transactions or events typically associated
with the financial module of a baseline accounting system?
Answer: The financial module includes all tasks necessary
to maintain the company’s General Ledger.
Adjusting entries – Entries to bring accounts up to date, such
as recording depreciation for the period
Correcting entries – Entries necessary to correct error
Closing entries – All entries needed to close temporary Income
and Expense accounts at year end
Other – All other transactions and entries needed to properly
maintain and operate the accounting system
Diff: 2
Objective: Q4.2 What are the business processes in a
baseline accounting system?
Objective 3
1) When a new accounting system is developed, companies rarely
streamline business processes to improve effectiveness.
Answer: FALSE
Diff: 3
Objective: Q4.3 How do I customize an accounting system
using business process mapping?
2) A ________ diagrams step-by-step the activities performed in
a process.
Answer: business process map
Diff: 1
Objective: Q4.3 How do I customize an accounting system
using business process mapping?
3) ________ do not always provide the level of detail that IT
professionals need to develop accounting systems.
Answer: Flowcharts
Diff: 2
Objective: Q4.3 How do I customize an accounting system
using business process mapping?
4) ________ provides a mapping standard for bridging the gap
between IT professionals and business users, such as accountants.
Answer: Business Process Model and Notation Version 2.0
(BPMN 2.0)
Diff: 2
Objective: Q4.3 How do I customize an accounting system
using business process mapping?
5) Which of the following business mapping standards graphically
describes processes and data flows using hundreds of symbols?
1. A)
Flowcharts
2. B)
Unified Modeling Language
3. C)
Business Process Model and Notation 2.0
4. D)
Data flow diagrams
Answer: B
Diff: 2
Objective: Q4.3 How do I customize an accounting system
using business process mapping?
6) Which of the following business mapping standards graphically
describes processes and data flows using only four symbols?
1. A)
Flowcharts
2. B)
Unified Modeling Language
3. C)
Business Process Model and Notation 2.0
4. D)
Data flow diagrams
Answer: D
Diff: 2
Objective: Q4.3 How do I customize an accounting system
using business process mapping?
7) Describe the four business mapping standards discussed in the
text. What are their advantages and disadvantages?
Answer: Flowcharts – Flowcharts are used to graphically
describe a series of activities and decisions. The advantage of simplicity for
flowcharts is also a disadvantage. Flowcharts do not always provide the level
of detail that IT professionals need to develop accounting systems and
applications. This can lead to miscommunication and flawed systems.
Data Flow Diagrams – Data flow diagrams use only four symbols to
graphically describe processes and data flow: agent (square), process (rounded
rectangle), data store (three-sided rectangle), and data flow (line and arrow).
The advantage of a DFD over a flowchart is that DFDs specify agents
(individuals performing the processes). One disadvantage of DFDs is that there
is no symbol for decisions. Another disadvantage of DFDs is that there are
more-modern methods of business process mapping that have become more widely
used.
Unified Modeling Language – UML has gained widespread use among
IT professionals, but it is an extremely complex business processing mapping
tool that has hundreds of different symbols. The level of complexity possible
with UML has made it popular with IT professionals and at the same time makes
it challenging and time consuming for accounting professionals to learn and use
as a communication tool.
Business Process Model and Notation 2.0 – BPMN 2.0 provides a
business process mapping standard for bridging the gap between IT professionals
and business users, such as accountants. BPMN 2.0 does not require extensive
training to use, making it a better choice for accounting professionals to
understand and use to communicate with IT professionals. On the other hand, BPMN
2.0 provides greater detail than flowcharting to meet the needs of IT
professionals for successful system implementation. So BPMN provides a balance
between simplicity and complexity to facilitate communication between the
accounting and IT professionals.
Diff: 3
Objective: Q4.3 How do I customize an accounting system
using business process mapping?
Objective 4
1) Software engineers may use flowcharts during audits to map
systems they are auditing.
Answer: FALSE
Diff: 2
Objective: Q4.4 How do I read a flowchart?
2) Flowcharts are well suited for programming development
because of the ability to chart a series of steps and decisions involved in a
process that can be converted to programming code.
Answer: TRUE
Diff: 2
Objective: Q4.4 How do I read a flowchart?
3) A flowchart can show up to five levels of detail.
Answer: FALSE
Diff: 2
Objective: Q4.4 How do I read a flowchart?
4) In a flowcharts, a(n) ________ indicates a decision.
Answer: diamond
Diff: 1
Objective: Q4.4 How do I read a flowchart?
5) In a flowchart, a rectangle indicates a(n) ________.
Answer: process
Diff: 2
Objective: Q4.4 How do I read a flowchart?
6) A rounded rectangle on a flowchart indicates a(n) ________.
Answer: start/end
Diff: 2
Objective: Q4.4 How do I read a flowchart?
7) In a flowchart, a(n) ________ indicates a process flow.
Answer: arrow
Diff: 2
Objective: Q4.4 How do I read a flowchart?
8) In a flowchart, which symbol represents a process flow?
1. A)
2. B)
3. C)
4. D)
Answer: C
Diff: 1
Objective: Q4.4 How do I read a flowchart?
9) In a flowchart, which symbol represents a decision?
1. A)
1. B)
2. C)
3. D)
Answer: C
Diff: 1
Objective: Q4.4 How do I read a flowchart?
10) In a flowchart, which symbol represents a start/end?
1. A)
1. B)
2. C)
3. D)
Answer: A
Diff: 1
Objective: Q4.4 How do I read a flowchart?
11) How many levels of detail may be shown in a flowchart?
1. A) 1
level
2. B) 2
level
3. C) 3
levels
4. D) 4
levels
Answer: D
Diff: 1
Objective: Q4.4 How do I read a flowchart?
Objective 5
1) BPMN 2.0 was developed as an easily understandable,
standardized language to communicate business processes effectively between all
business users and IT professionals.
Answer: TRUE
Diff: 1
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
2) BPMN 2.0 uses symbols to map events, activities, and agents.
Answer: FALSE
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
3) A data object may be a document or data record.
Answer: TRUE
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
4) Gateways are used for forking and merging process flows.
Answer: TRUE
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
5) Pools represent major participants in the process and are
often used to identify separate organizations.
Answer: TRUE
Diff: 1
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
6) In BPMN 2.0 an event is represented by a rounded rectangle.
Answer: FALSE
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
7) In BPMN 2.0 a gateway is represented by a triangle.
Answer: TRUE
Diff: 1
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
8) In BPMN 2.0 a data flow is represented by an arrow with a
solid line.
Answer: FALSE
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
9) Object Management Group, Inc. (OMG) is a not-for-profit
industry standards consortium that maintains specifications including UML and
BPMN.
Answer: TRUE
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
10) A BPMN diagram may be used as ________ to describe the current
accounting system.
Answer: documentation
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
11) A BPMN diagram may be used as a(n) ________ to describe a
new, proposed accounting system.
Answer: blueprint
Diff: 1
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
12) A BPMN diagram may be used as a ________ for streamlining a
current or proposed accounting system.
Answer: tool
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
13) ________ and ________ are rectangles used to group and
organize activities in a BPMN diagram.
Answer: Swim lanes, pools
Diff: 1
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
14) The specifications for the BPMN is maintained by
1. A)
AICPA
2. B)
GAAP
3. C)
OMG
4. D)
Wheat Commission
Answer: C
Diff: 1
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
15) In a BPMN diagram, which symbol represents a start event?
1. A)
2. B)
3. C)
4. D)
Answer: B
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
16) In a BPMN diagram, which symbol represents an intermediate
event?
1. A)
2. B)
3. C)
4. D)
Answer: D
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
17) In a BPMN diagram, which symbol represents a gateway?
1. A)
2. B)
3. C)
4. D)
Answer: A
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
18) In a BPMN diagram, which symbol represents a pool?
1. A)
2. B)
3. C)
4. D)
Answer: B
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
19) In a BPMN diagram, which symbol represents a data object?
1. A)
2. B)
3. C)
4. D)
Answer: D
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
20) In a BPMN diagram, which symbol represents a sub-process?
1. A)
2. B)
3. C)
4. D)
Answer: A
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
21) In a BPMN diagram, which symbol represents a data flow?
1. A)
2. B)
3. C)
4. D)
Answer: A
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
22) In a BPMN diagram, which symbol represents a data store?
1. A)
2. B)
3. C)
4. D)
Answer: D
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
23) In a BPMN diagram, which symbol represents an activity?
1. A)
2. B)
3. C)
4. D)
Answer: B
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
24) In a BPMN diagram, which symbol represents an event?
1. A)
2. B)
3. C)
4. D)
Answer: C
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
25) In a BPMN diagram, which color is a start event?
1. A)
Green
2. B)
Red
3. C)
Yellow
4. D)
White
Answer: A
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
26) In a BPMN diagram, which color is an intermediate event?
1. A)
Green
2. B)
Red
3. C)
Yellow
4. D)
White
Answer: C
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
27) In a BPMN diagram, which color is a process?
1. A)
Green
2. B)
Red
3. C)
Yellow
4. D)
White
Answer: D
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
28) How may a BPMN diagram be used?
Answer: 1. As documentation to describe the current
accounting system
2. As a
blueprint to describe a new, proposed accounting system
3. As a
tool for streamlining a current or proposed accounting system
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
29) What are the steps to read a BPMN diagram?
Answer: Step 1: Identify the Start event that triggers the
process.
Step 2: Identify the activities.
Step 3: Identify gateways where forking or merging data flow
occur.
Step 4: Identify data objects.
Step 5: Identify data stores.
Step 6: Trace data flows.
Step 7: Identify the End Event.
Diff: 3
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
Books Ga’Lore! Create Invoice BPMN
30) List all the data objects in the Books Ga’Lore! BPMN diagram.
Answer: Notification (3) Pick List, Invoice
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
31) List all the gateways in the the Books Ga’Lore! BPMN
diagram.
Answer: Is customer identify verified?
Are items in stock?
Is credit card verified?
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
32) List all the processes in the the Books Ga’Lore! BPMN
diagram.
Answer: Place Order
Process Customer Order
Verify Credit Card
Authorize Shipping
Pick Items
Ship Items with Pick List
Notify Accounting Items Shipped
Generate Invoice
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
33) List all the data stores in the the Books Ga’Lore! BPMN
diagram.
Answer: Customer Table
Item Table
Sales Order Table
Sales Order Line Table
Diff: 3
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
34) List all the pools and swim lanes in the the Books Ga’Lore!
BPMN diagram. Specify if it is a pool or swim lane.
Answer: Customer (pool/swim lane), Books Ga’Lore! (pool),
Data (swim lane), Warehouse (swim lane), Accounting (swim lane), Credit Card
Company (pool/swim lane)
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
35) In a BPMN diagram, define an event. How is an event
represented?
Answer: An event triggers, interrupts, or ends a process.
Events are represented by circles. The circles are stoplight coded:
-. Start–Green
– Intermediate–Yellow
-. End–Red
There are also Start and Intermediate symbols with a clock in
the center of the symbol. These
symbols represent events scheduled at specific times.
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
36) In a BPMN diagram, define an activity. How is an activity
represented?
Answer: Activities are actions performed. An activity is
represented by a rounded rectangle.
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
37) In a BPMN diagram, define a gateway. How is a gateway
represented?
Answer: Gateways are used for forking and merging process
flows. Gateways, shown as diamond
shapes, represent decisions or possible outcomes to an activity.
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
38) In a BPMN diagram, define data. How is data represented?
Answer: Data symbols in a BPMN diagram can include the
following:
– Data flow
– Data object
– Data store
Data flow is represented by lines and arrows on the BPMN
diagram. Data flow shows how data enters a system, how it moves through a
system from process to process, where it is stored, and how it exits the
system. In addition, data flows can show when data is inserted, updated, or
deleted. Some BPMN software distinguishes between sequence flows (a solid line
and arrow) versus message flows (dotted line and arrow).
A data object can be a document or data record. Data objects are
sometimes called artifacts.
Data objects are represented by a rectangle with one corner
folded over.
A data store is where data is stored. A data store is
represented by a cylinder typically used to represent databases. For accounting
system purposes, data is stored in database tables. An accounting system uses
numerous interrelated database tables. The BPMN can designate either the
database or the specific database table(s) used.
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
39) In a BPMN diagram, define pools and swim lanes. How is pools
and swim lanes represented?
Answer: Swim lanes and pools are rectangles used to group
and organize activities in a BPMN diagram.
Pools represent major participants in the process and are often
used to identify separate organizations. swim lanes are used to organize
activities based on function or role.
Diff: 2
Objective: Q4.5 How do I read a BPMN 2.0 diagram?
Objective 6
1) In a BPMN diagram, the (+) sign indicates a more detailed
diagram.
Answer: TRUE
Diff: 1
Objective: Q4.6 How do I build a business process map?
2) The steps for building a business process map are very
different than the steps for building a flowchart.
Answer: TRUE
Diff: 1
Objective: Q4.6 How do I build a business process map?
3) When data flows into a process but does not flow out, it is
considered a ________.
Answer: Black hole
Diff: 1
Objective: Q4.6 How do I build a business process map?
4) When data flows out of a process but does not flow in, it is
considered a ________.
Answer: Miracle
Diff: 1
Objective: Q4.6 How do I build a business process map?
5) When the type of data that flows into a process does not
match the type of data that flows out, it is considered a ________.
Answer: gray hole
Diff: 1
Objective: Q4.6 How do I build a business process map?
6) When data is shown going into a process but no data is shown
going out, this is called
1. A) An
acceptable data flow
2. B)
Black hole
3. C)
Gray hole
4. D)
Miracle
Answer: B
Diff: 2
Objective: Q4.6 How do I build a business process map?
7) When the data leave a process does NOT match the data
entering a process, this is called
1. A) An
acceptable data flow
2. B)
Black hole
3. C)
Gray hole
4. D)
Miracle
Answer: C
Diff: 2
Objective: Q4.6 How do I build a business process map?
8) When data is shown leaving a process but not entering a
process, this is called
1. A) An
acceptable data flow
2. B)
Black hole
3. C)
Gray hole
4. D)
Miracle
Answer: D
Diff: 2
Objective: Q4.6 How do I build a business process map?
9) What are the steps for creating a BPMN diagram?
Answer: Step 1: Write narrative for a business activity.
Step 2: Annotate the narrative.
Step 3: Create a business process map to organize activities.
Step 4: Develop a business process map using the information
from the business process map organizer.
Step 5: Repeat steps 1 through 4 for each subprocess as needed.
Diff: 2
Objective: Q4.6 How do I build a business process map?
10) How is information to build a business process map
collected?
Answer: 1. Review current accounting system documentation.
2. Observe
business processes.
3. Interview
employees.
4. Conduct
surveys.
5. Prepare
narratives.
Diff: 2
Objective: Q4.6 How do I build a business process map?
Books Ga’Lore! Credit Sales Narrative
Books Ga’Lore! sells books. When a customer makes a credit card
purchase at their retail outlet, an employee processes the purchase and sends a
request to the credit card company to verify the customer’s good credit. After
receiving credit confirmation, the employee generates a receipt then gives the
receipt and items to the customer.
Books Ga’Lore! uses the following database tables: Customer
Table, Vendor Table, Inventory Table, Inventory Line Table
11) Annotate the Books Ga’Lore! Credit Sales narrative.
Answer:
Diff: 2
Objective: Q4.6 How do I build a business process map?
12) Create a business process map organizer for the Books
Ga’Lore! Credit Sales narrative.
Answer:
Diff: 2
Objective: Q4.6 How do I build a business process map?
13) Create a BPMN diagram for the Books Ga’Lore! Credit Sales
narrative.
Answer:
Diff: 2
Objective: Q4.6 How do I build a business process map?
Spice House Receive Inventory Narrative
Spice House receives the inventory items from the vendor. Spice
House processes the new inventory by verifying the shipment contents. The
warehouse adds the new items to inventory.
The Spice House database tables: Employee, Customer, Vendor,
Purchase Order, Purchase Order Line, Item, Packing List, Inventory, Inventory
Line Item, Accounts Payable, Accounts Receivable
14) Annotate the Spice House Receive Inventory narrative.
Answer:
Diff: 2
Objective: Q4.6 How do I build a business process map?
15) Create a business process map organizer for the Spice House
Receive Inventory narrative.
Answer:
Diff: 2
Objective: Q4.6 How do I build a business process map?
16) Create a BPMN diagram for the Spice House Receive Inventory
narrative.
Answer:
Diff: 2
Objective: Q4.6 How do I build a business process map?
17) Name and describe three common business process map errors.
Answer: The black hole error occurs when the data is shown
going into a process, but no data exits. A black hole in the universe has high
gravity force, which attracts and absorbs everything including light. A black
hole takes in data, but there is no output data.
The miracle error occurs when miraculously something comes out
of a process, but there was no input into the process. As illustrated in the
following figure, there are four data flow lines coming out of the process, but
there is no data flow line going into the process.
The gray error occurs when the input data does not generate the
output information. For example, if you enter customer information into the
event, process customer order, but the output data is vendor information, there
is an inconsistency between the input data and the output data.
Diff: 2
Objective: Q4.6 How do I build a business process map?
Accounting Information Systems, 2e (Kay/Ovlia)
Chapter 7 Accounting and Business Intelligence
Objective 1
1) Uninformed consumers drive enterprises to use their
information assets in more intelligent ways.
Answer: FALSE
Diff: 1
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
2) Intelligence involves the ability to see meaningful
interrelationships and glean insights.
Answer: TRUE
Diff: 1
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
3) Business intelligence cannot be used to improve decision making
and business performance.
Answer: FALSE
Diff: 1
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
4) By using various analysis, such as data mining and predictive
modeling, data can be transformed into business intelligence.
Answer: TRUE
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
5) Executive information systems provide information for
tactical, semi-structured decisions.
Answer: FALSE
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
6) Decision support systems provided support for strategic
decisions.
Answer: FALSE
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
7) ________ are IT tools suited for storing data, but have
limitations for analyzing data.
Answer: Relational databases
Diff: 1
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
8) ________ uses mathematical algorithms to find patterns,
trends, and relationships among data, such as customer purchasing patterns.
Answer: Data mining
Diff: 1
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
9) ________ uses mathematical algorithms to predict future
trends, such as future customer purchases.
Answer: Predictive modeling
Diff: 1
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
10) ________ provide information for tactical, semi-structured
decisions and was a predecessor of today’s intelligence tools.
Answer: Decision support systems
Diff: 1
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
11) ________ systems provided information for routine,
operational decisions.
Answer: Enterprise resource planning
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
12) Business intelligence answers questions such as
1. A)
What products did customers buy last week?
2. B)
What products did customers buy today?
3. C)
What products will customers will buy next year?
4. D)
What products did customers buy last years?
Answer: C
Diff: 1
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
13) Which business intelligence tool is more likely to identify
a credit card transaction from a stolen credit and not from the cardholder?
1. A)
Data mining
2. B)
Predictive modeling
3. C)
Interactive decision model
4. D)
Shadow data
Answer: A
Diff: 3
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
14) Which business intelligence tool is more likely to identify
the next “must have” children’s toy?
1. A)
Shadow data
2. B)
Predictive modeling
3. C)
Data mining
4. D)
Interactive decision model
Answer: B
Diff: 1
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
15) Which of the following is an example of a routine business
decision?
1. A)
Contracting with another enterprise to provide a customer support call center
2. B)
Using the most cost effective shipping procedure
3. C)
Purchasing a competing business
4. D)
Launching a new product
Answer: B
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
16) Which of the following is an example of a strategic
decision?
1. A)
Contracting with another enterprise to provide a customer support call center
2. B)
Using the most cost effective shipping procedure
3. C)
Purchasing a competing business
4. D)
Launching a new product
Answer: A
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
17) Tactical decisions are
1. A)
Recurring and typically relate to ongoing business operations
2. B)
Usually long term in nature and unstructured with a high degree of ambiguity
3. C)
Typically short term, impacting one year or less
4. D)
Structured
Answer: C
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
18) Which one of the following is NOT a predecessor of today’s
tools used for data analysis?
1. A)
Executive information systems
2. B)
Business intelligence systems
3. C)
Enterprise resource planning systems
4. D)
Decision support systems
Answer: B
Diff: 3
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
19) The purpose of integrating quantitative and qualitative
factors in the decision making process is to
1. A)
Organize the decision making process
2. B)
Bring order to the complex business environment
3. C)
Improve the quality of the decision
4. D) To
analyze why customers buy a certain product or service
Answer: C
Diff: 3
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
20) What are the three main functions of an accounting system?
Answer: 1. Store accounting data.
2. Analyze
accounting data to use in decision making.
3. Safeguard
the accounting data.
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
21) Define the three of business decisions. Provide an example
of each.
Answer: Routine operational decisions are recurring and
typically relate to ongoing business operations. After a routine decision is
made once, the same decision can be applied until the environment or business
operation requires reevaluation. An example of a routine decision would be the
most cost effective shipping procedure. Routine operational decisions are also
called structured decisions, and have the least ambiguity.
Tactical decisions are typically short term, impacting one year
or less. Examples of tactical decisions are outsourcing and special orders.
These decisions are considered semi-structured, with more ambiguity than
routine decisions but less ambiguity than strategic decisions.
Strategic decisions are usually long term in nature and
unstructured with a high degree of ambiguity. Examples of strategic decisions
include mergers and acquisitions, diversification, and divestiture.
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
22) What were the predecessors of today’s sophisticated
intelligence tools used for data analysis?
Answer: In the past, enterprise resource planning (ERP) systems
provided information for routine, operational decisions. Decision support
systems, or DSS, provided information for tactical, semi-structured decisions.
Executive information systems provided support for strategic decisions.
Diff: 2
Objective: Q7.1 How is business intelligence used for
decision making in today’s business environment?
Objective 2
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