Management Information Systems

MODULE 2 D. recording financial transactions in the accounting records Bobadilla

MANAGEMENT INFORMATION SYSTEMS
6. A data base is
1. The primary functions of a computerized information system include A. essential for storage of large data sets C. a collection of related files Bobadilla
A. input, processing, and output B. a real-time system D. a network of computer terminals
B. input, processing, output, and storage
C. collecting, sorting, summarizing, and reporting 7. Advantages of a database system include all of the following except Bobadilla
D. input, processing, output, storage, and control Bobadilla A. elimination of data redundancy C. single update for changes in data
B. open access to all data by all users D. confidence that all data is current
2. Accounting systems are designed to
A. analyze and interpret information 8. Devices that are used only to perform sequential file processing will not permit
B. allow managers to manage by exception A. data to be edited on a separate computer run
C. provide information required to support decisions B. the use of a data base structure
D. record and report business transactions Bobadilla C. data to be edited in an off-line mode
D. data to be edited on a real-time basis Bobadilla
3. The accounting and other reports coming to management are called feedback and would be
used 9. Sequential access means that
A. only in carrying out the control function to ensure that each part of the organization is A. data are stored on magnetic tape
following the plans laid out in the planning stage. B. the address of the location of data is found through the use of either an algorithm or an
B. in planning, organizing and directing, controlling, and decision making since the index
information feedback provided is vital to all these functions. C. each record can be accessed in the same amount of time
C. relatively infrequently since feedback primarily is historical in nature and therefore is D. to read record 500, records 1 through 499 must be read first Bobadilla
irrelevant to most managerial functions.
D. primarily to develop reports to stockholders, creditors, and governmental taxing and 10. If a data base has integrity, the
regulatory agencies. Bobadilla A. software was implemented after extensive acceptance testing.
B. data base has only consistent data.
4. Important types of control systems and procedures for accounting information systems are C. data base is secure form accidental entry.
feedback, feed forward, and preventive control systems. Which of the following accomplish D. data base and the system have been reviewed by an external auditor. Bobadilla
them, respectively?
A. Cost accounting variances, separation of duties, and cash planning. 11. An organization employs multiple central processors to serve multiple real-time applications
B. Cost accounting variances, cash budgeting, and organizational independence. and multiple classes of users. Data processing jobs are completed by the processor that is
C. Cash budgeting, cost accounting variances, and separation of duties. best designed to perform the job efficiently. The processors are at different locations and are
D. Inventory control, capital budgeting, and hiring qualified employees. Bobadilla connected by data communication lines. The organization is employing a systems
configuration referred to as a
5. Which is not a primary function of an AIS transaction processing system? A. simplex system
A. converting economic events into financial transactions B. duplex system
B. distributing financial information to operations personnel to support their daily operations C. distributed data processing system
C. monitoring external economic events D. communication (front end) processor system Bobadilla

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12. A system with several computers that are connected for communication and data transmission 18. In determining the need for system changes, several types of feasibility studies can be made.
purposes but that permits each computer to process its own data is a The most commonly recognized feasibility studies are
A. distributed data processing network C. centralized network A. legal, environmental, and economic
B. decentralized network D. multidrop network Bobadilla B. technical, operational, and economic
C. technical, economic, legal, and practical
13. A major disadvantage of distributed data processing is D. practical, technical, and operational Bobadilla
A. the increased time between job request and job completion.
B. the potential for hardware and software incompatibility among users. 19. When designing a computer-based information system, the initial step in the systems design
C. The disruption caused when the mainframe goes down. process is to determine
D. that data processing professionals may not be properly involved. Bobadilla A. the required output
B. the source documents that serve as the basis for input
14. Advantages of distributed data processing include each of the following, except C. the processing required
A. cost reductions D. the decisions for which data will be required Bobadilla
B. better management of organization resources
C. improved operational efficiency 20. Errors are most costly to correct during
D. increased user satisfaction Bobadilla A. programming C. analysis
B. implementation D. detailed design Bobadilla
15. Remote batch processing avoids the need for having
A. terminals at each user location 21. User acceptance is part of which phase of the system development life cycle?
B. printers at each user location A. implementation
C. a central processing unit at each user location B. general systems design
D. input controls at each user location Bobadilla C. program specification and implementation planning
D. detailed systems design Bobadilla
16. What-if analysis is best conducted with
A. a decision support system C. a neural network system Bobadilla 22. Which of the following is not a characteristic of a batch processing system?
B. an expert system D. a traditional programming application A. The collection of like transactions which are sorted and processed sequentially against a
master file.
17. For an automated system to provide for continuity and effective control over the proposed data B. Keypunching of transactions, followed by machine processing.
processing activities, the systems development process should be performed in a certain C. The production of numerous printouts. Bobadilla
order. Which of the following sequences lists the computer systems development phases in D. The posting of a transaction, as it occurs, to several files without intermediate printouts.
the order in which they should be performed?
A. Implementation, planning, development of user specifications, system planning, and 23. In contrast to a real-time system, in a batch processing system
programming A. there is a lag between the time when the economic event occurs and the financial records
B. Development of user specifications, development of technical specifications, are updated
implementations, planning, and programming. B. relatively more resources are required
C. Training of user department personnel, implementation planning, and system testing. C. a greater resource commitment per unit of output is required
D. Implementation planning, programming, conversion, and systems testing. Bobadilla D. processing takes place when the economic event occurs Bobadilla

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D. Collection, refinement, storing, output. Bobadilla

24. In contrast to a batch processing system, in a real-time system
A. a lag occurs between the time of the economic event and when the transaction is
recorded
B. relatively fewer hardware, programming, and training resources are required
C. a lesser resource commitment per unit of output is required
D. processing takes place when the economic event occurs Bobadilla
31. A major advantage of obtaining a package of applications programs from a software vendor is
A. the likelihood of reducing the time span from planning to implementation.
B. the ability to more easily satisfy the unique needs of users
C. greater operating efficiency from the computer
D. the assurance the programs will be written in a high-level language Bobadilla

25. The characteristics that distinguish batch and real-time systems include all of the following 32. The batch processing of business transactions can be the appropriate mode when
except A. the sequence of master file records is not relevant
A. time frame C. file format B. timeliness is a major issue
B. resources used D. efficiency of processing Bobadilla C. a single handling of the data is desired
D. economy of scale can be gained because of high volumes of transactions Bobadilla
26. All activity related to a particular application in a manual system is recorded in a journal. The
name of the corresponding item in a computerized system is a 33. One of the first steps in the creation of a data base is to
A. master file C. year-to-date file A. define common variables and fields used throughout the firm
B. transaction file D. current balance file Bobadilla B. increase the secondary storage capacity.
C. obtain software that will facilitate data retrieval.
27. An integrated set of computer programs that facilitates the creation, manipulation, and D. integrate the accounting system into the data base. Bobadilla
querying of integrated files is called a(n)
A. Compiler C. Operating system 34. A fundamental purpose of a database management system is to
B. Assembly language D. Database management system Bobadilla A. store all data for an organization in multiple files.
B. reduce data redundancy
28. Of the following, the greatest advantage of a database architecture is C. use physical data organization concepts instead of logical data Bobadilla
A. Data redundancy can be reduced. D. change the manner in which application programs access individual data elements
B. Conversion to a database system is inexpensive and can be accomplished quickly.
C. Multiple occurrences of data items are useful for consistency checking. 35. Turnaround documents
D. Backup and recovery procedures are minimized. Bobadilla A. Generally circulate only within the computer center.
B. Can be read and processed only by the computer.
29. The least risky strategy for converting from a manual to a computerized accounts receivable C. Are generated by the computer and eventually return to it.
system would be a D. Are only used internally in an organization. Bobadilla
A. Direct conversion C. Parallel conversion
B. Pilot Conversion D. Data based conversion Bobadilla 36. The amount of useful work performed by a computer system during a given period of time is
referred to as
30. Which of the following comprises all of the data components of the data processing cycle? A. overlap C. overload
A. Batching, processing, output. B. input/output D. throughput Bobadilla
B. Collection, refinement, processing, maintenance, output.
C. Input, classifying, batching, verification, transmission

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37. In a manual system, records of current activity are posted from a journal to a ledger. In a 44. When viewed from the highest to most elemental level, the data hierarchy is
computer system, current records from a(an) A. attribute, record, file C. file, record, key
A. table file are updated to a transaction file B. file, record, attribute D. record, attribute, key Bobadilla
B. transaction file are updated to a master file
C. master file are updated to a year-to-date file 45. Which of the following files is a temporary file?
D. current balance file are updated to an index file Bobadilla A. transaction file C. master file
B. reference file D. standing file Bobadilla
38. The installation of a database management system is not likely to have any direct impact on
A. data redundancy within files 46. An advantage of having a computer maintain an automated error log in conjunction with
B. sharing of common data computer edit programs is that
C. inconsistencies within common data fields A. reports can be developed that summarize the errors by type, cause, and person
D. the logic needed to solve a problem in an application program Bobadilla responsible
B. less manual work is required to determine how to correct errors
39. A systems program C. better editing techniques will result
A. manipulates application programs D. the audit trail is maintained Bobadilla
B. employs complex mathematics algorithms
C. is written in a high level language 47. One of the first steps in the creation of a data base is to
D. is used in systems analysis and design activities Bobadilla A. define common variables and fields used throughout the firm
B. increase the secondary storage capacity.
40. A computer system that allows for immediate updating of files is referred to as C. obtain software that will facilitate data retrieval.
A. on-line processing C. instantaneous processing D. integrate the accounting system into the data base. Bobadilla
B. a mainframe processing D. batch processing Bobadilla
48. The installation of a data base management system is not likely to have any direct impact on
41. The type of data processing in which remote terminals provide direct access to the computer is A. data redundancy within files.
A. on-line processing C. batch processing B. sharing of common data.
B. remote processing D. central processing Bobadilla C. inconsistencies within common data fields.
D. the logic needed to solve a problem in an application program. Bobadilla
42. A journal is used in manual accounting environments. What file is comparable to a journal in a
computerized environment? 49. A program that attaches to another legitimate program but does not replicate itself is called
A. archive file C. transaction file A. virus C. trojan horse
B. reference file D. master file Bobadilla B. worm D. logic bomb Bobadilla

43. The most important purpose of a turnaround document is to
A. serve as a source document
B. inform a customer of the outstanding amount payable
C. provide an audit trail for the external auditor
D. inform the bank of electronic funds deposits
50. Choosing existing employees and providing them with the necessary technical training is
preferred to hiring data processing specialist from the outside because
A. the technical training needed is not extensive.
B. using newly hired people tends to slow down programming efforts.
Bobadilla C. existing employees are not likely to resist any changes that result from computerization.
D. existing employees are knowledgeable about the company’s business. Bobadilla

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B. processing groups of data at regular intervals.

51. The purpose of a software monitor is to C. processing data immediately upon input.
A. test for controls in computer programs. D. the overlapping of input/output and processing operations. Bobadilla
B. determine whether computer programs contain endless loops.
C. collect data on the use of the various hardware components during a computer run. 58. Computer manufacturers are now installing software programs permanently inside the
D. help application programmers to write-error-free code. Bobadilla computer as part of its main memory to provide protection from erasure or loss if there is
interrupted electrical manpower. This concept is known as
52. A motivation for expanding the use of firmware is to A. file integrity C. machine language
A. make computer system more responsive to user needs. B. random access memory (RAM) D. firmware Bobadilla
B. gradually increase the need for programmers and simultaneously reduce the need for
system analysts. 59. The reporting of accounting information plays a central role in the regulation of business
C. reduce hardware cost. Bobadilla operations. Preventive controls are an integral part of virtually all accounting processing
D. control cost by turning certain task presently performed by software over to hardware. systems, and much of the information generated by the accounting system is used for
preventive control purposes. Which one of the following is not an essential element of a sound
53. The most important factor in planning for system change is preventive control system?
A. having an auditor as member of the design team. A. Separation of responsibilities for the recording, custodial, and authorization functions.
B. using state-of-the-art techniques. B. Sound personnel policies
C. concentrating on software rather than hardware. C. Documentation of policies and procedures
D. involving top management and people who use the system. Bobadilla D. Implementation of state-of-the-art software and hardware Bobadilla

54. A positive alternative to parallel operation when converting to a new system is 60. A modem is a device that
A. to perform a walk through. A. is used to aid in backup procedures.
B. the involvement of auditors in system design. B. traces the execution of steps by a program.
C. the use of embedded logic and other self-checking features. C. speeds up online printing.
D. a pilot operation. Bobadilla D. allows computer signals to be sent over a telephone line. Bobadilla

55. An integrated group of programs that supervises and supports the operation of a computer 61. The representation of the flow of data through a series of operations in an automated data
system as it executes user’s application program is called a(n) processing system is a
A. operating system C. object program A. document flowchart C. macro flowchart
B. utility programs D. database management system Bobadilla B. system flowchart D. program flowchart Bobadilla

56. Specialized programs that are made available to users of computer systems to perform routine 62. A systems tool that depicts the flow of information relating to a particular transaction through
and repetitive functions are referred to as an organization is a
A. operating system C. service programs A. document flowchart C. macro flowchart
B. utility programs D. database management system Bobadilla B. micro flowchart D. program flowchart Bobadilla

57. An interactive system environment is best characterized by 63. The representation of the sequence of the logical operations performed by a computer in
A. data files with records that are arranged sequentially. executing a program is a

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A. document flowchart C. macro flowchart A. interviews are conducted with operating people and managers.
B. system flowchart D. program flowchart Bobadilla B. The complete documentation of the system is obtained and reviewed.
C. measures of processing volume are obtained for each operation
64. A diagramming tool used to represent the logical elements of a system is a D. Equipment sold by various computer manufacturers is reviewed in terms of capability, cost
A. programming flowchart C. entity relationship diagram and availability. Bobadilla
B. document flowchart D. data flow diagram Bobadilla
71. The analysis tool for the systems analyst and steering committee to use in selecting the best
65. Document flowcharts systems option is
A. depict logical tasks that are being performed, but not who is performing them A. cost-benefit analysis C. systems design
B. illustrate the relationship between processes, and the documents that flow between them B. decision tree analysis D. user selection Bobadilla
and trigger activities
C. represent relationships between key elements of the computer system 72. The proper sequence of activities in the systems development life cycle is
D. describe the logic of the process Bobadilla A. Design, analysis, implementation, and operation.
B. Design, implementation, analysis, and operation.
66. A system flowchart C. Analysis, design, implementation, and operation.
A. is synonymous with a program flowchart. D. Programming, analysis, implementation, and operation. Bobadilla
B. is necessary for only computer processes.
C. shows general flow and sequence but not processing details. 73. The process of monitoring, evaluating, and modifying a system as needed is referred to as
D. shows the internal logic needed by a programmer. Bobadilla A. system analysis C. systems design
B. system maintenance D. system feasibility study Bobadilla
67. a useful tool for formatting computer input and file records is a
A. document flowchart C. printer layout chart 74. The process of learning the current system functions, determining the need of user, and
B. record layout sheet D. work distribution analysis Bobadilla developing the logical requirements of a proposed system is referred to as
A. system analysis C. system feasibility study
68. The process of locating and correcting an error in a computer program is referred to as B. systems maintenance D. systems implementation Bobadilla
A. problem solving C. debugging
B. diagnostic review D. file maintenance Bobadilla 75. The process of developing specifications for hardware, software, personnel hours, data
resources, and information products required to develop a system is referred to as
69. The stage of a systems study that would include up-to-date organization charts, description of A. systems analysis C. systems feasibility
the present system; complete flowcharts for the present system; forms and layouts of all input B. systems design D. systems maintenance Bobadilla
and output documents (along with samples) used in the present systems; and summaries of
interviews, review sessions, and personal observations regarding the present system is 76. An activity that is not considered part of the system design phase is
A. problem definition C. problem analysis A. document flowcharting
B. system design D. program analysis Bobadilla B. specification of format and content of report documents
C. work distribution analysis
70. A systems survey is being conducted to obtain an accurate perspective on the existing system D. system survey Bobadilla
and to identify weaknesses that can be corrected by the new system. Which one of the
following steps is not considered part of this systems survey? 77. Documentation of a computerized business system should begin

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A. when computer programs are being written

B. as soon as the proposed systems flowcharts have been completed 84. Coding in data processing assigns a unique identification number or key to each data record.
C. once a smooth conversion has been assured Which one of the following statements about coding is incorrect?
D. at the time of the original analysis Bobadilla A. A primary key is the main code used to store and locate records within a file.
B. Records can be sorted, and temporary files created, using codes other than their primary
78. The CFK Company is doing a systems development study. The study started with broad keys.
organizational goals and the types of decisions made by organizational executives. This study C. Secondary keys are used when the primary keys cannot be found.
supports a model of information flow and, ultimately, design requirements. This approach to D. A given data record may have more than one secondary key. Bobadilla
systems development is called
A. bottom-up C. top-down 85. EDP accounting control procedures are referred to as general or application controls. The
B. network D. strategic Bobadilla primary objective of application controls in a computer environment is to
A. ensure that the computer system operates efficiently
79. In an inventory system on a data base management system, one stored record contains part B. maintain the accuracy of the inputs, files, and outputs for specific applications
number, part name, part color, and part weight. These individual items are called C. ensure the separation of incompatible functions in the data processing departments
A. fields C. stored files D. plan for the protection of the facilities and backup for the systems Bobadilla
B. bytes D. occurrences Bobadilla
86. A checkpoint or restart procedure is primarily designed to recover from
80. The use of pointers can save time when sequentially updating a A. programming errors
A. master file C. data base management system B. the failure to have all input data ready on time
B. batch file D. random file Bobadilla C. hardware failures
D. data input errors Bobadilla
81. A major disadvantage of distributed data processing is
A. the increased time between job request and job completion. 87. Reviewing data base authority tables is a(n)
B. the potential for hardware and software incompatibility among users. A. access control C. data resource control
C. The disruption caused when the mainframe goes down. B. organizational access control D. operating resource control Bobadilla
D. that data processing professionals may not be properly involved. Bobadilla
88. Which of the following is not a data communication control objective?
82. A distinguishing feature of a smart terminal is that it A. maintaining critical application list
A. combines people and machines that work together to get intelligent responses. B. correcting message loss due to equipment failure
B. can often be programmed to carry out special tasks. C. preventing illegal access
C. must be on-line to a computer to be used. D. rendering useless any data that are successfully captured by a perpetrator Bobadilla
D. is used effectively to store and edit data before transmissions Bobadilla
89. An electronic walkthrough of the application’s internal logic is called
83. In the context of a feasibility study, technical feasibility refers to whether A. salami logic tests C. integrated test
A. a proposed system is attainable, given the existing technology. B. tracing D. logic bomb tests Bobadilla
B. the systems manager can coordinate and control the activities of the systems department.
C. an adequate computer site exists for the proposed system. 90. Which of the following would strengthen organizational control over large-scale electronic data
D. the proposed system will produce economic benefits exceeding its costs. Bobadilla processing activities?

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A. requiring the user departments to specify the minimum standards of control that are D. access can be gained electronically without physical entry to the facilities Bobadilla
necessary to handle transactions and to process data.
B. requiring that requests for data processing services be submitted directly to the console 96. A major objective of database management system is to reduce considerably
operator of the EDP department. A. systems analysis and design activities
C. having the librarian report to the supervisor of computer operations rather than to the B. the need of application programmers
manager of computer operations. C. data entry complexity
D. none of the above Bobadilla D. data redundancy Bobadilla

91. The main components of the central processing unit (CPU) of a computer include only 97. A partial set of standard characteristics of a real-time system is
A. control, arithmetic/logic, and memory A. batched input, on-line files, and an extensive communication network.
B. input, processing, and output. B. reliance upon sequential files, prompt input from users, and interactive programs.
C. software, register, and primary memory C. on-line files, prompt input users, and an extensive communication network.
D. memory, processing, and register Bobadilla D. the use of high-level language and the major need being for historical reports Bobadilla

92. An operating system is 98. While systems analysis focuses on information needs and objectives, system design
A. the assembler program including the source and object program concentrates on
B. all hardware and software needed to operate the computer system A. writing programs C. testing completed modules
C. the programs that manage the processing operations of the computer B. providing for controls D. what to do and how to do it Bobadilla
D. only the hardware of the computer system Bobadilla
99. In a computerized billing system, the computer generates a form that has two parts. The first
93. Analysis of an existing system and planning for improvements generally includes a study of part is the bill that a customers are to retain and the second part is to be returned by
the volume of input transactions. The most relevant base of counting those transactions is customers with their payments. The return portion of the form is referred to as a(n)
A. an average count for a period of time A. master document C. turnaround document
B. an actual count for several periods selected at random B. point-of-sale document D. transaction document Bobadilla
C. an actual count for a peak period
D. an actual count and their distribution within various time periods
E. an actual low count and the actual high count during any given period Bobadilla

94. A current trend regarding input forms in computer system is

A. the use of less preprinting on such forms
B. the gradual reduction in the use of the multiple-part style
C. the adoption of a standard layout among business organization
D. the elimination of the form itself Bobadilla

95. Computer systems are becoming more vulnerable to unauthorized access because
A. hardware design consideration have declined
B. software cannot be readily written to control access
C. systems documentation must be available to all users

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