Accounting Information Systems The Crossroads of Accounting And IT 2nd Edition – Test-Bank

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Accounting Information Systems The Crossroads of Accounting And IT 2nd Edition – Test-Bank

Accounting Information Systems, 2e (Kay/Ovlia)

Chapter 6   Integrated Enterprise Systems and Cloud Computing

 

Objective 1

 

1) Technological advances in the past 15 to 20 years make it very difficult to integrate the accounting system with other systems.

Answer:  FALSE

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

2) Silo systems were usually built on platforms (hardware and operating systems) that best fit an individual department needs.

Answer:  TRUE

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

3) The Internet permits remote sites to use a central database less efficiently.

Answer:  FALSE

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

4) Each time data is rekeyed, it presents another opportunity for errors to enter the system.

Answer:  TRUE

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

5) A computer system that does not connect or communicate with any other computer system is called a ________.

Answer:  stand-alone system or silo system

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

6) ________ connect stand-along personal computers.

Answer:  local area networks (LANs)

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

7) Custom programs that connected separate systems is sometimes called ________.

Answer:  spaghetti code

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

 

8) Integrated enterprise systems provide an opportunity to use the shared data to create ________ and ________ to monitor enterprise performance.

Answer:  business intelligence, digital financial dashboards

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

9) The first computer systems were

  1. A) Connected with other systems using spaghetti code
  2. B) Stand-alone silo systems
  3. C) Connected to other systems using local area networks
  4. D) Connected to other systems wirelessly

Answer:  B

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

10) For optimal effectiveness, the accounting system needs to be

  1. A) Running in a stand-alone environment
  2. B) Integrated throughout the enterprise
  3. C) Inaccessible to accountants
  4. D) Unsecured so that anyone can access the data

Answer:  B

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

11) In the 1960s and 1970s, stand-alone systems within a company were often connected using

  1. A) Spaghetti code
  2. B) Local area networks
  3. C) Wireless networks
  4. D) Flash drive networks

Answer:  A

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

12) In the early 1980s, data was shared between personal computers using

  1. A) Flash drives
  2. B) Local area networks
  3. C) Floppy disks
  4. D) Wireless networks

Answer:  C

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

 

13) An automated work flow automates

  1. A) Information flow among enterprise segments and other enterprises at remote sites
  2. B) The flow of documents among employees
  3. C) The flow of information among software modules and functional areas
  4. D) The flow of data to databases

Answer:  B

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

14) Automated business processes automate

  1. A) Information flow among enterprise segments and other enterprises at remote sites
  2. B) The flow of documents amount employees
  3. C) The flow of information among software modules and functional areas
  4. D) The flow of data to databases

Answer:  A

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

15) The integrated enterprise system offers a business process management system by combining all the following EXCEPT

  1. A) Change management
  2. B) Automated workflow
  3. C) Internet technologies
  4. D) Automated business processes

Answer:  A

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

16) Why does an accounting system need to be integrated throughout an enterprise?

Answer:  The accounting system interacts with all aspects of an organization, capturing and providing information to virtually all areas within an enterprise. Sales, purchasing, human resources, shipping, receiving, operations, production, customer service, and others rely upon the accounting system to capture and retrieve data needed to meet their needs.

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

17) What are the tiers in a silo computer system?

Answer:

– Database tier

– Application tier

– User tier

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

 

18) What is a stand-alone, or silo, computer system?

Answer:  A stand-alone, or silo, computer system is any computer system that does not connect with another computer system within the organization. Data in a stand-alone system is not shared with other computer systems within the organization.

Diff: 3

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

19) Trace the path from stand-alone systems to integrated enterprise systems.

Answer:

– Stand-alone mainframe systems

– spaghetti code to connect stand-alone mainframe systems

– Stand-alone personal computers

– Floppy disk to share data between stand-alone personal computers

– Local area networks to connect stand-alone personal computers

– Client server architecture to improve LANs

– Integrated enterprise systems

Diff: 3

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

20) What is a client server?

Answer:  A computer that serves other computers on a network. A client server generally has more processing power and disk storage space.

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

21) What is a local area network (LAN)?

Answer:  A local area network (LAN) connects a group of stand-alone computers within an organization. This permits the sharing of electronically between computers. This was the birth of computer networks.

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

22) What is a client server architecture?

Answer:  Client server architecture is basically the addition of servers (computers that serve other computers on the network with more processing power and disk storage space) to a LAN. These servers improved the sharing of applications and data throughout the organization. The client in these systems is usually the computers setting on individual workers’ desks. The servers store and retrieve data that is requested by the client.

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

 

23) Why did many companies install new integrated enterprise systems at the turn of the millennium?

Answer:  When database storage space was relatively costly, programmers would save storage space by saving only the required characters. In the case of the year, only the last two characters were usually stored. This solution worked well for years 1953, 1976, and 1981. However, with the advent of the new millennium, if only the last two digits were stored, the system would not know if 53 referred to 1953 or 2053. In this case, software application programs would not run properly, integrated processors in production equipment might not function, and database queries would not retrieve needed data. The new systems solved this issue.

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

24) Provide an example of how the integrated enterprise system technology permits data to flow through functional areas as it passes through the value chain.

Answer:  Data entered for supply chain management (SCM) can be reused by the accounting system in the purchasing cycle. Time worked by shop floor employees, tracked by the operations/production system (OPS), is used in the accounting payroll cycle. Customer transaction information can be shared by customer relationship management (CRM) and the accounting system sales cycle.

Diff: 3

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

Objective 2

 

1) A well-designed integrated enterprise system offers live information that facilitates business agility.

Answer:  TRUE

Diff: 1

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

2) Overestimating implementation costs is a leading cause of project failures.

Answer:  FALSE

Diff: 1

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

3) Integrated systems can improve all the following EXCEPT

  1. A) Communication
  2. B) Coordination of activities
  3. C) Reduction of duplication
  4. D) Shifting to functional silos

Answer:  D

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

 

4) One of the benefits of an integrated enterprise system is

  1. A) Having to change how business operations are conducted
  2. B) The need to customize the integrated enterprise system to meet specific organizational needs
  3. C) The integration of best practices which facilitate compliance with regulatory and accounting requirements
  4. D) Managing the change that individuals within the organization experience as a result of the newly integrated system

Answer:  C

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

5) Business Process Management involves

  1. A) Customizing the accounting system to meet current business practices
  2. B) Writing code to connect multiple heterogeneous systems
  3. C) Managing the change that individuals within the organization experience as the result of moving to an new system
  4. D) Changing how business operations are conducted

Answer:  D

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

6) What are the benefits of an integrated enterprise system?

Answer:

– Integrated systems can improve communication, coordinate activities, and reduce

duplication.

– Integrated system providers, such as SAP and Oracle, incorporate best practices into their products. Best practices can facilitate compliance with regulatory and accounting requirements of the Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB), and the Sarbanes-Oxley Act.

– Integrated systems may grant suppliers and customers access to track shipments and orders within the system. Sharing information with supply-chain partners can improve efficiency and coordination, thereby reducing costs.

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

7) What are the challenges of an integrated enterprise system?

Answer:  Two challenges some enterprises have faced when implementing integrated enterprise systems are shifting from functional silos to integrated system business processes and managing the change required by such a shift.

 

Yet another challenge to implementing an integrated enterprise system is whether to link current heterogeneous systems or to start anew.

 

One of the challenges of implementing an integrated enterprise system is staying on time and on budget.

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

Objective 3

 

1) In a three-tier architecture, the database tier and application tier are considered the front-end.

Answer:  FALSE

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

2) The firewall program is like a communication policeman monitoring traffic to and from the servers, preventing unauthorized access.

Answer:  TRUE

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

3) Typically, firewalls are not constructed between each tier of the three-tier architecture.

Answer:  FALSE

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

4) In three-tier architecture, the database tier and application tier are considered the ________.

Answer:  back-end

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

5) In a three-tier architecture, the user tier is called the ________.

Answer:  front-end

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

6) The ________ executes commands to add, update, retrieve, and delete data from the database.

Answer:  Relational Database Management System (RDBMS)

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

7) The user interface may be text-based or a ________.

Answer:  graphical user interface (GUI)

Diff: 1

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

8) A ________ is a program on the router, an electronic device that routes data being transferred on the network.

Answer:  firewall

Diff: 1

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

 

9) Which tier below is NOT considered part of the integrated enterprise system architecture?

  1. A) Firewall tier
  2. B) User tier
  3. C) Database tier
  4. D) Application tier

Answer:  A

Diff: 1

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

10) The most important function of a firewall is

  1. A) Connect the three tiers within the integrated enterprise system
  2. B) Prevent unauthorized access to data
  3. C) Monitor network traffic to and from the server
  4. D) Allow the data to flow free throughout the system

Answer:  B

Diff: 3

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

11) A firewall does all the following EXCEPT

  1. A) Monitor network traffic to and from the server
  2. B) Route data being transferred through the network
  3. C) Prevent unauthorized access to data
  4. D) Allow the data to flow freely through the system

Answer:  D

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

12) What does the user tier consist of?

  1. A) Centralized database
  2. B) Front-end client computers
  3. C) Applications, such as Oracle Financial
  4. D) Firewall program

Answer:  B

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

13) Which component in an integrated enterprise system is responsible for preventing unauthorized access?

  1. A) Graphical User Interface (GUI)
  2. B) RDBMS
  3. C) Firewall
  4. D) Client computer

Answer:  C

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

14) Describe the IT architecture of an integrated enterprise system.

Answer:  The IT architecture of an integrated enterprise system is a three-tier architecture: database tier, application tier, and user tier.

 

The database tier is comprised of a large centralized relational database. As you know, the relational database uses software called relational database management system (RDBMS). The RDBMS executes commands to add, update, retrieve, and delete data from the database. The database and RDBMS are stored on database servers or specialized computers designed to maintain the database. Large-scale database applications, such as Oracle 11g database or IBM DB2, are examples of the types of databases used with large-scale integrated enterprise systems.

 

The application tier consists of application servers, specialized computers that store and run the applications, such as Oracle Financials or SAP. Applications are the software programs that interact with the RDBMS. The application tier contains the modules for accounting, operations, sales, supply chain, and human resources. For example, in an accounting software application, the accountant might enter adjusting entries to bring accounts up to date at year end. The accounting application software would interact with the RDBMS to update the appropriate account balances.

 

The user tier consists of front-end client computers. This would include the user interface that appears on the accountant’s computer screen. The user interface may be text-based or a graphical user interface (GUI). Accounting applications may use database forms that resemble the hard-copy paper forms in order to streamline data entry.

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

15) Why are firewalls placed between each tier of the integrated enterprise system?

Answer:  Firewalls are placed between each tier to mitigate risk of unauthorized access and possible data theft or destruction, security and control measures are used to safeguard the information assets stored in the integrated enterprise system. Each tier of the three-tier architecture has unique security and control requirements.

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

16) What is a firewall?

Answer:  A firewall is a program on the router, an electronic device that routes data being transferred on the network. The firewall program is like a communication policeman monitoring traffic to and from the servers, preventing unauthorized access.

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

 

Objective 4

 

1) Integrated enterprise systems, such as SAP, are able to integrate with customer systems to share data with customers.

Answer:  TRUE

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

2) SAP software is used around the globe by large companies to integrate supply chain, operations, sales, human resources, and accounting functions.

Answer:  TRUE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

3) SAP uses a navigation pane with tabs that correspond to the modules in the baseline accounting system.

Answer:  TRUE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

4) The SAP A/R Invoice is used to bill items received from a vendor.

Answer:  FALSE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

5) When a system allows the copying information from an existing document, such as a purchase order, it saves time and reduces the opportunity for error.

Answer:  TRUE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

6) When items are received from a vendor, SAP Business All-in-One requires someone to manually compare the PO, the goods received, and the bill entered (A/P Invoice).

Answer:  FALSE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

7) With SAP, it is not necessary to enter adjusting journal entries into the system. SAP calculates the values automatically at year end.

Answer:  FALSE

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

 

8) Some integrated enterprise system providers may also have additional modules to use in budgeting and cost accounting functions.

Answer:  TRUE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

9) The integrated database management system offers the enterprise additional reporting capabilities that could not be offered before the era of integrated systems.

Answer:  TRUE

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

10) Access to the SAP system is determined by the ________ assigned to a specific employee.

Answer:  role

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

11) ________ is designed for midsize businesses wanting an integrated enterprise system.

Answer:  SAP Business All-in-One

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

12) ________ is designed for small and midsize businesses seeking an integrated solution that goes beyond accounting-only software.

Answer:  SAP Business One

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

13) SAP Business All-in-One for midsize companies uses a ________ with traffic light alerts to track the order status from order placement, picking, and delivery.

Answer:  customer cockpit

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

14) The SAP purchasing module corresponds to the ________ module in the baseline accounting model.

Answer:  Vendor

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

15) To record items received, SAP uses a form called a ________.

Answer:  Goods Receipt PO

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

 

16) Table names in MS SQL Server start with the prefix [dbo] which stands for ________.

Answer:  database object

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

17) ________ includes business intelligence software to provide additional analysis for improved decision making.

Answer:  SAP Business All-in-One

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

18) Integrated enterprise system are capable of doing all of the following EXCEPT

  1. A) Integrate with vendor systems to share data with vendors
  2. B) Integrate enterprise modules to share data among the modules
  3. C) Integrate with competitor systems to gain a competitive advantage
  4. D) Integrate with customer systems to share data with customers

Answer:  C

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

19) The SAP Business One is designed for small and mid-size businesses wanting which of the following?

  1. A) Just an integrated enterprise system
  2. B) A solution that goes beyond accounting-only software
  3. C) A customized integrated enterprise system
  4. D) None of the above

Answer:  B

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

20) The sales cycle starts with the customer and ends with

  1. A) The receipt of goods
  2. B) The delivery of goods
  3. C) The payment of cash
  4. D) The collection of cash

Answer:  D

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

21) In SAP customer payment is recorded on a deposit form which is accessed in the

  1. A) Business Partners tab
  2. B) Administration tab
  3. C) Sales tab
  4. D) Banking tab

Answer:  D

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

22) In SAP Business All-in-One, the customer cockpit uses traffic light alerts to track the order status from

  1. A) Order placement, picking, and delivery
  2. B) Order placement, delivery, and payment
  3. C) Order fulfillment, delivery, and payment
  4. D) Order fulfillment, picking, and payment

Answer:  A

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

23) What does SAP call the sales cycle?

  1. A) Order-to-pay
  2. B) Procure-to-pay
  3. C) Order-to-cash
  4. D) Goods-to-cash

Answer:  C

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

24) Which form below is NOT one of the forms used in the SAP purchasing module?

  1. A) A/P Invoice
  2. B) Purchase Order
  3. C) A/P PO
  4. D) Goods Receipt PO

Answer:  C

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

25) The Goods Receipt PO form corresponds to the ________ event in the baseline module.

  1. A) Enter bills
  2. B) Receive items
  3. C) Create purchase order
  4. D) Count inventory

Answer:  B

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

26) When SAP Business All-In-One performs a three-way match in the purchasing module, what is NOT used?

  1. A) The goods received
  2. B) PO
  3. C) A/P Invoice
  4. D) A/R Invoice

Answer:  D

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

27) SAP provides two formats for employees to enter time. They are

  1. A) Weekly and monthly
  2. B) Daily and monthly
  3. C) Daily and weekly
  4. D) Hourly and daily

Answer:  C

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

28) In integrated enterprise systems the financial module is sometimes called the

  1. A) Banking module
  2. B) Finance module
  3. C) General ledger module
  4. D) Journal module

Answer:  C

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

29) SAP provides the ability to create reports using all of the following EXCEPT

  1. A) Query wizard
  2. B) Predefined reports
  3. C) MS Excel
  4. D) Manual calculations

Answer:  D

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

30) Why do you need to learn about SAP or SAP Business One?

Answer:  An introduction to SAP Business One provides a competitive advantage. It is simpler to learn than large-scale SAP and provides you with transitional skills to quickly transition to larger-scale applications.

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

31) What SAP products are available for small and mid-sized companies?

Answer:

– SAP Business All-in-One designed for midsize businesses wanting an integrated enterprise system

– SAP Business One designed for small and midsize businesses seeking an integrated solution that goes beyond accounting-only software

 

Both of these SAP products integrate accounting with other business processes. These SAP solutions for small and midsize companies use the same integrated enterprise approach that SAP for larger-scale enterprises uses.

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

32) Using the SAP purchasing module, explain how a workflow can be integrated into a system.

Answer:  A workflow can be integrated into a system by so that electronic purchase orders are automatically forwarded to appropriate parties for their approval. When the next person in the workflow approval process logs onto his or her computer, the pending purchase order awaiting his or her approval will appear in a queue. The person approves or disapproves the purchase order and then it is electronically forwarded to the next person in the approval process.

 

The integrated system increases efficiency by automatically forwarding the purchase order to the next person. After the final approval is received, the purchase order may be electronically forwarded to the appropriate vendor, again speeding up the process.

Diff: 3

Objective:  Q6.4 What do I need to know about SAP?

33) How do employees add their time worked to the database using SAP?

Answer:  Employees can use a daily or weekly format for entering their working time. After time is entered, the employee reviews and confirms the hours worked. The employee clicks the Synchronize button on the left side of the third screen and then enters his or her password to synchronize the time entered with the back-end enterprise database.

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

Objective 5

 

1) Cloud computing uses remote computing facilities owned by third parties to run software applications and store files.

Answer:  TRUE

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

2) The cloud is typically accessed over an intranet.

Answer:  FALSE

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

3) With IaaS, an enterprise rents programming languages, operating systems, networks, and storage needed for deploying or developing applications.

Answer:  FALSE

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

4) With SaaS, an enterprise rents the data storage, hardware, servers, and networks needed to support their operations.

Answer:  FALSE

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

5) When you enter data into a cloud-based system, the data is not stored in a database.

Answer:  FALSE

Diff: 1

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

6) Cloud server farms are frequently located ________.

Answer:  underground

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

7) The ________ cloud service level lets an enterprise out source IT equipment as needed to support operations, including data storage, hardware, servers, and networks.

Answer:  IaaS (Infrastructure-as-a-Service)

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

8) The ________ cloud service level lets an enterprise out source the platform (programing languages, operating systems, networks, servers, and storage) needed to deploy or develop applications (software).

Answer:  PaaS (Platform-as-a-Service)

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

9) The ________ cloud service level lets an enterprise out source software applications.

Answer:  SaaS (Software-as-a-Service)

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

10) Which cloud service level lets an enterprise rent data storage, hardware, servers, and networks while the provider houses, runs, and maintains them?

  1. A) PaaS (Platform-as-a-Service)
  2. B) SaaS (Software-as-a-Service)
  3. C) IaaS (Infrastructure-as-a-Service)
  4. D) CaaS (Cloud-as-a-Service)

Answer:  C

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

11) Which cloud service level lets an enterprise rent programming languages, operating systems, networks, servers, and storage needed to deploy or develop applications?

  1. A) PaaS (Platform-as-a-Service)
  2. B) SaaS (Software-as-a-Service)
  3. C) IaaS (Infrastructure-as-a-Service)
  4. D) CaaS (Cloud-as-a-Service)

Answer:  A

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

12) Which cloud service level lets an enterprise rent software applications?

  1. A) PaaS (Platform-as-a-Service)
  2. B) SaaS (Software-as-a-Service)
  3. C) IaaS (Infrastructure-as-a-Service)
  4. D) CaaS (Cloud-as-a-Service)

Answer:  B

Diff: 1

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

13) Which of the following is NOT a cloud service level?

  1. A) PaaS (Platform-as-a-Service)
  2. B) SaaS (Software-as-a-Service)
  3. C) IaaS (Infrastructure-as-a-Service)
  4. D) CaaS (Cloud-as-a-Service)

Answer:  D

Diff: 1

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

14) Loss of control over when new upgrades and technologies are applied to the cloud can be categorized as which type of challenge to cloud computing?

  1. A) Security
  2. B) Data
  3. C) Investment
  4. D) Mobility

Answer:  C

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

15) Define the IaaS (Infrastructure-as-a-Service) level of cloud computing.

Answer:  IaaS (Infrastructure-as-a-Service) -This cloud service model lets you out source the IT equipment

needed to support your operations, including data storage, hardware, servers, and networks.

An IaaS provider owns the equipment. You basically rent the computing resources, while the provider houses, runs, and maintains it. Infrastructure as a Service may also be referred to as

Hardware as a Service.

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

 

16) Define the PaaS (Platform-as-a-Service level of cloud computing.

Answer:  PaaS (Platform-as-a-Service) -With PaaS, the cloud provider provides the plat form (programming

languages, operating systems, networks, servers, and storage) needed for you to deploy or develop applications (software). For example, if you needed a specialized app for your accounting needs, you could rent the platform needed to develop the app without the expense of buying the networks, operating systems, and programming languages.

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

17) Define the SaaS (Software-as-a-Service) level of cloud computing.

Answer:  SaaS (Software-as-a-Service) -With SaaS, the cloud provider rents you use of the provider’s

software application, such as accounting software. Instead of running the software on you own

on-site computers, you typically use a Web browser or mobile app to access the cloud application. QuickBooks Online, Net Suite, and SAP ByDesign are examples of SaaS for accounting applications.

Diff: 2

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

18) What are the investment, security, accessibility, data, and mobility benefits of cloud computing?

Answer:  Investment – Avoiding the ongoing investments in upgrades and new technologies.

 

Security – No longer worrying about on-site security for computing needs that are

outsourced to the cloud, and a cloud provider may be able to specialize in the special security

needs for cloud computing.

 

Accessibility – The ability to access the cloud whenever you need to so long as you have an

Internet connection.

 

Data – Data is stored in the cloud and someone else is responsible for storing and backing it up.

 

Mobility – When you use cloud computing, you can be mobile, accessing the data from

mobile devices such as a laptop, tablet, or smartphone.

Diff: 3

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

 

19) What are the investment, security, accessibility, data, and mobility challenges of cloud computing?

Answer:  Investment – Loss of control over when upgrades and new technologies are implemented in the cloud.

 

Security – Loss of control over security and the reliance upon the cloud provider to provide intrusion detection systems, video surveillance, and more.

 

Accessibility – Ensuring that others cannot also access your information because it is stored in the cloud.

 

Data – If a cloud provider goes down, how do you access your data and backups?

 

Mobility – Ensuring that your security is not compromised as a result of being able to access data from mobile devices. When using a Web browser, there are additional security concerns, such as using HTTPS (Hypertext Transfer Protocol Secure) and using encryption so others cannot see data in transmission. Also, the mobile device may be outside a secure firewall, so this security challenge must be addressed as well.

Diff: 3

Objective:  Q6.5 How do I integrate my enterprise system with the Cloud?

 

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.

  1. Analyze accounting data to use in decision making.
  2. 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

 

1) IDM provides a framework to structure and organize the decision-making process.

Answer:  TRUE

Diff: 2

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

2) As the business environment becomes more complex and diverse, more factors must be considered when making decisions.

Answer:  TRUE

Diff: 1

Objective:  Q7.2 What is the integrative decision model (IDM)?

3) The process of integrating financial and non-financial factors into the decision process can lessen the quality of the decision.

Answer:  FALSE

Diff: 1

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

 

4) The ________ provides a framework to structure and organize the decision-making process.

Answer:  integrative decision model (IDM)

Diff: 2

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

5) With ________ analysis you are attempting to compare the financial costs and benefits of each option and determine the differences.

Answer:  quantitative

Diff: 2

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

6) The first step in IDM is

  1. A) Define the symptom of the issue
  2. B) Analyze the quantitative factors
  3. C) Evaluate performance
  4. D) Identify options

Answer:  A

Diff: 2

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

7) In the IDM basic steps framework, quantitative analysis may consist of

  1. A) Product quality, timeliness, the stress factor, streamlining, ease of use, overall satisfaction
  2. B) Creative solutions and brainstorming techniques
  3. C) Cost-benefit analysis, cost-volume-profit analysis, capital budgeting
  4. D) Make certain you have identified and are addressing the core issue rather than a symptom

Answer:  C

Diff: 2

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

8) The last step in IDM is

  1. A) Analyze the quantitative factors
  2. B) Make recommendations
  3. C) Implement the decision
  4. D) Evaluate performance

Answer:  D

Diff: 1

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

9) What is the integrative decision model?

Answer:  The integrative decision model (IDM) provides a framework to structure and organize the decision-making process. IDM integrates consideration of both quantitative factors, such as dollars of revenue and costs, and qualitative factors that cannot be quantified in dollars. Qualitative factors might include product quality or customer satisfaction. An IDM spreadsheet template includes both quantitative (financial) and qualitative (non-financial) analysis.

 

As the business environment becomes more complex and diverse, more and more factors must be considered when making decisions. For example, as environmental considerations, diversity, and corporate social responsibility are increasingly considered when evaluating a firm’s performance, enterprises may include these factors in the decision process. Some of these considerations cannot be quantified in dollars, however. Though difficult to place a dollar amount on the factor, there are times when the factor can be overriding, such as for product safety.

 

The IDM serves to integrate both qualitative and quantitative factors into the decision. This process of integrating financial and non-financial factors into the decision process can improve the quality of the decision.

Diff: 2

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

10) What is a quantitative factor? Provide an example.

Answer:  A quantitative factor is any factor that can be defined with a dollar amount. For example, revenue and cost.

Diff: 1

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

11) What is a qualitative factor?

Answer:  A qualitative factor is any factor that cannot be defined with a dollar amount. For example, product quality and corporate social responsibility.

Diff: 1

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

12) Create/draw the IDM template.

Answer:

Diff: 2

Objective:  Q7.2 What is the integrative decision model (IDM)?

13) The IDM consists of seven basic steps as a framework for the decision-making and evaluation process. List these steps in order.

Answer:

  1. Define the opportunity or issue.
  2. Identify options to address the opportunity or issue.
  3. Analyze quantitative (financial) factors.
  4. Analyze qualitative (non-financial) factors.
  5. Make recommendation and/or decision.
  6. Implement decision.
  7. Evaluate performance.

Diff: 2

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

 

14) List and explain the seven basic steps in the IDM framework.

Answer:

  1. Define the opportunity or issue. What is the core issue or opportunity? Make certain you have identified and are addressing the core issue rather than a symptom. For example, is the issue a sudden drop in sales? Or is the issue the decline in product quality that caused the sudden drop in sales?
  2. Identify your options. What are the options to address the issue? Use creative solutions and brainstorming techniques to identify options that turn challenges into opportunities. A combination of options should also be considered. For example, assume you identify two options: Option 1 is to increase the sales force; Option 2 is to increase advertising expenditures. A third option might be to combine Option 1 and Option 2 to increase the sales force and increase advertising expenditures but at a lower level than in the other options.
  3. Analyze quantitative (financial) factors. Collect financial information for each of the alternatives. As you collect information, other options may become apparent. Revisit step 2 if necessary and then proceed. Quantitative analysis may consist of cost-benefit analysis, cost-volume-profit analysis, capital budgeting, and more. Basically, you are attempting to compare the financial costs and benefits of each option and determine the differences.
  4. Analyze qualitative (non-financial) factors. Have you ever purchased a product that is not the lowest cost alternative? Why? Non-financial factors can often influence a decision. Step 4 is to gather non-financial information for each option to address qualitative factors, such as product quality, timeliness, the stress factor, streamlining, ease of use, overall satisfaction, and so on. Basically, you list qualitative factors for each option, categorizing the factors as advantages or disadvantages.
  5. Make recommendation and/or decision with supporting rationale. After considering the quantitative and qualitative analysis for each option, arrive at a recommendation and concisely state your supporting rationale. The recommendation should be clearly stated, but caveats based on changing circumstances are acceptable so long as the decision maker is given a clear course of action. As accountants, we are often asked to make recommendations to management, but management actually makes the final decision.
  6. Implement decision. Take action. Operationalize the decision using the appropriate people and resources.
  7. Evaluate performance. Obtain feedback about the performance resulting from the decision. Did you meet your estimated targets? If not, why not? Use this information to make appropriate adjustments such as modifying your future estimates or better controlling operations and implementation.

Diff: 3

Objective:  Q7.2 What is the integrative decision model (IDM)?

 

Objective 3

 

1) Business intelligence technologies are typically under the control of the enterprise’s IT professionals.

Answer:  TRUE

Diff: 1

Objective:  Q7.3 What makes an enterprise system intelligent?

 

2) Shadow data typically includes analytics, data mining, and predictive modeling.

Answer:  FALSE

Diff: 1

Objective:  Q7.3 What makes an enterprise system intelligent?

 

3) ________ is used when data is stored in spreadsheets and other tools that shadow the formal accounting system.

Answer:  Shadow data

Diff: 1

Objective:  Q7.3 What makes an enterprise system intelligent?

 

4) A digital dashboard, an interactive tool that allows a user to see the effect of changes in various scenarios, is an example of ________.

Answer:  data visualization

Diff: 1

Objective:  Q7.3 What makes an enterprise system intelligent?

 

5) Business ________ focuses on how to use information technology to solve business problems.

Answer:  informatics

Diff: 3

Objective:  Q7.3 What makes an enterprise system intelligent?

 

6) Control of business intelligence technologies is usually under the control of

  1. A) IT professionals
  2. B) Accounting professionals
  3. C) Security professionals
  4. D) Executive management

Answer:  A

Diff: 2

Objective:  Q7.3 What makes an enterprise system intelligent?

 

7) Control of shadow data is usually under the control of

  1. A) IT professionals
  2. B) Accounting professionals
  3. C) Security professionals
  4. D) Middle management

Answer:  B

Diff: 2

Objective:  Q7.3 What makes an enterprise system intelligent?

 

8) The main components of an intelligent system work together to

  1. A) Identify meaningful interrelationships
  2. B) Create shadow data
  3. C) Prevent unauthorized access to the data
  4. D) Store data

Answer:  A

Diff: 1

Objective:  Q7.3 What makes an enterprise system intelligent?

 

9) A digital dashboard is a(n)

  1. A) Tool used to extract data from a data database
  2. B) Interactive data visualization tool
  3. C) Transfers data to a data analysis tool
  4. D) Stores data

Answer:  B

Diff: 2

Objective:  Q7.3 What makes an enterprise system intelligent?

 

10) Business informatics focuses on how to

  1. A) Visualize data
  2. B) Store data
  3. C) Keep data secure
  4. D) Use information technology to solve business problems

Answer:  D

Diff: 2

Objective:  Q7.3 What makes an enterprise system intelligent?

 

11) What are two approaches to business intelligence commonly used by companies?

Answer:  Shadow data. Shadow data is used when data is stored in spreadsheets and other tools that shadow the formal accounting system. Shadow data is frequently under the control of the accounting professional.

Business intelligence (BI) technologies. BI technologies include analytics, data mining, and predictive modeling. They are typically under the control of the enterprise’s IT professionals.

Diff: 1

Objective:  Q7.3 What makes an enterprise system intelligent?

 

12) List and explain the four components of an intelligent enterprise system.

Answer:  DATA STORAGE – Data is stored using operational databases, data warehouses, and other data storage. Data from recurring transactions and operations is stored in an operational database. Data from the operational database and other sources may be loaded into a data warehouse. The data warehouse is a large database that serves as a central location for aggregating and storing an enterprise’s data. When an organization uses a data warehouse, data is often transferred from various sources throughout the organization, including the operational database, spreadsheets, and company ecommerce Web sites, into the data warehouse where the data is integrated.

 

DATA EXTRACTION AND TRANSFER – Data extraction and transfer tools are used to extract data stored in databases (operational databases and data warehouses) and transfer the data into data analysis tools. The operational database that is well suited for storing data is not well suited for data analysis. Thus, it is necessary to transfer the data from the operational database into an analysis tool. The exact steps for data extraction and transfer may differ based upon the intelligence tool used; however, the process is basically the same.

 

DATA ANALYSIS – Data analysis tools are used to analyze data to identify interrelationships and insights that can be used to create intelligence for better business decisions. The data analysis includes two approaches to BI: shadow data and BI technologies. Data analysis can be performed using statistical, mathematical, financial, and data mining functions.

 

DATA VISUALIZATION – Visualization tools include user interface applications that display results of the data analysis on the user’s computer. For example, shadow data might use a spreadsheet display. A BI technology might display results using OLAP (Online Analytical Processing) cubes that permit the user to view data from various multidimensional perspectives. Tools for visualizing the results in an understandable, user-friendly form can consist of charts, graphs, figures, tables, and cubes. These tools are sometimes combined to create digital dashboards. The digital dashboard is often interactive, permitting the viewer to see the effect of changes in various scenarios, parameters, and variables.

Diff: 2

Objective:  Q7.3 What makes an enterprise system intelligent?

 

Objective 4

 

1) Shadow data can exist in tools other than spreadsheets, such as user-developed databases.

Answer:  TRUE

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

2) Data storage for shadow data is kept in a centralized location in an organization.

Answer:  FALSE

Diff: 1

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

3) Software called ________ translates data analysis query commands into commands that are compatible with RDBMS commands.

Answer:  Open DataBase Connectivity (ODBC)

Diff: 1

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

4) Businesses are turning to complex mathematical formulas, called ________, to analyze data to make better decisions.

Answer:  algorithms

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

5) Quantitative data answers which question?

  1. A) What?
  2. B) How much?
  3. C) Where?
  4. D) Why?

Answer:  B

Diff: 1

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

6) Shadow data may be stored in

  1. A) MS Access
  2. B) Lotus Notes
  3. C) Emails
  4. D) All the above

Answer:  D

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

7) Shadow data is vulnerable to

  1. A) Data analysis
  2. B) Unauthorized access
  3. C) Data collection
  4. D) Manipulation

Answer:  B

Diff: 1

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

 

8) Open Database Connectivity

  1. A) Performs analysis on shadow data
  2. B) Performs analysis on data in a relational database
  3. C) Provides a visual image of the data
  4. D) Translates query commands into commands compatible to RDBMS commands

Answer:  D

Diff: 1

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

9) An analysis tool NOT designed for software spreadsheets is

  1. A) AutoFilter
  2. B) PivotTables
  3. C) Subtotal
  4. D) Neural networks

Answer:  D

Diff: 1

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

10) A shadow data dashboard in an Excel spreadsheet can be created using

  1. A) AutoFilter and PivotCharts
  2. B) Conditional Formatting and Subtotal
  3. C) PivotTables and PivotCharts
  4. D) PivotTables and Conditional Formatting

Answer:  C

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

11) Which of the following is considered a disadvantage of shadow data?

  1. A) Spreadsheets are outside the formal data systems under IT control.
  2. B) An accounting professional can develop the spreadsheet solution when needed.
  3. C) Spreadsheets have extensive analytic features.
  4. D) Spreadsheets offer reporting features that do not require custom programming.

Answer:  A

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

12) A spreadsheet identifier is

  1. A) The name of the spreadsheet file and is not unique
  2. B) An identification assigned to a spreadsheet that is unique throughout the enterprise
  3. C) A password that allows viewing and editing permissions to a spreadsheet
  4. D) A password that allows viewing permissions to a spreadsheet

Answer:  B

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

 

13) Why are shadow data spreadsheets created?

Answer:  A business has a need for data that the formal accounting system cannot satisfy, frequently with tight deadlines and time pressure. So spreadsheets come to the rescue. They are easy to create and fast to implement. The data in the spreadsheet shadows the formal accounting system, so it is called shadow data.

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

14) Why are spreadsheets popular for performing data analysis?

Answer:  Spreadsheets are convenient. The accounting professional can design and build his or her own spreadsheet to meet data analysis and reporting needs. Spreadsheet software, such as MS Excel, makes it relatively easy to extract data from a database. Once the data has been transferred to the spreadsheet, Excel tools can be used to analyze the data and print reports.

Diff: 1

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

15) What is the purpose of Open DataBase Connectivity (ODBC) software?

Answer:  Data analysis applications may not be compatible with the database’s RDBMS query commands, so ODBC translates the data analysis query commands into commands that are compatible with RDBMS commands. The ODBC is the pipeline or connection between the database that stores data and the spreadsheet that analyzes the data. After the ODBC is established, data is extracted, transferred, and loaded into a spreadsheet.

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

16) What are some of the data analysis tools available for software spreadsheets, such as MS Excel?

Answer:  The end-user accountant can perform relatively complex data analysis from a desktop computer using spreadsheet analysis tools. Spreadsheet software offers an array of analysis tools. MS Excel analysis tools include AutoFilter, Subtotal, Conditional Formatting, and PivotTables. PivotTables can also be used as a visualization tool to view the analysis results. MS Excel also offers additional analysis tools such as mathematical and statistical functions, Solver, and Analysis Toolkit Add-Ins. Macros can be used with Excel to automatically perform a sequence of analysis tasks, step by step. Macros can be saved with the spreadsheet and conveniently reused as needed.

Diff: 1

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

 

17) What are the advantages of shadow data?

Answer:  The spreadsheet is easy to learn and use. Extensive training is not required to create, use, or maintain spreadsheets. Also, spreadsheets have extensive analytic features, such as PivotTables, Solver, and Crystal Ball. Spreadsheets offer reporting features that do not require custom programming to produce a professional looking report. Spreadsheet software is readily available. The accounting professional can develop the spreadsheet solution when needed and does not have to wait on IT to produce the required analysis. To have value to the end user, intelligence must be timely (i.e., received in time to be used). Another advantage is that the accounting professional often better understands the requirements and needs for applications that have specific requirements unique to accounting. IT professionals may not have the requisite accounting knowledge to develop the product that meets all the needs of the accounting professional.

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

18) What are the disadvantages of shadow data?

Answer:  Since the shadow data is developed on an ad hoc basis, often it is not well documented. This can lead to issues in the future when the accountant who developed the spreadsheet application leaves the organization. The application may have to be redeveloped because no one else knows how to use the prior spreadsheet. Another consideration of shadow data is that there may not be adequate or regular backups for disaster recovery. Since shadow data is typically not developed by an IT professional, the shadow data may not undergo adequate testing to detect errors. This could result in material misstatements in accounting reports. Also, since shadow data is outside the formal data systems under IT control, there are concerns about data security and irregularities.

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

 

19) What are three ways of standardizing and securing shadow data spreadsheets within an organization?

Answer:  First of all, just as each record in a database table has a unique identifier called the primary key, each spreadsheet in an organization can be assigned a unique identifier called a spreadsheet identifier or SSID. For example, a spreadsheet might be assigned an identifier, such as SSID1001. The data within the numerous spreadsheets in an organization can then be referenced by the SSID and cell address.

 

Secondly, implementing a global identification system for shadow data stored in spreadsheets can facilitate standardization in design and development. For example, guidelines might specify that the column labels are located in the first row as opposed to being scattered throughout the spreadsheet. A data list is easily analyzed with PivotTables and other data analysis tools. If the design is more standardized across spreadsheets, global spreadsheet analysis is possible using queries that extract and integrate data from several spreadsheets.

 

Finally, an enterprise using global spreadsheet identification may require that all spreadsheets be stored on an enterprise server instead of desktops and laptops throughout an organization. This permits IT professionals to further standardize and organize the spreadsheets while at the same time heightening security and control.

Diff: 2

Objective:  Q7.4 Can shadow data create business intelligence (BI)?

 

Objective 5

 

1) Business Intelligence Technologies are a type of advanced data analytics used to support business decision making.

Answer:  TRUE

Diff: 1

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

2) Large data warehouses usually store data using a dimensional database structure.

Answer:  TRUE

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

3) The dimension tables in a star database are dimensions of the database, such as time dimension, product information, sales territory, and currency.

Answer:  TRUE

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

4) In a dimensional database with a star structure, a query traverses only three tables.

Answer:  FALSE

Diff: 3

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

 

5) Foreign keys in a dimensional table are primary keys in a fact table.

Answer:  TRUE

Diff: 1

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

6) A data warehouse may contain data duplication and inconsistencies.

Answer:  TRUE

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

7) A dimensional database has one ________ table and two or more dimension (Dim) tables.

Answer:  Fact

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

8) The primary keys of the dimension tables are foreign keys in the ________ at the center of the star.

Answer:  Fact table

Diff: 3

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

9) ________ tools convert data into the dimensional structure required for a data warehouse.

Answer:  ETL (Extract/Transfer/Load)

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

10) ________ techniques rely on pattern recognition, clustering, and neural networks.

Answer:  Data mining

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

11) ________ searches the internet for specific patterns on web sites.

Answer:  Web mining

Diff: 1

Objective:  Q7.5 How are BI technologies used to create business intelligence?

12) A ________ graphically represents BI, allowing the user to manipulate data and view the resulting changes.

Answer:  digital dashboard

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

13) No matter how complex the BI technologies, the role of the accounting professional typically involves only the ________ tool.

Answer:  visualization

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

14) Business intelligence technologies are

  1. A) Just another form of unsecured shadow data
  2. B) Are usually controlled by accounting professionals
  3. C) A type of advanced data analytics used to support business decision making
  4. D) Consist of database queries that take a long time to run

Answer:  C

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

15) A data warehouse can be thought of as

  1. A) A location to store shadow data
  2. B) A staging area for data analysis
  3. C) A cluster of operational databases
  4. D) Unused data archived for historical purposes

Answer:  B

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

16) In a dimension table, the primary keys are

  1. A) Optional
  2. B) Foreign keys in the fact table
  3. C) Required to add the word Dim to the field name
  4. D) Foreign keys in the dimension tables

Answer:  B

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

17) In a dimensional database with a star structure

  1. A) The dimension database tables are all related only to the central fact table
  2. B) There is one inner circle of dimension tables and additional dimension tables are related to the inner dimension tables
  3. C) Queries traverse at least three tables
  4. D) A and C

Answer:  A

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

18) A dimensional database structure

  1. A) Is almost identical to the relational database structure
  2. B) Is overly complex and seldom used
  3. C) Allows for faster retrieval of massive amounts of data
  4. D) Only contains data from operational databases

Answer:  C

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

19) What is a dimensional database? When/where is this type of database usually used?

Answer:  A dimensional database has one fact table and two or more dimension (Dim) tables. The dimension tables in a star database are dimensions of the database, such as time dimension, product information, sales territory, currency, and so on. The dimension tables provide multidimensional views of data.

 

Dimensional databases are usually used in data warehouses.

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

20) What is the difference between the star and snowflake structures of dimensional databases?

Answer:  Star and snowflake are two types of dimensional database structures. Both have one fact table at the center. In a star structure, the dimension database tables are all related only to the central fact table, creating a star shape. A query traverses only two tables.

 

In a snowflake structure the dimension tables relate to the fact table like a snowflake. There is one inner circle of dimension tables and additional dimension tables are related to the inner dimension tables. At most, a query traverses only three tables.

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

21) Why can data in a dimensional database with a star or snowflake structure be retrieved more quickly than from a relational database?

Answer:  Because of the database structure. In a relational database, a query may be required to traverse many tables. The more tables required to locate the data, the more time required to run the query. In a star structured database, a query will traverse only two database tables. In a snowflake structure, a query will traverse, at the most, three database tables.

Diff: 3

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

22) What the difference between a relational database and a dimensional database?

Answer:  A dimensional database has one fact table at its center. A relational database does not have one

central database table. Instead, a relational database resembles an interlocking chain, linked together without a center.

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

23) What are the intelligent components used in BI technologies?

Answer:  Data storage

Data extraction

Data analysis

Data visualization

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

 

24) What is web mining? Provide an example.

Answer:  Web mining is similar to the searches you conduct when you use the Google search engine. Web mining searches the Internet for specific patterns on Web sites. For example, social networking sites can be mined for patterns and trends to predict customer preferences.

Diff: 2

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

25) What are the advantages of business intelligence technologies?

Answer:  Two of the main advantages include faster processing of massive amounts of data and discovery of new knowledge through data mining and predictive modeling. BI technologies have the capability to integrate data from the operational database as well as multiple other sources of data including the Internet. Furthermore, BI technologies offer security and control advantages over shadow data. BI technologies reside under the control of the IT department providing the opportunity for standardization of controls to secure the system.

Diff: 1

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

26) What are the disadvantages of business intelligence technologies?

Answer:  One of the disadvantages of the BI system is a longer development time due to the use of BI developers. Another disadvantage is that some BI systems are not real-time, experiencing a time lag caused by batch updates run only periodically. This can result in outdated intelligence. Since the investment required for BI technologies can be significant and the benefits difficult to quantify, an enterprise may find a BI system cost prohibitive.

Diff: 1

Objective:  Q7.5 How are BI technologies used to create business intelligence?

 

Objective 6

 

1) How data is extracted and transferred depends on the database structure.

Answer:  TRUE

Diff: 2

Objective:  Q7.6 How do Shadow Data and BI Technologies compare?

 

2) The electronic tags used by XBRL permit the user to slice and dice data for multidimensional data analysis.

Answer:  TRUE

Diff: 2

Objective:  Q7.6 How do Shadow Data and BI Technologies compare?

3) Electronic tags used by ________ permit data analysis of multidimensional data.

Answer:  XBRL

Diff: 2

Objective:  Q7.6 How do Shadow Data and BI Technologies compare?

 

 

4) Which language is usually used to query a relational database?

  1. A) SQL
  2. B) XBRL
  3. C) HTML
  4. D) SHTML

Answer:  A

Diff: 1

Objective:  Q7.6 How do Shadow Data and BI Technologies compare?

 

5) Which type of database architecture is more suited for business intelligent technologies?

  1. A) Dimensional database architecture
  2. B) Relational database architecture
  3. C) Network database architecture
  4. D) Hierarchical database architecture

Answer:  A

Diff: 2

Objective:  Q7.6 How do Shadow Data and BI Technologies compare?

 

6) Shadow data

  1. A) Is supported by the IT department
  2. B) Takes three to six months to implement
  3. C) Usually is not SOX compliant
  4. D) Provides interactive reporting

Answer:  C

Diff: 2

Objective:  Q7.6 How do Shadow Data and BI Technologies compare?

 

7) Business intelligence technology

  1. A) Typically has one user
  2. B) Integrates data from operational database and data warehouse
  3. C) Usually is not documented
  4. D) Is quick to implement

Answer:  B

Diff: 2

Objective:  Q7.6 How do Shadow Data and BI Technologies compare?

 

8) Compare business intelligence technologies to shadow data.

Answer:  Business Intelligence Technologies

– Interactive reporting

– Integrated data from operational database and data warehouse

– Three to six months to implement

– Large number of users

– Data and application located on secure servers

– Possibly Sarbanes-Oxley (SOX) compliant

– Fully documented and supported by IT department

 

Shadow Data

– Possibly interactive reporting

– Data from various internal and external sources

– Quick to implement

– Typically a single user

– Data and application may not be located on secure servers

– Typically not SOX compliant

– Typically not documented and supported by IT department

Diff: 2

Objective:  Q7.6 How do Shadow Data and BI Technologies compare?

 

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