Chapter 1: Accounting Information Systems and Firm Value Multiple Choice Questions 1. (LO 1-1) Accounting information systems a. are always computerized. b. report only financially related information. c. are information systems that record, process, and report on transactions to provide financial and nonfinancial information for decision making and control. d. require a CITP designation to understand. Answer: C 2. (LO 1-1) Which of the following is a characteristic of relevance? a. Materiality b. Timeliness c. Verifiable d. Cost to generate Answer: A 3. (LO 1-2) Which of the following is considered to be mandatory information required by a regulatory body? a. 10-Q submission to the Securities and Exchange Commission b. The cost to produce a Samsung Galaxy c. The number of organic bananas that are sold at Whole Foods on July 28 d. The cost to build an all-new Starbucks restaurant in Shenzhen, China Answer: A 4. (LO 1-4) The correct order of events in the value chain is a. Inbound logistics ➛ Operations ➛ Service. b. Inbound logistics ➛ Outbound logistics ➛ Marketing and sales. c. Inbound logistics ➛ Operations ➛ Outbound logistics. d. Inbound logistics ➛ Operations ➛ Marketing and Sales. Answer: C 5. (LO 1-8) Which system contributes information on direct labor to a cost accounting system? a. Supply chain management system (SCMS)