Impact of Information Technology on Accounting

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Questions and Answers

What is the major objective of financial accounting information systems?

  • To provide relevant information to individuals and groups within an organization (correct)
  • To ensure the organization's business risks are not comprehensive
  • To focus solely on nonfinancial data for decision-making
  • To measure business performance only through traditional financial statements

Which aspect of accounting is overlooked if an AIS ignores nonmonetary information?

  • Risk assessment
  • Business performance measurement (correct)
  • Taxation
  • Auditing

What is the key role of information systems reliability in accounting?

  • To ensure all financial transactions are in monetary units
  • To provide assurance that business risks are manageable
  • To design reliable information systems for decision making (correct)
  • To focus on traditional performance measures in financial statements

Which area of accounting focuses on providing assurance that an organization's set of business risks is comprehensive and manageable?

<p>Risk assessment (C)</p> Signup and view all the answers

How does the use of AIS impact nonfinancial data in accounting?

<p>It overlooks nonmonetary information essential to users (C)</p> Signup and view all the answers

What is a potential drawback if a financial accounting system focuses only on monetary data?

<p>Incomplete information for decision-making (A)</p> Signup and view all the answers

What is the main purpose of Electronic Commerce?

<p>Ensuring the security and trustworthiness of online businesses (B)</p> Signup and view all the answers

In computer-based systems, where is data entered and stored?

<p>Files and databases (C)</p> Signup and view all the answers

What is the primary purpose of bid rigging?

<p>To make the bidding process appear competitive (C)</p> Signup and view all the answers

What is the purpose of capturing transaction data as part of the data input process?

<p>Triggered by a business activity (C)</p> Signup and view all the answers

What is the significance of source documents in data processing?

<p>Capturing data at its origin (D)</p> Signup and view all the answers

What is the main purpose of a cookie?

<p>To store information about a user's activity on a website (D)</p> Signup and view all the answers

What is the primary function of the data processing cycle?

<p>Generating relevant information (B)</p> Signup and view all the answers

Which of the following is NOT a key element of fraud?

<p>Injury or loss suffered by the victim (A)</p> Signup and view all the answers

What is the primary purpose of a Ponzi scheme?

<p>To make false statements about an investment opportunity (C)</p> Signup and view all the answers

Which step in the data input process ensures accuracy and completeness?

<p>Capturing information from source documents (A)</p> Signup and view all the answers

Which of the following is an example of securities fraud?

<p>Making false statements about an investment (B)</p> Signup and view all the answers

What is the primary purpose of sabotage?

<p>To intentionally destroy a system or its components (D)</p> Signup and view all the answers

What is the term used to describe the theft of company assets by employees, which can include both physical and digital assets?

<p>Misappropriation of Assets (A)</p> Signup and view all the answers

Which of the following best defines 'Fraudulent financial reporting' according to the text?

<p>Intentional or reckless conduct resulting in misleading financial statements (D)</p> Signup and view all the answers

What technique involves using psychological tricks to gain access to a building, computer server, or network?

<p>Social Engineering (A)</p> Signup and view all the answers

Which type of fraud involves using technology and can include unauthorized access, modification, copying, or destruction of data?

<p>Computer Fraud (B)</p> Signup and view all the answers

In the context of computer fraud, what does 'cooking the books' refer to?

<p>Falsifying financial records (D)</p> Signup and view all the answers

What is the classification given to any software that is used to cause harm in the context of computer fraud?

<p>Malware (D)</p> Signup and view all the answers

Which type of malware secretly monitors and collects information about users without their permission?

<p>Spyware (C)</p> Signup and view all the answers

Which type of malware causes banner ads to pop up on a monitor and collects information about the user's web-surfing and spending habits?

<p>Adware (B)</p> Signup and view all the answers

Which type of malware records user activities such as keystrokes, emails, websites visited, and chat sessions?

<p>Keylogger (D)</p> Signup and view all the answers

What is the term for the unauthorized or malicious computer instructions within an authorized and properly functioning program?

<p>Trojan Horse (A)</p> Signup and view all the answers

Which type of malware is a self-replicating, executable code that attaches itself to a file or program requiring human action to replicate?

<p>Virus (B)</p> Signup and view all the answers

What is the term for a malware program that copies itself automatically and actively transmits itself to other systems?

<p>Worm (D)</p> Signup and view all the answers

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