Deferral entry revaluation entry

B) deferral entry.

C) revaluation entry.

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D) correcting entry.

26. Each event in an REA model will in most cases have at least one ________ agent and one ________ agent involved with the event.

A) internal; resource

B) external; entity

C) internal; employee

D) internal; external

27. The REA data model

A) is used in many areas of business and science.

B) was developed solely for use in designing accounting information systems.

C) classifies data into relationships, entities and accounts.

D) all of the above

28. Which of the following transactions is represented by the diagram below?

A) An automobile salvage business holds weekly auctions at which it sells its entire inventory.

B) A grocery store sells products to consumers.

C) A hobbyist restores antique cars. When a car is finished, she sells it on eBay.

D) A firm sells movies to consumers through an online downloading service.

29. An entity-relationship (E-R) diagram

A) can represent the contents of any database.

B) are only used in conjunction with REA models.

C) can show a limited number of entities and relationships.

D) are used only to design new databases.

30. Relationships that affect the quantity of a resource are sometimes referred to as ________ relationships.

A) commitment

B) exchange

C) stockflow

D) duality

31. Refer to the table below, which shows the results of payback, net present value, and internal rate of return analysis of four projects. Which is preferred by the net present value criterion?

A) Project A

B) Project B

C) Project C

D) Project D

32. When using the payback method to determine economic feasibility of projects, the company usually accepts the project with the

A) longest payback period.

B) mid-range payback period.

C) payback period that is equal to the project’s economic life.

D) shortest payback period.

33. Who is responsible for preparing the specifications that are used to create the programs?

A) management

B) programmers

C) systems analysts

D) the information systems steering committee

34. Refer to the table below, which shows the results of payback, net present value, and internal rate of return analysis of four projects. Which is preferred by the payback criterion?

A) Project A

B) Project B

C) Project C

D) Project D

35. The capital budgeting technique where estimated future cash flows are discounted back to the present is referred to as

A) the future value method.

B) the internal rate of return.

C) the net present value method.

D) the payback method.

36. When canned software is used for systems acquisition, the maintenance aspect of the operations and maintenance phase of the SDLC

is usually the responsibility of the vendor.

37. Benathir Donathat, director of the project committee, has received approval from management for implementation of a new accounting information system. After putting out an RFP, the committee settled on a vendor that will provide an industry standard software package and post-sale technical support. The committee decided to go with

A) canned software.

B) a turnkey system.

C) an outsourced system.

D) an end-user developed system.

38. The ________ method calculates and compares the processing times of different AIS to compare system performance.

A) benchmark problem

B) mandatory requirements

C) point scoring

D) requirements costing

39. End-user computing is likely to result in a(n)

A) well tested system.

B) well documented system.

C) rapidly developed system.

D) efficient system.

40. What would be one duty of second-line help desk personnel?

A) handling complicated queries requiring research

B) provide callers with scripted answers

C) using expert systems to quickly find answers

D) None of the duties listed above pertain to second-line help desk personnel.

41. One process used to uncover and eliminate program errors is known as

A) black box testing.

B) debugging.

C) desk checking.

D) white box testing.

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