Information Systems Management (C724)
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Free Information Systems Management (C724) Questions
What is a primary key in a database
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A field that contains duplicate data
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A field that uniquely identifies a record
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A field that is optional in a database
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A field that is used for sorting records
Explanation
Correct Answer B. A field that uniquely identifies a record
Explanation
A primary key is a field in a database table that uniquely identifies each record. It ensures that no two records have the same value in this field, maintaining data integrity and preventing duplication. A primary key also helps in establishing relationships between tables in a relational database.
Why other options are wrong
A. A field that contains duplicate data – A primary key must always have unique values for each record. If a field contains duplicate data, it cannot serve as a primary key because it would fail to uniquely identify individual records.
C. A field that is optional in a database – A primary key is mandatory for each record and cannot be left empty (NULL). It ensures that every record in a table has a distinct identity, which would not be possible if it were optional.
D. A field that is used for sorting records – While a primary key may be used to organize or index data, its main purpose is not sorting but uniquely identifying records. Sorting can be done using any field, whereas the primary key must always ensure uniqueness.
What is the significance of the CIA Triad in database management
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Data visualization
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Ensuring data security and management
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Data analysis and reporting
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Data retrieval
Explanation
Correct Answer B. Ensuring data security and management
Explanation
The CIA Triad stands for Confidentiality, Integrity, and Availability, which are the three fundamental principles of data security. In database management, the CIA Triad ensures that sensitive data is protected from unauthorized access (Confidentiality), remains accurate and unaltered (Integrity), and is accessible when needed (Availability). These principles help safeguard databases from threats such as data breaches, corruption, and loss.
Why other options are wrong
A. Data visualization – The CIA Triad is focused on security, not data visualization. Visualization is typically handled by business intelligence and reporting tools.
C. Data analysis and reporting – While secure databases support data analysis, the CIA Triad itself is not about analysis or reporting but about protecting the data from unauthorized access, corruption, and downtime.
D. Data retrieval – The CIA Triad ensures secure access, but its primary focus is on overall data security, including preventing unauthorized retrieval or modification of data.
What roles do people play in information systems
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People run and operate components of an information system
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People use the output from an information system
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People build and maintain components of an information system
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All of the above
Explanation
Correct Answer D. All of the above
Explanation:
People play multiple critical roles in information systems. They run and operate the systems, use the output for decision-making, and build and maintain the systems to ensure they function effectively. Without human involvement, information systems cannot achieve their full potential.
Why Other Options Are Wrong:
A. People run and operate components of an information system
This option is incomplete because while people do run and operate information systems, they also perform other roles, such as using the output and maintaining the systems.
B. People use the output from an information system
This option is incomplete because people do more than just use the output; they also operate and maintain the systems.
C. People build and maintain components of an information system
This option is incomplete because people not only build and maintain information systems but also operate them and use their output.
What is the main function of Software in an Information System
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Store and manage data
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Interact with other components to get tasks done
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Provide physical IT devices
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Control the hardware components
Explanation
Correct Answer B. Interact with other components to get tasks done
Explanation
Software acts as an intermediary between users and hardware, enabling the execution of tasks, data processing, and application management. It includes operating systems, applications, and system utilities that work together to support business functions.
Why other options are wrong
A. Store and manage data – While databases store and manage data, software itself facilitates this process rather than performing it directly.
C. Provide physical IT devices – Hardware, not software, consists of physical IT devices.
D. Control the hardware components – Software interacts with hardware, but direct control is primarily handled by the operating system and firmware.
All of the following are facts about accounting information systems except
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They can involve three types of storage files
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They always incorporate information technology
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They should all involve some form of internal control
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They usually provide general-purpose financial statements as outputs
Explanation
Correct Answer B. They always incorporate information technology
Explanation
While modern accounting information systems (AIS) frequently use information technology (IT), not all AIS rely on it. Some businesses, especially small ones, may still use manual accounting systems without advanced IT integration. Therefore, the idea that AIS "always" incorporates IT is incorrect.
Why other options are wrong
A. They can involve three types of storage files – AIS typically include reference files, transaction files, and master files to store financial data.
C. They should all involve some form of internal control – Internal controls are essential in AIS to prevent fraud, ensure accuracy, and maintain compliance with regulations.
D. They usually provide general-purpose financial statements as outputs – One of the primary functions of an AIS is to generate financial statements that inform business decisions and meet regulatory requirements.
What impact does unreliable information have on decision-making within an organization
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It enhances the decision-making process by providing diverse perspectives.
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It can lead to misguided decisions and negatively affect organizational performance.
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It ensures that decisions are made based on accurate and timely data.
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implifies the decision-making process by reducing the amount of data to consider.It s
Explanation
Correct Answer B. It can lead to misguided decisions and negatively affect organizational performance.
Unreliable information can result in poor decision-making because decisions are based on inaccurate or incomplete data. This can lead to ineffective strategies, wasted resources, and ultimately harm the organization's performance and reputation.
Why Other Options Are Wrong:
A. It enhances the decision-making process by providing diverse perspectives.
This option is incorrect because unreliable information does not enhance decision-making. Instead, it introduces errors and biases that can distort the decision-making process.
C. It ensures that decisions are made based on accurate and timely data.
This option is incorrect because unreliable information does not ensure accurate and timely data. On the contrary, it undermines the quality of data used for decision-making.
D. implifies the decision-making process by reducing the amount of data to consider.It s
This option is incorrect because unreliable information does not simplify decision-making. It complicates the process by introducing uncertainty and requiring additional verification efforts.
What is the primary catalyst for the initiation of information flow within an accounting information system
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A financial report
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A transaction
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An audit
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A budget proposal
Explanation
Correct Answer B. A transaction
Explanation
A transaction serves as the starting point for information flow in an accounting information system (AIS). Transactions, such as sales, purchases, and payroll expenses, trigger data entry, processing, and reporting within the AIS.
Why other options are wrong
A. A financial report. – Financial reports are outputs of an AIS, not the initial trigger for data flow.
C. An audit. – Audits evaluate the accuracy of financial data but do not initiate the flow of information in an AIS.
D. A budget proposal. – A budget proposal is a planning tool rather than a trigger for financial transactions in an AIS.
The purpose of cost accounting is to trace costs to the product so that we can
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Price our products competitively
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Make informed decisions regarding our product mix
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Assist in the budgetary process as part of controlling costs
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All of these are correct
Explanation
Correct Answer D. All of these are correct
Explanation:
Cost accounting serves multiple purposes, including pricing products competitively, making informed decisions about the product mix, and assisting in the budgetary process to control costs. By tracing costs to products, organizations can optimize pricing, improve profitability, and manage resources effectively.
Why Other Options Are Wrong:
A. Price our products competitively
This option is incomplete because cost accounting supports not only pricing but also decision-making and budgeting.
B. Make informed decisions regarding our product mix
This option is incomplete because cost accounting supports not only product mix decisions but also pricing and budgeting.
C. Assist in the budgetary process as part of controlling costs
This option is incomplete because cost accounting supports not only budgeting but also pricing and product mix decisions.
What is the primary purpose of effective cash management within an accounting information system
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To maximize investment returns
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To ensure sufficient liquidity for obligations
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To minimize operational costs
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To enhance marketing strategies
Explanation
Correct Answer B. To ensure sufficient liquidity for obligations
Explanation
Effective cash management ensures that an organization has enough cash to meet its short-term liabilities, such as payroll and supplier payments. It helps prevent financial difficulties and supports smooth business operations.
Why other options are wrong
A. To maximize investment returns. – While investments are important, the primary focus of cash management is maintaining liquidity, not maximizing returns.
C. To minimize operational costs. – Cost reduction is a factor but not the main objective of cash management, which primarily focuses on liquidity.
D. To enhance marketing strategies. – Cash management is related to financial control, not directly to marketing efforts.
What is the main objective of predictive analytics in database management
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To analyze historical data only
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To store data for future use
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To create data visualizations
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To predict future trends based on data patterns
Explanation
Correct Answer D. To predict future trends based on data patterns
Explanation:
The main objective of predictive analytics is to use historical data and statistical algorithms to identify patterns and predict future trends or outcomes. This helps organizations make informed decisions and plan for future scenarios based on data-driven insights.
Why Other Options Are Wrong:
A. To analyze historical data only
This option is incorrect because predictive analytics goes beyond analyzing historical data. While historical data is used as a foundation, the primary goal is to forecast future trends, not just examine the past.
B. To store data for future use
This option is incorrect because storing data for future use is a function of database storage, not predictive analytics. Predictive analytics focuses on analyzing and interpreting data, not just storing it.
C. To create data visualizations
This option is incorrect because creating data visualizations is a tool for presenting data, not the main objective of predictive analytics. Visualizations may be used to communicate predictions, but they are not the primary goal.
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