L e a r n I n g o b j e c t I v e s

CHAPTER 1
ACCOUNTING INFORMATION SYSTEMS AN OVERVIEW
c. service activity Incorrect. The value chain includes only primary and support activities. A service activity is a type of primary activity.]
d. structured activity Incorrect. The value chain includes only primary and support activities. A structured activity is neither a primary nor a secondary activity.]
7. In which cycle does a company ship goods to customers?
a. production cycle Incorrect. The production cycle involves the transformation of raw materials into finished goods.]
b. financing cycle Incorrect. The financing cycle deals with interactions between an organization and its lenders and owners
c.
revenue cycle Correct. The revenue cycle involves interactions between an organization and its customers, such as shipping them goods.]
d. expenditure cycle Incorrect. The expenditure cycle involves interactions between an organization and its suppliers.]
8. Which of the following is a function of an AIS?
a. reducing the need to identify a strategy and strategic position Incorrect. An AIS does not reduce the need to identify a strategy. It provides information to executives for the purpose of making strategic decisions
b.
transforming data into useful information Correct. This is one of the primary functions of an AIS.]
c. allocating organizational resources Incorrect. Decision makers allocate resources, and the purpose of the AIS is to provide information to the decision makers so that they can make the allocation.]
d. automating all decision making Incorrect. The AIS provides information to decision makers it is not designed to automate all decision making.]