Ch.7 Emerging And Disruptive Technologies Test Bank Answers - Digital Test Bank | Accounting Info Systems 1e by Arline A. Savage. DOCX document preview.
Accounting Information Systems, 1e (Savage)
Chapter 7 Emerging and Disruptive Technologies
1) According to the Rogers' Adoption Curve, ________% of businesses are Innovators.
A) 2.5
B) 13.5
C) 34
D) 16
Diff: 1
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Introduction
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
2) According to the Rogers' Adoption Curve, ________% of businesses are Early Adopters.
A) 2.5
B) 13.5
C) 34
D) 16
Diff: 1
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Introduction
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
3) According to the Rogers' Adoption Curve, ________% of businesses are Early Majority.
A) 2.5
B) 13.5
C) 34
D) 16
Diff: 1
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Introduction
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
4) According to the Rogers' Adoption Curve, ________% of businesses are Laggards.
A) 2.5
B) 13.5
C) 34
D) 16
Diff: 1
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Introduction
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
5) Choose from the following answers the best description of Innovators in the Rogers' Adoption Curve.
A) Join immediately
B) Join as soon as they see any benefit
C) Join when there is widespread business benefit
D) Join only when they must
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Introduction
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
6) Choose from the following answers the best description of Early Adopters in the Rogers' Adoption Curve.
A) Join immediately
B) Join as soon as they see any benefit
C) Join when there is widespread business benefit
D) Join only when they must
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Introduction
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
7) Choose from the following answers the best description of Early Majority in the Rogers' Adoption Curve.
A) Join immediately
B) Join as soon as they see any benefit
C) Join when there is widespread business benefit
D) Join only when they must
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Introduction
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
8) Choose from the following answers the best description of Laggards in the Rogers' Adoption Curve.
A) Join immediately
B) Join as soon as they see any benefit
C) Join when there is widespread business benefit
D) Join only when they must
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Introduction
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
9) As companies adopt technologies, the technologies move through phases. Choose from the answers below, to identify the correct order of the phases.
A) Emerging, disruptive, widely used, adopted
B) Adopted, widely used, disruptive, emerging
C) Disruptive, emerging, widely used adopted
D) Emerging, disruptive, adopted, widely used
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Differentiating Emerging and Disruptive Technology
AACSB: Technology
Bloom's: Application
AICPA: AC: Risk Assessment, Analysis, and Management
10) While emerging and disruptive technologies can increase efficiencies and make tasks easier, they also bring unpredictable risk to the business. The earlier the stage of adoption, the higher the risk, because unknown variables and a lack of history mean that companies cannot rely on past experiences to perform risk assessments. Choose from the list below, all the risks related to emerging and disruptive technologies.
A) Business interruptions
B) Security vulnerabilities
C) Regulatory risk
D) Financial gain
E) Business continuity
F) Business growth
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Risk and Risk Mitigation
AACSB: Technology
Bloom's: Application
AICPA: AC: Risk Assessment, Analysis, and Management
11) Choose, from the following list, a team that is well equipped to help a business manage the risks of emerging and disruptive technologies.
A) Sales
B) Financial Reporting
C) Accounts Payable
D) Internal Audit
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Risk and Risk Mitigation
AACSB: Technology
Bloom's: Application
AICPA: AC: Risk Assessment, Analysis, and Management
12) Choose, from the following list, a team that is well equipped to help a business manage the risks of emerging and disruptive technologies.
A) Emerging Technology Center of Excellence
B) Financial Reporting
C) Accounts Payable
D) Accounts Receivable
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Risk and Risk Mitigation
AACSB: Technology
Bloom's: Application
AICPA: AC: Risk Assessment, Analysis, and Management
13) Choose, from the following list, a team that is well equipped to help a business manage the risks of emerging and disruptive technologies.
A) Sales
B) Enterprise Risk Management
C) Accounts Payable
D) Accounts Receivable
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Risk and Risk Mitigation
AACSB: Technology
Bloom's: Application
AICPA: AC: Risk Assessment, Analysis, and Management
14) If the internal audit team is involved with a review before the new technology is adopted, we call it a
A) before-implementation review.
B) mid-implementation review.
C) pre-implementation review.
D) post-implementation review.
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Risk and Risk Mitigation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
15) If the internal audit team is involved with a review after the new technology is adopted, we call it a
A) before-implementation review.
B) mid-implementation review.
C) pre-implementation review.
D) post-implementation review.
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Risk and Risk Mitigation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
16) Choose the best definition of a Center of Excellence (COE) from the answers below.
A) A specialized team in a company dedicated to providing unique support, usually technological, to the entire business
B) A specialized team in a company dedicated to providing general support, usually technological, to a particular department
C) A general team in a company dedicated to providing unique support, usually technological, to a particular department
D) A general team in a company dedicated to providing general support, usually technological, to the entire business.
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Risk and Risk Mitigation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
17) Over time, companies adopt new technologies. Reviewing the illustration below, what stage of technology adoption is point X?
A) Generally Accepted
B) Widely Used
C) Disruptive
D) Emerging
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Differentiating Emerging and Disruptive Technology
AACSB: Technology
Bloom's: Application
AICPA: AC: Risk Assessment, Analysis, and Management
18) Over time, companies adopt new technologies. Reviewing the illustration below, what stage of technology adoption is point Y?
A) Generally Accepted
B) Widely Used
C) Disruptive
D) Emerging
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Differentiating Emerging and Disruptive Technology
AACSB: Technology
Bloom's: Application
AICPA: AC: Risk Assessment, Analysis, and Management
19) Over time, companies adopt new technologies. Reviewing the illustration below, what stage of technology adoption is point Z?
A) Generally Accepted
B) Widely Used
C) Disruptive
D) Emerging
Diff: 2
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Differentiating Emerging and Disruptive Technology
AACSB: Technology
Bloom's: Application
AICPA: AC: Risk Assessment, Analysis, and Management
20) What does the acronym IoT stand for?
A) Internet of Things
B) Internet of Technology
C) Interest of Technology
D) Interest of Things
Diff: 1
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
21) Choose from the list below the best definition of Internet of Things (IoT).
A) Internet of Things is the collection of electronic devices to the internet through sensors, software, and other technologies.
B) Internet of Things takes three forms, which progress from completely real to completely virtual
C) Internet of Things is the merger of video game principles and real-world simulations where the user can achieve badges and earn points while they learn new skills.
D) Internet of Things are physical devices controlled by computers using complex algorithms.
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
22) Choose from the list below the best definition of Extended Reality (XR).
A) Extended Reality is the connection of electronic devices to the internet through sensors, software, and other technologies.
B) Extended Reality takes three forms, which progress from completely real to completely virtual.
C) Extended Reality is the merger of video game principles and real-world simulations where the user can achieve badges and earn points while they learn new skills.
D) Extended Reality are physical devices controlled by computers using complex algorithms.
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Extended Reality (XR)
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
23) Choose from the list below the best definition of Gamification.
A) Gamification is the connection of electronic devices to the internet through sensors, software, and other technologies.
B) Gamification takes three forms, which progress from completely real to completely virtual.
C) Gamification is the merger of video game principles and real-world simulations where the user can achieve badges and earn points while they learn new skills.
D) Gamification are physical devices controlled by computers using complex algorithms.
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Gamification
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
24) Choose from the list below the best definition of Autonomous Things (AuT).
A) Autonomous Things are the connection of electronic devices to the internet through sensors, software, and other technologies.
B) Autonomous Things takes three forms, which progress from completely real to completely virtual.
C) Autonomous Things are the merger of video game principles and real-world simulations where the user can achieve badges and earn points while they learn new skills.
D) Autonomous Things are physical devices controlled by computers using complex algorithms.
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Autonomous Things (AuT)
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
25) Choose from the list below business opportunities for consumers facing Internet of Things (IoT) products.
A) Determine safe driver discounts
B) Predict machinery downtime
C) Optimize delivery routes
D) Manufacturing safety glasses including sensors or extended realities
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Technology
Bloom's: Application
AICPA: AC: Systems and Process Management
26) Choose from the list below business opportunities for business operations Internet of Things (IoT) products.
A) Determine safe driver discounts
B) Predict machinery downtime
C) Reward safe driving behaviors
D) Monitor heart rate, calorie burns, sleep quality and more
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Technology
Bloom's: Application
AICPA: AC: Systems and Process Management
27) When using IoT products, companies must manage risks related to the 5Vs of big data. Choose the best definition of Volume from the list below.
A) Huge amounts of data
B) Different formats of data from various sources
C) Extract useful data
D) High speed of accumulation of data
Diff: 1
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
28) When using IoT products, companies must manage risks related to the 5Vs of big data. Choose the best definition of Variety from the list below.
A) Huge amounts of data
B) Different formats of data from various sources
C) Extract useful data
D) High speed of accumulation of data
Diff: 1
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
29) When using IoT products, companies must manage risks related to the 5Vs of big data. Choose the best definition of Value from the list below.
A) Huge amounts of data
B) Different formats of data from various sources
C) Extract useful data
D) High speed of accumulation of data
Diff: 1
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
30) When using IoT products, companies must manage risks related to the 5Vs of big data. Choose the best definition of Velocity from the list below.
A) Huge amounts of data
B) Different formats of data from various sources
C) Extract useful data
D) High speed of accumulation of data
Diff: 1
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
31) When using IoT products, companies must manage risks related to the 5Vs of big data. Choose the best definition of Veracity from the list below.
A) Inconsistencies and uncertainty in data
B) Different formats of data from various sources
C) Extract useful data
D) High speed of accumulation of data
Diff: 1
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
32) Extended reality is not a new concept. However, recently this technology has found its way into consumer's devices in an affordable and accessible manner. Choose the correct order from the lists below.
A) Virtual Reality, Augmented Reality, Mixed Reality
B) Augmented Reality, Mixed Reality, Virtual Reality
C) Mixed Reality, Augmented Reality, Virtual Reality
D) Augmented Reality, Virtual Reality, Mixed Reality
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Extended Reality (XR)
AACSB: Analytic
Bloom's: Application
AICPA: AC: Technology and Tools
33) Extended reality is not a new concept. However, recently this technology has found its way into consumer's devices in an affordable and accessible manner. Choose the best definition of Augmented Reality (AR) from the list below.
A) Overlays reality with digital images
B) Hybrid combination of real and virtual objects coexisting in real time
C) Full immersion into a virtual world with virtual objects
D) Creating scenarios for employees to engage in
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Extended Reality (XR)
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
34) Extended reality is not a new concept. However, recently this technology has found its way into consumer's devices in an affordable and accessible manner. Choose the best definition of Mixed Reality (MR) from the list below.
A) Overlays reality with digital images
B) Hybrid combination of real and virtual objects coexisting in real time
C) Full immersion into a virtual world with virtual objects
D) Creating scenarios for employees to engage in
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Extended Reality (XR)
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
35) Extended reality is not a new concept. However, recently this technology has found its way into consumer's devices in an affordable and accessible manner. Choose the best definition of Virtual Reality (VR) from the list below.
A) Overlays reality with digital images
B) Hybrid combination of real and virtual objects coexisting in real time
C) Full immersion into a virtual world with virtual objects
D) Creating scenarios for employees to engage in
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Extended Reality (XR)
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
36) Choose from the list below business opportunities for badge achievements in Gamification.
A) Earning point for completion
B) Responding to high stress scenarios
C) Executing daily tasks
D) Engaging in health and wellness activities
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Gamification
AACSB: Technology
Bloom's: Application
AICPA: AC: Systems and Process Management
37) Choose from the list below business opportunities for drones in Autonomous Things (AuT).
A) Monitor crops for weed contamination
B) Security checks in a parking lot
C) Delivering medications in hospitals
D) Warehouse fulfillment
Diff: 2
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Autonomous Things (AuT)
AACSB: Technology
Bloom's: Application
AICPA: AC: Systems and Process Management
38) Choose from the list below the best definition of business process automation.
A) Business process automation is the act of managing information, data, costs, resources, and investments by increasing productivity through automating key business processes with computing technology.
B) Business process automation is software which automates and manages digital workflows through a drag and drop interface that does not require coding knowledge to establish or maintain.
C) Business process automation is comprised of complex algorithms programmed to mimic human cognitive functions to learn and solve a problem independently.
D) Business process automation is the process of using an algorithm to encode a plaintext message and to convert the plaintext to something that is seemingly meaningless.
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
39) Choose from the list below the best description of the use of software to aid robotic process automation.
A) Robotic process automation is the act of managing information, data, costs, resources, and investments by increasing productivity through automating key business processes with computing technology.
B) Robotic process automation software helps automates and manages digital workflows through a drag and drop interface that does not require coding knowledge to establish or maintain.
C) Robotic process automation is comprised of complex algorithms programmed to mimic human cognitive functions to learn and solve a problem independently.
D) Robotic process automation is the process of using an algorithm to encode a plaintext message and to convert the plaintext to something that is seemingly meaningless.
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
40) Choose from the list below the best definition of artificial intelligence.
A) Artificial intelligence is the act of managing information, data, costs, resources, and investments by increasing productivity through automating key business processes with computing technology.
B) Artificial intelligence is software which automates and manages digital workflows through a drag and drop interface that does not require coding knowledge to establish or maintain.
C) Artificial intelligence is comprised of complex algorithms programmed to mimic human cognitive functions to learn and solve a problem independently.
D) Artificial intelligence is the process of using an algorithm to encode a plaintext message and to convert the plaintext to something that is seemingly meaningless.
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
41) Choose from the list below a feature of robotic process automation.
A) Simulates human decision-making
B) Ideal for eliminating human efforts in complex analysis
C) Self-selects appropriate responses
D) Follows pre-programmed "rules"
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
42) Choose from the list below a feature of robotic process automation.
A) Ideal for repetitive tasks
B) Simulates human decision-making
C) Ideal for eliminating human efforts in complex analysis
D) Self-selects appropriate responses
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
43) Choose from the list below a feature of robotic process automation.
A) Simulates human decision-making
B) Smart enough to follow "orders"
C) Ideal for eliminating human efforts in complex analysis
D) Self-selects appropriate responses
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
44) Choose from the list below a feature of robotic process automation.
A) Simulates human decision-making
B) Ideal for eliminating human efforts in complex analysis
C) Initially programmed tasks never change.
D) Self-selects appropriate responses
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
45) Choose from the list below a feature of artificial intelligence.
A) Follows pre-programmed "rules"
B) Ideal for repetitive tasks
C) Simulates human decision-making
D) Initially programmed tasks never change.
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
46) Choose from the list below a feature of artificial intelligence.
A) Follows pre-programmed "rules"
B) Ideal for repetitive tasks
C) Initially programmed tasks never change.
D) Self-selects appropriate responses in real time
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
47) Choose from the list below a feature of artificial intelligence.
A) Ideal for eliminating human efforts in complex analysis
B) Follows pre-programmed "rules"
C) Ideal for repetitive tasks
D) Initially programmed tasks never change.
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
48) Choose from the list below a feature of artificial intelligence.
A) Follows pre-programmed "rules"
B) Initially programmed tasks evolve through self-learning.
C) Ideal for repetitive tasks
D) Initially programmed tasks never change.
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
49) Reviewing the illustration below. Which word fits best for A?
A) If
B) This
C) Then
D) That
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Analytic
Bloom's: Application
AICPA: AC: Technology and Tools
50) Reviewing the illustration below. Which word fits best for B?
A) If
B) This
C) Then
D) That
Diff: 2
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Analytic
Bloom's: Application
AICPA: AC: Technology and Tools
51) "RPA uses ________, in the form of "IF THIS THEN THAT", to pre-program "rules", or decisions, into the software."
A) unconditional accounts
B) unconditional statements
C) conditional accounts
D) conditional statements
Diff: 1
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Technology and Tools
52) "In RPA, conditional statements involve a ________, which is a scenario, and a subsequent action, or decision."
A) trigger
B) cause
C) situation
D) prompt
Diff: 1
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Technology and Tools
53) "In RPA, conditional statements involve a trigger, which is a ________, and a subsequent action, or decision."
A) cause
B) scenario
C) situation
D) prompt
Diff: 1
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Technology and Tools
54) "In RPA, conditional statements involve a trigger, which is a scenario, and a subsequent ________, or decision."
A) cause
B) situation
C) action
D) prompt
Diff: 1
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Technology and Tools
55) "A(n) ________ system enables the recording of digital transactions packaged in blocks that form a sequence, like a chain, in a peer-to-peer network."
A) blockchain
B) RPA
C) artificial intelligence
D) relational database
Diff: 1
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Introduction
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
56) "A blockchain system enables the recording of ________ packaged in blocks that form a sequence, like a chain, in a peer-to-peer network."
A) analog transactions
B) digital transactions
C) digital intelligence
D) analog intelligence
Diff: 1
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Introduction
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
57) "A(n) blockchain system enables the recording of digital transactions packaged in ________ that form a sequence, like a chain, in a peer-to-peer network."
A) circles
B) squares
C) blocks
D) wedges
Diff: 1
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Introduction
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
58) "A blockchain system enables the recording of digital transactions packaged in blocks that form a sequence, like a chain, in a ________ network."
A) wide area
B) local area
C) client-server
D) peer-to-peer
Diff: 1
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Introduction
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
59) Choose from the list below the best definition of blockchain nodes.
A) Nodes are the computers of participants in the network.
B) Nodes are who create the ledgers of transactions in chained blocks.
C) Nodes are computer programs that act as intermediaries that contract, execute, and settle contracts.
D) Nodes are the algorithms used to encode a message.
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: The Basics of Blockchain
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
60) Choose from the list below the best definition of blockchain miners.
A) Miners are the computers of participants in the network.
B) Miners are who create the ledgers of transactions in chained blocks.
C) Miners are computer programs that act as intermediaries that contract, execute, and settle contracts.
D) Miners are the algorithms used to encode a message.
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: The Basics of Blockchain
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
61) Choose from the list below the best definition of smart contracts.
A) Smart contracts are the computers of participants in the network.
B) Smart contracts are who create the ledgers of transactions in chained blocks.
C) Smart contracts are computer programs that act as intermediaries that contract, execute, and settle contracts.
D) Smart contracts are the algorithms used to encode a message.
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: The Basics of Blockchain
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
62) Choose from the list below the best definition of cryptology.
A) Cryptology are the algorithms used to encode a message.
B) Cryptology are the algorithms used to convert an encrypted message back to its original form.
C) Cryptology are computer programs that act as intermediaries that contract, execute, and settle contracts.
D) Cryptology is the science of using a secret code for secure data communication.
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Cryptology
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
63) Choose from the list below the best definition of encryption.
A) Encryptions are the algorithms used to encode a message.
B) Encryptions are the algorithms used to convert an encrypted message back to its original form.
C) Encryptions are the computer programs that act as intermediaries that contract, execute, and settle contracts.
D) Encryption is the science of using a secret code for secure data communication.
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Cryptology
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
64) Choose from the list below the best definition of decryption.
A) Decryptions are the algorithms used to encode a message.
B) Decryptions are the algorithms used to convert an encrypted message back to its original form.
C) Decryptions are the computer programs that act as intermediaries that contract, execute, and settle contracts.
D) Decryption is the science of using a secret code for secure data communication.
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Cryptology
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
65) Reviewing the illustration below. Which word fits best for A?
A) Plain text
B) Cipher text
C) Encrypted text
D) Simple text
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Cryptology
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
66) Reviewing the illustration below. Which word fits best for B?
A) Plain text
B) Cipher text
C) Decrypted text
D) Simple text
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Cryptology
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
67) Reviewing the illustration below. Which word fits best for C?
A) Encrypted text
B) Simple text
C) Plain text
D) Cipher text
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Cryptology
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
68) Which of the following is NOT one of the blockchain ledgers?
A) Centralized
B) Decentralized
C) Distributed
D) Dispersed
Diff: 1
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Blockchain Ledgers
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
69) Choose from the following list the best definition of a centralized ledger.
A) In a centralized ledger system, everyone has access to a central ledger.
B) In a centralized ledger system, everyone received an electronic copy of the ledger.
C) In a centralized ledger system, there are groups of users with access to hubs with copies of the same ledger.
D) In a centralized ledger system, there is no ledger.
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Blockchain Ledgers
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
70) Choose from the following list the best definition of a distributed ledger.
A) In a distributed ledger system, everyone has access to a central ledger.
B) In a distributed ledger system, everyone received an electronic copy of the ledger.
C) In a distributed ledger system, there are groups of users with access to hubs with copies of the same ledger.
D) In a distributed ledger system, there is no ledger.
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Blockchain Ledgers
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
71) Choose from the following list the best definition of a decentralized ledger.
A) In a decentralized ledger system, everyone has access to a central ledger.
B) In a decentralized ledger system, everyone received an electronic copy of the ledger.
C) In a decentralized ledger system, there are groups of users with access to hubs with copies of the same ledger.
D) In a decentralized ledger system, there is no ledger.
Diff: 2
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Blockchain Ledgers
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
72) Which is NOT one of the three interrelated fundamental principles of blockchain technology that build on one another?
A) Decentralization
B) Transparency
C) Immutability
D) Opaqueness
Diff: 1
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Fundamental Principles
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
73) "In a ________ blockchain the intermediary comes back. A single entity governs the network."
A) private
B) public
C) consortium
D) corporate
Diff: 1
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Types of Blockchain Systems
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
74) "A ________ blockchain allows a group of companies to collaborate and leverage information that improves workflows, accountability, and transparency."
A) private
B) public
C) consortium
D) corporate
Diff: 1
Learning Objective: 7.4 Identify the fundamental principles and technologies of blockchain
Section Reference: Types of Blockchain Systems
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
75) The accounting profession is evolving in response to the use of blockchain technology in business. Choose from the list below how audit professionals are impacted by the use of blockchain.
A) Track and validate cryptocurrency transactions
B) Record transactions related to buying and selling cryptocurrencies
C) Simplify and automate tax compliance and transparency
D) Secured payments are sent to suppliers as soon as materials are received.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
76) The accounting profession is evolving in response to the use of blockchain technology in business. Choose from the list below how audit professionals are impacted by the use of blockchain.
A) Record transactions related to buying and selling cryptocurrencies
B) Verify ownership of transactions
C) Simplify and automate tax compliance and transparency
D) Secured payments are sent to suppliers as soon as materials are received.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
77) The accounting profession is evolving in response to the use of blockchain technology in business. Choose from the list below how audit professionals are impacted by the use of blockchain.
A) Record transactions related to buying and selling cryptocurrencies
B) Simplify and automate tax compliance and transparency
C) Drill down to the code level to ensure a blockchain system is functioning correctly technologically
D) Secured payments are sent to suppliers as soon as materials are received.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
78) The accounting profession is evolving in response to the use of blockchain technology in business. Choose from the list below how audit professionals are impacted by the use of blockchain.
A) Record transactions related to buying and selling cryptocurrencies
B) Simplify and automate tax compliance and transparency
C) Secured payments are sent to suppliers as soon as materials are received.
D) Acquire sufficient evidence about the nature of blockchain transactions
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
79) The accounting profession is evolving in response to the use of blockchain technology in business. Choose from the list below how financial accountants are impacted by the use of blockchain.
A) Record transactions related to buying and selling cryptocurrencies
B) Simplify and automate tax compliance and transparency
C) Secured payments are sent to suppliers as soon as materials are received.
D) Acquire sufficient evidence about the nature of blockchain transactions
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
80) The accounting profession is evolving in response to the use of blockchain technology in business. Choose from the list below how tax accountants are impacted by the use of blockchain.
A) Record transactions related to buying and selling cryptocurrencies
B) Simplify and automate tax compliance and transparency
C) Secured payments are sent to suppliers as soon as materials are received.
D) Acquire sufficient evidence about the nature of blockchain transactions
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
81) The accounting profession is evolving in response to the use of blockchain technology in business. Choose from the list below how purchasing accountants are impacted by the use of blockchain.
A) Record transactions related to buying and selling cryptocurrencies
B) Simplify and automate tax compliance and transparency
C) Secured payments are sent to suppliers as soon as materials are received.
D) Acquire sufficient evidence about the nature of blockchain transactions
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
82) Data integrity is one of the characteristics of good data. Choose from the list below how blockchain systems impact data integrity.
A) Data is immutable once entered into a blockchain ledger and cannot be changed or deleted.
B) Each node can potentially back up the entire blockchain ledger to provide multiple copies.
C) Miners verify validation of transactions by a majority consensus prior to entry.
D) A blockchain is widely distributed.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Improving Data Quality
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
83) Data retention is one of the characteristics of good data. Choose from the list below how blockchain systems impact data retention.
A) Data is immutable once entered into a blockchain ledger and cannot be changed or deleted.
B) Each node can potentially back up the entire blockchain ledger to provide multiple copies.
C) Miners verify validation of transactions by a majority consensus prior to entry.
D) A blockchain is widely distributed.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Improving Data Quality
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
84) Data validity is one of the characteristics of good data. Choose from the list below how blockchain systems impact data validity.
A) Data is immutable once entered into a blockchain ledger and cannot be changed or deleted.
B) Each node can potentially back up the entire blockchain ledger to provide multiple copies.
C) Miners verify validation of transactions by a majority consensus prior to entry.
D) A blockchain is widely distributed.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Improving Data Quality
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
85) Data transparency is one of the characteristics of good data. Choose from the list below how blockchain systems impact data transparency.
A) Data is immutable once entered into a blockchain ledger and cannot be changed or deleted.
B) Each node can potentially back up the entire blockchain ledger to provide multiple copies.
C) Miners verify validation of transactions by a majority consensus prior to entry.
D) A blockchain is widely distributed.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Improving Data Quality
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
86) Data security is one of the characteristics of good data. Choose from the list below how blockchain systems impact data security.
A) A majority of participants must generally collude for fraud to happen.
B) Each node can potentially back up the entire blockchain ledger to provide multiple copies.
C) Miners verify validation of transactions by a majority consensus prior to entry.
D) A blockchain is widely distributed.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Improving Data Quality
AACSB: Ethics
Bloom's: Knowledge
AICPA: AC: Technology and Tools
87) Data integrity is one of the characteristics of good data. Choose from the list below how traditional ledgers impact data integrity.
A) They have the risk of subsequent manipulation.
B) Backups are far more restricted.
C) Verification of transactions may be limited to a single person.
D) A traditional ledger is not widely distributed.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Improving Data Quality
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
88) Data retention is one of the characteristics of good data. Choose from the list below how traditional ledgers impact data retention.
A) They have the risk of subsequent manipulation.
B) Backups are far more restricted.
C) Verification of transactions may be limited to a single person.
D) A traditional ledger is not widely distributed.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Improving Data Quality
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
89) Data validity is one of the characteristics of good data. Choose from the list below how traditional ledgers impact data validity.
A) They have the risk of subsequent manipulation.
B) Backups are far more restricted.
C) Verification of transactions may be limited to a single person.
D) A traditional ledger is not widely distributed.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Improving Data Quality
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
90) Data transparency is one of the characteristics of good data. Choose from the list below how traditional ledgers impact data transparency.
A) They have the risk of subsequent manipulation.
B) Backups are far more restricted.
C) Verification of transactions may be limited to a single person.
D) A traditional ledger is not widely distributed.
Diff: 2
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Improving Data Quality
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Technology and Tools
91) Not every emerging technology becomes disruptive, as they are not always successful. In 2019 Google stopped supporting Google Glass, a pair of smart glasses they released in 2014. What happened that led Google to stop supporting Google Glass?
Diff: 3
Learning Objective: 7.1 Explain how businesses identify risks and opportunities associated with emerging and disruptive technologies
Section Reference: Risk and Risk Mitigation
AACSB: Technology
Bloom's: Knowledge
AICPA: AC: Risk Assessment, Analysis, and Management
92) There has been some public pushback against consumer facing IoT products. Runners often use wearable devices like a Fitbit to see if their pace is improving. What are some of the corresponding risks with using a Fitbit?
Diff: 3
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Internet of Things (IoT)
AACSB: Technology
Bloom's: Synthesis
AICPA: AC: Risk Assessment, Analysis, and Management
93) Amazon Prime Air is taking to the sky to make deliveries and Amazon Scout is now roaming the streets also making deliveries. In which of the emerging technologies discussed in the textbook do these new technologies fit?
Diff: 3
Learning Objective: 7.2 Identify business opportunities provided by disruptive technologies
Section Reference: Autonomous Things (AuT)
AACSB: Technology
Bloom's: Synthesis
AICPA: AC: Risk Assessment, Analysis, and Management
94) Read the following current state and discuss why this scenario is highly compatible with RPA:
When a vendor sends an invoice, the Accounts Payable Clerk opens the email, reviews the attachment, and saves it to that vendor's folder on the shared network drive. The Accounts Payable Clerk then opens the accounts payable information system and inputs the details of the invoice-vendor, amount, due date — into the system.
• There is no decision-making that requires judgment
• This activity is performed frequently
• The same steps recur each time
Diff: 3
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
95) To be feasible, a proposed RPA use case must fit into the rigid structure of the rules-based programming RPA uses. Discuss the characteristics of processes that are ideal RPA projects.
• Routine
• Consistent
• Digital
• Time consuming
• Performed frequently
Diff: 3
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
96) The Roomba robot vacuum has evolved over the years. Briefly discuss how the more recent Roomba models use Artificial Intelligence.
Diff: 3
Learning Objective: 7.3 Apply the principles of robotic process automation to accounting use cases
Section Reference: Types of Automation
AACSB: Technology
Bloom's: Application
AICPA: AC: Technology and Tools
97) Blockchain has the potential to significantly disrupt the accounting profession. Briefly discuss.
Diff: 3
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Introduction
AACSB: Knowledge
Bloom's: Synthesis
AICPA: AC: Technology and Tools
98) Accountants are often trusted advisors to small businesses, own their own small businesses, or work for a smaller business. Blockchain systems offer advantages that small business could adopt. Discuss.
• Increased security with a strong authentication process
• All data is distributed to different computers in different locations, vastly mitigating any risk of data manipulation or deletion
o Blockchain technology includes programmed self-executing contracts that avoid the need for intermediaries like lawyers, significantly lowering costs
o Blockchain-based payment platforms provide alternatives to cash through the option to transfer funds directly, securely, and instantly
Diff: 3
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Synthesis
AICPA: AC: Technology and Tools
99) In the near future, blockchain is changing the way accounting professionals work. Discuss potential changes for purchasing accountants.
Diff: 3
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Synthesis
AICPA: AC: Technology and Tools
100) In the near future, blockchain is changing the way accounting professionals work. Discuss potential changes for tax accountants.
Diff: 3
Learning Objective: 7.5 Explain blockchain's relevance to accounting professionals
Section Reference: Evolving Career Opportunities
AACSB: Technology
Bloom's: Synthesis
AICPA: AC: Technology and Tools
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