ACCA BT · Chapter 6
Technology and information systems MCQs with Answers
11 multiple-choice questions on Technology and information systems for ACCA BT Business and Technology. Try each one before revealing the answer and explanation.
Practise this chapter interactivelyQuestion 1
A company accesses accounting software over the internet on a subscription basis, with the provider responsible for hosting, maintenance and upgrades. Which cloud service model is this?
- A) Infrastructure as a Service (IaaS)
- B) Platform as a Service (PaaS)
- C) On-premise licensing
- D) Software as a Service (SaaS)
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Answer: D) Software as a Service (SaaS)
SaaS delivers complete applications over the internet, with the provider managing the software and infrastructure. IaaS provides raw computing resources such as servers and storage, PaaS provides an environment on which customers build and run their own applications, and on-premise software is installed and run on the customer's own hardware.
Question 2
Which of the following is a recognised DISADVANTAGE of cloud computing for an organisation?
- A) Dependence on the provider and on internet connectivity for access to systems and data
- B) The need for large up-front capital expenditure on servers
- C) Difficulty in increasing capacity as the business grows
- D) Staff can only access systems from inside the office
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Answer: A) Dependence on the provider and on internet connectivity for access to systems and data
Cloud computing creates reliance on the provider's security, reliability and continued existence, and on a working internet connection. Large up-front investment and difficulty scaling are disadvantages of in-house systems that the cloud helps to avoid, and cloud systems typically allow access from any location.
Question 3
Big data is often described in terms of several 'Vs'. Which of these refers to the speed at which data is generated and must be processed?
- A) Volume
- B) Velocity
- C) Variety
- D) Veracity
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Answer: B) Velocity
Velocity refers to the speed at which data arrives and needs processing, often in real time. Volume is the sheer quantity of data, variety is the range of formats (structured, unstructured, images, text), and veracity concerns the reliability and accuracy of the data.
Question 4
A retailer uses historical sales data, weather forecasts and local events information to estimate how much stock each store will need next week. What type of data analytics is this?
- A) Descriptive analytics
- B) Predictive analytics
- C) Diagnostic analytics
- D) Prescriptive analytics
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Answer: B) Predictive analytics
Predictive analytics uses historical and current data to forecast what is likely to happen. Descriptive analytics summarises what has happened, diagnostic analytics explains why it happened, and prescriptive analytics goes further by recommending the best course of action.
Question 5
What is the main characteristic of blockchain technology?
- A) A central database controlled by a single trusted bank
- B) A distributed ledger in which records are shared across a network and are extremely difficult to alter once added
- C) A type of anti-virus software used to protect financial systems
- D) A cloud storage service that automatically deletes old transactions
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Answer: B) A distributed ledger in which records are shared across a network and are extremely difficult to alter once added
Blockchain is a form of distributed ledger technology: copies of the ledger are held across many participants, new blocks are validated by consensus and cryptographically linked, making past records very hard to change. It does not rely on a single central authority, it is not anti-virus software, and it does not delete old transactions.
Question 6
An employee receives an email that appears to come from the company's bank, asking them to click a link and confirm the company's online banking password. What type of cyber attack is this most likely to be?
- A) Denial of service
- B) Hacking by brute force
- C) Ransomware encryption
- D) Phishing
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Answer: D) Phishing
Phishing uses fraudulent communications that impersonate trusted organisations to trick users into revealing credentials or other sensitive information. A denial of service attack floods a system to make it unavailable, brute force hacking repeatedly guesses passwords, and ransomware encrypts data and demands payment.
Question 7
Which of the following controls is specifically designed to prevent unauthorised external access to an organisation's network from the internet?
- A) Regular data back-ups
- B) An uninterruptible power supply
- C) A firewall
- D) A disaster recovery plan
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Answer: C) A firewall
A firewall monitors and filters traffic between the internal network and external networks, blocking unauthorised access. Back-ups, an uninterruptible power supply and a disaster recovery plan help an organisation recover from or withstand data loss and disruption, but they do not prevent intrusion.
Question 8
Which of the following best describes 'fintech'?
- A) The use of technology to deliver or improve financial services, such as mobile payments and online lending platforms
- B) Accounting software used only by large financial institutions
- C) A regulatory body that supervises banks
- D) A method of manual bookkeeping used by small businesses
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Answer: A) The use of technology to deliver or improve financial services, such as mobile payments and online lending platforms
Fintech refers to technological innovation in financial services, including digital payments, peer-to-peer lending, crowdfunding platforms, robo-advisers and cryptocurrencies. It is not limited to large institutions, it is not a regulator, and it is the opposite of manual bookkeeping.
Question 9
A company automates its high-volume, rule-based task of matching supplier invoices with purchase orders and goods received notes using software 'bots' that mimic human keystrokes. What technology is being used?
- A) Artificial general intelligence
- B) The Internet of Things
- C) Robotic process automation
- D) Virtual reality
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Answer: C) Robotic process automation
Robotic process automation uses software bots to perform repetitive, structured, rules-based tasks across existing systems, imitating the actions a human would take. It does not require general intelligence. The Internet of Things concerns connected physical devices sharing data, and virtual reality creates immersive simulated environments.
Question 10
An organisation encrypts the customer data held on its laptops. What is the main benefit of this control?
- A) It prevents the laptop from being stolen in the first place
- B) It creates an automatic back-up copy of the data
- C) If a laptop is lost or stolen, the data cannot be read by an unauthorised person without the decryption key
- D) It prevents viruses from infecting the laptop
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Answer: C) If a laptop is lost or stolen, the data cannot be read by an unauthorised person without the decryption key
Encryption converts data into an unreadable form that can only be decoded with the correct key, protecting confidentiality if the device falls into the wrong hands. It does not prevent physical theft, does not back up data and is not a substitute for anti-virus software.
Question 11
Which type of information system is designed to provide senior managers with summarised, high-level information from internal and external sources, often through a dashboard with the ability to 'drill down'?
- A) A transaction processing system
- B) An executive information system
- C) An office automation system
- D) A management information system producing routine exception reports for supervisors
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Answer: B) An executive information system
An executive information system (EIS) supports strategic-level managers by presenting summarised internal and external data, typically graphically, with drill-down to more detail. Transaction processing systems record routine transactions, office automation supports clerical tasks, and routine MIS reports serve middle and operational managers.