ACTG 313 Test Exam Questions With Correct Answers
100% Verified Graded A+
1. 1.1 Information is best described as
a) raw facts about transactions.
b) A set of related, coordinated, and structured data.
c) facts that are collected, recorded, stored, and processed by an information
system.
d) data that have been organized and processed to provide meaning and im- prove
decision making.
Answer: d)data that have been organized and processed to provide meaning and improve decision making.
2. 1.2 The value of information can best be determined by
a) the time it takes to help decision makers make their decisions.
b) the relevance provided to decision makers.
c) the benefit provided by information less the cost of producing it.
,d) the usefulness provided to decision makers.
Answer: c) the benefit provided by information less the cost of producing it.
3. 1.3 information reduces uncertainty, improves decision making, or
confirms or corrects prior expectations.
a) Reliable
b)Complete
c)Verifiable
d)Relevant
Answer: d)Relevant
4. 1.4 Joey Smith has been the controller of Nadia Cake for the past 5 years. The
owners of Nadia have recently decided to expand their operation and are in the
process of obtaining a loan from a local bank. In order to be qualified for the
loan, the bank asks Nadia to conduct an audit of the financial records. The
auditors have been unable to obtain Nadia's financial statements that were
prepared by Joey. While there is no evidence of wrongdoing, the auditors are
not able to complete the audit. Which of the following characteristics of useful
information is absent in the situation described above?
,a) Accessible
b)Verifiable
c)Complete
d)Reliable
Answer: Accessible
5. 1.9 All of the following are ways an AIS can add value to an organization
except
a) Increasing product costs
b) Sharing knowledge
c)Improving efficiency
d)Improving internal controls
Answer: a) increasing product costs
6. 1.10 Which of the following is NOT a component of an AIS?
a)software
b) company culture
c) IT infrastructure
d) people
Answer: b)company culture
7. 2-1.1 The text discusses three different steps when processing input. Which
, of the following is (are) one of those steps? (Check all that apply.)
a) Make sure the input data is processed and stored correctly.
b) Make sure company policies are followed when data is input.
c) Make sure to capture transaction data and enter them into the system.
d) Make sure captured data are accurate and complete.
Answer: b)Make sure company policies are followed when data is input.
c) Make sure to capture transaction data and enter them into the system.
d) Make sure captured data are accurate and complete.
8. 2-1.2 With respect to data input, data must be collected about three facets of
each business activity. Which of the following is (are) one of those facets?
(Check all that apply.)
a) Each activity of interest
b) The resource(s) affected by each activity
c) The decisions that will be made about each activity
d) The people who participate in each activity
e) The controls needed to protect activity data
Answer: a,b,d
100% Verified Graded A+
1. 1.1 Information is best described as
a) raw facts about transactions.
b) A set of related, coordinated, and structured data.
c) facts that are collected, recorded, stored, and processed by an information
system.
d) data that have been organized and processed to provide meaning and im- prove
decision making.
Answer: d)data that have been organized and processed to provide meaning and improve decision making.
2. 1.2 The value of information can best be determined by
a) the time it takes to help decision makers make their decisions.
b) the relevance provided to decision makers.
c) the benefit provided by information less the cost of producing it.
,d) the usefulness provided to decision makers.
Answer: c) the benefit provided by information less the cost of producing it.
3. 1.3 information reduces uncertainty, improves decision making, or
confirms or corrects prior expectations.
a) Reliable
b)Complete
c)Verifiable
d)Relevant
Answer: d)Relevant
4. 1.4 Joey Smith has been the controller of Nadia Cake for the past 5 years. The
owners of Nadia have recently decided to expand their operation and are in the
process of obtaining a loan from a local bank. In order to be qualified for the
loan, the bank asks Nadia to conduct an audit of the financial records. The
auditors have been unable to obtain Nadia's financial statements that were
prepared by Joey. While there is no evidence of wrongdoing, the auditors are
not able to complete the audit. Which of the following characteristics of useful
information is absent in the situation described above?
,a) Accessible
b)Verifiable
c)Complete
d)Reliable
Answer: Accessible
5. 1.9 All of the following are ways an AIS can add value to an organization
except
a) Increasing product costs
b) Sharing knowledge
c)Improving efficiency
d)Improving internal controls
Answer: a) increasing product costs
6. 1.10 Which of the following is NOT a component of an AIS?
a)software
b) company culture
c) IT infrastructure
d) people
Answer: b)company culture
7. 2-1.1 The text discusses three different steps when processing input. Which
, of the following is (are) one of those steps? (Check all that apply.)
a) Make sure the input data is processed and stored correctly.
b) Make sure company policies are followed when data is input.
c) Make sure to capture transaction data and enter them into the system.
d) Make sure captured data are accurate and complete.
Answer: b)Make sure company policies are followed when data is input.
c) Make sure to capture transaction data and enter them into the system.
d) Make sure captured data are accurate and complete.
8. 2-1.2 With respect to data input, data must be collected about three facets of
each business activity. Which of the following is (are) one of those facets?
(Check all that apply.)
a) Each activity of interest
b) The resource(s) affected by each activity
c) The decisions that will be made about each activity
d) The people who participate in each activity
e) The controls needed to protect activity data
Answer: a,b,d
