Test Bank - Accounting Information Systems 15th Edition, Marshall B Romney, Paul J. Steinbart, Scott L. Summers, David A. Wood

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, Chapter 1 Accounting ss s s




Information Systems: An
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Overview ss




1.1 Distinguish data from information, discuss the characteristics of useful information, and
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explain how to determine the value of information.
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1) Which of the following statements below shows the contrast between data and
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information?
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A) Data is the output of an AIS.
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B) Information is the primary output of an AIS. ss ss ss ss ss ss ss



C) Data is more useful in decision making than information.
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D) Data and information are the same.
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Answer: B s s




2) Information is best described as ss ss ss ss




A) raw facts about transactions.
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B) data that has been organized and processed so that it is meaningful to the user.
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C) facts that are useful when processed in a timely manner.
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D) the same thing as data.
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Answer: B s s




3) The value of information can best be determined by
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A) its usefulness to decision makers.
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B) its relevance to decision makers.
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C) the benefits associated with obtaining the information minus the cost of producing it.
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D) the extent to which it optimizes the value chain.
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,Answer: C s s




4) An accounting information system (AIS) processes
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.
A) data; information
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B) data; transactions
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C) information; data ss



D) data; benefits
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Answer: A
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5) information reduces uncertainty, improves decision makers' ability to make
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predictions, or confirms expectations.
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A) Timely




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, B) Reliable
C) Relevant
D) Complete

Answer: C
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6) Information that is free from error or bias and accurately represents the events or activities
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of the organization is
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A) relevant.
B) reliable / Faithful Representation.
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C) verifiable.
D) timely.

Answer: B s s




7) Information that does not omit important aspects of the underlying events or activities
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that it measures is
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A) complete.
B) accessible.
C) relevant.
D) timely.

Answer: A s s




8) Information is ss ss when two knowledgeable people independently produce the
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same information.
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A) verifiable
B) relevant
C) reliable
D) complete

Answer: A
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9) Data must be converted into information to be considered useful and meaningful for
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decision making. There are six characteristics that make information both useful and
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meaningful. If information is free from error or bias and accurately represents the events or
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activities of the organization, it is representative of the characteristic of
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A) relevancy.
B) timeliness.
C) understandability.
D) reliability.




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