, TESTBANK FOR Accounting Information Systems 2nd Edition Savage
Important Notes
The file organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
⚠️Note on Answer Keys: If the answer key is not included within the chapter
questions, you will find the complete answers and solutions at the end of each
chapter.
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,Accounting Information Systems, 2e (Savage)
Chapter 1 Accounting as Information
MULTIPLE CHOICE
1) The accounting information communicates to stakeholders
A) minimally required public financial data.
B) the financial outcomes of operating, investing, and financing activities.
C) the sales strategy for the operating, marketing, and sales activities.
D) black and white details about the economics of operating activities.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Communication
Bloom's: Comprehension
AICPA: AC: Reporting
2) Accounting communicates the financial outcomes of a business's activities for
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
Answer: D
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Communication
Bloom's: Comprehension
AICPA: AC: Reporting
3) In what way do management teams use accounting data?
A) Management teams use accounting data to make business decisions.
B) Management teams use accounting data to make and execute plans.
C) Management teams use economic and accounting data together to make decisions.
D) All of these answer choices are correct.
Answer: D
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
1
,4) Which statement is TRUE?
A) Accounting only consists of rigid black and white rules.
B) Accountants crunch numbers, not make decisions.
C) Accounting helps support a prosperous society.
D) Accountants focus on debits and credits, not business activities.
Answer: C
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: N/A
5) Which of the following is NOT a component of an information system?
A) Hardware
B) Software
C) Input
D) Network
Answer: C
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
6) Which is an example of an input to an accounting information system?
A) raw and unorganized data.
B) hardware and software.
C) reported information.
D) processed data.
Answer: A
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
2
,7) Output can be identified as
A) raw and unorganized data.
B) information that is produced by processing data.
C) database facts and figures.
D) information collected from survey of users.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
8) Which statement concerning data is FALSE?
A) Data is useful to a business when transformed into information.
B) Data is the only output from an information system.
C) Data should be organized into understandable formats.
D) Data is processed before being input into the information system.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
9) Which of the following activities would NOT result in an economic transaction in an
accounting information system?
A) Sell goods to a customer on account
B) Purchase supplies on credit
C) Prepay for six months of insurance
D) Prepare a marketing flyer
Answer: D
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
3
,10) Which of the following activities results in an economic transaction in an accounting
information system?
A) Sell goods to a customer
B) Submit an order to a vendor
C) Create estimates for a customer
D) Receive a customer order
Answer: A
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
11) An accounting information system captures data that is
A) easy to capture for the business.
B) of interest to the business.
C) not useful to the business.
D) available to the business.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
12) A business model is
A) a company's plan for operations.
B) a company's plan for making a profit.
C) a company's plan for identifying customers.
D) a company's plan for production.
Answer: A
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
4
,13) What kind of business model should an entrepreneurial application developer consider for a
new smartphone application that will allow users to access some features for free and pay for
additional capabilities?
A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: C
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
14) Samantha's Soy Candles has built a retail location in a seasonally busy tourist town.
Samantha has developed a scent of the month that she plans to market to customers as a once per
month shipment. The monthly shipment of these candles could help Samantha during the slow
months at her retail store. What kind of business model would Samantha employ for her new
seasonal candle shipment business line?
A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: B
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
5
,15) PizzaIbiza, a local pizza shop, developed an app to order pizza directly to the customer
instead of using a third-party app like Uber Eats or DoorDash. What is the business model of
Netflix?
A) Franchise
B) Subscription
C) Freemium
D) Direct-to-consumer
Answer: D
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
16) Fast-food chains that allow individuals to purchase and operate a location for that chain are
operating under what kind of business model?
A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: A
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
17) Zuzu toys employs strategies to benefit the local community and the environment. What part
of the business model is this identified with?
A) Profit-making
B) Social responsibility
C) Problem Solving
D) Peer-to-peer
Answer: B
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
6
,18) A ________ is a group of related business events designed to accomplish the business's
strategic objectives.
A) business model
B) business operations
C) business process
D) conversion process
Answer: C
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
19) What are the primary types of business processes in a basic business model?
A) Acquisition and Payment Processes
B) Conversion Processes
C) Marketing, Sales, and Collections Processes
D) All of these answer choices are correct.
Answer: D
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
20) During what processes does a business add value by converting the raw resources into goods
and services that a customer might want to purchase?
A) Acquisition and Payment Processes
B) Conversion Processes
C) Marketing, Sales, and Collections Processes
D) All of these answer choices are correct.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
7
, 21) Tina, Tammy, and Toni opened a Pizza Hut franchise in the suburbs of a major metropolitan
area. Tina manages the team that handles making the pizzas. What process area demands the
most of Tina's focus?
A) Acquisition and Payment
B) Conversion
C) Marketing, Sales, and Collections
D) All of these answer choices are correct.
Answer: B
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
22) Tina, Tammy, and Toni opened a Pizza Hut franchise in the suburbs of a major metropolitan
area. Tammy manages the cash drawer, credit card reconciliation, and payroll. Which of the
following type of business event is Tammy's to manage?
A) Operating events
B) Financing events
C) Investing events
D) All of these answer choices are correct.
Answer: A
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
23) Which type of business event includes paying dividends and paying loan installments?
A) Operating events
B) Financing events
C) Investing events
D) Information events
Answer: B
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
8
Important Notes
The file organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
⚠️Note on Answer Keys: If the answer key is not included within the chapter
questions, you will find the complete answers and solutions at the end of each
chapter.
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
,Accounting Information Systems, 2e (Savage)
Chapter 1 Accounting as Information
MULTIPLE CHOICE
1) The accounting information communicates to stakeholders
A) minimally required public financial data.
B) the financial outcomes of operating, investing, and financing activities.
C) the sales strategy for the operating, marketing, and sales activities.
D) black and white details about the economics of operating activities.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Communication
Bloom's: Comprehension
AICPA: AC: Reporting
2) Accounting communicates the financial outcomes of a business's activities for
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
Answer: D
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Communication
Bloom's: Comprehension
AICPA: AC: Reporting
3) In what way do management teams use accounting data?
A) Management teams use accounting data to make business decisions.
B) Management teams use accounting data to make and execute plans.
C) Management teams use economic and accounting data together to make decisions.
D) All of these answer choices are correct.
Answer: D
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
1
,4) Which statement is TRUE?
A) Accounting only consists of rigid black and white rules.
B) Accountants crunch numbers, not make decisions.
C) Accounting helps support a prosperous society.
D) Accountants focus on debits and credits, not business activities.
Answer: C
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: N/A
5) Which of the following is NOT a component of an information system?
A) Hardware
B) Software
C) Input
D) Network
Answer: C
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
6) Which is an example of an input to an accounting information system?
A) raw and unorganized data.
B) hardware and software.
C) reported information.
D) processed data.
Answer: A
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
2
,7) Output can be identified as
A) raw and unorganized data.
B) information that is produced by processing data.
C) database facts and figures.
D) information collected from survey of users.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
8) Which statement concerning data is FALSE?
A) Data is useful to a business when transformed into information.
B) Data is the only output from an information system.
C) Data should be organized into understandable formats.
D) Data is processed before being input into the information system.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
9) Which of the following activities would NOT result in an economic transaction in an
accounting information system?
A) Sell goods to a customer on account
B) Purchase supplies on credit
C) Prepay for six months of insurance
D) Prepare a marketing flyer
Answer: D
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
3
,10) Which of the following activities results in an economic transaction in an accounting
information system?
A) Sell goods to a customer
B) Submit an order to a vendor
C) Create estimates for a customer
D) Receive a customer order
Answer: A
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
11) An accounting information system captures data that is
A) easy to capture for the business.
B) of interest to the business.
C) not useful to the business.
D) available to the business.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
12) A business model is
A) a company's plan for operations.
B) a company's plan for making a profit.
C) a company's plan for identifying customers.
D) a company's plan for production.
Answer: A
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
4
,13) What kind of business model should an entrepreneurial application developer consider for a
new smartphone application that will allow users to access some features for free and pay for
additional capabilities?
A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: C
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
14) Samantha's Soy Candles has built a retail location in a seasonally busy tourist town.
Samantha has developed a scent of the month that she plans to market to customers as a once per
month shipment. The monthly shipment of these candles could help Samantha during the slow
months at her retail store. What kind of business model would Samantha employ for her new
seasonal candle shipment business line?
A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: B
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
5
,15) PizzaIbiza, a local pizza shop, developed an app to order pizza directly to the customer
instead of using a third-party app like Uber Eats or DoorDash. What is the business model of
Netflix?
A) Franchise
B) Subscription
C) Freemium
D) Direct-to-consumer
Answer: D
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
16) Fast-food chains that allow individuals to purchase and operate a location for that chain are
operating under what kind of business model?
A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: A
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
17) Zuzu toys employs strategies to benefit the local community and the environment. What part
of the business model is this identified with?
A) Profit-making
B) Social responsibility
C) Problem Solving
D) Peer-to-peer
Answer: B
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
6
,18) A ________ is a group of related business events designed to accomplish the business's
strategic objectives.
A) business model
B) business operations
C) business process
D) conversion process
Answer: C
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
19) What are the primary types of business processes in a basic business model?
A) Acquisition and Payment Processes
B) Conversion Processes
C) Marketing, Sales, and Collections Processes
D) All of these answer choices are correct.
Answer: D
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
20) During what processes does a business add value by converting the raw resources into goods
and services that a customer might want to purchase?
A) Acquisition and Payment Processes
B) Conversion Processes
C) Marketing, Sales, and Collections Processes
D) All of these answer choices are correct.
Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
7
, 21) Tina, Tammy, and Toni opened a Pizza Hut franchise in the suburbs of a major metropolitan
area. Tina manages the team that handles making the pizzas. What process area demands the
most of Tina's focus?
A) Acquisition and Payment
B) Conversion
C) Marketing, Sales, and Collections
D) All of these answer choices are correct.
Answer: B
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
22) Tina, Tammy, and Toni opened a Pizza Hut franchise in the suburbs of a major metropolitan
area. Tammy manages the cash drawer, credit card reconciliation, and payroll. Which of the
following type of business event is Tammy's to manage?
A) Operating events
B) Financing events
C) Investing events
D) All of these answer choices are correct.
Answer: A
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
23) Which type of business event includes paying dividends and paying loan installments?
A) Operating events
B) Financing events
C) Investing events
D) Information events
Answer: B
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
information.
Section Reference: Why Is Accounting Information Important?
AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
8
