Test Bank
Accounting Information Systems, 16th Edition | Marshall B.
Romney - Comprehensive with Answers; Complete Exam
Questions & Solutions
1|Page
, Chapter 1 Accounting Information Systems: An Overview
1.1Distinguish data from information, discuss the characteristics of useful information, and explain
how to determine the value of information.
1) Which of the following statements below shows the contrast between data and information?
A) Data is the output of an AIS.
B) Information is the primary output of an AIS.
C) Data is more useful in decision making than information.
D) Data and information are the same.
Correct Answer: B
2) Information is best described as
A) raw facts about transactions.
B) data that has been organized and processed so that it is meaningful to the user.
C) facts that are useful when processed in a timely manner.
D) the same thing as data.
Correct Answer: B
3) The value of information can best be determined by
A) its usefulness to decision makers.
B) its relevance to decision makers.
C) the benefits associated with obtaining the information minus the cost of producing it.
D) the extent to which it optimizes the value chain.
Correct Answer: C
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,4) An accounting information system (AIS) processes to provide users with
.
A) data; information
B) data; transactions
C) information; data
D) data; benefits Correct Answer: A
5) information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete Correct Answer: C
6) Information that is free from error or bias and accurately represents the events or
activities of the organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Correct Answer: B
7) Information that does not omit important aspects of the underlying events or activities that it
measures is
A) complete.
B) accessible.
C) relevant.
D) timely. Correct Answer: A
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, 8) Information is when two knowledgeable people independently produce the same information.
A) verifiable
B) relevant
C) reliable
D) complete Correct Answer: A
9) Data must be converted into information to be considered useful and meaningful for decision
making. There are six characteristics that make information both useful and meaningful. If
information is free from error or bias and accurately represents the events or activities of the
organization, it is representative of the characteristic of
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
Correct Answer: D
10) Inventory information is provided in real time by a firm's accounting information system. The
accuracy of this information is questionable, however, since the production manager often reports
stock outs of components that the system indicates are in stock. Which of the following
characteristics of useful information is absent in the situation described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible Correct Answer: B
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Accounting Information Systems, 16th Edition | Marshall B.
Romney - Comprehensive with Answers; Complete Exam
Questions & Solutions
1|Page
, Chapter 1 Accounting Information Systems: An Overview
1.1Distinguish data from information, discuss the characteristics of useful information, and explain
how to determine the value of information.
1) Which of the following statements below shows the contrast between data and information?
A) Data is the output of an AIS.
B) Information is the primary output of an AIS.
C) Data is more useful in decision making than information.
D) Data and information are the same.
Correct Answer: B
2) Information is best described as
A) raw facts about transactions.
B) data that has been organized and processed so that it is meaningful to the user.
C) facts that are useful when processed in a timely manner.
D) the same thing as data.
Correct Answer: B
3) The value of information can best be determined by
A) its usefulness to decision makers.
B) its relevance to decision makers.
C) the benefits associated with obtaining the information minus the cost of producing it.
D) the extent to which it optimizes the value chain.
Correct Answer: C
2|Page
,4) An accounting information system (AIS) processes to provide users with
.
A) data; information
B) data; transactions
C) information; data
D) data; benefits Correct Answer: A
5) information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete Correct Answer: C
6) Information that is free from error or bias and accurately represents the events or
activities of the organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Correct Answer: B
7) Information that does not omit important aspects of the underlying events or activities that it
measures is
A) complete.
B) accessible.
C) relevant.
D) timely. Correct Answer: A
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, 8) Information is when two knowledgeable people independently produce the same information.
A) verifiable
B) relevant
C) reliable
D) complete Correct Answer: A
9) Data must be converted into information to be considered useful and meaningful for decision
making. There are six characteristics that make information both useful and meaningful. If
information is free from error or bias and accurately represents the events or activities of the
organization, it is representative of the characteristic of
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
Correct Answer: D
10) Inventory information is provided in real time by a firm's accounting information system. The
accuracy of this information is questionable, however, since the production manager often reports
stock outs of components that the system indicates are in stock. Which of the following
characteristics of useful information is absent in the situation described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible Correct Answer: B
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