Test Bank for Accounting Information Systems, 16th Edition by
Marshall B Romney -All Chapters (1-24) Latest Version 2027
,Accounting Information Systems, 16th Edition — Test Bank
Marshall B. Romney, Paul J. Steinbart, Scott L. Summers & David A.
Wood
Chapters 1–24
CHAPTER 1 — ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW
1. Which statement best distinguishes data from information?
A. Data is processed information
B. Information is processed and meaningful data
C. Data is always more useful than information
D. Information cannot be used for decisions
Answer: B
Rationale: Information is data that has been processed and organized
so that it is meaningful and useful for decision-making.
2. Which is a characteristic of useful information?
A. Irrelevance
B. Inaccuracy
C. Relevance
D. Excessive complexity
Answer: C
Rationale: Relevant information can affect decisions and is therefore
valuable to decision-makers.
3. Information is considered timely when it is:
,A. Available when needed
B. Always historical
C. Produced years later
D. Available only to management
Answer: A
Rationale: Timeliness means information is available to users when it
can influence decisions.
4. The value of information generally equals:
A. Benefits minus costs
B. Costs minus benefits
C. Revenue plus expenses
D. Assets minus liabilities
Answer: A
Rationale: Information has value when the benefits obtained from it
exceed the costs of producing and obtaining it.
5. An AIS primarily:
A. Eliminates accounting
B. Collects, records, stores, processes, and reports information
C. Replaces all employees
D. Only prepares tax returns
Answer: B
Rationale: An accounting information system performs information-
processing activities that support accounting and organizational
decisions.
6. Which is an example of an internal user of AIS information?
A. Customer
B. Supplier
, C. Production manager
D. Tax authority
Answer: C
Rationale: Production managers are internal users who rely on
accounting and operational information.
7. Which is an external user?
A. Sales manager
B. Production supervisor
C. Investor
D. Controller
Answer: C
Rationale: Investors are outside the organization and use financial
information to make investment decisions.
8. Goal congruence exists when:
A. Individual goals conflict with organizational goals
B. Subsystem goals support overall organizational goals
C. Employees ignore organizational objectives
D. Departments compete unnecessarily
Answer: B
Rationale: Goal congruence occurs when individual and subsystem
objectives are consistent with organizational objectives.
9. A business process is:
A. A random activity
B. A set of related activities used to accomplish a goal
C. Only a financial statement
D. Only a computer program
Marshall B Romney -All Chapters (1-24) Latest Version 2027
,Accounting Information Systems, 16th Edition — Test Bank
Marshall B. Romney, Paul J. Steinbart, Scott L. Summers & David A.
Wood
Chapters 1–24
CHAPTER 1 — ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW
1. Which statement best distinguishes data from information?
A. Data is processed information
B. Information is processed and meaningful data
C. Data is always more useful than information
D. Information cannot be used for decisions
Answer: B
Rationale: Information is data that has been processed and organized
so that it is meaningful and useful for decision-making.
2. Which is a characteristic of useful information?
A. Irrelevance
B. Inaccuracy
C. Relevance
D. Excessive complexity
Answer: C
Rationale: Relevant information can affect decisions and is therefore
valuable to decision-makers.
3. Information is considered timely when it is:
,A. Available when needed
B. Always historical
C. Produced years later
D. Available only to management
Answer: A
Rationale: Timeliness means information is available to users when it
can influence decisions.
4. The value of information generally equals:
A. Benefits minus costs
B. Costs minus benefits
C. Revenue plus expenses
D. Assets minus liabilities
Answer: A
Rationale: Information has value when the benefits obtained from it
exceed the costs of producing and obtaining it.
5. An AIS primarily:
A. Eliminates accounting
B. Collects, records, stores, processes, and reports information
C. Replaces all employees
D. Only prepares tax returns
Answer: B
Rationale: An accounting information system performs information-
processing activities that support accounting and organizational
decisions.
6. Which is an example of an internal user of AIS information?
A. Customer
B. Supplier
, C. Production manager
D. Tax authority
Answer: C
Rationale: Production managers are internal users who rely on
accounting and operational information.
7. Which is an external user?
A. Sales manager
B. Production supervisor
C. Investor
D. Controller
Answer: C
Rationale: Investors are outside the organization and use financial
information to make investment decisions.
8. Goal congruence exists when:
A. Individual goals conflict with organizational goals
B. Subsystem goals support overall organizational goals
C. Employees ignore organizational objectives
D. Departments compete unnecessarily
Answer: B
Rationale: Goal congruence occurs when individual and subsystem
objectives are consistent with organizational objectives.
9. A business process is:
A. A random activity
B. A set of related activities used to accomplish a goal
C. Only a financial statement
D. Only a computer program
