[TEST BANK] ACCOUNTING
g g
INFORMATION SYSTEMS, 15TH g g g
EDITION BY ROMNEY, STEINBAR
g g g
T, SUMMERS, WOOD
g g
, Chapter 1 Accounting Information Systems: An Overview
g g g g g g
1.1 Distinguishgdatagfromginformation,gdiscussgthegcharacteristicsgofgusefulginformation,gandg
explainghowgtogdeterminegthegvaluegofginformation.
1) Whichgofgthegfollowinggstatementsgbelowgshowsgthegcontrastgbetweengdatagandgi
nformation?
A) DatagisgthegoutputgofgangAIS.
B) InformationgisgthegprimarygoutputgofgangAIS.
C) Datagisgmoregusefulgingdecisiongmakinggthanginformation.
D) Datagandginformationgaregthegsame.
Answer:g B
2) Informationgisgbestgdescribedgas
A) rawgfactsgaboutgtransactions.
B) datagthatghasgbeengorganizedgandgprocessedgsogthatgitgisgmeaningfulgtogtheguser.
C) factsgthatgaregusefulgwhengprocessedgingagtimelygmanner.
D) thegsamegthinggasgdata.
Answer:g B
3) Thegvaluegofginformationgcangbestgbegdeterminedgby
A) itsgusefulnessgtogdecisiongmakers.
B) itsgrelevancegtogdecisiongmakers.
C) thegbenefitsgassociatedgwithgobtaininggtheginformationgminusgthegcostgofgproducinggit.
D) thegextentgtogwhichgitgoptimizesgthegvaluegchain.
Answer:g C
4) Angaccountingginformationgsystemg(AIS)gprocesses togprovidegusersgwith
g .
A) data;ginformation
B) data;gtransactions
C) information;gdata
D) data;gbenefitsg
Answer:g A
5) g
informationgreducesguncertainty,gimprovesgdecisiongmakers'gabilitygtogmakegprediction
s,gorgconfirmsgexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Completeg
Answer:g C
6) Informationgthatgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactivitiesgo
fgthegorganizationgis
A) relevant.
B) reliableg/gFaithfulgRepresentation.
C) verifiable.
D) timely.
Answer:g B
7) Informationgthatgdoesgnotgomitgimportantgaspectsgofgthegunderlyinggeventsgorgactivitiesgt
hatgitgmeasuresgis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:g A
8) Informationgis
whengtwogknowledgeablegpeoplegindependentlygproducegthegsameginformation.
A) verifiable
B) relevant
C) reliable
D) completeg
Answer:g A
9) Datagmustgbegconvertedgintoginformationgtogbegconsideredgusefulgandgmeaningfulgforgdeci
siongmaking.gTheregaregsixgcharacteristicsgthatgmakeginformationgbothgusefulgandgmeaningfu
l.gIfginformationgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactivitiesgofg
thegorganization,gitgisgrepresentativegofgthegcharacteristicgof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:g D
10) Inventoryginformationgisgprovidedgingrealgtimegbygagfirm'sgaccountingginformationgsystem.g
Thegaccuracygofgthisginformationgisgquestionable,ghowever,gsincegthegproductiongmanagergoft
engreportsgstockgoutsgofgcomponentsgthatgthegsystemgindicatesgaregingstock.gWhichgofgthegfoll
owinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessibleg
Answer:g B
11) CherylgMetrejeanghasgbeengthegcontrollergofgDowntowngTiresgforg25gyears.gOwnershipgofgt
hegfirmgrecentlygchangedghandsgandgthegnewgownersgaregconductinggangauditgofgthegfinancialgre
cords.gThegauditghasgbeengunablegtogreproducegfinancialgreportsgthatgweregpreparedgbygMs.gM
etrejean.gWhilegtheregisgnogevidencegofgwrongdoing,gthegauditorsgaregconcernedgthatgthegdiscr
epanciesgmightgcontributegtogpoorgdecisions.gWhichgofgthegfollowinggcharacteristicsgofgusefulgi
nformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessibleg
Answer:g F
12) Ing2003,gSinghgManufacturinggimplementedgagWeb-
basedginformationgsystemgthatgallowsgallgemployeesgtogaccessgmission-
criticalginformation.gThegintentiongwasgtogincreasegproductiongefficiency.gUnfortunately,gitghadg
thegoppositegeffect,gasgdeliveriesgfellgbehindgschedulegandgcostsgincreased.gShamangGupta,gtheg
directorgofginformationgtechnologygservices,gaskedgAshleegWellsgtogcomegingandgtalkgwithghimga
boutgthegsystem.gAshleegisgaglong-
timegemployeegofgSingh,gandghergopiniongisgvaluedgbyghergpeersgandgbyghergsupervisor.
"SogAshlee,ghow'sgitggoinggdowngtheregingthegshop?"
"Notgsoggood,gShaman.gUsedgtogbegweggotgagweeklygpickglistgsogwegknewghowgtogplangproduction.
gNow,gweggotgthatgcomputergsystem.gMostgofgusgcan'tgfiguregoutghowgtogusegitgtogdogourgjobs.gIsgth
eregsomegwaygtogprintgoutgagpickglist?"
3
g g
INFORMATION SYSTEMS, 15TH g g g
EDITION BY ROMNEY, STEINBAR
g g g
T, SUMMERS, WOOD
g g
, Chapter 1 Accounting Information Systems: An Overview
g g g g g g
1.1 Distinguishgdatagfromginformation,gdiscussgthegcharacteristicsgofgusefulginformation,gandg
explainghowgtogdeterminegthegvaluegofginformation.
1) Whichgofgthegfollowinggstatementsgbelowgshowsgthegcontrastgbetweengdatagandgi
nformation?
A) DatagisgthegoutputgofgangAIS.
B) InformationgisgthegprimarygoutputgofgangAIS.
C) Datagisgmoregusefulgingdecisiongmakinggthanginformation.
D) Datagandginformationgaregthegsame.
Answer:g B
2) Informationgisgbestgdescribedgas
A) rawgfactsgaboutgtransactions.
B) datagthatghasgbeengorganizedgandgprocessedgsogthatgitgisgmeaningfulgtogtheguser.
C) factsgthatgaregusefulgwhengprocessedgingagtimelygmanner.
D) thegsamegthinggasgdata.
Answer:g B
3) Thegvaluegofginformationgcangbestgbegdeterminedgby
A) itsgusefulnessgtogdecisiongmakers.
B) itsgrelevancegtogdecisiongmakers.
C) thegbenefitsgassociatedgwithgobtaininggtheginformationgminusgthegcostgofgproducinggit.
D) thegextentgtogwhichgitgoptimizesgthegvaluegchain.
Answer:g C
4) Angaccountingginformationgsystemg(AIS)gprocesses togprovidegusersgwith
g .
A) data;ginformation
B) data;gtransactions
C) information;gdata
D) data;gbenefitsg
Answer:g A
5) g
informationgreducesguncertainty,gimprovesgdecisiongmakers'gabilitygtogmakegprediction
s,gorgconfirmsgexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Completeg
Answer:g C
6) Informationgthatgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactivitiesgo
fgthegorganizationgis
A) relevant.
B) reliableg/gFaithfulgRepresentation.
C) verifiable.
D) timely.
Answer:g B
7) Informationgthatgdoesgnotgomitgimportantgaspectsgofgthegunderlyinggeventsgorgactivitiesgt
hatgitgmeasuresgis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:g A
8) Informationgis
whengtwogknowledgeablegpeoplegindependentlygproducegthegsameginformation.
A) verifiable
B) relevant
C) reliable
D) completeg
Answer:g A
9) Datagmustgbegconvertedgintoginformationgtogbegconsideredgusefulgandgmeaningfulgforgdeci
siongmaking.gTheregaregsixgcharacteristicsgthatgmakeginformationgbothgusefulgandgmeaningfu
l.gIfginformationgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactivitiesgofg
thegorganization,gitgisgrepresentativegofgthegcharacteristicgof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:g D
10) Inventoryginformationgisgprovidedgingrealgtimegbygagfirm'sgaccountingginformationgsystem.g
Thegaccuracygofgthisginformationgisgquestionable,ghowever,gsincegthegproductiongmanagergoft
engreportsgstockgoutsgofgcomponentsgthatgthegsystemgindicatesgaregingstock.gWhichgofgthegfoll
owinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessibleg
Answer:g B
11) CherylgMetrejeanghasgbeengthegcontrollergofgDowntowngTiresgforg25gyears.gOwnershipgofgt
hegfirmgrecentlygchangedghandsgandgthegnewgownersgaregconductinggangauditgofgthegfinancialgre
cords.gThegauditghasgbeengunablegtogreproducegfinancialgreportsgthatgweregpreparedgbygMs.gM
etrejean.gWhilegtheregisgnogevidencegofgwrongdoing,gthegauditorsgaregconcernedgthatgthegdiscr
epanciesgmightgcontributegtogpoorgdecisions.gWhichgofgthegfollowinggcharacteristicsgofgusefulgi
nformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessibleg
Answer:g F
12) Ing2003,gSinghgManufacturinggimplementedgagWeb-
basedginformationgsystemgthatgallowsgallgemployeesgtogaccessgmission-
criticalginformation.gThegintentiongwasgtogincreasegproductiongefficiency.gUnfortunately,gitghadg
thegoppositegeffect,gasgdeliveriesgfellgbehindgschedulegandgcostsgincreased.gShamangGupta,gtheg
directorgofginformationgtechnologygservices,gaskedgAshleegWellsgtogcomegingandgtalkgwithghimga
boutgthegsystem.gAshleegisgaglong-
timegemployeegofgSingh,gandghergopiniongisgvaluedgbyghergpeersgandgbyghergsupervisor.
"SogAshlee,ghow'sgitggoinggdowngtheregingthegshop?"
"Notgsoggood,gShaman.gUsedgtogbegweggotgagweeklygpickglistgsogwegknewghowgtogplangproduction.
gNow,gweggotgthatgcomputergsystem.gMostgofgusgcan'tgfiguregoutghowgtogusegitgtogdogourgjobs.gIsgth
eregsomegwaygtogprintgoutgagpickglist?"
3
