[TEST BANK] ACCOUNTING
pp pp
INFORMATION SYSTEMS, 15TH
pp pp pp
EDITION BY ROMNEY,
pp pp pp
STEINBART, SUMMERS, WOOD
pp pp pp
, Chapter 1 pp p p Accounting Information Systems: An Overview pp pp pp pp
1.1 Distinguish data from information, discuss the characteristics of useful information, and
pp pp pp pp pp pp pp pp pp pp
explain how to determine the value of information.
pp pp pp pp pp pp pp pp
1) Which of the following statements below shows the contrast between data
pp pp pp pp pp pp pp pp pp pp
and information?
pp pp
A) Data is the output of an AIS.
pp pp pp pp pp pp
B) Information is the primary output of an AIS. pp pp pp pp pp pp pp
C) Data is more useful in decision making than information.
pp pp pp pp pp pp pp pp
D) Data and information are the same.
pp pp pp pp pp
Answer: B p p
2) Information is best described as pp pp pp pp
A) raw facts about transactions.
pp pp pp
B) data that has been organized and processed so that it is meaningful to the user.
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
C) facts that are useful when processed in a timely manner.
pp pp pp pp pp pp pp pp pp
D) the same thing as data.
pp pp pp pp
Answer: B p p
3) The value of information can best be determined by
pp pp pp pp pp pp pp pp
A) its usefulness to decision makers.
pp pp pp pp
B) its relevance to decision makers.
pp pp pp pp
C) the benefits associated with obtaining the information minus the cost of producing it.
pp pp pp pp pp pp pp pp pp pp pp pp
D) the extent to which it optimizes the value chain.
pp pp pp pp pp pp pp pp
Answer: C p p
4) An accounting information system (AIS) processes
pp pp pp pp pp pp to provide users with
pp pp pp
.
A) data; information pp
B) data; transactions pp
C) information; data pp
D) data; benefits pp
pp Answer: A p p
5) information reduces uncertainty, improves decision makers' ability to make pp pp pp pp pp pp pp pp
predictions, or confirms expectations.
pp pp pp pp
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
pp Answer: C p p
6) Information that is free from error or bias and accurately represents the events or
pp pp pp pp pp pp pp pp pp pp pp pp pp
activities of the organization is
pp pp pp pp pp
A) relevant.
B) reliable / Faithful Representation.
pp pp pp
C) verifiable.
D) timely.
Answer: B p p
7) Information that does not omit important aspects of the underlying events or
pp pp pp pp pp pp pp pp pp pp pp
activities that it measures is
pp pp pp pp pp
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A p p
8) Information is pp pp when two knowledgeable people independently produce the
pp pp pp pp pp pp
same information.
pp pp
A) verifiable
B) relevant
C) reliable
D) complete
pp Answer: A p p
9) Data must be converted into information to be considered useful and meaningful for
pp pp pp pp pp pp pp pp pp pp pp pp
decision making. There are six characteristics that make information both useful and
pp pp pp pp pp pp pp pp pp pp pp pp
meaningful. If information is free from error or bias and accurately represents the events
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
or activities of the organization, it is representative of the characteristic of
pp pp pp pp pp pp pp pp pp pp pp pp
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer: D p p
10) Inventory information is provided in real time by a firm's accounting information
pp pp pp pp pp pp pp pp pp pp pp
system. The accuracy of this information is questionable, however, since the production
pp pp pp pp pp pp pp pp pp pp pp pp
manager often reports stock outs of components that the system indicates are in stock.
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
Which of the following characteristics of useful information is absent in the situation
pp pp pp pp pp pp pp pp pp pp pp pp pp
described above?
pp pp
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
pp Answer: B p p
11) Cheryl Metrejean has been the controller of Downtown Tires for 25 years. Ownership
pp pp pp pp pp pp pp pp pp pp pp pp
of the firm recently changed hands and the new owners are conducting an audit of the
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
financial records. The audit has been unable to reproduce financial reports that were
pp pp pp pp pp pp pp pp pp pp pp pp pp
prepared by Ms. Metrejean. While there is no evidence of wrongdoing, the auditors are
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
concerned that the discrepancies might contribute to poor decisions. Which of the
pp pp pp pp pp pp pp pp pp pp pp pp
following characteristics of useful information is absent in the situation described above?
pp pp pp pp pp pp pp pp pp pp pp pp
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
pp Answer: F p p
12) In 2003, Singh Manufacturing implemented a Web-based information system that
pp pp pp pp pp pp pp pp pp
allows all employees to access mission-critical information. The intention was to increase
pp pp pp pp pp pp pp pp pp pp pp pp
production efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind
pp pp pp pp pp pp pp pp pp pp pp pp
schedule and costs increased. Shaman Gupta, the director of information technology
pp pp pp pp pp pp pp pp pp pp pp
services, asked Ashlee Wells to come in and talk with him about the system. Ashlee is a
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
long-time employee of Singh, and her opinion is valued by her peers and by her
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
supervisor.
pp
"So Ashlee, how's it going down there in the shop?"
pp pp pp pp pp pp pp pp pp
"Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
production. Now, we got that computer system. Most of us can't figure out how to use it to
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
do our jobs. Is there some way to print out a pick list?"
pp pp pp pp pp pp pp pp pp pp pp pp pp
3
pp pp
INFORMATION SYSTEMS, 15TH
pp pp pp
EDITION BY ROMNEY,
pp pp pp
STEINBART, SUMMERS, WOOD
pp pp pp
, Chapter 1 pp p p Accounting Information Systems: An Overview pp pp pp pp
1.1 Distinguish data from information, discuss the characteristics of useful information, and
pp pp pp pp pp pp pp pp pp pp
explain how to determine the value of information.
pp pp pp pp pp pp pp pp
1) Which of the following statements below shows the contrast between data
pp pp pp pp pp pp pp pp pp pp
and information?
pp pp
A) Data is the output of an AIS.
pp pp pp pp pp pp
B) Information is the primary output of an AIS. pp pp pp pp pp pp pp
C) Data is more useful in decision making than information.
pp pp pp pp pp pp pp pp
D) Data and information are the same.
pp pp pp pp pp
Answer: B p p
2) Information is best described as pp pp pp pp
A) raw facts about transactions.
pp pp pp
B) data that has been organized and processed so that it is meaningful to the user.
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
C) facts that are useful when processed in a timely manner.
pp pp pp pp pp pp pp pp pp
D) the same thing as data.
pp pp pp pp
Answer: B p p
3) The value of information can best be determined by
pp pp pp pp pp pp pp pp
A) its usefulness to decision makers.
pp pp pp pp
B) its relevance to decision makers.
pp pp pp pp
C) the benefits associated with obtaining the information minus the cost of producing it.
pp pp pp pp pp pp pp pp pp pp pp pp
D) the extent to which it optimizes the value chain.
pp pp pp pp pp pp pp pp
Answer: C p p
4) An accounting information system (AIS) processes
pp pp pp pp pp pp to provide users with
pp pp pp
.
A) data; information pp
B) data; transactions pp
C) information; data pp
D) data; benefits pp
pp Answer: A p p
5) information reduces uncertainty, improves decision makers' ability to make pp pp pp pp pp pp pp pp
predictions, or confirms expectations.
pp pp pp pp
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
pp Answer: C p p
6) Information that is free from error or bias and accurately represents the events or
pp pp pp pp pp pp pp pp pp pp pp pp pp
activities of the organization is
pp pp pp pp pp
A) relevant.
B) reliable / Faithful Representation.
pp pp pp
C) verifiable.
D) timely.
Answer: B p p
7) Information that does not omit important aspects of the underlying events or
pp pp pp pp pp pp pp pp pp pp pp
activities that it measures is
pp pp pp pp pp
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A p p
8) Information is pp pp when two knowledgeable people independently produce the
pp pp pp pp pp pp
same information.
pp pp
A) verifiable
B) relevant
C) reliable
D) complete
pp Answer: A p p
9) Data must be converted into information to be considered useful and meaningful for
pp pp pp pp pp pp pp pp pp pp pp pp
decision making. There are six characteristics that make information both useful and
pp pp pp pp pp pp pp pp pp pp pp pp
meaningful. If information is free from error or bias and accurately represents the events
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
or activities of the organization, it is representative of the characteristic of
pp pp pp pp pp pp pp pp pp pp pp pp
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer: D p p
10) Inventory information is provided in real time by a firm's accounting information
pp pp pp pp pp pp pp pp pp pp pp
system. The accuracy of this information is questionable, however, since the production
pp pp pp pp pp pp pp pp pp pp pp pp
manager often reports stock outs of components that the system indicates are in stock.
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
Which of the following characteristics of useful information is absent in the situation
pp pp pp pp pp pp pp pp pp pp pp pp pp
described above?
pp pp
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
pp Answer: B p p
11) Cheryl Metrejean has been the controller of Downtown Tires for 25 years. Ownership
pp pp pp pp pp pp pp pp pp pp pp pp
of the firm recently changed hands and the new owners are conducting an audit of the
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
financial records. The audit has been unable to reproduce financial reports that were
pp pp pp pp pp pp pp pp pp pp pp pp pp
prepared by Ms. Metrejean. While there is no evidence of wrongdoing, the auditors are
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
concerned that the discrepancies might contribute to poor decisions. Which of the
pp pp pp pp pp pp pp pp pp pp pp pp
following characteristics of useful information is absent in the situation described above?
pp pp pp pp pp pp pp pp pp pp pp pp
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
pp Answer: F p p
12) In 2003, Singh Manufacturing implemented a Web-based information system that
pp pp pp pp pp pp pp pp pp
allows all employees to access mission-critical information. The intention was to increase
pp pp pp pp pp pp pp pp pp pp pp pp
production efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind
pp pp pp pp pp pp pp pp pp pp pp pp
schedule and costs increased. Shaman Gupta, the director of information technology
pp pp pp pp pp pp pp pp pp pp pp
services, asked Ashlee Wells to come in and talk with him about the system. Ashlee is a
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
long-time employee of Singh, and her opinion is valued by her peers and by her
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
supervisor.
pp
"So Ashlee, how's it going down there in the shop?"
pp pp pp pp pp pp pp pp pp
"Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
production. Now, we got that computer system. Most of us can't figure out how to use it to
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
do our jobs. Is there some way to print out a pick list?"
pp pp pp pp pp pp pp pp pp pp pp pp pp
3
