Test Bank for Accounting Information Systems, 16th Edition by Marshall B Romney ISBN: 9780324026399

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[TESTBANK]ACCOUNTING
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INFORMATIONSYSTEMS,15TH
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EDITIONBYROMNEY,
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STEINBART,SUMMERS,WOOD
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Chapter1 AccountingInformationSystems:AnOverview ,j j , ,j ,j ,j ,j




1.1 Distinguishdatafrominformation,discussthecharacteristicsofusefulinformation,and j, j, j, j, j, j, j, j, j, j,




explain how to determine the value of information.
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1) Whichofthefollowingstatementsbelowshowsthecontrastbetweendataand ,j ,j ,j ,j ,j ,j ,j ,j ,j ,j ,j




information?
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A) DataistheoutputofanAIS. j, j, j, j, j, j,




B) InformationistheprimaryoutputofanAIS. j, j, j, j, j, j, j,




C) Dataismoreusefulindecisionmakingthan information.
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D) Dataandinformationarethesame. j, j, j, j, j,




Answer: B j ,




2) Informationisbestdescribedas ,j ,j ,j ,j




A) rawfactsabouttransactions. j, j, j,




B) datathathasbeenorganizedandprocessedsothatitismeaningfultotheuser.
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C) factsthatareusefulwhenprocessedinatimelymanner. j, j, j, j, j, j, j, j, j,




D) thesame thingas data. j, j, j, j,




Answer: B j ,




3) Thevalueofinformationcanbestbedeterminedby
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A) itsusefulnesstodecisionmakers.
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B) itsrelevancetodecisionmakers.
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C) thebenefitsassociatedwithobtainingtheinformationminusthecostofproducingit.
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D) theextenttowhichitoptimizesthevaluechain.
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Answer: C j ,




4) Anaccountinginformationsystem(AIS)processes
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.
A) data;information j,




B) data;transactions j,




C) information; data j,




D) data;benefits j,




Answer: A
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5) informationreducesuncertainty,improvesdecisionmakers'abilitytomake ,j ,j ,j ,j ,j ,j ,j ,j




predictions, or confirms expectations.
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A) Timely


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B) Reliable
C) Relevant
D) Complete

Answer: C
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6) Informationthatisfreefromerrororbiasandaccuratelyrepresentstheeventsoractivities of the
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organization is
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A) relevant.
B) reliable/FaithfulRepresentation. j, j, j,




C) verifiable.
D) timely.

Answer: B j ,




7) Informationthatdoesnotomitimportantaspectsoftheunderlyingeventsoractivities that it
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measures is
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A) complete.
B) accessible.
C) relevant.
D) timely.

Answer: A j ,




8) Information is j, j, whentwoknowledgeablepeopleindependentlyproducethe
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same information.
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A) verifiable
B) relevant
C) reliable
D) complete

Answer: A
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9) Data must be converted into information to be considered useful and meaningful for decision
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making. There are six characteristics that make information both useful and meaningful.
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Ifinformationisfreefromerrororbiasandaccuratelyrepresentstheeventsor activities of the
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organization, it is representative of the characteristic of
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A) relevancy.
B) timeliness.
C) understandability.
D) reliability.




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Answer: D j ,




10) Inventoryinformationisprovidedinrealtimebyafirm'saccountinginformationsystem. The ,j ,j ,j ,j ,j ,j ,j ,j ,j ,j ,j ,j j,




accuracy of this information is questionable, however, since the production manager often
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reports stock outs of components that the system indicates are in stock. Which of the following
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characteristics of useful information is absent in the situation described above?
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A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible

Answer: B
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11) Cheryl Metrejean has been the controller of Downtown Tires for 25 years. Ownership of the
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firmrecentlychangedhands andthenewownersareconducting anaudit ofthefinancial records.
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Theaudit hasbeen unableto reproduce financialreportsthat werepreparedbyMs. Metrejean.
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While there is no evidence of wrongdoing, the auditors are concerned that the discrepancies
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might contribute to poor decisions. Which of the following characteristics of useful information is
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absent in the situation described above?
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A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible

Answer: F
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12) In 2003, Singh Manufacturing implemented a Web-based information system that allows
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allemployeestoaccessmission-criticalinformation.Theintentionwastoincreaseproduction
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efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and
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costsincreased.ShamanGupta,thedirectorofinformationtechnologyservices,askedAshlee
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Wells to come in and talk with him about the system. Ashlee is a long-time employee of Singh, and
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her opinion is valued by her peers and by her supervisor.
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"So Ashlee, how's it goingdownthereintheshop?"
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"Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan
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production.Now,wegotthatcomputersystem.Mostofuscan'tfigureouthowtouseittodo our jobs.
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Is there some way to print out a pick list?"
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