Created By: A Solution
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TEST BANK FOR ACCOUNTING INFORMATION SYSTEM 1ST
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FV EDITION BY ARLINE SAVAGE A+ FV FV FV FV
Chapter 01: Accounting as Information FV FV FV FV
1) Accounting communicates to stakeholders FV FV FV
A) minimally required public financial data. FV FV FV FV
B) the financial outcomes of operating, investing, and financing activities.
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C) the sales strategy for the operating, marketing, and sales activities.
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D) black and white details about the economics of operating activities. Answer: B
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Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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FV information.
Section Reference: Why is Accounting Information Important? AACSB: Communication
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Bloom's: Comprehension AICPA: AC: Reporting
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2) Accounting communicates the financial outcomes of a business's activities for
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A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. Answer: D
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Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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FV information.
Section Reference: Why is Accounting Information Important? AACSB: Communication
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Bloom's: Comprehension AICPA: AC: Reporting
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3) In what way do management teams use accounting data?
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A) Management teams use accounting data to make business decisions. FV FV FV FV FV FV FV FV
B) Management teams use accounting data to make and execute plans. FV FV FV FV FV FV FV FV FV
C) Management teams use economic and accounting data together to make decisions. FV FV FV FV FV FV FV FV FV FV
D) All of these answer choices are correct. Answer: D
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A+ Page 1
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,Created By: A Solution
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Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Comprehension FV FV
AICPA: AC: Risk Assessment, Analysis, and Management
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4) Which statement is TRUE? FV FV FV
A) Accounting consists of rigid black and white rules. FV FV FV FV FV FV FV
B) Accountants crunch numbers, not make decisions. FV FV FV FV FV
C) Accounting helps support a prosperous society. FV FV FV FV FV
D) Accountants focus on debits and credits, not business activities. Answer: C FV FV FV FV FV FV FV FV FV FV
Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Comprehension AICPA: N/A
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5) Which of the following is NOT a component of an information system?
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A) Hardware
B) Software
C) Input
D) Network Answer: C Diff: 1 FV FV FV FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Knowledge FV FV
AICPA: AC: Systems and Process Management
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6) Input to an information system consists of
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A) raw and unorganized data. FV FV FV
B) hardware and software. FV FV
A+ Page 2
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,Created By: A Solution
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C) reported information. FV
D) processed data. FV
Answer: A FV FV
Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Knowledge FV FV
AICPA: AC: Systems and Process Management
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7) Which of the following is a definition of output from an information system?
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A) Output is raw and unorganized data. FV FV FV FV FV
B) Output is information produced by processing data. FV FV FV FV FV FV
C) Output is database facts and figures. FV FV FV FV FV
D) Output is information collected from users. Answer: B
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Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Comprehension FV FV
AICPA: AC: Systems and Process Management
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8) Which statement concerning data is TRUE? FV FV FV FV FV
A) Data is useless to a business until transformed into information.
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B) Data is the output from an information system.
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C) Data is organized into understandable formats.
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D) Data is processed before being input into the information system. Answer: A
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Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Comprehension FV FV
A+ Page 3
FV
, Created By: A Solution
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AICPA: AC: Systems and Process Management
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9) Which of the following activities would NOT result in a transaction in an accounting
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FV information system? FV
A) Sell goods to a customer on account
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B) Purchase supplies on credit FV FV FV
C) Prepay for six months of insurance FV FV FV FV FV
D) Receive a customer order Answer: D FV FV FV FV FV
Diff: 2 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Application FV FV
AICPA: AC: Systems and Process Management
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10) Which of the following activities results in a transaction an accounting information system?
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A) Sell goods to a customer FV FV FV FV
B) Submit an order to a vendor FV FV FV FV FV
C) Create estimates for a customer FV FV FV FV
D) Receive a customer order Answer: A FV FV FV FV FV
Diff: 2 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Application FV FV
AICPA: AC: Systems and Process Management
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11) A business model is FV FV FV
A) a company's plan for operations.
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B) a company's plan for making a profit.
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C) a company's plan for identifying customers.
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D) a company's plan for production. Answer: B
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A+ Page 4
FV
FV FV FV FV
TEST BANK FOR ACCOUNTING INFORMATION SYSTEM 1ST
FV FV FV FV FV FV
FV EDITION BY ARLINE SAVAGE A+ FV FV FV FV
Chapter 01: Accounting as Information FV FV FV FV
1) Accounting communicates to stakeholders FV FV FV
A) minimally required public financial data. FV FV FV FV
B) the financial outcomes of operating, investing, and financing activities.
FV FV FV FV FV FV FV FV
C) the sales strategy for the operating, marketing, and sales activities.
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D) black and white details about the economics of operating activities. Answer: B
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Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Communication
FV FV FV FV FV FV FV FV
Bloom's: Comprehension AICPA: AC: Reporting
FV FV FV FV
2) Accounting communicates the financial outcomes of a business's activities for
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A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. Answer: D
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Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Communication
FV FV FV FV FV FV FV FV
Bloom's: Comprehension AICPA: AC: Reporting
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3) In what way do management teams use accounting data?
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A) Management teams use accounting data to make business decisions. FV FV FV FV FV FV FV FV
B) Management teams use accounting data to make and execute plans. FV FV FV FV FV FV FV FV FV
C) Management teams use economic and accounting data together to make decisions. FV FV FV FV FV FV FV FV FV FV
D) All of these answer choices are correct. Answer: D
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A+ Page 1
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,Created By: A Solution
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Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Comprehension FV FV
AICPA: AC: Risk Assessment, Analysis, and Management
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4) Which statement is TRUE? FV FV FV
A) Accounting consists of rigid black and white rules. FV FV FV FV FV FV FV
B) Accountants crunch numbers, not make decisions. FV FV FV FV FV
C) Accounting helps support a prosperous society. FV FV FV FV FV
D) Accountants focus on debits and credits, not business activities. Answer: C FV FV FV FV FV FV FV FV FV FV
Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
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Bloom's: Comprehension AICPA: N/A
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5) Which of the following is NOT a component of an information system?
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A) Hardware
B) Software
C) Input
D) Network Answer: C Diff: 1 FV FV FV FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
FV FV FV FV FV FV FV FV
Bloom's: Knowledge FV FV
AICPA: AC: Systems and Process Management
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6) Input to an information system consists of
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A) raw and unorganized data. FV FV FV
B) hardware and software. FV FV
A+ Page 2
FV
,Created By: A Solution
FV FV FV FV
C) reported information. FV
D) processed data. FV
Answer: A FV FV
Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
FV FV FV FV FV FV FV FV
Bloom's: Knowledge FV FV
AICPA: AC: Systems and Process Management
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7) Which of the following is a definition of output from an information system?
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A) Output is raw and unorganized data. FV FV FV FV FV
B) Output is information produced by processing data. FV FV FV FV FV FV
C) Output is database facts and figures. FV FV FV FV FV
D) Output is information collected from users. Answer: B
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FV
Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
FV FV FV FV FV FV FV FV
Bloom's: Comprehension FV FV
AICPA: AC: Systems and Process Management
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8) Which statement concerning data is TRUE? FV FV FV FV FV
A) Data is useless to a business until transformed into information.
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B) Data is the output from an information system.
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C) Data is organized into understandable formats.
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D) Data is processed before being input into the information system. Answer: A
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Diff: 1 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
FV FV FV FV FV FV FV FV
Bloom's: Comprehension FV FV
A+ Page 3
FV
, Created By: A Solution
FV FV FV FV
AICPA: AC: Systems and Process Management
FV FV FV FV FV FV
9) Which of the following activities would NOT result in a transaction in an accounting
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information system? FV
A) Sell goods to a customer on account
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B) Purchase supplies on credit FV FV FV
C) Prepay for six months of insurance FV FV FV FV FV
D) Receive a customer order Answer: D FV FV FV FV FV
Diff: 2 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
FV FV FV FV FV FV FV FV
Bloom's: Application FV FV
AICPA: AC: Systems and Process Management
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FV
10) Which of the following activities results in a transaction an accounting information system?
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A) Sell goods to a customer FV FV FV FV
B) Submit an order to a vendor FV FV FV FV FV
C) Create estimates for a customer FV FV FV FV
D) Receive a customer order Answer: A FV FV FV FV FV
Diff: 2 FV
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
FV FV FV FV FV FV FV FV FV FV FV FV FV
FV information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
FV FV FV FV FV FV FV FV
Bloom's: Application FV FV
AICPA: AC: Systems and Process Management
FV FV FV FV FV FV
11) A business model is FV FV FV
A) a company's plan for operations.
FV FV FV FV
B) a company's plan for making a profit.
FV FV FV FV FV FV
C) a company's plan for identifying customers.
FV FV FV FV FV
D) a company's plan for production. Answer: B
FV FV FV FV FV FV
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