[TEST BANK] ACCOUNTING
INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD
Chapter 1 Accounting Information Systems: An Overview
1.1 Distinguish data from information, discuss the characteristics of useful information, and
explain how to determine the value of information.
1) Which of the following statements below shows the contrast between data and
information?
A) Data is the output of an AIS.
B) Information is the primary output of an AIS.
C) Data is more useful in decision making than information.
D) Data and information are the same.
Answer: B
2) Information is best described as A)
raw facts about transactions.
B) data that has been organized and processed so that it is meaningful to the user.
,C) facts that are useful when processed in a timely manner.
D) the same thing as data.
Answer: B
3) The value of information can best be determined by
A) its usefulness to decision makers.
B) its relevance to decision makers.
C) the benefits associated with obtaining the information minus the cost of producing it.
D) the extent to which it optimizes the value chain.
Answer: C
4) An accounting information system (AIS) processes ________ to provide users with
________.
A) data; information
B) data; transactions
C) information; data
D) data; benefits
Answer: A
5) ________ information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete
Answer: C
6) Information that is free from error or bias and accurately represents the events or
activities of the organization is A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Answer: B
1
,7) Information that does not omit important aspects of the underlying events or activities
that it measures is A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A
8) Information is ________ when two knowledgeable people independently produce the
same information.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
9) Data must be converted into information to be considered useful and meaningful for
decision making. There are six characteristics that make information both useful and
meaningful. If information is free from error or bias and accurately represents the events or
activities of the organization, it is representative of the characteristic of A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
Answer: D
10) zInventory zinformation zis zprovided zin zreal ztime zby za zfirm's zaccounting zinformation
zsystem. zThe zaccuracy zof zthis zinformation zis zquestionable, zhowever, zsince zthe
zproduction zmanager zoften zreports zstock zouts zof zcomponents zthat zthe zsystem zindicates
zare zin zstock. zWhich zof zthe zfollowing zcharacteristics zof zuseful zinformation zis zabsent zin
zthe zsituation zdescribed zabove? zA) zrelevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: z zB
2
, 11) zCheryl zMetrejean zhas zbeen zthe zcontroller zof zDowntown zTires zfor z25 zyears.
zOwnership zof zthe zfirm zrecently zchanged zhands zand zthe znew zowners zare zconducting zan
zaudit zof zthe zfinancial zrecords. zThe zaudit zhas zbeen zunable zto zreproduce zfinancial zreports
zthat zwere zprepared zby zMs. zMetrejean. zWhile zthere zis zno zevidence zof zwrongdoing, zthe
zauditors zare zconcerned zthat zthe zdiscrepancies zmight zcontribute zto zpoor zdecisions.
zWhich zof zthe zfollowing zcharacteristics zof zuseful zinformation zis zabsent zin zthe zsituation
zdescribed zabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: z zF
12) zIn z2003, zSingh zManufacturing zimplemented za zWeb-based zinformation zsystem zthat
zallows zall zemployees zto zaccess zmission-critical zinformation. zThe zintention zwas zto
zincrease zproduction zefficiency. zUnfortunately, zit zhad zthe zopposite zeffect, zas zdeliveries
zfell zbehind zschedule zand zcosts zincreased. zShaman zGupta, zthe zdirector zof zinformation
ztechnology zservices, zasked zAshlee zWells zto zcome zin zand ztalk zwith zhim zabout zthe
zsystem. zAshlee zis za zlong-time zemployee zof zSingh, zand zher zopinion zis zvalued zby zher
zpeers zand zby zher zsupervisor. z
"So zAshlee, zhow's zit zgoing zdown zthere zin zthe zshop?" z
"Not zso zgood, zShaman. zUsed zto zbe zwe zgot za zweekly zpick zlist zso zwe zknew zhow zto zplan
zproduction. zNow, zwe zgot zthat zcomputer zsystem. zMost zof zus zcan't zfigure zout zhow zto
zuse zit zto zdo zour zjobs. zIs zthere zsome zway zto zprint zout za zpick zlist?" z
Shaman zthought zfor za zwhile zbefore zresponding. z"Well, zAshlee, zto ztell zyou zthe ztruth, zI'm
znot zso zsure zhow zto zdo zit zmyself, zbut zthere zmust zbe za zway. zWe'll zbring zin zthe
zconsultants zthat zhelped zus zbuild zthe zsystem. zMaybe zthey zcan zhelp." z
Which zof zthe zfollowing zcharacteristics zof zuseful zinformation zis zabsent zin zthe zsituation
zdescribed zabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
3
INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD
Chapter 1 Accounting Information Systems: An Overview
1.1 Distinguish data from information, discuss the characteristics of useful information, and
explain how to determine the value of information.
1) Which of the following statements below shows the contrast between data and
information?
A) Data is the output of an AIS.
B) Information is the primary output of an AIS.
C) Data is more useful in decision making than information.
D) Data and information are the same.
Answer: B
2) Information is best described as A)
raw facts about transactions.
B) data that has been organized and processed so that it is meaningful to the user.
,C) facts that are useful when processed in a timely manner.
D) the same thing as data.
Answer: B
3) The value of information can best be determined by
A) its usefulness to decision makers.
B) its relevance to decision makers.
C) the benefits associated with obtaining the information minus the cost of producing it.
D) the extent to which it optimizes the value chain.
Answer: C
4) An accounting information system (AIS) processes ________ to provide users with
________.
A) data; information
B) data; transactions
C) information; data
D) data; benefits
Answer: A
5) ________ information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete
Answer: C
6) Information that is free from error or bias and accurately represents the events or
activities of the organization is A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Answer: B
1
,7) Information that does not omit important aspects of the underlying events or activities
that it measures is A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A
8) Information is ________ when two knowledgeable people independently produce the
same information.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
9) Data must be converted into information to be considered useful and meaningful for
decision making. There are six characteristics that make information both useful and
meaningful. If information is free from error or bias and accurately represents the events or
activities of the organization, it is representative of the characteristic of A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
Answer: D
10) zInventory zinformation zis zprovided zin zreal ztime zby za zfirm's zaccounting zinformation
zsystem. zThe zaccuracy zof zthis zinformation zis zquestionable, zhowever, zsince zthe
zproduction zmanager zoften zreports zstock zouts zof zcomponents zthat zthe zsystem zindicates
zare zin zstock. zWhich zof zthe zfollowing zcharacteristics zof zuseful zinformation zis zabsent zin
zthe zsituation zdescribed zabove? zA) zrelevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: z zB
2
, 11) zCheryl zMetrejean zhas zbeen zthe zcontroller zof zDowntown zTires zfor z25 zyears.
zOwnership zof zthe zfirm zrecently zchanged zhands zand zthe znew zowners zare zconducting zan
zaudit zof zthe zfinancial zrecords. zThe zaudit zhas zbeen zunable zto zreproduce zfinancial zreports
zthat zwere zprepared zby zMs. zMetrejean. zWhile zthere zis zno zevidence zof zwrongdoing, zthe
zauditors zare zconcerned zthat zthe zdiscrepancies zmight zcontribute zto zpoor zdecisions.
zWhich zof zthe zfollowing zcharacteristics zof zuseful zinformation zis zabsent zin zthe zsituation
zdescribed zabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: z zF
12) zIn z2003, zSingh zManufacturing zimplemented za zWeb-based zinformation zsystem zthat
zallows zall zemployees zto zaccess zmission-critical zinformation. zThe zintention zwas zto
zincrease zproduction zefficiency. zUnfortunately, zit zhad zthe zopposite zeffect, zas zdeliveries
zfell zbehind zschedule zand zcosts zincreased. zShaman zGupta, zthe zdirector zof zinformation
ztechnology zservices, zasked zAshlee zWells zto zcome zin zand ztalk zwith zhim zabout zthe
zsystem. zAshlee zis za zlong-time zemployee zof zSingh, zand zher zopinion zis zvalued zby zher
zpeers zand zby zher zsupervisor. z
"So zAshlee, zhow's zit zgoing zdown zthere zin zthe zshop?" z
"Not zso zgood, zShaman. zUsed zto zbe zwe zgot za zweekly zpick zlist zso zwe zknew zhow zto zplan
zproduction. zNow, zwe zgot zthat zcomputer zsystem. zMost zof zus zcan't zfigure zout zhow zto
zuse zit zto zdo zour zjobs. zIs zthere zsome zway zto zprint zout za zpick zlist?" z
Shaman zthought zfor za zwhile zbefore zresponding. z"Well, zAshlee, zto ztell zyou zthe ztruth, zI'm
znot zso zsure zhow zto zdo zit zmyself, zbut zthere zmust zbe za zway. zWe'll zbring zin zthe
zconsultants zthat zhelped zus zbuild zthe zsystem. zMaybe zthey zcan zhelp." z
Which zof zthe zfollowing zcharacteristics zof zuseful zinformation zis zabsent zin zthe zsituation
zdescribed zabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
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