Accounting Information Systems, 15th Edition. Marshall B Romney Latest Test Bank.

[TEST BANK] ACCOUNTING
m




INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD

, Chapter 1 Accounting Information Systems: An Overview
m m m m m m




1.1 Distinguishmdatamfromminformation,mdiscussmthemcharacteristicsmofmusefulminformation,ma
ndmexplainmhowmtomdeterminemthemvaluemofminformation.

1) Whichmofmthemfollowingmstatementsmbelowmshowsmthemcontrastmbetweenmdatama
ndminformation?
A) DatamismthemoutputmofmanmAIS.
B) InformationmismthemprimarymoutputmofmanmAIS.
C) Datamismmoremusefulminmdecisionmmakingmthanminformation.
D) Datamandminformationmaremthemsame.

Answer:m B

2) Informationmismbestmdescribedmas
A) rawmfactsmaboutmtransactions.
B) datamthatmhasmbeenmorganizedmandmprocessedmsomthatmitmismmeaningfulmtomthemuser.
C) factsmthatmaremusefulmwhenmprocessedminmamtimelymmanner.
D) themsamemthingmasmdata.

Answer:m B

3) Themvaluemofminformationmcanmbestmbemdeterminedmby
A) itsmusefulnessmtomdecisionmmakers.
B) itsmrelevancemtomdecisionmmakers.
C) thembenefitsmassociatedmwithmobtainingmtheminformationmminusmthemcostmofmproducingmit.
D) themextentmtomwhichmitmoptimizesmthemvaluemchain.

Answer:m C

4) Anmaccountingminformationmsystemm(AIS)mprocessesm tomprovidemusersmwith
.
A) data;minformation
B) data;mtransactions
C) information;mdata
D) data;mbenefits

Answer:m A
m




5) informationmreducesmuncertainty,mimprovesmdecisionmmakers'mabilitymtomma
kempredictions,mormconfirmsmexpectations.
A) Timely


1

,B) Reliable
C) Relevant
D) Complete

Answer:m C
m




6) Informationmthatmismfreemfrommerrormormbiasmandmaccuratelymrepresentsmthemeventsmormactivi
tiesmofmthemorganizationmis
A) relevant.
B) reliablem/mFaithfulmRepresentation.
C) verifiable.
D) timely.

Answer:m B

7) Informationmthatmdoesmnotmomitmimportantmaspectsmofmthemunderlyingmeventsmormactivi
tiesmthatmitmmeasuresmis
A) complete.
B) accessible.
C) relevant.
D) timely.

Answer:m A

8) Informationmism
whenmtwomknowledgeablempeoplemindependentlymproducemthemsameminformation.
A) verifiable
B) relevant
C) reliable
D) complete

Answer:m A
m




9) Datammustmbemconvertedmintominformationmtombemconsideredmusefulmandmmeaningfulmfor
mdecisionmmaking.mTheremaremsixmcharacteristicsmthatmmakeminformationmbothmusefulmandmm

eaningful.mIfminformationmismfreemfrommerrormormbiasmandmaccuratelymrepresentsmthemeventsm
ormactivitiesmofmthemorganization,mitmismrepresentativemofmthemcharacteristicmof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.




2

, Answer:m D

10) Inventoryminformationmismprovidedminmrealmtimembymamfirm'smaccountingminformationmsyst
em.mThemaccuracymofmthisminformationmismquestionable,mhowever,msincemthemproductionmma
nagermoftenmreportsmstockmoutsmofmcomponentsmthatmthemsystemmindicatesmareminmstock.mWh
ichmofmthemfollowingmcharacteristicsmofmusefulminformationmismabsentminmthemsituationmdescri
bedmabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible

Answer:m B
m




11) CherylmMetrejeanmhasmbeenmthemcontrollermofmDowntownmTiresmform25myears.mOwnership
mofmthemfirmmrecentlymchangedmhandsmandmthemnewmownersmaremconductingmanmauditmofmthemf

inancialmrecords.mThemauditmhasmbeenmunablemtomreproducemfinancialmreportsmthatmweremprep
aredmbymMs.mMetrejean.mWhilemtheremismnomevidencemofmwrongdoing,mthemauditorsmaremconc
ernedmthatmthemdiscrepanciesmmightmcontributemtompoormdecisions.mWhichmofmthemfollowingmc
haracteristicsmofmusefulminformationmismabsentminmthemsituationmdescribedmabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible

Answer:m F
m




12) Inm2003,mSinghmManufacturingmimplementedmamWeb-
basedminformationmsystemmthatmallowsmallmemployeesmtomaccessmmission-
criticalminformation.mThemintentionmwasmtomincreasemproductionmefficiency.mUnfortunately,mitm
hadmthemoppositemeffect,masmdeliveriesmfellmbehindmschedulemandmcostsmincreased.mShamanmG
upta,mthemdirectormofminformationmtechnologymservices,maskedmAshleemWellsmtomcomeminmandmt
alkmwithmhimmaboutmthemsystem.mAshleemismamlong-
timememployeemofmSingh,mandmhermopinionmismvaluedmbymhermpeersmandmbymhermsupervisor.
"SomAshlee,mhow'smitmgoingmdownmthereminmthemshop?"
"Notmsomgood,mShaman.mUsedmtombemwemgotmamweeklympickmlistmsomwemknewmhowmtomplanmpro
duction.mNow,mwemgotmthatmcomputermsystem.mMostmofmusmcan'tmfiguremoutmhowmtomusemitmtomd
omourmjobs.mIsmtheremsomemwaymtomprintmoutmampickmlist?"
3