Created By: Test Bank
mi mi mi
s Test Bank for Accounting Information Systems, 1st E
mi mi mi mi mi mi mi
dition by Arline A. Savage Latest 2024
mi mi mi mi mi mi
Test Bank
mi Page 1
mi
,Created By: Test Bank
mi mi mi
s Test Bank for Accounting Information Systems, 1st E
mi mi mi mi mi mi mi
dition by Arline A. Savage Latest 2024
mi mi mi mi mi mi
Chapter 01: Accounting as Information
mi mi mi mi
1) Accounting communicates to stakeholders mi mi mi
A) minimally required public financial data.
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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:
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B Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
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ormation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloo
mi mi mi mi mi mi mi mi mi
m's: Comprehension AICPA: AC: Reporting
mi mi mi mi
2) Accounting communicates the financial outcomes of a business's activities for
mi mi mi mi mi mi mi mi mi
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. Answer:
mi mi mi mi mi mi mi mi
D Diff: 1
mi mi
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
mi mi mi mi mi mi mi mi mi mi mi mi mi mi
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloo
mi mi mi mi mi mi mi mi mi
m's: Comprehension AICPA: AC: Reporting
mi mi mi mi
3) In what way do management teams use accounting data?
mi mi mi mi mi mi mi mi
A) Management teams use accounting data to make business decisions.
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B) Management teams use accounting data to make and execute plans.
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C) Management teams use economic and accounting data together to make decisions.
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D) All of these answer choices are correct. Answer: D
mi mi mi mi mi mi mi mi
Test Bank mi Page 2 mi
,Created By: Test Bank
mi mi mi
s Test Bank for Accounting Information Systems, 1st E
mi mi mi mi mi mi mi
dition by Arline A. Savage Latest 2024
mi mi mi mi mi mi
Diff: 1 mi
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
mi mi mi mi mi mi mi mi mi mi mi mi mi mi
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
mi mi mi mi mi mi mi mi mi
m's: Comprehension
m i
AICPA: AC: Risk Assessment, Analysis, and Management
m i mi mi mi mi mi
4) Which statement is TRUE?
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A) Accounting consists of rigid black and white rules.
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B) Accountants crunch numbers, not make decisions.
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C) Accounting helps support a prosperous society.
mi mi mi mi mi
D) Accountants focus on debits and credits, not business activities. Answer:
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C Diff: 1
i mi mi
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
mi mi mi mi mi mi mi mi mi mi mi mi mi mi
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
mi mi mi mi mi mi mi mi mi
m's: Comprehension AICPA: N/A
mi mi mi
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: 1mi mi mi mi
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
mi mi mi mi mi mi mi mi mi mi mi mi mi mi
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
mi mi mi mi mi mi mi mi mi
m's: Knowledge
m i
AICPA: AC: Systems and Process Management
m i mi mi mi mi
Test Bank mi Page 3 mi
, Created By: Test Bank
mi mi mi
s Test Bank for Accounting Information Systems, 1st E
mi mi mi mi mi mi mi
dition by Arline A. Savage Latest 2024
mi mi mi mi mi mi
6) Input to an information system consists of
mi mi mi mi mi mi
A) raw and unorganized data.
mi mi mi
Test Bank
mi Page 4
mi
mi mi mi
s Test Bank for Accounting Information Systems, 1st E
mi mi mi mi mi mi mi
dition by Arline A. Savage Latest 2024
mi mi mi mi mi mi
Test Bank
mi Page 1
mi
,Created By: Test Bank
mi mi mi
s Test Bank for Accounting Information Systems, 1st E
mi mi mi mi mi mi mi
dition by Arline A. Savage Latest 2024
mi mi mi mi mi mi
Chapter 01: Accounting as Information
mi mi mi mi
1) Accounting communicates to stakeholders mi mi mi
A) minimally required public financial data.
mi mi mi mi
B) the financial outcomes of operating, investing, and financing activities.
mi mi mi mi mi mi mi mi
C) the sales strategy for the operating, marketing, and sales activities.
mi mi mi mi mi mi mi mi mi
D) black and white details about the economics of operating activities. Answer:
mi mi mi mi mi mi mi mi mi mi m
B Diff: 1
i mi mi
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
mi mi mi mi mi mi mi mi mi mi mi mi mi mi
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloo
mi mi mi mi mi mi mi mi mi
m's: Comprehension AICPA: AC: Reporting
mi mi mi mi
2) Accounting communicates the financial outcomes of a business's activities for
mi mi mi mi mi mi mi mi mi
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. Answer:
mi mi mi mi mi mi mi mi
D Diff: 1
mi mi
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
mi mi mi mi mi mi mi mi mi mi mi mi mi mi
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloo
mi mi mi mi mi mi mi mi mi
m's: Comprehension AICPA: AC: Reporting
mi mi mi mi
3) In what way do management teams use accounting data?
mi mi mi mi mi mi mi mi
A) Management teams use accounting data to make business decisions.
mi mi mi mi mi mi mi mi
B) Management teams use accounting data to make and execute plans.
mi mi mi mi mi mi mi mi mi
C) Management teams use economic and accounting data together to make decisions.
mi mi mi mi mi mi mi mi mi mi
D) All of these answer choices are correct. Answer: D
mi mi mi mi mi mi mi mi
Test Bank mi Page 2 mi
,Created By: Test Bank
mi mi mi
s Test Bank for Accounting Information Systems, 1st E
mi mi mi mi mi mi mi
dition by Arline A. Savage Latest 2024
mi mi mi mi mi mi
Diff: 1 mi
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
mi mi mi mi mi mi mi mi mi mi mi mi mi mi
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
mi mi mi mi mi mi mi mi mi
m's: Comprehension
m i
AICPA: AC: Risk Assessment, Analysis, and Management
m i mi mi mi mi mi
4) Which statement is TRUE?
mi mi mi
A) Accounting consists of rigid black and white rules.
mi mi mi mi mi mi mi
B) Accountants crunch numbers, not make decisions.
mi mi mi mi mi
C) Accounting helps support a prosperous society.
mi mi mi mi mi
D) Accountants focus on debits and credits, not business activities. Answer:
mi mi mi mi mi mi mi mi mi m
C Diff: 1
i mi mi
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
mi mi mi mi mi mi mi mi mi mi mi mi mi mi
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
mi mi mi mi mi mi mi mi mi
m's: Comprehension AICPA: N/A
mi mi mi
5) Which of the following is NOT a component of an information system?
mi mi mi mi mi mi mi mi mi mi mi
A) Hardware
B) Software
C) Input
D) Network Answer: C Diff: 1mi mi mi mi
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
mi mi mi mi mi mi mi mi mi mi mi mi mi mi
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
mi mi mi mi mi mi mi mi mi
m's: Knowledge
m i
AICPA: AC: Systems and Process Management
m i mi mi mi mi
Test Bank mi Page 3 mi
, Created By: Test Bank
mi mi mi
s Test Bank for Accounting Information Systems, 1st E
mi mi mi mi mi mi mi
dition by Arline A. Savage Latest 2024
mi mi mi mi mi mi
6) Input to an information system consists of
mi mi mi mi mi mi
A) raw and unorganized data.
mi mi mi
Test Bank
mi Page 4
mi
