1
,Chapter01: Accounting as Information
1) Accountingqcommunicatesqtoqstakeholders
A) minimallyrequiredq publicqfinancialqdata.
B) thefinancialoutcomesofoperating,investing,q and financinga ctivities.
oa
C) thesalesstrategyfortheoperating, marketing,q q andsalesactivities.
oa
D) blackandwhitedetailsabouttheeconomicsofoperatingq a
oa
ctivities.Answer:qB
Diff:1
LearningObjective:q 1.1Explainh owaccountingaffectsboththedemand forandqsupply q ofi
o o rl
nformation.
SectionReference:WhyisAccountingInformation qImportant?AACSB:qCommunicati
on
Bloom's:
ComprehensionAICPA: rl
AC:Reporting
2) Accountingcommunicates thefinancial outcomes ofabusiness's activities for
oa
A) operating.
B) investing.
C) financing.
D) Alloftheseanswerchoicesareqc
oa
orrect.Answer:qD
Diff:1
LearningObjective:q 1.1Explainhowaccountingaffectsboththedemandforand qsupply q ofi
o rl
nformation.
SectionReference:WhyisAccountingInformation qImportant?AACSB:qCommunicati
on
Bloom's:
ComprehensionAICPA: rl
AC:Reporting
3) Inqwhatqwaydoqmanagementqteamsuseaccountingdata?
A) Managementteamsquseaccountingdatatomakebusinessdecisions.
B) Managementteams use accountingd ata tomake andexecute plans.
oa
C) Management t eamsq q useeconomicandaccountingdatatogethertomakedecisions.
o o
D) Alloftheseanswerchoicesareqc
oa
orrect.Answer:qD
Diff:1
LearningObjective:q 1.1Explainh owaccountingaffectsboththedemand forandqsupply q ofi
o o rl
nformation.
SectionReference:qWhyisAccountingInformationqImportant?AACSB:qAn
alytic
Bloom's: Comprehension
AICPA: AC:RiskAssessment,Analysis,andManagement
2
,4) Whichstatementis TRUE? o
A) Accountingconsists of rigidblack a nd whiteq rules. o
B) Accountants crunch numbers,not make decisions. o
C) Accountinghelps supportq a prosperousq society.
oa oa
D) Accountantsfocusondebitsandcredits,notbusinessqa
oa o
ctivities.Answer:qC
Diff:1
LearningObjective:q 1.1Explainhowaccountingaffectsboththe demand forandqsupply q ofi
o o rl
nformation.
SectionReference:WhyisAccounting Information q Important?AACSB: q Anal oa
ytic
Bloom's:
ComprehensionAICPA: rl
N/A
5) Whichofthe followingisqNOT acomponent ofq aninformation system?
oa o o
A) Hardware
B) Software
C) Input
D) Network
qAnswer:qCq
Diff:q1
LearningObjective:q 1.1Explainh owaccountingaffectsboththedemand forandqsupply q ofi
o o rl
nformation.
SectionReference:WhyisAccounting Information q Important?AACSB: q Anal oa
ytic
Bloom's: Knowledge
AICPA: AC:Systems and Process Management o
6) Inputto aninformationsystemconsists of
o
A) rawandunorganizeddata.
B) hardwareandsoftware.
C) reportedqinformation.
D) processeddata.
qAnswer:
AqDiff:q1
LearningObjective:q 1.1Explainh owaccountingaffectsboththedemand forandqsupply q ofi
o o rl
nformation.
SectionReference:WhyisAccountingInformation qImportant?AACSB:qA
nalytic
Bloom's: Knowledge
AICPA: AC:SystemsandProcessManagement
7) Whichofthe followingis a definitionofoutput fromq aninformationsystem?
oa
A) Outputis raw q and unorganized data.
oa o
B) Outputisinformationproducedq byprocessing data. oa
C) Output isdatabase f acts qandfigures.
o o
D) Outputis informationqcollectedfrom
o
3
, users.Answer:q B
4
,Chapter01: Accounting as Information
1) Accountingqcommunicatesqtoqstakeholders
A) minimallyrequiredq publicqfinancialqdata.
B) thefinancialoutcomesofoperating,investing,q and financinga ctivities.
oa
C) thesalesstrategyfortheoperating, marketing,q q andsalesactivities.
oa
D) blackandwhitedetailsabouttheeconomicsofoperatingq a
oa
ctivities.Answer:qB
Diff:1
LearningObjective:q 1.1Explainh owaccountingaffectsboththedemand forandqsupply q ofi
o o rl
nformation.
SectionReference:WhyisAccountingInformation qImportant?AACSB:qCommunicati
on
Bloom's:
ComprehensionAICPA: rl
AC:Reporting
2) Accountingcommunicates thefinancial outcomes ofabusiness's activities for
oa
A) operating.
B) investing.
C) financing.
D) Alloftheseanswerchoicesareqc
oa
orrect.Answer:qD
Diff:1
LearningObjective:q 1.1Explainhowaccountingaffectsboththedemandforand qsupply q ofi
o rl
nformation.
SectionReference:WhyisAccountingInformation qImportant?AACSB:qCommunicati
on
Bloom's:
ComprehensionAICPA: rl
AC:Reporting
3) Inqwhatqwaydoqmanagementqteamsuseaccountingdata?
A) Managementteamsquseaccountingdatatomakebusinessdecisions.
B) Managementteams use accountingd ata tomake andexecute plans.
oa
C) Management t eamsq q useeconomicandaccountingdatatogethertomakedecisions.
o o
D) Alloftheseanswerchoicesareqc
oa
orrect.Answer:qD
Diff:1
LearningObjective:q 1.1Explainh owaccountingaffectsboththedemand forandqsupply q ofi
o o rl
nformation.
SectionReference:qWhyisAccountingInformationqImportant?AACSB:qAn
alytic
Bloom's: Comprehension
AICPA: AC:RiskAssessment,Analysis,andManagement
2
,4) Whichstatementis TRUE? o
A) Accountingconsists of rigidblack a nd whiteq rules. o
B) Accountants crunch numbers,not make decisions. o
C) Accountinghelps supportq a prosperousq society.
oa oa
D) Accountantsfocusondebitsandcredits,notbusinessqa
oa o
ctivities.Answer:qC
Diff:1
LearningObjective:q 1.1Explainhowaccountingaffectsboththe demand forandqsupply q ofi
o o rl
nformation.
SectionReference:WhyisAccounting Information q Important?AACSB: q Anal oa
ytic
Bloom's:
ComprehensionAICPA: rl
N/A
5) Whichofthe followingisqNOT acomponent ofq aninformation system?
oa o o
A) Hardware
B) Software
C) Input
D) Network
qAnswer:qCq
Diff:q1
LearningObjective:q 1.1Explainh owaccountingaffectsboththedemand forandqsupply q ofi
o o rl
nformation.
SectionReference:WhyisAccounting Information q Important?AACSB: q Anal oa
ytic
Bloom's: Knowledge
AICPA: AC:Systems and Process Management o
6) Inputto aninformationsystemconsists of
o
A) rawandunorganizeddata.
B) hardwareandsoftware.
C) reportedqinformation.
D) processeddata.
qAnswer:
AqDiff:q1
LearningObjective:q 1.1Explainh owaccountingaffectsboththedemand forandqsupply q ofi
o o rl
nformation.
SectionReference:WhyisAccountingInformation qImportant?AACSB:qA
nalytic
Bloom's: Knowledge
AICPA: AC:SystemsandProcessManagement
7) Whichofthe followingis a definitionofoutput fromq aninformationsystem?
oa
A) Outputis raw q and unorganized data.
oa o
B) Outputisinformationproducedq byprocessing data. oa
C) Output isdatabase f acts qandfigures.
o o
D) Outputis informationqcollectedfrom
o
3
, users.Answer:q B
4
