[TEST BANK] ACCOUNTING
#ft #ft
INFORMATION SYSTEMS, 15TH
#ft #ft #ft
EDITION BY ROMNEY,
#ft #ft #ft
STEINBART, SUMMERS, WOOD
#ft #ft #ft
SCHOLARVAULT
, 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
1
SCHOLARVAULT
,B) Reliable
C) Relevant
D) Complete
Answer:
#ft
# ft C
6) Information #ftthat #ftis #ftfree #ftfrom #fterror #ftor #ftbias #ftand #ftaccurately #ftrepresents #ftthe #ftevents #ftor
#ftactivities #ftof #ftthe #ftorganization #ftis
A) relevant.
B) reliable #ft/ #ftFaithful #ftRepresentation.
C) verifiable.
D) timely.
Answer: # f t B
7) Information #ftthat #ftdoes #ftnot #ftomit #ftimportant #ftaspects #ftof #ftthe #ftunderlying #ftevents #ftor
#ftactivities #ftthat #ftit #ftmeasures #ftis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: # f t A
8) Information #ftis #ft when #fttwo #ftknowledgeable #ftpeople #ftindependently #ftproduce
#ftthe #ftsame #ftinformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:
#ft
# ft A
9) Data #ftmust #ftbe #ftconverted #ftinto #ftinformation #ftto #ftbe #ftconsidered #ftuseful #ftand
#ftmeaningful #ftfor #ftdecision #ftmaking. #ftThere #ftare #ftsix #ftcharacteristics #ftthat #ftmake
#ftinformation #ftboth #ftuseful #ftand #ftmeaningful. #ftIf #ftinformation #ftis #ftfree #ftfrom #fterror #ftor #ftbias
#ftand #ftaccurately #ftrepresents #ftthe #ftevents #ftor #ftactivities #ftof #ftthe #ftorganization, #ftit #ftis
#ftrepresentative #ftof #ftthe #ftcharacteristic #ftof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
SCHOLARVAULT
, Answer: # f t D
10) Inventory #ftinformation #ftis #ftprovided #ftin #ftreal #fttime #ftby #fta #ftfirm's #ftaccounting #ftinformation
#ftsystem. #ftThe #ftaccuracy #ftof #ftthis #ftinformation #ftis #ftquestionable, #fthowever, #ftsince #ftthe
#ftproduction #ftmanager #ftoften #ftreports #ftstock #ftouts #ftof #ftcomponents #ftthat #ftthe #ftsystem
#ftindicates #ftare #ftin #ftstock. #ftWhich #ftof #ftthe #ftfollowing #ftcharacteristics #ftof #ftuseful #ftinformation
#ftis #ftabsent #ftin #ftthe #ftsituation #ftdescribed #ftabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:
#ft
# ft B
11) Cheryl #ftMetrejean #fthas #ftbeen #ftthe #ftcontroller #ftof #ftDowntown #ftTires #ftfor #ft25 #ftyears.
#ftOwnership #ftof #ftthe #ftfirm #ftrecently #ftchanged #fthands #ftand #ftthe #ftnew #ftowners #ftare #ftconducting
#ftan #ftaudit #ftof #ftthe #ftfinancial #ftrecords. #ftThe #ftaudit #fthas #ftbeen #ftunable #ftto #ftreproduce #ftfinancial
#ftreports #ftthat #ftwere #ftprepared #ftby #ftMs. #ftMetrejean. #ftWhile #ftthere #ftis #ftno #ftevidence #ftof
#ftwrongdoing, #ftthe #ftauditors #ftare #ftconcerned #ftthat #ftthe #ftdiscrepancies #ftmight #ftcontribute #ftto
#ftpoor #ftdecisions. #ftWhich #ftof #ftthe #ftfollowing #ftcharacteristics #ftof #ftuseful #ftinformation #ftis
#ftabsent #ftin #ftthe #ftsituation #ftdescribed #ftabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:
#ft
# ft F
12) In #ft2003, #ftSingh #ftManufacturing #ftimplemented #fta #ftWeb-based #ftinformation #ftsystem #ftthat
#ftallows #ftall #ftemployees #ftto #ftaccess #ftmission-critical #ftinformation. #ftThe #ftintention #ftwas #ftto
#ftincrease #ftproduction #ftefficiency. #ftUnfortunately, #ftit #fthad #ftthe #ftopposite #fteffect, #ftas
#ftdeliveries #ftfell #ftbehind #ftschedule #ftand #ftcosts #ftincreased. #ftShaman #ftGupta, #ftthe #ftdirector #ftof
#ftinformation #fttechnology #ftservices, #ftasked #ftAshlee #ftWells #ftto #ftcome #ftin #ftand #fttalk #ftwith #fthim
#ftabout #ftthe #ftsystem. #ftAshlee #ftis #fta #ftlong-time #ftemployee #ftof #ftSingh, #ftand #fther #ftopinion #ftis
#ftvalued #ftby #fther #ftpeers #ftand #ftby #fther #ftsupervisor.
"So #ftAshlee, #fthow's #ftit #ftgoing #ftdown #ftthere #ftin #ftthe #ftshop?"
"Not #ftso #ftgood, #ftShaman. #ftUsed #ftto #ftbe #ftwe #ftgot #fta #ftweekly #ftpick #ftlist #ftso #ftwe #ftknew #fthow #ftto
#ftplan #ftproduction. #ftNow, #ftwe #ftgot #ftthat #ftcomputer #ftsystem. #ftMost #ftof #ftus #ftcan't #ftfigure #ftout #fthow
#ftto #ftuse #ftit #ftto #ftdo #ftour #ftjobs. #ftIs #ftthere #ftsome #ftway #ftto #ftprint #ftout #fta #ftpick #ftlist?"
SCHOLARVAULT
#ft #ft
INFORMATION SYSTEMS, 15TH
#ft #ft #ft
EDITION BY ROMNEY,
#ft #ft #ft
STEINBART, SUMMERS, WOOD
#ft #ft #ft
SCHOLARVAULT
, 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
1
SCHOLARVAULT
,B) Reliable
C) Relevant
D) Complete
Answer:
#ft
# ft C
6) Information #ftthat #ftis #ftfree #ftfrom #fterror #ftor #ftbias #ftand #ftaccurately #ftrepresents #ftthe #ftevents #ftor
#ftactivities #ftof #ftthe #ftorganization #ftis
A) relevant.
B) reliable #ft/ #ftFaithful #ftRepresentation.
C) verifiable.
D) timely.
Answer: # f t B
7) Information #ftthat #ftdoes #ftnot #ftomit #ftimportant #ftaspects #ftof #ftthe #ftunderlying #ftevents #ftor
#ftactivities #ftthat #ftit #ftmeasures #ftis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: # f t A
8) Information #ftis #ft when #fttwo #ftknowledgeable #ftpeople #ftindependently #ftproduce
#ftthe #ftsame #ftinformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:
#ft
# ft A
9) Data #ftmust #ftbe #ftconverted #ftinto #ftinformation #ftto #ftbe #ftconsidered #ftuseful #ftand
#ftmeaningful #ftfor #ftdecision #ftmaking. #ftThere #ftare #ftsix #ftcharacteristics #ftthat #ftmake
#ftinformation #ftboth #ftuseful #ftand #ftmeaningful. #ftIf #ftinformation #ftis #ftfree #ftfrom #fterror #ftor #ftbias
#ftand #ftaccurately #ftrepresents #ftthe #ftevents #ftor #ftactivities #ftof #ftthe #ftorganization, #ftit #ftis
#ftrepresentative #ftof #ftthe #ftcharacteristic #ftof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
SCHOLARVAULT
, Answer: # f t D
10) Inventory #ftinformation #ftis #ftprovided #ftin #ftreal #fttime #ftby #fta #ftfirm's #ftaccounting #ftinformation
#ftsystem. #ftThe #ftaccuracy #ftof #ftthis #ftinformation #ftis #ftquestionable, #fthowever, #ftsince #ftthe
#ftproduction #ftmanager #ftoften #ftreports #ftstock #ftouts #ftof #ftcomponents #ftthat #ftthe #ftsystem
#ftindicates #ftare #ftin #ftstock. #ftWhich #ftof #ftthe #ftfollowing #ftcharacteristics #ftof #ftuseful #ftinformation
#ftis #ftabsent #ftin #ftthe #ftsituation #ftdescribed #ftabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:
#ft
# ft B
11) Cheryl #ftMetrejean #fthas #ftbeen #ftthe #ftcontroller #ftof #ftDowntown #ftTires #ftfor #ft25 #ftyears.
#ftOwnership #ftof #ftthe #ftfirm #ftrecently #ftchanged #fthands #ftand #ftthe #ftnew #ftowners #ftare #ftconducting
#ftan #ftaudit #ftof #ftthe #ftfinancial #ftrecords. #ftThe #ftaudit #fthas #ftbeen #ftunable #ftto #ftreproduce #ftfinancial
#ftreports #ftthat #ftwere #ftprepared #ftby #ftMs. #ftMetrejean. #ftWhile #ftthere #ftis #ftno #ftevidence #ftof
#ftwrongdoing, #ftthe #ftauditors #ftare #ftconcerned #ftthat #ftthe #ftdiscrepancies #ftmight #ftcontribute #ftto
#ftpoor #ftdecisions. #ftWhich #ftof #ftthe #ftfollowing #ftcharacteristics #ftof #ftuseful #ftinformation #ftis
#ftabsent #ftin #ftthe #ftsituation #ftdescribed #ftabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:
#ft
# ft F
12) In #ft2003, #ftSingh #ftManufacturing #ftimplemented #fta #ftWeb-based #ftinformation #ftsystem #ftthat
#ftallows #ftall #ftemployees #ftto #ftaccess #ftmission-critical #ftinformation. #ftThe #ftintention #ftwas #ftto
#ftincrease #ftproduction #ftefficiency. #ftUnfortunately, #ftit #fthad #ftthe #ftopposite #fteffect, #ftas
#ftdeliveries #ftfell #ftbehind #ftschedule #ftand #ftcosts #ftincreased. #ftShaman #ftGupta, #ftthe #ftdirector #ftof
#ftinformation #fttechnology #ftservices, #ftasked #ftAshlee #ftWells #ftto #ftcome #ftin #ftand #fttalk #ftwith #fthim
#ftabout #ftthe #ftsystem. #ftAshlee #ftis #fta #ftlong-time #ftemployee #ftof #ftSingh, #ftand #fther #ftopinion #ftis
#ftvalued #ftby #fther #ftpeers #ftand #ftby #fther #ftsupervisor.
"So #ftAshlee, #fthow's #ftit #ftgoing #ftdown #ftthere #ftin #ftthe #ftshop?"
"Not #ftso #ftgood, #ftShaman. #ftUsed #ftto #ftbe #ftwe #ftgot #fta #ftweekly #ftpick #ftlist #ftso #ftwe #ftknew #fthow #ftto
#ftplan #ftproduction. #ftNow, #ftwe #ftgot #ftthat #ftcomputer #ftsystem. #ftMost #ftof #ftus #ftcan't #ftfigure #ftout #fthow
#ftto #ftuse #ftit #ftto #ftdo #ftour #ftjobs. #ftIs #ftthere #ftsome #ftway #ftto #ftprint #ftout #fta #ftpick #ftlist?"
SCHOLARVAULT
