1
,Accounting Information Systems, 16e (Romney) 9i 9i 9i 9i
Chapter 1 Conceptual Foundations of Accounting Information Systems
9i 9i 9i 9i 9i 9i
1 Distinguish data from information, discuss the characteristics of useful information, and expl
9 i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
ain how to determine the value of information.
9i 9i 9i 9i 9i 9i 9i
1) Which of the following statements below shows the contrast between data and information?
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
A) Data is the primary output of an accounting information system.
9i 9i 9i 9i 9i 9i 9i 9i 9i
B) Information is the primary output of an accounting information system.
9i 9i 9i 9i 9i 9i 9i 9i 9i
C) Data is more useful in decision making than information.
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D) Data and information are the same.
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Answer: B 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
2) When a subsystem's goals are inconsistent with the goals of another subsystem or with the
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
system as a whole, it creates
9i 9i 9i 9i 9i
A) system inconsistence. 9i
B) system conflict. 9i
C) goal inconsistence.9i
D) goal conflict. 9i
Answer: D 9 i 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
3) When a subsystem achieves its goals while contributing to the organization's overall goal, it is
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
called
A) system match. 9i
B) system congruence. 9i
C) goal congruence. 9i
D) goal match. 9i
Answer: C
9i 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
2
,4) Information is best described as 9i 9i 9i 9i
A) raw facts about transactions.
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B) data that has been organized and processed so that it is meaningful to the user.
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
C) facts that are useful when processed in a timely manner.
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D) the same thing as data.
9i 9i 9i 9i
Answer: B 9 i 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
5) The value of information can best be determined by
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A) its usefulness to decision makers.
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B) its relevance to decision makers.
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C) the benefits associated with obtaining the information minus the cost of producing it.
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
D) the extent to which it optimizes the value chain.
9i 9i 9i 9i 9i 9i 9i 9i 9i
Answer: C 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iModerate
AACSB: Analytical Thinking 9i
6) An accounting information system (AIS) processes
9i 9i 9i 9i 9i 9i to provide users with
9i 9i 9i 9i .
A) data; information 9i
B) data; transactions9i
C) information; data 9i
D) data; benefits 9i
Answer: A
9i 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
7) information reduces uncertainty, improves decision makers' ability to make 9i 9i 9i 9i 9i 9i 9i 9i 9i
predictions, or confirms expectations. 9i 9i 9i
A) Timely
B) Accurate
C) Relevant
D) Complete
Answer:
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C
Concept: Information needs and business processes Ob
9 i 9i 9i 9i 9i 9i
jective: Learning Objective 1
9 i 9i 9i
Difficulty: Easy 9 i 9 i
AACSB: Analytical Thinking 9i
3
, 8) Information that is free from error or bias and faithfully represents the events or activities of
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9
the organization is
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A) relevant.
B) accurate.
C) verifiable.
D) timely. 9i
Answer: 9 i
B
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
9) Information that does not omit important aspects of the underlying events or activities that it
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
measures is 9i
A) complete.
B) available.
C) relevant.
D) timely. 9i
Answer: 9 i
A
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
10) Information is 9i 9i
when two knowledgeable people independently produce the same information.
9i 9i 9i 9i 9i 9i 9i 9i
A) verifiable
B) relevant
C) accurate
D) complete
Answer:
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A
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
4
,Accounting Information Systems, 16e (Romney) 9i 9i 9i 9i
Chapter 1 Conceptual Foundations of Accounting Information Systems
9i 9i 9i 9i 9i 9i
1 Distinguish data from information, discuss the characteristics of useful information, and expl
9 i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
ain how to determine the value of information.
9i 9i 9i 9i 9i 9i 9i
1) Which of the following statements below shows the contrast between data and information?
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
A) Data is the primary output of an accounting information system.
9i 9i 9i 9i 9i 9i 9i 9i 9i
B) Information is the primary output of an accounting information system.
9i 9i 9i 9i 9i 9i 9i 9i 9i
C) Data is more useful in decision making than information.
9i 9i 9i 9i 9i 9i 9i 9i
D) Data and information are the same.
9i 9i 9i 9i 9i 9i
Answer: B 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
2) When a subsystem's goals are inconsistent with the goals of another subsystem or with the
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
system as a whole, it creates
9i 9i 9i 9i 9i
A) system inconsistence. 9i
B) system conflict. 9i
C) goal inconsistence.9i
D) goal conflict. 9i
Answer: D 9 i 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
3) When a subsystem achieves its goals while contributing to the organization's overall goal, it is
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
called
A) system match. 9i
B) system congruence. 9i
C) goal congruence. 9i
D) goal match. 9i
Answer: C
9i 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
2
,4) Information is best described as 9i 9i 9i 9i
A) raw facts about transactions.
9i 9i 9i
B) data that has been organized and processed so that it is meaningful to the user.
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
C) facts that are useful when processed in a timely manner.
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D) the same thing as data.
9i 9i 9i 9i
Answer: B 9 i 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
5) The value of information can best be determined by
9i 9i 9i 9i 9i 9i 9i 9i
A) its usefulness to decision makers.
9i 9i 9i 9i
B) its relevance to decision makers.
9i 9i 9i 9i
C) the benefits associated with obtaining the information minus the cost of producing it.
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
D) the extent to which it optimizes the value chain.
9i 9i 9i 9i 9i 9i 9i 9i 9i
Answer: C 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iModerate
AACSB: Analytical Thinking 9i
6) An accounting information system (AIS) processes
9i 9i 9i 9i 9i 9i to provide users with
9i 9i 9i 9i .
A) data; information 9i
B) data; transactions9i
C) information; data 9i
D) data; benefits 9i
Answer: A
9i 9 i
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
7) information reduces uncertainty, improves decision makers' ability to make 9i 9i 9i 9i 9i 9i 9i 9i 9i
predictions, or confirms expectations. 9i 9i 9i
A) Timely
B) Accurate
C) Relevant
D) Complete
Answer:
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C
Concept: Information needs and business processes Ob
9 i 9i 9i 9i 9i 9i
jective: Learning Objective 1
9 i 9i 9i
Difficulty: Easy 9 i 9 i
AACSB: Analytical Thinking 9i
3
, 8) Information that is free from error or bias and faithfully represents the events or activities of
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9
the organization is
i 9i 9i
A) relevant.
B) accurate.
C) verifiable.
D) timely. 9i
Answer: 9 i
B
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
9) Information that does not omit important aspects of the underlying events or activities that it
9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i 9i
measures is 9i
A) complete.
B) available.
C) relevant.
D) timely. 9i
Answer: 9 i
A
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
10) Information is 9i 9i
when two knowledgeable people independently produce the same information.
9i 9i 9i 9i 9i 9i 9i 9i
A) verifiable
B) relevant
C) accurate
D) complete
Answer:
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A
Concept: The concept of information Obj
9 i 9i 9i 9i 9i
ective: Learning Objective 1 Difficulty:
9 i 9i 9i 9i 9
iEasy
AACSB: Analytical Thinking 9i
4
